/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020424.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 Wednesday, April 24, 2002, Vol. 3, No. 80 Headlines * G E R M A N Y * EKABEL HESSEN: S&P Cuts Ratings to "CCC" Due to Imminent Default GONTARD & METALLBANK: Needs EUR 25MM-backer to Stay Afloat PHILIPP HOLZMANN: Heijmans Joins List of Potential Buyers PREMIERE WORLD: Close to Filing Insolvency Petition, Say Sources UFA-FILMTHEATER: Braces for Funding Gap With No Help Coming * I R E L A N D * ELAN CORPORATION: Announces Webcast of First Quarter 2002 * L U X E M B O U R G * GRAPES COMMUNICATIONS: Bankruptcy Plan May Be Approved by May 22 GRAPES COMMUNICATIONS: Company Profile * N E T H E R L A N D S * KPN NV: Plans Replacement of EuroWeb Board With Own People * S W E D E N * ARTHUR ANDERSEN: Deloitte Gets Swedish, Dutch and Danish Offices LM ERICSSON: Records SEK 5.4BB Q1 Losses on 26% Lower Sales LM ERICSSON: Bares New 17,000 Redundancies Spread Over Two Years * S W I T Z E R L A N D * SWISSAIR GROUP: PAM Will Pay US$ 244.5MM for Nuance ZURICH FINANCIAL: Hueppi Resigns CEO Post, Admits 'Errors' * U N I T E D K I N G D O M * ANTISOMA PLC: Company Share Option Plan Grants BARINGS BANK: PWC Auditors to Escape Punishment for 1995 Collapse ENERGIS PLC: Initial Offers Way Short GBP 1BB, Sources Say ITV DIGITAL: Administrator Begins Peddling Troubled Channel ITV DIGITAL: Expert Tells Carlton, Granada to Abandon Ship MARCONI PLC: Partner to Slash 700 Workers in Liverpool, Coventry NTL INCORPORATED: Bondholders to Sell to Malone at Par Value Only RAILTRACK PLC: Banks Demand Adequate Guarantees for GBP 9BB Loan RAILTRACK PLC: Shareholders Group Spurns Settlement, to Sue Byers SSL INTERNATIONAL: Notification of Major Interests in Shares SSL INTERNATIONAL: Notification of Major Interests in Shares SMARTLOGIK GROUP: Company Profile ============= G E R M A N Y ============= EKABEL HESSEN: S&P Cuts Ratings to "CCC" Due to Imminent Default ---------------------------------------------------------------- Standard & Poor's doubt the ability of eKabel Hessen GmbH to avoid a likely default next year, forcing it to lower the long- term corporate credit ratings of the German cable firm recently. The agency cut the said ratings to "CCC" from "B" and placed them on "CreditWatch" with a negative outlook. The debt ratings of the companies have also been lowered, Total Telecom says. In a statement, Leandro de Torres Zabala, a director of Standard & Poor's Corporate Ratings Europe said that there is a "clear and present danger of default" at eKabel within the next year. Mr. Zabala said "the downgrade reflects an increasing near-term liquidity risk for eKabel as time elapses and the headroom under bank covenants continues to be very tight, particularly in the first quarter of 2003." The industry paper says the downgrade affected around EUR1.4 billion (US$1.3 billion) of debt instruments, of which EUR677 million are presently outstanding. GONTARD & METALLBANK: Needs EUR 25MM-backer to Stay Afloat ---------------------------------------------------------- Ailing German private bank Gontard & Metallbank announced recently that it is looking for a buyer for a third of its equity that could also lend about EUR25 million. The bank admitted Friday that it needed an additional bad loan provision of around EUR25 million due to the recent German corporate failures and the continuing market decline. Among the insolvent companies that the bank is heavily exposed to are software firm Heyde, media company In-Motion, and computer- games developer Phenomedia, Handelsblatt says. The bank says a capital increase of EUR24.6 million would get it back on course. "We are aiming by the middle of this year to find a major investor who will back the capital measure," a spokesman for Gontard & Metallbank told the German daily. By covering the planned capital increase, a new investor will gain just under one third of the bank's capital. "But a majority investment is also seen as a possibility," the spokesman said. Gontard & Metallbank's current major shareholder, investment firm Gold-Zack AG, which is itself in financial difficulties, has already announced that it plans to reduce its shareholding. It currently holds a 45% stake in the bank, the report says. Gontard & Metallbank was created in 1999 through the merger of private banks Heinrich Gontard & Co AG and Metallbank. This is not the first time that the company ran into trouble. The company found itself in a tight financial squeeze at the end of last year when it emerged that the EUR50 million losses for the past business year