/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020114.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, January 14, 2002, Vol. 3, No. 9 Headlines * F R A N C E * FIMATEX SA: Will End London and Spain Operations * G E R M A N Y * DAIMLERCHRYSLER: Will Sell Debis Stake to DT DEUTSCHE TELEKOM: Makes Preliminary Bid for Cesky Telecom TRIUS AG: Applies for Change of Segment WUNSCHE AG: Must Present Rescue Plan or Face Insolvency * I R E L A N D * AER LINGUS: Voluntary Package or Compulsory Redundancy AER LINGUS: Renews Efforts to Search for Investors * N O R W A Y * KVAERNER ASA: Announces New Group Structure and Management Team KVAERNER ASA: CEO Lund Resigns From Board * S W E D E N * SCANDINAVIA ONLINE: Disposes of Sense Communications Holdings * S W I T Z E R L A N D * SWISSAIR GROUP: Crossair Hopeful on Credit Facility Approval * U N I T E D K I N G D O M * AGUSTAWESTLAND: Factory Closure Will Claim 950 Jobs BRITISH TELECOM: Bland Calls Off Plans to Focus on Broadcasting CLUBHAUS PLC: Oystertec Founder Bids on Assets for GBP65MM EQUITABLE LIFE: Charges Loom Even If Rescue Plan Gets Approval EQUITABLE LIFE: Chief Gives Apology to Policyholders GLOBAL TELESYSTEMS: Court Approves Sale Proposal to KPNQwest HUNTINGDON LIFE: LSR Completes Huntingdon Buy JUST GROUP: Shareholders Attempt to Save Company MARCONI PLC: Sells Property to Danher for US$400MM NTL INCORPORATED: Credit Suisse Will Advise on Debt Rescue NTL INCORPORATED: Bondholders Ask for Terms on Rescue Plan P&O PRINCESS: Directors Reaffirm Support for Royal Caribbean Bid RAILTRACK GROUP: WestLB Appeals to Ministers for Support =========== F R A N C E =========== FIMATEX SA: Will End London and Spain Operations ------------------------------------------------ Online stock-brokerage company Fimatex, of which French bank Societe Generale owns a 75% stake, will end its operations in London and Spain after failing to stop mounting losses, Electronic Telegraph reported. The French bank urged Fimatex's board to close the two operations that contributed to over half its 2001 interim losses totaling 13 million euros. The move is expected to lay off about 26 employees in both countries. While retail investors were scrambling for technology stocks as Europe's technology markets soared, Fimatex expanded aggressively between 1999 and 2000. The company recruited heavily to open offices in London, Germany and Spain. However, when the global economy faded after the burst of dotcom businesses, trading volumes plunged as investors distanced themselves from the industry. ============= G E R M A N Y ============= DAIMLERCHRYSLER: Will Sell Debis Stake to DT -------------------------------------------- German-American car maker DaimlerChrysler plans to sell its Debis Systemhaus stake to Deutsche Telekom for 4.6 billion euros ($4.1 billion) in the next six months, CNN reported, citing DaimlerChrysler Chief Financial Officer Manfred Gentz. DaimlerChrysler needs cash to turn around its loss-making U.S. unit Chrysler. Daimler's industrial business had net debts of 4.5 billion euros at the end of September. Earlier, DaimlerChrysler said it was on track for adjusted operating profit in 2001 of about 1.2 billion euros. Debt-laden Deutsche Telekom, Europe's biggest phone company by sales, bought 50.1% of Debis, which offers IT services from software to communications networks, in March 2000. DEUTSCHE TELEKOM: Makes Preliminary Bid for Cesky Telecom --------------------------------------------------------- Fixed line operator Deutsche Telekom, along with a number of private equity firms, made preliminary offers for Czech Republic's national phone company Cesky Telecom, the Wall Street Journal reported. The Czech government encouraged financial investors to bid only if they file a joint offer together with a telecommunications company that would assure Cesky Telecom's development. The government and a venture of the Netherlands' KPN and Swisscom, together controlling 78% of the company, intend to sell at least 51% of their stake in Cesky Telecom. Last year, Telekom sold its shares and asset-backed bonds as part of the company's plans to clean its balance sheet and bring down debt levels to US$49.9 billion by end of 2002. TRIUS AG: Applies for Change of Segment --------------------------------------- The TRIUS Corp. i. L. has applied for a change of segment from the "Neuer Markt" to the "Geregelter Markt" of the Frankfurt stock exchange effective February 1. In December, a German court appointed Thomas Mikusinski as liquidator of Friedrichsdorf-based Trius AG. The hardware and software solutions provider reported losses during the previous 12 months and has not paid any dividends during the previous four fiscal years. In 2001, earnings before extraordinary items were -10.20 million euros, or -219.9% of sales. WUNSCHE AG: Must Present Rescue Plan or Face Insolvency ------------------------------------------------------- Fashion group Wunsche AG must present to the district court with a recovery concept by the middle of this week or face insolvency proceedings, German news group Suddeutsche Zeitung and FT Information reported. Administrator Hans U Hildebrand told the press that to rescue the company, a combination of sacrifices and new contributions will be required from banks, shareholders and other creditors involved. He stressed that only the Wunsche AG is threatened by insolvency while its subsidiaries Joop, Cinque, Miles and Jansen will be unaffected. The report added that Wunsche's debts total over 100 million euros. In addition to the effects in the decline and weakening of the branded goods and trading business, Wunsche is having difficulties relating to exceptional factors caused by its subsidiary Joop. Gerhard Janetzky, Wunsche board spokesman, remain hopeful that the insolvency application can be withdrawn. ============= I R E L A N D ============= AER LINGUS: Voluntary Package or Compulsory Redundancy ------------------------------------------------------ The state airline Aer Lingus has threatened compulsory redundancy for pilots who refuse to accept a voluntary package related to the Irish carrier's rescue plan. Through the pilots' union, IMPACT, workers expressed to take action against forced lay-offs. The Irish Times reported that despite union difficulties, the company's rescue plan to counter expected huge losses after a collapse in the industry shall continue to be implemented. AER LINGUS: Renews Efforts to Search for Investors -------------------------------------------------- Aer Lingus will continue its search for investors at the end of the month. According to a report from The Irish Times newspaper, the airline's corporate finance adviser NCB Stockbrokers will head the proceedings along with the Citigroup, former Salomon Smith Barney. British Airways, which partners with the Irish airline in the OneWorld alliance, was reported to have shown tentative interest to government advisers last year. Though not part of the OneWorld alliance, American Airlines, Lufthansa and Aer France are most likely to be approached. Observers say Aer Lingus would be very lucky to achieve a valuation of 250 million pounds, the amount being only half its 500-million-pound valuation reported a year ago. =========== N O R W A Y =========== KVAERNER ASA: Announces New Group Structure and Management Team --------------------------------------------------------------- Anglo-Norwegian Group Kvaerner announced Friday changes to its business areas and parent company. Shipbuilding and Pulp & Paper, formerly categorized as "Other Activities," are being established as separate business areas alongside E&C (Engineering & Construction) and Oil & Gas. The management structure of the parent company, Kvaerner ASA, will be simplified by having all support functions report to a newly created position of Chief of Staff. The Group has shelved plans to sell its Shipbuilding and Pulp & Paper operations. Kvaerner's President & CEO Helge Lund said, "In addition to the merger between Aker Maritime and Kvaerner Oil & Gas, improved operations and increased profitability will be our top priorities in the future. These organizational changes will allow us to focus maximum attention on achieving these objectives." The relocation of the Kvaerner ASA's head office from London to Lysaker, outside Oslo, Norway, is continuing as planned, and will be completed by the end of the first quarter. As a result of these changes, Kvaerner is being reorganized with the creation of a new post of executive vice president responsible for staff functions (Chief of Staff). The CEO, CFO, and the Chief of Staff will constitute the senior management for Kvaerner ASA. Trond Westlie, currently Chief Financial Officer at Aker Maritime, will move to Kvaerner and take up the position of CFO. Finn Berg-Jacobsen, who has been Kvaerner's Acting CFO since September 2001, has been appointed Chief of Staff. Sverre Skogen, currently CEO of Aker Maritime, has been appointed to head Kvaerner's Oil & Gas business area once the merger with Aker Maritime has been completed. Jan T. Jorgensen, who has been leading Kvaerner Oil & Gas through a positive development during the last couple of years, will continue to head this business and will remain a member of the integration steering committee until the merger has been completed. At that time, he will continue working for the Kvaerner Group in an advisory capacity for a period of time. Following these changes, Kvaerner's corporate management team will comprise of President & CEO Helge Lund, Chief Financial Officer Trond Westlie, Chief of Staff Finn Berg-Jacobsen, E&C President Keith Henry, Oil & Gas President Sverre Skogen, Shipbuilding President Hans Petter Finne and Pulp & Paper President Athol Trickett. Furthermore, Geir Arne Drangeid, currently Vice President, Corporate Communications at Aker Maritime, will assume the corresponding function at Kvaerner. He will report to Finn Berg- Jacobsen, but will attend meetings of the corporate management team. Trond Andresen, currently Senior Vice President, Group Communications and IT, will support the new management team until February 1, 2002, at which time he will leave the Group. For more information, please contact Paul Emberley, Vice President Group Communications at telephone +44 (0)20 7339 1035 or +44 (0)7768 813090 or paul.emberley@kvaerner.com. KVAERNER ASA: CEO Lund Resigns From Board ----------------------------------------- Kvaerner said that Helge Lund has resigned from the Board, following his appointment as the company's new President & CEO on January 1. Lund will retain the right and obligation to participate in board meetings. Following the resignation of Lund, the board now comprises five non-executive cirectors and three employee representatives. Kjell Inge Rokke is the chairman of the board. =========== S W E D E N =========== SCANDINAVIA ONLINE: Disposes of Sense Communications Holdings ---------------------------------------------------------- Scandinavia Online, the leading Internet media company in the Nordic region, has divested its entire holding of approximately 2.4 million shares in Oslo-listed Sense Communications. The consideration amounts to 23 million Swedish kronas. Scandinavia Online is subject to a tender offer by its key shareholder Eniro AB. In light of Eniro's majority stake in SOL and the commencement of compulsory acquisition, SOL's board has applied for delisting of its shares from the Stockholmsboersen effective January 15. For more information, please contact Birger Steen (CEO) at telephone +46 709 35 28 18 or via email at birger.steen@scandinaviaonline.se ===================== S W I T Z E R L A N D ===================== SWISSAIR GROUP: Crossair Hopeful on Credit Facility Approval ------------------------------------------------------------ Crossair AG's management is confident that a credit facility of 300 million Swiss francs (US$180.6 million) will have the approval of Zurich voters, Dow Jones Newswires reported. The package is designed to help finance the incorporation of a proposed 26-long-haul fleet for the new Swissair Group. If approved, the takeover will be realized by the end of March. Otherwise, they would have to lessen the intended number of aircrafts to four. If voters in the canton of Zurich approve the credit, Crossair will take over Swissair's fleet, which will consist of 82 Crossair short-haul aircraft as well as 26 short-haul and 26 long-haul Swissair planes. The group has raised its capital by 2.3 billion Swiss francs (US$1.4 billion) through funds from the Swiss government, UBS AG, Credit Suisse Group and private investors to fund its fleet. However, the group still needs another 450 million Swiss francs from cantonal governments, including the credit from Zurich, to achieve its targeted equity ratio of 35% to be able to finance the new airline. =========================== U N I T E D K I N G D O M =========================== AGUSTAWESTLAND: Factory Closure Will Claim 950 Jobs --------------------------------------------------- AgustaWestland, merger company between GKN of the U.K. and Finmeccanica of Italy's helicopter operations, will lay off 950 jobs after the company decides to shut down its plant in England. The company's Weston-super-Mare workforce will be reduced by 350 while its main factory in Yeovil, where the venture's U.K. operations will now be focused, will also be affected by the closure. The U.K. workforce reached 5,250 before the reported jobcuts. AgustaWestland said the move was necessary because it had nearly completed big orders of Apache and EH-101 helicopters for the British armed forces. Unable to sustain its present size, the group over-expanded to build 67 Apaches for aircrafts for the Royal Navy and the Royal Air Force earlier. Sir Ken Jackson, general secretary of the engineering and professional union Amicus, said the union would hold talks with the company in order to save its Weston-super-Mare plant. BRITISH TELECOM: Bland Calls Off Plans to Focus on Broadcasting --------------------------------------------------------------- BT Group Chairman Christopher Bland has decided to call off plans to focus on broadcasting to the relief of investors, the Financial Times reported. BT chief said at a U.S. conference that BT might use its broadband network for television but would not directly enter into the media and entertainment business. According to FT, one large shareholder in support for BT chairman's new decision affirms Bland's clear and unequivocal message that saying that "this is not what the market is looking for". Head of U.K. equities at UBS Asset Management Hugh Sergeant said investors wanted BT to show improvement in its return on present investments, maintaining control of capital cost. Meantime, JP Morgan downgraded its recommendation on BT to market performer because of an increase in its risk profile due to Sir Christopher's remark. CLUBHAUS PLC: Oystertec Founder Bids on Assets for GBP65MM ---------------------------------------------------------- Oystertec founder Paul Davidson has written to Barclays Bank offering to buy Clubhaus' assets for 65 million pounds, the Electronic Telegraph reported. Claiming to have over 10% of Clubhaus shares, Davidson, with former Today newspaper owner Eddy Shah and leisure operators David Lloyd and Martin Knight, said their alliance is more capable to run the troubled group's operations. Davidson said that he offered Barclays a loan of about 45 million pounds to Clubhaus to prevent the company's liquidation, adding that he will force the company to hold an extraordinary meeting and seek to replace most of the board. Clubhaus finance director Rupert Horner said he had not received any proposal from Davidson but believed that Barclays had received one. EQUITABLE LIFE: Charges Loom Even If Rescue Plan Gets Approval -------------------------------------------------------------- Equitable Life Assurance Society Chairman Vanni Treves in an interview confirmed the company expects to face a string of lawsuits from policyholders despite the approval of a rescue plan for the mutual insurer. Customers have backed up a proposal Friday to allow the insurer to raise reserves to 250 million pounds ($361 million), Bloomberg reported. The plan was also intended to discourage customers from taking higher payouts and from suing Equitable. The insurer needs the approval of customers who own 75% of Equitable's assets for the rescue plan to be implemented. EQUITABLE LIFE: Chief Gives Apology to Policyholders ---------------------------------------------------- Equitable Life chairman Vanni Treves apologized to policyholders on Friday as they met to vote on a last ditch rescue plan aimed at closing a massive funding gap at the stricken mutual life assurer. Treves was forced to make a public apology after Equitable was brought to its knees by offering guaranteed returns on pensions it later found it could not afford. He said a "yes" vote on a compromise deal that would cap future liabilities was the best way to ensure the company's survival. The compromise deal, which must be in place by March, needs the support of at least 50% of policyholders by number and 75% by value. The deal would mean 70,000 holders of guaranteed pension policies are being asked to give up potential lucrative entitlements to stabilize the troubled insurer's finances. Others are being asked to waive their rights to sue Equitable for not being warned about its liabilities. GLOBAL TELESYSTEMS: Court Approves Sale Proposal to KPNQwest ------------------------------------------------------------ Global TeleSystems, Inc. said Thursday that the U.S. Bankruptcy Court in Wilmington, Delaware approved its revised Disclosure Statement that outlined terms on its proposed restructuring and sale of subsidiary Ebone Global TeleSystems Europe BV to KPNQwest. The company plans to distribute the U.S. plan and associated ballots to the parties entitled to vote on the package within the next week. Ballots are to be returned to the company on February 13 and a hearing will be held to confirm the plan of February 20. Pursuant to an order from the Dutch Bankruptcy Court reviewing the restructuring plan filed for GTS Europe, a meeting among the parties authorized to vote will be held in Amsterdam on February 25. The Delaware Court earlier ordered GTS to review other acquisition offers which met a specified criteria from parties other than KPNQwest. However, no competing offer was received that met these criteria. GTS is the parent company of broadband optical and IP networking company in Ebone and of voice and data services provider GTS Central Europe. For further information, please contact GTS Investors Steve Bond, Investor Relations at telephone +44(0)-207-769-8242, fax +44(0)- 207-769-8068, or via email at investor.relations@gts.com HUNTINGDON LIFE: LSR Completes Huntingdon Buy --------------------------------------------- After three months of negotiation, U.S. group Life Sciences Research (LSR) has finally taken over the U.K. drug-testing firm Huntingdon Life Sciences, BBC News reported. LSR was set up last year for the purpose of buying Huntingdon, which has been the targeted by campaigners protesting against its use of animals in drug testing. Huntingdon's market listing will now move to the New York Stock Exchange, and its London listing will be cancelled effective January 24. Huntingdon recently lost its biggest shareholder and one of its leading creditors, Stephens Group, in a further sign that investors are becoming wary of being associated with the controversial firm. The move was a fresh blow to Huntingdon, which has struggled to attract investment since being targeted by campaigners. JUST GROUP: Shareholders Attempt to Save Company ------------------------------------------------ Just Group PLC shareholders are currently attempting to secure funding for the cash-strapped British children's entertainment firm that was suspended on the Alternative Investment Market in December. A group of six shareholders, all businessmen who for ease of recognition have named themselves GOS, met early this month with Just Group chairman Ian Miles and finance director David Newcombe to try to ascertain the group's current position and to put forward a proposal for shareholders to provide the required funding. The funding will enable the group's auditors, Andersen, to sign off the annual accounts to April, 2001. The GOS members are convinced that Just Group has an exceptional future, particularly with Butt Ugly Martians, the Group's major intellectual property. It is understood that the agreement between Just and Universal, which includes a movie deal, will result in the entire cost of future productions of Butt Ugly Martians being met by Universal saving Just considerable sums in production costs. Just began to run into trouble in May last year, as it pumped money into Butt Ugly Martians, but was left with a funding gap until merchandising revenues from the show came on value. The company last week appointed Wednesday KPMG Corporate Recovery as administrators to allow the company to continue trading. Just Group also owns other characters with global potential such as McDonalds Farm and Pinky and Perky. MARCONI PLC: Sells Property to Danher for US$400MM -------------------------------------------------- Marconi plc announced that it has reached agreement to sell its U.S. subsidiary Marconi Data Systems to tool components maker Danaher Corporation for US$ 400 million in cash, this being its second divestment this month. The transaction, which is subject to regulatory approvals, is expected to close before March 31, the end of Marconi's financial year. The proceeds will be used to reduce group net debt of between 2.7 and 3.2 billion pounds. Marconi chief executive Mike Parton said this step is made in accordance to the company's objective of maximizing cash proceeds from non-core asset disposals as it focuses on its core communications business. Marconi Data Systems's value of net assets was 93 million pounds as of ending September 30, 2001. NTL INCORPORATED: Credit Suisse Will Advise on Debt Rescue ---------------------------------------------------------- Cable TV company NTL Incorporated calls on the services of Credit Suisse First Boston to advise on options for restructuring its 19 million euro (US$17 billion) debt, the Financial Times reported. Debt-riddled NTL, which has never considered a restructuring, is now considering the move to lessen its financial woes. Meanwhile, NTL shares fell almost 16% Thursday from 90 to 76 cents as reports regarding the company's capacity to meet forecasted profits emerged. NTL INCORPORATED: Bondholders Ask for Terms on Rescue Plan ----------------------------------------------------------- About 30 senior NTL bondholders Wednesday held a joint conference call to co-ordinate their claims asking the cable group for an outline of the terms of any restructuring package, the Financial Times reported. Analysts with leading NTL bondholders are considering between the possibilities of a large-scale debt for equity swap or the option to seek an equity infusion from a strategic partner. France Telecom holds 5.6 billion euros (US$5 billion) of the company's convertible bonds. Other key creditors include Bank of Scotland, Barclays, JP Morgan, Morgan Stanley and Royal Bank of Scotland. The FT report added that NTL owns a network of subsidiaries, with many different levels of debt, some of which is secured against particular assets. NTL is currently bearing heavy interest payment from its cash and bank credit lines which analysts say will continue in the next 12 to 18 months. The company's debt repayment schedule for some of its bonds will start next year. P&O PRINCESS: Directors Reaffirm Support for Royal Caribbean Bid ---------------------------------------------------------------- P&O Princess Cruises chief Peter Ratcliffe issued a circular stressing on the company's combined value after the Royal Caribbean merger upon which directors confirmed their support, Ananova reported Friday. The chief relates that Carnival's previous bid remain low despite financial terms of an unconditional takeover offer. Ratcliffe said that Carnival must base his offer on the upside potential earnings and valuation of both companies after the P&O and Royal Carribean merger in order to match P&O's expectations. The P&O boss said negotiations would be open until January 18. RAILTRACK GROUP: WestLB Appeals to Ministers for Support -------------------------------------------------------- German bank WestLB, preparing an offer for Railtrack, expressed its final attempt to convince the government to work with it to take Railtrack out of administration, the Times reported Friday. The bank is appealing to the state to cut short the time that Railtrack is in administration to be able to start rebuilding as soon as possible. The Prime Minister's office and the Department for Transport, Local Government and the Regions (DTLR) Thursday suggested contrary to the possibilities for collaboration with WestLB. According to David James, who heads the WestLB consortium, "The Government should now be considering very carefully what is in the public's best interests. How many days in administration at 1 million pounds a day do we have to have? We think it's time for the Government to think that through." The report added that WestLB's SwiftRail consortium, believed to have spent about 1 million pounds on its bid so far, might walk away if the government refuses to consider its proposals for a collaborative approach. *********** 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. 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