/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020809.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 Friday, August 9, 2002, Vol. 3, No. 157 Headlines * F R A N C E * VIVENDI UNIVERSAL: Milberg Weiss Files U.S. Securities Fraud Suit * G E R M A N Y * CONSORS AG: Expects No Upturn in Retail Trading in 2002 DEAG DEUTSCHE: Successful Restructuring Leads To Positive Q2 EBIT HERLITZ: CMP Bids for Beleaguered Stationery Company QUAM: Will Cut 800 Jobs & Parents Write Off Investment in UMTS SCHNEIDER TECHNOLOGIES: Negotiations Advance Over Sale of Units TELESENSKSCL: Workers Set To File GBP3 MM Lawsuit Vs. Convergys * I T A L Y * BLU SPA: Assets Finally Distributed Among Rivals * U N I T E D K I N G D O M * BAYNFLAX LIMITED: Administrators Selling Food Machinery Business ELECTROPAC: Receivers Offer PCB Manufacturing Concern for Sale ITV DIGITAL: Football League Chairman Quits Over ITV Digital Row JAMES GILBERT: Receivers Sell Clothes Manufacturing Business KINGFISHER PLC: Gets EU Clearance for Castorama Minorities Offer LATMINUTE.COM PLC: Director Resigns From Board LASTMINUTE.COM PLC: Financial Results and Statement for Q3 2002 RAILTRACK PLC: Notice Re GBP400 MM Exchangeable Bonds Due 2009 RAILTRACK PLC: Notice Re GBP350 MM, 5.875% Bonds Due 2009 RAILTRACK PLC: Notice Re 5.875% Bonds Due 2009 RAILTRACK PLC: Meeting on Holders of GBP250 MM Bonds Due 2028 RAILTRACK PLC: Notice Re 9.625% Bonds Due 2016 RAILTRACK PLC: Notice Re 9.125% Bonds Due 2006 SCIPHER PLC: Company Profile REGUS PLC: AGIP KCO in GBP8 MM Outsourcing Deal With Regus REGUS PLC: Announces New Chief for UK & Ireland REGUS PLC: Announces New Non-executive Director REGUS PLC: Second Quarter Results Ending June 2002 REGUS PLC: Company Profile SPORTSWORLD MEDIA: Company Profile TERONIX ENGINEERING: Administrators Sell Turned Parts Maker TELEWEST COMMUNICATIONS: Appeals for GBP2.25 BB Loan Waiver TELECITY PLC: Reveals Q2 2002 Interim Results WIGGINS GROUP: Forms Joint Venture to Develop Fairfield Hospital =========== F R A N C E =========== VIVENDI UNIVERSAL: Milberg Weiss Files U.S. Securities Fraud Suit ----------------------------------------------------------------- Milberg Weiss commenced a class action lawsuit in the United States District Court for the Central District of California on behalf of purchasers of Vivendi Universal, S.A. common stock and American Depository Receipts (ADRs) during the period between April 23, 2001 and July 2, 2002. The complaint charges Vivendi and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants' false statements artificially inflated Vivendi ADRs to as high as $68.80 per ADR. Defendants reported favorable, but misleading, financial results to the market and represented that Vivendi was not as susceptible to economic problems as competitors and that the Company had the "highest resiliency and lowest sensitivity to recessionary environment." The defendants also represented that Vivendi was successfully implementing recent mergers which were being reorganized quickly to generate synergies. These positive but false statements allowed the Company to complete additional acquisitions in its $100 billion buying spree between 1998 and 2001. In late June 2002, news leaked from Vivendi that its debt was at alarming levels, causing Vivendi's ADRs to decline in price from $28 to $20. Vivendi's ordinary shares declined in similar fashion. Nonetheless, Vivendi's CEO reassured the market that liquidity was not a problem and the ADRs did not totally collapse. However, as ratings agencies continued to downgrade the Company's debt, the ADRs continued to decline. On July 2, 2002, Vivendi's debt was downgraded again and the Company was in danger of default. The next day, Vivendi's CEO was forced to resign. Vivendi ADRs collapsed upon these revelations, falling to $15-21/32 on July 2 on huge volume of 8 million shares. Plaintiff seeks to recover damages on behalf of all purchasers of Vivendi common stock and ADRs during the Class Period. The plaintiff is represented by Milberg Weiss Bershad Hynes & Lerach LLP, who has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Those interested to serve as lead plaintiff may file a motion to the Court no later than 60 days from July 18, 2002. Contact Information for Plaintiffs' Counsel: William Lerach/Darren Robbins Milberg Weiss Telephone: 800/449-4900 Email: wsl@milberg.com http://www.milberg.com/cases/vivendi/ ============= G E R M A N Y ============= CONSORS AG: Expects No Upturn in Retail Trading in 2002 ------------------------------------------------------- Europe's largest online broker, Consors warns no upturn in retail trading this year is expected to erase the cloud over the online broking sector, a report from the Financial Times says. Since BNP Paribas purchased it last May, Consors has revealed an EUR160 million interim loss and anticipates a full-year deficit. But it refused to forecast a figure for the full-year loss or when it might see an upturn, the paper said. The company wrote-off EUR121 million of exceptional items in the first half which, the paper added, analysts saw as clearing the balance sheet ahead of its integration with BNP's Cortal brokerage. Further, Consors disclosed that trading fell 40% to 2.6m transactions in the first half to June 30, with most of the fall in the second quarter, the paper said. The daily also reported that net commission income also fell 40% to EUR44 million from EUR73 million. Net interest income fell 16% to EUR20.5 million from EUR17.2 million. Consors further revealed that personnel costs had been decreased to EUR36m from EUR49m a year ago, while non-interest expenses fell from EUR160m to EUR104m over the same period, the daily added. Consors operates in Italy, Switzerland and Spain as well as France and Germany. It said yesterday that it was currently in the search for its subsidiaries, but had no plans to exit any businesses, the daily said. The Financial Times said that BNP hopes to reach synergies of EUR53m a year from CortalConsors by 2005 and raise assets under management from EUR14bn to EUR25bn by 2005. BNP purchased Consors for EUR485 million from Germany's troubled Schmidtbank. DEAG DEUTSCHE: Successful Restructuring Leads To Positive Q2 EBIT ----------------------------------------------------------------- DEAG Deutsche Entertainment AG (Security ID No. 551390) says its management board's restructuring and cost reduction measures initiated in recent months are showing the first signs of success Concentration on core business and the accompanying staff cuts at the head office of the holding company led, according to interim Q2 figures, to a positive EBIT of Euro 385,000 on an EBITDA of Euro 1.9 million. These figures include Euro 1 million in risk provision for further restructuring measures. DEAG sees the second-quarter figures as confirming the course it has taken. Final, detailed figures for the first half of 2002 will, as announced, be published on August 22. Contact Information: Conrad Rausch Telephone: +49-(0)30-81075-817. http://www.deag.de/ir HERLITZ: CMP Bids for Beleaguered Stationery Company ---------------------------------------------------- German stationery company Herlitz found a bidder interested in Capital Management Partners, the German investment company that specializes in restructuring, a report from the Financial Times Deutschland says. The paper adds that CMP has the support of insurer Gerling, the two banks HypoVereinsbank and BHF-Bank, and consultants Roland Berger. HypoVereinsbank, a creditor bank of Herlitz, looks at taking a stake in the company through CMP, while Roland Berger has often acted as a consultant for Herlitz, and the company's sales and marketing director was formerly an employee of the consultancy, the paper said. In addition, rumors say that another stationery maker Pelikan is said to be eyeing Herlitz despite its continuous disclaimers regarding the matter. As of press time, Pelikan has not yet given any concrete offer, the daily reported. Herlitz, which twice filed for insolvency, was rescued last year by converting bank debt to equity. It was again rescued through a debt waiver the second time it succumbed to insolvency, the FT Deutschland said. QUAM: Will Cut 800 Jobs & Parents Write Off Investment in UMTS -------------------------------------------------------------- Quam, the mobile communications provider and joint venture of Spain's Telefonica and Finland's Sonera, will eliminate 800 of 900 positions, a report from the German daily Handelsblatt said. Sources close to the company say that Quam's core workforce is to be reduced to a "two-digit figure." Industry insiders said that the decision to cut jobs was reached because the company failed to meet its parents' expectations. Talks about redundancy terms are ongoing, the daily reported. At the end of last month, Telefonica decided to put on hold its activities in Germany due to delays in developing third- generation, or UMTS, mobile technology, the paper said. Since its launch in November 2001, Quam has won just 200,000 customers. Germany's smallest mobile phone provider, O2, has more than 4 million customers, the daily reported. The company's parents, Telefonica and Sonera have written off their investment in Quam's UMTS license, but they intend to hold on to the license. Under the rules of Germany's telecoms industry regulator, holders of UMTS licenses cannot sell their license to third parties. If Quam does not meet the regulator's conditions governing UMTS services, the license must be returned to the government, the paper said. Moreover, the rules stipulate that a UMTS service provider should cover at least 25% of the German population by the end of 2003. If a license is returned, it can be sold, or auctioned off, to one of the existing license holders. This solution has the backing of Germany's leading mobile providers and UMTS license holders, Vodafone D2, T-Mobile, E-Plus and O2. They paid more than EUR8 billion each for their licenses in the auction two years ago, Handelsblatt said SCHNEIDER TECHNOLOGIES: Negotiations Advance Over Sale of Units --------------------------------------------------------------- Schneider Technologies, the insolvent German electronics group, may have secured buyers for its entertainment electronics divisions and laser display technology unit, a report obtained from Financial Times Deutschland and FT Information says. The papers quote sources saying there's progress in negotiations on the planned sale of the assets of Schneider Laser Technologies AG, the subsidiary into which the laser display activities are grouped. Reportedly, six bidders are on the short list to carry out due diligence. Schneider wants development and production activities of the subsidiary to continue at its site in Gera, Germany, the paper says. Schneider Electronics AG, the entertainment electronics subsidiary, may be sold to a Chinese investor, thought to be the company ACDC, sources of the news outfit revealed. Other prospective bidders include Beko of Turkey and BPL of India. Schneider Technologies, formerly Schneider Rundfunkwerke, filed for insolvency in January 2002 due to inability to pay its debts. TELESENSKSCL: Workers Set To File GBP3 MM Lawsuit Vs. Convergys --------------------------------------------------------------- More than 170 former employees of TelesensKSCL, the software developer that was sold under receivership, are set to launch a GBP3 million class action lawsuit against the company's owner, Convergys and the receiver that sold it, a report from the Herald said. TelesensKSCl's receivers Deloitte & Touche axed some 220 of its 370 staff in July after the company suffered financial woes as it experienced a liquidity crisis at its German parent, TelesensKCL AG, the paper said. Early in July, Convergys Corporation -- a US-based competitor -- purchased TelesensKSCL for a price said to top tens of millions of pounds. The dismissed employees claim they were reassured that there was a GBP3.8 million in the bank to cover their salaries. But the former employees said they never received any payment for June, no redundancy payment, no obligatory consultation period and no contractual three-months notice, the paper added. Individual staff losses range from GBP15,000 to GBP30,000, they say. The legal suit is being prepared by Manchester-based lawyers Roydens Employment Solicitors, and is set to be filed later this month at the Employment Tribunals office in Edinburgh, the paper said. Both Deloitte & Touche and Convergys declined to comment on the matter. ========= I T A L Y ========= BLU SPA: Assets Finally Distributed Among Rivals ------------------------------------------------ Assets of the troubled Italian mobile phone operator, Blu SpA, in which British Telecom owns a 29% stake, were finally broken up among rivals yesterday resulting in the shut down of the company, a report in the Independent said. Telecom Italia Mobile revealed it offered at least EUR18 million (GBP11 million) for Blu's shares and some of its assets. Other assets of the Italian company will be pass on to Vodafone's Omnitel, Hutchison's H3G and Wind, part-owned by France Telecom, the paper said. Blu's fate was sealed