were twice as high as expected. At the time, the company carried out a EUR15.3 million capital increase. After solid figures in the first quarter of the current business year, CEO Lothar Mark forecast a return to profit during the course of 2002, the paper says. The risk provisions, however, is expected to impact fully on the bank's second-quarter results, the spokesman told Handelsblatt. For information, contact Dr. Stefanie Knetsch-Hack, Investor Relations, at telephone +49 (69) 71908-203 or Patrick Kiss at telephone +49 (69) 71908-206 or via e-mail at info@gmag.de PHILIPP HOLZMANN: Heijmans Joins List of Potential Buyers --------------------------------------------------------- Dutch construction firm Heijmans NV is looking to buy part of Philipp Holzmann's operations in Germany, Netherlands and neighboring countries, says The Deal.com. The online newspaper says the group has not disclosed which particular asset of the insolvent construction icon it is looking to snatch. The report says the Dutch firm has recently figured in two failed acquisition tries and is looking to finally seal a deal with Holzmann. Heijmans joined with Dutch dredging company Boskalis NV last year in an effort to jointly acquire The Netherlands-based Hollandsche Beton Groep NV or HBG, but the bid was eventually abandoned, and Spain's Grupo Dragados SA bought the company, the report says. In February, Heijmans also gave up its ambition to take over German builder Martin Wurzel Baugesllschaft mbH, the paper says. The Dutch construction firm reported sales of nearly EUR2.3 billion in 2001, a 46% increase over the previous year. It aims for EUR2.25 billion in sales by 2003. With main operations located in Netherlands and Belgium, Heijmans is active in the residential, office building, transport and industrial markets, the paper says. Heijmans joins a queue of buyers that have lined up since the 152-year-old German company declared insolvency last month. Interested parties include Germany's Hochtief AG, Bilfinger Berger AG, Strabag AG and Thyssen Krupp Serv, the technical services unit of industrial group Thyssen AG. Administrator Otmar Hermann has repeatedly said that he is willing to sell parts of the company even before the start of formal insolvency proceedings. In Germany, these proceedings start only three months after the filing of the insolvency petition. Interim administrators are given the interstice to figure out what to do with the company, which usually boils down to two choices: liquidating the company or maintaining it as a going concern. PREMIERE WORLD: Close to Filing Insolvency Petition, Say Sources ----------------------------------------------------------------- Efforts to avoid an insolvency filing for Premiere World have failed to achieve anything and sources close to the situation say a rescue is increasingly far-fetched. Unnamed individuals privy to key negotiations told AFX News recently that an insolvency declaration is forthcoming. Accordingly, talks with News Corporation have moved slowly and there are signs it could be broken up. Reports surfaced over the weekend that the BSkyB majority owner was allegedly planning to inject money into the struggling pay-TV unit of KirchGruppe in exchange for taking full control of the channel. At present, it controls just 22% of the company. Sources say an insolvency petition could be filed in a couple of weeks. UFA-FILMTHEATER: Braces for Funding Gap With No Help Coming ----------------------------------------------------------- Germany's third-largest cinema operator Ufa-Filmtheater GmbH & Co is in danger of slipping further to insolvency as its finances reveals an ebbing gap, says Handelsblatt. Accordingly, a funding gap of EUR3-4.25 million will develop in the coming months. The report says the company has held discussions with main shareholders Apax and Pricoa, but neither has so far committed a thing. It appears that both are not prepared to further fund the company. The company has also sought the help of HypoVereinsbank, but banking insiders told Handelsblatt that this option does not look promising. ============= I R E L A N D ============= ELAN CORPORATION: Announces Webcast of First Quarter 2002 --------------------------------------------------------- Elan Corporation Plc said Monday the pharmaceutical manufacturing group will report first quarter 2002 financial results on May 2, 2002, before the financial markets open. The announcement will be followed by a conference call at 8:30 a.m. Eastern Time with the investment community, and feature members of Elan's Senior Management Team. Live audio of the conference call will be simultaneously broadcast over the Internet and will be available to members of the news media, investors and the general public. The conference call is expected to last approximately one hour. This event can be accessed through Elan's website http://www.elan.comand by clicking on the Investor Relations section, then on the event icon. The event will be archived and available for replay for 48 hours after the event. Elan Corporation Plc is a leading worldwide, fully integrated biopharmaceutical company headquartered in Ireland, with its principal research, development, manufacturing and marketing facilities located in Ireland and the United States. Elan is focused on the marketing of therapeutic products and services in neurology, pain management, oncology, infectious disease and dermatology and on the development and commercialization of products using its extensive range of proprietary drug delivery technologies. Elan shares trade on the New York, London and Dublin Stock Exchanges. Contacts: Investors: (U.S.) Jack Howarth Telephone: 212-407-5740 800-252-3526 Investors: (Europe) Emer Reynolds Telephone: 353-1-709-4000 00800 28352600 =================== L U X E M B O U R G =================== GRAPES COMMUNICATIONS: Bankruptcy Plan May Be Approved by May 22 ---------------------------------------------------------------- Luxembourg-based telecom services provider Grapes Communications NV/SA is expected to have an easy time going through bankruptcy proceedings. According to The Deal.com, the company's pre-packaged bankruptcy plan could be approved as early as May 22. The plan was filed with the U.S. Bankruptcy Court of the Southern District of New York on April 16, when the firm petitioned for Chapter 11 creditor protection. The paper says the pre-pack plan outlines payment of EUR46.5 million in cash to holders of EUR200 million worth of 13.5% senior notes. This is equivalent to EUR232 per EUR1,000 face value of the notes. The company had earlier attempted to buy these notes during an out-of-court try at restructuring its debts. The deal never reached first base because the company received only a 76% acceptance rate for the offer and not the 95% minimum requirement. The cash that will be paid to the noteholders will come from a EUR39 million escrow account and a EUR7 million segregated account set up in connection with a renegotiation of the notes with J.P. Morgan Chase & Co., its largest creditor, the paper says. "Grapes doesn't have debtor-in-possession financing, but it has lined up EUR10 million in post-bankruptcy financing from ING Barings Ltd. Grapes shareholders and new investors have committed to making a new EUR1.2 million equity investment," the paper says. The company will repay this EUR10 million loan at an annual interest rate of 12% or Euribor plus 800 basis points. ING will also get a 6% pay-in-kind note. The company's shareholders include an affiliate of private equity firm Warburg Pincus. Grapes blames its bankruptcy on capital expenditures for a network build-out. Losses in 2000 for Grapes totaled EUR135.6 million. In 2001, the losses increased to EUR234.8 million. Grapes listed total assets as EUR251.09 million and debts as EUR308.1 million. Before the bankruptcy filing, Grapes' holding company used a part of EUR68.5 million from asset sales to pay down senior debt, the paper says. GRAPES COMMUNICATIONS: Company Profile -------------------------------------- Name: Grapes Communications N.V./S.A. 202 Val des Bon Malades Ground Floor Number 3, L-2121 Luxembourg aka Grapes Communications NV aka Mediterranean Telecommunications BV aka Mediterranean Telecommunications N.V. aka Medtel Phone: +39 06 6618 6507 (Italy) Website: http://www.grapesnet.com/ SIC: Telecommunications Services Employees: 305 (September 2000) Net Loss: EUR234.8 million (six months ending June 30, 2001) Total Assets: EUR251.1 million (2001) Total Debts: EUR308.1 million (2001) Type of Business: Based in Luxemborg and incorporated in the Netherlands, Grapes Communications provides services to businesses in Italy and Greece. Grapes offers business users fixed line telephones, call centers, data transmission, Internet access, system integration, networks and e-commerce. Operating over 40 local offices, Grapes runs an extensive direct commercial/ technical network of all the alternative operators. Trigger Event: Since October 2001, Grapes launched a tender offer to purchase its EUR200,000,000 13.5% Senior Notes due 2010, with a final offer to bondholders of 23.2% of the face value of bonds in cash. More than 76% of bondholders by