/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/011129.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 29, 2001, Vol. 2, No. 233 Headlines * A U S T R I A * LIBRO AG: Will Keep Amadeus Unit * B E L G I U M * SABENA SA: Belgium Seeks European Support * C Z E C H R E P U B L I C * SVIT ZLIN: Footwear Subsidiaries Up for Sale * D E N M A R K * BRANDTS VENTURES: Heads for Liquidation After Failed Merger * G E R M A N Y * BROKAT AG: Ex-chief Points to Management Errors DAIMLERCHRYSLER: Will Close Truck Plant Next Year DEUTSCH TELEKOM: EU Okays Sale of Units EM.TV: Fires Finance Chief INTERSHOP COMMUNICATIONS: Hopes Turnaround With New Software KINOWELT MEDIEN: Insolvency Looms After Bank Calls in Debts PIXELPARK AG: Bertelsmann Shifts Pixelpark Holdings to Arvato PRODACTA AG: Will Leave Neuer Markt Next Month * H U N G A R Y * MOL RT: In Talks With OMV on Unipetrol Stake * I T A L Y * ALITALIA SPA: Rescue Plan Won't Achieve Break-even Target * N E T H E R L A N D S * HAGEMEYER NV: To Lose Millions With Freetime Insolvency * N O R W A Y * BRAATHENS ASA: Posts NKr757MM Loss in Third Quarter BRAATHENS ASA: SAS Wins Braathens at a Lower Price KVAERNER ASA: LSE Cancels Listing KVAERNER ASA: Workers Face Redundancy Threat * P O L A N D * NETIA HOLDINGS: Telia to Sell Stake in Netia * S W I T Z E R L A N D * GRETAG IMAGING: Shareholders Oppose Insider Trading Allegations SWISSAIR GROUP: Works Out Redundancy Plan * U N I T E D K I N G D O M * BRITISH TELECOM: Ebone Urges Oftel to Pressure BT CORUS GROUP: Goldman Upgrades Stock to 'Market Outperformer' MARCONI PLC: Sells Sietel Stake for Stg20MM RAILTRACK GROUP: Byers Says Chief's Claim 'Was Not in Minutes' RAILTRACK GROUP: May Use Bank Loans to Survive SSL INTERNATIONAL: On Track to Meet Financial Targets ============= A U S T R I A ============= LIBRO AG: Will Keep Amadeus Unit -------------------------------- Austrian retail group Libro will continue the operation of Amadeus itself as it has been unable to find a buyer for the book and media retail unit, Wirtschaftsblatt/FT Information reports. Talks are being held, but if the requested price is not met, then Libro will keep hold of Amadeus. German Book Compapany Buch & Kunst GmbH previously said it is interested in acquiring 23 branches of Amadeus. ============= B E L G I U M ============= SABENA SA: Belgium Seeks European Support ----------------------------------------- The Belgian government, which controls the bankrupt carrier Sabena, is seeking support from Germany, France and Portugal for suit against the Swiss aviation group Swissair, Dow Jones Newswires reports. Privatization Minister Rik Daems says he wants to lodge a joint complaint before the Paris-based Organization for Economic Cooperation and Development and Swiss authorities with the three other nations. Daems said the failure of Swissair to provide a promised 132 million euros payment to Sabena, the first installment of four that were part of a recovery, was instrumental in the demise of Sabena. The Belgian government and Sabena are seeking 1.94-billion-euro damages in a Brussels commercial court. Swissair also had a nearly 50% stake in Germany's LTU, as well as French regional carriers AOM, Air Liberte and Air Littoral, in which it owns around 49% each. It also had a commitment to take up a 34% stake in the beleaguered TAP Air Portugal. The Sabena bankruptcy continues affecting its former employees. =========================== C Z E C H R E P U B L I C =========================== SVIT ZLIN: Footwear Subsidiaries Up for Sale -------------------------------------------- Bankruptcy administrator Roman Rais has declared a public tender for the subsidiaries of footwear empire Svit Zlin, the Prague Business Journal reported. The piecemeal sale of Savela Havirov and Konty G Zlin was launched after the bankruptcy administrator admitted Svit Zlin could not be sold as a single entity. The separate sale of the daughter companies is complicated with their heavy debts and a web of complex relationship between guarantors. If all goes well, the Svit companies will be sold at the end of February 2002, Rais said. Proceeds from the entire Svit bankruptcy are likely to total hundreds of millions of crowns. Savela has around 300 employees and Konty G around 200, while the Svit group employs around 4,200 people. CEBO Zlin will likely be the next subsidiary to be offered for sale, the report added. ============= D E N M A R K ============= BRANDTS VENTURES: Heads for Liquidation After Failed Merger ----------------------------------------------------------- IT investment company Brandts Ventures is heading toward liquidation after the planned merger with venture capital company Growth.dk failed, Borsen/FT Information reports. The merger plan with Growth.dk failed as a larger institutional investor withdrew from the deal. A suspension of payments would provide Brandts with three months to avoid insolvency, but only few believe that the company will be