/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020506.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, May 06, 2002, Vol. 3, No. 88 Headlines * F I N L A N D * SONERA CORPORATION: Sonera Gateway Concludes Deal With Nordea * G E R M A N Y * DEUTSCHE TELEKOM: T-Mobile Picks Nortel to Deliver UMTS PIXELPARK AG: New CFO for Online Consultancy Business * H U N G A R Y * PHILOS ENTERTAINMENT: Could Go Bust If It Misses Another Deadline * I R E L A N D * ELAN CORPORATION: Ends Silence, Outlines Turnaround Plan ELAN CORPORATION: Fivefold Rise in Investment Losses Impacts Q1 * I T A L Y * ALITALIA: Eyes June for Completion of Real Estate Property Sale FILA HOLDINGS: Announces First-Quarter 2002 Results * N E T H E R L A N D S * UNITED PAN-EUROPE: Court Sets Hearing on Priority Suit * S P A I N * QUIRO TV: Needs EUR 200MM to Pay Workers, Suppliers * S W E D E N * ICON MEDIALAB: Stockholm Unit Files for Bankruptcy * U N I T E D K I N G D O M * BRITANNIC PLC: Dangles Hefty Incentives for Fund Management Staff COLT TELECOM: Announces Results for Q1 2002 CONSIGNIA: Government to Replace Chief Executive John Roberts CORDIANT COMMUNICATIONS: Notification of Interests ENERGIS PLC: Acquires Full Ownership of MetroHoldings Limited EQUITABLE LIFE: Ex-directors in Suit Got Fat Payout Prior to Exit EQUITABLE LIFE: Chairman, Chief to Receive GBP525,000 Bonus EQUITABLE LIFE: Directors' Insurance Won't Satisfy Claim INVENSYS PLC: Completes Flow Control Business Disposal ITV DIGITAL: ITV Chief Steps Down Following Channel's Debacle ITV DIGITAL: Sends Home 1,000 Staff in Pembroke Dock Call Center MARCHPOLE HOLDINGS: To Sell London Head Office for GBP 4.7MM NTL INCORPORATED: Gets Nod on Recapitalization Plan NTL INCORPORATED: Law Firm Begins Fraud Suit in N.Y., U.S. NTL INCORPORATED: Brian Felgoise Files Fraud Suit in N.Y., U.S. SIRIUS FINANCE: Suffers Downgrade on A, B, C Notes From Fitch TELECITY PLC: Notification of Director's Interests TELEWEST COMMUNICATIONS: Cuts 1,500 Jobs Despite Good Q1 Results TELEWEST COMMUNICATIONS: Announces 1st Quarter Results 2002 UK COAL: Notification of Interests in Shares ============= F I N L A N D ============= SONERA CORPORATION: Sonera Gateway Concludes Deal With Nordea ------------------------------------------------------------- Sonera Corporation sells Sonera Gateway Ltd's (Sonera 100%) financing business to Nordea Rahoitus Suomi Oy. The deal and agreement do not include Sonera(R)Gateway, the electronic purchase service system developed by Sonera Gateway Ltd. The system will continue to be developed further, utilizing the cooperation now generated. Leasing property worth about EUR115 million and the related lease agreements will transfer to Nordea Rahoitus Suomi Oy in the deal. The closing of the transaction is subject to the approval of the competition authorities. The sale is expected to be completed by the end of the second quarter of 2002. Sonera will use the proceeds from the deal to strengthen its financial position. With the deal, 15 Sonera Gateway Ltd employees transfer to the employ of Nordea Rahoitus Suomi Oy, retaining seniority. The deal will not affect the service provided to Sonera Gateway Ltd's financial customers. "The cooperation with Nordea Rahoitus Suomi Oy is a great opportunity to Sonera. For example, it will facilitate developing financing services for our internationally operating customer companies in the future", says Timo Paju, Managing Director of Sonera Gateway Ltd. Sonera Gateway Ltd was founded on July 1, 1996 as PT Credit to support Sonera's business by vendor financing. The customers have included both large companies and SMEs. In addition to vendor financing, Sonera Gateway Ltd has focused on developing Sonera (R)Gateway, an electronic transaction service. In 2001, Sonera Gateway Ltd's revenues amounted to EUR 58.8 million. Sonera Corporation is a leading provider of mobile and advanced telecommunications services. Sonera is growing as an operator, as well as a provider of transaction and content services in Finland and in selected international markets. The company also offers advanced data solutions to businesses, and fixed network voice services in Finland and neighboring markets. In 2001, Sonera's revenues totaled EUR 2.2 billion, and profit before extraordinary items and taxes was EUR 0.45 billion. Sonera employs about 9,000 people. www.sonera.com Nordea is the leading financial services group in the Nordic and Baltic Sea region and operates through four business areas: Retail Banking, Corporate and Institutional Banking, Asset Management & Life, and General Insurance. The Nordea Group has nearly 11 million customers, 1,245 bank branches and 125 insurance service centers in 22 countries. The Nordea Group is a world leader in Internet Banking, with almost 3 million e-customers. The Nordea share is listed in Stockholm, Helsinki and Copenhagen. Contact Information: Sonera Corporation: Esko Rytkonen, Senior Vice President, Corporate Finance Tel. +358 2040 58632 Email: esko.rytkonen@sonera.com Sonera Gateway Ltd: Timo Paju, Managing Director, Sonera Gateway Ltd Tel. +358 2040 66883 Email: timo.paju@sonera.com ============= G E R M A N Y ============= DEUTSCHE TELEKOM: T-Mobile Picks Nortel to Deliver UMTS ------------------------------------------------------- T-Mobile International, one of the leading mobile communication operators worldwide, has selected Nortel Networks to supply infrastructure equipment and services for rollout of its UMTS networks in Europe -- scheduled to begin in the second half of 2002 -- under a 10-year frame agreement announced today. "The selection of Nortel Networks is another major step toward our European UMTS network," said Hamid Akhavan, chief technology officer, European Operations, T-Mobile International. "We are looking forward to working with strong allies like Nortel Networks in building the foundation for attractive and innovative 3G services for our customers." "Operators continue to seek our expertise in packet core and CDMA access to help them build Pan-European solutions for delivery of 3G wireless services under aggressive rollout schedules," said Pascal Debon, president, Wireless Networks, Nortel Networks. "We are a premier wireless data player, and our strong heritage in building data and CDMA networks makes us ideally suited to deliver new wireless technologies like UMTS." The T-Mobile International award continues Nortel Networks momentum in the global market for wireless infrastructure. Nortel Networks has recently announced: a two-year, estimated US$150 million CDMA2000 1X 3G award from Israel's Pelephone; an agreement with Orange subsidiary Dutchtone for GSM and GPRS equipment and services in The Netherlands; selection by mm02 (subject to execution of definitive agreements) to supply 2.5G and 3G equipment and services across its networks in the UK, Germany, Ireland and The Netherlands; an estimated US$250 million UMTS agreement with Telefonica for Germany and Spain; and an estimated US$500 million award from Cingular Wireless for GSM and GPRS equipment in the United States. Nortel Networks UMTS solution is built on Nortel Networks Passport 15000 UMTS-SGSN, Nortel Networks Shasta GGSN, Internet radio base transceiver stations (BTS) and Internet radio network controllers. T-Mobile International, one of Deutsche Telekom AG's four strategic divisions, is one of the world's leading international mobile communications providers. Deutsche Telekom subsidiaries and affiliated companies today serve more than 68 million mobile customers worldwide. T-Mobile is the first transatlantic mobile communications provider utilizing the digital GSM wireless technology standard. For more information about T-Mobile International, please visit www.t-mobile.com Nortel Networks is an industry leader and innovator focused on transforming how the world communicates and exchanges information. The company is supplying its service provider and enterprise customers with communications technology and infrastructure to enable value-added IP data, voice and multimedia services spanning Metro and Enterprise Networks, Wireless Networks and Optical Long Haul Networks. As a global company, Nortel Networks does business in more than 150 countries. More information about Nortel Networks can be found on the Web at www.nortelnetworks.com. Contact Information: Nortel Networks Will Cairns, +44 1628 438 031 wcairns@nortelnetworks Sabine Werb, +49 69 6697 1906 sabine.werb@nortelnetworks.com Jay Barta, 972/685-2381 jbarta@nortelnetworks.com Business media: David Chamberlin, 972/685-4648 ddchamb@nortelnetworks.com