/raid1/www/Hosts/bankrupt/TCREUR_Public/020723.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
Tuesday, July 23, 2002, Vol. 3, No. 144
Headlines
* F R A N C E *
LVMH: Names Serge Brunschwig New Managing Director
* G E R M A N Y *
ARTHUR ANDERSEN: German Unit Gobbled up by Deloitte's Braxton
BABCOCK BORSIG: Spanish Unit Could Lose Contract With Endesa
CALLAHAN GMBH: Liberty Media Expected to Pounce on Ish
COMMERZBANK AG: To Save EUR50 Million in Business Unit Overhaul
DAIMLERCHRYSLER AG: Posts Earnings in Q2 Despite Market Downturn
DEUTSCHE TELECOM: Ex-Mannesmann Chief Rumored to Replace Sommer
DEUTSCHE TELEKOM: Still Plans to Make Debt Reduction Top Priority
DZ BANK: To Float Insurance, Funds Subsidiaries in Medium Term
EPCOS AG: Recovery Stalled in the Q3 of Fiscal 2002
EPCOS AG: Expects to End Year in Red Due to Worsening Slump
KLING JELKO: Threatening Loss Results in Shareholders Meeting
PHILIPP HOLZMANN: Sells Dutch Subsidiary to Dura Vermeer
* N E T H E R L A N D S *
IFCO SYSTEMS: IFCO Systems N.V. Announces Q1 2002 Results
* S W E D E N *
LM ERICSSON: To Sell Rights at 74% Discount Due to Market Slump
* U N I T E D K I N G D O M *
CONSIGNIA: Plan to Cut Operating Units to Two Will Save GBP50 MM
ENERGIS PLC: Sells German Unit to Easynet for EUR3.4 Million
MARCONI PLC: Completes Signaling Infrastructure Upgrade
WORLDCOM INC.: Files for Chapter 11 Bankruptcy in New York
WORLDCOM INC: Consolidated Balance Sheet at March 31, 2002
WORLDCOM INC: Case Summary
WORLDCOM INC: List of the Debtor's 50-Largest Unsecured Creditors
===========
F R A N C E
===========
LVMH: Names Serge Brunschwig New Managing Director
-----------------------------------------------------
LVMH, the world's leading luxury products group, today announced
the appointment of Serge Brunschwig as Managing Director of Louis
Vuitton Malletier, in charge of commercial operations, effective
as of 1st September 2002.
In his new position, Serge Brunschwig will report to Marcello
Bottoli, President and CEO of Louis Vuitton Malletier, the
world's leading luxury brand; he will be responsible for the
Louis Vuitton store network and logistic operations.
Serge Brunschwig joined the LVMH Group in 1995, to take charge of
Louis Vuitton in South-East Asia. From 1999 onwards, he was
President of LVMH Fashion Group for the Asia-Pacific region,
before being appointed managing director and then President and
CEO of Sephora Europe.
A new president and CEO of Sephora Europe will be appointed
shortly. In the meantime, Pierre Letzelter, Chairman of the
Sephora Group, will be President of Sephora Europe, which is in a
significant stage of development and profit growth, particularly
in Eastern Europe.
Pierre Letzelter joined the LVMH Group in 1994 as president and
CEO of Moet & Chandon, and then successively held the positions
of President of the LVMH Wines & Spirits Group from 1996 and
President of the LVMH Selective Retailing activities from 1999.
He has been Chairman of the Sephora Group since September 2001.
CONTACT: LVMH
Analyst and investors:
Chris Hollis
+ 33 1 44 13 21 22
or
Media:
DGM
France:
Michel Calzaroni
Olivier Labesse
+ 33 1 40 70 11 89
or
Financial Dynamics
UK:
Alison Allfrey
+ 44 207 831 31 13
or
Financial press:
D & C Financial Communications
Italy:
Fabio Raineri
Paola Di Raimondo
+ 39 02 438 11 41
or
Fashion press:
Studio Settantacinque
Wilma Sarchi
+39 02 805 18 26
or
Kekst and Company
US:
James Fingeroth
Molly Morse
212/521-4800
=============
G E R M A N Y
=============
ARTHUR ANDERSEN: German Unit Gobbled up by Deloitte's Braxton
-------------------------------------------------------------
Arthur Andersen's German consulting unit signed last week a
letter of intent to merge with Braxton, the newly renamed
consulting unit of Deloitte Touche Tohmatsu in Germany.
The merger will make the former Deloitte Consulting GmbH the
fifth largest management-consulting firm in the country.
Handelsblatt says Braxton beat a number of other competitors for
the deal, including International Business Machines Corp.
Since the Enron scandal in the U.S., many of Arthur Andersen's
foreign affiliates, including Arthur Andersen Business Consulting
GmbH in Germany, have sought to distance themselves from the U.S.
parent in order to regain access to international contracts.
A number of other foreign firms have also tried to reduce
association with tainted U.S. firms in line with demands by
securities regulators in both the U.S. and Germany to keep
auditing operations separate from consulting.
PricewaterhouseCoopers LLP's consulting firm PwC Consulting
announced last month that it will change its name to "Monday",
once it is separated from its accounting parent. Braxton was
until recently a unit of accounting firm Deloitte Touche
Tohmatsu. It also changed its name following separation from its
parent company, the paper said.
BABCOCK BORSIG: Spanish Unit Could Lose Contract with Endesa
------------------------------------------------------------
Babcock Borsig Espana, the Spanish unit of insolvent German
conglomerate Babcock Borsig, could lose out on a contract for the
construction of two combined cycle power plants for Endesa, El
Pais said late last week.
According to the paper, the insolvency of the German parent
brings back the uncertainty that for a while now has defined the
unit's future. Less than a year ago, anxiety hit workers, as the
difficult privatization process cast doubts on their job
security.
Babcock Borsig bought the Spanish subsidiary eight months ago for
EUR45 million, promising to invest EUR135.23 million and not to
lay off employees for a period of five years. Insiders now claim
that the German parent never intended to invest that amount.
The report did not say how much the Spanish unit will lose if it
forfeits the contract with Endesa. The power firm is Spain's
largest electricity group.
CALLAHAN GMBH: Liberty Media Expected to Pounce on Ish
------------------------------------------------------
Analysts expect Liberty Media to use the insolvency of Callahan
Nordrhein-Westfalen GmbH to cheaply acquire main cable-TV unit
Ish, Handelsblatt reported Sunday.
The cable group filed for insolvency on Friday, but clarified
that none of its subsidiaries would be affected by the filing and
they would continue to operate under allotted budgets. The
company's woes are related primarily to its inability to meet
bond-interest payments, the paper said.
Liberty Media Corp. has already expressed interest in Ish GmbH &
Co KG, leading analysts to believe that the insolvency filing
increases the potential for a takeover.
Callahan is jointly owned by U.S. investor Callahan Associates
International LLC, which holds a 55% stake, and Germany' Deutsche
Telekom AG, which holds the remaining 45%.
COMMERZBANK AG: To Save EUR50 Million in Business Unit Overhaul
---------------------------------------------------------------
Slumping Commerzbank AG is hoping to save EUR50 million in its
private-clients business by cutting jobs and working hours as
outlined in a new redundancy plan.
Plan proponent Martin Blessing, a supervisory board member, says
some 7,500 workers in around 725 branch offices will be asked to
work 31 hours instead of 39, and to take a pay cut of 20% -- this
in order to save 900 jobs, which will otherwise be at risk.
Already, 3,400 of the 39,500 jobs in the bank's private-clients
business are scheduled to be cut by the end of 2003, the paper
says.
Mr. Blessing says the plan will bring about a EUR50 million
improvement in the result of Commerzbank's private-clients
business. In 2001, this business unit incurred a loss of EUR185
million.
A Commerzbank spokesman said the EUR50 million improvement was
already factored into the bank's cost-cutting program, which is
aimed at bringing down group-wide costs from the 2001 level of
EUR5.86 billion back to the 2000 level of EUR5.5 billion euros.
"The proposed model could prove thoroughly sensible, provided
that certain key criteria are met," Uwe Foullong, a finance
expert from trade union Verdi, told the German daily in an
interview.
The wage agreement that Verdi has signed with the banks provides
for the possibility of a cut in the working week from 39 hours to
31 hours. But any implementation of a plan to this effect must
be agreed with the works council. And this option is limited to
December 31, 2003, whereas Commerzbank wants to extend its
proposed cuts in the working week beyond that date, according to
Mr. Foullong. This the works council has rejected.
On top of that, Mr. Foullong criticized the management for
deliberately trying to unsettle the workforce by warning that 900
jobs were at risk if the proposal is not implemented. This, he
said, is poor management practice by a board that already starts
thinking of the next round of job cuts before the ink is dry on
the latest redundancy plan.
DAIMLERCHRYSLER AG: Posts Earnings in Q2 Despite Market Downturn
----------------------------------------------------------------
In the second quarter of 2002, DaimlerChrysler (stock market
code: DCX) continued the positive trend of the first quarter,
despite the generally difficult market conditions. Operating
Profit excluding one-time effects increased to Euro 1.9 billion
(Q2 2001: Euro 0.7 billion). This result was primarily due to the
strong improvement in profitability at Chrysler Group.
Including one-time effects, Operating Profit of Euro 1.7 billion
was 80% higher than in the second quarter of last year. The
implementation of the Turnaround Plan at Chrysler Group
necessitated additional restructuring expenditure of Euro 374
million, as DaimlerChrysler had announced in February 2001.
At the Commercial Vehicles Division there was a one-time charge
of Euro 39 million as a result of restructuring measures,
particularly in Western Europe and Brazil.
These restructuring measures also require manpower reductions.
The sale of DaimlerChryslers remaining 40% equity interest in
TEMIC resulted in a one-time gain of Euro 156 million.
Net Income excluding one-time effects rose to Euro 1.2 billion
(Q2 2001: Euro 0.5 billion) and Earnings per Share improved to
Euro 1.21 (Q2 2001: Euro 0.53).
Including one-time effects, Net Income amounted to Euro 1.1
billion (Q2 2001: Euro 0.7 billion) and Earnings per Share
reached Euro 1.10 (Q2 2001: Euro 0.73).
In the first half of 2002, Operating Profit rose from Euro minus
2.8 billion in H1 2001 to Euro 4.8 billion, adjusted for one-time
effects from Euro 0.1 billion to Euro 3.0 billion. Net Income
increased from Euro minus 1.6 billion to Euro 3.8 billion,
adjusted for one-time effects from Euro 0.2 billion to Euro 1.7
billion. Earnings per Share rose to Euro 3.75 (H1 2001: Euro
minus 1.62), adjusted for one-time effects to Euro 1.71 (H1 2001:
Euro 0.16).
Outlook for full-year 2002
DaimlerChrysler remains cautious as far as developments for the
remainder of 2002 are concerned. To date DaimlerChrysler has made
significant progress regarding the factors that can be influenced
internally, and this should continue. That said, the signals that
DaimlerChrysler is receiving from its main markets still show a
rather growing uncertainty as far as political and economic
developments are concerned. Against this background, the overall
results of the first half of 2002 cannot just simply be
transposed into the second half of the year. DaimlerChrysler
recognizes, for instance, that the third quarter is traditionally
weaker in the automotive industry.
Nevertheless, DaimlerChrysler is lifting its outlook for the
Group for 2002. So far the expectation was that Operating Profit
excluding one-time effects would exceed twice the level of 2001
(Euro 1.35 billion) by a significant amount. DaimlerChrysler now
expects that Operating Profit excluding one-time effects will be
substantially more than three times the level of 2001.
DEUTSCHE TELECOM: Ex-Mannesmann Chief Rumored to Replace Sommer
---------------------------------------------------------------
Rumors that former Mannesmann AG CEO Klaus Esser is set to take
over the reins at Deutsche Telekom, following the resignation of
Ron Sommer, pushed the firm's stocks up more than 8% last week, says
Handelsblatt.
Mr. Esser is believed to be close to interim chief Helmut Sihler,
who used to head chemicals group Henkel and have had contacts
with the ex-Mannesmann chief during this time.
Speculations that the executive, who successfully transformed
Mannesmann from an engineering company into a telecoms provider,
would bring his magic to Deutsche Telekom, made the ailing firm
one of the Dax-30 biggest winners for three straight days last
week.
It was during Mr. Esser's time when Mannesmann attracted the
attention of mobile-phone giant Vodafone, which eventually
acquired it in 2000 in one of Germany's largest ever takeover
deals.
"From the point of view of the markets, Esser would represent a
very good solution," Sal. Oppenheim analyst Frank Rothauge told
Handelsblatt.
Industry insiders said Thursday that Mr. Sihler was not expected
to present his new strategy for reducing Telekom's debts and
costs before August 21, when the group is due to present its
half-year results.
Market observers noted that the recent surge in Telekom's share
price had taken place amid high turnovers and increased
volatility. Of Germany's 30 leading blue chips, more than 100
million shares have of late been changing hands daily. Telekom
shares have been accounting for around one third of this daily
trading volume, the paper said.
DEUTSCHE TELEKOM: Still Plans to Make Debt Reduction Top Priority
-----------------------------------------------------------------
Interim CEO Helmut Sihler will maintain the course taken by
former chief Ron Sommer, who had earlier planned to bring down
the company's debts to EUR50 billion by the end of 2003.
Internally called "target 50," the plan includes cutting
investment and marketing budgets and pulling forward the
announced sale of Telekom's property assets, the Financial Times
says.
Mr. Sihler is expected to announce a restructuring program on
August 21 when Deutsche Telekom releases its half-year earnings,
but many don't expect this to be substantially different from the
original plan. A spokesman said Mr. Sihler would make debt
reduction a top priority.
"We have outlined a clear course to reduce debt and we have said
repeatedly that we will look at all activities to discern what is
core activity," the spokesman told the paper. The company's debt
stood at EUR67 billion at the end of March.
DZ BANK: To Float Insurance, Funds Subsidiaries in Medium Term
--------------------------------------------------------------
DZ Bank, which in April slipped to "D+" in Moody's ratings board,
plans in the medium term to carry out initial public offerings of
shares in its insurance and funds subsidiaries, R+V Versicherung
and Union Fonds Holding, Handelsblatt said.
Citing an interview by Wirtschaftswoche, the German daily said
CEO Ulrich Brixner is keen on executing the public offering, but
would not cede its majority stakes in the two units.
Right now, the bank holds 76.8% in Union Fonds Holding and 78.1%
in R+V Versicherung. It also holds shares in mortgage bank DG
Hyp (100%), building society Schw"bisch Hall (87,9%), leasing
company VR-Leasing (83,5%) and bws Bank (83,2%), the paper said.
Mr. Brixner said the proceeds from the two IPOs would be used to
finance further growth of these subsidiaries.
DZ Bank was formed towards the end of last year from the merger
of two of Germany's biggest cooperative banks: Deutsche
Genossenschaftsbank, or DG Bank, and Genossenschafts Zentralbank,
or GZ-Bank.
In April, Moody's said the impending KirchGruppe bankruptcy had
undermined the bank's financial strength rating and as a result
deserved a downgrade from "C-" to "D+".