principal amount accepted the tender offer but, since the minimum rate of acceptances of 95% was not achieved, the Company decided to file a petition for confirmation of a pre- packaged Chapter 11 plan of reorganization. Deputy Chairman and CEO: Massimo Trippetti Treasurer: Ludo Bijvoet Board Chairman: Fabiano Fabiani Financial Adviser: ING Barings Law Firm: James L. Garrity, Jr., Esq. Shearman & Sterling 599 Lexington Avenue New York, NY 10022 Phone: (212) 848-4879 Fax : (646) 848-4879 No. of Shares in Issue: 651.8 million (as of June 30, 2001) ===================== N E T H E R L A N D S ===================== KPN NV: Plans Replacement of EuroWeb Board With Own People ---------------------------------------------------------- Royal KPN NV is set to wield its power at EuroWeb International Corporation by removing three of the current seven directors of the company's board and replacing them with its own people. In a recent filing with the Securities and Exchange Commission, EuroWeb said the board's size will also be reset to five. The Dutch company says it has the power to impose its will without the approval of the other shareholders as it controls 52% of the company. KPN is seeking to remove Frank R. Cohen, Robert Genova and Gerald Yellin. Cohen also serves as chairman, while Genova is president and chief executive, Dow Jones Newswires says. The telecoms operator will then back the election of Csaba Toro, Roelant Lyppens, Robert van Vliet and Stuart P. Reich as their replacements during the EuroWeb's annual meeting on May 28. The fifth member of the board will be Robert Volkman, an accountant and son of Jerome Volkman, a EuroWeb director until his death in February, the filing said. EuroWeb is a Hungarian communications company that provides Internet services in Hungary. =========== S W E D E N =========== ARTHUR ANDERSEN: Deloitte Gets Swedish, Dutch and Danish Offices ---------------------------------------------------------------- What it couldn't get in one package, Deloitte & Touche has done piece by piece. The No. 2 accounting firm, which backed off from advance merger talks with Arthur Andersen last month, has once more annexed ex- affiliates of the troubled rival. The company announced early this week the defections of the Swedish, Dutch and Danish units of Andersen to its local practices in said countries. The acquisition of the office in Sweden positions Deloitte as the No. 4 accounting firm in the country, with a market share of 20%. Both units will have a combined staff of 1,300 in said practice. In Netherlands, Deloitte will end up with nearly 8,000 staff as a result of the merger. It is expected to take a leading role in Denmark as well, the Financial Times says. Meanwhile, the paper says KPMG has allegedly given up plans of taking over the global network of Andersen after realizing that there is really nothing left to annex, with most of the major practices now with the rival camps. LM ERICSSON: Records SEK 5.4BB Q1 Losses on 26% Lower Sales ----------------------------------------------------------- Ericsson confirmed Monday the grim projections of analysts last week for the Swedish mobile equipment group with the disclosure of "worse-than-expected" first quarter figures. The company reported a jump of pre-tax losses to SEK5.4 billion from SEK4.9 billion last year due to the 26% dive of sales that leveled only at SEK37 billion in the first quarter. Because of this the group appealed to shareholders to extend the company a SEK30 billion lifeline to help it weather the storm brought by the technology slump. According to The Times, the company plans to complete a rights issue by September to shore up its balance sheet until it could return to profit, hopefully by next year. CEO Kurt Hellstrom says the company will use some of the proceeds to pay down a chunk of its SEK25 billion debt mountain. The only positive note in Monday's disclosure is the performance of Ericsson's mobile handset division. The company said the unit shipped 5.8 million mobile phones in the first quarter, better than many analysts had hoped for. This performance runs in contrast with the recent report of rival Nokia, which forecast a negative outlook for the handset market this year. Meanwhile, the company says it aims to slash SEK40 billion from its operating costs over the next 18 months. One way of realizing this is to cut 20,000 more jobs by the end of next year. This means trimming down the total workforce to 65,000 by December 2003. The company had 107,000 employees at end of last year. LM ERICSSON: Bares New 17,000 Redundancies Spread Over Two Years ---------------------------------------------------------------- Ericsson, the struggling telecom equipment maker that revealed earier this week a GBP248 million net loss in the first quarter, will cut 17,000 more jobs to counter the poor performance, says the Telegraph. The company plans to shed 7,000 workers this year, while the balance will go next year. President and chief executive Kurt Hellstrom said the group should return to profit "at some point" in 2003. The company projects a gloomy 2002, with the mobile systems market expected to dip by more than 10% this year, compared to previous estimates of zero to 10%. The company has already cut 22,000 jobs during its last round of chopping. ===================== S W I T Z E R L A N D ===================== SWISSAIR GROUP: PAM Will Pay US$ 244.5MM for Nuance --------------------------------------------------- The Italian Italian retail distribution company Gruppo PAM SpA will pay about CHF405 million (US$244.5 million) to acquire Swissair Group AG's airport shop unit Nuance Group, Stefanel SpA said. Stefanel, Italian clothing manufacturer, has an option to buy a 50% stake in Nuance at the same price as PAM. The Italian clothing group said the price remain negotiable. The transaction is expected to be concluded within six months, AFX News said Monday. According to the paper, Stefanel disclosed it also holds a two- month option to purchase up to 50% stake in Noel International SA, the vehicle used to purchase Nuance. ZURICH FINANCIAL: Hueppi Resigns CEO Post, Admits 'Errors' ---------------------------------------------------------- Embattled Zurich Financial Services CEO and Chairman Rolf Hueppi surprised the markets Friday with his resignation, a move earlier expected to happen by mid-year yet. Mr. Hueppi says he made the decision to step down on his own and admitted fault in some of his decisions. "I certainly made errors (over the years). Not so much in the business, but certainly in the external communication. I failed to draw the attention on Zurich's future in time at the end of 2000," AFX News quoted Mr. Hueppi as saying. "I suppose the board, which was also criticized, is relieved. But I took the decision on my own," he said. Early this year, Mr. Hueppi said he will resign his CEO position by the middle of the year, once a successor has been appointed. He declined to comment on potential successors, their nationality and whether appointments might be made at the May 16 annual general meeting. Mr. Hueppi held the CEO post since 1988. =========================== U N I T E D K I N G D O M =========================== ANTISOMA PLC: Company Share Option Plan Grants ---------------------------------------------- On April 16, Antisoma Plc, the drug research and development company, granted on options over ordinary shares of 1 pence each to the following directors and senior executives at an exercise price of 20.7 pence per share. Director Number of shares under option Glyn Edwards 855,827 Raymond Spencer 388,887 Tony Whitehead 431,336 Bart Wuurman 225,938 Nigel Courtenay-Luck 342,330 Antisoma also granted options over a total of 1,302,483 shares to other employees at an exercise price of 20.7 pence. Options will normally become exercisable at any time after the third anniversary of the date of grant, subject to fulfillment of certain performance and other conditions. Contact further details regarding this disclosure, contact: Raymond Spencer: Chief Financial Officer, Antisoma plc; telephone no. +44 (0)20 8799 8200. BARINGS BANK: PWC Auditors to Escape Punishment for 1995 Collapse ----------------------------------------------------------------- Andrew Turner and Gareth Davies, the auditors implicated for the 1995 collapse of Barings Bank will not lose their licenses as earlier speculated, reports The Times. Citing unnamed sources, the paper says accounting watchdog Joint Disciplinary Scheme will not impose the severest penalty on the duo, when it publish its findings early next month. JDS executive counsel Chris Dickson filed the complaint against the two and their firm Coopers & Lybrand in 1998. The findings never came to public view after PricewaterhouseCoopers, the firm that emerged out of the combination of Coopers & Lybrand and Price Waterhouse, appealed the watchdog's decision. The appeal is thought to have focused on the fine imposed by the accounting regulator and statements made in its final report. According to The Times, PricewaterhouseCoopers is now believed to be satisfied with results, which will drop complaints against Mr. Turner. The size of any fine to be paid by the firm remains unknown, the paper says. Barings bank collapsed under debts of GBP830 million. A case against Deloitte Touche Tohmatsu, Barings' auditor in Singapore, will go to court next month, the paper says. ENERGIS PLC: Initial Offers Way Short GBP 1BB, Sources Say ---------------------------------------------------------- Sources privy to the Energis bidding say offers from potential buyers have failed to reach the GBP1 billion ceiling the company had set as a benchmark for the core U.K. business. The insiders told Reuters Monday that the five bids so far tabled by the company only range between GBP700 million and GBP850 million. Deadline for the submission of offers is Friday. "The sort of offers to expect would be in the middle rather than the top of the range," one source told Reuters, referring to a previously estimated range of GBP600 million to GBP1 billion. The news agency says GBP850 million would only cover the group's debt and bonds, thus a higher bid that include a premium would be needed to clinch a deal. Five months ago the company was worth more than GBP1.7 billion. The low bids reflects the failure of bondholders' attempt to pressure potential buyers into upping their offer. Led by Credit Suisse First Boston, bondholders recently offered its own refinancing deal that would involve a debt-for-equity swap. CSFB's willingness to take on the debt-laden company was seen as a calculated move to put pressure on private equity bidders to sweeten offers. But fears over the firm's health and its rising debts have stifled hopes for a fevered auction, sources told Reuters. ITV DIGITAL: Administrator Begins Peddling Troubled Channel ----------------------------------------------------------- Deloitte & Touche, the administrator of near-bankrupt ITV Digital has put up the "for sale" sign, after it failed to reach a compromise with the English Football League over the weekend. The accounting firm told the Financial Times early this week that it has now sought from the U.K. commercial TV regulator, Independent Television Commission, an "accelerated process leading to a sale as a going concern." Deloitte says it would make further announcements on Thursday. It says, in the meantime, services to its 1.25 million subscribers will continue uninterrupted. According to speculations, there are a few venture capitalists that are seen to be considering the troubled digital network. Ongoing costs, though, is expected to deter some of them from making a final offer. If a sale cannot be secured soon, the next step will be to liquidate the channel. ITV DIGITAL: Expert Tells Carlton, Granada to Abandon Ship ---------------------------------------------------------- Carlton and Granada could end up overtaken by BBC in the advertising market if the media group set to merge later this year won't abandon its losing ITV Digital venture. Zenith Media, one of U.K.'s leading advertising experts, says BBC is fast eating up at ITV's lead as the number one channel for advertisers since 1955. In its regular Zenith on TV report, the expert pointed out that ITV Digital is fast becoming a liability for the co-owners, who could end up becoming less important to advertisers. Zenith says advertisers could turn to commercial channels such as Channel 4, Channel 5 and Sky One for their outlet. "ITV Digital was a new economy money pit, which ITV had to fill while its old economy business was slumping. This was a rare misfortune," Zenith was quoted as saying by The Guardian. The paper says BBC overtook ITV in the ratings for the first time last year due to programs such as "The Blue Planet" and the Friday editions of "EastEnders." "BBC1 is turning last year's fluke into this year's habit, beating ITV1's all-time share 25.3% to 24.9% in the first quarter," Zenith said in its report. "And in peak, ITV's lead over the other commercial channels is closing fast. A year ago, ITV's peak share was 37% to 27% (for other commercial channels). Now it is 32% to 31%. "'Managing decline' is usually dismissed as defeatist talk," Zenith said, "but this is decline all right and if ITV doesn't manage it, the BBC will." The expert urged Carlton and Granada to concentrate their efforts on their main advertiser-funding business in order to arrest the decline, the report says. MARCONI PLC: Partner to Slash 700 Workers in Liverpool, Coventry ---------------------------------------------------------------- An outsourcing partner of Marconi Plc is set to shed 700 jobs, underscoring the dire condition of the debt-laden telecom equipment maker. The Financial Times says the job cuts will affect the former