Tina Warren, 905/863-4702 tinawarr@nortelnetworks.com PIXELPARK AG: New CFO for Online Consultancy Business ----------------------------------------------------- Annette Koch, CFO of Pixelpark AG since April 2001, has decided to step down from her position on the Board at the start of her maternity leave. Once her maternity leave and parental period has ended she will not be returning to the company. This agreement was reached with the full understanding of all parties. With immediate effect Paulus Neef will become the head of Pixelpark AG as sole director. With effect from May 1, 2002 Henning Ronneberg will be taking over the duties of CFO. Until moving to Pixelpark, Henning Ronneberg, born in 1969, had been Vice President Chief Financial Officer of BOL.com AG since 2001 where he held full responsibility for the corporate areas of Finance, Controlling and Law as a member of the Company Management. Having graduated in economics and engineering he began his professional career in 1996 at Bertelsmann AG in Gutersloh where he held various senior roles. As such, from 1999 he made a key contribution to the structuring and development of the corporate concept and strategy of BOL.com AG up to the time it was successfully integrated into Bertelsmann's Club businesses. Pixelpark has been generating losses since 1999. The company specializes in online advertising, consultancy, systems integration and Web development. The group has a workforce of about 967. ============= H U N G A R Y ============= PHILOS ENTERTAINMENT: Could Go Bust If It Misses Another Deadline ----------------------------------------------------------------- Hungarian computer game developer Philos Entertainment risks folding up this year if it still fails to release two 3D software games, which were originally scheduled to hit the market in December. According to Budapest Business Journal, the company lost the bulk of its revenues last year as a result of the delay, and consequently, a failure this year could cause its demise. The company has now targeted this year's Christmas season for the release of Imperium Galactica III and Escape from Alcatraz. The two games are expected to be big hits in major markets like Germany, U.S. and Japan. The company has received a US$1.5 million loan from ABN Amro (Hungary) Kft to help clear the hump. "The delay was due to technical problems and we just didn't want these games to enter the market half-done," explained Zsolt Vamosi, managing director of Philos. The company first gained headway into the PC game market with the game "Theocracy," which debuted in March 2000. That game became a major success both in Hungary and abroad. ============= I R E L A N D ============= ELAN CORPORATION: Ends Silence, Outlines Turnaround Plan -------------------------------------------------------- Irish pharmaceutical firm Elan Corporation will sell US$1 billion worth of assets this year as part of its strategy to reverse its fortune, reports the Telegraph. The company also said it will decrease the complexity of its balance sheet, which is currently under investigation by the U.S. Securities and Exchange Commission. Executive Vice-president Tom Lynch also told the paper that the company has sought authority to buy back shares, although it has yet to decide whether to take this option. The company's share has now lost 75% in value. The slump was triggered by its well-publicized problems with an Alzheimer drug and the controversy surrounding its many joint ventures, which some say are rags used to hide the company's liabilities. ELAN CORPORATION: Fivefold Rise in Investment Losses Impacts Q1 --------------------------------------------------------------- Net income of Irish pharmaceutical firm Elan Corporation slipped 34% in the first quarter to US$50 million primarily due to investment losses, which rose fivefold from US$2.8 million to US$17.7 million. According to the Financial Times, the poor performance missed the US$87 million forecast for the company. Operating income also fell 32% to US$78.9 million, despite product revenues of US$330.4 million. News of the poor results dragged the company's share in trading late last week. The company's stock value has now shed 75% since the opening of the year. It previously stood as high as EUR52. ========= I T A L Y ========= ALITALIA: Eyes June for Completion of Real Estate Property Sale --------------------------------------------------------------- Struggling Italian airline Alitalia expects to complete the sale of its headquarters in La Magliana, near Rome by June. It also selling, along with the head office, 11.5 hectares of land near Fiumicino airport, says Sole 24 Ore/FT Information. The company did not say how much the properties will fetch. Lazard, which is advising the carrier on the sale, say five real estate groups are interested in the property: American Continental Property, Investimenti Immobiliari Lombardi, Peabody Global Real Estate, SEI of the Italian electricity group ENEL and IPI of the Fiat group. FILA HOLDINGS: Announces First-Quarter 2002 Results --------------------------------------------------- Fila(a) Holding S.p.A. today reported its unaudited results for the first quarter ending March 31, 2002. Key highlights for the quarter were the following: -- Worldwide revenues were Euro 258.7 million, in line with the same quarter of 2001. -- SG&A incidence on total net revenues is 35.4% compared to 39.8% in first quarter 2001 -- Income from operations was positive for the first time since first quarter 2000. -- Further improvement in the US backlog (up 26% in US$), whereas the trend in Europe is still negative. -- Net loss of Euro 31.6 million includes Euro 18 million of foreign exchange losses in Argentina. -- Major achievements in working capital management. Backlog of customer orders(b) Total backlog as of March 31, 2002, scheduled for delivery from April through September 2002, was down by 4% (in Euro) compared to the corresponding period in 2001. In particular, apparel and footwear backlog decreased by 2% and by 6%, respectively. U.S. backlog increased by 26% in U.S. dollars (with apparel up by 19% and footwear up by 33%), continuing to improve from the backlog recorded as of December 31, 2001, which was itself up by 19%. The Enyce brand is up by 27% and the Fila Brand is up by 25%. Outside the U.S. and excluding the markets where Fila sells its products on a delivery basis (including Korea), backlog decreased by 23% (in Euro). Worldwide revenues for the first quarter were Euro 258.7 million, in line with Euro 259.0 million in the corresponding period of 2001. Net direct sales in the first quarter of 2002 totaled Euro 249.4 million compared to Euro 251.9 million in the corresponding period of 2001. Apparel sales were Euro 135.0 million and footwear sales were Euro 114.4 million, up by 2% and down 4% respectively compared with the first quarter of 2001. Sales in the U.S. were EUR85.6 million in the quarter, increasing by 22% from EUR69.9 million mainly thanks to Enyce (+56%); in Europe sales decreased by 18% to EUR91.3 million. Sales in the Rest of the World increased by 3%, as the excellent performance in Korea (+25% in local currency in the quarter) offset the drop in Latin America (particularly in Argentina, due to the recent economic crisis). Royalty Income in the quarter was EUR6.4 million compared with EUR5.9 million in the first quarter of 2001. In U.S. dollars, first quarter net loss was U.S.$ 27.7 million compared with a net loss of U.S.$ 19.1 million in the first quarter of 2001. On a per ADS/per ordinary share basis, net loss was U.S. $0.45 per ADS/share in the first quarter of 2002 compared with U.S. $0.69 per ADS/share in the same period of 2001. The decrease in loss per ADS/share in the first quarter of 2002 reflects the issuance of additional shares in the third quarter of 2001. The shares outstanding for the three months ended March 31, 2002 and 2001 were 61,110,412 and 27,777,460 respectively. The Euro depreciated by 5% against the U.S. dollar on a quarterly average basis; the average exchange rate was Euro 1= U.S.$ 0.876 in the first quarter of 2002 and Euro 1= U.S.