/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020605.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, June 05, 2002, Vol. 3, No. 110 Headlines ********* * A U S T R I A * RHI AG: Sells Entire Engineering Division for EUR40 Million * C Y P R U S * CETI MANAGERS: Requires Creditors to Prove Debts and Claims * F I N L A N D * SONERA CORPORATION: Completes Sale of Gateway, Primatel Shares * F R A N C E * FRANCE TELECOM: EUR1 BB Mobile Assets in Lebanon Expropriated * G E R M A N Y * COMMERZBANK AG: Restructuring Program to Fall Short of Forecasts COMMERZBANK AG: Chair Signals Retreat From Industrial Investments DEUTSCHE TELEKOM: Mulling Sale, Shutdown of Pay-TV MediaVision KIRCHMEDIA: Installs Monitoring System to Protect Broadcasters KIRCHMEDIA: Announces World Cup Highlights on Mobile in Japan HEYDE AG: IT Consultancy Group Begins Insolvency Proceedings MOBILCOM AG: Takeover by France Telecom Imminent, Says Paper MOBILCOM AG: Federal Gov't May Grant Consortium EUR 6BB Contract * I T A L Y * FIAT SPA: Analysts Caution Against Selling Insurance Unit * N E T H E R L A N D S * KPN NV: Confident German Mobile Unit Will Survive Consolidation KPNQWEST NV: Assets Worth Three Cents on the Dollar, Says Paper * S W E D E N * SONG NETWORKS: Secures SEK 13MM Contract From Customs Office * U N I T E D K I N G D O M * ADVANCE MOULDING: Receivers Sell Plastic Manufacturer CONNOLLY LEATHER: Receivers Offer Upholstery Business for Sale CLIFFORD THAMES: Announces Meeting of Unsecured Creditors EUROPEAN TELECOM: Administrative Receivers Sell Solvent Units FEDERAL-MOGUL: Administrators Put Auto-parts Maker up for Sale HAMER TAMWORTH: Receivers Auction Assets of Motor Dealership KINGFISHER PLC: Rothschild Replaces Schroder Salomon as Assessor LANDIS UK: Business and Assets for Sale as Going Concern MARCONI PLC: Creditors Don't Want Rescue Plan, Eye Takeover RBG RESOURCES: Judge Say There's Strong Evidence of Bogus Deals ============= A U S T R I A ============= RHI AG: Sells Entire Engineering Division for EUR40 Million ------------------------------------------------------------ Deutsche Beteiligungs AG has, together with the company's management, acquired the entire engineering business of the RHI group. The positive liquidity effect for RHI amounts to more than EUR 40 million in the medium term. The enforcement of the contracts is subject to the approval of the competent cartel authorities. The RHI Engineering Division is a group of companies, which provide products and services in plant construction and engineering. RHI Engineering leads the market in various segments of industrial furnace construction. The engineering group employs a total of 780 people and reported sales revenues of more than EUR 230 million worldwide in the year 2001. Approximately EUR 195 million of it were consolidated in the RHI group. For the Engineering companies, the change in ownership opens up good perspectives for an attractive development within the group of Deutsche Beteiligungs AG. RHI is selling all six Engineering business units with nine core companies, which have established brand names in their respective markets: Didier-M&P Energietechnik GmbH (share: 66.67%), Mainz- Kastel (blast furnaces), Maerz-Gautschi GmbH, D《seldorf (industrial kilns for the steel, aluminum and copper industries); Kaefer Raco Engineering GmbH, Bremen, and Bachmann Industries Inc., USA (components and systems for gas power plants); Maerz Ofenbau AG, Switzerland, and Cimprogetti S.p.A., Italy, (kilns for the firing of limestone); parts of the Zimmermann & Jansen Group as well as Hermann Rappold GmbH, both based in D〉en (industrial valves); StrikoWestofen GmbH (share: 58%), Wiehl (melting and proportioning kilns for the light metals industry). By selling its Engineering group, RHI will continue its restructuring and focus on its core business of Refractories. The objectives of the business plan, which RHI presented in the context of the capital restructuring, will not be affected by the sale. Rather, the loss of earnings potential for RHI is more than compensated by the positive liquidity and risk effects. The consolidated balance sheet will be discharged from future pension and purchase price obligations. Moreover, RHI can reduce its financial liabilities due to the selling price. RHI AG, based in Vienna, Austria, is a globally active industrial group with 130 production and services locations spanning five continents. Its core division, RHI Refractories, is the global market and technology leader in refractories. RHI Refractories' world-renowned brands, top-quality products and innovative refractories systems are used in all industrial high- temperature production processes. In the building material market, RHI ranks with Heraklith among the leading European suppliers of insulating(Heraklith) materials. RHI AG manufactures products for use in high-temperature production processes such as aluminum and copper smelting and steelmaking and for use in industrial kiln construction. RHI also makes construction products for thermal and noise insulation and for protection against fire. These include mineral wool and wood-wool building board for external walls and pitched roofs. RHI's waterproofing products protect roofing, bridges, and parking garages from the elements. The company's engineering segment provides turnkey industrial furnaces, plant engineering, and