Marconi plants in Liverpool and Coventry. Last year, the company transferred about 1,600 full and part-time manufacturing jobs in the two cities to Jabil Circuit as part of an outsourcing deal to cut its direct costs. The Liverpool plant primarily produces products for British Telecom. The job cuts here indicate the steep fall in demand from Marconi's largest customer. About 475 jobs would be lost at this city, where Jabil's Edge Lane plant would close, the paper says. The Coventry plant will also be affected by the job losses. Tom Keogh of the trade union Amicus-MSF told the paper that there would be 220 job losses there. Jabil assumed 600 staff from Marconi in the West Midlands city when it initially won the manufacturing contract, and employees had reported healthy volumes of business. About 70 jobs will go from a Jabil facility at Marconi's main Coventry base, New Century Park, the paper learned. Roger Jeary, also of Amicus, says the job losses represent about two-thirds of the remaining former Marconi employees employed by Jabil. "The scale of the job losses is in excess of what we were expecting. Demand has been only about a quarter of what Jabil had been expecting at the time of the transfer last year," he says. NTL INCORPORATED: Bondholders to Sell to Malone at Par Value Only ----------------------------------------------------------------- If John Malone and his Liberty Media are planning to buy NTL bonds cheaply, they are in for a big surprise. According to The Deal.com, bondholders will only sell at full price, with a premium to boot. "Bondholders have had the chance to do thorough due diligence on the [NTL] business and now know what it's worth," a source close to the bondholders told the paper. "They know that US$10.6 million is a fair enterprise value for the business, and they know that Malone wants to buy it on the cheap...If Malone wants to pay full value and is prepared to offer a premium, the bondholders will gladly take the money," the source added. It is not known how much Mr. Malone will actually offer to bondholders, as he hasn't commented yet on reports that he had recently solicited the support of NTL CEO Barclay Knapp for a plan to secure 30% of the restructured cable firm. But many speculate that Mr. Malone will not be willing to pay the full price of the bonds, let alone offer a premium since he's known for buying assets of distressed cable companies cheaply. Prominent for his savvy dealmaking, Mr. Malone built his media empire through acquisitions of struggling cable operators, which he paid low prices. He currently holds a 25% stake in the Telewest Communications Plc, the other gasping cable firm in the U.K. RAILTRACK PLC: Banks Demand Adequate Guarantees for GBP 9BB Loan ---------------------------------------------------------------- Banks invited to take part in financing a GBP9 billion bridge loan to Network Rail has temporarily rejected the offer due to the inadequacy of guarantees, reports The Times. The banks, among them UBS Warburg, Barclays Capital, HSBC and WestLB, blamed the hazy language of the "term sheet" for their momentary refusal to participate in the transaction. Accordingly, the "term sheet" of the proposed loan, which was drafted by Network Rail Deputy Chairman Adrian Montague, is currently regarded as more like a letter of comfort than a guarantee. Mr. Montague has admitted that the loan would not be supported by any government guarantees but by a standby facility from the Strategic Rail Authority, the paper says. The government vehicle that is set to take over Railtrack says it has already rewritten the terms, which will now include "contractually binding obligations" from the SRA to cover the loan. Network Rail is going to use the loan to cover Railtrack's debt and short-term working capital until it is out of administration. RAILTRACK PLC: Shareholders Group Spurns Settlement, to Sue Byers ----------------------------------------------------------------- Railtrack Private Shareholders Action Group doesn't want any part of the GBP500 million-settlement offer by Network Rail that will help the troubled firm exit administration early. David Greene, head of litigation at Edwin Coe, which represents the shareholders' group, says they will sue Transport Secretary Stephen Byers even if the settlement goes through. He told the Telegraph early this week that the group will soon go to court to request pre-action disclosure of documents relating to Mr. Byers' decision to put Railtrack into administration. "Whatever the company agrees, individual shareholders retain their individual rights," Mr. Greene