$ 0.923 in the corresponding quarter of 2001. Gross profit for the quarter was EUR93.9 million, representing 36.3% of total net revenues, compared to EUR96.3 million (37.2% of total net revenues) in the first quarter of 2001. The lower profitability was caused primarily by the weakening of the brand in Europe and by the change over from a direct sales strategy to a licensing partnership in certain markets and the consequent inventory clearance. SG&A expenses for the quarter totaled EUR91.7 million (representing 35.4% of net revenues), down by 11% versus EUR103.1 million (or 39.8% of net revenues) in the previous year. Marco Isaia, Chief Executive Officer of Fila, said: "I'm pleased to report that, despite the uncertainties, we have been able to streamline structures and focus on a tight control over costs, reducing all of the various items of SG&A expenses, resulting in SG&A as a percentage of total net revenues that is to the lowest level since the third quarter of 2000". As a consequence of the above mentioned factors, income from operations in the quarter was EUR2.2 million compared with an operating loss of EUR6.8 million in the first quarter of 2001. Unfortunately other expenses for the quarter were EUR29.4 million compared with EUR10.5 million for the corresponding quarter of last year; EUR18 million were attributable to foreign exchange differences recorded in Argentina that was not possible to hedge due to government restrictions. Loss before income taxes in the first quarter of 2002 was EUR27.3 million compared with EUR17.3 million in the same quarter of 2001. Income taxes were EUR4.4 million compared with EUR3.4 million in the corresponding quarter of 2001, with most of the increase related to Korea for the higher income taxes as well as for withholding taxes on current year intra-group dividends. Net loss for the quarter was EUR31.6 million compared with EUR20.7 million in the first quarter of 2001. Net working capital as of March 31, 2002 was EUR288.9 million compared with EUR401.2 million as of March 31, 2001 (a 28% decrease). Inventory as of March 31, 2002 was EUR200.7 million, compared with EUR235.0 million as of December 31, 2001 and with EUR230.2 million as of March 31, 2001. Trade receivables as of March 31, 2002 were EUR228.4 million compared with EUR265.2 million in the prior year. Net financial indebtedness as of March 31, 2002 was EUR370.3 million compared with EUR496.6 as of March 31, 2001 and EUR359.8 as of December 31, 2001. Marco Isaia added: "We have achieved improvement in every component of the net working capital, from inventory to trade receivables, with a total reduction of EUR112 million. This has allowed us to keep the net financial position under control despite the unfavorable seasonality, with a decrease of EUR126 million at March 2002 versus March 2001 (against a decrease of EUR67 million at December 2001 versus December 2000)." Fila Holding S.p.A., headquartered in Biella (Italy), is a leading designer and marketer of athletic and casual footwear and of activewear, casualwear and sportswear. Fila has created strong brand recognition by marketing products with a high design and style content and by securing professional athletic endorsements. (a) Any reference to Fila is to Fila Holding S.p.A. and its subsidiaries. (b) Backlog of customer orders is not necessarily indicative of total revenues for the respective periods, as the mix of future and "at once" orders may vary significantly from quarter to quarter and certain customer orders are cancelable. FILA GROUP'S NET DIRECT SALES (Euro) FIRST QUARTER ended March 31 (unaudited) Euro million 2002 2001 UNITED STATES Apparel 42.2 39.4 +7% Footwear 43.4 30.5 +42% Total 85.6 69.9 +22% EUROPE Apparel 44.3 52.4 -16% Footwear 47.1 59.4 -21% Total 91.3 111.8 -18% REST OF WORLD Apparel 48.6 40.2 +21% Footwear 24.0 29.9 -20% Total 72.5 70.1 +3% TOTAL FILA GROUP Apparel 135.0 132.1 +2% Footwear 114.4 119.8 -4% Total 249.4 251.9 -1% Figures may not add due to rounding. BALANCE SHEET SUMMARY Euro million March 31, 2002 March 31, 2001 (unaudited) (unaudited) Trade receivables 228.4 265.2 Inventories 200.7 230.2 Other current assets 87.0 93.0 Accounts payable (227.2) (187.2) Working Capital(a) 288.9 401.2 Net fixed and non current assets 161.2 169.8 TOTAL NET ASSETS 450.2 570.9 Net Financial Position(b) 370.3 496.6 Provision and Other Liabilities 17.2 17.2 Shareholders' Equity 62.6 57.1 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 450.2 570.9 (a) Excluding cash and short term loans. (b) Short term and long term financial indebtedness less cash. Figures may not add due to rounding. KEY FIGURES IN U.S. DOLLARS for the first quarter ended March 31, 2002. FIRST QUARTER ended March 31 (unaudited) 2002 2001 Net Revenues (U.S.$/million) 226.6 239.1 Net Loss (U.S.$/million) (27.7) (19.1) Net Loss per ADS(a) (0.45) (0.69) (U.S.$/ADS) Number of ADSs outstanding: 61,110,412 27,777,460 Average exchange rate 0.876 0.923 (U.S. dollars per Euro) (a) Losses per ADS were calculated by dividing Net Loss by the number of ADSs outstanding during the period (each ADS representing 1 ordinary share). FILA HOLDING S.p.A. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) FOR THE THREE MONTHS ENDED MARCH 31, 2002 2001 (in thousands of Euro, except for earnings per share) Net revenues: Net direct sales 249,430 251,908 Royalty income 6,376 5,934 Other revenues 2,894 1,166 --------- --------- 258,700 259,008 Cost of sales 164,809 162,718 Gross profit 93,891 96,290 Selling, general and administrative expenses 91,701 103,060 Income (loss) from operations 2,190 (6,770) Other income (expense): Interest income 405 1,022 Interest expense (6,215) (8,170) Foreign exchange losses (18,651) (1,144) Other expense - net (4,993) (2,195) --------- --------- (29,454) (10,487) Loss before income taxes (27,264) (17,257) Income taxes 4,363 3,409 Net loss (31,627) (20,666) Loss per share(1) -0.52 -0.74 (1) Earnings per share have been calculated by dividing netloss by 61,110,412 and 27,777,460 ordinary shares outstanding for the three months ended March 31, 2002 and 2001 respectively. Contact Information: Fila Holding S.p.A. Investor Relations Office: Giulia Muzio (39.015) 3506 418 Elena Carrera (39.015) 3506 246 or Citigate Dewe Rogerson Serena Vento, 212/419-8329 ===================== N E T H E R L A N D S ===================== UNITED PAN-EUROPE: Court Sets Hearing on Priority Suit ------------------------------------------------------ A Dutch civil court has set a May 15 hearing date on a lawsuit by U.S. shareholders of Priority Telecom, N.V., against United Pan- European Communications, alleging that UPC, the controlling shareholder, engaged in a sham initial public offering of Priority shares on the Amsterdam stock exchange. Under the terms of UPC's acquisition of Cignal Global Communications, a U.S. company based in Cambridge, Massachusetts, investors received shares of Priority Telecom with the promise that Priority would complete an initial public offering by October 1, 2001 or former Cignal investors would be paid US$200 million. On September 27, 2001, UPC listed Priority shares on the Amsterdam exchange, claiming it had satisfied its obligation. Mark Land, a Priority shareholder and former chief technology officer of Cignal, said, "Even the Amsterdam exchange agrees that UPC engaged in a technical introductory listing of Priority shares and not an IPO." As a further clarification to the shareholder suit, a number of remedies may be available to the shareholders in the future, including a direct award by the court, possible grant of a lien on, or other interest in, UPC assets, or other measures. The shareholders are not currently seeking a lien on UPC assets. For further information, contact: Mark Land (U.S.) Telephone: +1-561-998-3008 Robert L. Guenther (U.S.) Telephone: +1-617-951-0000 ========= S P A I N ========= QUIRO TV: Needs EUR 200MM to Pay Workers, Suppliers --------------------------------------------------- Spanish pay-channel Quiero TV faces a EUR200 million bill once it is taken off the air. The bill represents its liabilities to workers and suppliers, El Pais/FT Information said last week. The report says the amount is expected to increase the longer the channel stays on air. The pay-TV, however, is still obligated to continue broadcasting to its 94,000 subscribers to fulfill its advertising contracts. Two weeks ago, shareholders voted to liquidate the channel after two loss-making years. The liquidation process will take a while to complete due to bureaucracy, says the report. =========== S W E D E N =========== ICON MEDIALAB: Stockholm Unit Files for Bankruptcy -------------------------------------------------- Icon Medialab International AB has taken further steps to reach operational profitability by mid-2002. Following its earlier announcement to exit its operations in Malmo and Gothenburg, the company today decided to cease the funding of its operations in Stockholm and France. The consequence of this decision is that