refractory design. Contact Information: Twin Tower Wienerbergstrasse 11 A-1100 Vienna Austria Phone: +43-1-502-13-0 Fax: +43-1-502-13-6213 =========== C Y P R U S =========== CETI MANAGERS: Requires Creditors to Prove Debts and Claims ----------------------------------------------------------- Ceti Managers (Cyprus) Limited and Cyprus Company Law Cap 113 has published a notice in the Financial Times, dated May 20, 2002, to require creditors to prove their debts and claims. The companies are being voluntarily wound up and the Liquidators are requiring creditors on or before the June 10, 2002 to send in their full names, their addresses and descriptions, full particulars of their debts or claims and the names and addresses of their solicitors (if any) to the undersigned George Foradoris, of Pricewaterhouse Coopers, Julia House, 3rd Dervis Street, PO Box 21612, CY-1591 Nicosia, Cyprus, the liquidator of the said company. For further information, contact: George Fordaris Pricewaterhouse Coopers Julia House 3rd Dervis Street PO Box 21612 CY-1591 Nicosia Cyprus ============= F I N L A N D ============= SONERA CORPORATION: Completes Sale of Gateway, Primatel Shares -------------------------------------------------------------- Sonera Corporation has completed the sale of the financing business of Sonera Gateway Ltd (Sonera 100%) to Nordea Rahoitus Suomi Oy, the mobile telecommunications service provider announced Friday. On May 23, 2002, the Finnish Competition Authority announced its approval of the transaction. In the transaction, the leasing property of approximately EUR 114 million of Sonera Gateway Ltd and the related leasing agreements of Sonera Gateway Ltd were transferred to Nordea Rahoitus Suomi Oy. The transaction between Sonera and YIT Corporation on the sale of the share capital of Primatel Ltd has also been completed. On May 16, 2002, the Finnish Competition Authority announced its approval of the transaction. The final selling price was approximately EUR 34 million. Sonera received the selling price today. Sonera will record gains in the total of approximately EUR 35 million from the transactions for the second quarter. As announced previously, Sonera intends to use the proceeds from the transactions to strengthen its financial position. Sonera Corporation -- www.sonera.com -- 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. Contact Information: For further information at Sonera, please contact: Esko Rytkonen Senior Vice President Corporate Finance Telephone: +358 2040 58632 Email: esko.rytkonen@sonera.com For further information at Sonera Gateway Ltd, contact: Timo Paju Managing Director Sonera Gateway Ltd Telephone: +358 2040 66883 Email: timo.paju@sonera.com =========== F R A N C E =========== FRANCE TELECOM: EUR1 BB Mobile Assets in Lebanon Expropriated ------------------------------------------------------------- France Telecom's mobile network in Lebanon has been expropriated by the government, after the subsidiary of the French giant failed to agree with authorities on the price of a mobile telephony license. Citing Les Echos, the Financial Times says Cellis, the local unit, is valued at about EUR1 billion and generated annual EBITDA of EUR150 million in 2001. According to the cancelled contract signed between Lebanon and France Telecom, the French group will be compensated for this expropriation. The government plans auction the two licenses previously assigned to France Telecom's Cellis and Sonera's Libancell in August. The French operator says it will wait until the government has compensated it before deciding whether to bid anew for the license. Analysts expect the price of the license to exceed the compensation. Libancell has already indicated that it is not interested in getting back the cancelled license. ============= G E R M A N Y ============= COMMERZBANK AG: Restructuring Program to Fall Short of Forecasts ---------------------------------------------------------------- The restructuring program of Commerzbank AG will fall short the EUR1.6 billion extra pre-tax income forecasts, said Chairman Klaus Peter Mueller during the group's recent annual meeting. The program called CB21 will only generate EUR640 million by 2003, or just 40% of what had been initially expected, Mr. Mueller said. "We now expect to achieve no more than 40% of the contribution to profits originally estimated for the period up to 2003," AFX News quoted Mr. Mueller in his address to shareholders. An unnamed spokesman for the bank told AFX News that one of the reasons for the forecast downgrade is the worse than expected insurance sales caused by the disappointing acceptance levels for its new "Riester" private pension products. Several insurers, such as AXA and Allianz, have complained of a slow start to the sale of the products, which got underway this year. Mr. Mueller also noted in his address disappointing income from the bancassurance tie-up with Assicurazioni Generali SpA's German unit AMB Generali and the difficult market conditions, forcing him to cutback the program's forecasts. Originally, the program outlined a EUR600 million extra income in 2002 from the CB21 program and then another EUR1 billion of additional earnings in 2003. Still, the chairman is confident that return on equity (ROE) will rise to 4-5% this year, an improvement on last year's 0.9%. In addition, he also sees an extraordinary income of