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/raid1/www/Hosts/bankrupt/TCREUR_Public/020412.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 Friday, April 12, 2002, Vol. 3, No. 72 Headlines * G E R M A N Y * HEYDE AG: Software Consulting Firm Files for Insolvency HEYDE AG: Company Profile KIRCHMEDIA: Contracts Roland Berger's Services to Draft Strategy KIRCHMEDIA: Prosecutors to Pounce on Any Irregular Transaction KIRCHMEDIA: Moody's Put ProSiebenSat.1 Ba3 Debt Rating on Review KIRCHPAYTV: BSkyB Will Not Rescue Unit, Wants Investments Back LTU GROUP: No Longer Needs New Investor to Survive MOBILCOM AG: Regulator to Nix France Telecom-Bank Arrangement SCHNEIDER TECHNOLOGIES: To Auction Electronics Unit, New Shares * P O L A N D * ELEKTRIM SA: Vivendi, BRE Take Control of Board, Present New Plan * S P A I N * QUIERO TV: In Liquidation Talks With Creditors and Suppliers * S W I T Z E R L A N D * SULZER MEDICA: Records US$713.5 Million Loss Due to U.S. Suit * U N I T E D K I N G D O M * ARHTUR ANDERSEN: U.K. Partner Picks Deloitte Over Favored KPMG ARTHUR ANDERSEN: U.K., Indian Offices Named in Enron Class Action BRITISH TELECOM: New Strategy Tags GBP 500MM in Five Years CONSIGNIA: May Be Forced to Close 3,000 Post Offices CORDIANT COMMUNICATIONS: Notification of Additional Listing ENERGIS PLC: Gives No Comment on Bond Default Report MARCONI PLC: Board Drafts New Business Plan to Weather Crisis PHARMING GROUP: Will Be Delisted From Nasdaq Europe ============= G E R M A N Y ============= HEYDE AG: Software Consulting Firm Files for Insolvency ------------------------------------------------------- Heyde AG, the German software development and consultancy group, has filed for insolvency, Borsen-Zeitung and FT Information reported Tuesday. At present, creditors have agreed not to provide the company further financial provisions. Heyde recorded a loss of EUR58.1 million (US$51.1 million) in the third quarter of 2001. At the end of February, the group fell further after admitting to have missed profit targets by a long way. In March, the company announced to refocus its operations on the company's systems integration business in Germany with its Supply Chain and Financial Services Divisions. Pursuant to this plan, the company decided to wind up its loss-making systems integration subsidiaries in the UK, Brazil, and Spain. In order to reinforce the strategic and operating rollout of the next restructuring steps, the management consultancy Droege & Company was hired to act as temporary manager in several areas. The new size of the company resulting from this refocusing will result in optimized infrastructure and service capacities, including a sustainable revised real estate and infrastructure concept. HEYDE AG: Company Profile ------------------------- Name: Heyde AG Auguste-Viktoria-Strasse 2 61231 Bad Nauheim Germany Phone: +49-6032-308-0 Fax: +49-6032-308-2000 Website: http://www.heyde.de SIC: Software Development and Consultancy Employees: 1,595 06/30/01 Net Loss: EUR58.1 million (US$51.1 million) 06/30/01 Total Assets: EUR176.8 million (US$155.5 million) 06/30/01 Total Liabilities: EUR118.9 million (US$104.6 million) 06/30/01 Type of Business: Heyde AG provides computer network consulting and integration services primarily to banking, supply chain, warehousing and insurance industry. Trigger Event: In early March, the company announced to refocus its activities on the company's systems integration business in Germany with its Supply Chain and Financial Services Divisions. Chief Executive Officer: Dirk Wittenborg Chief Operating Officer: Bertram Salzinger Chief Financial Officer: Axel Buchholz Deputy Board Chairman: Harald Joos Auditor: PricewaterhouseCoopers GmbH No. of Shares in Issue: 45.1 million KIRCHMEDIA: Contracts Roland Berger's Services to Draft Strategy ---------------------------------------------------------------- Roland Berger & Partner has been hired by the administrators of KirchMedia to help draft a reorganization plan for the troubled ex-core rights business of KirchGruppe. Dow Jones Newswires says Roland Berger Strategy Consultants will analyze the cost-cutting potential at KirchMedia and come up with recommendations on how to restructure the firm. The consultant will work closely with Wolfgang van Betteray and Hans-Joachim Ziems, the co-administrators of the troubled media- rights company. KirchMedia's creditor banks want to keep the business running and attract new investors once its EUR10 billion or so debts are substantially reduced. KIRCHMEDIA: Prosecutors to Pounce on Any Irregular Transaction -------------------------------------------------------------- Bavarian state prosecutors stand ready to investigate any complaints arising from the insolvency filing of KirchMedia early this week, the Financial Times says. Munich prosecutor Manfred Wick says he expects minority shareholders to first blow the whistle on any fraud or irregularity with respect to its lending relationship with creditor banks or the group's convoluted accounts. "I would not be surprised if the first complaint came from [KirchMedia's] minority investors. The investors are the ones that spring to mind because they generally take most of the damage in such cases," Mr. Wick told the paper The prosecutor recently concluded a probe into EM.TV, another Bavarian media group, whose founders Thomas and Florian Haffa are now facing criminal charges for alleged fraud. Already, Commerzbank, one of KirchMedia's four largest creditors, has questioned the validity of the collateral on a EUR460 million loan by Dresdner Bank to Taurus Holding, a KirchGruppe subsidiary. The loan is secured against Kirch's 25 percent stake in Spanish broadcaster Telecinco, which is held by KirchMedia. Dresdner claims it has a contract with Kirch securing the stake in case of insolvency at KirchMedia. But Wolfgang Hartmann, a Commerzbank board member, claims this week the contract was signed less than three months before the insolvency. KIRCHMEDIA: Moody's Put ProSiebenSat.1 Ba3 Debt Rating on Review ---------------------------------------------------------------- Credit rating agency Moody's Investors Service says ProSiebenSat.1's Ba3 debt rating is up for review with "potentially substantial adverse consequences" if it cannot operate independently in Germany's free-to-air TV market after key shareholders KirchMedia GmbH & Co filed for insolvency. Moody's said the current rating assumes that the TV group's liquidity position remains reasonable and explained that it will remain to have access to its current sources of funding. There is little likelihood of ProSiebenSat.1 being required to file for bankruptcy, the rating agency adds. Nevertheless, Moody's said the bankruptcy proceedings in general may generate unexpected developments and will continue to monitor the development of the insolvency process carefully. KirchMedia currently holds 52.52% of ProSiebenSat.1's capital stock. KIRCHPAYTV: BSkyB Will Not Rescue Unit, Wants Investments Back -------------------------------------------------------------- Hopes of preventing KirchPayTV's march into liquidation were doused Wednesday after BSkyB, earlier touted as a possible savior, categorically ruled out any rescue. According to The Guardian, the British firm chaired by Rupert Murdoch wants to recoup as much of its GBP1 billion investment in the pay-TV arm. This unit owns and runs Premiere World, the subscription service that BSkyB has a standing "put option" worth over a billion euro. It has liabilities of about EUR962 million. It is not certain why BSkyB refused to salvage this Kirch unit, the declared insolvency on Monday, hours after sister company KirchMedia pioneered the move. One analyst told the British daily that BSkyB is just trying to apiece its shareholders, knowing that the future of the German media empire is far from certain. Still rumors abound that it's the company's way of getting back at the group and its creditor banks for deciding to lock out KirchMedia minority investors from a plan to create a new company out of its ruins. Earlier, the minority shareholders were reported to have earned the ire of German politicians for delaying the completion of a salvage package for KirchGruppe. The failure to finalize a plan forced the banks to bring KirchMedia to court Monday. LTU GROUP: No Longer Needs New Investor to Survive ------------------------------------------------- German charter airlines LTU Group, which almost succumbed to bankruptcy late last year, says it expects losses this year to be 15% less than previously projected. This development means that it no longer has to immediately find a new investor to assume the 49% stake owned by now bankrupt Swissair Group. Managing Director Sten Daugaard recently told journalists in Toulouse that LTU had been able to command more favorable prices than had been foreseen in its restructuring plan. He also revealed an 85% seat-occupancy in the first quarter. Days ago, Hans Reischl -- chief of retailer Rewe, LTU's largest remaining shareholder, and chairman of the LTU supervisory board -- was also quoted saying that he expects the full-year loss to come in at just EUR20 million, down from EUR150 million last year. As if to underscore its financial confidence, the carrier accepted delivery last Wednesday its first A330-200 long-haul jet. This summer, the carrier will lease 16 Airbus medium- and long-haul aircraft of the A320 and A330 types. But Mr. Daugaard says this does not mean that the company will no longer continue with its plan to streamline operations. In fact, he says, the charter airline would be withdrawing three aircraft from service for the summer season, taking its total fleet in operation down to 24. Last year, with a 27-aicraft fleet, the airline managed to generate sales revenue of EUR800 million. Mr. Daugaard sees it matching this figure in 2002 with a streamlined fleet, Handelsblatt says. Mr. Daugaard says the airline is still holding talks with ten parties that have expressed intentions to invest in the airline. However, the urgency to get onboard another partner is no longer there. LTU is looking for an investor who can inject capital of around EUR150 million. The investor, in return, can expect an annual return running into a two-digit