the subsidiary in Stockholm, Icon Medialab AB, has filed for bankruptcy. This was a very difficult decision considering the history and importance of Stockholm to IconMedialab. However, a thorough assessment of the performance of the Stockholm operation during the past weeks has made the Board of the company conclude that the financial situation of the operation is not strong enough to make further funding worthwhile. IconMedialab will continue to maintain a strong presence in the Nordic region. Our operations in both Finland and Denmark have the quality of management and professional staff to provide services to their respective clients. These offices together with the entire IconMedialab organisation are well capitalised and positioned to grow in the IT services industry. "While we consider the Swedish marketplace to be important to us, our current operation there and the weakened economic environment make it impossible for us to continue in our current state. As we want to reach operational profitability by mid-2002 for the whole company, it is currently not an option to continue to invest heavily in locations that we believe will not perform in the short term", says Robert Pickering, CEO of IconMedialab. The company wants to stress that other markets it designated as key areas last week, can continue to count on the commitment of the parent company. "We have now completed our round of assessments and re-assessments. We continue to believe in our strategy of offering an international network to our clients. We have every confidence that these actions will bring us to our financial goals", Pickering explained. IconMedialab International AB, the parent company of IconMedialab and Lost Boys, will continue to maintain its listing on the Swedish stock exchange and will keep its administrative office in Stockholm. IconMedialab and Lost Boys merged in January 2002 to become one of the world-leading IT professional service providers. The group operates with approximately 900 employees in 10 countries throughout Europe and the US. The group provides user-driven solutions through innovative technology for all digital channels - with a global reach and local expertise. The company's stock is traded on the Stockholm Stock Exchange O-list (ICON). For more information, visit the following Web sites: www.iconmedialab.com and www.lostboys.com Contact Information: Jesper Jos Olsson, Board Member + 46 70 437 9002 Robert Pickering, CEO, + 46 8 5889 8918 Kathryn Adamson, Corporate Communications kathryn.adamson@lostboys.com, +46 70 375 9020 =========================== U N I T E D K I N G D O M =========================== BRITANNIC PLC: Dangles Hefty Incentives for Fund Management Staff ----------------------------------------------------------------- Britannic Plc is doing all it can to arrest the growing number of staff leaving its fund management unit, which is believed to be its best asset and ticket to a successful sale of the entire business. According to the Telegraph, the life and pensions group has offered 50 employees at the Britannic Asset Management bonuses of up to GBP40,000 to keep them from transferring to other outfits. The incentives represent an additional 40% of the employees' basic salaries and are due to be paid on March 31 next year. Industry sources say the basic salaries are likely to be between GBP40,000 and GBP100,000 a year. In March, the company admitted that it lacked scale and needed a business partner. Market observers say the asset management operation is the "jewel in the crown in the sale of Britannic." "Britannic is not attractive to a buyer without its fund managers but this is an amazing golden carrot being waved in front of them," one source told the Telegraph. Since 1990, Britannic Asset Management has grown from an operation with GBP200 million of funds to a full-fledged fund manager with nearly GBP18 billion under management. Last year, it signed up GBP75 million in new business and analysts say it could be worth GBP250 million to GBP400 million if sold separately. The entire business, on the other hand, is expected to command GBP1.6 billion if sold in one piece. Dutch financial services group Aegon, GE Capital, mutual insurer Royal London, Royal Bank of Canada and Dutch investment institution Robeco are allegedly eyeing the company. COLT TELECOM: Announces Results for Q1 2002 ------------------------------------------- Commenting on the results, COLT Telecom Group Chairman Jim Curvey said: "Turnover and EBITDA were better than expectations. Turnover increased by 18% to GBP246.8 million and EBITDA increased by 111% to GBP9.8 million compared to the first quarter of 2001 and by 3% and 38%, respectively, compared to the fourth quarter. "We continued to see good demand for our services from corporate customers. Turnover from retail customers increased by 37% to GBP134.9 million over the first quarter of last year and by 6% over the fourth quarter. However, as indicated on previous occasions the wholesale bandwidth market remains weak. "During the quarter we bought back approximately GBP75 million of debt securities resulting in an exceptional gain of GBP38.4 million. Our results also included a provision of GBP12.3 million with respect to the estimated cost of the staff reduction program announced at the time of our fourth quarter results. "Capital expenditure during the quarter decreased to GBP139.1 million compared with GBP192.1 million and GBP219.1 million in the first and fourth quarters of 2001, reflecting the completion of the major construction phase of our network infrastructure. At quarter end we had cash and cash equivalents of GBP1.2 billion. Peter Manning, COLT's President and Chief Executive Officer added: "Customer confidence in COLT remains high as demonstrated by our ability to win new customers as well as win new orders from our current customers. At the end of the quarter we had 11,593 directly connected network services customers and 1,628 eBusiness customers, increases of 52% and 93%, respectively, over the position at the end of the first quarter last year. There were 8,206 buildings connected to our networks at quarter end, an increase of 30% over the position at March 31, 2001. "We are encouraged by the number and size of orders from both new and current customers. The most significant contract win was being picked as a primary contractor to provide service to Transport for London. This is a minimum GBP15 million deal for COLT and the partnership will span at least five years. Other important network services business was won with Universal Music, Bloomberg, Deutsche Bank, Banques Populaires, Group Exane and Pernod Ricard Europe. In particular, we continue to be successful in winning new business in the governmental and air transport sectors, recent customers include the United Nations International Fund for Agricultural Development, the Italian local government body Regione Piemonte and Switzerland's air traffic control administration, Skyguide. COLT has also recently won a major contract to provide high bandwidth services to the Belgian government as part of its e-government project. "A major customer success for eBusiness was the Berlin Stock Exchange with a new order for hosting services worth over ?1 million per year. Among other significant new business wins for eBusiness was the Jean Paul Gaultier organisation. "We are particularly encouraged by the progress we are making in winning new IPVPN business and now have over 300 IPVPN customers and serve over 1,500 sites across Europe. We are also making significant headway in the provision of services over DSL and at the end of the quarter had approximately 5,000 DSL lines in service. "Average switched revenue per minute increased by 11% over the fourth quarter of 2001, reflecting a significant improvement in mix with demand for switched voice and data services from higher margin corporate customers being particularly strong. Switched minutes carried during the quarter increased to 5.3 billion, an increase of 15% over the first quarter of 2001. "Non-switched network services continue to be influenced by the weakness in the wholesale bandwidth market. Nonetheless, we added a further 441,000 private wire VGEs during the quarter bringing the total to 15.8 million, an increase of 54% over the position at the end of the first quarter last year. "ebusiness revenues increased by 84% to GBP13.1 million compared to the first quarter of 2001. A further 164 customer racks were added during the quarter bringing the total to 2,376, an increase of 56% over the position at the end of