rescued. Danish investment company Uni-invest holds 15% of Brandts. ============= G E R M A N Y ============= BROKAT AG: Ex-chief Points to Management Errors ----------------------------------------------- Former Brokat chief executive Stefan Rover, who founded the German software company seven years ago, said the downfall of the one-time rising star of the Neuer Markt partly reflected management mistakes, the Financial Times reported. The demise included mistaken strategy, poor financial planning and overoptimistic assumptions about the market. "Our main mistake was to expand into new countries and new markets at the same time, and to finance that expansion with a bond. We did not expect the capital markets to dry up as fast as they did, which made refinancing impossible. The bond prevented us from selling businesses when we could have achieved a better price," Rover added. In April, Brokat was burning through its cash at high speed. The unruly financial markets made raising additional funds impossible. It later announced that net loss widened to 825 million euros in the second quarter of this year, nearly 40 times greater than the net loss of 20.7 million euros posted in the second quarter of 2000. Last week, Brokat filed for insolvency after negotiations with bondholders on the restructuring of debt failed. DAIMLERCHRYSLER: Will Close Truck Plant Next Year ------------------------------------------------- DaimlerChrysler AG will close a truck plant in Germany for six days in January and February as poor demand in Europe's trucks market this year has dragged down sales and profit for the German-American auto giant, the Associated Press reports. Company spokesman Michael Behrens says there will be no layoffs or wage cuts at the Woerth plant as DaimlerChrysler draws on flexible working times already agreed with its workers. The plant will continue to produce about 330 trucks a day during the period, the report adds. DEUTSCH TELEKOM: EU Okays Sale of Units --------------------------------------- The European Commission has cleared the acquisition of Deutsche Telekom subsidiaries DeTeKabelService Baden-Wuttemberg and DeTeKabelService Nordrhein-Westfalen by private investment groups Blackstone Group and Caisse de Depot et Placement Quebec (CDPQ), AFX News reported. DeTKS BW and DeTKS NRW provide cable infrastructure. Financial details were not disclosed. Deutsche Telekom earlier revealed a loss of 3.1 billion euros for the first nine months of the year. It said it would use a 1.4 billion euro tax refund to cut its 65.2 billion euro debt mountain this year. EM.TV: Fires Finance Chief -------------------------- German media company EM.TV dismissed Marius Schwarz, the second finance director to leave the company in three months, after clashing with chief executive Werner Klatten, the Financial Times reported. Both executives were in conflict over how much influence German media giant Kirch Gruppe should be allowed to exert over its business. One person close to the company said that, while Schwarz was in favor of Kirch's offer for EMTV's 16.7% share in SLEC, the trust that owns the rights to Formula One races, Klatten had sided with supervisory board members and several large EMTV bondholders and shareholders, who thought the offer unattractive. Kirch rescued EMTV from near-certain bankruptcy last year but EMTV investors criticized the terms of the plan as unfavorable. INTERSHOP COMMUNICATIONS: Hopes Turnaround With New Software ------------------------------------------------------------ Intershop Communications AG launched several new products, which the software company hopes will help to achieve profitability, Dow Jones Newswires reported. Intershop chief executive Stephan Schambach in a press conference said, "A successful turnaround has to be accompanied by new products." Main product includes Enfinity MultiSite where users can manage numerous e-commerce projects from a single platform. Despite cost cutting measures by up to one-third last year, Intershop continues to invest between 12 million euros and 18 million euros in research and development, Chief Operating Officer Wilfried Beeck adds. A former leader in the electronic commerce software industry, Intershop issued numerous earnings warnings and witnessed its market capitalization fritter away over the past year and a half. KINOWELT MEDIEN: Insolvency Looms After Bank Calls in Debts ----------------------------------------------------------- German film rights group Kinowelt Medien AG is threatened with insolvency after one of its main creditors, ABN Amro Bank NV, called in loans of about 51 million euros with effect from this week. If it is not possible to reach an agreement with the Dutch bank at short notice, then Kinowelt will have to file for insolvency in order to protect its other creditors. The management is convinced that if this happens, the result for the funding banks will be significantly worse. Some banks say they are willing to contribute towards funding restructuring measures. The action taken by ABN Amro Bank NV contradicts all economic considerations and endangers Kinowelt suppliers and its 797 employees. For further inquiries, contact PRIVATE Christin Wegener, SVP Corporate Communications, at telephone 089-30 796 7270, fax 089- 30 796 7330 or email presse@kinowelt.de PIXELPARK AG: Bertelsmann Shifts Pixelpark Holdings to Arvato ------------------------------------------------------------- Internet media group Bertelsmann AG announced it would transfer starting January 1 next year its 60.3% holding in Pixelpark AG to its Arvato media services unit to boost the company's prospects, the Dow Jones Newswires reported. The holding is currently held by DirectGroup, Bertelsmann's end- customer business. A slump in market demand for Web sites and some organizational problems brought Pixelpark to its downfall. PRODACTA AG: Will Leave Neuer Markt Next Month ---------------------------------------------- German software developer Prodacta AG will leave the Neuer Markt on December 26 but will remain on the Geregelter Markt segment of the Frankfurt stock exchange. According to a report from Borsen-Zeitung/FT Information, the step was due to the fact that Prodacta had filed for insolvency early this month. Prodacta has been suffering as a result of losses and management changes. The company recorded a deficit of 27.6 million deutsche marks in 2000, while turnover stood at 32.3 million deutsche marks. In October, Prodacta shares reached a low of 0.06 euros. They are currently trading at 0.16 euros. ============= H U N G A R Y ============= MOL RT: In Talks With OMV on Unipetrol Stake -------------------------------------------- Hungarian oil and gas company MOL Magyar Olaj-es Gazipari Rt. and Austrian counterpart OMV are in talks to prepare a joint bid for the 63% state-owned stake of Czech refining and petrochemicals group Unipetrol, the Financial Times reports. TVK, the Hungarian petrochemicals company controlled by Mol, will also be part of any bidding consortium. The move surprised analysts since Mol and OMV are supposed to be rivals. Earlier, MOL revealed losses of 14.29 billion forints in the first nine months of 2001. Its gas division lost 111 billion forints in the first nine months. ========= I T A L Y ========= ALITALIA SPA: Rescue Plan Won't Achieve Break-even Target ------------------------------------------------------- The rescue plan of Italian carrier Alitalia is good, say analysts, but the company still won't break even in 2003. According to a report from Dow Jones Newswires, Alitalia's balance sheet is too weak to support the plans to cut around 14% of its jobs and reduce its fleet by a comparable amount. Adjusted for off-balance-sheet liabilities, Alitalia is balancing roughly 2 billion euros of net debt on shareholder equity of just 1 billion euros. The position will probably worsen next year as the group records another thumping loss, Dow Jones Newswires added. Alitalia aims to raise between 1.6 billion euros and 1.8 billion euros to plug the financing gap, but it has yet to explain how this might be achieved. While around 390 million euros will come from the Italian government, the remainder will be hard to find. ===================== N E T H E R L A N D S ===================== HAGEMEYER NV: To Lose Millions With Freetime Insolvency ------------------------------------------------------- Dutch wholesale trading company Hagemeyer fears it will lose millions of guilders as a result of the insolvency of former subsidiary Freetime in September, the De Telegraaf reports. New owner German-Dutch investment company Forex still owes Hagemeyer Fl 16 million, but Hagemeyer fears that Forex will not meet this obligation. Hagemeyer has since launched a legal procedure to claim the millions from the investment company. Early this month, Hagemeyer said it plans to cut 1,200 jobs in response to rapidly deteriorating market conditions. It already shed 800 jobs in October. The Naarden-based company further warned that the cash earnings per share was expected to be flat this year compared to 2000. Hagemeyer can be contacted at telephone (035) 6957611 or fax (035) 6944396 =========== N O R W A Y =========== BRAATHENS ASA: Posts NKr757MM Loss in Third Quarter --------------------------------------------------- Braathens ASA, Norway's largest domestic airline, swung to a net loss of 757 million kroner in the third quarter from a net profit of 243 million kroner for the same period last year, Dow Jones Newswires reported. The loss was due to large goodwill writedowns and a general depressed travel sector following the September terrorist attacks in the U.S. At the same time, the airline posted revenues of 5.19 billion kroner compared with 5.02 billion kroner for the equivalent period in 2000 due to a weak market. BRAATHENS ASA: SAS Wins Braathens at a Lower Price -------------------------------------------------- Scandinavian Airlines SAS bid 35 Swedish crowns per Braathens share in May, but according to the Dagens Industri and Financial Times, parties involved settled on 27 Swedish crowns per share. This represents a fall of around 25% and the bid is in total worth around one billion crowns, down from around 1.3 billion crowns. Negotiations between the main shareholders of Braathens and SAS have now been completed where an offer to buy the remaining shares will be issued on November 28 up to December 14. Braathens has now signed an agreement for the sale of six Boeing 737-700s to Babcock & Brown. Braathens will be receiving two new aircraft in the spring of 2002, and by the end of that year ter it plans to reduce the fleet by six more aircraft. The contracts for the remaining 23 leased aircraft have been renegotiated at substantially lower rates. Braathens considers the result of these negotiations to be satisfactory. The restructuring of the aircraft fleet means financing cost cuts that is expected to bring profitability for the company as early as 2002. The said aircraft fleet restructuring, divestment and leasing agreements for the takeover of Braathens by SAS remain conditional. KVAERNER ASA: LSE Cancels Listing --------------------------------- The London Stock Exchange cancelled the securities of Anglo- Norwegian construction and engineering firm Kvaerner from trading following notification from the Financial Services Authority that it cancelled the securities from the Official List. The listing for the following securities were cancelled on Tuesday at 8:00 AM at the request of the company. KVAERNER ASA Ordinary Shares of NOK12.50 each (4-502-029)(NO0004684408) fully paid If you have any queries relating to the above, please contact Listing Applications at the FSA on 020 7943 0333 Option 3 and/or Securities Management at the LSE on 020 7797 1600. KVAERNER ASA: Workers Face Redundancy Threat -------------------------------------------- Some 7,000 workers face fresh fears about their jobs at Kvaerner, pending a crucial meeting of shareholders in Oslo today to vote for or against a rescue plan. The refinancing plan requires a two-thirds majority at the shareholders' meeting, but Kvaerner shareholder Aker Maritime is expected to vote against after its own rescue plan was rejected by Kvaerner's board. The ailing engineering company was saved from bankruptcy for yet a few more days after the board managed to secure 19 million pounds. =========== P O L A N D =========== NETIA HOLDINGS: Telia to Sell Stake in Netia -------------------------------------------- Swedish telecommunications company Telia has decided to sell its stake in financially troubled Netia, Poland's leading alternative local and long-distance fixed-line telecommunications provider, Dagens Industri/FT Information reported. The situation is complicated because a number of shareholders are involved and a sale is not expected to be carried out until next year. Telia, the company's largest shareholder with 48%, invested a total of 2.2 billion Swedish kronas in Netia, which has been heading towards insolvency since August. Netia's debts total about 8 billion Swedish kronas. Earlier, international rating agency Fitch downgraded the senior unsecured corporate credit rating of Netia Holdings to C from B-. The company also got a Ca rating from Moody's Investors Service, attributed to its failure to show more funds to pay its debt obligations. ===================== S W I T Z E R L A N D ===================== GRETAG IMAGING: Shareholders Oppose Insider Trading Allegations --------------------------------------------------------------- Shareholders of Regensdorf-based imaging technology manufacturer Gretag Imaging countered media allegations of an insider trading in the transaction of the company's shares effected in 2001. Several media published allegations that the Gretag share price in recent weeks had given rise to suspicion of insider trading following the sale of the Professional Imaging Division. Founding shareholders William Recker, Dr. Eduard Brunner and Dr. Hans-Rudolf Zulliger disclosed their transactions in Gretag shares in 2001 in order to counter the insider trading allegations. The documents they provided show clearly that no breach of the stock market's insider rules took place. For further information, contact Kurt Munger, Head of Corporate Communications and Investor Relations, at telephone +41 1 842 26 07, fax +41 1 842 27 48 or email kurt.muenger@gretag.com SWISSAIR GROUP: Works Out Redundancy Plan ----------------------------------------- Bankrupt Swiss international carrier Swissair still has to complete the financing payment plan of around 50 million Swiss francs for its employees, the Neue Zurcher Zeitung/FT Information reports. Earlier, Swissair said it was ready to finance a redundancy plan of 80 million Swiss francs for 800 staff laid off in the U.S., Japan, France and India. However, those in Switzerland were excluded. =========================== U N I T E D K I N G D O M =========================== BRITISH TELECOM: Ebone Urges Oftel to Pressure BT ------------------------------------------------- Chief executive Duncan Lewis of Ebone, an alternative telecommunications company, urged David Edmonds, director-general of telecoms regulator Oftel, to press British Telecommunications to open its local loop in case Broadband Britain becomes "an embarrassing disaster". According to a report from the Financial Times, BT has not opened its network sufficiently or fast enough to roll out high-speed internet access to a large number of customers, forcing 30 operators to pull out of the UK broadband market. The European Union could take action against states that have been slow to open the networks to competition. CORUS GROUP: Goldman Upgrades Stock to 'Market Outperformer' ------------------------------------------------------------ Shares in Corus Group PLC were higher in opening trade after Goldman Sachs upgraded the stock of the steel giant to 'market outperformer' from 'market performer' with a price target of 100 pence, the AFX News reported. The 100 pence fair value is based on the assumption that net debt can be cut to 1.5 billion sterling by 2002. Furthermore, the broker reduced its estimate for 2001 to a loss of 14 pence from a previous estimate of a 22 pence loss. This accounts for the company's cost savings, further cost cuts in 2002, as well as an improved view of the 2002 markets. MARCONI PLC: Sells Sietel Stake for Stg20MM ------------------------------------------- Troubled U.K. telecommunications equipment group Marconi PLC sold its 21.5% shareholding in Siemens Telecommunications Pty Ltd, Sietel, for 20 million sterling cash, AFX News reported. The disposal of the holding in Sietel is part of the group's program to reduce debt and focus on core communications businesses. Marconi, which has seen its share price collapse and three senior executives ousted since first warning on profits in July, recently revealed it had dropped 5.1 billion pounds into the red in the first six months of the year (see http://www.bankrupt.com/misc/marconi.pdffor the company's interim report). RAILTRACK GROUP: Byers Says Chief's Claim 'Was Not in Minutes' -------------------------------------------------------------- Transport secretary Stephen Byers said that civil servants did not minute a disputed conversation between him and Railtrack chairman John Robinson about the state of the company's finances. Byers maintained the Railtrack chairman told him in July that unless the company received more government money, it would not be a going concern by November 8. Robinson has always denied this account. According to a Financial Times report, a note of that part of the meeting was not taken. Byers said Robinson had asked officials not to record their conversation about finances, but the chairman contradicted this. Whether or not Robinson told the government about Railtrack's financial plight is a crucial piece of evidence, as Byers has defended his decision to place the company into administration on grounds that it faced a funding meltdown and would have needed billions of pounds more public money to keep going. RAILTRACK GROUP: May Use Bank Loans to Survive ---------------------------------------------- The government could use bank loans rather than direct grants to meet the estimated 3.5 billion pounds needed to keep Railtrack going. According to a Financial Times report, ministers are considering plans under which administrators Ernst & Young could ask banks to lend the money to pay creditors and provide working capital. The administrators have few more days to find willing backers and, if unsuccessful, the government would have to put up the funds. SSL INTERNATIONAL: On Track to Meet Financial Targets ----------------------------------------------------- Shares in SSL International were up 28-1/2p to 567-1/2p on Tuesday morning as the company, which has been hit by allegations of overstating its results in 1999 and 2000, said it was on track to meet its growth targets. The maker of Durex condoms and Scholl sandals reported a pre-tax loss of 2.4 million pounds for the six months to September 30, after exceptional gains of 3.2 million pounds (see http://www.bankrupt.com/misc/ssl.pdffor the company's interim report). Debt was reduced from 381 million pounds to 332 million pounds since March. "We have strengthened our financial position, particularly with the significant reduction in excess trade inventories and the improvement in net debt and working capital levels," finance director Garry Watts said. "We will continue with these efforts in the second half and remain on course to meet our financial objectives for the full year and beyond." In August, the U.K. Serious Fraud Office launched an investigation into SSL after Garry Watts discovered that exceptional charges were being used to hide the existence of fraudulent sales. *********** 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 * * *