following the European Commission's decision to permit shareholders to split up Blu after the failure to look for a concrete buyer for the company, the daily added. British Telecom's spokesperson said yesterday it did not anticipate that the Blu's split would effect sooner than expected. The UK-based telecom company had foreseen that Blu won't be broken up for another two months, the paper reported. It is said that BT has since invested about GBP250 million to GBP3 million in Blu over the past three years. BT continues to fund Blu for a total of GBP5m a month but has already written off the value of the Italian venture in its books, the paper said. Telecom Italia Mobile disclosed it absorbed 700 Blu staff as well as various other assets including a call centre in Florence and 1,400 radio base stations. Wind will take over Blu's customer base, the Blu brand and some of the network, the daily said. Additionally, Blu give back its frequencies to the Communications Ministry. The ministry is seen to reassign it to Telecom Italia Mobile, Omnitel and Wind, the Independent added. =========================== U N I T E D K I N G D O M =========================== BAYNFLAX LIMITED: Administrators Selling Food Machinery Business ---------------------------------------------------------------- The Joint Administrative Receivers, P W Engel and J W Davies offer for sale the business and assets of Baynflax Limited Baynflax Limited is a long-established food machinery manufacturer. Main features of the business include: - Turnover GBP2.5 million - New leasehold premises - Strong customer base - Extensive design capabilities - Strength in growing 'ready meals' market Contact Information: Peter Engel or Huw Jones Solomon Hare Oakfield House Oakfield Grove Clifton Bristol BS8 2BN Telephone: 0117 933 3210 E-mail: Wendy-Batchen@solomonhare.co.uk ELECTROPAC: Receivers Offer PCB Manufacturing Concern for Sale -------------------------------------------------------------- The Joint Administrators, Simon Allport and Keith Hinds, offer the business and assets of Electropac (Europe) Limited and Electropac (UK) Limited (In Administration) for sale as a going concern. Key features of these manufacturers of printed circuit boards are: - Strong customer base with long term relationships in place - Approximately 40 employees - 2 manufacturing sites operating in North West England Contact Information: Imogen Scannell 100 Barbirolli Square Manchester M2 3EY Telephone: 0161 333 2753 ITV DIGITAL: Football League Chairman Quits Over ITV Digital Row ---------------------------------------------------------------- The English Footbal League chairman Keith Harris and its chief executive David Burns has stepped out of their posts after receiving criticisms regarding their handling of the ITV Digital row, a report from the Financial Times said. Mr. Burns first hinted of his resignation a few days ago but Mr. Harris's departure is considered a surprise, the paper said. ITV Digital fell earlier this year owing the league a debt of GBP178.5 million. After which, a dispute happened between the league and Carlton Communications and Granada, the pay-Tv's owners. A High Court ended the row with a decision favoring Carlton because the league was unable to prove that the media companies were responsible for ITV Digital's debts, the daily reported. The paper said that Mr. Burns was absent during the meeting of the Football League's board in London. But Mr. Burns released a statement stating his decision to resign from his post. How Mr. Burns and Mr. Harris dealt with the dispute had incited anger from a several club chairmen who were publicly vocal in their sentiments, despite the fact that both executives were not yet employed by the league when it signed the deal with ITV in 2000, the Independent added. JAMES GILBERT: Receivers Sell Clothes Manufacturing Business ------------------------------------------------------------ James Gilbert Limited (In Administrative Receivership), the well- known designer and manufacturer of branded rugby balls and equipment, is for sale. The Joint Administrative Receivers, Stuart Maddison and Richard Rees, offer for sale the business and assets of this Warwickshire based manufacturer and distributor of branded rugby balls, footwear, body protection and clothing. Principal features of the business include: * Worldwide market leader in the supply of rugby balls, equipment and clothing * Global intellectual property rights for the Gilbert brand * Parented technology which has given Gilbert its superiority in this sector * Global distribution network * Supply contracts with most major rugby unions and competition * Freehold property in Rugby, Warwickshire - 1,500 sq ft head office, 8,500 sq ft warehouse * Annual turnover of GBP7 million * With 47 employees from its rugby head office in England * Has operations in Australia, New Zealand and France Contact Information: Stuart Maddison or Ami Coulson PricewaterhouseCoopers Victoria House 76 Milton Street Nottingham NG1 3QY Telephone: 0115 908 2015 Fax: 0115 947 5225 E-mail: ami.coulson@uk.pwcglobal.com KINGFISHER PLC: Gets EU Clearance for Castorama Minorities Offer ---------------------------------------------------------------- Kingfisher plc announced Wednesday that on Tuesday 6th August 2002 the European Commission cleared the proposed offer for the shares of Castorama Dubois Investissements SCA not already owned by Kingfisher plc. Kingfisher will proceed to make a formal offer to the minority shareholders of Castorama in accordance with French takeover offer rules, which Kingfisher expects to make later this month. Under Castorama's articles, the Kingfisher Group will acquire a casting vote at meetings of the governing boards of Castorama (Assemblee des Commandites and Conseil de Gerance) giving it effective control from the time the French stock market regulator (Conseil des marches financiers) approves this cash offer. Contact Information: Ian Harding, Director Broker and Institutional Enquiries Investor Relations Telephone: +44 (0) 207 725 4889 LATMINUTE.COM PLC: Director Resigns From Board ---------------------------------------------- lastminute.com plc announced Wednesday that Linda Fayne Levinson will step down from the board following the Extraordinary General Meeting of the Company on 27th August 2002. Linda has added significant value to the growth of lastminute.com over the last three years and continues to be a great supporter of the business. However, GRP Partners ask their nominated Directors to step down as Directors when the success of their early stage investments is