/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020903.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, September 2, 2002, Vol. 3, No. 174 Headlines * C Z E C H R E P U B L I C * SPOLANA: Announces Plans to Liquidate Facilities * F I N L A N D * SONERA CORPORATION: HPO Group Selected Sonera as Partner SONERA CORPORATION: Will Launch Incomplete UMTS Services in Sept. SONERA CORPORATION: Yahoo! Exec Continues as CEO of Sonera Zed * F R A N C E * VIVENDI UNIVERSAL: Will Sell Press Unit & Comareg to Socpresse VIVENDI UNIVERSAL: Sells Stake in Vizzavi for EUR 142.7MM * G E R M A N Y * BABCOCK BORSIG: Management Still in Charge During Insolvency BABCOCK INTERNATIONAL: Engineering Group Wins GBP100 MM Deal BRAIN INTERNATIONAL: Court Institutes Insolvency Proceedings CARGOLIFTER AG: Revised Rescue Plan Gets Nod From Regional Gov't IN-MOTION AG: Announces 2001/2002 Third-Quarter Results * H U N G A R Y * WEST TRAVEL: Suspends Operations as It Faces Liquidation * I R E L A N D * DATALEX PLC: Announces H1 Results Ending June 30, 2002 * P O L A N D * ELEKTRIM SA: ET Sells Cable TV Business for EUR91 MM NETIA HOLDINGS: Adopts Resolution Agreed at Shareholders' AGM NETIA HOLDINGS: Creditors' Meeting on Plan Ends September 30 * S W E D E N * LM ERICSSON: Investors Will Back Ericsson GBP30 BB Rights Issue LM ERICSSON: Plans to Outsource IT Operations * S W I T Z E R L A N D * 4M TECHNOLOGIES: Holding Announces 2002 First-Quarter Results SWISSAIR GROUP: Administrator Completes Sale of Nuance Group * U N I T E D K I N G D O M * ABERDEEN PREFERRED: Trust Reports Pre-paid Bank Borrowings ANTISOMA: Biopharma Group Appoints New Chief Clinical Officer CLAIMS DIRECT: Ex-CEO Plans to Set up Rival Company CORDIANT COMMUNICATIONS: Will Replace CEO Michael Bungey GLOBAL CROSSING: Europe Limited Chapter 11 Case Summary GLOBAL CROSSING: Conferencing Limited Chapter 11 Case Summary JOE'S BASEMENT: Receivers Sell Photographic Processing Company KINGFISHER: Will Launch Formal Bid for 45% of Castorama This Week SCAN RE INSURANCE: Announces No First Meeting for Creditors =========================== C Z E C H R E P U B L I C ============================ SPOLANA: Announces Plans to Liquidate Facilities ------------------------------------------------ The National Property Fund recently announced a tender for the liquidation of one of the chemical company Spolana's facilities in Neratovice, as it is considered a national environmental burden, a report from CEE News says. The plant is located on the premises of Spolana's old amalgam electrolysis buildings, which are allegedly contaminated with mercury. FNM says it will assess the bids by their price. The cost of the liquidation of the buildings is estimated at some KCK500-600million. The reclamation is set to end in 2011. Trial operation and monitoring will last till Dec 31, 2013, the paper says. The schedule for the formal offer of bids is on November 7. Candidates have to deposit an amount worth KCK15 million, the daily says. Spolana is one of the top chemical factories in the Czech Republic. It manufactures mainly ethylene-based products. Last August 23, the plant was flooded and a number of leakages occurred, the CEE News reports. ============= F I N L A N D ============= SONERA CORPORATION: HPO Group Selected Sonera as Partner -------------------------------------------------------- The Hameenlinna-based HPO Group and Sonera have concluded an agreement on extensive cooperation. Sonera buys 40% of Telekolmio Oy, a company belonging to the HPO Group. "We will combine Sonera's national services and the regional operations of the HPO Group to form an entity that will improve our customer service. We aim to develop new services and operating methods that will increase the revenues of both the HPO Group and Sonera," says Reijo Syrjalainen, CEO of the HPO Group. The HPO Group includes Hameen Puhelin Oy, Hameen Sanomat Oy, Hameen tietotekniikkakeskus Oy, and Telekolmio Oy. The HPO Group provides its customers with Sonera's mobile communications services, long-distance and international connections, data communications, and intelligent network, Internet and broadband services. The cooperation is based on local sales and customer responsibility. Telekolmio Oy operates on the corporate customer market, and the customer relationship is established between Telekolmio and the end user. The HPO Group is responsible for the sale of Sonera's services targeted at consumers, and this is implemented as distribution channel cooperation. HPO and Telecolmio can also continue to sell other services, provided by Sonera's competitors. Telekolmio Oy is a subsidiary of Hameen Puhelin Oy and responsible for corporate customers. Hameen Puhelin acquired the entire share capital of Telekolmio from ElisaCom Oy earlier this summer. Sonera and HPO have agreed to keep the value of the transaction confidential. "By cooperating, we increase the demand for Sonera's products in the operating areas of Hameen Puhelin and Telekolmio. Our cooperation is based on business; the HPO Group will retain its independent regional role," says Jaakko Nevanlinna, Business Function Executive at Sonera. "The transaction strengthens the provision and development of regional telecommunications and content services. And this supports the local, customer-oriented operations of the HPO Group," says CEO Syrjalainen. The transaction is subject to the approval of the Finnish Competition Authority. Sonera Corporation (http://www.sonera.com)is a leading provider of mobile and advanced telecommunications services. Sonera is growing as an operator, as well as a provider of transaction and content services in Finland and in selected international markets. The company also offers advanced data solutions to businesses, and fixed network voice services in Finland and neighbouring markets. In 2001, Sonera's revenues totaled EUR 2.2 billion, and profit before extraordinary items and taxes was EUR 0.45 billion. Sonera employs about 7,400 people. Contact Information: Reijo Syrjalainen CEO HPO Group Tel. +358 3 614 3210, E-mail: reijo.syrjalainen@hpo-yhtyma.com Jaakko Nevanlinna Business Function Executive Sonera Corporation Tel. +358 2040 60662, E-mail: jaakko.nevanlinna@sonera.com SONERA CORPORATION: Will Launch Incomplete UMTS Services in Sept. ----------------------------------------------------------------- The services to be launched by Sonera on September 26 are among the first 3G mobile communications services. The services will initially operate primarily on the present mobile communications network (GSM/GPRS) on account of the technological delay and also on the UMTS network within the coming months. Sonera is at the forefront of launching 3G services, making roll- out and the transition between technologies as smooth as possible. The development of UMTS technology is progressing, but not yet completed. The services Sonera will launch on September 26, 2002 can be used with the Java enabled MMS phones available on the market. "Sonera's strength has always been its ability to provide its customers with the most advanced services and the latest technology. In spite of the delay and slower overall start in UMTS technology deployment globally, we continue to be in the vanguard of the development of next generation services. The services that we will launch in September will be the first step, after which we can continue with the development work. These services represent an important milestone on our way from the second generation of mobile communications to the third one," says Anni Vepsalainen, Executive Vice President responsible for Sonera's 3G mobile communications project. Since January 1, 2002, Sonera's UMTS network has been operational in limited areas within the Greater Helsinki area, Tampere, Turku and Oulu. The network opened at the beginning of this year is the first UMTS network in Europe that covers several towns. A limited commercial pilot is planned for the first quarter of 2003. Commercial UMTS mobile communications will be started on Sonera's network in 2003 as soon as there is a sufficient number of UMTS enabled terminals available and this is feasible in view of the maturity of the network technology. Sonera estimates that more extensive UMTS markets will be opened in the years 2004 and 2005 in Finland. Third generation services refer to the general development of mobile services towards new kinds of visual, easy-to-use multimedia services that utilize various mobile network technologies, such as GPRS, UMTS, Java, MMS and XHTML. Contact Information: Anni Vepsalainen Executive Vice President Sonera Corporation Tel. +358 2040 58810 E-mail: anni.vepsalainen@sonera.com SONERA CORPORATION: Yahoo! Exec Continues as CEO of Sonera Zed --------------------------------------------------------------- Sonera Corporation announced Juha Varelius, a member of Sonera's Executive Management Team and Head of its Products and Services layer, stepped down and that Yahoo! Europe appointed him vice president and managing director of Yahoo! Mobile, based in London, the company said. Mr. Varelius continues for the present as CEO of Sonera Zed Ltd., a joint venture between Sonera (85 %) and Yahoo! (15 %). Anni Vepsalainen, a member of Sonera's Executive Management Team and Head of Human Resources and Competencies, will also take on the role of Acting Head of Sonera's Products and Services. These changes are effective immediately. Harri Koponen, President and CEO of Sonera said, "Juha's mobile product and service experience should serve him well at Yahoo!. We wish him good luck in his new assignment. Anni Vepsalainen's past success shepherding our mobile businesses over the high growth path during 2000 and 2001 will make for a seamless leadership transition at our Products and Services layer." Sonera and Yahoo! announced a strategic and commercial partnership in early August 2002. Yahoo! made a strategic investment in Sonera Zed Ltd, by acquiring a 15 percent equity interest. Yahoo! has the right to increase its shareholding over the next two years for up to 100 percent ownership, or withdraw from the transaction. Under the terms of the commercial agreement, zed and Yahoo! will provide a wide range of co-branded mobile services which will be promoted across Yahoo! Europe, beginning in the U.K., Germany, and Italy. Contact Information: Jari Jaakkola Executive Vice President Investor Relations SONERA OYJ Harri Koponen President and CEO Sonera Corporation Tel. +358 2040 54110 =========== F R A N C E =========== VIVENDI UNIVERSAL: Will Sell Press Unit & Comareg to Socpresse -------------------------------------------------------------- Vivendi Universal and the Socpresse group have formed plans to sell the consumer press division of Vivendi Universal Publishing (Groupe Express-Expansion and Groupe l'Etudiant) and Comareg (including Delta Diffusion, which is to join Mediapost), the Vivendi group said in a recent statement. The two transactions are together worth a total cash amount of more than EUR 300 million. The plans will be submitted to the personnel representation organizations, the Boards involved and the appropriate authorities. They will enable VUP's consumer press division and Comareg to become part of a coherent strategy that will guarantee their future and growth. VIVENDI UNIVERSAL: Sells Stake in Vizzavi for EUR 142.7MM --------------------------------------------------------- Vivendi Universal sold Vodafone its 50% share of Vizzavi. Following the transaction, Vivendi Universal has received EUR 142.7 million. Vivendi Universal will no longer finance Vizzavi's development for the 2002-2003 financial year, thus saving 171 million euros. The sale of Vizzavi forms part of the plan to dispose of non-core assets and to reduce cash drains on the Vivendi Universal group. Vivendi Universal is taking over 100% of Vizzavi France. Vizzavi France will now operate independently, but will continue to benefit from Vizzavi's technical support and R&D. In addition, the commercial cooperation between Vizzavi France and SFR will be strengthened. ============= G E R M A N Y ============= BABCOCK BORSIG: Management Still in Charge During Insolvency ------------------------------------------------------------ A court recently ruled that the management board of German engineering firm Babcock Borsig AG will stay in charge as it enters insolvency proceedings, a report from Bloomberg says. The news agency says Chief Executive Officer Horst Piepenburg, observed the court's decisions increases the chances of the engineering company to remain in business. The decision further applies to Babcock's 18 subsidiaries. Babcock, an 111-year-old company, in July filed for protection from creditors after it lacked the funds to pay workers, and banks such as Deutsche Bank AG and Commerzbank AG, refused to inject emergency cash. The company has said it aims to create a new company comprising its main units. Meanwhile, Troubled Company Reporter recently reported that Babcock is considering a possible legal battle over One Equity Partners' purchase of the engineering firm's HDW unit. Babcock's insolvency administrator Helmut Schmitz and its new chief executive, Horste Piepenburg, legal experts are currently studying the prospects for a legal application for the reversal of the sale, the TCR said. Piepenburg noted there are many indications that OEP was aware of Babcock's woes when it closed the deal and possibly used the knowledge of Babcock's imminent insolvency to its advantage, the TCR added. Previously in March, Babcock's former chief executive, Klaus Lederer, sold a stake of 25% in HDW to OEP. The U.S. company bought a further 50% from Preussag AG, now known as TUI, the TCR reported. Babcock still owns the remaining 25% in HDW, but it used the stake as collateral against a loan of EUR50 million from OEP. Babcock may be forced to pay back the EUR50 million in order to hold on to the shares. Unfortunately, the company does not own such amount as of the present. Once OEP would be able to take control of the remaining 25% stake, it will have the power to go ahead with its controversial plan to allow U.S. armaments firm Northrop Grumman to acquire a stake of 20% minus one share, the TCR said. BABCOCK INTERNATIONAL: Engineering Group Wins GBP100 MM Deal ------------------------------------------------------------ Insolvent German engineering company Babcock Borsig won a seven- year defense logistics deal worth more than GBP100 million for the procurement and delivery of electrical and electronic components for the armed forces, a report from Business A.M. says. The company said the contract will start in 2003 and will be managed by Rosyth, the news agency reports. Babcock's chairman, Gordon Campbell, said: "The award of this major contract is a fine example of Babcock utilizing its skill base at Rosyth in a new role, and continuing its commitment to providing a wide range of services to the MoD." The Defence Logistics Organisation, the MOD body responsible for providing joint logistic support to the U.K.'s Armed Forces awarded the contract, the news outfit adds. BRAIN INTERNATIONAL: Court Institutes Insolvency Proceedings ------------------------------------------------------------ The Local Court (Amtsgericht) in Freiburg instituted insolvency proceedings for the three companies BRAIN International AG, BRAIN Automotive Solutions GmbH and BRAIN Industries Solutions GmbH on August 30, 2002. Reinhard Blumenthal, tax consultant of Waldkirch, has been appointed as insolvency administrator. Mr. Blumenthal had previously been appointed as provisional insolvency administrator. The board of BRAIN International AG has instituted the proceedings on July 5, 2002 by filing for provisional insolvency. In the interim period, the board, the particular management and Reinhard Blumenthal have worked out a restructuring and reconstruction concept for the group and have continued discussions with potential strategic investors and financial investors. Both the administrator and the board are confident that these discussions will soon be concluded successfully. Operations world-wide will continue as before. Beside positive business trends, particularly in the USA, numerous new business deals have been made during the provisional insolvency proceedings, and ongoing projects are progressing successfully. CARGOLIFTER AG: Revised Rescue Plan Gets Nod From Regional Gov't ---------------------------------------------------------------- Insolvent German freight airship maker Cargolifter AG's management's revised rescue plan created by the insolvency administrator receives approval from the regional government of the Land of Brandenburg, a report from the Financial Times Deutscheland says. Cargolifter's supervisory board has already approved the plan. The plan's financing details will be revealed next Tuesday. A final decision on the completion of the recovery package will be taken at the creditors' meeting on September 27, the paper adds. Under the revised plan, the reorganized public limited company CargoLifter AG will also carry out orders on behalf of other companies, while a separate subsidiary will take over research and development activities. Another company will be formed to absorb those employees of the company who are not offered employment either by CargoLifter AG or by the research subsidiary, the daily reports. The regional government has refused to comment on the revised plan. Information regarding the prospective investors was not revealed. IN-MOTION AG: Announces 2001/2002 Third-Quarter Results ------------------------------------------------------- In the first nine months of the financial year 2001/2002, which ends on September 30, the international media group IN-motion AG, Frankfurt had sales of EUR 61.12 million, according to US-GAAP. Compared to EUR 57.04 million in the same period of the last financial year, sales increased by EUR 4.08 million. The EBITDA in the reporting period decreased from EUR 23.66 million to EUR 1.63 million. EBIT decreased to EUR -13.63 million compared to EUR -1.21 million for the period from October to June in the previous year. The consolidated net loss as of June 30, 2002 increased to EUR - 19.99 million, in the respective period of the last financial year the net loss was EUR -3.54 million. The difference to the previous year results from foreign currency losses of EUR 7.2 million at the end of the period as well as from increased sales costs because of the initial consolidation of SPV for the entire reporting period. The Film/TV division had sales of EUR 23.57 million, in this segment the EBITDA was EUR 3.93 million, EBIT was EUR -10.31 million and the net loss was EUR 16.65 million. The figures reflect the current development in this industry. In the course of the redirection in the Film/TV division, IN- motion AG has reduced its shareholding in Myriad Pictures from 100% to 30%. The Music division generated sales of EUR 37.55 million, the EBITDA was EUR -2.31 million and the EBIT was EUR - 3.32 million. The net loss was EUR 3.34 million. The negative EBITDA in the Music division results from setting up the labels, SPV had a positive EBITDA of EUR 1.92 million, which shows an explicit increase in sales against the current market trend. ============= H U N G A R Y ============= WEST TRAVEL: Suspends Operations as It Faces Liquidation -------------------------------------------------------- Hungarian travel agency, Relax Holiday Tourism Kft, formerly known as West Travel, has ceased operations in face of its imminent liquidation, a report from CEE News says. The company's insurer Allianz Hungaria Rt will take charge of flying holidaymakers back to Hungary and reimburse customers up to the limit stated in their insurance policies, the paper adds. Sources say that the company lost a court case after it ran up and failed to pay debts of EUR 8,130 million to rival Eurotours Kft, the daily reports. ============= I R E L A N D ============= DATALEX PLC: Announces H1 Results Ending June 30, 2002 ------------------------------------------------------ Datalex plc (http://www.datalex.com/)announced its half-year results for the six months ending June 30, 2002. "Datalex's results are generally in line with expectations for the first half of 2002, during which the group's operating costs were reduced by over 40 percent on the comparative interim figures," said Datalex Chief Executive Officer Neil Beck. "This period has seen some signs of recovery in the travel industry, in general, and the fuller realisation among prospective clients of the business value of Datalex's Internet and e-Commerce technology. Datalex is well positioned to capitalize on these improving market conditions." First-half 2002 results include: Operating loss before goodwill amortization and the fair-value charge of share awards to employees reduced from US$15.5 million in H1 2001 to US$7.2 million in H1 2002. Operating expenses reduced from US$18.9 million in H1 2001 to US$10.5 million in H1 2002. An improvement in basic and diluted loss per share from US$0.44 in H1 2001 to US$0.20 in H1 2002. A net cash balance at 30 June 2002 of US$41.8 million. Strong revenue streams maintained with customers such as Worldspan, Air Canada, Amtrak and Singapore Airlines. New agreements signed with American Trans Air, Siemens, PT Garuda Indonesia, Iterra (France), Saudi Arabian Airlines and South African Airlines. In March 2002 Datalex acquired the remaining 50 percent of Yatra Corporation, which it did not already own, for a nominal cash consideration. During the period, Datalex in April 2002 voluntarily delisted from NASDAQ and took up a primary listing on the Irish Stock Exchange. Datalex is a leading provider of technology solutions for the global travel industry. Founded in 1985, the company is headquartered in Dublin, Ireland, and maintains offices throughout the world: Europe (Amsterdam, Frankfurt, Paris, Manchester); USA (Atlanta, Petaluma, Minneapolis); and Asia- Pacific (Melbourne, Singapore). Consolidated Profit and Loss Account For the 6 months ended 30 June 2002 - unaudited Six months Six months Year ended ended ended 31 30 June 30 June December 2002 2001 2001 US$'000 US$'000 US$'000 (unaudited) (unaudited) (audited) Turnover - Existing operations 11,493 17,857 28,382 - Acquisitions 22 115 651 11,515 17,972 29,033 Cost of sales (8,910) (13,512) (23,324) Gross Profit 2,605 4,460 5,709 Operating expenses (10,520) (18,873) (34,245) Exchange gain/(loss) 741 (1,134) (838) Goodwill amortisation (2,683) (14,021) (19,078) Fair value of share awards to employees (662) (923) (1,115) Operating Loss - Existing operations (9,945) (30,309) (48,871) - Acquisitions (574) (182) (696) (10,519) (30,491) (49,567) - Share of operating loss of associates (249) (472) (1,165) Restructuring charges - - (4,619) Impairment charges (2,491) - (40,212) Loss on Ordinary Activities before Interest and Tax (13,259) (30,963) (95,563) Interest receivable and similar income 437 1,904 2,747 Interest payable and similar charges (46) (4) (7) Loss on Ordinary Activities before Taxation (12,868) (29,063) (92,823) Tax on loss on ordinary activities (34) (40) 64 Loss on Ordinary Activities after Taxation (12,902) (29,103) (92,759) Minority interests 3 333 572 Loss for the Financial Period (12,899) (28,770) (92,187) Profit and Loss Account, beginning of period (126,788) (35,716) (35,716) Transfer in respect of share awards to employees 662 923 1,115 Profit and Loss Account, end of period (139,025) (63,563) (126,788) Basic and Diluted Loss Per Ordinary Share (in US cents) 0.20 0.44 1.40 Datalex plc Consolidated Balance Sheet At 30 June 2002 - Unaudited 30 June 30 June 31 December 2002 2001 2001 US$'000 US$'000 US$'000 (unaudited) (unaudited) (audited) Fixed Assets Tangible fixed assets 4,350 8,102 5,468 Financial assets 150 250 150 Associates 599 7,920 761 Intangible assets - goodwill 6,535 45,057 11,687 11,634 61,329 18,066 Current Assets Stocks 7 64 3 Debtors 10,714 16,157 8,086 Cash at bank and in hand 49,555 72,077 58,159 60,276 88,298 66,248 Creditors: Amounts falling due within one year (14,880) (17,871) (15,028) Net Current Assets 45,396 70,427 51,220 Total Assets less Current Liabilities 57,030 131,756 69,286 Provision for Liabilities and Charges (1,333) (581) (1,568) Net Assets 55,697 131,175 67,718 Capital and Reserves Called-up share capital 6,817 6,817 6,817 Share premium 79,187 79,302 79,187 Other capital reserves 105,308 105,308 105,308 Other reserve - deferred consideration 1,189 1,194 1,189 Other reserve - foreign currency translation (306) (479) (525) Profit and loss account (139,025) (63,563) (126,788) Shareholder's Funds 53,170 128,579 65,188 Minority Interests 2,527 2,596 2,530 Total Capital Employed 55,697 131,175 67,718 =========== P O L A N D =========== ELEKTRIM SA: ET Sells Cable TV Business for EUR91 MM ---------------------------------------------------- Elektrim SA's subsidiary Elektrim Telekomuniacja will examine bids for Poland's third largest cable TV network Aster City on Friday, CEE News reports. El-Viv Telecom, which is owned by ET, has to be sold to cover a part of the USD 100 million (EUR 100.93 million) that ET owes Elektrim. Several offers were made for Aster City. The companies that already signified their interests are the Innova Capital a consortium of private equity funds, AIG CET, Enterprise Investors, a consortium of UPC and Advent International, a consortium of Vectra cable television, a group of private equity funds including BRE Private Equity, a consortium of Multimedia and Israeli investment funds and the EMPE fund, the paper says. UPC, Vectra and Multimedia are tipped as favorites in the bid. Preliminary bid prices have been placed between USD 80 million (EUR 80.74 million) to USD 90 million (EUR 90.84 million), the paper reports. Investors are said to have doubts over the technical quality of Aster City's broadband network, the real number of clients, expected profits and whether clients will leave the network when prices are increased by over 10% in September, the paper adds. NETIA HOLDINGS: Adopts Resolution Agreed at Shareholders' AGM ------------------------------------------------------------- Netia Holdings S.A., Poland's largest alternative provider of fixed-line telecommunications services, announced that on August 30, 2002, the following resolution of the Extraordinary General Meeting of Shareholders of the Company was adopted: Resolution No. 1 The General Shareholders' Meeting hereby resolves that the mandates of the members of the Supervisory Board of Netia Holdings S.A. appointed by the General Shareholders' Meeting of Netia Holdings S.A. in 1999, i.e., Jan Guz, Donald Mucha and David Oertle, shall expire in 2003 at the Ordinary General Shareholders' Meeting of Netia Holdings S.A. to be convened to approve financial statements of the Company for the financial year 2002. Contact Information: Netia Anna Kuchnio Investor Relations Telephone +48-22-330-2061 NETIA HOLDINGS: Creditors' Meeting on Plan Ends September 30 ------------------------------------------------------------ Netia Holdings S.A., Poland's largest alternative provider of fixed-line telecommunications services, announced that the creditors' meeting to accept the composition plans of its three Dutch subsidiaries, Netia Holdings B.V., Netia Holdings II B.V. and Netia Holdings III B.V., was adjourned by the supervisory judge until September 30, 2002. The verification hearings by the court in the Netherlands have been provisionally fixed for October 9, 2002. =========== S W E D E N =========== LM ERICSSON: Investors Will Back Ericsson GBP30 BB Rights Issue --------------------------------------------------------------- Swedish mobile telecom infrastructure provider Ericsson will get strong support from investors for its GBP30 billion rights issue, despite the series of problems the company faces, a report from the Financial Times says. The company closed subscriptions to the issue last Tuesday. A number of important institutional investors have confirmed they will take up their allocations. According to brokers, smaller investors have been subscribing to the issue. The announcement of preliminary results is set on Friday this week, the daily adds. Ericsson is expected to receive the fresh funds as the issue is underwritten by several of the company's main owners and the investment banks handling the offer, the paper says. The paper observes however, that extensive use of the guarantee would be deeply embarrassing for Sweden's industrial flagship, which has suffered huge losses due to a series of strategic mistakes and the collapse of the telecoms equipment market. Ericsson confirmed last week that it had given SEK1.1 billion in customer financing to Leap, the US mobile operator, which warned that a restructuring of its debt could lead to a default on its vendor-credit commitments, the paper says. The company said the Leap exposure represented about 4.2% of its total outstanding exposure, while further undrawn commitments accounted for about 13.6% of all its undrawn customer finance commitments as of June 30, the daily reports. LM ERICSSON: Plans to Outsource IT Operations --------------------------------------------- Swedish telecom company Ericsson plans to outsource almost its entire information technology operations, possibly resulting in 4,000 job losses, a report from the Telecom.paper says. The company's IT operations currently employs around 76,000 workers. The employees were notified of the company's plans last August 29, the paper reports. Ericsson is presently working on an agreement with one or more of the world's largest IT providers by the end of November. The company's move is part of its cost cutting plan in order to reach break even. It is negotiating with around 10 potential IT providers, the paper says. The company however, intends to keep "a few hundred" IT employees who are specialists and who can manage the new partnerships, the paper says. ===================== S W I T Z E R L A N D ===================== 4M TECHNOLOGIES: Holding Announces 2002 First Quarter Results ------------------------------------------------------------- At the end of the first quarter in 2002, the company was at a standstill, prior to refinancing. The delicate task of re- establishing the confidence of clients and suppliers and re- animating the business structure started in earnest during Q2. The realized turnover of CHF 3.08 Million corresponds to inventory sales of machines and parts, the initial production of new machines having commenced during Q2. Operating costs related to the minimum structure maintained and produced an operating loss of CHF 9.62 Million, after an exceptional provision on inventory of CHF 3.00 Million and an exceptional amortization of intangible assets of CHF 0.50 Million. The financial restructuring from the composition arrangement of the Swiss operational company Multi Media Masters & Machinery SA was finalized in April, contributing to reduce the net loss to CHF 3.635 Million in the half year and generating a profit of CHF 0.497 Million in the second quarter. As at May 28, 2002 the wholly-owned subsidiary Multi Media Masters & Machinery SA has been renamed 4M Systems SA. On July 1, 2002 4M Technologies Holding acquired 100% of the share capital of Ascii Ingenierie SA, Monthey, Switzerland. Ascii is active in automation and related industrial software applications, as well as manufacturing, assembly, mechanical and electric components, plus microtechnics. Ascii has been working for many years as a 4M sub-supplier. 4M was previously a "virtual" manufacturer with limited assembly capability. The addition of Ascii will substantially advance the Group's development, industrialization and logistics processes, enhancing cost effective, quality production. Ascii has been acquired for a consideration in cash and 4M's equity instruments of CHF 2.6 Million, subject to adjustments before December 31, 2002. The effect of this acquisition is not reflected in the interim financial statements as of June 30, 2002. The challenges of returning 4M to profitable growth are many and varied but the tasks are worthy of the effort and underway with vigor and resolve. SWISSAIR GROUP: Administrator Completes Sale of Nuance Group ------------------------------------------------------------ The administrator of the Swissair Group, Karl Wuthrich of Wenger Plattner, stated in his interim report of May 10, 2002 that SAirLines and the SairGroup had signed a contract with Noel International S.A. in mid-April 2002 concerning the sale of the Nuance Group. The debt restructuring judge approved the deal in his ruling of 10 July 2002. It was closed on July 31, 2002, thereby completing the sale. The purchase price for the debt-free Nuance group is around CHF 400 million. Contact Information: Administrator's Web site: www.sachwalter-swissair.ch Filippo Th. Beck Wenger Plattner Telephone +41 (0)1 914 27 70 Fax +41 (0)1 914 27 88 =========================== U N I T E D K I N G D O M =========================== ABERDEEN PREFERRED: Trust Reports Pre-paid Bank Borrowings ---------------------------------------------------------- ABERDEEN PREFERRED INCOME TRUST PLC Banking Arrangements Since the Company's year-end on February 28, 2002, the Company has prepaid bank borrowings as follows: Prepayment date Sterling borrowings Euro borrowings GBP81 million EUR 34 million March 28, 2002 (GBP12 million) (EUR 34 million) June 28, 2002 (GBP21 million) - Aug 16, 2002 (GBP9 million) - _________ ______ GBP39 million EUR Nil Notwithstanding these prepayments the Company continues to be in breach of its banking covenants, with adjusted total assets as at August 23, 2002 being 123.99% of total borrowings compared to the minimum covenant requirement of 200%. As part of ongoing discussions with the lending banks, the Company has confirmed to the banks that it will defer payment of the half-yearly interest due on August 31, 2002 on the 9% Subordinated Unsecured Loan Stock 2023 until after repayment of the outstanding GBP39 million of bank borrowings (which falls due on December 31, 2002). In addition the board does not expect that the half-yearly dividend on the Stepped Preference Shares will be paid in November 2002. Further details regarding the above will be included in the annual report and accounts expected to be sent to shareholders and stockholders by August 31, 2002. ANTISOMA: Biopharma Group Appoints New Chief Clinical Officer ------------------------------------------------------------- Antisoma plc (http://www.Antisoma.com),the U.K.-based biopharmaceutical company specializing in the development of products for the treatment of cancer, announced the appointment of Dr Miroslav Ravic as Chief Clinical Officer. Dr Ravic joins Antisoma from the leading Japanese pharmaceutical group Eisai, where he was most recently Director of Clinical Research and Development, Europe. Dr Ravic was responsible for more than 50 clinical studies covering all phases from phase I to phase IV and worked on the recent approvals of Aricept (donepezil) and Pariet (rabeprazole). His duties included global responsibility for oncology drug development. He joined Eisai Europe in 1992 as Head of Medical & Clinical Pharmacology Group, becoming Head of Clinical Research in 1994. Dr Ravic worked at Boehringer Ingelheim from 1976 to 1987. Dr Ravic, 53, has a Ph.D from the Dept. of Clinical Pharmacology, Medical College of St Bartholomews Hospital, London, and a series of qualifications from the Faculty of Medicine, University of Belgrade. He has authored and co-authored a large number of academic papers and is a member of the British Pharmacological Society, the American Society of Clinical Pharmacology and Therapeutics and the New York Academy of Science. Dr Ravic will replace Dr Tony Whitehead who is leaving Antisoma to pursue other opportunities. Glyn Edwards, Antisoma's Chief Executive Officer, commented: "With a number of major drug approvals behind him, Dr Ravic brings invaluable clinical development experience to Antisoma at a time when our pipeline is continuing to progress and mature. His decision to join Antisoma is a further mark of confidence in the prospects for our clinical portfolio. I would like to take this opportunity to thank Tony Whitehead for his dedicated service and support. Tony has played a crucial role in driving Antisoma's clinical pipeline forward, particularly in relation to the pemtumomab SMART study, and we wish him every success in the next stage of his career." Contact Information: Glyn Edwards Chief Executive Officer Antisoma plc Telephone: +44 (0)20 8799 8200 CLAIMS DIRECT: Ex-CEO Plans to Set up Rival Company --------------------------------------------------- Claims Direct's former chief executive Ronnie Henderson is currently negotiating with investors to gain support for his plans to set up a rival personal injury claims company, the Independent reports. Previously, venture capitalists had given funding to Mr. Henderson in his bid to buy back parts of the Claims Direct business, which went into receivership two months ago. But he and four other bidders lost out to a little-known Lancashire entrepreneur, Michael Shepherd. Mr. Shepherd offered GBP1 million for the company's name, call centre and some senior staff, the daily says. Mr. Henderson had warned that anyone buying the company will have to raise at most GBP5 million to make the business profitable again. He added that he plans to set up another claims business that will rival Claims Direct rather than invest in a company that may not be "saveable, " the Independent adds. The paper reports that Mr. Henderson is now in advanced talks with several prospective investors and expects to have a proposal finalized before the end of September. Claims Direct floated two years ago. Despite its high-profile television advertising campaign, customers eventually became disgruntled with the business after many found Claims Direct's fees wiped out their compensation awards. These ranged from GBp1,300 to GBP1,500. Last year, the company lost GBP20 million. Without a bid, the company would have been divested and sold off to its creditors, the Independent says. CORDIANT COMMUNICATIONS: Will Replace CEO Michael Bungey ---------------------------------------------------------- Embattled advertising and public relations group Cordiant Plc's chief executive Michael Bungey is set to resign from his post within the next six months, a report from the Independent says. The company is expected to announce the plan by Friday when it reveals its interim result. The move is believed as part of the company's succession planning as the company tries to appease shareholders angry at the collapse in the group's share price from 103p to 55.5 p, the paper reports. The shake-up will include the appointment of David Hearn as the group's new chief executive replacing Mr. Bungey. Mr. Hearn is currently the chairman and chief executive of Cordiant's main advertising arm in New York, the paper says. For the past months, Cordiant has been hit by the worldwide downturn in advertising revenues. It has already decreased its headcount by 17% and is likely to make further cuts, the daily adds. However, some critics observe that the company's woes can't be blamed on the market downturn alone. The UK fund Active Value, which owns a 9% stake in Cordiant, is demanding an extraordinary general meeting to press for management changes after the company lost several high-profile accounts, the paper reports. Moreover, analysts expect the company to report a 12% decline in underlying revenues, compared to the 8% fall announced recently by rival WPP. Cordiant will also announce a new strategy to more closely integrate its various advertising, marketing and public relations agencies so that clients can use a "one stop" service. The company attempts to forge closer links between its agencies, which include the Bates Worldwide advertising network and 141, the direct marketing group. GLOBAL CROSSING: Europe Limited Chapter 11 Case Summary ------------------------------------------------------- Debtor: Global Crossing Europe Limited Centennium House 100 Lower Thames Street London EC3R 6DL U.K. Bankruptcy Case No.: 02-14290 Type of Business: The Debtor is an affiliate of Global Crossing Ltd. Chapter 11 Petition Date: August 30, 2002 Court: Southern District of New York (Manhattan) Judge: Robert E. Gerber Debtors' Counsel: Michael F. Walsh, Esq. Paul M. Basta, Esq. Weil, Gotshal & Manges, LLP 767 Fifth Avenue New York, NY 10153 (212) 310-8197 Fax : (212) 310-8007 Estimated Assets: More than $100 million Estimated Debts: More than $100 million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Primus Telecommunications Trade Debt $720,584 GmbH Landshuter Allee 12-14 B0637 Munchen, Germany Tel. 49(0)89 726550 Interoute Trade Debt $665,973 12, Avenue des Morgines Petit-Lancy 1213 Switzerland Tel. 0800 450 450 MCI WorldCom Trade Debt $633,102 Deutschland GmbH PO Box 190409 Germany Telia Trade Debt $539,925 76 Boulevard Haussmann 75008 Paris France Tel. 153048860 T Systems Trade Debt $459,054 Caldecotte Lake Drive Milton Keynes MK7 8LE Great Britain Tel. 44(1908) 279500 France Telecom Trade Debt $443,985 Rue Auguste Comte BP 48 92174 Vanves Cedex France Colt Trade Debt $234,435 Asticus Trade Debt $171,804 Allen and Overy Trade Debt $156,908 Completel Trade Debt $99,858 Deutsche Telekom Trade Debt $84,507 Teleglobe Trade Debt $80,954 Freshfields Bruckhaus Trade Debt $71,808 Deringer Esidontel Trade Debt $65,217 RSLCOM Sweden AB Trade Debt $52,487 Telelekom Austria Trade Debt $38,365 SER System Ltd. Trade Debt $28,440 The American Community Trade Debt $24,917 School Ltd. W.R. Beck Residential Trade Debt $24,448 Lettings TMP Worldwide Trade Debt $19,994 GLOBAL CROSSING: Conferencing Limited Chapter 11 Case Summary ------------------------------------------------------------- Debtor: Global Crossing Conferencing Limited 38 Cadogan Street Glasgow G2 7AX Scotland Bankruptcy Case No.: 02-14274 Type of Business: The Debtor is an affiliate of Global Crossing Ltd. Chapter 11 Petition Date: August 30, 2002 Court: Southern District of New York (Manhattan) Judge: Robert E. Gerber Debtors' Counsel: Michael F. Walsh, Esq. Paul M. Basta, Esq. Weil, Gotshal & Manges, LLP 767 Fifth Avenue New York, NY 10153 (212) 310-8197 Fax : (212) 310-8007 Estimated Assets: More than $100 million Estimated Debts: More than $100 million Debtor's 20 Largest Unsecured Creditors: Entity Nature of Claim Claim Amount ------ --------------- ------------ Compunetix Inc. Trade Debt $216,645 Cable And Wireless Trade Debt $46,037 Telia UK Trade Debt $41,972 Avaya Trade Debt $36,353 BT Business Communications Trade Debt $4,092 Securitas Guarding Trade Debt $3,344 Services Colt Trade Debt $2,899 MSB International Trade Debt $2,056 Tay Associates Ltd. Trade Debt $1,772 Fiona Shipley Trade Debt $1,442 ABC PLC Trade Debt $436 Hungrys Trade Debt $393 Russell Jackson Trade Debt $360 Services Ltd. Telewest Business Trade Debt $249 Glasgow Removals Trade Debt $206 DH Morris Group/WC Martin Trade Debt $103 & Co. Moves Trade Debt $14 JOE'S BASEMENT: Receivers Sell Photographic Processing Company -------------------------------------------------------------- Maurice Moses and Sarah Rayment, Joint Administrators, offer for sale the business and assets of this photographic processing company offering a full range of traditional and digital processes. Principal features of the bussines include: - 3 retail premises in Central London - 1 Head Office/Production Facility in Central London - Turnover over circa GBP5 million Contact Information: Sam Brewer Numerica PO Box 2653 66 Wigmore Street London W1A 3RT Tel: 020 7467 4261 Fax: 020 7467 4250 KINGFISHER: Will Launch Formal Bid for 45% of Castorama This Week ----------------------------------------------------------------- British retailer, Kingfisher Plc plans to launch its formal bid for 45% of Castorama, the French DIY chain, by the end of the week, a report from the Financial times says. Earlier this month, the European Commission decided to allow Kingfisher to make the bid. The company will take de jure control of Castorama at its board meeting on Monday, the daily says. Kingfisher will be free to launch its EUR67 per share bid formally on Thursday or Friday, after it receives rubber-stamps from the French stock exchange. This long-awaited move will further complete Kingfisher's plan to transform into a purely DIY retailer, the daily adds. Moreover, Kingfisher plans to spin off its electrical business arm, which has a turnover of more than GBP3.7 billion and profits of more than GBP183 million, on the Paris stock exchange later in spring, the paper says. The electrical retailer arm groups UK-based Comet, French operations BUT and Darty, Germany's ProMarkt, Datart of the Czech and Slovak republics, BCC in the Netherlands and New Vanden Borre in Belgium. Together the division has more than 27,000 employees in 824 stores, the paper adds. Kingfisher is one of the top DIY retailers in Europe and is nearly twice the size of its nearest rival. Including Castorama, with which Kingfisher merged its B&Q side in 1998, the DIY arms employ more than 50,000 people in more than 573 stores. Previously, Castorama partners had opposed the buy-out before Sir Geoff Mulcahy, Kinfisher's outgoing chief executive convinced them that the deal has "a great sense of industrial logic," the paper says. Kingfisher raised funds for the 45% stake buy-out with the UK's second largest rights issue in July. The GBP2 billion rights issue at 155p per share had a take-up of 95%. SCAN RE INSURANCE: Announces No First Meeting for Creditors ----------------------------------------------------------- Insolvency Act 1986 Scan Re Insurance Company Limited (In Liquidation) High Court of Justice No. 003108 of 2002 On June 12, 2002, a Winding-up Order was made against the above- named company. By order of the court dated August 2, 2002, the Official Receiver was relieved of his duty to notify the creditors individually of his duty to notify creditors individually of his decision not to call a First Meeting of Creditors, and of his duty to produce a report to creditors. Any creditor who has lodged their claim in the proceedings should contract the Joint Liquidators, Mr. GH Hughes & Mr. PJ Brazzill of Ernst & Young, Becket House, 1 Lambeth Place Road, London SE1 7EU SP Quick, Official Receiver, 21 Bloomsbury Street, London WC1B 3SS. ************ S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam, Larri-Nil Veloso, Maria Lourdes Reyes and Jean Claire Dy, Editors. Copyright 2002. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *