/raid1/www/Hosts/bankrupt/TCREUR_Public/020731.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 31, 2002, Vol. 3, No. 150
Headlines
F R A N C E
ALCATEL: RATP Selects Alcatel's Train Control Technology
ALCATEL: Decides Not to Participate in ITU Telecom World 2003
ALCATEL: Wins Contract From American Home Mortgage Networks
FRANCE TELECOM: Offers EUR500 MM Notes for STMicroelectronics
VIVENDI UNIVERSAL: Seven American Lawfirms File Class Actions
G E R M A N Y
BAYERISCHE LANDESBANK: Won't Rule Out Increased Risk Provision
DEUTSCHE ENTERTAINMENT: DEAG Carries out Capital Increase
DEUTSCHE TELEKOM: Issues Statement on Sale of Cable TV Business
SACHSENRING: Insolvent Auto Parts Maker Under Probe by BAFin
I T A L Y
FIAT SPA: Car Manufacturer's Losses Expected to Continue
N E T H E R L A N D S
KPN NV: SNT Agrees Deal on Shares, Extends Contract to 2006
KPNQWEST NV: France Unit Cuts 140 Jobs, German Arm Shuts Down
UNITED PAN-EUROPE: Announces 45-Day Waiver Extension From Lenders
S W E D E N
LM ERICSSON: Files F-3 Registration Statement Amendment
U N I T E D K I N G D O M
ABERDEEN HIGH: Invites Creditors to Name Administrators
ABERDEEN HIGH: Issues Statement on Share Suspension
ABERDEEN ASSET: Issues Notice on Major Shares Interest
CLUBHAUS PLC: Issues Notice of Major Interest in Shares
COOKSON GROUP: Issues Notice of Major Interests in Shares
MEDIA & INCOME: Creditors Appoint Administrative Receivers
NEWMEDIA SPARK: Issues Notice of Major Shares Interests
WORLDCOM, INC.: Appoints CRO, CFO to Executive Management Team
WORLDCOM, INC.: Missed Filing Requirements Trigger Delisting
- - - - - - - -
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F R A N C E
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ALCATEL: RATP Selects Alcatel's Train Control Technology
--------------------------------------------------------
Alcatel - www.alcatel.com -- announced Monday that it has been
awarded a contract to define and later to provide a complete
Communications-Based Train Control (CBTC) solution to the Regie
Autonome des Transports Parisiens (RATP) for metro-line 13
crossing Paris from Porte de ChYtillon to Saint-Denis and
AsniSres.
The four-year contract is worth 50 million Euros.
In order to increase the frequency, improve the safety, the
reliability and the interoperability of its trains, RATP decided
last year to upgrade the train control system on all its lines.
Live demonstrations of CBTC radio-based solutions from several
international manufacturers were successful and the RATP
decided to upgrade line 13, its most crowded, 22.5-km long line
in Paris, first.
Following a competitive tender, RATP selected Alcatels 6530
Seltrac (S30) to equip Line 13. Alcatels solution will reduce
the headway (time between two consecutive trains) from 105
seconds to 90 seconds. Seltrac S30 relies on logic block
technology using radio data communications to optimize the train
throughput. The system provides Automatic Train Operation (ATO)
functions and continuous Automatic Train Protection (ATP).
Moreover, its overlay modular design facilitates cost-effective
deployment and system cutover, allowing mixed-mode operation and
providing an evolutionary path to higher level functionalities
including driverless operation.
The upgrade of the metro-line will be carried out during the
night without interrupting the train service. Alcatel's system
can be overlaid on the existing train control system allowing the
smooth cutover without impacting the operation.
Andre Pascal, Director of Transport Systems Department for RATP
said, "Our choice to partner with Alcatel for this first upgrade
is based on the cost effectiveness of Alcatel's open and modular
solution and by their proven capability to manage large
projects".
Jean-Pierre Forestier, President of Alcatel's Transport
Automation said, "We are pleased to extend our relationship with
RATP and are committed to provide our highly advanced train
control solution. Through this award, Alcatel strengthens its
world leading position in advanced Communications-Based Train
Control solutions equipping more than 500 km of metro-lines world
wide."
Alcatel designs, develops and builds innovative and competitive
communications networks, enabling carriers, service providers and
enterprises to deliver any type of content, such as voice,
data and multimedia, to any type of consumer, anywhere in the
world.
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.
With sales of EURO 25 billion in 2001 and 99,000 employees,
Alcatel operates in more than 130 countries.
ALCATEL: Decides Not to Participate in ITU Telecom World 2003
-------------------------------------------------------------
As a consequence of the current market conditions and to be fully
in line with its cost cutting-program, Alcatel - www.alcatel.com
--announced Monday that it will not participate in the Telecom
World 2003 event organized by the ITU in Geneva next year.