According to Moody's, the deterioration in the bank's financial
fundamentals is reflected by the fact that it could only
partially cover the significant increase in loan loss provisions
with its modest profits and therefore had to release hidden
reserves, which were already strained after higher loan loss
provisions in 2000.
The ratings agency put the bank on review in November last year
after its announcement that risk provisions for the financial
year 2001 would amount to around EUR500 million. These provisions
were subsequently increased again when the bank presented its
preliminary results for 2001.
Moody's says it will review further the "D+" financial strength
rating, focusing on the level of potential losses due to its
exposure to Kirch and its financial flexibility to cover these
potential losses with its own resources.
In addition, it will also examine whether the level of loan loss
provisions made in 2001 is sufficient to cover any further
deterioration in the bank's asset quality, especially in view of
the economic slowdown in Germany and the growing number of
company defaults.
Moody's, however, maintained the bank's A2/P-1 short and long-
term deposit ratings. Accordingly, this rating still reflects
"the underlying support relationship that is shared among the
German cooperative banking movement, principally in the form of a
guarantee fund and cooperative guarantee agreement, which
underpin the acceptable cohesiveness within the sector."
Headquartered in Frankfurt, DZ Bank is the sixth largest banking
group in Germany and had pro-forma assets of around EUR360
billion as of June 2001.
EPCOS AG: Recovery Stalled in the Q3 of Fiscal 2002
---------------------------------------------------
Compared to the previous quarter, sales of EPCOS were down by 3%
to around 329 MM euro in the 3rd quarter of fiscal 2002 (April to
June). Also, orders of 316 MM euro did not reach last quarter's
level of 332 MM euro.
The slump in demand was most pronounced in Germany, especially in
the area of automotive electronics and telecommunications.
EBIT in the 3rd Quarter is likely to be negative by 16 MM euro.
Earnings per Share for the 3rd quarter therefore will be around
-14 euro-cents.
The decrease in sales has been caused by various conditions:
- price declines over Q2 of 4 to 5%, which were above
expectations,
- foreign exchange losses of around 7-8 mn Euro, especially due
to the significant devaluation of the Brazilian Real,
- higher than expected costs from relocation of production
processes as well as start-up costs for promising future projects
for telecommunications (ceramic modules) and automotive
electronics (piezo actuators).
Due to the continuously difficult economic environment EPCOS does
not expect an improvement in the current 4th quarter ( July to
September).
"The promising recovery of orders in the last quarters did not
continue. Our business is stagnant, growth stimuli are lacking
and the price pressure is persisting. Therefore, we must
intensify our efforts to lower costs even more. All areas of the
company must contribute to further savings", said Gerhard Pegam,
CEO of EPCOS AG.
Currently further restructuring measures are being taken which
are expected to result in one time charges of around 30 mn Euro
in the 4th quarter.
EPCOS will publish final results for the third quarter on July
31st and will then also host a conference call to discuss
details.
EPCOS AG: Expects to End Year in Red Due to Worsening Slump
-----------------------------------------------------------
German passive components maker Epcos AG is not expecting this
year to end on a good note, and it appears convinced that it will record
huge losses this year, AFX News says.
The company on Saturday posted a nine-month EBIT loss of EUR8
million, and said that it expects no improvement in the fourth
quarter, adding that it will book a restructuring charge of 30
million in said quarter.
"It is then only to be expected that we will definitely post a
double-digit million-euro EBIT loss... Sales will fall around 30
percent," an unnamed spokesman told AFX News.
Shares in Epcos AG lost nearly a fifth of their value Saturday
following the latest earnings report. The company said the slump
in the third quarter adversely affected its restructuring
efforts, which will cost EUR30 million in the fourth quarter.
KLING JELKO: Threatening Loss Results in Shareholders Meeting
-------------------------------------------------------------
The Management Board of Kling Jelko Wertpapierhandelsbank AG has
filed notice with the German Financial Supervisory Authorities
according to Section 46b KWG, as a result of the company's inability
to pay due debts.
Further, the Management Board of Kling Jelko
Wertpapierhandelsbank AG will call an extraordinary Shareholders'
Meeting.based in response to a loss in an amount of half of the
share capital of the Company.
Since Sputz AG is holding 50,1% of the shares of Kling Jelko
Wertpapierhandelsbank AG, a loss in participation is threatening
to Sputz AG.
The Managing Director
In case of further questions
Sputz AG (WKN: 724144)
Investor Relations
Bleidenstraáe 6-10
Tel.: +49 69 1330-1155
Fax: +49 69 1330-1111
e-mail:email@spuetz.de
Internet: http://www.spuetz.de
PHILIPP HOLZMANN: Sells Dutch Subsidiary to Dura Vermeer
--------------------------------------------------------
Philipp Holzmann administrator Ottmar Hermann announced over the
weekend the sale of Dubbers Malden to Dutch counterpart Dura
Vermeer for an undisclosed amount.
Reuters says the tunnel-and bridge-builder posted 2001 sales of
around EUR30 million euros (US$30.23 million) and employs 100
workers in the Netherlands. Buyer Dura Vermeer, on the other
hand, is engaged in construction projects throughout the
Netherlands, has 3,500 employees and posted sales of some EUR900
million last year.
Philipp Holzmann filed for insolvency in March after a frantic
last-ditch attempt to broker a rescue plan failed, two years
after its dramatic 1999 rescue orchestrated by Chancellor Gerhard
Schroeder. The collapse of the 150-year-old firm, which played a
major part in rebuilding Germany's bomb-shattered cities after
World War II, sparked interest from at least six potential
buyers.
But talks to sell Holzmann's domestic business, which generates
annual sales of around EUR325 million, to Dutch competitor
Heijmans collapsed last month because of problems regarding the
limitation of risks for Heijmans and difficulties obtaining
financing from banks.
=====================
N E T H E R L A N D S
=====================
IFCO SYSTEMS: IFCO Systems N.V. Announces Q1 2002 Results
---------------------------------------------------------
Financial Performance
Q1/02 Q1/01 Variance
Actual Prior Year US$ %
REVENUES --------- ---------- --------- ---------
RPC Rentals 35,525 35,605 -80 -0.2%
RPC Granulate 2,686 4,549 -1,863 -41.0%
Sales --------- --------- --------- ---------
RPC 38,211 40,154 -1,943 -4.8%
--------- --------- --------- ---------
Pallet Services 53,089 54,057 -968 -1.8%
Pallet Pooling
Services 3,955 4,292 -337 -7.9%
--------- --------- --------- ---------
Total 95,255 98,503 -3,248 -3.3%
--------- --------- --------- ---------
Total Revenues w/o
Granulate Sales 92,569 93,954 -1,385 -1.5%
--------- --------- --------- ---------
EBITDA
RPC Rentals 6,657 4,244 2,413 56.9%
RPC Granulate Sales 2,686 4,549 -1,863 -41.0%
--------- --------- --------- ---------
RPC 9,343 8,793 550 6.3%
--------- --------- --------- ---------
Pallet Services 4,011 4,418 -407 -9.2%
Pallet Pooling
Services -471 56 -527 -941.1%
--------- --------- --------- ---------
Total 12,883 13,267 -384 -2.9%
--------- --------- --------- ---------
Total w/o Granulate
Sales bef. NV
Overhead 10,197 8,718 1,479 17.0%
--------- --------- --------- ---------
NV Overhead -989 -1,298 309 -23.8%
--------- --------- --------- ---------
Total EBITDA after
NV O 11,894 11,969 -75 -0.6%
--------- --------- --------- ---------
Total EBITDA w/o
Granulate Sales 9,208 7,420 1,788 24.1%
--------- --------- --------- ---------
General Comments:
The results overall reflect the difficult trading environment
experienced by the Company, particularly in Europe where volumes
in the food retail sector declined in Q1 2002. Revenues were also
affected by the uncertainty surrounding the Company during the
financial restructuring process. However, the EBITDA performance
reflects the positive impact of the effect of the cost reduction
and efficiency measures that were implemented across the
businesses in 2001.