the first quarter of 2001. "We have implemented our new organisation structure and have reduced staff numbers by 105 and temporary/contract workers by 124 during the quarter as part of our programme to reduce headcount by approximately 500 during 2002." HIGHLIGHTS FOR THE QUARTER Turnover up 18% to GBP246.8 million EBITDA up 111% to GBP9.8 million Bond buy back gain of GBP38.4 million Cash and cash equivalents of GBP1.2 billion Directly connected network customers up 52% to 11,593 eBusiness customers up 93% to 1,628 Staff numbers down by 229 including 124 temporary/contract workers Please refer to: http://bankrupt.com/misc/q1_2002_results.pdffor a full version of Invensys' first quarter results ending March 31, 2002. CONSIGNIA: Government to Replace Chief Executive John Roberts ------------------------------------------------------------- Consignia CEO John Roberts will step down as soon as a replacement is found, after the government last week decided it had enough of the mess at the state-owned post office. Finance Director Marisa Cassoni is allegedly the top candidate to replace Mr. Roberts, according to the Financial Times. Ms. Cassoni is allegedly well liked by Allan Leighton, who was hired recently to shakeup the firm. She is a former finance director at Britannic Assurance. Mr. Roberts vacates his post at Consignia after seven years. His stint with the postal service dates back to 1967. His days were numbered when he unwittingly announced 30,000 redundancies without consulting the unions. He also received flak for spending GBP500,000 to change the name of the company to Consignia. "I think there is a need for entrepreneurial leadership at the top of Consignia. John's civil service-style approach is not what the new organization will require," Martin O'Neill, Labour chairman of the trade and industry select committee, was quoted by the Financial Times as saying last week. Meanwhile, the planned strike for May 8 was called off by the Communication Workers Union after reaching a deal with Consignia that settled a pay dispute. The union settled for a 2.2% pay rise backdated to October 2001 and a further 2.3% from this October. CORDIANT COMMUNICATIONS: Notification of Interests -------------------------------------------------- London-based advertising holding company Cordiant Communications Group plc, announced Wednesday that financial services group CGNU plc, on behalf of its subsidiary, holds a total of 40,758,26 ordinary shares or about 10.04% of the outstanding shares issued by Cordiant. Names of shareholders and the corresponding number of shares are summarized as follows: Morley Fund Management Limited (a subsidiary of CGNU plc) REGISTERED HOLDERS NUMBER OF SHARES HELD BNY Norwich Union Nominees Ltd 12,705,420 (Material) Chase GA Group Nominees Ltd 11,686,604 (Material) CUIM Nominee Ltd 12,704,199 (Material) RBSTB Nominees Ltd 362,860 (Material) Hibernian Investment Managers Ltd 24,019 (Material) Chase Nominees Ltd 435,607 Credit Agricole Indosuez 100,000 CUIM Nominee Ltd 275,225 HSBC Global Custody Nominee UK Ltd 11,734 Nortrust Nominees Ltd 634,358 Vidacos Nominees Ltd 1,808,937 CGU Insurance plc 9,300 For further information, contact Rebecca Taylor at telephone 020 7479 0519. ENERGIS PLC: Acquires Full Ownership of MetroHoldings Limited ------------------------------------------------------------- Energis, the London-based internet service provider, announced Wednesday that it has acquired from France Telecom their 50% stake in MetroHoldings Limited (MHL), in lieu of a put option held by France Telecom. Energis now owns 100% of MHL. The consideration for the 50% stake is GBP8.95 million cash, representing half MHL's GBP17.9 million net asset value as at 31 December 2001. The consideration is payable over eight months, with GBP1 million payable immediately upon closing and a further GBP1 million per month payable until December 2002. The acquisition is a discrete part of the restructuring of Energis and is not indicative of the success or otherwise of the Group's overall restructuring. In the year ended December 31, 2001, MHL had revenues of approximately GBP3.7 million, EBITDA of approximately GBP1.5 million and profit after tax of approximately GBP0.25 million. MHL was established in April 1998 as a joint venture company between Energis (50 %), Deutsche Telekom AG (25 %) and France Telecom (25 %) to build metropolitan area networks (MANs) in major UK cities. France Telecom purchased Deutsche Telecom's stake in May 2000. Since MHL commenced operations it has completed the construction of 5 MANs in the City of London, Manchester, Birmingham, Leeds and Bristol. Outside of MHL, Energis has constructed its own networks in Edinburgh, Glasgow, Bracknell, Reading, Basingstoke and the West End of London. For more information, contact: Energis Christine Holgate + 44 (0) 20 7206 5555 Gavin Partington Nick Benson Citigate Dewe Rogerson + 44 (0) 20 7638 9571 Anthony Carlisle + 44 (0) 7973 611888 EQUITABLE LIFE: Ex-directors in Suit Got Fat Payout Prior to Exit ----------------------------------------------------------------- In a stunning revelation, troubled insurer Equitable Life bared last week it had upgraded the pension benefits of several of the 15 ex-directors it recently sued just before they left the society. According to the Telegraph, David Thomas received the highest increase and will be receiving GBP119,000 in pension benefits a year. His pension was enhanced by more than GBP353,000 before he resigned in August. Annuity experts told the Telegraph that it would require a fund of about GBP1.4 million to generate such retirement benefits for a typical 65-year-old married man. Mr. Thomas, who served the mutual between 1989 and 2001, also received GBP150,000 for four months after agreeing to defer his retirement from April to August, the report says. The paper also said that nine others received a total of GBP350,000 last year in wages and benefits. Christopher Headdon, another former executive director who retired in March last year, will receive pension benefits of GBP95,000 a year from the age of 55. An Equitable spokesman, however, clarified that "the amounts paid to former directors were amounts they were contractually entitled to; these were set by the previous board." Nonetheless, the payouts appear outrageous in the midst of an ongoing request by policyholders for compensation after losing a ton following the insurer's near collapse. The society's with-profits fund shrunk by more than a quarter to GBP18.6 billion in the past year, knocking GBP7.2 billion off its value, the report says. EQUITABLE LIFE: Chairman, Chief to Receive GBP525,000 Bonus ----------------------------------------------------------- Equitable Life's chairman and chief executive are in line to receive bonuses totaling GBP525,000 despite recording a record loss in value and a near-collapse last year. The Financial Times says Chairman Vanni Treves, who took the reins in February last year, may be paid a bonus of GBP250,000, on top of his GBP58,750 remuneration. CEO Charles Thomson, on the other hand, could receive as much as GBP275,000 and a remuneration package of GBP347,758 for his work from March to December last year. The duo orchestrated the controversial compromise deal with policyholders, which capped the liability to guaranteed annuity policies at GBP1.1 billion. The deal was unanimously approved in January. As expected, policyholders, who are currently mulling a suit against the mutual and government for compensation, deplored the payout. "We totally disapprove of any bonuses being paid when members have lost so much of their policy values," Paul Braithwaite, chairman of the Equitable Members' Action Group, told the Financial Times. In July last year, Equitable reduced the value of the pension funds of its 1 million customers by 16%. EQUITABLE LIFE: Directors' Insurance Won't Satisfy Claim -------------------------------------------------------- Equitable Life will have to go after the assets of the 15 ex- directors it sued recently if it wants to collect a substantial part of its GBP3 billion claim. The Financial Times learned last week that the directors named in the suit only had an aggregate insurance policy of GBP5 million. The policy was underwritten by Royal & Sun Alliance, which has denied that claims against the directors would be covered by its policy. The insurer argues that the claim relates to an alleged failure of judgment over their handling of insurance contracts, which falls outside the terms of the policy, the paper says. The good news, however, is David