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/raid1/www/Hosts/bankrupt/TCREUR_Public/020703.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, July 3, 2002, Vol. 3, No. 130 Headlines * F I N L A N D * SONERA CORPORATION: To Sell Holdings in LibanCell * F R A N C E * ALCATEL: Sanmina-SCI Purchase of Alcatel's Facility in Spain VIVENDI UNIVERSAL: Announces Disposal of 5.2MM Shares of Vinci VIVENDI UNIVERSAL: Debt Ratings Downgraded to Ba1 - Moody's VIVENDI UNIVERSAL: Outlines Plan to Lower Debt by EUR 4BB in 2002 VIVENDI UNIVERSAL: Appoints Hoenn as Director as Arnault Quits VIVENDI UNIVERSAL: Deleveraging and Liquidity Situation VIVENDI UNIVERSAL: Company Profile FRANCE TELECOM: Shares Rose Amid News of Government Bailout AIR LIB: Faces Demand From Flightlease to Pay Rental Arrearages * G E R M A N Y * PIXELNET AG: Files for Insolvency Proceedings FAIRCHILD DORNIER: Opens Insolvency Proceedings on Monday RTV FAMILY: Transfers Listing to Geregelter Market Segment TEAMWORK INFORMATION: Creditors Agree to Insolvency Plan DIALOG SEMICONDUCTOR: Acquires Cmos Imaging Business From Sarnoff TELESENSKSCL: Appoints Insolvency Administrator * I R E L A N D * ELAN CORPORATION: Will File 2001 Report Monday * N E T H E R L A N D S * UNITED PAN-EUROPE: Announces Extension of Waivers From Lenders * S W I T Z E R L A N D * SWISSAIR GROUP: Report on Creditors' Meeting * U N I T E D K I N G D O M * BRITISH AIRWAYS: Union Head Warns Airlines of Job Cuts COMPASS GROUP: Compass Will Sell Little Chef and Travelodge CARLTON COMMUNICATIONS: Ratings Cut to Baa3 and P3-Moody's EQUITABLE LIFE: Forced to Increase Penalties to Avoid Insolvency EUROTUNNEL GROUP: Company Profile RAILTRACK PLC: PLC's Baa1 Long-Term Rating Confirmed - Moody's WORLDCOM, INC: WorldCom Delivers Requested Explanation to SEC WORLDCOM, INC: Announces MCI Group Dividend Will Be Paid July 15 WORLDCOM, INC: S&P Cuts Ratings to "CC", Puts Co. on Credit Watch WORLDCOM, INC: CEO John Sidgmore Responds to U.S. President COLT TELECOM: Announces 10 Million Bond Buyback ============= F I N L A N D ============= SONERA CORPORATION: To Sell Holdings in LibanCell --------------------------------------------------- Sonera -- www.sonera.com -- has sold its 14 % holding in the Lebanese GSM operator LibanCell to Lebanese Telecommunications Company S.A.L., the company announced Monday. The price of the deal was USD 22.5 million, or about EUR 24 million. Sonera has already received the payment in cash and will record a gain of about EUR 20 million from the deal in the second quarter. Sonera invested in LibanCell in 1994. At the end of 2001, LibanCell had 381,000 subscribers and a 49% share of the Lebanese GSM market. Last year the Lebanese Government cancelled the BOT (Build, Operate and Transfer) contracts of both GSM operators and announced the launch of a tender process to grant two new GSM operating licenses. The process is still ongoing. "LibanCell was a good investment for us, but as the Lebanese government cancelled the BOT contract, the company's prospects became more uncertain. Moreover, the minority holding in LibanCell was no longer in line with our current strategy, which is aimed at immediate profitable growth in selected markets in the East, such as Russia, Azerbaijan, Georgia, Kazakhstan and Moldova", says Kim Ignatius, Sonera's Executive Vice President and CFO. Sonera is a leading provider of mobile and advanced telecommunications services. Sonera is growing as an operator and as a provider of transaction and content services in Finland and in selected international markets. Contact Information: Kim Ignatius CFO, Executive Vice President, Sonera Corporation Telephone: 358 2040 54015 Email: kim.ignatius@sonera.com =========== F R A N C E =========== ALCATEL: Sanmina-SCI Purchase of Alcatel's Facility in Spain ------------------------------------------------------------ Sanmina-SCI Corporation, a leading electronics contract manufacturer, announced Monday the completion of its asset purchase of Alcatel's manufacturing facility in Toledo, Spain. This asset purchase completes the three phases of Sanmina-SCI's announcement on January 24, 2002 of its acquisition of Alcatel's manufacturing facilities in Cherbourg, France, Gunzenhausen, Germany and Toledo, Spain. It follows the announcement of the completion of the purchase of the Gunzenhausen facility, announced on April 3, 2002 and the completion of the Cherbourg facility, announced on May 23, 2002. Terms of the transaction and multi-year supply contract were not disclosed. Sanmina-SCI Corporation is a leading electronics contract manufacturer serving the fastest-growing segments of the US$130 billion global electronics manufacturing services (EMS) market. Sanmina-SCI provides end-to-end manufacturing solutions, delivering unsurpassed quality and support to large OEMs primarily in the communications, industrial and medical instrumentation, and computer technology sectors of the market. Sanmina-SCI has over 100 facilities strategically located in key regions throughout the world. Alcatel designs, develops and builds communications networks, enabling carriers, service providers and enterprises to deliver any type of content, such as voice, data and multimedia. Relying on its leading and comprehensive products and solutions portfolio, stretching from end-to-end optical infrastructures, fixed and mobile networks to broadband access, Alcatel's customers can focus on optimizing their service offerings and revenue streams. Alcatel employs a workforce of 99,000 and operates in more than 130 countries. VIVENDI UNIVERSAL: Announces Disposal of 5.2MM Shares of Vinci -------------------------------------------------------------- Vivendi Universal announced Friday that it will sell 5,266,390 shares of Vinci SA worth approximately EUR 353 million (at closing price of EUR66.95). The purpose of this transaction is to permit Vivendi Universal to pursue the implementation of its debt reduction policy. The transaction has been conducted through an accelerated bookbuild offering to institutional investors. Simultaneously, Vivendi Universal is buying calls to hedge the outstanding exchangeable bonds into Vinci issued in March 2001 which comes at maturity in March 2006. VU bears no exposure to movements in the Vinci share price. A 90-day lock-up period has been agreed on the 1,552,305 shares owned by Dalkia. VIVENDI UNIVERSAL: Debt Ratings Downgraded to Ba1 - Moody's ----------------------------------------------------------- Vivendi Universal SA's long-term senior debt ratings were downgraded to Ba1 from Baa3 and will stay under review for possible downgrade in the future, Moody's Investors Services reported July 1. Moody's said the "rating action reflects growing doubts about the company's ability to achieve the level of debt reduction factored into the previous Baa3 rating and to arrange refinancings of debt falling due over the next twelve months despite its broad and deep asset base." "Additional uncertainty is created by a challenging capital markets environment, the lack of clarity about the company's further strategic development and the possibility that the company might decide to review its overall strategic options in- depth." In line with this, Moody's said it "expects however that Vivendi Universal's banks will provide continued support for the company and will assist it in the orderly implementation of its financing and asset disposal plans." According to Moody's its "review will focus on a re-evaluation of the company's ongoing debt reduction program, the steps management intends to take over the next few months to manage its liquidity profile and an assessment of the company's strategic options as they evolve over the coming days and weeks." "The company's current management, supported by its board of directors, has reiterated its commitment to debt reduction and that Vivendi Universal has recently effected a number of asset sales, most notably a 15% stake in Vivendi Environment (for proceeds of around Euro 1.5 billion). However, the company has also seen increases in debt, in particular from its acquisition of the entertainment assets of USA Inc. (Euro 2.4 billion in debt and preferred stock with strong debt characteristics) and the payment of its annual dividend (Euro 1.1 billion)," Moody's said. Moody's added that "it has to fund ongoing pay-outs from put options on Vivendi Universal shares that have become more onerous following further falls in the company's stock price over the last few weeks and the company has agreed to provide cash to Cegetel which might be used to fund the potential exercise of a put option against Cegetel to buy out the 50% it does not own in telecom JV with SNCF. Furthermore, Moody's noted "that the company needs to refinance at least Euro 3.5 billion of debt over the next twelve months and that its Euro 1.8 Billion bond exchangeable into Vivendi Environment (due 2006) has the potential to be put to the company in March 2003. " Lastly, Moody's said that the new rating and the continuance of the review shows its "expectation that current market conditions will make it more difficult for Vivendi Universal's to achieve its refinancing plans while terms and conditions of new financing will likely be more onerous than existing borrowing. " VIVENDI UNIVERSAL: Outlines Plan to Lower Debt by EUR 4BB in 2002 ----------------------------------------------------------------- The Board of Directors of Vivendi Universal last week made note of the partial disposal of Vivendi Environnement despite the current market volatility. The disposal had been on the agenda for the last several months and had three objectives: to simplify and clarify the structure of the group; to deconsolidate Vivendi Environnement; and to lower debt. Following the restructuring of Vivendi Environnement's equity, the discussions of the Vivendi Universal Board of Directors focused mainly on Vivendi Universal's financial outlook for the full year 2002. The main points are as follows: OPERATING TARGETS: - Senior management confirmed the operating targets for 2002. DEBT REDUCTION: - The active implementation of a debt-reduction plan has enabled Vivendi Universal to collect over EUR5.1 billion during the first half of the year, to which can be added the disappearance of its financial risk on BSkyB shares (EUR2.5 billion) and the imminent sale of the B2B health activities. - As a consequence, net debt will be lowered in 2002 and senior management's target (under U.S. definition) is to bring it down from about EUR19 billion to EUR15 billion. - That level represents a net debt-to-EBITDA ratio of below 2.5 times on a consolidated basis and of around 3 times on a proportional basis (to eliminate the impact of the minority interests in telecoms). CASH SITUATION: - Vivendi Universal has EUR3.3 billion available in unused credit lines, an amount that well exceeds its commercial paper of EUR912 million. - Early repayment clauses in loan agreements apply to less than EUR170 million and the various bank covenants will all be complied with at both June 30 and December 31, 2002. - The company will also continue its policy of increasing the average length of its debt. VIVENDI UNIVERSAL: Appoints Hoenn as Director as Arnault Quits -------------------------------------------------------------- To replace Bernard Arnault, who resigned last week, Dominique Hoenn, the Chief Operating Officer of BNP Paribas, has been appointed to the Board of Directors. Hoenn's appointment will be voted on at the next Annual Shareholders' Meeting. Dominique Hoenn was appointed Chief Operating Officer of BNP Paribas in April 2000. He has responsibility for Corporate and Investment Banking, Asset Management and Private Equity. Mr. Hoenn joined Paribas in 1963 and has spent his entire career with the bank. In 1989, he was appointed Executive Vice President of Paribas with joint responsibility for the finance department. When Paribas adopted a management structure with an Executive Board and Supervisory Board in 1990, Mr. Hoenn was appointed to the Executive Board, with responsibility for the finance department. This included responsibility for assets and liabilities management and supervision of the risk department. Mr. Hoenn represents the BNP Paribas Group in several of its subsidiaries. He is Chairman of BNP Paribas Securities Services, and a Board member of BNP Paribas Luxembourg, BNP Paribas Switzerland and Copeba, among others. Other than the BNP Paribas Group, Mr. Hoenn is Vice Chairman of the Supervisory Board of Euronext (the European stock exchange), a Board member of Clearstream International and a member of France's financial markets commission (CMA). Born April 12, 1940, Mr. Hoenn is a graduate of the ESSEC business school and holds a post-graduate qualification in economics. VIVENDI UNIVERSAL: Deleveraging and Liquidity Situation ------------------------------------------------------- CHANGE IN DEBT SITUATION 1) According to the U.S. definition of net debt (gross debt less cash), Vivendi Universal's net debt (excluding Vivendi Environnement) fell from around EUR 19 billion at December 31, 2001 to approximately EUR 17 billion at March 31, 2002, (and from EUR 14.6 billion to EUR 12.8 billion under French GAAP). The main factors that will impact debt under U.S practices in the second quarter were or will be: - Cash inflows: the proceeds from the sale of the BtoB and Health activities of the publishing division (VUP) for nearly EUR 1 billion, scheduled for the end of June, the proceeds from the disposal of the Canal+ Nordic satellite platform for EUR 270 million - Cash outflows: the Vivendi Universal dividend payment in May, for EUR 1.05 billion, the payment in May of the cash portion of the USAi transaction, for EUR 1.8 billion Furthermore, the restructuring of Vivendi Environnement's equity brought Vivendi Universal EUR 1.5 billion in cash in the second quarter and will reduce net debt by the same amount at December 31, 2002. The disposal of certain real estate assets for EUR 120 million, committed in May, will reduce debt in the third quarter. The total value of the disposals carried out or definitively entered into during the first half of 2002 represents more than EUR 6 billion in cash (sale of treasury stock for EUR 3.3 billion, B2B assets for EUR 0.9 billion, Canal+ Nordic for EUR 0.27 billion, real property assets for approximately EUR 0.1 billion and proceeds from Vivendi Environnement of EUR 1.5 billion). VU's financial risk was reduced by an additional EUR 2.5 billion when the BskyB transaction was unwound. 