With many of the company's competence centers within short travel
distance from Geneva, Alcatel will encourage its customers and
other stakeholders from all over the world to take advantage of
their visit to Telecom World 2003 to come and visit Alcatel on
its "home turf".
Alcatel will put every effort into facilitating these visits by
ensuring that senior Alcatel leadership is available to host our
clients and other constituencies to discuss and demonstrate
Alcatel's competencies in Stuttgart, Germany; Paris, France;
Milan, Italy; and Antwerp, Belgium.
Alcatel is convinced that both the ITU and its customers will
understand this decision.
ALCATEL: Wins Contract From American Home Mortgage Networks
-----------------------------------------------------------
Alcatel announced Monday that American Home Mortgage Holdings,
Inc., an independent retail mortgage banking company is upgrading
its three MortgageSelect.com call centers with Alcatel's OmniPCX
4400 IP-PBX and integrated contact center package to create a
networked virtual contact center with multimedia support
capabilities for efficient handling of customer contacts.
American Home originates and sells mortgage loans through its
MortgageSelect.com Web site. American Home's "bricks and clicks"
strategy combines convenience of online loan application with the
personal contact with traditional loan officers to deliver better
customer service and greater productivity in the workplace.
"A distributed virtual contact center based on Alcatel's product
suite will provide us with redundancy to ensure maximum uptime
for our customers. We can overflow calls from one center to
another in the event of a volume spike, natural disaster or power
failure," said Chris Cavaco, chief information officer, American
Home Mortgage. "With the virtual contact center, we can also
spread call center agents across different time zones to more
effectively increase our hours of service."
American Home currently uses the Alcatel Contact Center
Interactive Voice Response (CCIVR) to provide callers with fast
and easy access to information and services.
The IVR system integrates with a Microsoft SQL customer database
so callers can be routed to an agent they have talked to
previously or an appropriate agent by entering their account
information or telephone number. With skills-based routing, new
callers can be routed to agents with the right skill requirements
based on language skills and location.
"In a high-touch industry such as mortgage banking, it is
important for customers to reach live agents regardless of the
method of communication - telephone, email, text chat or Web
collaboration," said Tom Wilburn, general manager, Alcatel North
America enterprise business. "Alcatel's contact center solution
allows companies like American Home Mortgage to easily extend
customer service to the Internet with its multimedia capabilities
and expand customer support with a flexible contact center
platform."
By utilizing the automated email distribution component, American
Home offer consumers the convenience of contacting a live agent
from its MortgageSelect.com website. Consumers can request for
the appropriate agent to follow up by email or by telephone. An
intuitive management tool allows supervisors to have a global
view of the email contacts along with other media to monitor
service level and productivity.
Alcatel and New York-based COMFORCE Telecom, a division of
COMFORCE Corporation worked together to deploy the OmniPCX 4400
network for American Home.
Alcatel delivers standards-based IP communications solutions to a
global customer base of over 500,000 small, medium and large
enterprises, government agencies, healthcare facilities, and
educational institutions.
Alcatel's award-winning Omni family of IP Communications
solutions consists of an extensive portfolio of network switching
infrastructure, security appliances, and IP telephony
applications built to provide long-term value.
American Home Mortgage Holdings, Inc. -- www.americanhm.com -- is
an independent retail originator of residential mortgage loans
both online and offline. Its online operation, MortgageSelect.com
is a leader in online closed loan volume, and has outperformed
its online competitors in terms of profitability.
Offline, the company has grown organically and by acquisition and
now has 131 community loan offices across the country.
FRANCE TELECOM: Offers EUR500 MM Notes for STMicroelectronics
-------------------------------------------------------------
France Telecom - www.francetelecom.fr -- on Monday launched an
offering of approximately 500 million euros-worth of notes
maturing August 2005. The Stock Appreciation Income Linked
Securities are mandatorily exchangeable into up to 26.4 million
existing common shares of STMicroelectronics N.V.- www.st.com .
The Offering is being made to institutional investors on a
private placement basis only outside of the United States,
Canada, Japan and Italy.
Terms and Conditions
The Notes will mature on or about August 6, 2005 and will pay
annually in arrears a coupon on or about August 6 each year,
commencing on or about August 6, 2003.
The final terms and conditions should be fixed by the evening of
July 29, 2002.
The Notes are exchangeable for STMicroelectronics shares at the
option of the holders at any time after January 2, 2004, until
the seventh trading day prior to maturity. The Notes are
redeemable for up to 26,423,404 shares, representing France
Telecom's remaining indirect interest in STMicroelectronics (1).
The Notes shall be mandatorily redeemed for shares of
STMicroelectronics on the maturity date.
Payment and Settlement
The payment and settlement date is expected to be on or around
August 6, 2002.
Lock-up
STMicroelectronics Holding II B.V. has agreed, subject to certain
exceptions, not to sell any further Shares of STMicroelectronics
for a period of 60 days from pricing.
STMicroelectronics' principal shareholder is STMicroelectronics
Holding II B.V., which is indirectly controlled 50% by FT1CI (a
company consisting of two French shareholders, Areva and France
Telecom), and 50% by Finmeccanica, the largest aerospace and
defense company in Italy.
(1) Assuming the 1% notes due December 17, 2004 exchangeable for
shares of STMicroelectronics issued in December 2001 are all
redeemed for shares.
France Telecom is one of the world's leading telecommunications
carriers, with more than 107 million customers on the five
continents (220 countries and territories) and consolidated
operating revenues of 43 billion Euro for 2001 (22,5 billion Euro
at June 30, 2002).
Through its major international brands, including Orange,
Wanadoo, Equant and GlobeCast, France Telecom provides
businesses, consumers and other carriers with a complete
portfolio of solutions that spans local, long-distance and
international telephony, wireless, Internet, multimedia, data,
broadcast and cable TV services.
France Telecom is the second-largest wireless operator and
Internet access provider in Europe, and a world leader in
telecommunications solutions for multinational corporations.
France Telecom is listed on the Paris and New York stock
exchanges.
STMicroelectronics NV is one of the largest and most respected
semiconductor companies in the world. It makes memory chips,
discrete components, and many types of analog and mixed-signal
integrated circuits used in communications gear, consumer
electronics, computers, and industrial and automotive
applications. Top customers include Nokia (19% of sales),
Agilent, Bosch, and Sony. Through a web of holding companies,
French-government-controlled firms AREVA and France Telecom
together control 18% of ST, as does Italian aerospace kingpin
Finmeccanica.
VIVENDI UNIVERSAL: Seven American Firms File Class Actions
----------------------------------------------------------
The law offices of Brodsky & Smith, L.L.C., Cauley Geller Bowman
& Coates, Leo W. Desmond Law Offices, Levy and Levy, Lovell &
Stewart, Charles Piven, P.A., Schiffrin & Barroway and Weiss &
Yourman announced securities class actions were commenced on behalf of
shareholders who acquired Vivendi Universal, S.A. securities.
The cases, pending in various venues against the company and former
officers predominantly charge that defendants violated federal
securities laws by issuing a series of materially false and
misleading statements to the market throughout the Class Period
which statements had the effect of artificially inflating the
market price of the Company's securities.
Specifically, prior to and during the Class Period, Mr. Messier
took Vivendi on an acquisition binge that, according to published
reports, resulted in the Company amassing approximately $18
billion in debt as he turned the Company from a water concern
into an entertainment powerhouse.
Under Mr. Messier's leadership, Vivendi completed a $30 billion
buyout of Canada's Seagram and a $10.3 billion purchase of USA
Networks Inc., the cable and entertainment company owned by
Hollywood mogul Barry Diller.
Concomitantly, Mr. Messier orchestrated a scheme to conceal the
severity of Vivendi's liquidity problems stemming from the
massive debt load incurred as a result of these, and other,
transactions.
In fact, only days before his ouster by Vivendi's Board, Mr.
Messier caused the Company to issue several press releases that
falsely stated that Vivendi did not face an immediate and severe
cash shortage that threatened the Company's viability going
forward absent an asset fire sale.
It was only after Vivendi's Board dislodged Mr. Messier that the
Company's new management disclosed the severity of the crisis and
that the Company would have to secure immediately both bridge and
long-term financing or default on its largest credit obligations.
As detailed in the Complaint, Mr. Messier failed to disclose the
true contours of Vivendi's cash crisis and his affirmative
misrepresentations to the contrary have given rise to an
investigation by French authorities concerning whether Mr.
Messier disclosed in a timely fashion that the Company was in
dire financial straits.
Published reports also indicate that Vivendi is engaged in urgent
discussions with lenders to secure financing and is both
considering and negotiating the sale of assets.
Contact Information:
Jason L. Brodsky
Evan J. Smith Esquire
Brodsky & Smith, L.L.C.
11 Bala Avenue
Bala Cynwyd, PA 19004
Email: esmith@Brodsky-Smith.com
Telephone: toll free 877-LEGAL-90.
Leo W. Desmond, Esq.
Law Offices of Leo W. Desmond
West Palm Beach
Telephone: 888/337-6663, 561/712-8000
Email: Info@SecuritiesAttorney.com
Stephen G. Levy, Esq.
Levy and LEVY, P.C.
One Stamford Plaza
263 Tresser Blvd.
9th Floor
Stamford, CT 06901
Telephone: 866-338-3674 (toll-free), 203-564-1920
Email: LLNYCT@aol.com
Lovell & Stewart
LLP, New York
Christopher Lovell
Telephone: 212/608-1900
Email: classaction@lovellstewart.com
Charles J. Piven
Law Offices Of Charles J. Piven
P.A., Baltimore, Maryland
Telephone: 410-986-0036
Marc A. Topaz
or Stuart L. Berman
Schiffrin & Barroway, LLP
Three Bala Plaza East
Suite 400
Bala Cynwyd, PA 19004
888-299-7706
or 1-610-667-7706
Email: info@sbclasslaw.com
James E. Tullman
David C. Katz
Mark D. Smilow
Weiss & Yourman, New York
Telephone: 888/593-4771 or 212/682-3025
Email: info@wynyc.com
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G E R M A N Y
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BAYERISCHE LANDESBANK: Won't Rule Out Increased Risk Provision
--------------------------------------------------------------
Bayerische Landesbank, Bavaria's main regional bank, on Monday
said it did not rule out an increase in risk provisioning this
year, as its exposure to the heavily geared Kirch media empire
takes its toll.
BayernLB's Chairman, Werner Schmidt, said he expects risk
provisions this year to at least equal last year's level, which
was 1.25 billion euros. He said the bank had fully complied with
recommendations of Germany's banking supervisory authority,
Bundesanstalt fr Finanzdienstleistungsaufsicht (BAFin), that it
boost its provisions for Kirch-related risks from 300 million
euros to 884 million euros. He said this had been done through
the use of reserves.
To replenish its reserves, the bank now plans to sell off
shareholding interests, on which it expects to make a profit of
750 million euros. No details were provided on the identity of
the companies involved. According to speculation, the bank's
12.3% stake in eastern German utility Thga is on the list. The
buyer, the speculation further runs, is utility giant E.On AG.
Schmidt said the sale agreements had already been signed and the
deals represented a good opportunity for the bank. They should be
completed within the next two weeks, he said.
Asked whether these were emergency sales to block gaps in
BayernLB's balance sheet, Schmidt said the negotiations had been
going on for some five months. Apart from that, the plan to sell
non-strategic shareholdings had been announced a long time ago.
With total exposure of 2 billion euros, BayernLB is easily
Kirch's largest single creditor. Last week, BAFin issued the bank
a report summing up its investigations into the loans to Kirch.
In the report, the supervisory body bemoaned the lack of an
independent current control over the issue of credits, and
pointed to the lack of a satisfactory separation of functions
within its credit business.
Schmidt, who took over at BayernLB's helm last summer, stressed
that there had been a separation of functions in the bank's
dealings with Kirch, but he said the map of responsibilities
within the management board had now been redrawn, and a chief
risk officer had been appointed.
BayernLB, Germany's second-largest state-owned bank after
Westdeutsche Landesbank, came under particularly close scrutiny
for loaning vast amounts to the company founded by Leo Kirch,
known to be a long-time personal friend of Bavarian state
governor Edmund Stoiber, who is now running for German chancellor
in general elections in September. Bavaria owns a 50% stake in
the bank and a number of ministers in the Stoiber government sit
on its supervisory board and in its credit committee.
Schmidt and his vice chairman, Peter Kahn, said they were hopeful
that the bank would be able to come out of the Kirch affair with
no damage. Most notable the Kirch assets that it intends to take
over is the media giant's stake in Formula One racing, which was
bought with a BayernLB credit. Talks are progressing well, they
said.
BAFin's report was meant to be confidential but was leaked by an
unidentified source. BayernLB said it planned to sue this
individual for damages.
In the first half of 2002, BayernLB's operating earnings before
risk provisions came in at 682 million euros, up 20% on the year.
After half the share of the expected 1.25 million euros full-year
provisions, the first-half net earnings were left at 57 million
euros. But Schmidt stressed that this share of the provisions had
not been used up. And he added that despite its Kirch exposure,
BayernLB would close 2002 with a profit and its reserves
strengthened, and that it would issue a dividend .
DEUTSCHE ENTERTAINMENT: DEAG Carries out Capital Increase
---------------------------------------------------------
Berlin-based entertainment agency company Deutsche Entertainment
AG (DEAG) has carried out a cash capital increase of roughly
EUR1.1 million, Die Welt and FT Information reports.
The company has placed 760,000 new shares at a price of EUR1.46
each with Swiss company Decent Life Holding.
DEAG's management announced that it has almost completed its
restructuring after the sale of loss-making musical operator
Stella.
Deag intends to use the income from the capital increase for the
acquisition of more international concert organizers, the papers
say.
DEUTSCHE TELEKOM: Issues Statement on Sale of Cable TV Business
---------------------------------------------------------------
Deutsche Telekom made a decision on the second round of bidding
for the sale of its cable TV business, the company announced on
July 29.
Five international consortia have been selected from the nine
offers received for the six remaining cable TV regional companies
(Bavaria, Berlin/Brandenburg, Bremen/Lower Saxony,
Hamburg/Schleswig-Holstein/Mecklenburg-Western Pomerania,
Rhineland-Palatinate/Saarland and Saxony/Saxony-
Anhalt/Thuringia). All nine offers received include several
regions.
Due to the predominant demand for acquisition of the cable TV
business in all six regions, Deutsche Telekom has decided only to
pursue a complete sale. The due diligence phase now starts for
the five selected consortia. Their binding offers are expected by
the end of September. These offers will then be taken as the
basis for deciding with whom negotiations will continue.
Parallel negotiations allow Deutsche Telekom to accelerate the
sales process so that a result can be reached as soon as
possible. Deutsche Telekom is currently fully on schedule for the
new sales process launched in May.
SACHSENRING: Insolvent Auto Parts Maker Under Probe by BAFin
------------------------------------------------------------
Failing auto parts maker Sachsenring Automobiltechnik AG is being
investigated by the German stock market regulator BAFin, news
according to Financial Times Deutschland and FT Information
report.
According to a German press source, the results of the probe on
the suspected insider trading is expected in a few weeks.
The company employs 1,425 and is a supplier to major carmakers
such as DaimlerChrysler AG and Volkswagen AG. It filed for
insolvency protection on May 30.
Bruno Kuebler was assigned insolvency administrator for the
company.
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I T A L Y
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FIAT SPA: Car Manufacturer's Losses Expected to Continue
--------------------------------------------------------
Losses of Fiat SpA's loss making unit Fiat Auto have decreased,
but the troubled Italian carmaker's operating losses have still
turned out worse, a report from BBC said.
The news agency said Fiat Auto suffered a 19% drop-off in car
sales in 2002 and an operating loss of EUR394 million in the
period from April to June.
The losses dragged Fiat Group into the red with an operating loss
of EUR127 million and a net loss of EUR34 million, the news
agency said.
Previously, Fiat Auto had lost EUR429 million when Fiat Group
went into a major restructuring exercise, the news outfit added.
Fiat is currently carrying a net debt pile of EUR5.8 billion from
a EUR6.6 billion in March this year.
The carmaker has pledged to halve its debts to EUR3 billion by
next spring, the news outfit said.
On Friday, Fiat's creditor banks agreed to a EUR3 billion
financing plan. Under the plan, Fiat pledged to improve sales of
assets and its earnings, the news agency added.
Fiat Auto's persistent losses led many traders to believe that
Fiat will decide on the sale of its 80% stake in the loss-making
unit to its General Motors.
Fiat said it would "aggressively pursue the turnaround of Fiat
Auto with a view to becoming a stronger member of the GM
federation," the BBC said.
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N E T H E R L A N D S
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KPN NV: SNT Agrees Deal on Shares, Extends Contract to 2006
-----------------------------------------------------------
SNT Group NV (SNT) has reached an agreement with Koninklijke KPN
NV (KPN) with a view to fixing the number of shares that KPN
stands to acquire as a result of the conversion of the Special
Share, SNT announced Monday.
The conversion price, which was calculated in accordance with the
computation formulas set out in SNT's articles of association, is
EUR 15.84. Given that the 'accounting unit' attached to the
Special Share in SNT's articles of association (subject to which
the Special Share can be converted into ordinary shares) is still
set at EUR 131.7 million, should the Special Share be converted
into ordinary shares at the conversion price of EUR 15.84, KPN
will acquire 8,315,659 shares in SNT.
In the event that KPN decides to convert the Special Share, the
total number of outstanding shares in SNT will increase to
22,195,524. Should this be the case KPN's interest in SNT will
increase from 50.8 % to 69.2 %.
Furthermore, KPN and SNT have also agreed that the contract
between the two companies regarding the outsourcing of the
Customer Relation Management (CRM) services of the divisions of
the KPN group in the Netherlands to SNT is to be extended by one
year through to the end of 2006.
In this respect KPN has undertaken to see to it that in 2006 KPN
will outsource at least 70 % of its total requirements in terms
of CRM services to SNT.
SNT has made the above-mentioned agreements partly in light of
the strategic orientation of SNT announced on 17 July 2002, in
which SNT indicated that it is seeking to join forces with a
partner with whom SNT can break into the world market within the
context of a joint venture.
SNT considers it important to inform potential partners of KPN's
position as a client and a shareholder. On July 17, SNT also
announced that it had already taken over all of the CRM
activities of E-Plus (a 100 % subsidiary of KPN), as a result of
which virtually all of the CRM services outsourced by KPN are now
provided by SNT.