EUR600-700 million, generated from sales of shareholdings and merger of its mortgage bank. Including the extraordinary income, he expects the ROE to come in at 9-10%. Meanwhile, the chairman says the bank will cut an additional 150- 250 jobs by 2005. COMMERZBANK AG: Chair Signals Retreat From Industrial Investments ----------------------------------------------------------------- Commerzbank AG, the restructuring bank that is planning to reduce its exposure outside Germany, announced during its recent annual assembly plans to sell its industrial holdings for the right price. "We would consider divesting the stakes, either over the stock market or to strategic investors, if the share price is right," Chairman Klaus Peter Mueller told shareholders, according to AFX News. The bank's industrial holdings include a 10.5% stake in Buderus AG, 9.9% in Heidelberger Druckmaschinen AG, 10.4% in Linde AG and, 6.5% in MAN AG. The report says German financial institutions have been encouraged to sell their industrial stakes largely because of the abolition of capital gains tax, implemented early this year. In addition, threats by the opposition CDU/CSU, which has promised to revoke the policy if it wins the election, have spurred banks to cash in on their holdings before the general elections this September. Mr. Mueller's announcement follows the move by Deutsche Bank AG, which last month pledged to speed up its divestment of industrial holdings and use the proceeds to fund a share buyback plan. Meanwhile, the chairman reiterated that the bank is willing to sell its 4% stake in Credit Lyonnais. He said the stake is "sellable" once the shareholder pact between the bank's private owners runs out. But as to its 1.9% stake in Mediobanca SpA and the 3.2% holding in Banca Intesa SpA, he said plans have yet to take shape. DEUTSCHE TELEKOM: Mulling Sale, Shutdown of Pay-TV MediaVision -------------------------------------------------------------- Debt-laden Deutsche Telekom AG intends to sell MediaVision, its loss-making pay-TV unit, by year's end or shut it down if there are no buyers, says news magazine Focus. The magazine did not state the value of the unit, but it is believed to have approximately 60,000 subscribers. The unit offers digital television and radio programs. KIRCHMEDIA: Installs Monitoring System to Protect Broadcasters -------------------------------------------------------------- KirchSport AG, the company responsible for the global marketing and sales of the broadcast rights to the 2002 and 2006 FIFA World Cups, has put in place one of the most extensive worldwide monitoring systems in sports history to protect the exclusivity of the official Broadcast Partners of the 2002 FIFA World Cup. In a statement Thursday, KirchSport has appointed Sports Marketing Surveys Ltd. (SMS) to undertake this monitoring. As the event kicked off on May 31, constant live monitoring took place covering all international markets and broadcast channels. The objective is to ensure that World Cup coverage is not being broadcast on any non-rights holding channels. In addition, an Internet Infringement Monitoring Program carried out by SMS will identify any audio, video or "virtual" content appearing on the Internet. The only permitted use of World Cup material - on a delayed highlights basis only - on the Internet is on the official FIFAworldcup.com website. Any other transmission of match footage from the 2002 FIFA World Cup over the Internet would be considered a rights violation. The Internet Infringement Monitoring Program will monitor websites that have high traffic volumes in the key football- oriented and commercial markets, such as sports sites, broadcaster sites, betting sites, news sites and TV replay. More than 3,000 key websites will be subject to monitoring and will be subject to automated and manual searches leading up to, during and after the event. SMS will also conduct an extensive communications campaign targeting the world's largest internet service providers (ISPs), portals and internet proxies to ensure that everyone is fully aware of the rights situation. KirchSport will cooperate closely with FIFA, which has also commissioned an extensive media monitoring program. For further information: KirchSport AG John Kristick +41-41-723 15 15 john.kristick@kirchsport.com KIRCHMEDIA: Announces World Cup Highlights on Mobile in Japan ------------------------------------------------------------- KirchSport, the company responsible for the global marketing and sales of the FIFA World Cup television rights, announced Friday an exclusive agreement with FIFA to make match highlights of the 2002 FIFA World Cup available over wireless devices in Japan. Japan is one of the most advanced markets in the world for third generation, high-speed mobile phone technology (3G). "FOMA", Japan's 3G wireless platform, will offer match highlights - up to four minutes - from key matches of the 2002 FIFA World Cup on a delayed basis. Consumers having access to a "FOMA" device in Japan will be able to utilise the exclusive service, via the official FIFAworldcup.com "FOMA" website. The "FOMA" World Cup site is produced by FIFA, in association with their Official Partners, NTT Docomo, Toshiba and Yahoo! Dr. Alexander Liegl, Managing Director of KirchMedia's Sports Group and in charge of rights trading for the group commented on the agreement: "We are very pleased to move the World Cup into this exciting new area of broadcasting. "While this is the last agreement to be announced before the kick-off of today's World Cup, we are very confident that agreements in the area of 3G technology will play an expanded and vital part of the broadcasting mix in the future. "It is particularly rewarding that our partner on this agreement is FIFA, as we are able to learn a great deal together about this exciting technology." For further information, contact: KirchSport AG John Kristick +41-41-723-1515 Mobile: +82 (0)2 3466 6804 KirchSport AG (Seoul IBC office) Christine Knoepffler +82 (0)2 3466 6804 Mobile: +82 (0)11 9679 9878 HEYDE AG: IT Consultancy Group Begins Insolvency Proceedings ------------------------------------------------------------ Heyde AG -- http://www.heyde.de/-- announced Monday the opening of its insolvency proceedings for the Nauheim-based IT Consultancy group at the district court (insolvency court) of Friedberg. Angelika Amend, Kronberg was appointed insolvency administrator. Heyde AG had filed an insolvency petition on April 8, 2002. In Germany, the consultancy group has offices in Bad Nauheim (Headquarters), Bonn, Dresden, Essen, Hamburg and Munich. Heyde AG's subsidiaries include the following: Heyde Brasil Ltda., Sao Paulo, Brazil; Heyde AG Zurich, Switzerland; Heyde UK Ltd; Heyde Espana, Madrid, Spain. Heyde AG is an international IT-Services Group headquartered in Bad Nauheim. It provides comprehensive services ranging from strategy consulting to software products and integrated systems and solutions. The company caters to serving the financial service industry (banks, insurance companies), Supply Chain (solutions for logistics processes, warehouse management, e-business) and Telco&Media markets. Contact Information: Heyde Ag Beratung Software Integration Auguste-Viktoria-Strasse 2 61231 Bad Nauheim Germany Telephone: +49 6032 3 08-0; +49 6032 3 08-20 00 MOBILCOM AG: Takeover by France Telecom Imminent, Says Paper ------------------------------------------------------------ Debt-strapped France Telecom may take over MobilCom AG without having to make a public offer for the rest of the stakes, as mandated by a new law that took effect early this year. Handelsblatt says it learned recently that two years ago the French operator signed an agreement that allows it to buy the 40% stake controlled by MobilCom CEO Gerhard Schmid. This option is exercisable beginning next year. A spokeswoman for France Telecom has confirmed that as a result of the option agreement, the shares owned by Mr. Schmid had already been counted as part of the group's stake. Under Germany's new takeover law, which became effective January 1, 2002, a shareholder whose stake in a listed company rises above 30% becomes obliged to make a public offer for all outstanding shares. It is still unclear whether or not the new law has any bearing on the agreement sealed two years ago. Generally, though, new laws have prospective effects. If this is so, France Telecom could get ahead with its plan to take control of the German mobile phone affiliate. The imminence of this takeover move is further backed by recent reports that the French group has pledged to buy Mr. Schmid's stake within the next few weeks, provided he steps down at the end of this week. Handelsblatt says the French operator also wants to remove CFO Thorsten Grenz. In addition to this report, a recent account that France Telecom had offered MobilCom creditor banks notes convertible to equity in the group also strengthens the possibility that the telecom giant is moving for the kill. Last Friday, Troubled Company Reporter-Europe said Deutsche Bank, ABN Amro, Merrill Lynch and Societe Generale had already given initial approval to a plan to restructure some EUR4.7 billion loans extended to MobilCom to finance its 3G Network buildup. The plan, though, needs the concurrence of the 13 other members of the consortium that provided the syndicated loan. Taking full control of MobilCom has become a necessity for France Telecom due to its deepening row with Mr. Schmid over investment strategies. Previous reports indicated that what's stopping the French giant from booting out the feisty CEO is its unwillingness to take on more debt. The French incumbent is already buried under EUR60 billion plus of debts and taking on EUR6 billion more from MobilCom is an unpleasant proposition. This especially that shareholders are increasingly becoming agitated over the group's apparent lack of resolve to stem its ballooning debt load. MOBILCOM AG: Federal Gov't May Grant Consortium EUR 6BB Contract ---------------------------------------------------------------- Germany's Federal Ministry of Defense in a statement Monday announced the it favors the bid from the consortium ISIC 21, consisting of the enterprises MobilCom AG, Buedelsdorf, European Aeronautic Defence and space CO (EADS), Amsterdam, as well as CSC Ploenzke AG, Kiedrich, for the state's IT project dubbed "Herkules," estimated to cost about six billion euros. The contract is expected to last for ten years. Though the Ministry has not made its final decision, detailed negotiations are under way. The German Federal Armed Forces intends to contract its entire IT and telecommunications infrastructure to the consortium, of which the Ministry wants to control 49%. ========= I T A L Y ========= FIAT