2) By December 31, 2002, and with the current shareholder structure of Cegetel still in place, Vivendi Universal is lowering its net debt target to below EUR 15 billion (in accordance with current U.S. accounting principles), corresponding to a net reduction of over EUR 4 billion since the beginning of the year. This target represents a ratio of debt to estimated 2002 EBITDA of below 2.5 times, including Cegetel and Maroc Telecom, as is required by both U.S. and French accounting standards. Using 'proportional' levels of estimated 2002 EBITDA and debt adjusted for the minority interests of Telecoms, the debt target ratio is around 3 times EBITDA. This new debt target, which is lower than that so far announced, has been made possible by the rapid progress made in the debt- reduction plan during the first half of the year. 3) In addition to transactions already finalized and its operating free cash flow, the company expects to meet its debt target by continuing to dispose of non-core assets. Certain disposals are already under way and proceeds from them, if they are all consummated before December 31, 2002, are expected to be well in excess of the amount required to meet the year-end debt target. 4) About half of Vivendi Universal's debt is in the form of securities, and the other half is in bank loans. Around 60% is in euros and 40% in dollars. The company's aim is to extend the average length of its debt, firstly by reducing it and allocating income from disposals to short-term debt repayment, and then by replacing the remaining short-term debt by medium- to long-term debt. As a first step, carried out at the beginning of 2002, Vivendi Universal replaced EUR 3 billion of short-term debt with a five- year syndicated loan at a spread of 47.5 basis points over EURIBOR. Vivendi Universal is planning a EUR 1-2 billion bond issue during the year to replace short-term debt. II- CASH SITUATION 1) At this point in time, Vivendi Universal has available around EUR 3.3 billion in unused credit lines. This is available to back up its commercial paper outstanding of nearly EUR 1 billion. The cash situation has greatly improved since the beginning of the year. However, it should be emphasized that, even while waiting to collect the remaining proceeds from the sale of Seagram's spirits and wine business in the fourth quarter of 2001, Vivendi Universal regularly maintained an amount of unused credit lines above the value of its commercial paper. Owing to its strong free cash flow, combined with the execution of the disposals program and potential bond issues, Vivendi Universal is confident of its capacity to meet its anticipated obligations over the next 12 months. In particular: a. The sale of 15.6% of VE (for EUR 1.5 billion) and the other planned disposals are expected to more than cover Vivendi Universal's anticipated commitments over the coming months, which include : - making available to Cegetel cash to enable the company to buy Telecom Developement (TD) if Societe Nationale des Chemins de Fer Francais (SNCF)decides to exercise its put option during the summer; - the cost in cash of paying for put options to VU relating to 15 million shares. Spread over the next seven months, this cost represents an amount at each payment date equal to the difference between the share price the day when the options are exercised and their average strike price of EUR 69; - the cost of the price guarantee given by Seagram on Rondor, in the amount of US$230 million to be paid in March 2003. b. The VUE bridge loan put in place at the beginning of 2002 is expected to be refinanced by a VUE bond issue, and EUR 1.7 billion in repayments of bank loans with maturities of less than 12 months are expected to be consolidated and/or refinanced by a planned VU bond issue. c. When the time comes, the company will decide on how to maintain the 2006 due date of the issue of bonds convertible into VE shares, which has an early redemption option for March 2003 for holders willing to relinquish the bond's option value. 2) Furthermore, since the beginning of the year, Vivendi Universal has renegotiated a number of bank clauses, in particular those that placed it in the situation of certain loans being called if its credit ratings fell below BBB- /Baa3 (recently downgraded, see related article). These clauses originally involved EUR 5.5 billion in debt, and now apply to less than EUR 170 million. The renegotiations have led to a reduction in the average length of financing for marginal amounts of around EUR 200 million. The cost of these unused back-up lines has increased by 110 basis points, only if used, depending on the amount drawn. Following the renegotiations, Standard & Poor's removed Vivendi Universal from its list of companies exposed to rating triggers. The financial undertakings made by the company in the back-up lines are the same as those made for the five-year syndicated loan of EUR 3 billion. Vivendi Universal is projecting for June 30 and December 31 that its financial ratios will meet or exceed the ratios required in these contracts. VIVENDI UNIVERSAL: Company Profile ---------------------------------- Name: Vivendi Universal SA 42 avenue de Friedland 75380 Paris Cedex 08 France Telephone: +33 1 71 71 10 00 Fax: +33 1 71 71 11 79 Email: Feedback@vivendiuniversal.com Website: http://www.vivendiuniversal.com SIC: Environment, Media, Construction Employees: 321,000 Net Loss: EUR 13.6/ US$ 13.4 million (FY 2001) Total Assets: EUR 139.0 million/US$ 136.8 million (FY 2001) Total Liabilities: EUR 102.3 million/US$ 100.7 million (FY 2001) Type of Business: Formerly known as Vivendi, Vivendi Universal SA's core activities are grouped into the following areas: Environment-water and water treatment, waste management, energy, transport; Communications-telecommunications, Internet, audiovisual activities, publishing and multimedia; Construction and Property. Trigger Event: Vivendi Universal increased debt this year due to its purchase of USA Inc.'s assets (EUR 2.4 billion in debt) and the payment of its annual dividend (EUR 1.1 billion). Credit rating agency Moody's recently downgraded Vivendi's debt rating and put the group's rating for a further downgrade because of the negative effects of Vivendi's put options payments. Chairman: Jean-Marie Messier (recently resigned) Assistant Director General: Eric Licoys Assistant Director General: Pierre Lescure Finance Director: Guillaume Hannezo Auditor: Barbier Frinault & Cie (member firm of Andersen Worldwide) No. of Shares in Issue: 1,088 million shares FRANCE TELECOM: Shares Rose Amid News of Government Bailout ----------------------------------------------------------- Shares of troubled telecom company France Telecom increased following reports that the French government would consider renationalizing the company if its share price does not improve, the Telegraph said. Telegraph reported that the company's shares rose up to 2.60 at Eu12.25 on last Sunday, while bonds reached a face value of 96pc, gaining 1.5pc. The daily said that despite denials from the French finance ministry regarding the possibility of renationalizing, the new center-right administration said it would still consider taking control of the troubled company. A statement released by the ministry's spokesman denying such a move contradicted earlier claims of the government that it was contemplating a move to renationalize, the paper said. France Telecom's financial worries started this year as its shares fell by close to 75%. It is also mulling over its debt position which is expected to rise from its standing of Eu16 billion. It will be forced to refinance Eu15 billion of debt next year. The paper said that France Telecom refused to comment on the issue other than to say that it does not need cash injection. AIR LIB: Faces Demand From Flightlease to Pay Rental Arrearages -------------------------------------------------------------- Bankrupt airline company Air Lib faces demands from Flightlease, to pay rental arrearages worth $3mln for two Airbus A340 aircrafts during the period between the company's declaration of bankruptcy and its takeover of Holco on August 1, 2001, reports obtained from Les Echos and Financial Times said. In the wake of this demand, Air Lib is seen to be facing future problems. If the court will rule in favor of Flightlease's request, Airlib will expect that its long-haul flight program and its commercial agreement with French airline Air France will be gravely compromised, the reports said. The reports also said that Air Lib is currently faced with another legal row with two of its unions SPAC and UNAC. Both unions are backed by a group of employees in Air Lib who have succeeded in requesting the sequestration of Holco's foreign assets. Initially, the employees were to hold a 34% stake in Holco, but they will instead take a stake in Air Lib. ============= G E R M A N Y ============= PIXELNET AG: Files for Insolvency Proceedings -------------------------------------------- After detailed examination of the business and financial situation, the Management Board of PixelNet AG initiated on July 1 an insolvency proceeding with the District Court at Dessau due to threatening illiquidity. This step became necessary because its subsidiary PHOTO PORST AG filed a petition for insolvency due to the threat of illiquidity on June 24, 2002, so that the repayment of loans to the parent company, as envisaged in the framework of liquidity planning, cannot be made, or cannot be made on the due date. At the same time, the management of ORWO Media GmbH, a 100% subsidiary of PixelNet AG, initiated today an insolvency proceeding with the District Court at Dessau due to threatening illiquidity. Both companies are now awaiting the appointment of an interim insolvency trustee. FAIRCHILD DORNIER: Opens Insolvency Proceedings on Monday ----------------------------------------------------------- Troubled regional jet maker, Fairchild Dornier initiatedinsolvency proceedings proper on Monday even with strong backing from the German and Bavarian governments to seek financial solutions, the Handelsblatt reported. The daily said Attorney Eberhard Braun would handle the proceedings as insolvency administrator. In a desperate move to stay intact, Fairchild Dornier got a credit of 94MM EUR to continue operations until the end of June. It hoped that by the time, it would be able to seek a major investor. Unfortunately, the troubled German plane maker failed to do so. With the company about to go through insolvency proceedings, it is inevitable that it will be broken up to individual units. It may have to stop its flagship program 728/928 for a 70-seater regional jet, the daily said. The 728/928 program is currently being studied by Alenia for possible takeover. Fairchild resorted to 80 redundancies last Monday. Some 1,800 workers will be transferred to a temporary company. Fairchild revealed that salaries will be culled from the 94 mln eur credit and from the local labor offices, the paper said. Operations of other aircraft-components, which are still deemed profitable will be continued. Earlier reports have indicated that MAN AG has expressed interest in the company's airplane production components. RTV FAMILY: Transfers Listing to Geregelter Market Segment ----------------------------------------------------------- According to the decision of the Managing Board, RTV Family Entertainment AG -- http://www.rtv-ag.de-- Monday, RTV applied at Deutsche Borse AG to change its listing from Neuer Markt to Geregelter Markt. The admittance for the trade at the Neuer Markt wil terminate at the earliest possible date and from this moment on the admission to the Geregelter Markt will begin. Through this move, RTV Family Entertainment AG will save significant expenses. On Sunday, the former owner and previous Managing Director Ellen Windemuth agreed with RTV Family Entertainment AG will take over all shares of Off the Fence and in return release RTV Family Entertainment AG from its obligations. This is a significant step for RTV Family Entertainment AG to relieve the company of its existing Cash Flow crisis for the years 2002 and 2003. RTV Family Entertainment AG and Off the Fence intend to carry on working very closely together. TEAMWORK INFORMATION: Creditors Agree to Insolvency Plan -------------------------------------------------------- Creditors unanimously ratified the insolvency plan for Teamwork Information Management AG on July 1, 2002. The meeting of creditors gave its full consent to the insolvency plan to reconstruct the company submitted by the receiver, lawyer Dr. Frank Kebekus. The Paderborn District Court ratified the plan after the meeting of creditors. The insolvency plan must be fulfilled by December 1, 2002. This is to be achieved by means of a second capital increase with a subscription right for shareholders. The Austrian company Aktieninvestor.com AG has agreed to subscribe to any part of the capital increase that is not taken up. Acceptance of this insolvency plan means that a reconstruction concept has been implemented that is the first of its kind for a stock corporation listed on the Neuer Markt. Teamwork AG will discharge its debts by fulfilling the insolvency plan. When its insolvency proceedings are over, the company expects an improvement in its creditworthiness and a sharp expansion in operational business. The Board of Management expects a sustained and positive EBIT as of the 3rd quarter as a result of substantial cost reductions. Contact Information: Dr. Sabine Brummel Telephone: +49 (0)5251-5201-145 E-mail: sbrummel@teamwork.de DIALOG SEMICONDUCTOR: Acquires Cmos Imaging Business From Sarnoff ----------------------------------------------------------------- Dialog Semiconductor Plc -- http://www.dialog-semiconductor.com- -announced on Monday that it has acquired the CMOS imaging business and associated CMOS Active Pixel Sensor (APS) patent portfolio from the New Jersey, USA based Sarnoff Corporation, the research and development institute formerly known as RCA Laboratories. The two companies will partner for long-term development of imaging technology and Sarnoff will continue its CMOS business in advanced imaging for medical, government and low volume applications. Effective immediately, the new technology extends Dialog's product portfolio. Its power management and audio chipsets are already established in mobile phones, and now Dialog can offer advanced camera-on-a-chip technology as a highvolume fabless CMOS imaging company. As part of the agreement, a core team from Sarnoff is designated to transfer and implement the technology at Dialog. The financial terms of the deal were not disclosed. The advantage to Dialog's customers is that the company will own the key element, which helps to drive down the cost and power consumption of camera modules for high volume markets. Contact Information: Birgit Hummel Dialog Semiconductor Telephone: +49-7021-805-412 E-mail: birgit.hummel@diasemi.com http://www.dialog-semiconductor.com TELESENSKSCL: Appoints Insolvency Administrator ----------------------------------------------- In consequence of the application at the local court of Cologne, on June 18, 2002 to open insolvency proceedings regarding the assets of TelesensKSCL AG -- http://www.TelesensKSCL.com-- Hans-Gerd H. Jauch has been appointed preliminary insolvency administrator. Frank Schiewer, a member of the Executive Board of TelesensKSCL AG, has resigned from the Executive Board in agreement with the Supervisory Board, effective July 1, 2002. Ash Marston and Richard Logan maintain their mandates to the Executive Board. Contact Information: Nina von Moltke Investor Relations TelesensKSCL AG, Global Solutions Ferdinand-Porsche-Strasse 1 51149 Koln Email: investor@telesenskscl.com Telephone: +49 2203 91 28 888 Fax: 449 2203 91 28 150 ============= I R E L A N D ============= ELAN CORPORATION: Will File 2001 Report Monday ---------------------------------------------- Elan Corporation, plc said that it will file with the United States Securities and Exchange Commission (SEC) Monday (July, 1, 2002) the Annual Report on Form 20-F for the fiscal year ended December 31, 2001, and that the report confirms its financial results for 2001 as previously announced on February 4, 2002. The final US GAAP Income Statement Data for 2001 is attached below. The 2001 Annual Report on Form 20-F will be posted on the Investor Relations section of the Elan web site later Monday. Elan is a global, fully integrated biopharmaceutical company headquartered in Ireland, with its principal facilities located in Ireland and the U.S. Elan is focused on the discovery, development, manufacturing, selling and marketing of novel therapeutic products in neurology, pain management and autoimmune diseases and the development and commercialization of products using its extensive range of proprietary drug delivery technologies. Elan shares trade on the New York, London and Dublin Stock Exchanges. Year ended December 31, US GAAP Income Statement Data 2000 2001 US$m US$m ----------------------------------------------------------------- ----- Revenues Total revenues 1,521.4 1,862.5 Costs and Expenses Research & development 322.2 321.2 Cost of goods sold 321.3 379.5 Selling, general & administrative 512.1 603.4 ------- ---- --- Total operating expenses 1,155.6 1,304.1 ------- ---- --- Operating income 365.8 558.4 ------- ---- --- Net interest and other income 138.8 156.9 ------- ---- --- Net income before tax and other charges 504.6 715.3 Taxation (9.4) (17.4) ------- ---- --- Net income before other charges 495.2 697.9 Other charges (445.7) (362.9) Cumulative effect of accounting change (344.0) 7.8 ------- ---- --- Net income (294.5) 342.8 ------- ---- --- Diluted earnings per ordinary share before other charges and cumulative effect of accounting change $1.46 $1.91 ------- ---- --- Diluted earnings per ordinary share after other charges and cumulative effect of accounting change $(0.94) $0.95 ------- ---- --- The above reflects the finalization of the financial impact of SFAS No. 133 for 2001. The net impact of this is to increase net income before other charges and the cumulative effect of the accounting change for SFAS No. 133 by $1.4 million for 2001 and to reduce net income after other charges and the cumulative effect of the accounting change for SFAS No. 133 by $4.9 million for 2001, compared to the February 4 press release. Operating income is not affected by these adjustments. Contact Information: Investors: (U.S.) Jack Howarth Telephone: 212/407-5740 or 800-252-3526 Investors: (Europe) Emer Reynolds Telephone: 353-1-709-4000 or 00800 28352600 ===================== N E T H E R L A N D S ===================== UNITED PAN-EUROPE: Announces Extension of Waivers From Lenders -------------------------------------------------------------- Further to the announcements on February 1, 2002, and March 4, 2002, regarding United Pan-Europe Communications N.V.'s proposed recapitalization, UPC --- www.upccorp.com -- announced Monday that bank lenders and UnitedGlobalCom have extended until July 15, 2002 the waivers of the defaults arising as a result of UPC's decision not to make interest payments under its outstanding Senior Notes. The terms of the waivers remain unchanged from those announced on March 4, 2002. Should waiver extensions be required and granted in the future, UPC intends to disclose such extensions through a Form 8-K filing with the Securities and Exchange Commission. United Pan-Europe Communications N.V.'s broadband network in Europe provides television, Internet access, telephony and programming services. UPC's shares are traded on Euronext Amsterdam Exchange (UPC) and in the United States on the Over The Counter Bulletin Board (UPCOY). UPC is majority owned by UnitedGlobalCom, Inc. Contact Information: Claire Appleby Director of Investor Relations + 44 (0) 207 647 8233 Email: ir@upccorp.com ===================== S W I T Z E R L A N D ===================== SWISSAIR GROUP: Report on Creditors' Meeting -------------------------------------------- The SAirGroup creditors' meeting was held as planned on 26 June 2002, while those relating to SAirLines and Flightlease AG took place on 27 June 2002. At the meetings, the administrator of the Swissair Group, Karl Wuthrich of Wenger Plattner, gave a full report on his work to date and looked ahead to what the next steps will be. A total of 3323 creditors took part in person or by proxy in the SAirGroup creditors' meeting. Mr Karl Wuthrich was appointed as the company's liquidator. The creditors also resolved to establish a seven-strong Creditors' Committee, to which Messrs Dr. Michael Werder, Dr. Max C. Roesle, Dr. Peter Mathys, Jurg Zimmermann, Dr. Andreas Ritter, Bruno Frick and Dr. Werner Meier were elected. The administrator has drawn up an initial interim report on the investigation into the responsibility borne by the SAirGroup's governing and executive bodies. The key findings of this report have already been announced in a separate media release dated 26 June 2002. The SAirLines creditors' meeting attracted 90 creditors. Messrs Karl Wuthrich and Roger Giroud were appointed as liquidators. The creditors also voted in favour ofelecting a Creditors' Committee comprising three members, to which Messrs Dr. Daniel Hunkeler, Urs Burgi and Dr.Andreas Casutt were appointed. 82 creditors attended the Flightlease AG creditors' meeting. Mr Karl Wuthrich was appointed as liquidator. The creditors decided on a three-strong Creditors' Committee and elected Messrs Dr. Thomas Sprecher, Dr. Christoph Subli and Ludolf Rischmuller to serve on it. Creditors who were not present at the creditors' meetings will be able to submit a postal vote on the liquidation settlements. These creditors will receive the necessary information and ballot slips from the administrator in the next few days. The liquidation settlements will be deemed to have been accepted by the creditors if more than half of the creditors of the company in question vote and at least two thirds of those votes are in favour of acceptance, or if a quarter of the creditors vote and at least three quarters of the votes cast approve the agreement. The administrator will notify creditors and the media as soon as the results of the ballot are known. Contact information: Administrator's website: www.sachwalter-swissair.ch Telephone: +41 (0)1 914 27 70 =========================== U N I T E D K I N G D O M =========================== BRITISH AIRWAYS: Union Head Warns Airlines of Job Cuts ------------------------------------------------------ Comments from the new head of Britain's pilots union, Mr. John Frohnsdorff may cause trouble within the airline industry especially British Ariways in the heart of growing unrest among union members, the Financial Times said. Mr. Frohnsforff had cautioned airlines that it should stop using the September 11 event as reason for current massive job cuts and decrease in wages, the daily reported. The union head further said that they will "will step up our efforts to prevent any airline taking unfair advantage of the aftermath of September 11 to cut pilot jobs, or use it as an excuse to reduce pay and benefits or working conditions." Mr. Frohnsforff's comments shows a uncompromising stance by the union which is led by British Airways activists, the paper said. The Financial Times further said that British Airline's union has been gearing up for a fight over wages. The company's pilots are expected to push for a significant increase in wages when they submit their pay claim next month. Meanwhile, British Airways management hopes to persuade the workers to agree to a pay freeze this year. Currently, it is advocating a redundancy program focused on cutting 23% of mainline workforce, the paper reported. But with recent warnings from union members and a seemingly growing unrest among its workforce, British Airways management may have to re-evaluate its position, the paper said. COMPASS GROUP: Compass Will Sell Little Chef and Travelodge ----------------------------------------------------------- Compass, the U.K.'s catering giant, is selling its Little Chef roadside cafes and Travelodge budget hotels amid plans that it will focus mainly on its core food services business, the Independent reported. The daily wrote that British leisure group Whitebread, Six Continents and Thistle and the French hotels group Accor as some of Little Chef's interested buyers. The paper said that both service businesses are expected to fetch a o650m to o800m. The sale of the businesses will be done through two separate auction processes. Schroder Salomon Smith Barney, an investment bank, is to handle the auction. Little Chef, which Compass has started to dispose late last year, is seen to enticed several buyers especially venture capitalists, the paper said. CARLTON COMMUNICATIONS: Ratings Cut to Baa3 and P3-Moody's ---------------------------------------------------------- The long-term debt ratings of Carlton Communications Plc were recently lowered to Baa3 from Baa2 and its short-term rating to Prime-3 from Prime-2 with a negative outlook, Moody's Investors Services reported June 28. Moody's reported "that the downgrade is based on the negative impact on Carlton's core cash flows from the extended cyclical weakness in U.K. TV advertising, and the likelihood that a recovery in the Group's debt protection measurements will take longer than earlier anticipated. It also takes account of the structural challenges facing ITV in limiting the erosion of its share of the UK TV advertising market, as well as Carlton's reduced strategic options following the closure of ITV Digital." The rating agency also said "the Baa3 rating reflects the ongoing strength of ITV's position as the UK's leading commercial TV franchise, the Group's sound liquidity position, and some financial flexibility derived from its holding of Thomson Multimedia shares. This rating action concludes the review initiated in March." "The negative outlook reflected ongoing uncertainties about the extent and rate of any recovery in U.K. TV advertising, and some residual uncertainty surrounding possible costs associated with the closure of ITV Digital," Moody's added. In addition, Moody's observed that "following the 12% decline in ITV's net advertising revenues (NAR) during the year to September 2001, further significant reductions were experienced in the first six months of Carlton's current financial year. Although there have been some encouraging indicators for TV advertising, there remains some uncertainty about the extent of any recovery in Carlton's NAR in 2002/3." "The negative impact on Carlton's cash flows will be offset to an extent by the cost savings achieved by headcount reductions, channel closures and lower licence fee payments. Nevertheless in Moody's view the timing of a recovery in Carlton's cash flows is likely to be extended, and could be impacted by the costs of any fresh investments which might be undertaken by the group," the rating agency said. Furthermore, the rating agency mentioned that "the programming and organisational initiatives recently announced and undertaken by ITV, but believes that ITV's shares of viewers and NAR are likely to continue to experience significant competitive pressures. More fundamentally, the extent to which UK TV advertising will succeed in reversing the decline in its share of overall U.K. advertising spend remains uncertain." Moody's also believes that "although the closure of ITV Digital would have a positive effect on Carlton's debt profile by stemming the cash outflow associated with funding that investment, it reduces the group's potential for revenue diversification." In lieu with such observation Moody's explains that "the Baa3 rating reflects that the primary strategic focus of the group in the medium-term is on improving the profitability of its core channel 3 franchise, and that cash financed investments in content and screen advertising should be modest. "Carlton has provided for its share of liabilities arising from ITV Digital's closure, and the winding-up of the ITV Sport channel, but in Moody's view there remains some residual uncertainty surrounding possible costs associated with the liquidation process, which is expected to last up to twelve months." Lastly, Moody's believes that "the sale of Thomson Multi Media loan notes had helped offset investment in ITV Digital, and was reflected in lower net debt reported at March 2002. In addition, the issue of a ?638 million bond exchangeable into Thomson Multi Media shares has significantly boosted the group's liquidity position. Prospectively, the Baa3 rating anticipates that group net debt will rise moderately during the second half of 2002, but should stabilize thereafter." Moody's further said "the rating reflects Moody's understanding that the cash proceeds from the issue of the exchangeable bond will be managed with due regard to the possible repayment of the bond in January 2005, and that Carlton's holding of 15.5 million shares of Thomson Multi Media will be managed such as to underpin the Group's financial flexibility. Finally, in Moody's view the reduction in Carlton's core cash flows will result in the Group's debt protection measurements becoming stretched in 2001/2, before beginning to recover in 2002/3." EQUITABLE LIFE: Forced to Increase Penalties to Avoid Insolvency ---------------------------------------------------------------- Equitable