told the paper. He says a QC for the group will be named Thursday. Action group Chairman Andrew Chalklen says his association is "sufficiently funded" to pursue this suit against the minister. He says the group has already raised GBP400,000 from collecting joining fees of GBP20 per shareholder. He says 230,000 more private investors are still being convinced to join their crusade. The group maintains that the present settlement offer is not enough. They are seeking full repayment of the 380p they paid for each share before they were suspended following Mr. Byers decision to put the company into administration. The Network Rail settlement will only value their shares at 250p apiece, says the Telegraph. Mr. Chalklen says Railtrack was being "sold in a fire sale," adding: "We feel very strongly that the Government has done wrong and it's got to recompense people properly." Stephen Alexander of Class Law, however, says the suit could face an uphill climb and would cost the action group a fortune. "It could cost GBP2 million to GBP3 million and the Government will try to starve them out. They will use every trick in the book," Mr. Alexander told the Telegraph. "Remember, you have to pay the other side's costs if you lose and all members are jointly and severally liable. They would be on the hook for every penny," he said. SSL INTERNATIONAL: Notification of Major Interests in Shares ------------------------------------------------------------ SSL International plc, manufacturer of Durex brand of condoms, declares that, CGNU plc, on behalf of its affiliates, holds a total of 9,059,642 10p ordinary shares of stock issued or an equivalent of 4.79% of the outstanding shares issued by SSL. CGNU summarizes the interests of its affiliates as follows: BNY Norwich Union Nominees Ltd 3,301,727 BT Globenet Nominees Ltd 7,600 Chase GA Group Nominees Ltd 1,974,669 CUIM Nominee Ltd 3,775,646 Contact J. BOOTH, at telephone no. 01565 624000, for more details regarding this announcement. SSL INTERNATIONAL: Notification of Major Interests in Shares ------------------------------------------------------------ SSL International announces that FMR Corporation and its direct and indirect subsidiaries and Fidelity International Ltd, as of April 18, holds a total of 22,085,779 10p ordinary shares or a total equivalent of 11.67% of the total shares issued by SSL. FMR Corporation and Fidelity summarizes the interest in shares on behalf of its affiliates as follows: HSBC FMRCO 1,023,900 STATE STREET NOMINEES LTD FMTC 13,300 DEUTSCHE BANK FMTC 344,300 BROWN BROTHERS HARRISON FMTC 8,100 ' ' ' ' FMTC 8,220 CHASE NOMINEES LTD FISL 6,858,779 NORTRUST NOMINEES LTD FPM 25,638 CHASE NOMINEES LTD FIL 441,849 BANK OF NEW YORK LONDON FIL 45,750 CITIBANK FIL 115,524 BANKERS TRUST FIL 158,585 MSS NOMINEES LTD FIL 12,697,312 HSBC CLIENT HOLDINGS NOMINEE (UK) LTD FIL 344,522 SMARTLOGIK GROUP: Company Profile --------------------------------- Name: Smartlogik Group PLC The Communications Building 48 Leicester Square London WC2H 7DB, United Kingdom Phone: (020) 7930 6900 Fax: (020) 7925 7700 http://www.smartlogik.com SIC: Computer Software Developer Employees: 465 (Quarter End: June 2001) Net Loss: US$14.8 million (Quarter End: June 2001) Total Assets: US$13.8 million (Quarter End: June 2001) Total Liabilities: US$13.6 million (Quarter End: June 2001) Type of Business: Smartlogik Group plc, formerly known as Bright Station plc, provides web consultancy services, owning the rights to InfoSort (now Muscat Discovery) automatic indexing and Muscat probabilistic search technologies. The company also markets office products through OfficeShopper and applies Internet solutions to commerce operations through Sparza. Trigger Event: Smartlogik's value slid to a record low after admitting the business may be forced into administration by the end of April. The company tried to negotiate to either sell itself to a private software provider or sell its assets. With about 10 days before funding runs out, Smartlogik has not closed either deal. The company, in a statement, said that if neither of its negotiations will be completed by April 30, the group will be forced to appoint an administrator. Chairman: David Jefferies Chief Executive Officer: Stephen Hill Chief Financial Officer: Simon Canham Bankers: Royal Bank of Scotland Stockbrokers: Hoare Govett Ltd Auditors: PricewaterhouseCoopers Law Firms: Mishcon de Reya, Theodore Goddard Financial PR Advisers: Hogarth No. of Shares in Issue: 467.2 million Date Last Published: April 23, 2002 *********** 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *