/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/011115.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, November 15, 2001, Vol. 2, No. 224 Headlines * B E L G I U M * SABENA SA: DAT Can Operate on Its Own SABENA SA: Finds New Airline Investor * C Z E C H R E P U B L I C * TEXTILANA: Posts Kc91MM Loss for Third Quarter * F R A N C E * MOULINEX SA: Extends Bid Deadline to December MOULINEX SA: Faces Euronext De-Listing * G E R M A N Y * BROKAT AG: Faces Insolvency Threat DAIMLERCHRYSLER: Chrysler Union Favors Strike * H U N G A R Y * MALEV AIRLINES: Suspends Regional Flights MOL RT: Gaz de France Bids for MOL Stake MOL RT: Ruhrgas Bids for MOL Unit * I R E L A N D * EIRCOM PLC: Attempts to Lure Nolan From Lattice EIRCOM PLC: Will Cancel Listing in December * I T A L Y * ALITALIA SPA: Announces Alliance With Air France ALITALIA SPA: Faces Share Suspension ALITALIA SPA: Reveals 149.2-MM-Euro Loss Over Nine Months FILA HOLDING: Posts $31.8MM Third-Quarter Loss * N E T H E R L A N D S * KPN NV: Considers More Asset Disposals to Cut Debt VERSATEL TELECOM: Appoints Mark Lazar as New CFO * N O R W A Y * KVAERNER ASA: Secures U.S. Contracts STEPSTONE ASA: Withdraws London Listing * S W I T Z E R L A N D * SULZER MEDICA: Wants to Share the Burden With Parent * U N I T E D K I N G D O M * EQUITABLE LIFE: Policyholders Await Lawsuit Decision MARCONI PLC: Reveals 5.1BB-Pound Loss RAILTRACK GROUP: Byers Changes Story RAILTRACK GROUP: Investors Pleas to Bank of England TELECITY PLC: Shares Rise as Market Becomes Stable ZETEK POWER: Negotiating to Avert Collapse ============= B E L G I U M ============= SABENA SA: DAT Can Operate on Its Own ------------------------------------- Sabena chief executive Christoph Muller insisted that the bankrupt airline's regional subsidiary DAT would be a viable stand-alone company in the medium term, although it would need more funding if it was to expand to long-haul routes, reports the Financial Times. "We have money, we have the market and we have a good cost position," Muller said. Although DAT's current costs are financed out of a 125 million euro government loan, the administrators could decide that sending aircraft across Europe with few passengers on board is not a good use of creditors' money. Muller further admitted he had estimated that DAT would need more cash to fly to Sabena's African and North American destinations. SABENA SA: Finds New Airline Investor ------------------------------------- Pharmaceutical company UCB SA, together with other Belgian companies, will invest in the new Brussels-based successor company to Sabena Belgian World Airlines SA, subject to certain conditions. According to the AFX News' Tuesday report, the investment is designed to establish a carrier based in Brussels at the current time when the aviation market is most depressed. UCB SA chief executive George Jacobs declined to indicate the size of the investment and the names of other investors. Jacobs added the company would invest as long as the new airline is viable. =========================== C Z E C H R E P U B L I C =========================== TEXTILANA: Posts Kc91MM Loss for Third Quarter ---------------------------------------------- Bankrupt textile company Textilana Liberec reported a loss of 91.058 million Czech koruna on sales of 466.985 million Czech koruna in the third quarter of this year, the Tuesday edition of Czech News Agency & World Reporter said, citing board chairman Stanislav Nosek. Textilana, one of the five largest Czech producers of woolen fabrics, was declared bankrupt by the Regional Court in Usti nad Labem early this month after it failed to meet its obligations to creditors. Liabilities to banks, clients and the state amounted to 568.951 million Czech koruna at the end of September, while accumulated loss accounted for 573.17 million Czech koruna. The company's principal shareholder is PYRR, with a 49.91% stake, while the Prague-based firm Eggenberg owns 33.39%. Textilana employs 920 people. =========== F R A N C E =========== MOULINEX SA: Extends Bid Deadline to December --------------------------------------------- Candidates bidding to take over Brandt, the subsidiary of bankrupt French kitchen appliance-maker Moulinex SA, were granted a delay of one month to finalize their offers. According to the Tuesday edition of Les Echos/FT Information, the commercial court of Nanterre now expects final bids to be submitted between December 15 and 20, the date beyond which the company's banks will cease to finance its operations. The deadline was originally set on November 9. Senior managers have already gathered for a preliminary