Life's imminent insolvency looms ahead following Chairman Vanni Treves's admission that he was forced to impose further penalties on his 900,000 members due to the recent stock market slump, the Independent reported. The daily said that Mr. Treves has revealed that there will be an increase in Equitable's penalties. The increase covers those who are contemplating on withdrawing their money and for those who will choose to take benefits. In addition, Equitable revealed that a fifth will be deducted from the money of those who will surrender their policies. As for investors who will choose to take benefits, a tenth of their policy maturity values will be cut, the paper said. The report also said that Mr. Treves confirmed that Equitable "is still solvent and will continue to meet our regulatory capital requirements. The board's primary objective is to act in the best interest of continuing policyholders." Equitable also disclosed that it expect to announced other deductions from its with-profit fund in its half-year results this coming autumn, the paper added. EUROTUNNEL GROUP: Company Profile --------------------------------- Name: Eurotunnel Group Cheriton Parc, Cheriton High St. Folkestone, Kent CT19 4QS, United Kingdom Telephone: +44-1303-273-300 Fax: +44-1303-282-026 Email: press@eurotunnel.com Web ite: http://www.eurotunnel.com SIC: Transport Engineering Employees: 3,615 Net Loss: US$192.1 million (2001) Total Assets: US$13.5 billion (2001) Total Liabilities: US$10.7 billion (2001) Type of Business: Transportation services between the U.K. and France via the Channel Tunnel. The Eurotunnel Group Companies's main activities include the design, funding, construction and operation of the Fixed Link (the project), under the terms of the Concession. The Eurotunnel Group, controlled by U.K.-based Eurotunnel plc and France-based Eurotunnel SA, owns and operates the "Chunnel" (Channel Tunnel) and its railway system, which carries passengers, vehicles, and freight between Folkestone and Calais/Coquelles. Trigger Event: Eurotunnel's financial crisis began last year after posting an operating profit of GBP183 million. The group also incurred net loss of GBP147 million after incurring interest charges of GBP330 million last year. The Anglo-French company's has debt of about US$10 billion. Chief Executive Officer: R Shirrefs Chief Financial Officer: R Burge Chairman: C D Mackay Bankers: National Westminster Bank PLC, HSBC Bank PLC, Credit Lyonnais Bamk Nederland NV, Banque Nationale de Paris Financial Advisers: Dresdner Kleinwort Wasserstein, Credit Commercial de France Stockbrokers: Dresdner Kleinwort Wasserstein Securities Ltd Auditors: KPMG Law Firms: Herbert Smith No. of Shares in Issue: 2.1 billion shares Last published in TCR-Europe: May 31, 2002 RAILTRACK PLC: PLC's Baa1 Long-Term Rating Confirmed - Moody's -------------------------------------------------------------- Railtrack Plc's Baa1 long-term debt rating was confirmed June 28 with a stable outlook, Moody's Investors Services revealed. The rating concludes Moody's review on the company, which began October 9, 2001. Railtrack Plc's short term rating was confirmed P2 by Moody's last October 2001. In its released statement, Moody's said that "the confirmation was prompted by the announcement that Network Rail Limited has entered into an agreement to purchase Railtrack PLC from its parent Railtrack Group PLC for an amount of GBP 500 million." Furthermore, Moody's noted "that Network Rail has negotiated a GBP 9 Billion loan facility underwritten by a number of major banks, the proceeds of which are to be used to fund the purchase price, repay most of Railtrack's debt, and meet the immediate cash requirements of the Railtrack business. Network Rail has also negotiated certain elements of tangible credit support from the Strategic Rail Authority (an agency of the U.K. Government)." According to Moody's "Network Rail has announced its intention to prepay all of the Railtrack debt rated by Moody's shortly after the Acquisition is completed, which is expected to be in August 2002. Network Rail has said that the debt is to be repaid at par, or an amount calculated in accordance with an agreed 'single A' yield spread and a relevant reference gilt yield, calculated separately for each class of bond, to reflect changes in market bond prices since the relevant bonds were issued, if this produces a redemption amount higher than par value." In addition, Moody's said it "does not believe that there is a significant likelihood that an alternative proposal to the Acquisition will be tabled prior to the consummation of the Acquisition." Moody's enumerated a number of conditions for its consummation. The most significant are: -Railtrack Group PLC shareholders' approval, -the approval of the European Commission to the amount and the terms of the support provided to Network Rail by the Strategic Rail Authority (i.e. 'State Aid' clearance), -the lifting of the Railway Administration Order to which Railtrack has been subject since October 2001, -agreement by Railtrack bond holders to the terms of the prepayment of the Railtrack bonds. "Railtrack PLC's Baa1 long term rating based on its belief that the Acquisition will be consummated and the debt rated by Moody's will be repaid in full shortly thereafter," Moody's added. The rating agency further comments that its "believes that Railtrack Group PLC shareholders will agree to the terms of the Acquisition. Railtrack Group PLC's Board of Directors have recommended approval to shareholders and announced yesterday that the Board currently estimates that, were all the Group's assets to be realised as expected and were no further liabilities to arise, Railtrack Group would be able to return between 245 and 255 pence per Share." "The value proposition arising from the Acquisition is, on balance, likely to discourage Railtrack Group PLC shareholders from rejecting the Acquisition, as such an action would most likely give rise to a significantly greater uncertainty of recovery," Moody's said. Lastly, Moody's said that Railtrack Plc "will be able to do this. The GBP 9 Billion bank facility to be raised by Network Rail will be used to prepay most of the Railtrack debt and will be used to satisfy other Railtrack creditors as and when they fall due." Moody's assigned the stable outlook with the "view that the conditions precedent to the Acquisition will be met. However should one or more not be met and the failure cannot be accommodated in some way, then negative rating actions may follow." WORLDCOM, INC: WorldCom Delivers Requested Explanation to SEC ------------------------------------------------------------- WorldCom, Inc. -- http://www.worldcom.com-- announced in a statement Monday that, as requested, it has delivered to the Securities and Exchange Commission (SEC) a detailed explanation of events that led to its notifying the agency of its intent to restate its financial results for 2001 and the first quarter of 2002. In the filing, the company explained that as a result of an internal audit of the company's capital expenditure accounting, it determined that certain transfers from line cost expenses to capital accounts during this period were not made in accordance with generally accepted accounting principles (GAAP). "Today's (July 1,2002) filing is consistent with our pledge to be forthright and open, and to cooperate fully with both internal and external investigations," said John Sidgmore, who became WorldCom president and CEO two months ago. "We will continue to be proactive in reviewing our operations and reporting our findings. This company is absolutely committed to operating in accordance with the highest ethical standards." Separately, WorldCom said that, as expected, it has received a notice of termination of its US$1.5 billion accounts receivable securitization program. The company now cannot sell any new accounts receivable into the program, and collections on accounts receivable in the program will be used to pay down the approximately US$1.2 billion outstanding under the program. The company believes that the receivables in the program are sufficient to repay the amounts outstanding. Also, as expected, WorldCom's lenders under its US$2.65 billion and US$1.6 billion senior unsecured credit facilities have notified the company that events of default had occurred and that they have reserved their rights and remedies under the facilities. These events permit lenders holding 51 percent of the loans under the US$2.65 billion facility to vote to accelerate the date for repayment of the loans, which would then become immediately due and payable if the lenders chose to do so. "These notifications were anticipated," said Sidgmore. "We are engaged in discussions with lenders regarding replacement facilities and remain optimistic that our good working relationships will ultimately reach a positive resolution." The company also said it received notice from Nasdaq stating that the company has failed to comply with certain filing and fee requirements for continued listing set forth in Marketplace Rules 4310(c)(13) and 4310(c)(14) and that its securities are, therefore, subject to delisting from The Nasdaq National Market. The notice said that the company's securities will be delisted at the opening of business on July 5, 2002 but that the delisting will be stayed if the company requests a hearing, in accordance with Nasdaq rules. WorldCom's Audit Committee is reviewing the company's financial records for 2001, 2000, and 1999 and has requested KPMG's assistance in this review, including of certain material reversals of reserve accounts during 2000 and 1999. If, after review, the company believes additional actions are required, it will make an announcement promptly. WORLDCOM, INC: Announces MCI Group Dividend Will Be Paid July 15 ---------------------------------------------------------------- WorldCom announced on July 1, 2002 that its present intention to pay the MCI group dividend for the second quarter of 2002 will be as scheduled on July 15. WorldCom, Inc. is a pre-eminent global communications provider for the digital generation, operating in more than 65 countries. With one of the most expansive, wholly owned IP networks in the world, WorldCom provides innovative data and Internet services for businesses to communicate in today's market. Effective as of the close of regular trading on July 12, 2002, WorldCom will eliminate its tracking stock structure and have one class of common stock. WORLDCOM, INC: S&P Cuts Ratings to "CC", Puts Co. on Credit Watch ----------------------------------------------------------------- Troubled U.S.-based company Worldcom had its long-term corporate credit and senior unsecured debt ratings has been downgraded to 'CC' from "CCC", revealed Standard & Poor's, reports acquired from AFX News said. AFX said the downgrade was confirmed after the company announced that it received a notice of termination of its 1.5 bln usd accounts receivable securitization program. It is said that all ratings are still on CreditWatch with a negative outlook. The daily also reported that the S&P's downgrade was based on confidence issues. There is doubt that Worldcom is capable of paying its outstanding debts of US$ 30 billion since March 31. Another reason is based mainly on negative news surrounding Worldcom and its imminent debt restructuring under Chapter 11 in the near future. The company currently faces a legal investigation from the US SEC on matters of accounting fraud. WORLDCOM, INC: CEO John Sidgmore Responds to U.S. President ----------------------------------------------------------- WorldCom, Inc. president and CEO John Sidgmore sent the following letter dated June 27, 2002 to U.S. President George W. Bush. Text of the letter follows: Yesterday you rightly expressed outrage and concern about past accounting irregularities at WorldCom. I want you to know that we, the current management team, are equally surprised and outraged. That is why we immediately brought this matter to the attention of the SEC and the public. I am proud that our own people discovered these irregularities and had the courage and professionalism to act quickly. In that spirit, this letter reaffirms our commitment to working with you and the appropriate agencies to investigate this serious matter, and to set an example by accepting responsibility and taking decisive action, including: * We have retained William McLucas, former Chief of the Enforcement Division of the Securities and Exchange Commission, to conduct a rigorous, independent investigation of these irregularities. * We have dismissed our chief financial officer and accepted the resignation of our controller. We will take further action as the investigation warrants. * We are in close consultation with our banks to secure additional lines of credit to preserve our ability to finance our debt. * We are selling our non-core businesses and taking other actions to raise more than $1 billion. We are also trimming $1 billion in expense by refocusing on our core businesses. We are dedicated to preserving the value of our company and its long-term viability for our employees, our customers, lenders, suppliers and shareholders in the wake of our findings. We feel a tremendous sense of responsibility to these groups, and to the general public. Seven weeks ago, as I assumed the position of CEO of WorldCom, Bert Roberts, our Chairman, and I pledged to restore trust in this great company. Never did we imagine it would be put to such a test. However, part of restoring trust means being straight about problems as we discover them -- and aggressively solving them. This is the only way we will rebuild our company's credibility. You have our commitment that we will continue to do this. COLT TELECOM: Announces 10 Million Bond Buyback ------------------------------------------------ COLT Telecom Group plc (COLT), a leading European provider of business communication services, said Monday that it had purchased an additional 10 million COLT bonds for a cash outlay of 4 million pounds. The purchases were undertaken by COLT Telecom Finance Limited as set out below. COLT Telecom Finance Limited has no intention to sell the notes it has purchased and arrangements may be made in due course to cancel such notes. COLT may purchase additional bonds in the future. Contact Information: John Doherty Director Investor Relations Email: jdoherty@colt.net Telephone: +44 20 7390 3681 ************ 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, Maria Lourdes Reyes and Jean Claire Dy, Editors. Copyright 2002. 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 * * *