In connection with the upgrade program of the RPC pool, which
includes the migration to the new generation crates, that the
Company is undertaking over the next few years, the Company
negotiated a new supply agreement, with SWS AG ("SWS"), effective
as of Jan. 1, 2002. Whereas previously the Company generated
revenues from the sale of RPC granulate to SWS, the Company will
now supply SWS with the material needed for the production of new
RPCs. Therefore, granulate will no longer be sold to SWS for a
guaranteed repurchase price; instead, the Company transfers RPCs
to SWS and only pays production costs for the new generation
RPCs. For comparison purposes, revenues and EBITDA including and
excluding granulate sales are both shown.
The Company has taken the decision to allocate NA overhead
expenses to the North American business segments rather than
remaining as a separate line. Since two business divisions were
sold in 2001, overheads are now allocated directly to either
Pallet Services, RPC US or Pallet Pooling in Canada. This will
reduce complexity and the only Overhead now stated is that on the
NV level. Prior quarters have been adjusted to reflect this
change. The numbers in the table and in the text refer to
continuing businesses only, from which Argentina (deconsolidated
at end 2001) and ISL (terminated in 2001) have been excluded.
Revenues: Total revenues, without granulate sales, were 1.5%
lower in Q1 2001, primarily due to slightly lower revenues in the
RPC division in Europe and Pallet Services in the US. RPC
revenues, without granulate sales, declined by US$1.9m to
US$38.2m compared to the same period in the previous year. RPC
Trips in Q1 2002 remained unchanged compared with Q1 2001 at
US$58.7m. Revenues in the Pallet Services division continued to
be affected by pricing pressure similar to that experienced in Q4
2001. The company expects prices to stabilise and demand to
increase in Q2 2002.
EBITDA: The total EBITDA performance, without granulate sales,
was 24.1% higher compared to Q1 2001, despite lower total
revenues. The EBITDA performance for RPC, without granulate
sales, increased by 56.9% compared to Q1 2001, due to the cost
savings derived from the extensive cost improvements undertaken
in 2001 coming through to the bottom line. RPC US was
particularly strong. The pricing pressures that were experienced
by the Pallet Services division had an impact on the EBITDA,
which declined by 9.2% from US$4.4m in Q1 2001 to US$4.0m in Q1
2002. The problems experienced by the Pallet Pooling division in
Canada, referred to at the time of the full year 2001 results,
continued to have a negative effect in Q1 2002, with an EBITDA
loss of US$0.5m. The company nevertheless expects this division
to return to a positive EBITDA performance in Q2 2002.
Margins: The total EBITDA margin, without granulate sales,
improved by 26.0% in Q1 2002, from 7.9% in Q1 2001 to 9.9% in Q1
2002. The main uplift in margins was experienced in the RPC
division with margins at 18.7% compared to 11.9% in the same
quarter the previous year. This increase was due to the improved
cost structure of this business segment following the measures
that were initiated in 2001. Margins in the Pallet Services
segment of 7.6% were below Q1 2001, but have shown a recovery
since Q4 2001.
Debt: Total debt, including capital lease obligations and the 10
5/8% Senior Subordinated Notes, at end March 2002 was US$302.1m
compared to US$374.4m at the same time in the prior year. In the
first quarter of 2002 the Company sold its Industrial Containers
division; the cash proceeds of US$36.8m were used to pay down
Senior debt.
The Company intends to file its Q1 2002 report with the SEC and
SMAX next week, after which it will be available on our Webpage
www.ifco.de or from the Investor Relations department.
The statements in this press release regarding management's
expectations, estimates and projections constitute "forward-
looking statements" within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. Such statements are subject to risks and
uncertainties that could cause IFCO Systems' results to differ
materially from those expectations. Such risks and uncertainties
include, but are not limited to: (1) the Company's significant
indebtedness; (2) the Company's ability to complete a
restructuring of its debt; (3) the cost and availability of
financing for operations, capital expenditures, and contemplated
growth; (4) the ability to comply with covenants of credit
agreements to which IFCO Systems is a party and to make required
payments of interest and principal; (5) the ability to comply
with covenants of the indenture governing the Company's senior
subordinated notes and to make required payments of interest and
principal; (6) IFCO Systems' ability to effectively integrate its
operations and achieve its operational and growth objectives; (7)
the competitive nature of the container businesses, including
returnable plastic containers, or RPCs, and pallets; (8) customer
demand and business and economic cycles; (9) seasonality; (10)
weather conditions; (11) availability and cost of used pallets;
(12) changes in national or international politics and economics;
(13) currency exchange rate fluctuations; and (14) changes in
capital and financial markets, including the performance of
companies listed on the Frankfurt Stock Exchange. This
announcement should be read in conjunction with the filings made
by the Company with the U.S. Securities and Exchange Commission
and the Frankfurt Stock Exchange. These filings disclose risk
factors and other information that could cause actual results to
materially differ from management's expectations.
CONTACT: IFCO Systems N.V.
Gabriela Sexton, +49 89 744 91 223
Gabriela.Sexton@ifco.de
===========
S W E D E N
===========
LM ERICSSON: To Sell Rights at 74% Discount Due to Market Slump
---------------------------------------------------------------
Concerned that the volatile European stock market could adversely
affect its rights issue, cash-strapped European telecom equipment
maker Ericsson priced the SEK30 billion rights at a 74% discount.
According to the Independent, the fully underwritten one-for-one
issue was priced at SEK3.8, a price not seen on its stock since
late 1992. The company closed trading last week at SEK11.90
after falling by 18%. The shares are expected to drop to the
fully diluted value of SEK7.7 at current market prices, once they
go ex-rights on August 9.
The report says the deep discount sparked speculation that the
underwriters had a pessimistic view on the business and would not
offer more for the stock.
"Such a discount is a sign of desperation," Inge Heydorn, an
analyst at ABN Amro, told the Independent.
But for Ericsson Chairman Michael Treschow the price reflected
the best judgment of advisers to limit the danger of the issue
failing on volatile stock markets.
"I am risk-adverse, but not desperate," the Chairman told the
Independent in an interview.
The company plans to use the proceeds to repay SEK8 billion of
short-term debt and SEK14 billion of long-term loans over the
next six quarters out of the SEK30 billion raised. It would first
pay back loans where interest is linked to credit ratings.
Moody's recently lowered the company's ratings to Baa3, a notch
above junk status, while Standard & Poor's downgraded it to BBB
in May.
The group's sales rose 4% quarter-on-quarter to SEK38.5 billion
while the second-quarter pre-tax loss was SEK3.5 billion, against
forecasts of SEK4 billion.
Ericsson has been hit by the slump in spending by cash-strapped
telecoms operators. It expects a deeper fall in mobile network
sales later this year.
===========================
U N I T E D K I N G D O M
===========================
CONSIGNIA: Plan to Cut Operating Units to Two Will Save GBP50 MM
----------------------------------------------------------------
Consignia Chairman Allan Leighton hopes to simplify the structure
in the troubled mail service this year by reducing the current 18
operating units to just two, the Telegraph reports.
The radical management shake-up is aimed at saving more than
GBP50 million a year, a spokesman for Consignia told the paper.
The official said the simplified structure will retain two
operating units, which will fall under an umbrella company called
Royal Mail Holdings.
The subsidiaries, Royal Mail and Post Office Limited, will take
care of postal and letter services at home and abroad, and
counter transactions respectively, the official said. The group,
which plans to change its name back to Royal Mail, is currently
losing more than GBP1 million a day.
"It is basically a simplified structure. We have already
announced that the number of employees in the organization is
going to reduce by 30,000 under the restructure plans. Some of
that is [sic] management and admin staff, but the vast majority
are front-line staff. There will be a need to reduce the
management structure as well."
Under the changes, which are due in the autumn, Mr. Leighton will
become the chairman of the holding company and the Royal Mail
subsidiary.
Consignia is also looking for two non-executive directors to sit
on the board of Royal Mail Holdings, and a new chairman for the
Post Office division. For the first time, a human resources
director will also be appointed, the report said.
ENERGIS PLC: Sells German Unit to Easynet for EUR3.4 Million
------------------------------------------------------------
Ision, the German web-hosting business of ailing British telecom
operator Energis Plc, is now owned by corporate telecom company
Easynet, reports the Independent.
Easynet paid EUR3.4 million in cash for Ision, which fell into
the hands of creditors last week. The new owner says Ision will
accelerate its progress towards breaking even in Germany in 2003.
Energis ran into financial trouble earlier this year. Last week,
its shares were delisted from the London Indices after filing for
administration.
Citing Reuters, Troubled Company Reporter-Europe last week said
that creditor banks will take over Chelys following the
administration petition. Banks plan to inject up to GBP150
million in new equity to the buyout vehicle.
Shareholders will be entitled to 7.5 percent of anything left on
top of 1.8 billion pounds once the company is sold or floated.
But they will not be guaranteed anything, TCR-Europe said.
It is understood that Archie Norman will act as Chelys's
chairman. Mr. Norman is a Conservative member of parliament and
the man credited with turning around supermarket group Asda
before it was sold to Wal-Mart in 1999.
MARCONI PLC: Completes Signaling Infrastructure Upgrade
-------------------------------------------------------
Marconi's (London: MONI) Transportation division has completed a
two and a half-year railway signalling project in the U.K.,
achieving a significant milestone in allowing high-speed trains
to run on the country's flagship West Coast Main Line.
The design and trackside installation works were carried out in
conjunction with the North Staffordshire Resignalling Alliance,
which consists of Railtrack, Carillion and Atkins Rail.
Completion of the North Staffordshire Resignalling Project is the
latest in a series of successes for Marconi Transportation. In
May, the business announced that it had won a three-year contract
extension to provide maintenance and support to Railtrack for the
West Coast Main Line communication network.
The communications network provided by Marconi under the North
Staffordshire project supports a new signalling and trackside
voice communications system, replacing equipment that had reached
the end of its serviceable life. Once completed the network will
enhance safety and operational performance as well as reducing
costs.
"Marconi has completed the North Staffordshire Resignalling
project on time and within budget and has worked well with Atkins
Rail in delivering the new communications infrastructure," said
John Martin, Implementation Director for the North Staffordshire
Alliance. "North Staffordshire is the first of a series of re-
signalling contracts awarded to Marconi Transportation's
dedicated rail project delivery team. The team is now working
with us to deliver projects at Norton Bridge and Sheerness," he
added.
The North Staffordshire Resignalling project was carried out
between Colwich and Congleton. It involved the upgrade and
rationalisation of the communications network caused by the
consolidation of seven signal boxes into a centralised Signalling
Control Centre located in Stoke on Trent.
Marconi worked as sub-contractor to Atkins Rail on the project,
providing the overall re-signalling telecommunications network.
This entailed the design, supply, installation testing and
commissioning of a Synchronous Digital Hierarchy (SDH) and
Plesiochronous Digital Hierarchy (PDH) transmission network with
the associated copper cable distribution network to support all
resignalling, voice and data requirements.
Marconi designed, supplied, installed, tested and commissioned a
bespoke telephone concentrator to serve all trackside telephony
requirements. It was responsible for overall telecommunication
network integration, testing and commissioning and the provision
of strategic equipment operation and maintenance training to
enable rapid and efficient fault-finding and maintenance across
the entire telecommunication network.
Peter Felton, Business Development Director for Marconi
Transportation, a division of the company's Integrated Systems
group, said: "The completion of this project follows three years
of hard work by our rail project delivery team. It has developed
best-in-class project management and working practices that
provide Railtrack and its Alliance Partners with significant
project cost and time savings.
"This has demonstrated our ability to deliver resignalling
projects on the U.K.'s rail infrastructure. We now look forward
to delivering against our current projects and those that we will
be involved with in the future."
About Marconi Transportation
Marconi Transportation is an integrated communications business
with over 30 years of transportation experience. Its professional
staff is currently delivering a number of high profile
communications projects in the Rail, Road and Air industries. Its
consultants and design engineers are committed to delivering
tailored solutions based on complex network integration, high
performance service provision and best of breed products. Its
customer services division is committed to providing the best
possible support for customers' systems and networks on a
24x7x365 basis.
About Marconi plc
Marconi plc is a global telecommunications equipment and
solutions company headquartered in London. The company's core
business is the provision of innovative and reliable optical
networks, broadband routing and switching and broadband access
technologies and services. The company's aim is to help fixed and
mobile telecommunications operators worldwide reduce costs and
increase revenues.
The company's customer base includes many of the world's largest
telecommunications operators. The company is listed on the London
Stock Exchange under the symbol MONI.
WORLDCOM INC.: Files for Chapter 11 Bankruptcy in New York
----------------------------------------------------------
U.S. telecom giant Worldcom Inc. succumbed to bankruptcy over
the weekend, filing its Chapter 11 petition late Sunday, The Wall
Street Journal said.
The company listed US$41 billion worth of debts, which in the
meantime cannot be collected by creditors by virtue of the
temporary court protection outlined in the U.S. Bankruptcy Code.
The paper said WorldCom, which has US$35 billion in annual
revenue but is now nearly out of money, filed the petition before
the U.S. Bankruptcy Court for the Southern District of New York.
The company intends to continue its normal operations. WorldCom's
board had unanimously approved the step at a meeting Sunday
afternoon.
This latest bankruptcy upends that of Enron Corp, which until
recently was considered the largest in U.S. corporate history.
The Clinton, Miss.-based telecom giant lists assets valued at
US$107 billion. Enron Corp. had assets of only US$63.4 billion.
WorldCom, parent of MCI, is the second-largest long-distance
provider in the U.S. and serves 20 million consumers and
thousands of corporate customers. Analysts believe its assets
today may be valued at only less than US$15 billion.
Initially, the company plans to sell nonessential assets and
focus on key businesses so it can emerge from bankruptcy
protection as a viable company. The paper said creditors,
including bondholders and banks, are expected to jockey for
payment, while common shareholders will almost certainly be wiped
out.
"WorldCom plans to continue serving its residential and business
customers, but it faces a major challenge to hang on to them, as
some have begun voicing concern that the company's financial
condition could impact service," the paper said.
"WorldCom's longer-term tasks will be more difficult. It has to
protect the rapidly eroding value of its brand. And it has to
decide what its core business should be. WorldCom doesn't have a
group of assets it can easily spin off to raise billions of
dollars. Some minor assets, such as the company's Brazilian and
Mexican operations, could be easily disentangled from the rest of
the company, but they wouldn't raise much money," the paper said.
The paper says one of the first things WorldCom will do now that
it has filed for Chapter 11 will be to ask the bankruptcy-court
judge to approve a US$2 billion bank loan in the form of senior
secured debtor-in-possession financing.
While that is being considered, WorldCom will have access to
interim funding of US$500 million to US$1 billion, according to
people familiar with the situation. It will be up to WorldCom to
decide how much it needs. When Enron filed for bankruptcy, for
example, the company had US$1.5 billion at its disposal, but the
energy firm said it needed only US$250 million.
Citigroup Inc., along with J.P. Morgan Chase and General Electric
Co.'s financial-services arm, GE Capital, is going to arrange
WorldCom's debtor-in-possession funding.
Another early step will be for WorldCom to seek authority to pay
bills outstanding to some creditors -- so-called "critical trade
vendors" -- before it pays bills owed to other creditors. That
step is taken to ensure good relations and critical service.
Some people say WorldCom's cash flow could improve significantly
because of the protection a Chapter 11 filing provides and that
the company may not need much of the US$2 billion in loans that
will be available. For example, WorldCom won't have to pay $500
million in estimated quarterly interest expenses that go to
WorldCom's bondholders, the paper said.
"Working capital could actually shift to be a significant" help
to WorldCom's operations, said Banc of America high-yield analyst
Trent Spiridellis in an interview with The Wall Street Journal.
Some of the stakeholders in the bankruptcy say once WorldCom's
balance sheet is clean, it could become an attractive acquisition
target for the Bells or other competitors.
"The shame of it all is that underlying the debt and the
restatement and the alleged fraud is a really great company that
will ultimately survive," Chief Executive John Sidgmore told The
Wall Street Journal in an interview Sunday. "If we can emerge
from bankruptcy without the debt load, we can have a strong
position in the industry. We might emerge with the strongest
balance sheet."
WORLDCOM INC: Consolidated Balance Sheet at March 31, 2002
----------------------------------------------------------
WORLDCOM, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
As of March 31, 2002
ASSETS
Current assets:
Cash and cash equivalents $ 2,267,000,000
Accounts receivable, net of
allowance for bad debts
of $1,215,000,000 5,005,000,000
Deferred tax asset 222,000,000
Other current assets 2,202,000,000
-----------------
Total current assets 9,696,000,000
-----------------
Property and equipment:
Transmission equipment 25,219,000,000
Communications equipment 7,595,000,000
Furniture, fixtures and other 12,171,000,000
Construction in progress 4,977,000,000
-----------------
49,962,000,000
Accumulated depreciation (10,807,000,000)
-----------------
39,155,000,000
-----------------
Goodwill and other intangible assets 50,607,000,000
Other assets 4,345,000,000
-----------------
$ 103,803,000,000
=================
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current liabilities:
Short-term debt and current
maturities of long-term debt $ 858,000,000
Accrued interest 853,000,000
Accounts payable and
accrued line costs 4,612,000,000
Other current liabilities 3,641,000,000
-----------------
Total current liabilities 9,964,000,000
-----------------
Long-term liabilities, less current
portion of long-term debt 29,300,000,000
Deferred tax liability 4,034,000,000
Other liabilities 536,000,000
-----------------
Total long-term liabilities 33,870,000,000
-----------------
Commitments and contingencies
Minority interests 52,000,000
Company obligated mandatorily
redeemable and other
preferred securities 2,011,000,000
Shareholders' investment:
Preferred stock, par value $.01
per share; authorized:
30,967,639 shares; none issued --
Common stock:
WorldCom group stock, par value
$.01 per share; authorized:
4,850,000,000 shares issued
and outstanding: 2,969,549,369 30,000,000
MCI group stock, par value
$.01 per share; authorized:
150,000,000 shares; issued
and outstanding: 118,595,720 1,000,000
Additional paid-in capital 54,314,000,000
Retained earnings 4,388,000,000
Unrealized holding gain on
marketable equity securities 4,000,000
Cumulative foreign currency
translation adjustment (646,000,000)
Treasury stock, at cost,
6,765,316 shares of WorldCom
group stock and 270,611 shares
of MCI group stock (185,000,000)
-----------------
Total shareholders' investment 57,906,000,000
-----------------
$ 103,803,000,000
=================
WORLDCOM INC: Case Summary
--------------------------
Lead Debtor: WorldCom Caribbean, Inc.
Lead Bankruptcy Case No.: 02-13532
Debtor Entities Filing Separate Chapter 11 Petitions:
WorldCom, Inc.
Brooks Fiber Properties, Inc.
Com Systems, Inc.
E.L. Acquisition, Inc.
Healan Communications, Inc.
Intermedia Communications Inc.
MCI Communications Corporation
MCI WORLDCOM Brands, L.L.C.
MCI WorldCom Management Company, Inc.
Military Communications Center, Inc.
SkyTel Communications, Inc.
TransCall America, Inc.
TTI National, Inc.
Wireless One, Inc.
WorldCom Broadband Solutions, Inc.
WorldCom International Mobile Services, Inc.
WorldCom Wireless, Inc.
Access Network Services, Inc.
Access Virginia, Inc.
ALD Communications, Inc.
BFC Communications, Inc.
Bittel Telecommunications Corporation
Brooks Fiber Communications of Arkansas, Inc.
Brooks Fiber Communications of Bakersfield, Inc.
Brooks Fiber Communications of Connecticut, Inc.
Brooks Fiber Communications of Fresno, Inc.
Brooks Fiber Communications of Massachusetts, Inc.
Brooks Fiber Communications of Michigan, Inc.
Brooks Fiber Communications of Minnesota, Inc.
Brooks Fiber Communications of Mississippi, Inc.
Brooks Fiber Communications of Missouri, Inc.
Brooks Fiber Communications of Nevada, Inc.
Brooks Fiber Communications of New England, Inc.
Brooks Fiber Communications of New Mexico, Inc.
Brooks Fiber Communications of New York, Inc.
Brooks Fiber Communications of Ohio, Inc.
Brooks Fiber Communications of Oklahoma, Inc.
Brooks Fiber Communications of Rhode Island, Inc.
Brooks Fiber Communications of Sacramento, Inc.
Brooks Fiber Communications of San Jose, Inc.
Brooks Fiber Communications of Stockton, Inc.
Brooks Fiber Communications of Tennessee, Inc.
Brooks Fiber Communications of Texas, Inc.
Brooks Fiber Communications of Tucson, Inc.
Brooks Fiber Communications of Tulsa, Inc.
Brooks Fiber Communications of Utah, Inc.
Brooks Fiber Communications-LD, Inc.
BTC Transportation Corporation
Business Internet, Inc.
Chicago Fiber Optic Corporation
COM/NAV Realty Corp.
Cross Country Wireless, Inc.
NY2:\1176535\01\P7TJ01!.DOC\81793.0001
CS Wireless Battle Creek, Inc.
CS Wireless Systems, Inc.
Express Communications, Inc.
FiberNet Rochester, Inc.
Fibernet, Inc.
ICI Capital LLC
Intelligent Investment Partners, Inc.
Intermedia Capital, Inc.
Intermedia Communications of Virginia, Inc.
Intermedia Investment, Inc.
Intermedia Licensing Company
Intermedia Services LLC
Jones Lightwave of Denver, Inc.
Marconi Telegraph Cable Company, Inc.
MCI Canada, Inc.
MCI Equipment Acquisition Corporation
MCI Galaxy III Transponder Leasing, Inc.
MCI Global Access Corporation
MCI Global Support Corporation
MCI International Services, L.L.C.
MCI International Telecommunications Corporation
MCI International, Inc.
MCI International Telecommunications Holding Corporation
MCI Investments Holdings, Inc.
MCI Network Technologies, Inc.
MCI Omega Properties, Inc.
MCI Payroll Services, LLC
MCI Research, Inc.
MCI Transcon Corporation
MCI Wireless, Inc.
MCI WORLDCOM Brooks Telecom, LLC
MCI WORLDCOM Capital Management Corporation
MCI WORLDCOM Communications of Virginia, Inc.
MCI WORLDCOM Communications, Inc.
MCI WorldCom Financial Management Corporation
MCI WORLDCOM Global Networks U.S., Inc.
MCI WORLDCOM International, Inc.