assured. The Directors would like to take this opportunity to thank her for her substantial contribution to the development of the Company. Contact Information: Brent Hoberman Chief Executive lastminute.com plc Telephone: +44 (0)20 7802 4498 LASTMINUTE.COM PLC: Financial Results and Statement for Q3 2002 --------------------------------------------------------------- lastminute.com announced August 7 its strong Third Quarter results for the three months to June 30, 2002. * Customer conversion rate improves to 20.7% from 12.4% in Quarter 3 2001 and from 18.3% in Quarter 2 2002 and cumulative customer numbers since inception are now at record levels, in excess of 1.0 million * Total transaction value for the Quarter grew by 108.4% year on year and 49.8% quarter on quarter to GBP61.0 million (Q3 2001: GBP29.3m, Q2 2002: GBP40.8m) * Gross profit for the Quarter grew by 90.9% year on year and 28.5% quarter on quarter to GBP7.9 million (Q3 2001: GBP4.1m, Q2 2002: GBP6.1m) * EBITDA loss reduced to GBP1.9 million for the Quarter, a reduction of 75.6% year on year and 39.9% quarter on quarter (Q3 2001: loss GBP7.8m, Q2 2002: loss GBP3.2m) * Loss (before goodwill amortization and taxation) down 57.0% year on year and 24.5% quarter on quarter to GBP4.0 million (Q3 2001: loss GBP9.3m, Q2 2002: loss GBP5.3m) * Operating cash outflow of GBP3.2 million for the Quarter, a reduction of 62.2% year on year (Q3 2001: GBP8.6m). The increased operating cash outflow quarter on quarter of GBP1.9 million is in line with expectations (Q2 2002: GBP1.4m) * Cash balance grows to GBP41.5 million at June 30, 2002 * In July 2002 lastminute.com plc announced the proposed acquisition of Travelprice.com SA, one of the largest online travel and leisure providers in France and Italy Commenting on the results, Allan Leighton, Chairman, said: "These results demonstrate the further shift towards Group profitability and positive cashflow. All metrics show underlying improvement and development." Brent Hoberman, Chief Executive Officer, added: "The integration of Travelselect and The Destination Group is progressing well and will be completed by 30 September 2002. This Quarter has been key in terms of the strategic acquisitions which will add considerably to shareholder value and create a step change in the scale of the business." lastminute.com operates directly in six European countries and participates in four international joint ventures, providing inspirations and solutions for customers at the last minute. At June 30, 2002 lastminute.com had over 5.6 million subscribers to its weekly newsletter and had established approximately 15,300 supplier relationships. lastminute.com remains the leading independent European travel and leisure site across six countries. The business is based on the idea of matching supply and demand. lastminute.com offers consumers opportunities to acquire airline tickets, hotel rooms, package holidays, entertainment tickets, restaurant reservations and food delivery, speciality services, gifts and auctions in the United Kingdom, France, Germany, Italy, Sweden, the Netherlands, Spain, Australia, South Africa and most recently Japan. The travel portfolio of lastminute.com has been further supplemented by the acquisition of Travelselect.com and The Destination Group in April 2002 and June 2002 respectively. The financial highlights of the company's latest financial results, including its balance sheet and profit and loss statement may be viewed at: http://bankrupt.com/misc/lastmin.pdf Contact Information: lastminute.com Brent Hoberman - Chief Executive Officer Martha Lane Fox - Group Managing Director David Howell - Chief Financial Officer Telephone: +44 (0) 20 7802 4498 RAILTRACK PLC: Notice Re GBP400 MM Exchangeable Bonds Due 2009 -------------------------------------------------------------- Railtrack PLC (in railway administration) announces the result of Wednesday's meeting of the holders of GBP400 million of its Exchangeable Bonds due 2009. The extraordinary resolution set out in the notice to bondholders dated 16 July 2002 has been passed and, accordingly, the Trustee of the bonds has been authorised to modify the redemption provisions and standstill arrangements in respect of the bonds as set out in the Notice. RAILTRACK PLC: Notice Re GBP350 MM, 5.875% Bonds Due 2009 --------------------------------------------------------- Railtrack PLC (in railway administration) announces the result of Wednesday's meeting of the holders of GBP350 million of its 5.875% Bonds Due 2009. The meeting was adjourned owing to a lack of the required quorum in respect of the extraordinary resolution set out in the notice to bondholders dated 16 July 2002. RAILTRACK PLC: Notice Re 5.875% Bonds Due 2009 ---------------------------------------------- Railtrack PLC announces the result of Wednesday's meeting of the holders of the Company's 5.875% Bonds due 2009. The meeting was adjourned owing to a lack of the required quorum in respect of the extraordinary resolution set out in the notice to bondholders dated 16 July 2002. RAILTRACK PLC: Meeting on Holders of GBP250 MM Bonds Due 2028 ------------------------------------------------------------- Railtrack PLC (in railway administration) announces the result of Wednesday's meeting of the holders of GBP250 million of the Company's Bonds Due 2028. The extraordinary resolution set out in the notice to bondholders dated July 16, 2002 has been passed and, accordingly, the Trustee of the bonds has been authorized to modify the redemption provisions and standstill arrangements in respect of the bonds as set out in the Notice. RAILTRACK PLC: Notice Re 9.625% Bonds Due 2016 ---------------------------------------------- Railtrack PLC (in railway administration) announced the result of Wednesday's meeting of the holders of the Company's 9.625% Bonds Due 2016. The meeting was adjourned owing to a lack of the required quorum in respect of the extraordinary resolution set out in the notice to bondholders dated 16 July 2002. RAILTRACK PLC: Notice Re 9.125% Bonds Due 2006 ---------------------------------------------- Railtrack PLC announced the result of Wednesday's meeting of the holders of the Company's 9.125% Bonds Due 2006. The extraordinary resolution set out in the notice to bondholders dated 16 July 2002 has been passed and, accordingly, the Trustee of the bonds has been authorized to modify the redemption provisions and standstill arrangements in respect of the bonds as set out in the Notice. SCIPHER PLC: Company Profile ---------------------------- Name: Scipher plc Dawley Road Hayes Middlesex UB3 1HH United Kingdom Telephone: (020) 8848 6555 Fax: (020) 8848 6677 Email: info@scipher.com Web site: http://www.scipher.com/ Employees: 337 Pre Tax Loss: GBP12.7 million (USD19.6 million) Total Assets: GBP 39.7 million (USD61.2 million) Total Liabilities: GBP24.6 million (USD37.9 million) Type of Business: Scipher is an independent technology development and licensing company. It originates, develops and commercializes intellectual property (IP) that targets high growth markets worldwide. The company delivers value from IP in by commercializing patent-protected products developed by its own R&D resources through licensing or sale to high-growth markets worldwide. Trigger Event: In the past three years, the company has been incurring mounting losses recording GBP5.4 million in 2000 and GBP10.1 million in 2001. In the second half of 2002, the company experienced higher interim losses due to some contract delays. No. of Shares Issued: 91.06 million 1p ordinary shares Major Shareholders: Henderson Global Investors Ltd 10.21% Deutsche Asset Mgmt 6.38% Advent Private Equity Fund II 5.89% Schroder Inv Mgmt Ltd 5.36% UBS Asset Management Ltd 4.07% Capital International Inc 3.37% Mr A J Bell & Family 3.24% Dr J C White 9.25% Dr A W Vaidya 7.62% Dr K W Gray CBE 7.31% D G Hulston 6.53% Chairman: Dr K W Gray CBE Managing Director: Dr J C White Finance Director: C G Mutter Bankers: HBOS PLC Financial Advisers: Dresdner Kleinwort Wasserstein Stockbrokers: Dresdner Kleinwort Wasserstein Securities Ltd Auditors: PricewaterhouseCoopers Law Firms: Ashurst Morris Crisp PR Advisers: Financial Dynamics REGUS PLC: AGIP KCO in GBP8 MM Outsourcing Deal With Regus ---------------------------------------------------------- In a deal worth more than GBP8 million over five years, Dutch- based oil company Agip KCO will relocate more than 300 people to a new Regus business center in The Hague. 'Agip KCO needs a flexible office solution to accommodate its constantly changing requirements and working with Regus has provided such a solution,' comments John Fenton, property manager of Agip KCO. 'We looked at a number of options. The Regus solution provided us with greater flexibility and assurances of a facility managed to the highest professional standard. Cost calculations demonstrated that it was also the most cost-effective. 'Our employees are our greatest asset and we recognise the need to provide them with a high quality working environment. It is also essential that we find accommodation that offers a high level of technical capability to provide us with a secure transfer of data between our worldwide locations. Regus has handled our requirements expertly.' Mark Dixon, Regus' chief executive, comments, 'The deal with Agip KCO is further evidence that the global trend in structured office outsourcing is rapidly gaining momentum. Businesses of all sizes now appreciate how easily we can accommodate their needs, how flexible our proposition is and just how much we can save them on their total occupancy costs. 'We now have a large portfolio of global clients, including Compaq, Nokia, Fujitsu-Siemens and France Telecom, which recognise the common sense solutions that we provide.' Agip KCO is the operator of the Kashagan field that lies in the northern sector of the Caspian Sea. It operates the field on behalf of a consortium of seven international oil companies (Eni's Agip Caspian Sea, BG Group, ExxonMobil, Inpex, Phillips, Shell, and TotalFinaElf). Contact Information: Stephen Jolly Group Communications Adviser Telephone: 01932 895138 http://www.regus.com REGUS PLC: Announces New Chief for UK & Ireland ----------------------------------------------- Regus plc, the world's leading provider of serviced offices, officially appointments David Ford, former Chief Executive of Sodexho Alliance UK and Ireland, as its new CEO of the United Kingdom and Ireland, with effect from August 27, 2002. David Ford commented: 'I am excited about the prospect of working with the world's leading provider of serviced offices'. Regus CEO Mark Dixon commented: 'We are delighted to have David joining us to head up our UK & Ireland business. We expect him to make a significant contribution to our business'. David Ford, 49, joins Regus from Sodexho Alliance where as CEO for UK and Ireland he looked after 54,000 people and a turnover of �1 billion. Prior to this, David was President of Gardner Merchant in the USA before becoming overall operational Managing Director. Contact Information: Stephen Jolly Group Communications Adviser Telephone: 01932 895138 http://www.regus.com REGUS PLC: Announces New Non-executive Director ----------------------------------------------- Regus plc, the world's leading provider of serviced offices, announced Tuesday the appointment of Martin Robinson, Chairman of Center Parcs UK and CEO of Center Parcs Europe, as an independent Non-Executive Director, with immediate effect. Martin Robinson commented: 'I am looking forward to my new and exciting role with the world's leading provider of serviced offices'. Regus Chairman John Matthews commented: 'We are delighted to have Martin Robinson joining our board. He is a high-profile appointment and we expect him to make a substantial contribution to our business'. Martin Robinson, 40, was educated at Keble College, Oxford. With a varied international business career encompassing the UK, France, Netherlands and the US, Martin has previously held senior roles with Reckitt & Colman, Sara Lee Corporation, McKinsey, Scottish & Newcastle plc and now Center Parcs. Represented in 240 cities in more than 50 countries, Regus is the global leader in supplying fully serviced offices. Offering 96,000 workstations in more than 420 prestigious locations, it is also a market leader in providing meeting rooms, training facilities and public access videoconferencing studios. Contact Information: Stephen Jolly Group Communications Adviser Telephone: 01932 895138 http://www.regus.com REGUS PLC: Second Quarter Results Ending June 2002 -------------------------------------------------- Regus plc, the global serviced office provider, announces its interim results and results for the three months ended June 30, 2002. Announcing the results, Chairman John Matthews commented: 'The trading environment remains tough but Regus has made some progress. We have stabilized our revenues and made modest reductions in EBIT losses over the past two quarters. We enter the second half of the year with our largest ever forward order book and a record number of occupied workstations. 'Regus still faces significant challenges. However, as today's GBP8 million deal with AGIP KCO demonstrates, our offering remains a compelling proposition for customers and, having re- sized our cost base, we believe we are well placed to benefit from an upturn in market conditions'. Operational * Regus operates 424 centres in more than 240 cities in 51 countries. The company is one of the world's largest operator of business centers and are committed to continuing our expansion through a program of international franchising. * Regus now has the highest number of occupied workstations in its history with more than 55,600 business people using our centres on a daily basis. This represents a year-on-year increase of 18 %. * Regus has brought 1,121 workstations back into service ahead of schedule (of which 38% were in the US) in response to customer demand. Financial * Turnover at GBP109.3 million for the quarter was down 18% on the second quarter of 2001 but down just 1% on the first quarter of 2002. * There was a record contracted forward order book of GBP285.4 million at June 30, 2002 (based on workstation revenue but excluding service revenue). * Revenue per available workstation (REVPAW) from established centers was GBP1,367 (2001: GBP2,076), down 5% on the first quarter. * At GBP118 million, costs, fixed and variable, were unchanged on the previous quarter and in line with expectations. * Cash at bank totalled GBP65.4 million at 30 June 2002 of which GBP28.8 million was free cash. * Capital expenditure in the second quarter was GBP4.4 million, in line with expectations. The company's key financial results including the balance sheet and profit and loss statement for the quarter may be viewed at: http://bankrupt.com/misc/regus.pdf REGUS PLC: Company Profile -------------------------- Name: Regus PLC 3000 Hillswood Drive Chertsey Surrey KT16 0RS Tel: (01932) 895000 Fax: (01932) 895001 Website: http://www.regus.com/ Employees: 2,653 Pre-tax Loss: GBP10.7 million/USD16.5 million (Q2 2002) Total Assets: GBP485.6 million/USD 747.4 million Total Liabilities: GBP397.45 million/USD611.7 million Type of Business: Regus plc specializes in renting office space and offers a variety of related services (videoconferencing, telecommunications systems, concierge services) to clients in the global arena. With office space in about 411 business centers in 200 countries, Regus rents its space for as little as one hour or as long as five years. Trigger Event: In December 2001, the group's financial results include an exceptional one-time charge of GBP 90.5 million. This related to the costs of a major restructuring of the business including a reduction in workstation capacity (11% of available total), of which 40% is in the US; various asset write-downs; a rationalization of the workforce and the costs of the abortive acquisition of HQ Global Workplaces. The rapid deterioration in the global economic conditions also contributed to provide unfavorable and worsening economic environment for the company. The company posted GBP54.9 million in losses in 1999 and a narrowed loss of GBP3.9 million in 2000. In 2001, Regus posted another record loss GBP110.0 million. Chief Executive: M L J Dixon Finance Director: S A Stamp Chief Operating Officer: J Mlynski Major Shareholders: Maxon 62.76%(dup) HSBC Trustee (Jersey) Ltd 3.99% Mourant & Co Trustees Ltd 3.12% M L J Dixon 62.76%(dup) Bankers: National Westminster Bank PLC Financial Advisers: Merrill Lynch Stockbrokers: Merrill Lynch International Auditors: KPMG Law Firms: Slaughter and May Davis Polk & Wardwell Ashurst Morris Crisp PR Advisers: Financial Dynamics Total Shares Issued: 582.11 million 5p ordinary shares SPORTSWORLD MEDIA: Company Profile ---------------------------------- Name: Sportsworld Media Group PLC 6 Henrietta Street Covent Garden WC2E 8PU London Telephone: (020) 7240 9626 Fax: (020) 7240 9636 SIC: Television Production and Distribution Employees: 327 Pre-tax Profit: GBP8.7 million (USD13.4 million) Total Assets: GBP245.6 million(USD377.8 million) Total Liabilities: GBP92.0 million (USD141.5 million) Type of Business: Formerly known as Stanco Exhibition Group PLC (Westport Group PLC), Sportsworld Media Group PLC is a global sports related marketing, event management and television production and distribution business. Main activities of the group involve sports events management, marketing of outdoor advertising, sports consultancy, advertising and licensing of television programs, sponsorship arrangement, international and pay television sales representation licensing and merchandising in the global sports marketing business. Trigger Event: Through an aggressive acquisition strategy, the company has added athlete representation to its services and expanded beyond sports-related programming and distribution. However, Sportsworld Media has not escaped the effects of the advertising downturn, as companies have been slow to step up as event sponsors. On March 27, 2002, Sportsworld announced it sought the disposal of parts of its business as it had been unable to find a purchaser for the entire Company. The Board further announced in April 2002 that although positive discussions have taken place with several parties interested in acquiring the separate parts of the business, the Company was unable to secure working capital to continue trading while this sale process continues. Consequently, on April 10, 2002, the Board requested its lenders to appoint an Administrative Receiver to Sportsworld Media Group plc (the parent company). The Company's subsidiaries continue to trade under the control of their existing management. Major Shareholders: JP Morgan Fleming 7.37% Edinburgh Fund Mgrs PLC 7.00% Merrill Lynch Inv Mgmt Inc 6.29% Sovereign Trust Intl Ltd 6.08% Gartmore Inv Mgmt PLC 4.17% Chief Executive: G J Brown Group Finance Director: M W Gardner Non-Executive Chairman: J L Bernbach Bankers: National Westminster Bank PLC Financial Advisers: R P & C International Ltd Auditors: KPMG Law Firms: Norton Rose Financial PR Advisers: Financial Dynamics No. of Shares Issued: 68.84 million 1p ordinary shares TERONIX ENGINEERING: Administrators Sell Turned Parts Maker ----------------------------------------------------------- The Joint Administrative Receivers, Alistair Grove and Robert Hunt, offer for sale the business and assets of Teronix Engineering Limited (In Administrative Receivership). Teronix is a long established West Midlands based company, manufacturing precision turned parts for the automotive and double glazing industries (trading as Young Barber) and high specification reaction cell pressings for the chemical