percentage, Handelsblatt says. The Dusseldorf-based charter airline narrowly escaped bankruptcy just before Christmas after the North Rhine-Westphalian state government extended it new credit guarantees. MOBILCOM AG: Regulator to Nix France Telecom-Bank Arrangement ------------------------------------------------------------- France Telecom's headache over its German holdings is apparently far from over yet, as reports indicate that it may be forced to take over MobilCom after all. A few weeks back, the heavily indebted telecom operator heaved a sigh of relief after a consortium of banks came to its aid by buying the 49% stake of Gerhard Schmid, the feisty Mobilcom CEO with which the French firm had a long-standing row. The deal forced Mr. Schmid to step down from his post and at the same time helped France Telecom escape a full takeover of the firm, or so it thought then. The Financial Times says rumors are rife that the German stock market regulator will invalidate the deal. If this turns out true, the decision will force France Telecom to take full control of MobilCom and assume its debts. The French company has been trying to avoid a scenario that will force it to consolidate Mobilcom's EUR7.2 billion debt-pile into its already humongous EUR60.7 billion debt mountain. Thus, the convenient arrangement with the banks, which will hold the 49% stakes in the meantime. Weeks ago the arrangement looked foolproof and effectively circumvented a German law that forces any shareholder that holds more than 30% of a German company to offer a full takeover bid. According to the paper, the regulator is set to say that the banks in buying Mr. Schmid's stake were not acting independently but in the interest of France Telecom. This therefore should entitle the remaining minority shareholders to the same buy-out offer that the Schmids received and could mean that France Telecom would have to assume Mobilcom's debts, the paper says. The banks reportedly offered EUR22 for every share Mr. Schmid and his wife held in MobilCom, giving the couple a EUR720 million windfall. France Telecom has said that it is not about ready to assume any MobilCom debt as it is currently under heavy pressure from shareholders, who have criticized its resolve to tackle its burgeoning debts. In addition, Moody's had also warned a cut on its ratings should it take on the German firm's obligations. A cut would mean higher interest rates on bonds and other notes. SCHNEIDER TECHNOLOGIES: To Auction Electronics Unit, New Shares --------------------------------------------------------------- Insolvent German technology group Schneider Technologies AG will sell its consumer electronics division and auction 6.3 million new shares as part of its recovery plan, Financial Times Deutschland says. In a presentation before an insolvency court recently, the company said it will instead focus on its laser display technology. The company also hopes to raise at least EUR12 million in the share issue. According to the report, the current insolvency plan could wipe out the entire debts of the company. =========== P O L A N D =========== ELEKTRIM SA: Vivendi, BRE Take Control of Board, Present New Plan ----------------------------------------------------------------- Europe's largest media company Vivendi Universal SA and Polish investment bank BRE Bank SA have taken over the supervisory board of Elektrim SA, says Bloomberg. The shake-up in the board, whose membership was also reduced by shareholders to eight from nine, tagged along a new strategy for solving the company's worsening condition. The company is scheduled to appear in court on April 23 to present a repayment proposal. Creditors can choose to ink a deal or demand the liquidation of the company if they are not satisfied with the offer, says Bloomberg. Under the new plan, Vivendi agreed to sell its stake in Elektrim Telekomunikacja SA to Citigroup and Eastbridge. At the same time, BRE and Eastbridge said they would buy Elektrim's stake, fold it into Citigroup's holding and sell the entire package to a single buyer. Elektrim Telekomunikacja is the failed telephone venture of the group and which controls Polska Telefonia Cyfrowa Sp. Z o.o, Eastern Europe's largest mobile phone company. The group's exit from the telecom sector would reduce it to a mere power provider. However, the proceeds could also help it repay some PLN2.3 billion in debt. The group defaulted on EUR479 million bonds in December, prompting bondholders to ask a Warsaw court to declare the company bankrupt. BRE named Maciej Radziwill, Maciej Raczkiewicz, Hubert Janiszewski and Richard Opara as representatives to the board. Vivendi, on the other hand, picked Jacques Attali, Michel Ticot, Dominique Gilbert and David Syed. Shareholders will pick the board's chairman today in another general assembly. ========= S P A I N ========= QUIERO TV: In Liquidation Talks With Creditors and Suppliers ------------------------------------------------------------ Troubled digital platform Quiero TV now stands to become the latest failure in Europe's pay-television market, admitting recently that it is in liquidation talks with creditors and suppliers, the Dow Jones Newswires said Tuesday. The company's rivals include Canal Satelite Digital and Via Digital, owned by the media unit of Telefonica SA. "Quiero's results don't show any signs of changing; the market in Spain is saturated and the situation is unsustainable - the business isn't viable," a source close to the company said. He adds that Quiero is in talks to write off between 30% and 50% of its debts. The source said the company incurs losses of EUR24 million a month and has debts of around EUR312 million. Denver-based venture capital firm Anschutz Investment Co. or Telefonica stand as possible buyers for the troubled payTV group. A source close to Telefonica said it is unlikely that a bid would be offered, explaining that Quiero is debt-ridden and Spanish legislation discourages a single investor to take a stake in more than one platform. If a sale agreement is not inked by April 15, Quiero will return its license to the Ministry of Science and Technology, the source said. Auna telecom and media holding company, owned by bank Santander Central Hispano SA with a 49% stake, and utilities Union Fenosa SA and Endesa SA are companies with major interests in Quiero. ===================== S W I T Z E R L A N D ===================== SULZER MEDICA: Records US$713.5 Million Loss Due to U.S. Suit ------------------------------------------------------------- Orthopedic rehabilitation equipment manufacturer Sulzer Medica Ltd., in a statement, said that it had posted a net loss of CHF1.19 billion in 2001. The medical device company, however, said sales increased by 5.3% in 2001 to CHF1.42 billion (US$851.5 million). The huge loss result was caused by the litigation in the US in relation to the recalled and withdrawn acetabular shells and tibial baseplates. A settlement agreement worked out with patients and their attorneys was submitted to the responsible court in mid-March of 2002 and will carry with it total after-tax costs for Sulzer Medica of CHF1.07 billion (US$641.6 million). Sulzer Medica will contribute a total of US$725 million to the settlement, which totals roughly US$1 billion. The other parties participating in the settlement, Sulzer AG and Winterthur Insurance, will finance the remaining amount. The settlement agreement received preliminary approval from US District Court Judge Kathleen O'Malley on March 14, 2002. But individual patients still hold the option of opting out of the proposed settlement between April 19 and May 14. The Final Fairness Hearing, in which Judge O'Malley will rule on the appropriateness and fairness of the proposed settlement, is scheduled for May 6, 2002. The 2001 result was also hampered by extraordinary expenditures of CHF198 million. These extraordinary costs were generated by provisions taken for restructuring, value adjustments of intangible assets and for a write-downs of non-consolidated participations. In spite of the litigation in the US, sales in the Joint and Fracture Care business segment grew by 2%, when adjusted for currencies and acquisitions, to CHF855 million (US$512.7 million). Growth was particularly strong in Europe where Sulzer Medica remains the market leader. Sales of spine implants amounted to CHF176 million (US$105.5 millon), roughly at par with the previous year. Thanks to the acquisition of the Paragon company, in Carlsbad, California, the sales figure for dental implants doubled to CHF120 million (US$71.9 million). When adjusted for currencies and acquisitions the growth was 5%. Business in the Cardiovascular Prostheses Division was higher thanks to the acquisition of Minnesota-based IntraTherapeutics. Sales jumped 50% to CHF92 million (US$55.2 million). Due to the continuous shift in demand from mechanical to biological products, sales of artificial heart valves was 6% lower at CHF178 million (US$106.7 million). Sulzer Medica's business unit in this segment was restructured during 2001 and aims to regain momentum during the current business year. The first three months of the current business year were positive and the figures are substantially above those for the first quarter of 2001. Key figures for 2001 In CHF million 2001 2000 Change Net sales 1418 1347 +5.3% Research and development costs 130 108 +20.4% EBITA 100 270 -63.0% As a percent of net sales 7.1% 20.0% Net profit/loss -1193 190 Shareholders' equity on December 31* 784 1,993 -60.7% Number of staff 3,894 3,397 +14.6% * adjusted to include treasury stock =========================== U N I T E D K I N G D O M =========================== ARHTUR ANDERSEN: U.K. Partner Picks Deloitte Over Favored KPMG -------------------------------------------------------------- Deloitte & Touche has added the U.K. practice of Arthur Andersen to its growing list of foreign affiliates, foiling the plans of KPMG to preserve the global network of the troubled rival. According to The Guardian, the merger with Deloitte now awaits regulatory approval. The U.K. affiliate will start operating under the banner of Deloitte beginning July 1. "We see a strong cultural fit between the firms' partner groups, and are confident that our partners and staff