SPA: Analysts Caution Against Selling Insurance Unit --------------------------------------------------------- Fiat SpA's insurance business Toro could fetch as much as EUR3 billion if sold by the company, giving it immediate relief from its woes, reports Bloomberg. But analysts believe a sale of the unit that generated EUR146.9 million profit in 2001 would be a mistake, noting that it's like selling a healthy business to prop up an ailing unit. The Turin-based Toro generated premiums of EUR5.7 billion last year. Some analysts say the company will appeal to rival insurers looking to enter Italy's insurance market, where premiums rose 9.8% last year. Likely interested parties are Axa SA, Europe's No. 2 insurer; and Munich Re, the largest re- insurer. The debt-laden industrial group recently said that it plans to sell 11 non-core companies this year to achieve the debt levels creditor banks had recently set in exchange for refinancing some EUR3 billion of debts. Under the agreement with banks, the company must trim by 54% its more than EUR6 billion obligations or else allow the banks to accelerate asset disposals. At the moment, Toro is not included in the list of 11 companies. But analysts told Bloomberg the banks would likely auction Toro if Fiat violates its commitment. The group is now in a dilemma. If it sells Toro, it will get immediate relief but at a staggering cost. Bloomberg says Fiat just recently bought back the 25% of Toro it didn't own to give it more flexibility to expand the unit, possibly through acquisitions. The company paid EUR533 million or more than 46% of Toro's share price in May 2000. "Fiat has two choices. Either it sells everything and just be a car business, or it sells the auto business and keeps everything else," Paolo Banfi, a fund manager at Euroconsult Sgr, which owns Fiat stock, told Bloomberg. At present, the chances that sales of other assets will meet the deadline set by the banks are not encouraging. Bloomberg says Fiat's attempt to sell businesses such as Comau SpA, a maker of assembly line equipment, is going slowly. "It's a buyers market and proceeds (from asset sales) are likely to be at the lower end of the company's expectations," quoted Bloomberg of a Goldman Sachs research report on May 27. ===================== N E T H E R L A N D S ===================== KPN NV: Confident German Mobile Unit Will Survive Consolidation --------------------------------------------------------------- Dutch telecom incumbent Royal KPN NV, which is currently restructuring its business, said recently it is not selling its German mobile phone unit E-Plus. Citing an interview made by Welt am Sonntag with KPN chief Ad Scheepbouwer, AFX News said the group intends to hold on to the asset no matter the cost. Experts believe the German mobile phone market will soon be consolidated. Mr. Scheepbouwer said during the interview that only three companies would survive the market consolidation, and E-Plus would be one of them. Recently, the company revealed significant progress in its restructuring efforts, reporting losses of only EUR348 million in the first quarter, Troubled Company Reporter-Europe said. Though still in the red, the recent figure is an encouraging sign. The company ended the same three-month period last year with losses of EUR539 million. EBITDA for the quarter -- a measure of a debt-laden company's profitability -- rose by a third to EUR1.059 billion, the paper said. This is well above analysts' expectations, an indication that the company is making progress. The company sees EBITDA growth of at least 12% for the entire year and "low single-digit" revenue growth. The other significant inroad the company gained was at its debt level. KPN's debt now stands at EUR15.4 billion, down from EUR15.7 billion. The company forecasts net debt of EUR14.5 billion by year's end. Last year, the firm's debts reached as high as EUR23.2 billion, said TCR-Europe in its May 23 issue. This forced the company to bring in Mr. Scheepbouwer, who took his post in November and initiated a EUR5 billion capital hike that made a substantial dent on it debt-pile. Meanwhile, the worsening condition at KPNQwest, a joint venture with U.S.-based Qwest, forced the company to take a charge of EUR477 million for its 40 percent stake. KPN has a maximum exposure of EUR700 million in the ailing operator. Like other European telecom giants, KPN also spent billions of dollars on acquisitions and high-speed mobile phone licenses during the telecom boom two years ago. This is largely responsible for its current woes. KPNQWEST NV: Assets Worth Three Cents on the Dollar, Says Paper --------------------------------------------------------------- The assets of network data carrier KPNQwest NV could be sold for as little as three cents on the dollar now that it has filed for bankruptcy, says the Financial Times. The paper says these assets include the 25,000-km data network across Europe and its business in Central Europe, which was earlier expected to fetch EUR100 million. The paper says the company would be lucky to get even half of that amount. Two years ago the company was valued EUR40 billion. Now, an interim funding being provided by parent KPN NV, which controls 40% of the company, is all that's keeping it above water. The paper says only a handful of the 2,700 employees will be retained to fill a skeleton staff who will maintain