industry (trading as Press Tools). Principal features of the business include: * Annual turnover GBP5 million * 80,000 sq ft factory on 2.6 acre lomg leasehold site * Established customer base * Skilled workforce, Young Barber (110 employees) and Press Tools (9 employees) * Unique niche products and production engineering technology * CNC and single and multi-spindle turning machinery Contact Information: Alan Limb PricewaterhouseCoopers Cornwall Court 19 Cornwall Street Birmingham B3 2DT Telephone: 0121 200 3000 Fax: 0121 265 5650 Email: karen.t.wilkins@uk.pwcglobal.com TELEWEST COMMUNICATIONS: Appeals for GBP2.25 BB Loan Waiver ----------------------------------------------------------- Loss-making cable company Telewest is expected to receive a waiver from the lenders backing a GBP2.25 billion bank loan next week, sources tell the Scotsman report, paving the way for the company to begin its debt restructuring. Telewest met with its bankers Tuesday to formally request the waiver. This will open discussions with bondholders on an anticipated debt-for-equity swap. The waiver was designed to avoid side deals being cut with bondholders or the imposition of a structure that could damage banks' recovery prospects, the paper adds. The request is expected to be cleared quickly as banks are confident of recovery, sources of the news outfit say. TELECITY PLC: Reveals Q2 2002 Interim Results --------------------------------------------- Key Points: * Reduction in EBITDA loss, from GBP1.8m in Q1 to GBP1.5m in Q2 * Cash of GBP11.0m - company fully funded to reach a cash positive position * Cost base reduced by 24% from same period last year * Sales pipeline continuing to grow * Appointment of Rick Hudson as CEO Michael Hepher, Chairman, said: 'The market continues to be difficult and shows no immediate signs of bouncing back before the end of 2002. Through its investment in management resources, coupled with the new, devolved organisational structure and lower cost base, TeleCity intends to remain responsive to the changing needs of the market and its customers, whilst being prepared for the recovery in demand when it occurs. 'While he Board remain confident that the demand for colocation services will in time lead to improved order intake and revenue performance, it is the actions taken now to improve profitability and manage costs that will enable the progress towards generating cash to continue.' 2002 Interim Results Overview Market conditions in the first half of 2002 are little changed from the previous year, although the over-supply issues are being addressed in the sector with the exit of a number of players. Given these circumstances, we believe TeleCity is winning an increasing share of the colocation space being sold and, with a secure financial position and increasing awareness of the brand, are particularly well placed to benefit from an upturn in market demand when it occurs. We are delighted to report that the number of our value-added service provider and solutions customers is growing steadily, although we are obviously impacted by the fall-out in the Alternate Carriers market. Management has exceeded its targets for cost reduction, although this has been offset in the near term by the loss of revenues from KPNQwest, with the result that the Company is now forecast to become EBITDA positive in Q2 2003. The Board remain confident that the business is fully funded to reach a cash positive position. Adapting to the evolving market Reflecting the changing pattern of market demand, the Board has decided to put more emphasis on winning a larger share of the regional and national business available from emerging service providers and solutions companies. Where previously TeleCity's growth has been through business with pan-European carriers, the market has evolved so that future expansion is best driven in the local markets to a more diverse customer base. Considerable time has been invested in establishing high quality management teams in each of our European locations and those teams are now ready to take on broader responsibility for driving business in their domestic markets. We are therefore implementing a new organisation model which simplifies the sales structure and enhances the role of the Country Sales Managers who will be additionally responsible for the country P&L, Business Development activities, local Marketing initiatives and Customer Service. This approach is a natural evolution of TeleCity as a pan- European Company and the timing of this organisational change is designed to leverage and exploit the best market opportunities available to the Company. Board changes The appointment of Rick Hudson as Chief Executive of TeleCity in June has allowed Michael Hepher to revert to his original Non- Executive Chairman role. Rick's experience at Netscalibur, and particularly with Cable and Wireless, brings a strong strategic input and detailed market knowledge that will greatly benefit TeleCity. Rick has been instrumental in determining the changes to our business focus and future direction, and under the revised organization structure the Country Sales Managers will report directly to him. The Board has accepted the resignation of Les Johns as Sales and Marketing Director. Although this departure was initiated by Les for personal reasons, the timing has allowed his responsibilities to be included in the devolution of Sales and Marketing activity to the regional management teams. Les has made an important contribution in his short time with the Company and we wish him well in the future. Property portfolio Of the nine sites which form the basis of TeleCity's business, six sites are now EBITDA positive and the three remaining sites are making good progress towards this objective. These sites are now well established, have good operational resilience and receive consistently good feedback from our customers in terms of service and responsiveness. With the announced closure of Edinburgh and Munich, added to the undeveloped sites in London and Manchester, the Company has now identified the four locations it intends to exit. Negotiations are at an advanced stage with regard to the exit from two of these locations, and it is hoped that an announcement of their completion can be made during Q3. Cost base management The continued reduction in the EBITDA loss is attributable to management's vigilant approach to the cost base of the Company. Although much of the Company's cost base is fixed in terms of property rents and people costs, the total cost base in Q2 2002 is reduced by 24% from the same period last year. With the announced changes in organisation structure, the further decentralisation of the business towards the regions and the reduction in operational headcount as the site development phase is completed, the existing headcount will be reduced by a further 40-50 jobs. This headcount reduction will generate additional savings of GBP2.0m per annum, at a redundancy cost of GBP0.55m to be included as an exceptional cost in our Q3 results. Once this process has been completed the total headcount will be around 180, reduced from 340 a year ago. Together with the cost savings being realised from the property rationalisation, the momentum of progress towards EBITDA break even is clearly maintained. Interim Results to 30 June 2002 Before exceptional items, the EBITDA loss for the half year of GBP3.3m, compares to GBP7.1m in the corresponding period last year. This includes an EBITDA loss of GBP1.5m in Q2, reduced from GBP1.8m in Q1, which is the fourth consecutive quarterly improvement. Revenues show a slight reduction in Q2 (from GBP6.2m to GBP6.0m) due to a combination of customer failures, notably KPNQwest, and reduced activity levels with some existing customers. The exceptional item, GBP9.2m, comprises asset write-downs and lease termination premiums in sites to be closed of GBP8.4m, and redundancy costs of GBP0.8m. The closure of the site in Edinburgh was announced in April. The Board has now decided to close the operation in Munich where only a small part of a very large site has been developed and sold. It is the Board's view that market demand is such that with the scale of the site and the associated rental cost it will take too long to produce a cash positive position. The cash balance of GBP11.0m is in line with our forecasts having absorbed exceptional redundancy costs in the second quarter. The demise of KPNQwest, whilst affecting ongoing revenues, did not result in a material bad debt as, in common with all other customers, payments for space are made three months in advance. Sales and Marketing Customer enquiries continue at a healthy level, and the pressure to limit capital spending throughout the telecoms sector creates significant interest in the TeleCity proposition. The 150,000 square feet of fitted out space currently available remains one of our primary assets, and the Sales and Marketing strategy continues to promote the availability of standard and bespoke value-added services to existing and potential customers. Much work has been done to increase the awareness of TeleCity, with local language web sites now live in all countries. Holland and the UK remain strong markets for TeleCity, continuing to drive both sales order intake and revenues. We are now moving to replicate this approach of strong market knowledge and customer intimacy in each of our European locations, moving TeleCity into the top-tier of players in each domestic market. In this respect, we are pleased to report that, in both Germany and Sweden, we have recently been successful in recruiting top class sales managers who we are confident will drive forward this objective in the near term. Outlook The market continues to be difficult and shows no immediate signs of bouncing back before the end of 2002. This makes it tough for everyone, but such environments favour the stronger companies. Through its investment in management resources, coupled with the new, devolved organisational structure, TeleCity intends to remain responsive to the changing needs of the market and its customers, whilst being prepared for the recovery in demand when it occurs. While the Board remain confident that the demand for colocation services will in time lead to improved order intake and revenue performance, it is the actions taken now to improve profitability and manage costs that will enable the progress towards generating cash to continue. A copy of the company's balance sheet and income statement may be viewed at http://bankrupt.com/misc/telect.pdf Contact Information: TeleCity Rick Hudson, Chief Executive Martyn Ellis, Finance Director Telephone: 020 7638 9571 WIGGINS GROUP: Forms Joint Venture to Develop Fairfield Hospital ---------------------------------------------------------------- Galliford Try plc, the construction and housebuilding group, is pleased to announced Tuesday that a stand-alone joint venture with property developer, Wiggins Group plc -- www.wigginsgroupplc.com -- to carry out the residential development of the former Fairfield Hospital site near Letchworth, Bedfordshire. The new joint venture company, Fairfield Redevelopments Ltd, has purchased 44 acres of the 69 acre development site for GBP14.7 million of which GBP2 million is deferred to January 2003. The listed building itself, and 38 acres are already under contract to be sold to a number of leading housebuilders, including Stamford Homes, with completion taking place as the land is serviced. Wiggins will retain GBP2 million of deposits already paid on these sales. The balance of six acres will be sold when the infrastructure has been completed. Twenty-five acres has already been sold to a consortium of housebuilders, including Stamford Homes, a Galliford Try housebuilding division. Fairfield Redevelopments Ltd will install the necessary infrastructure, with Stamford Homes acting as project manager for the entire site. Construction is anticipated to commence in January 2003, with the first housing completions at the end of 2003. The whole development is expected to take four years. Fairfield Redevelopments Ltd is being financed by GBP4.5 million of equity and loan stock provided equally by the joint venture partners and the balance, with a non-recourse bank facility, from the Royal bank of Scotland - Real Estate Finance Group. Total revenues of the joint venture are expected to exceed GBP45 million. The development, which is within easy commuting distance of London, has planning consent for 853 homes, including 101 in Fairfield Hospital, a grade II listed 19th century building. Stamford Homes themselves will develop 106 homes. Commenting David Calverley, Chief Executive of Galliford Try said: "Fairfield Park represents one of the few opportunities for major residential development in the South-East. This project illustrates our strong presence in this market and our skills and expertise in specialist redevelopment." Contact Information: David Calverley Chief Executive Telephone: 01895 855219 Ann-marie Wilkinson Beattie Financial Telephone: 0207 398 3301/07730 415019 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. 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