Wilson, one of the 15, is worth GBP320 million, mainly due to his stake in Wilson Bowden, a family construction company. He served as a non-executive from 1994 to 1999. The rest of the pack has only modest means. The directors being sued all served on Equitable's board for periods before the summer of 2000 when the mutual lost a legal battle in the House of Lords over its controversial stance on guaranteed annuity policies. At present, the directors are considering going to arbitration. Equitable has alleged that they failed to recognize there was a serious legal question over whether the mutual could offer different terminal bonuses on guaranteed annuity policies. INVENSYS PLC: Completes Flow Control Business Disposal ------------------------------------------------------ Invensys plc, the global leader in the management of production and energy resources, today completed disposal of its Flow Control business to Flowserve Corporation, a leading provider of industrial flow management services, for a cash consideration of US$535 million. The sale proceeds will be used by Invensys to reduce its level of indebtedness. The transaction has completed in line with our best timing expectations for May. Contracts were exchanged on March 22, 2002 and as previously forecast, revenues and PBIT for the twelve months ending March 31, 2002, are estimated at around US$520 million and US$65 million respectively. Net assets which are the subject of the transaction are approximately US$330 million. Goodwill written off to reserves relating to acquisitions made over the last 25 years for the Flow Control business amounts to approximately US$130 million. The sale of Flow Control is consistent with Invensys' previously stated objectives to divest non-core assets as part of its overall plan to improve capital strength and increase strategic focus. Invensys plc, is an international production technology and energy management group, specializing in helping companies improve efficiency, performance and profitability. Invensys is headquartered in London, England. The Production Management businesses of Invensys work closely with customers in order to drive up performance of other companies' production assets and maximize the return on investments in product technologies. The division includes Foxboro, Wonderware, Triconex, APV, Eurotherm and Baan and it addresses the oil, gas and chemicals; food beverage and personal healthcare; and discrete and hybrid manufacturing sectors. The Energy Management businesses of Invensys actively work with clients involved in both the supply and consumption of energy, developing systems using innovative technologies that improve the reliability and security of power supplies. The division includes Energy Solutions, Metering Systems, Appliance, Home and Climate Controls and Power Systems and focuses on markets connected with power and energy infrastructure and commercial and residential buildings. Invensys Flow Control is manufacturer of valves, actuators and associated flow control products, including steam systems, with manufacturing facilities throughout the Americas, Europe and Asia. Invensys Flow Control is widely recognized for its high quality engineered solutions and range of industry leading brands, which include Edward, Limitorque, PMV, Argus and McCanna, among others. The Company's core customer base consists of businesses in a multitude of markets, including Oil and Gas, Chemical and Petrochemical, Power Generation, Process industries and Equipment manufacturers and engineering firms Flowserve Corp. is one of the world's leading providers of industrial flow management services. Operating in 30 countries, the company produces engineered pumps for the process industries, precision mechanical seals, automated and manual quarter-turn valves, control valves and valve actuators, and provides a range of related flow management services. The Company had fiscal 2001 revenues in excess of US$1.9 billion. Contact: Jane Hurley Tel: +44(0) 20 7821 3538 Invensys plc Simon Holberton/Ben Brewerton Tel: +44(0) 20 7404 5959 Brunswick ITV DIGITAL: ITV Chief Steps Down Following Channel's Debacle ------------------------------------------------------------- ITV CEO Stuart Prebble, who also had a stint as chief of the now defunct ITV Digital channel, resigned late last week, says The Guardian. Mr. Prebble, who left after only one year on the job, said he was quitting because he no longer had use in the company. "I came back to the ITV network center a year ago to try to bring together ITV's channels and platform business. Unfortunately that role is now not available," he told The Guardian. The paper says the executive was expected to step down following ITV Digital's application for administration at the end of March. ITV insiders, however, say Mr. Prebble is not the cause of ITV's collapse. "Prebble is only a scapegoat. He didn't have the clout to make the real decisions - that was Carlton and Granada and when they merge in six months' time he would have been out of a job anyway," one ITV insider told The Guardian. Like other media outfits in the UK, ITV has suffered from the slump in advertising, impacting revenues, which slipped 15% last year. Losses amounted to hundreds of millions of pounds, says the paper. The cash-crunch at ITV Digital further strained the outfit's finances. Co-owners Granada and Carlton Communications lost some GBP1 billion in the failed channel. Mr. Prebble replaced Stephen Grabiner as CEO of ITV Digital in July 1999, when the doomed venture operated under the name ONDigital. In April last year, he was elevated to ITV's top post and oversaw the re-branding of Ondigital, the paper says. Mr. Prebble will not be replaced, but Clive Jones, the chief executive of Carlton Channels, and Mick Desmond, managing director of Granada Broadcasting will become joint managing directors of ITV, the report says. ITV DIGITAL: Sends Home 1,000 Staff in Pembroke Dock Call Center ---------------------------------------------------------------- ITV Digital staff working at a call center in Pembroke Dock, who were earlier thought to have a more secure prospect, were sacked late last week following the channel's shutdown on Wednesday. About 1,000 employees lost their jobs in the move, adding to the unemployment rate of Wales, which have seen the loss of thousands of jobs in heavy industry in recent years, BBC News said. According to the news outfit, the call center, under contract by Manpower and 7C, was the biggest private employer in Pembrokeshire. Some 225 staff at ITV Digital's London headquarters were also canned last week and another 500 at the channel's other call center in Plymouth are expected to go as well few weeks from now, BBC said. Launched as ONdigital in 1998, ITV Digital has struggled to compete with satellite broadcaster BSkyB over the years. Its demise is largely due to a GBP178.5 million outstanding obligation to the Football League over a three-year broadcast rights deal. MARCHPOLE HOLDINGS: To Sell London Head Office for GBP 4.7MM ------------------------------------------------------------ Marchpole Holdings, which holds the British license to Yves St Laurent men's wear, narrowly escaped insolvency last week after it gained approval for a fire sale of its headquarters. The approval from the UK Listings Authority means that the company need not get shareholders nod for the sale of the 20,000- square-foot property in London's West End. The company expects to raise GBP4.7 million from the sale, just enough to pay its GBP4.6 million debt, which comes due in a matter of days. "[Without the approval] we would have had immediately appoint[ed] an administrator," the company told the Telegraph. The firm said it will move to a cheaper rented office. The company admitted that its operational cashflow will see it through until June 6 only. It plans to raise funds by securitizing assets, principally stock and debtors. "The company will be able to generate sufficient operating profit and cash during the current financial year to meet its obligations as they fall due," the company said. NTL INCORPORATED: Gets Nod on Recapitalization Plan --------------------------------------------------- NTL Incorporated, announced Thursday that the Company, a steering committee of its lending banks and an unofficial committee of its public bondholders have reached an agreement in principle on implementing the recapitalization plan announced last month. The members of the bondholder committee hold in the aggregate over 50% of the face value of NTL and its subsidiaries' public bonds. In addition, France Telecom and certain other holders of the Company's preferred stock have also agreed to the plan. As previously announced, under the recapitalization, approximately US$10.6 billion in debt will be converted to equity of two newly formed companies -- NTL UK and Ireland which will hold primarily all of the Company's main UK and Ireland assets, and NTL Euroco which will hold primarily all of the Company's assets in continental Europe. In addition, the recapitalization plan contemplates the receipt from certain members of the unofficial committee of bondholders of a US$500 million liquidity facility for the Company's UK and Ireland operations during the recapitalization process and post- recapitalization. Separately, the steering committee for the banking syndicate for Cablecom, the Company's Swiss cable subsidiary, has implemented a plan for continued funding of Cablecom later this week. By providing for funding of Cablecom, this agreement has allowed the financing arrangements for NTL Euroco to be finalized as part of the overall recapitalization plan. During the recapitalization process, NTL's operations will continue uninterrupted, customer service will be unaffected, suppliers will be paid in the ordinary course, and NTL's management will remain in place. Commenting on the agreement, the Company's President and CEO, Barclay Knapp, said: "We are very pleased that the Company and all representative groups have reached an agreement in principal on an extremely complex recapitalization in record time. Although there is still work to do to implement the agreed upon plan, we are optimistic that we will be able to complete the recapitalization in an expeditious manner, with a final consummation to occur by the end of the third quarter of this year. "Our plan will achieve virtually all of the objectives we set for ourselves in January. First and foremost, company operations will continue to be unaffected by the process and we will have sufficient capital resources to see us through end-to-end. We now expect to emerge late this summer with a strong balance sheet and committed funding which is more than adequate to meet our business plan and any contingencies. Finally, we will emerge a much stronger competitor, having put in place not only a new balance sheet, but also a clearer and tighter operational focus as a result of these events." The next step in implementing the recapitalization will be for the Company and certain of its U.S. and UK holding companies that have issued publicly traded bonds to file prearranged Chapter 11 cases under U.S. law. The agreement in principle contemplates that the filings will occur by May 6. None of NTL's operating companies will be affected. Credit Suisse First Boston Corporation has served as lead financial advisor to NTL on the recapitalization. JP Morgan and Morgan Stanley have also advised the Company on the recapitalization. Summary of the Recapitalization Plan: -- The Company's current bondholders will in the aggregate receive 100% of the initial equity of NTL UK and Ireland and approximately 86.5% of the initial equity of NTL Euroco. NTL (Delaware) bondholders will have the opportunity to reinvest all or a portion of NTL (Delaware) cash in additional shares of NTL common stock, or to receive such cash in the recapitalization. Current preferred and common stockholders, including France Telecom, will receive a package of rights (to be priced at a US$10.5 billion enterprise value) and warrants entitling them to purchase primary equity of NTL UK and Ireland at the consummation of the plan (in the case of the rights) and for the duration of the eight-year warrants at prescribed prices. If fully exercised, such rights and warrants will entitle the current preferred stockholders to acquire approximately 23.6% and the current common stockholders to acquire approximately 8.9% of the entity's primary equity. -- Current preferred stockholders, other than France Telecom, would receive approximately 3.2%, and current common stockholders, other than France Telecom, would receive approximately 10.3%, of the primary equity of NTL Euroco. Bonds at the Company's subsidiaries Diamond Holdings and NTL (Triangle) will remain outstanding and will be kept current in interest payments. Subject to the consummation of the recapitalization, France Telecom will also receive NTL's 27% interest in Noos S.A. CONTACT: U.S. Media: Steve Lipin/Tim Payne Brunswick Group 212/333-3810 Analysts: John Gregg 212/906-8446 Bret Richter 212/906-8447 Tamar Gerber 212/906-8440 U.K. Media: Alison Kirkwood 44-207-404-5959 44-7788-186154 Mike Smith/Jonathan Glass Brunswick Group 44-207-404-5959 Analyst: Virginia McMullan 44-207-909-2144 NTL INCORPORATED: Law Firm Begins Fraud Suit in N.Y., U.S. ---------------------------------------------------------- Stull Stull and Brody initiated a securities class action in the United States District Court for the Southern District of New York, on behalf of purchasers of the securities of NTL, Inc. between August 9, 2000 and November 29, 2001, inclusive, against the Company and: (1) George S. Blumenthal, (2) J. Barclay Knapp, (3) Steven Carter and (4) John F. Gregg The suit alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the class period, thereby artificially inflating the market price of the Company's securities. Specifically, the suit alleges that, throughout the class period, defendants issued a series of materially false and misleading statements which failed to disclose, among other things: (i) that the Company was unable to effectively integrate its acquisitions and, as a result was experiencing Substantial difficulties in operating its business; (ii) that the Company was not fully funded until 2003, and as a result of its massive debt burden would necessarily have to restructure its debt; (iii) that the Company was underreporting churn rates by failing to report terminations and by continuing to bill customers for accounts which they had terminated, thereby creating the false impression that the Company was retaining customers longer and that migrations were decreasing; and (iv) that the Company was improperly delaying the writedown of billions of dollars of impaired assets, thereby artificially inflating the Company's operating results. Indeed, after the end of the class period, the Company announced that it would write off over $11 billion of goodwill and other asset impairments prior to reporting fourth quarter financial results, which would result in an astounding loss per share for the fourth quarter 2001 of US$46.46 per share. For more details, contact Tzivia Brody by Mail: 6 East, 45th Street, New York NY 10017 by Phone: 800-337-4983 by Fax: 212-490- 2022 or by E-mail: SSBNY@aol.com. NTL INCORPORATED: Brian Felgoise Files Fraud Suit in N.Y., U.S. --------------------------------------------------------------- The Law Offices of Brian M. Felgoise, PC initiated a securities class action on behalf of shareholders who acquired NTL, Inc. securities between August 9, 2000 and November 29, 2001, inclusive, in the United States District Court for the Southern District of New York, against the Company and certain key officers and directors. The suit charges that defendants violated the federal securities laws by issuing a series of materially false and misleading statements to the market throughout the class period which statements had the effect of artificially inflating the market price of the Company's securities. For more details, contact Brian M. Felgoise by Mail: 230 South Broad Street, Suite 404, Philadelphia, Pennsylvania, 19102 by Telephone: 215-735-6810 or by E-mail: BrianFLaw@yahoo.com. SIRIUS FINANCE: Suffers Downgrade on A, B, C Notes From Fitch ------------------------------------------------------------- Sirius Finance 2000 Plc, a special purpose vehicle established by Credit Lyonnais, suffered several ratings downgrade last week from Fitch Ratings. The vehicle's Class A notes slipped from "AA+" to "A+", while the Class B notes absorbed a slight cut from "BBB" to "BB+." The biggest loser was the Class C notes, which took a sharp dive from "B+" to "CCC-". "Fitch's rating action reflects the realized credit protection payments made following the occurrence of two credit events in October 2001 and the recent determination of the final recovery rates. The actual recovery rates obtained on these two reference entities led to a net loss of EUR40.7mbe compared with a first loss threshold amounting to EUR45m," the ratings agency explained. Credit Lyonnais incorporated the vehicle in Ireland as a public company with limited liability. Established as part of a Collateralized Debt Obligation (CDO) transaction, the Class A to C notes, totaling EUR150 million, assume the economic risks of a total reference portfolio of EUR2 billion (composed of loans advanced to, and bonds issued by corporates, mainly located in Europe), above a first loss threshold of 2.25%. Fitch says it will closely monitor any changes to the existing portfolio and will take further action as required. For more information, contact: Helene Heberlein, Paris Tel: +33 144299140 Pascal Richard, Paris Tel: +33 144299120 Anne-Laure Bronstein, LondonTel: +44 207 417 6298 TELECITY PLC: Notification of Director's Interests -------------------------------------------------- Telecity plc, the London-based Internet infrastructure provider, announced Thursday that on May 1, 2001, Trevor Wadcock, the company's director, acquired for himself and his spouse, Heather Wadcock, 50,000 10.5p ordinary shares at 0.1p each or .02% of the outstanding shares issued by the company. For inquiries regarding this announcement, contact: Liz Hayman Company Secretary Telecity plc Telephone: 020 7519 4882 TELEWEST COMMUNICATIONS: Cuts 1,500 Jobs Despite Good Q1 Results ---------------------------------------------------------------- Telewest Communications Plc, UK's other troubled cable operator, announced last week the sacking of 1,500 employees to save GBP50 million annually and ease the pressure on its burgeoning debt. CEO Adam Singer says the measure will bring down the company's annual budget to just under GBP500 million. He assured customers that the job cut won't affect their service. Most of the losses will be absorbed by the network unit, which maintains and repairs cable lines. The layoff was implemented even as the company reported encouraging first quarter figures. The cable firm boasted revenues of GBP334 million this year compared with GBP321 million for the first three months in 2001. Core earnings or EBITDA were GBP91 million, up from GBP68 million in 2001. Monthly household revenue rose 30p from the previous quarter to GBP41.97, The Guardian says. The company also bared an increased subscription for its heavily marketed Blue Yonder broadband service offering home users high speed and always-on Internet connections. It now has 148,000 subscribers, up from 107,000 just two months back, the paper says. Despite these glowing figures, all are not exactly rosy with the company's prospects, according to Finance Director Charles Burdick. In an interview with The Guardian, Mr. Burdick admitted banks are refusing to lend more money to the company, leaving it with very tight covenants on its debts, including an all-important GBP2.25 billion overdraft facility. "We have continued to have good results and the market ignores it," he said. He, however, said that Telewest had enough cash to survive for another 15 months, assuming lenders continue to steer clear of the group. The cable operator is still a long way from breaking even as it has so far raised GBP48 million of the GBP325 million it needs to reach this milestone. TELEWEST COMMUNICATIONS: Announces 1st Quarter Results 2002 ----------------------------------------------------------- Telewest Communications plc, the London-based cable TV, inernet and telecoms provider, announced Thursday the results of its first quarter financial report ending March 31, 2002: * Capex down by 21% year-on-year * EBITDA up 34% to GBP91 million year-on-year * Monthly revenue per household at record high of GBP41.97 * Record broadband internet subscriber growth; 148,000 subscribers * Headcount reductions and organizational changes announced Q1 Q1 Change 2002 2001 Over 2001 Total Turnover GBP 334MM GBP 321MM +4% EBITDA(including our proportionate GBP 91MM GBP 68MM +34% share of UKTV's EBITDA) Cable Division: Consumer Revenues GBP 227MM GBP 205MM +11% Division: Household customers 1.78MM 1.71MM +4% Monthly revenue per household GBP 41.97 GBP38.80 +8% Business Revenues GBP64MM GBP68MM -6% Division: Content Revenues - including share of GBP43MM GBP48MM -10% Division: joint ventures* * Content Division revenues are stated after elimination of inter-company trading. Commenting on the results, Adam Singer, group chief executive of Telewest Communications, said: "Telewest continues to execute well. This is the seventh straight quarter of good operating results despite a depressed telecoms carrier sector and a weak television advertising market. Average monthly revenue per household is at a record GBP41.97 and Ebitda has risen 34% year on year. Our blueyonder broadband internet product has had a record quarter, with 148,000 subscribers now installed. Its growth continues to accelerate. "Despite good operational improvement, we recognize that the capital markets' doubts about the sector and the company require us to do even more. We are in a climate in which capital is scarce and we have to respond to that. "So, capital expenditure is now on target to fall to below o500m this year and we will attempt to take it even lower as we apply our resources to projects that have immediate positive impact on our results. "We can now tighten the group's cost base as we have addressed some of the fundamental issues of network stability and customer service over the past two years. Today, I am announcing measures designed to create an even leaner Telewest, and bring forward a break-even cash position. "I have put in train a reorganization of the group, which will streamline management, flatten reporting lines and allow us to focus on our core business. Regrettably, this will result in significant job losses. We have already begun a program that aims to reduce our total staffing levels to around 9,000 from about 10,500. "The consumer and business divisions, currently managed separately, will be merged into one single operating division, and this will be serviced by a networks and technology division. Mark Luiz, chief executive of our Flextech content arm and a main board director, will take overall responsibility for our residential and business division as chief operating officer, customers. He is replaced at Flextech by Jane Lighting, managing director, television. "We anticipate that in a full year of trading, these changes will produce annualised cash savings of GBP40 million to GBP50 million in addition to our capital expenditure savings. I believe we can make these savings without harming our product line up or our current levels of customer service and growth. "Current trading is strong and in our franchise areas, we are the market leader in pay-television, with 28.9% penetration; market leader in broadband; and the number two provider of telephony with 34.8% penetration. "The continuing success of our broadband internet offering and the increasing numbers of subscribers to our triple play of telephone, television and internet is encouraging. In April, we sold more than 27,000 blueyonder broadband connections. We now have 107,000 triple play customers - and they are our future. "While BT talks broadband, we sell it and every day we provide sanctuary for ITV Digital refugees. "The steps we have taken are aimed at helping stabilise our financial future and are a necessary but painful response to market conditions. I believe they will enable Telewest to operate more efficiently going forward. But as would be expected given the current state of the capital markets, the company continues to explore options to address its funding requirements. We recognise that investors need to see evidence that we can leverage our strong operational position into a profitable financial future sooner rather than later." Please direct inquiries regarding Telewest Communications plc to: Adam Singer Group Chief Executive Telephone: 020 7299 5000 Charles Burdick Group Finance Director Telephone: 020 7299 5000 Simon Dettmer Director, Corporate Affairs Telephone: 020 7299 5064 John Murray Director, Policy and Communications Telephone: 020 7299 5128 Brunswick Sarah Tovey Telephone: 020 7404 5959 John Sunnucks Telephone: 020 7404 5959 UK COAL: Notification of Interests in Shares -------------------------------------------- Coal mining business UK Coal announced Thursday that Millgate Master Fund holds a total of 9,869,200 ordinary shares or about 6.8% of the total outstanding shares issued by UK Coal. For further inquiries regarding this notification, contact M. Garness at telephone number 01302 755 002. *********** 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. 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