examination of the bids presented to the court last week. MOULINEX SA: Faces Euronext De-Listing -------------------------------------- The plan to sell off assets of bankrupt French home appliance manufacturer Moulinex to French counterpart SEB has lead to the suspension of the company's share in Euronext Paris, the Tuesday edition of La Tribune /FT Information said. Meanwhile, around 4,000 people at Caen and 1,000 at Alencon in France, according to trade unions, including a large number of Moulinex employees demonstrated on November 10 to defend their jobs. ============= G E R M A N Y ============= BROKAT AG: Faces Insolvency Threat ---------------------------------- Troubled software company Brokat Technologies AG is in excessive debt and has just three weeks to reach a debt waiver agreement with high-interest corporate bond creditors, including Deutsche Bank and WestLB, to avert impending insolvency. According to the Tuesday edition of Frankfurter Allgemeine Zeitung/FT Information, the company's recovery is on shaky ground after the planned sale of the mobile division to US-based eOne Global failed. Shareholders voted against the sale on the recommendation of the supervisory board, as it was impossible to separate the sale from the bond negotiations for legal reasons during talks with eOne Global. Earlier, Brokat recorded turnover of 5.7 million euros and operating losses of 39.9 million euros in the third quarter of 2001. The company recognized that it does not have sufficient funds to pay down its debt. As of September 30, it had available cash of 25.3 million euro. DAIMLERCHRYSLER: Chrysler Union Favors Strike --------------------------------------------- DaimlerChrysler AG's Chrysler workers in Ohio voted Tuesday to authorize a strike that would stop output of the new Jeep Liberty, Chrysler's second-best selling sport-utility vehicle. According to Bloomberg's Tuesday edition, the United Auto Workers union is concerned that increased overtime could pose safety risks at the plant. Company spokesman Mike Aberlich, however, said that Liberty plant is among the safest at the third-largest automaker in the U.S. If authorized, a strike could occur between Thanksgiving and mid- January. Chrysler wants to regain a 14% U.S. market share as part of its three-year turnaround plan, after falling to 13.4% in the first nine months. ============= H U N G A R Y ============= MALEV AIRLINES: Suspends Regional Flights ----------------------------------------- Cash-strapped Malev Hungarian Airlines Rt decided to suspend its regional flights this month, reports the Budapest Business Journal. The flights affected were Budapest-Munich-Budapest flight on November 1, its Budapest-Sarajevo-Budapest flight starting November 3 and its Budapest-Madrid-Budapest flight from November 13. Meanwhile, Malev is offering a huge discount on sales for certain European and Middle Eastern cities until November 18. Destinations include Frankfurt, Amsterdam, London, Paris, Istanbul and Tel Aviv, with trips to be completed by January 2002. The Hungarian airline registered an after-tax loss of 9.35 billion forints on net sales revenue of 108 billion forints last year. It is struggling to fulfill its restructuring plan that includes job cuts totaling 600 in 2001 and 400 in 2002. MOL RT: Gaz de France Bids for MOL Stake ---------------------------------------- Gaz de France development director in Hungary Francois Henimann has submitted a bid for the 49% stake in the loss-making natural gas operations of Hungarian oil and gas company MOL Magyar Olaj- es Gazipari Rt, Dow Jones Newswires reported Tuesday. MOL is selling the stake because it is divesting businesses it no longer considers part of its core activities. Earlier, it sold its 51% stake in crude oil storage firm Koolajtarolo Rt to the Crude Oil and Crude Oil Product Stockpiling Association (KKKSz). This year, MOL is set to lose about 120 billion forints on its natural gas operations, dragging the company into the red for the full year. MOL RT: Ruhrgas Bids for MOL Unit --------------------------------- German company Ruhrgas AG has placed a bid for a 49% stake in the gas unit of Hungarian oil and gas company Magyar Olaj-es Gazipari Rt, Dow Jones Newswires reported Tuesday. Further details were not disclosed. In the past, Ruhrgas had said it is interested in buying a stake in MOL. Ruhrgas is owned by German energy groups E.On AG and RWE AG, and oil companies Exxon Mobil Corp., Royal Dutch Shell and BP Amoco PLC. ============= I R E L A N D ============= EIRCOM PLC: Attempts to Lure Nolan From Lattice ----------------------------------------------- Eircom has approached Lattice chief executive Philip Nolan to run the Irish telecom group, the Financial Times reported. Sources said that Nolan was offered an attractive financial package to quit Lattice and become Eircom's new chief executive. He is on a rolling one-year contract of 420,000 pounds. EIRCOM PLC: Will Cancel Listing in December ------------------------------------------- Former state-owned telecom monopoly eircom announced Tuesday that it has applied for the cancellation of its listing in the Irish Stock Exchange and the London Stock Exchange. The de-listing will take effect on December 10. The move comes as the takeover saga at Eircom by Valentia has reached its conclusion. eircom also expects that the New York Stock Exchange will suspend trading of the eircom ADSs once the compulsory acquisition by Valentia of any eircom Shares for which acceptances have not been received has become effective. Following the New York Stock Exchange's suspension of trading of the eircom ADSs, the New York Stock Exchange and eircom will apply to the US Securities and Exchange Commission for deregistration of the eircom Shares and ADSs. The US deregistration and de-listing process is expected to complete by December 31. ========= I T A L Y ========= ALITALIA SPA: Announces Alliance With Air France ------------------------------------------------ Cash-strapped Italian flag carrier Alitalia says it is starting its alliance with Air France on flights between Italy and France, therefore implementing the bilateral agreement signed in July. The commercial partnership between the two carriers enable them to step up capacity and improve services offered to customers, both on passenger and cargo routes. Under the agreement, both airline companies will operate all their flights between France and Italy on a code-share basis. The two airlines will also offer reciprocal frequent flyer programs. Air France and Alitalia passengers who are members of Air France's Frequence Plus and/or Alitalia's MilleMiglia programs, can earn Miles on the two partner airlines' flights which can be exchanged for reward tickets on both airlines. ALITALIA SPA: Faces Share Suspension -------------------------------------- Shares of cash-strapped Italian flag carrier Alitalia SpA were temporarily suspended during Monday's trading after they fell more than the exchange's 10% limit on news of the American Airlines crash, Dow Jones Newswires reported. Later re-admitted, they were down 5.54%, or .06 euros, at 0.99 euros at 1612 GMT. ALITALIA SPA: Reveals 149.2-MM-Euro Loss Over Nine Months --------------------------------------------------------- Alitalia SpA posted a loss of 149.2 million euro ($131.6 million) for the first nine months this year, Dow Jones Newswires reported Tuesday. The airline's records reveal a higher loss compared to 141.1 million euro ($124.4 million) last year. The company added it suffered a revenue loss of around 46 million euro ($40.6 million) in the third quarter due to the September 11 terrorist attacks. The 53% state-owned flag carrier's 2002-2003 restructuring plan is still under review by the government and final approval should take place within the next two to three weeks. Dow Jones added, citing sources close to the company, that the restructuring plan involves layoffs of 5,000 workers and other cost-cutting measures, as well as a possible private investment in the airline. FILA HOLDING: Posts $31.8MM Third-Quarter Loss ---------------------------------------------- Biella-based Fila Holding S.p.A., the maker of sports clothing and footwear, reported Monday a net loss of 35.7 million euros for the third quarter ended September 30, compared with a net income of 2.6 million euros in third quarter of last year. The company added that its net financial indebtedness improved to 375.7 million euros for the quarter end, versus 520.7 euros as of June 30 2001, due to the recent share capital increase and to efforts during the quarter to rebalance the working capital position. "Recent events and negative changes in economic and industry conditions in markets where Fila had expected to improve substantially in the second semester of this year (particularly the US and South America) have impacted on Fila's expectations," Fila Chief Executive Officer Michele Scannavini said. ===================== N E T H E R L A N D S ===================== KPN NV: Considers More Asset Disposals to Cut Debt -------------------------------------------------- Indebted Dutch telecommunications group KPN plans to further dispose its assets in order to reduce debt by 3 billion euro ($2.6 billion) by the year-end, reports the Financial Times. People familiar with the company's plans say it has abandoned mergers and will instead focus on "getting its house in order". The company will sell everything else, including a number of units which are worth several hundred million euros, while retain its Dutch fixed line network and its IP/data network in the Netherlands. KPN will announce the social plan, including 4,800 forced redundancies, later this week. For information, contact the company's CFO J.M. Henderson at +31 70 343 33 79 or email at infodesk@kpn.com VERSATEL TELECOM: Appoints Mark Lazar as New CFO ------------------------------------------------ Amsterdam-based data communications network company Versatel Telecom International N.V. announced Tuesday that as of December 31, Philippe Santin will resign as Chief Financial Officer and will be replaced by Mark Lazar. Santin has served as interim Managing Director of Versatel's Belgian operations. Lazar has been with Versatel since early 1999, most recently serving as the Vice President of Finance. Before Versatel, Lazar was an associate with a San Francisco based private equity investment firm, Gryphon Investors, and a member of the telecommunications investment banking group of Lehman Brothers in New York. Versatel operates in Netherlands, Belgium and Germany and has over 72,000 business customers with a workforce of 1,565. For more information, contact, AJ Sauer, Investor Relations and Corporate Development Manager, at telephone +31-20-750-1231 or email: aj.sauer@versatel.nl =========== N O R W A Y =========== KVAERNER ASA: Secures U.S. Contracts ------------------------------------ Troubled Anglo-Norwegian engineering and construction group Kvaerner said Tuesday that it has been awarded a number of U.S. contracts of more than US$36 million. Songer has been awarded a three-year construction maintenance services contract by E I DuPont Nemours worth US$22 million. Under the agreement, Kvaerner will provide management support to the field staff in West Virginia. The other new contracts include miscellaneous blast furnace repairs from steel industry customers valued at over US$15 million. These include a contract for U.S. Steel in Indiana. Kvaerner Songer, acting as the primary contractor, will handle limited procurement and construction. Kvaerner was earlier awarded two contracts in the U.K., Canada and Venezuela. For more information, contact Vanessa Mourant at +44 (0)20 7957 3290 or vanessa.mourant@kvaerner.com STEPSTONE ASA: Withdraws London Listing --------------------------------------- Online recruitment company StepStone plans to withdraw its listing from the London Stock Exchange after it has decided to close its cash-strapped UK operation, the Financial Times reported Tuesday. Stepstone appointed BDO Stoy Hayward to liquidate its business in the U.K. as part of a desperate cost-saving strategy. This year, the Oslo-based company has already been forced to close eight of its offices including operations in India, Italy and Spain, and will now focus on the online recruitment markets of Scandinavia, Germany and Belgium. Stepstone is trying to raise up to 50 million euro through a rights issue. It also needs between 160 million and 280 million Norwegian krone of new equity capital in order to avoid insolvency. Shares in Oslo closed at 0.26 Norwegian krone during Monday's trading. ===================== S W I T Z E R L A N D ===================== SULZER MEDICA: Wants to Share the Burden With Parent ---------------------------------------------------- Swiss medical technology group Sulzer Medica AG Tuesday repeated its belief that former parent Sulzer AG also holds the responsibility for faulty hip and knee implants sold in the US, the Dow Jones reported. However, the holding company said in a statement, that Sulzer Orthopedics Inc., subsidiary of Sulzer Medica in Texas, should take the blame for any manufacturing defects because the products were made after Sulzer Medica became an independent publicly traded company in 1997. Sulzer Medica, which was fully spun off from Sulzer in July, faces about 1,800 lawsuits in the U.S. after selling faulty hip and shinbone replacements. Zulzer Medica has offered a lump sum of $783 million to settle the lawsuits. =========================== U N I T E D K I N G D O M =========================== EQUITABLE LIFE: Policyholders Await Lawsuit Decision ---------------------------------------------------- Policyholders of Equitable Life are still waiting for a decision from the company as to whether they can sue previous directors or managers and auditors Ernst & Young for negligence, reports the