the network while clients switch providers. It is understood the bankruptcy filing was forced by the banks, which had advanced funds to finance the purchase in March of Global TeleSystems of the US, the paper says. When KPNQwest warned that it faced a liquidity crisis, the banks accordingly seized its assets, froze EUR130 million in remaining cash and accelerated the timetable for rescue talks. Reports indicate that there are at least 12 companies, including AT&T and Verizon of the US, interested in the company and have allegedly signed non-disclosure agreements, with some even appointing investment banks to explore a takeover. The company, a joint venture between Qwest Communications of the US and KPN, was established in November 1998. The glut in network capacity, coupled by a drop in demand for wholesale data services, is seen as the major contributor to its demise. This segment comprises the biggest chunk of its EUR750 million annual revenue, says the paper. The company has debts of about EUR2 billion. In a statement recently, the company said its predicament left it with no choice but to file for bankruptcy. =========== S W E D E N =========== SONG NETWORKS: Secures SEK 13MM Contract From Customs Office ------------------------------------------------------------ Song Networks AB -- www.songnetworks.net --, a Swedish subsidiary of Song Networks Holding AB, has signed an agreement for the supply of data communication to the Swedish Customs Office. The two-year contract means that the Customs Office will improve the data capacity between all of its customs stations and offices in Sweden. The solution comprises 81 IP/VPN ports divided between 73 offices. The contract is worth approximately SEK 13 million. In addition to increased capacity, this contract will give the Swedish Customs Office a more modern, cost-effective network (WAN - Wide Area Network) which is equipped for services such as IP telephony, video conferencing and web TV. The Customs Office sets high standards of security and availability, and demands total commitment from the supplier. The Customs Office's solution is based upon Song Networks' IP VPN service, which guarantees capacity and a high level of security. Discussions on the introduction of further services are also continuing. "We are very satisfied with Song Networks' solution, which makes use of modern technical solutions in a cost-effective way. The service gives us a good basis for new applications on our network," says Carl-Olov Soderberg of the Swedish Customs Office. The agreement with the Customs Office is included in the frame contract that Song Networks signed with the Swedish Agency for Administrative Development. In conjunction with purchasing the new frame contract, the Swedish Agency for Administrative Development made an assessment in which Song Networks was ranked as Number One in data communication. "Yet again, the major investment that we made in a dedicated backbone fibre and access network in the Nordic region is proving to be a good investment for our customers. We are very happy with the agreement with the Customs Office and naturally, are hoping that our discussions with other authorities will lead to the same result," says Mats Almgren, Sales Director of Song Networks AB. Song Networks, formerly Tele1 Europe, is a data and telecommunications operator with activities in Sweden, Denmark, Finland and Norway. The Company provides comprehensive solutions for data, internet, hosting and voice, to businesses in the Nordic region. Song Networks is currently the only pan Nordic operator investing in local access networks with broadband capacity. The Company has built local access networks in the largest cities in the Nordic region. The access networks, which are linked by a long-distance network is one of the fastest data and internet super-highways in Europe, with an initial capacity for customers of up to one gigabit. The Company was founded in 1995 in Sweden and has approximately 1,000 employees. The head office is located in Stockholm and there are an additional 34 offices located in the Nordic region. For further information, please contact: Song Networks AB Mats Almgren Sales Director Telephone: +46 8 5631 02 40 Mobile: +46 701 810 240 Email: mats.almgren@songnetworks.se Song Networks Holding AB Jenny Moquist Investor Relation Manager Telephone: +46 8 5631 0219 Mobile: +46 701 810 219 Email: jenny.moquist@songnetworks.net =========================== U N I T E D K I N G D O M =========================== ADVANCE MOULDING: Receivers Sell Plastic Manufacturer ----------------------------------------------------- Joint administrative receivers Anthony Murphy and Robert W Horton offer for sale the business and assets of Advanced Moulding Components Limited. The Advance Plastics Group is one of the U.K.'s largest producers of specialty plastics products supplying the teletronics, automotive, consumer and gardening industries. The company recently reported a turnover in excess of GBP12 million, has a Southall-based 100,000 sq ft manufacturing site and head office, and owns distribution and warehouse facilities in South Wales Plant and machinery valued in excess of GBP2 million. The facility also owns a fleet of lorries and double-decker trailers. For details, contact: Robert Horton or Roger Tulloch Smith & Williamson Onslow Bridge Chambers Bridge Street Guildford GU1 4RA Telephone: 01483 407100 Fax: 01483 301232 Email: rt3@smith.williamson.co.uk CONNOLLY LEATHER: Receivers Offer Upholstery Business for Sale -------------------------------------------------------------- Joint administrative receivers Richard Heis and Adrian Howlett offer for sale the business and assets of one of the world's leading producers of high quality upholstery leather predominantly for the automotive industry, Connolly Leather Limited. Principal features of the business include: - Turnover of GBP27 million in the year to December 31, 2001 - Strongest leather brand in Europe (established since 1878, Royal Warrant) - Blue chip customer base; including Rolls Royce, Bentley, Aston Martin and Jaguar; with a strong order book - Leasehold premises with about 75,000 sq ft dressing and finishing facilities in Northampton; 70,000 sq ft cutting facilities in Ashford - Workforce of 165 skilled employees For further information, please contact The Joint Administrative Receiver: Gillian Dobson KPMG 37 Hills Road Cambridge CB2 1XL Telephone: 01223 582054 Email: gillian.dobson@kpmg.co.uk CLIFFORD THAMES: Announces Meeting of Unsecured Creditors --------------------------------------------------------- Clifford Thames Printing Company Limited announced in the Financial Times on May 14, 2002 that, pursuant to Section 48 (2) of the Insolvency Act 1986, a meeting of the unsecured creditors of the above-named company will beheld at 10 am on June 11, 2002 at South Lodge Hotel, 196 New London Road, Chelmsford CM2 OAR for the purpose of having laid before it a copy of the report prepared by the Joint Adminstrative Receivers under section 48 of the said Act. The meeting may, if necessary, will establish a creditors' committee to exercise the functions conferred on it, by, or under the Act. Creditors are only entitle to vote if: (a) they have delivered to us at the address shown above, no later than 1200 hours on the business day before the meeting, written details of the debts they claim to be due, and the claim has been duly admitted under the provisions of the Insolvency Rules 1986; and (b) there had been lodged with us any proxy which the creditor intends to use on his behalf. Creditors may obtain a copy of the report, free of charge on application from: Geoffrey Paul Rowley and Michael Jonathan Christopher Oldham Joint Administrative Receivers RSM Robson Rhodes 186 City Road London EC1V 2NU England EUROPEAN TELECOM: Administrative Receivers Sell Solvent Units ------------------------------------------------------------- The Joint Administrative Receivers, Steven Pearson and Michael Gercke, offer for sale the following subsidiaries of European Telecom Plc (In Administrative Receivership), which are not in insolvency proceedings: ET LOGISTICS ME MANS SA Main features of the business include: - 12,000 sq m facility based on Le Mans, France - Handset configuration and logistics, DECT and GSM manufacturing operation - After sales service and repair facilities - Annual turnover o16m, annual operating profit o2.4m, 585 employees ET LOGISTICS GmbH (based in Vienna, Austria) - Complete in-country procurement, logistics and distribution fulfilment capability - Key relationshiop with leading network operator - Annual turnover GBP3.5 million, 70 employees ET LOGISTICS SL (Based in Madrid, Spain) -Complete in-country procurement, logistics and distribution fulfilment capability - Key relationship with leading network operator - Annual turnover GBP 2.8 million, 10 employees For further information, please contact: Jeremy Webb or Danielle Murphy PricewaterhouseCoopers Plumtree Court London EC4A 4HT Telephone: 020 7583 5000 Fax: 020 7804 5566 Email: jeremy.webb@uk.pwcglobal.com FEDERAL-MOGUL: Administrators Put Auto-parts Maker up for Sale ------------------------------------------------------------- Joint administrators Peter Holder, Simon Freakley and James Gleave offer for sale the business and assets of Federal-Mogul Sunderland Limited. Federal-Mogul Sunderland Limited is manufacturer of cast iron and steel piston rings for the automotive industry. The business, established 39 years ago, posted turnover of GBP20 million. The company has a chip customer base, including a number of the world's leading motor manufacturers. In the U.K., the purpose-built automotive component manufacturing facility in Sunderland employs approximately 400 employees. For further information, contact: Gary Thompson or Kristin Riise Kroll Buchler Phillips 84 Grosvenor Street London W1K 3LN Fax: 020 7629 9444 E-mail: kriise@buchler-phillips.co.uk HAMER TAMWORTH: Receivers Auction Assets of Motor Dealership ------------------------------------------------------------ Joint administrative receivers Stephen Quinn, Bruce Mackay and Guy Mander offer for sale, either in whole or in part, the business and assets of Hamer Tamworth Limited and Specktor Limited, retail motor dealershops in Halesowen, West Bromwich, Merry Hill and a bodyshop in Oldbury. Principal features of the business include: - Established Ford Dealerships - Turnover circa GBP 40 million pa - Properties - 3 Freehold, 1 Leasehold - Loyal workforce of 140 employees For further information, contact: Stephen Quinn/Graham Clark Baker Tilly Brazennose House Lincoln Square Manchester M2 5BL Telephone: 0161 834 5777 Email: stephenquinn@bakertilly.co.uk Guy Mander Baker Tilly City Plaza Temple Row Birmingham B2 5AF