will prosper under the Deloitte banner," U.K. managing partner John Ormerod told The Guardian. The acquisition of the U.K. unit follows Deloitte's takeover of Andersen's practice in Spain, Portugal and Latin America. The London office is the most profitable practice outside of the US, with nearly 500 partners and 6,500 employees. A merger with the U.K. business would have propelled KPMG to the No. 1 spot in Great Britain. Had it also snatched the entire global network, it could have also expected annual revenues of GBP12 billion. ARTHUR ANDERSEN: U.K., Indian Offices Named in Enron Class Action ----------------------------------------------------------------- A class action suit naming two foreign affiliates of Arthur Andersen has underscored the risk of liability crossing the US borders. According to The Times, a suit filed against Enron Corp. in the U.S. has named the Indian and U.K. practice as well as two high- ranking U.K. partners. Former Andersen U.K. managing partner Philip Randall and ex- Bingham office head Roman McAlindon were named in the 500-page complaint lodged in Houston. The report did not state what exactly these officials stand trial for. Last month, however, the U.S. justice department accused the London office of participating in the shredding of Enron documents and e-mails. It has blamed U.S. personnel following instructions issued in Houston. Mr. Randall is now part of Andersen Worldwide's global executive team. Mr. McAlindon, on the other hand, was promoted a year ago to take charge of Andersen's operations in Central and Eastern Europe, the Middle East, India and Africa. BRITISH TELECOM: New Strategy Tags GBP 500MM in Five Years ----------------------------------------------------------- The BT Group PLC plan to start UK's first Public Access Wireless LAN network is expected to rake in an estimated GBP500 million within five years (2004/05) or GBP180 million a year by 2004/05, a statement released by the group said Wednesday. The company plans to roll out, through its telecoms service arm subsidiary BT Retail, a nationwide wireless network in three years to provide laptop users high speed internet connection at major geographic locations. This operation, subject to approval from UK Radio Agency to operate across the 2.4 GHz radio spectrum. BT, with close cooperation with business partners Motorola Inc and Cisco Systems Inc., will set up up to 4,000 sites by June 2005. Negotiating with Costa Coffee and motorway cafe chain Welcome Break, retailers and property owners, the UK telecoms group is now initiating efforts to find the right sites. Lighting up the network will cost BT not over GBP10 million, said Pierre Danon, BT Retail CEO. BT Retail is one of the businesses that make up the BT Group. Others include BT Ignite, BT Wholesale, BTopenworld and BTexact Technologies. It is the UK's leading communications service provider and the prime channel to market for the other businesses in the Group. It records a turnover of GBP11.8 billion (in the last full financial year) and employs about 50,000. For further information, contact Elizabeth Ballard, Fishburn Hedges at telephone no. 020 7839 4321 or the BT Group Newsroom at telephone no. 020 7356 5369. CONSIGNIA: May Be Forced to Close 3,000 Post Offices ---------------------------------------------------- Consignia, with GBP200 million in government-backed funds, has sent Post Office managers details of the group's closure and modernization plan, a report obtained from This Is London said Wednesday. Amid rising competition, the postal service operator will call for the shutdown of 3,000 urban post offices to cut costs and ensure the business' continued existence, the report said. Consignia has been negotiating with the National Federation of Subpostmasters to scale down, while maintaining services in urban areas within half a mile of a branch. The government will retain the company's rural branch operations justifying the importance of the service it provides to the community. The paper's sources did not state a number of urban branch marked for closure, however, a practical range would range between 2,000 to 3,000 branches, the paper's added. State-owned Consignia's rival include Hays, Business Post Group and Dutch Group TNT Post. With the company reported to burn GBP1.5 million a day, the service company's restructuring efforts target to save GBP1.2 billion a year. CORDIANT COMMUNICATIONS: Notification of Additional Listing ----------------------------------------------------------- Troubled advertising company Cordiant Communications Group plc made an application to the Financial Services Authority for 798,115 ordinary shares of 50p each to be admitted to the official list and to the London Stock Exchange for admission to trading. It is expected that admission of the new shares will be granted on today and that admission and trading will commence on April 15, 2002. The shares are being issued by way of deferred consideration due pursuant to the terms of the acquisition of Bulletin International Limited announced on May 3, 2001. ENERGIS PLC: Gives No Comment on Bond Default Report ---------------------------------------------------- A spokesman for telecom group Energis PLC refused to comment on a newspaper report claiming that Energis will default on its bonds, sources of AFX News said Wednesday. A Wednesday issue of the Guardian newspaper said that starting Monday, investors holding Energis's GBP560 million of bonds threaten Energis to tip into liquidation as the group intends to default on GBP13.7 million interest payment. Conditions of the bond repayment provide the company a 30-day grace period to cure the non-payment. After that time, the company can be obliged to repay the principal amount of the debt. MARCONI PLC: Board Drafts New Business Plan to Weather Crisis ------------------------------------------------------------- Struggling telecom equipment maker Marconi Plc cancelled its meeting with bondholders and creditor banks Wednesday, preferring to distribute a revised business plan to both parties, instead. According to the Financial Times, Marconi's board met Tuesday to agree on a new business plan, which will be circulated to both camps of creditors for their comments. The paper says both sides will have to agree how demand for Marconi's products is likely to develop over the next few years, whether further costs need to be cut, and what the profit potential of the business is. In addition, they also have to agree how much debt the business should support. Once these issues are sorted out, they will then have to come to terms on how much debt they will swap for equity of the company, which will see them holding the reigns at the expense of shareholders. The paper says a critical issue in future negotiations between the two creditor-blocks is how much of Marconi's GBP1 billion cash-pile needs to remain within the business to continue operations and how much can be returned to creditors. Failure to strike a middle ground could force bank to call their loans and thereby put the company into receivership, the paper says. An agreement inked weeks ago has placed these loans in "on demand" status, which means banks can demand payment anytime. As this develops, the paper says it does not expect any solution to Marconi's woes for weeks. Meanwhile, reports have surfaced that a group of leading bondholders has appointed Greenhill, the investment bank, as financial adviser. Bingham Dana, the law firm, is advising the group. The banks led by Barclays Capital and HSBC, on the other hand, have retained PwC and Lazard as advisers. PHARMING GROUP: Will Be Delisted From Nasdaq Europe --------------------------------------------------- Biotechnology and research company Pharming Group N.V. will delist its shares from Nasdaq Europe effective May 10, 2002, a company statement said Wednesday. The company's shares will subsequently be traded only on the Euronext trading platform. The Nasdaq Europe delisting will enable the company to reduce expenses and achieve profitability as soon as possible. Shareholders will not have to take any action to transfer shares nor will they incur any additional costs as a result of the delisting. Shareholders will be able to continue trading shares of the company on the Euronext trading platform, where the majority of Pharming shares are currently traded. With regards to financial reporting and company management practices, the company will comply with Dutch regulations as well as Euronext Amsterdam rules, including on issuance of quarterly financial statements. The company's financial accounts will be prepared in accordance with IAS. Pharming filed for legal moratorium or suspension of payment in August 2001. Pharming received legal moratorium status based on a decision by the District Court in The Hague. The legal moratorium provides protection from creditors of Pharming for a limited time period and allows for the continuation of key operations and clinical programs of the company. In December 2001, the district court in The Hague granted a final legal moratorium for Pharming Group and its remaining Dutch subsidiaries until July 2002. Pharming intends to restructure its current assets and operations as well as raise additional capital to continue its mission to develop innovative biopharmaceuticals. Pharming Group N.V. focuses on the development, production and commercialization of human therapeutic proteins to be used in highly innovative therapies. The company's product portfolio is aimed at treatments for genetic disorders, blood-related disorders, infectious and inflammatory diseases, tissue and bone damage, and surgical and traumatic bleeding. Pharming's proprietary technologies include the production of biopharmaceuticals in the milk of transgenic animals, as well as the purification of biopharmaceuticals from milk, formulation and application of these biopharmaceuticals. Additional information may be obtained by contacting Rein Strijker of Pharming Group N.V. at telephone number: +31 (0)71 524 7406 *********** 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, Larri-Nil Veloso 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 US$575 per half-year, delivered via e-mail. 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