Financial Times. According to Equitable chairman Vanni Treves, law firm Herbert Smith had been conducting an inquiry and will advise them on what to do. The lawyers are also looking at the role of City regulator Financial Services Authority to investigate the likelihood of a claim for negligent regulation. "I would be very disappointed if we weren't able to publish some hard news by Christmas," Treves said. Equitable, which was forced to close to new business last year, expects to mail its final compromise document to policyholders by the end of November, giving its 600,000 with-profits policyholders the chance to vote during December on whether to approve the compromise scheme. MARCONI PLC: Reveals 5.1BB-Pound Loss -------------------------------------- Telecoms equipment group Marconi recorded a 5.1 billion pounds ($ 7.3 billion) loss before tax for the six months to September. According to the BBC News Tuesday, the company's debt also ballooned to 4.28 billion pounds, from 3.17 billion pounds at the end of March, as its sales fell 25% year on year to 1.59 billion pounds. For that reason, the company's stock was down 1.1p to 30p as investors were prompted to sell Marconi shares. The group has said it is now focusing on its core activities of selling broadband and network telecoms kit. Meanwhile, insiders at Japanese investment bank Nomura made it clear that the company's sales prospects for next year remain poor, forcing Marconi into more expensive restructuring. In September, the company announced its first quarter operating loss of 227 million pounds, triggering the resignations of Lord Simpson and chairman Roger Hurn. RAILTRACK GROUP: Byers Changes Story ------------------------------------ Transport Secretary Stephen Byers changed his account of a disputed meeting with Railtrack chairman in summer that triggered the chain of events that placed the company into administration. According to The Times newspaper yesterday, Byers told the Commons that chairman John Robinson asked for a letter of support to appease the company's bankers as an alternative to additional public funds. However, in a statement to the Commons last Monday, Byers said that Robinson told him at the meeting in July that the company's position was worse than thought and unless the government provided financial help, it could not declare itself a going concern. Earlier, Railtrack said it might sue Byers for misfeasance in public office. RAILTRACK GROUP: Investors Pleas to Bank of England --------------------------------------------------- Railtrack shareholders have asked the Bank of England to take up its cause against the government's handling of the company's collapse, the Tuesday edition of The Times newspaper said. The Institutional Shareholders Committee (ISC), which represents leading City investment houses, called on Bank of England governor Sir Edward to persuade the government to find a quick solution to their complaints. The ISC recommended that its members give serious consideration to the possibility of legal action against the government. The Bank of England declined to comment on the ISC's request. TELECITY PLC: Shares Rise as Market Becomes Stable -------------------------------------------------- Shares in Internet company Telecity rose 18% on Tuesday after the UK company said conditions in the difficult European web-hosting market had neither improved nor deteriorated in the third quarter. According to a report from the Financial Times, shares rose to 16-1/2p in early trading, however they were still 97% below their year-high of 684p. Telecity reported a turnover of 6.3 million pounds ($9.1 million) in the third quarter, while losses before interest, tax, depreciation, amortization and exceptional items were 3.4 million pounds. The company is working hard to reduce its cost base and plans to sharply reduce capital expenditure in the fourth quarter. At the end of September, Telecity has a net cash of 7.3 million pounds. ZETEK POWER: Negotiating to Avert Collapse ------------------------------------------ Debt-ridden fuel cell technology company ZeTek is discussing a $12 million restructuring plan with a secured creditor and two major shareholders in a bid to avert its collapse, reports The Times. The names of the creditor and shareholders were not disclosed. Zetek's directors voted to place the company under receivership after attempts to raise funds for continued operations failed. Stock market volatility also forced the company to cancel plans for a $1 billion float last 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 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 * * *