Telephone: 0121 214 3100 Email: guymander@bakertilly.co.uk KINGFISHER PLC: Rothschild Replaces Schroder Salomon as Assessor ---------------------------------------------------------------- The commercial court in Paris has chosen NM Rothschild to evaluate the "fairness" of Kingfisher's GBP3.2 billion hostile bid for the 45% stake of French DIY chain Castorama. The decision handed down Monday strips Schroder Salomon Smith Barney of the mandate, which was questioned by Castorama due to its close association with the British group. The new assessor is given 30 days to come up with a fair price valuation, which is a requirement laid down in 1998 when Kingfisher merged its B&Q operation with Castorama, says the Telegraph. Kingfisher expects a formal bid to be made towards the end of July. Kingfisher is offering EUR67 for the remaining share it does not own. Castorama, however, believes the shares are worth EUR70 apiece. LANDIS UK: Business and Assets for Sale as Going Concern -------------------------------------------------------- The joint administrators, Philip Long and Fred Satow, offer for sale as a going concern the business and assets of the Landis UK Plc and Landis ICT Services Limited, according to the administrators announcement published on the Financial Times of May 21, 2002. Principal features of the businesses include: -Distribution capability of GBP26 million per annum -18,000 sq foot leasehold warehouse -Training turnover GBP4 million per annum -Purpose designed training offices: -King William Street, London -Chessington, Surrey -Basingtoke, Hampshire -Accredited specialist training staff Potential purchaser (principals only) should contact the joint administrator at: PKF New Garden House 78 Hatton Garden London ECIN 8JA Tel: 020-7831-7393 Fax: 020-7404-8112 Email: Philip.long@uk.pkf.com MARCONI PLC: Creditors Don't Want Rescue Plan, Eye Takeover ----------------------------------------------------------- Banks and bondholders are allegedly planning to take over the near-bankrupt British telecom equipment maker, after balking at the GBP1.4 billion debt write-down being proposed by Marconi negotiators. According to the Telegraph, the two groups of creditors are considering taking over Marconi Corporation, the finance arm that issued its notes. They believe that by taking over this unit, they can win effective control of Marconi's operating subsidiaries that were the recipients of the credits. The paper says the creditors are currently looking for a legal basis for a takeover, which at the moment appears to be a debt default. Led by recently appointed non-executive director Allen Thomas, who helped bail out New York City from its financial crisis in the Seventies, the company reportedly presented creditors a restructuring plan that requires them to write off debts of GBP1.4 billion. "The banks do not want to write off that level of debt and they are considering almost any way of avoiding it," a source privy to the negotiations told the Telegraph. Marconi has also hired restructuring expert Talbot Hughes as adviser. It owes bondholders and banks GBP4 billion. RBG RESOURCES: Judge Say There's Strong Evidence of Bogus Deals --------------------------------------------------------------- A judge handling the liquidation of RBG Resources admitted recently that there's evidence indicating that the trading company may have indeed misled creditors by declaring bogus deals. Mr. Justice Laddie of the High Court said: "If these were not bogus [trades], there would be an enormous amount of money coming in...What is terribly noticeable is that there has not been any incoming money for nearly a month, and some has been outstanding for nearly three months." Stephen Smith, QC for the liquidators, disclosed during a recent hearing that the company is owed US$478 million from more than 100 trading partners around the world. The liquidators, from Grant Thornton, estimate about US$450 million of these funds are overdue, says The Guardian. "You have a strong prima facie case of fraud - that US$400 million has gone 'walkies'... [But, if your case is correct] by the time you get to trial, there are going to be no assets left," Justice Laddie told Mr. Smith. The paper says the full extent of the fraud is not yet clear, but some sources close to the investigation are suggesting it could be more than US$600 million. Multi-millionaire Viren Rastogi, who was arrested during a raid by the Serious Fraud Office last month on the company's offices in Piccadilly, London, is named one of four defendants by the liquidators. The other three individuals are Gautan Majumdar and Anand Jain, both directors of RGB; and a senior manager. Liquidators are accusing the four of fabricating evidence of substantial trades that were used as collateral for loans from banks, the report says. Meanwhile, as the investigation costs mount and more bogus deals are uncovered, many are beginning to doubt that creditors -- a handful of banks including WestLB and ING Barings -- will ever get back any funds after fees for lawyers and investigators around the world are paid. Liquidators also say the company's remaining funds could run out within weeks. It is understood that they are close to selling the company's tin mining and smelting interests in Bolivia for US$6 million, The Guardian says. *********** 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 * * *