MCI WORLDCOM MFS Telecom, LLC
MCI WORLDCOM Network Services of Virginia, Inc.
MCI WORLDCOM Network Services, Inc.
MCI WORLDCOM Synergies Management Company, Inc.
MCI/OTI Corporation
MCImetro Access Transmission Services of Virginia, Inc.
MCImetro Access Transmission Services LLC
Metrex Corporation
Metropolitan Fiber Systems of Arizona, Inc.
Metropolitan Fiber Systems of Baltimore, Inc.
Metropolitan Fiber Systems of California, Inc.
Metropolitan Fiber Systems of Connecticut, Inc.
Metropolitan Fiber Systems of Dallas, Inc.
Metropolitan Fiber Systems of Delaware, Inc.
Metropolitan Fiber Systems of Denver, Inc.
Metropolitan Fiber Systems of Detroit, Inc.
Metropolitan Fiber Systems of Florida, Inc.
Metropolitan Fiber Systems of Houston, Inc.
Metropolitan Fiber Systems of Indianapolis, Inc.
Metropolitan Fiber Systems of Minneapolis/St. Paul, Inc.
Metropolitan Fiber Systems of New Hampshire, Inc.
Metropolitan Fiber Systems of New Jersey, Inc.
Metropolitan Fiber Systems of New Orleans, Inc.
Metropolitan Fiber Systems of New York, Inc.
Metropolitan Fiber Systems of Ohio, Inc.
Metropolitan Fiber Systems of Oregon, Inc.
Metropolitan Fiber Systems of Philadelphia, Inc.
Metropolitan Fiber Systems of Pittsburgh, Inc.
Metropolitan Fiber Systems of Seattle, Inc.
Metropolitan Fiber Systems of St. Louis, Inc.
Metropolitan Fiber Systems/McCourt, Inc.
MFS CableCo U.S., Inc.
MFS Datanet, Inc.
MFS Telecom, Inc.
MFS Telephone of Missouri, Inc.
MFS Telephone of New Hampshire, Inc.
MFS Telephone of Virginia, Inc.
MFS Telephone, Inc.
MFS/C-TEC
MFSA Holding, Inc.
MobileComm Europe Inc.
Mtel Asia, Inc.
Mtel Cellular, Inc.
Mtel International, Inc.
Mtel Latin America, Inc.
Mtel Microwave, Inc.
Mtel Service Corporation
N.C.S. Equipment Corporation
National Telecommunications of Florida, Inc.
Netwave Systems, Inc.
networkMCI, Inc.
Northeast Networks, Inc.
Nova Cellular Co.
NTC, Inc.
Overseas Telecommunications, Inc.
Shared Technologies Fairchild Communications Corporation
Shared Technologies Fairchild Telecom, Inc.
Shared Technologies Fairchild, Inc.
SkyTel Corp.
SkyTel Payroll Services, LLC
Southernnet of South Carolina, Inc.
Southernnet Systems, Inc.
Southernnet, Inc.
Telecom*USA, Inc.
Teleconnect Company
Teleconnect Long Distance Services & Systems Co.
Tenant Network Services, Inc.
Tru Vision Wireless, Inc.
Tru Vision-Flippin, Inc.
UUNET Australia Limited
UUNET Caribbean, Inc.
UUNET Holdings Corp.
UUNET International Ltd.
UUNET Japan Ltd.
UUNET Payroll Services, LLC
UUNET Technologies, Inc.
Virginia Metrotel, Inc.
Wireless Video Services
WorldCom Caribbean, Inc.
WorldCom East, Inc.
WorldCom ETC, Inc.
WorldCom Federal Systems, Inc.
WorldCom ICC, Inc.
WorldCom International, Inc.
WorldCom International Data Services, Inc.
WorldCom International Mobile Services LLC
WorldCom Overseas Holdings, Inc.
WorldCom Payroll Services, LLC
WorldCom Purchasing, LLC
WorldCom Ventures, Inc.
Petition Date: July 21, 2002
U.S. Bankruptcy Court: United States Bankruptcy Court
Southern District of New York
Alexander Hamilton Custom House
One Bowling Green, 5th Floor
New York, New York 10004-1408
Telephone (212) 668-2870
Bankruptcy Judge: The Honorable ____________
Debtors' Counsel: Marcia L. Goldstein, Esq.
Weil Gotshal & Manges LLP
767 Fifth Avenue
New York, NY 10153
Telephone (212) 310-8214
Fax (212) 735-4919
U.S. Trustee: Carolyn S. Schwartz
United States Trustee for Region 2
33 Whitehall Street, Suite 2100
New York, NY 10004
Telephone (212) 510-0500
WORLDCOM INC: List of the Debtor's 50-Largest Unsecured Creditors
-----------------------------------------------------------------
Creditor Nature of Claim Claim Amount
J.P. Morgan Trust Company, N.A. Bond Debt $17,200,000,000
Indenture Trustee
One Oxford Centre
Suite 1110
301 Grant Street
Pittsburgh, PA 15219
Attn: Bridget Shessler
Fax No.: (412) 291-2070
Mellon Bank, N.A. Bond Debt $6,600,000,000
Indenture Trustee
Two Mellon Bank Center
Pittsburgh, Pennsylvania 15259
Citibank, N.A. Bond Debt $3,290,000,000
Indenture Trustee
120 Wall Street
13th Floor
New York, NY 10043
Attn: Corporate Trust Administration
JP Morgan Chase Bond Debt $3,005,029,292
4 New York Plaza
4th Floor-Corp. Actions
New York NY 10004
Attn: Liz Cooper
Fax No.: (212) 509-6137
Bear Stearns Bond Debt $2,717,854,996
1 Metrotech Center North
4th Floor
Brooklyn, NY 11201-3859
Attn: Greg Schron
Fax No.: (347) 643-1747
Bank of New York Bond Debt $2,581,028,446
1 Wall Street
6th Floor - Reorg Dept.
New York, NY 10286
Attn: Mickey Jimenez
Fax No.: (212) 635-6361
State Street Bank Bond Debt $2,022,466,906
1776 Heritage Dr
A4 N.W. - Corp Actions Unit
N. Quincy, MA 02171
Attn: Rocco Giovani
Fax No.: (617) 537-6608
Morgan Stanley & Co. Bond Debt $1,907,821,926
1 Pierrepont Plaza
7th Floor - Reorg Dept
Brooklyn, NY 11201
Attn: Richard Garaventa
Fax No.: (718) 754-6373
Goldman, Sachs & Co. Bond Debt $1,518,753,945
10 Hanover Square
11th Floor - Reorg. Dept
New York, NY 10005
Attn: Ron Jackson / Robert Cregan
Fax No.: (212) 902-1431
Suntrust Bank, Central Florida, Bond Debt $1,220,000,000
National Association
Indenture Trustee
225 East Robinson Street,
Suite 250
Orlando, Florida 32801
Tel: 407-237-5179
Fax: 407-237-5299
Attn: Corporate Trust Department
CitiCorp Services Inc. Bond Debt $1,079,848,253
3800 Citibank Center
Bldg B - 3rd Floor - Zone 12
Tampa, FL 33610-9122
Attn: Maureen Chatfield
Fax No.: (813) 604-1140
Deutsche Bank Bond Debt $1,006,159,988
648 Grassmere Park Road
Mail Stop 7236
Nashville, TN 37211
Attn: Ward Cullum - Reorg. Dept
Fax No.: (615) 835-2782
Boston Safe Deposit Trust Co. Bond Debt $867,470,731
c/o Mellon Bank
3 Mellon Bank Center
Mail Zone 153-3631
Pittsburgh PA 15259
Attn: Stacey Mozuch / Gina Tighe
Fax No.: (412) 236-0029
ABN AMRO ING Baring (US) Bond Debt $753,059,131
Securities, Inc.
350 Park Avenue
Reorg Dept -2nd Floor
New York, NY 10055
Attn: Richard Leung
Fax No.: (212) 409-0296
Wilmington Trust Company Bond Debt $750,000,000
Indenture Trustee
Attn: Corporate Administration
Rodney Square North
1110 North Market Street
Wilmington, DE 19890
Fax No.: (302) 651-8882
Salomon Smith Barney Bond Debt $747,933,372
333 West 34th Street
3rd Floor - Reorg.
New York, NY 10001
Attn: John Andropoli
Fax No.: (212) 615-9053
Northern Trust Company Bond Debt $649,862,045
801 South Canal
Reorg Dept. C-One N
Chicago, IL 60607
Attn: Robert Balentin
Fax No.: (312) 630-1679
UBS Warburg LLC Bond Debt $369,228,999
677 Washington Blvd.
9th Floor - Reorg Dept
Stamford, CT 06912
Attn: Carlos Lede
Wells Fargo Bond Debt $352,084,050
733 Marquette Ave. South
Mail Sta. N 9306-057
Minneapolis, MN 55479
Attn: Trent Bader
Fax No.: (612) 667-4410
Banc of America Securities LLC Bond Debt $333,722,209
655 Montgomery Street
16th Floor - Reorg. Dept.
San Francisco, CA 94111
Attn: Marilyn Alberto
Firstar Trust Co Bond Debt $298,271,867
1555 N. River Center Dr.
Suite 210 - Corp. Actions
Milwaukee, WI 53201
Attn: Scott Olson and
Paul Kuxhaus and N. Morales
Fax No.: (414) 905-5515
Chase Securities Bond Debt $273,366,000
4 New York Plaza
4th Floor-Corp. Actions
New York NY 10004
Attn: Liz Cooper
CS First Boston Corp. Bond Debt $272,557,059
11 Madison Avenue
7th Floor - Reorg Dept.
New York, 10010
Attn: Larry Hammond
and Dawn Morales
Lehman Brothers Bond Debt $270,263,851
101 Hudson Street
30th Fl.
Jersey City NJ 07302
Attn: Steve Spector
Deutsche Bank AG Bank Loan $240,793,566
31 West 52nd Street
New York, NY 10019
Attn: Philippe Sandmeier
Phone: 212-469-2964
Fax: 212-409-4604
ABN Amro Bank NV Bank Loan $203,208,722
55 East 52nd Street
New York, NY 10055
Attn: Nan Logan
Phone: 212-409-1546
Fax: 212-409-5406
DB Alex Brown & Sons, Inc. Bond Debt $188,807,861
375 W. Padonia Road
Mail Stop TIM030105
Timonium, MD 21093
Attn: Reorg Dept
Fax No.: (410) 308-6300
FUNB-Phil Main Bond Debt $186,491,000
123 South Broad Street
10th Floor - Capital Changes
Philadelphia, PA 19109
Attn: Eileen Blake
Fax No.: (215) 973-1348
West LB Bank Loan $171,637,453
1211 Avenue of the Americas
New York, NY 10036
Attn: Lucie Guernsey
Phone: 212-852-6134
Fax: 212-852-6300
Custodial Trust Bond Debt $163,714,000
101 Carnegie Center
3rd Floor
Princeton, NJ 08540
Attn: Jay Silverstein
Fax No.: (609) 951-2327
Merrill Lynch Bond Debt $155,505,513
101 Hudson Street
10th Floor - Reorg Dept
Jersey City, NY 07302
Attn: Michael Bookstaber
Fax No.: (201) 557-1766
Citibank NA Bank Loan $155,230,416
390 Greenwich Street
New York, NY 10013
Attn: Richard Banziger
Phone: 212-723-6911
Fax: 212-723-8590
Brown Brothers Harriman & Co. Bond Debt $152,833,260
525 Washington Blvd.
11th Floor - Reorg Dept
Jersey City, NJ 07310 -1607
Attn: Tony Valenti
Fax No.: (201) 418-6581
Mizuho Holdings -- DKB/Fuj/IBJ Bank Loan $150,339,375
95 Christopher Columbus Drive
Jersey City, NJ 07302
Attn: Bill Kennedy
Phone: 212-282-4570
Fax: 212-282-4487
BNP Paribas Bank Loan $150,339,375
787 7th Avenue, 3rd Fl
New York, NY 10019
Attn: Aida Kalla
Phone: 212-841-3169
Fax: 212-841-2146
Fleet National Bank Bank Loan $150,339,375
100 Federal Street
Boston, MA 02110
Attn: Patrick Mcauliffe
Phone: 617-434-0749
Fax: 617-434-8702
Intesabci S P A Bank Loan $150,339,375
One William Street
New York, NY 10004
Attn: Anthony Globbi
Phone: 212-607-3851
Fax: 212-809-2124
BNY Clearing Services, LLC Bond Debt $142,946,059
111 East Kilbourn Avenue
4th Floor - Reorg Dept.
Milwaukee, WI 53202
Attn: Jean Luther
Fax No.: (414) 272-1253
Bank of Tokyo-Mitsubishi Bank Loan $140,186,456
1251 Avenue of the Americas
New York, NY 10020
Attn: Pamela Donnelly
Phone: 212-782-4314
Fax: 212-782-6445
Icahn & Co., Inc. Bond Debt $140,000,000
One Wall Street Court
Suite 980
New York, NY 10005
Attn: Angel Montalvo
Fax No.: (212) 695-5571
Verizon Communications, Inc. Trade Debt $121,200,000
(includes GTB) subject to
1095 Avenue of the Americas set-off
New York, NY 10036
Attn: Doreen A. Toben, CFO
Phone: 212-395-2121
Fax: 212-821-2917
Morgan Stanley Dean Witter Bond Debt $118,423,447
75 Varick Street - 3rd Floor
Attn: Reorg. Dept.
New York, NY 10013
Attn: Elizabeth Ross
Fax No.: (212) 392-2395
UMB Bank Bond Debt $112,345,003
928 Grand Avenue
11th Floor
Kansas City MO 64106
Attn: Jeanette St. John
- Corp Action
Fax No.: (816) 860-4968
Bank of Nova Scotia Bank Loan $100,226,250
1 Liberty Plaza, 26th Floor
New York, NY 10006
Attn: Steve Levi
Phone: 212-225-5039
Fax: 212-225-5355
Credit Lyonnais Bank Loan $100,226,250
1301 Avenue of the Americas
New York, NY 10019
Attn: Bruce Yeager
Phone: 212-261-7840
Fax: 212-261-3288
Bank One NA Bank Loan $100,226,250
1 Bank One Plaza
Mail Code IL1-0629
Chicago, IL 60670
Attn: Jennifer Jones
Phone: 312-732-1005
Fax: 312-732-8587
Mellon Bank NA Bank Loan $100,226,250
1 Mellon Bank Center
Pittsburgh, PA 15258
Attn: Tom Tarasovich
Phone: 412-236-2790
Fax: 412-236-6112
Bayerische Landesbank Bank Loan $100,226,250
560 Lexington Avenue
New York, NY 10002
Attn: Matthew DeCarlo
Phone: 212-230-9036
Fax: 212-230-9166
Royal Bank of Scotland Bank Loan $100,226,250
101 Park Avenue, 12th Floor
New York, NY 10178
Attn: Johnathan Barrow
Phone: 212-401-3744
Fax: 212-401-3456
Lloyds TBS Bank PLC Bank Loan $100,226,250
1251 Avenue of the Americas
New York, NY 10020
Attn: Nick Bruce
Phone: 212-930-8976
Fax: 212-930-5098
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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.
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