Finally, SNT has noted the content of the press release issued by
Atos Origin on July 24, in which Atos Origin announced that it
had sold all of its shares in SNT (an holding of 22 %) to Rabo
Securities.
SNT participates in the development of CRM concepts for its
clients. In its customer contact centers, SNT executes these
concepts by making sure its clients can be reached by their
customers via telephone, e-mail, chat, co-browsing and SMS. Data-
mining techniques are used to distil management information from
these customer contacts, which our clients can then use to
further develop their marketing strategies and maintain long-term
relationships with their customers. SNT provides effective
services to millions of consumers with its more than 12,000
employees and 45 offices in the Netherlands, Belgium, Germany,
Denmark, Norway, Sweden, Finland and France.
SNT booked turnover of EUR 255.6 million in the first half of
2002. Profit (EBITA) in the first half of 2002 came in at EUR
14.8 million.
KPNQWEST NV: France Unit Cuts 140 Jobs, German Arm Shuts Down
-------------------------------------------------------------
The French Subsidiary of the bankrupt Dutch telecoms network
operator KPNQwest will be broken up displacing 140 employees, a
report obtained from the Europe Media says.
The news agency reports that creditors have chosen the profit-
making parts of the business and plans to sell the remainder to
interested buyers.
KPN Telecom, a former shareholder in KPNQwest, purchased network
infrastructure worth EUR4 million from the broken-up operation.
Part of the remaining equipment was acquired by Telia and LDCom.
ADP Telecom and AOL have acquired servers formerly allocated to
them from KPNQwest.
Meanwhile, the German arm of the Dutch cable network operator
KPN-Qwest Germany has shut down operations. It filed for
insolvency, the Frankfurter Allgemeine Zeitung sources report.
The German division of KPN-Qwest achieved turnover of around EUR
50 million and managed 3,000 customers last year.
UNITED PAN-EUROPE: Announces 45-Day Waiver Extension From Lenders
-----------------------------------------------------------------
UPC announced Monday that bank lenders and UGC have extended its
default waivers arising as a result of UPC's decision not to make
interest payments under its outstanding Senior Notes until
September 12, 2002.
The terms of the waivers remain unchanged from those announced on
March 4, 2002. UPC also confirmed on July 29 that, as part of its
balance sheet restructuring, it does not intend to make the
interest payment of EUR 124 million due on August 1, 2002 on its
outstanding 10 7/8% Senior Notes due 2009, 11 1/4% Senior Notes
due 2010 and 11 1/2% Senior Notes due 2010.
The nonpayment of interest on these senior notes will be covered
by the default waivers announced above. Withholding these
interest payments is not expected to affect the normal course of
business for UPC's operating companies.
United Pan-Europe Communications N.V. -- www.upccorp.com -- is
one of the leading broadband communications and entertainment
companies in Europe. Through its broadband networks, UPC 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
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S W E D E N
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LM ERICSSON: Files F-3 Registration Statement Amendment
-------------------------------------------------------
In connection with the proposed rights offering, Ericsson has
filed an amendment to the Registration Statement on Form F-3 with
the United States Securities and Exchange Commission (SEC), the
company said Monday.
The filing does not represent the final Form F-3 and is subject
to further amendments.
This amendment includes previously announced information
including the terms and conditions of the proposed rights
offering.
The amendment also contains the terms of the underwriting
agreements with a group of banks, as well as generic forms of the
agreements with several large shareholders.
These agreements are part of the total arrangement to fully
secure the SEK 30 b. rights offering, whereby several large
shareholders have agreed to purchase up to SEK 10 b. provided
that the remaining SEK 20 b. is underwritten.
The underwriting agreement contains customary terms and
conditions, one of which is a credit rating at or above BB by
Standard & Poor's or Ba3 by Moody's until the completion of the
rights offering.
These minimum credit ratings are several notches below the
company's current rating. Downgrades to these levels before
completion of the rights offering are considered unlikely by
management. This view is supported by Moody's statement that they
expect to confirm their latest rating of Ba1 after the completion
of the rights offering.
Ericsson is shaping the future of Mobile and Broadband Internet
communications through its continuous technology leadership.
Providing innovative solutions in more than 140 countries,
Ericsson is helping to create the most powerful communication
companies in the world.
Contact Information:
Gary Pinkham
Vice President
Investor Relations
Telephone: +46 8 719 0858, +46 730 371 371
Email: gary.pinkham@ericsson.com
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U N I T E D K I N G D O M
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ABERDEEN HIGH: Invites Creditors to Name Administrators
-------------------------------------------------------
Further to the announcement of July 18, 2002, there has been a
further deterioration in the prices of the Company's underlying
investments, the company announced Monday.
After discussions between the Board, the Trustees of the
Debenture Stock and Bank of Scotland, the secured creditors were
invited to appoint administrative receivers.
Accordingly, T M Burton and P J Brazzill were appointed Joint
Administrative Receivers of the Company by the Governor & Company
of the Bank of Scotland under the terms of a debenture dated
November 26, 2001 giving Bank of Scotland a floating charge over
the whole of the assets of the Company.
Secured creditors, which rank pari passu, comprise the Trustees
of the Debenture Stock and Bank of Scotland, the bank loan
provider. It is estimated there will be a shortfall as regards
the amount due to the secured creditors.
Therefore, there are no prospects of a distribution to unsecured
creditors or to shareholders.
If the prospect of a distribution to shareholders changes, the
Administrative Receivers of the Company will advise shareholders
in writing and by issuing a statement via the Company's website
at: http://www.highincome-trust.co.uk.
Finally, the Administrative Receivers regret that no funds are
available to maintain a register of members subsequent to the
date of the their appointment.
Consequently, it is not possible to register any transfers of
shares or changes in shareholder details after this date.
Contact Information:
Tom Burton
Telephone: 0141 626 5405
Patrick Brazzill
Ernst & Young
Telephone: 020 7951 9986
Ian Davis
Hoare Govett Limited
Telephone: 020 7678 8000
William Hemmings / Stephen Folland
Aberdeen Asset Managers Limited
Telephone: 020 7463 6000
ABERDEEN HIGH: Issues Statement on Share Suspension
---------------------------------------------------
The Board of Aberdeen High Income Trust PLC announced July 18
that following a further substantial fall in the share prices of
the Company's investments the liabilities of the Company exceed
the assets.
The Board has reviewed the Company's financial position and,
after having taken advice, the Company's ordinary shares,
preferred income shares, zero dividend preference shares and
7.1 %.
Debenture Stock has been suspended from the Official List of the
UK Listing Authority and will cease to trade on the London Stock
Exchange.
Contact Information:
Chris Fishwick/William Hemmings/Stephen Folland
Aberdeen Asset Managers Limited
Telephone: 020 7463 6000
ABERDEEN ASSET: Issues Notice on Major Shares Interest
------------------------------------------------------
Name of Company: Aberdeen Asset Management plc
Name of Shareholder: FMR CORP and its direct and indirect
subsidiaries and Fidelity International ltd and its direct and
indirect subsidiaries
Name of the registered holder(s) andthe number of shares held by
each of them:
a. Chase Nominees Limited - 1,519,600
b. State Street Nominees Ltd - 216,800
c. HSBC - 25,800
d. Chase Manhattan Bank London - 3,583,098
e. HSBC Client Holdings Nominees (UK) LTD - 2,000
Class of Security: ordinary shares of 10 pence
Date of Transaction: July 24, 2002
Total holding following this notice: 5,347,298
Total percentage holding following this notice: 3.05%
CLUBHAUS PLC: Issues Notice of Major Interest in Shares
-------------------------------------------------------
Clubhaus plc was notified on July 29, 2002, Morley Fund
Management Limited (a subsidiary of Aviva plc (formerly CGNU
plc)) is interested in 29,511,549 ordinary shares in the Company
representing 3.23% of the issued share capital.
COOKSON GROUP: Issues Notice of Major Interests in Shares
---------------------------------------------------------
Name of Company: Cookson Group Plc
Name of shareholder: Putnam Investment Management, Llc and
The Putnam Advisory Company, Llc
Class of Security: Ordinary Shares Of 50 Pence Each
Date Company was Informed: July 29, 2002
Total Holding After this Notice: 22,615,774 Shares
Total Percentage Holding following this notice: 3.108%
MEDIA & INCOME: Creditors Appoint Administrative Receivers
----------------------------------------------------------
Further to recent discussions with the Company's debt providers,
the Board has been considering the future of the Company, the
group announced on July 12.
The Board has invited the Company's debt providers to appoint
receivers following a further deterioration in the value of the
portfolio, causing its liabilities to exceed its assets.
Simon Bower and Mike Hore, two partners from RSM Robson Rhodes,
have been appointed as joint administrative receivers of The
Media and Income Trust PLC.
The administrative receivers are committed to realizing the best
value from the Company's portfolio and are exploring all the
options open to them
The suspension of trading in all classes of shares in The Media
and Income Trust PLC and its subsidiary Media Zeros PLC was
announced on July 10, 2002.
Contact Information:
Aberdeen Asset Management
Chris Fishwick
Telephone 020 7463 6000
NEWMEDIA SPARK: Issues Notice of Major Shares Interests
-------------------------------------------------------
Name of Company: NewMedia SPARK plc
Name of Shareholder: Guinness Peat Group plc
Number of shares/amount of stock acquired: 20,259,755
Percentage of Issued Class: 4.26%
Class of Security: Ordinary Shares of 2.5p
Date of Transaction: July 23, 2002
Total Holding After the Notice: 25,759,755
Total percentage after This Notice: 5.46%
WORLDCOM, INC.: Appoints CRO, CFO to Executive Management Team
--------------------------------------------------------------
WorldCom, Inc. - www.worldcom.com -- announced Monday that it has
appointed Gregory F. Rayburn as chief restructuring officer and
John S. Dubel as chief financial officer.
Both executives are principals with AlixPartners, LLC, one of the
nation's premier corporate restructuring firms. Mr. Rayburn and
Mr. Dubel were appointed by, and will report directly to, John
Sidgmore, WorldCom president and chief executive officer. The
arrangements with AlixPartners are subject to Bankruptcy Court
approval.
"These appointments are an important step in moving WorldCom
forward," said Sidgmore. "In a short time, we have secured two of
the most highly qualified and experienced restructuring
executives available. Their task will be to support our efforts
to emerge from reorganization as quickly as possible with a
healthy business focused on its core capabilities. During this
process, WorldCom will continue to provide world-class services
to our customers."
Mr. Rayburn and Mr. Dubel will manage WorldCom's restructuring,
including negotiating with existing creditors, evaluating
proposals, overseeing the development of financial projections,
disseminating appropriate information to stakeholders and
overseeing the sale of any non-core assets.
"Our focus is on the future of WorldCom," said Mr. Rayburn. "As
an innovative leader in the communications business, with more
than 20 million customers and 60,000 employees worldwide,
WorldCom has real business value. John Dubel and I look forward
to working with John Sidgmore, the Board of Directors and the
creditors to develop and implement a reorganization plan that
will maximize value for the company's stakeholders, while
preserving the integrity of its core business."
Mr. Sidgmore pointed out that Mr. Rayburn has extensive
experience in operations, financial analysis, mergers and
acquisitions and valuations. Mr. Dubel's restructuring experience
includes operational reorganizations and cost reductions,
financial department restructurings, strategic repositioning and
divestitures. His industry experience includes telecom and high
technology, manufacturing, financial services and oil and gas.
"Greg, John and their firm have demonstrated financial acumen and
a reputation for building consensus and achieving results," said
Sidgmore. "They are skilled at addressing complex problems and
opportunities in a changing marketplace, while operating with the
highest ethical standards."
Mr. Rayburn joined AlixPartners in August 2000. Most recently he
acted as both CEO and CRO in the just completed successful
restructuring of Sunterra Corporation. Formerly, he was the
president and co-founder of The Capstone Group, a private
investment partnership. Before founding Capstone, he served as
Chairman and CEO of the fourth largest U.S. retailer of fabric
and crafts. Mr. Rayburn is a Certified Public Accountant and a
Certified Fraud Examiner. He belongs to the Turnaround Management
Association, the American Institute of Certified Public
Accountants, and the American Bankruptcy Institute.
Prior to joining AlixPartners in 2002, Mr. Dubel ran his own
turnaround firm. During that time, he served as Chief
Restructuring Officer and COO at CellNet Data Systems, Inc.
CellNet is the leading provider of data and information
management services in the telemetry industry and the fourth
largest domestic wireless carrier based on subscriber endpoints.
Mr. Dubel is a Certified Insolvency and Reorganization
Accountant, a past board member and officer of the Association of
Insolvency and Restructuring Advisors, and a member of the
Turnaround Management Association and the American Bankruptcy
Institute.
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. In April 2002,
WorldCom launched The Neighborhood built by MCI; the industry's
first truly any-distance, all- inclusive local and long-distance
offering to consumers, for one fixed monthly price.
AlixPartners, LLC, a Delaware limited liability company --
www.alixpartners.com --, is an internationally recognized leader
in providing hands-on, results-oriented consulting to solve
operational, financial, transactional and legal challenges for
Fortune 1000 companies. It provides services in performance
improvement, turnaround and restructuring, financial advisory and
information technology. It has more than 170 professionals in its
Detroit, New York, Chicago and Dallas offices.
WORLDCOM, INC.: Missed Filing Requirements Trigger Delisting
------------------------------------------------------------
Scandal-ridden WorldCom Inc. securities will be delisted by the
Nasdaq Stock Market since it failed to comply with the Nasdaq
listing requirement, which demands that a company should update
its periodic filings with the US Securities and Exchange
Commission, a report from AFX News said.
Nasdaq said it is concerned with the company's ongoing bankruptcy
proceeding, the report said.
The following shares to be delisted are WorldCom's Group Common
Stock, MCI Group Common Stock and 8 % Cumulative Quarterly Income
Preferred Securities, Series A.
Meanwhile, WorldCom said it expects that its securities will
trade on the Pink Sheets under the symbols WCOEQ, MCWEQ and MCPEQ
following the delisting, AFX said.
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
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