/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020918.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, September 18, 2002, Vol. 3, No. 185 Headlines * C Z E C H R E P U B L I C * CESKA SPORITELNA: Fitch Ups Individual Rating to 'C/D' * B E L G I U M * GIB SA: Ackermans & Van Haaren Plans to Launch Takeover Bid * F R A N C E * FRANCE TELECOM: Bon Assures France Telecom to Remain Whole VIVENDI: Lagardere Joins Bidders for Publishing Operations * G E R M A N Y * DEUTSCHE TELEKOM: Mulls Further Job Cuts in T-systems Division GONTARD & METALLBANK: Sees Brighter Future From Magus Deal MOBILCOM AG: Shares Soar 261% as Gov't Injects EUR400 MM MOBILCOM: Gov't Assistance Likely to Face EU Scrutiny KIRCHGRUPPE: Kirch May Agree to Sell Axel Stake to Ringier KIRCHMEDIA: Managing Board Plans to Trim Bidders to Two SCHNEIDER TECHNOLOGIES: Laser Technology Unit Attracts Jenoptik * H U N G A R Y * MOL RT: Attempts to Extend TVK Options * N E T H E R L A N D S * AEGON N.V.: Moody's Commends Capital Restructuring AEGON N.V.: Stock Fraction Interim Dividend 2002 * P O L A N D * ELEKTRIM: Announces Shareholding Update ELEKTRIM: Elliott Withdraws Offer for Elektrim Telekomunikacja KREDYT BANK: Fitch Downgrades Individual Rating to 'D' * U N I T E D K I N G D O M * BRITISH ENERGY: Debts Slowly Define Looming Future BRITISH ENERGY: Moody's Downgrades Debt Ratings to B2 BRITISH ENERGY: Notification of Major Interest in Shares CB PRINT FINISHERS: Offers Business and Assets for Sale COLT TELECOM: Announces GBP9 MM Bond Buyback COMPASS GROUP: Updates Shares Subscription FERRISGATE: Puts Business and Assets Up for Sale FOUR OAKS: Offers Business and Assets for Sale GLOBAL CROSSING: Seeks Approval of Lucent Settlement Agreement HITACHI SEIKI: Notice of Offer for Sale of Hitachi Seiki UK Ltd HUNTERS LEISURE: Notice of Offer for Sale of Hunters Leisure Plc LASTMINUTE.COM: Issues Trading Update Covering Q4 LASTMINUTE.COM: Moves Into the Black Sooner Than Expected MARCONI: Alstom Awards Marconi Multi-Million Pound Rail Contract MARCONI: Deploys Rail Communication Infrastructure MIZA PHARMACEUTICALS: Notice for Sale of Business and Assets OCEAN FLEETS: Offers Sale of Business and Assets PPL THERAPEUTICS: Notice of Purchases of Shares by Directors WESCOL GROUP: Business and Assets Offered as Going Concern WORLDCOM INC: To Slash More Than 2,000 Jobs in Europe WORLDCOM INC: Intends to Pay Former Employees' Severance Claims ZOTO ENGINEERING: Offers for Sale Business and Assets ========================== C Z E C H R E P U B L I C ========================== CESKA SPORITELNA: Fitch Ups Individual Rating to 'C/D' ----------------------------------------------------- International rating agency, Fitch Ratings, upgraded the Individual rating of Ceska Sporitelna from 'D' to 'C/D', while affirming the bank's Long-term, Short-term and Support ratings at 'BBB', 'F2' and '2' respectively. According to the rating agency: "The upgrade of the Individual rating reflects the bank's continuing successful restructuring, including improving profitability, risk systems and asset quality." Ceska Sporitelna has transferred the majority of its deficient assets into a state-guaranteed ring-fencing arrangement as part of Czech Republic's sale deal with Erste Bank, Ceska's Austrian parent. The bank has swapped most of the assets with government bonds and other state backed instruments. Fitch also noted that the bank has devised a new risk systems to avoid serious asset problems, reduced staff, reviewed processes to improve efficiency, redesigned branch network to increase sales. The support rating was assigned to reflect the systemic importance of the bank to the Czech Republic. CONTACT: CESKA SPORITELNA, A.S. Rytirska 29 Prague 1-Old Town Tel.: 2410 1111 Fax: 2421 2713 Home Page: http://www.csas.cz ============== B E L G I U M ============== GIB SA: Ackermans & Van Haaren Plans to Launch Takeover Bid ----------------------------------------------------------- Belgian holding company, Ackermans & Van Haaren, plans to offer shareholders of former retailing group, GIB, EUR41 a share as a takeover bid for the insolvent company, Reuters reports. GIB's shares closed at EUR38.90 on Friday. Ackermans, who said it notified Belgium's Banking and Finance Commission about its plan last week, wants to buy at least 90% of the shares. Shareholders of the retailer group are scheduled to vote on the GIB's liquidation plan by early October. In June, the investors postponed making the decision, citing delays in the complete audit of its books. Analysts see the move as a sign that the company is looking for a much better deal. During that time, GIB said it expects liquidation to begin before the end of 2002. GIB first announced its plans to liquidate at the end of April after divesting assets. The company was Belgium's leading retailer until it sold off its supermarket unit GB to France's Carrefour SA in July 2000. It also sold off four profitable divisions: Auto 5; apparel store, Inno; stationary shop Club and do-it- yourself unit Brico Belgium. The only major remaining asset of GIB is its 58% stake in hamburger chain Quick Restaurants. GIB's business is worth EUR1.13 billion as of the present time. CONTACT: GIB SA Avenue des Olympiades 20 B-1140 Brussels, Belgium Phone: +32-(0)2-729-21-11 Fax: +32-(0)2-729-18-18 Home Page: http://www.gib.be =========== F R A N C E =========== FRANCE TELECOM: Bon Assures France Telecom to Remain Whole ---------------------------------------------------------- Outgoing head, Michel Bon, assures the public that the French government will not resort to breaking down the company to solve its financial crisis, Agence France-Presse says. In an interview, the former chief executive said, "I have obtained a guarantee from the economics and finance ministry that the group's unity will not be questioned." The assurance goes against the view of certain analysts who say the French company could ease its EUR70-billion debt load by selling off parts of its 85%-owned mobile phone unit Orange and other subsidiaries. In a Les Echos report, Bon stated, "Giving up a portion of Orange's shares would be tantamount to destroying the company's future for two centimes." Meanwhile, Britain's Observer newspaper reported that France Telecom is looking forward to a two-stage restructuring that could generate EUR8 billion through the sale of a 34%-stake in Orange within the next 12 months, before considering the break- off. Deutsche Telekom may also resort to divesting its stake in Equant, although analysts question the availability of a buyer for the fixed line business. Bon reiterates his opposition to a massive capital increase, saying there are other options. He would not consider the move considering the current price level. France Telecom stock, which has lost over 75 percent of its value since the start of the year, closed down 2.63 percent at 10.35 euros in Paris on Friday. Bon puts his hope on the economic model the company has drafted, saying the operator can already start servicing obligations this year. He announced on Thursday that France Telecom's debt had risen to 69.7 Analysts predict the company to accumulate EUR15 billion in debt by the end of 2003. They also foresee the state-controlled operator to face cash problem by the middle of next year. CONTACT: FRANCE TELECOM 6, Place d'Alleray 75505 Paris Cedex 15, France Phone: +33-(0)1-44-44-22-22 Fax: +33-(0)1-44-44-95-95 Home Page: http://www.francetelecom.fr VIVENDI: Lagardere Joins Bidders for Publishing Operations ---------------------------------------------------------- Lagardere, the French media and aerospace group, will bid for the publishing operations of Vivendi Universal, according to Financial Times. The group will be submitting an offer for the French side of Vivendi Universal Publishing, says Arnaud Lagardere, the joint manager of the company. Mr. Lagardere disclosed that his company is looking for a long-term investment and does not expect a quick return. The acquisition is expected to boost Lagardere's dominance in certain education sectors. Lagardere executives also admitted it would still ask permission from Brussels and French competition authorities to offer the bid. It also anticipates being obliged to resell some operations to other investors. In a move to cut debt, Vivendi is currently offering assets which include municipal water operations and book-publishing and distribution business under Vivendi Universal Publishing. French government has since opposed the sell-off of the conglomerate's publishing operations as it includes publishing businesses regarded as national treasures. Vivendi Universal Publishing, which includes Houghton Mifflin, the US trade and education publisher, is valued at EUR4 billin to EUR5 billion (US$3.9 billion to US$4.9 billion). CONTACT: VIVENDI UNIVERSAL 42 avenue de Friedland 75380 Paris Cedex 08, France Phone: +33-(0)1-71-71-10-00 Fax: +33-(0)1-71-71-11-79 Home Page: http://www.vivendiuniversal.com ============= G E R M A N Y ============= DEUTSCHE TELEKOM: Mulls Further Job Cuts in T-systems Division -------------------------------------------------------------- Deutsche Telekom AG is planning thousands of new job cuts on top of the group's existing plans to reduce manpower by 2004. The management is expected to implement the additional reduction in 18 months. According to Wall Street Journal Europe, the plan, if implemented, will cut 10% to 15% of the European telecommunication company's 43,600 employees at its T-Systems information technology division. Deutsche Telekom has ordered T- Systems to reduce its costs by more than 500 million euros over the next 18 months. Drop in business as demand for telecommunications services fall has affected the division. The job cuts is expected to free cash needed to reduce its EUR64.2 billion (US$62.42 billion) debt load. The move clearly indicates that Helmut Sihler, interim chief executive, is set to undertake major strategic decisions during his six-month office. According to the report, Mr. Sihler is conducting a strategic review of the company's businesses. The result of the review, which is expected to be released in November, is seen to bring about more disposals. The move is also expected to negatively affect the re-election bid of Chancellor Gerhard Schroeder. The state holds a 43% stake in the former monopoly. Edmund Stoiber, Schroeder's challenger who has the country's 10% unemployment as his main campaign strategy, could use the job cuts against the former says the report. The workforce reduction was also perceived as ill timed not only because of its political effect, but also because Deutsche Telekom has just agreed with unions on the broader job-reduction package; although the agreement did not include the T-Systems, people familiar with the matter said. Analysts have long regarded the company's 254,800 workforce as the hindrance toward its restructuring. The telecommunications company, however, is not free to trim manpower as many of the staff are still protected by civil-service contract, a legacy of its former state-owned status. CONTACT: DEUTSCHE TELECOM Friedrich-Ebert-Allee 140 53113 Bonn, Germany Phone: +49-(0)228-181-0 Fax: +49-(0)228-181-8872 Home Page: http://www.telekom.de GONTARD & METALLBANK: Sees Brighter Future From Magus Deal ---------------------------------------------------------- Insolvent German bank, Gontard & Metallbank AG, and secured investment firm, Magus Verwaltungsgesellschaft, have struck a deal that will allow the bank to pull out from bankruptcy filing, quit lending and stop taking deposits. According to Frankfurter Allgemeine Zeitung, Magus' acquisition of a 25.01% stake from Gontard & Metallbank's shareholder, Gold- Zack AG, is expected to turn the bank, which filed for creditor protection in May, into a specialized corporate bonds firm. Gold- Zack owns 45% of the German bank. Under the deal, Hamburg-based Magus will include American finance companies in its new business plan in the medium term. Magus, which is controlled by investment bankers Andreas Arndt and Werner Brech, will also retain Gontard's name and Frankfurt listing. Previous TCR-Europe reports revealed that Gontard & Metallbank's insolvency administrator, Klaus Pannen, valued the bank's debt at between EUR80 million and EUR900 million. MOBILCOM AG: Shares Soar 261% as Gov't Injects EUR400 MM -------------------------------------------------------- Shares in MobilCom AG were buoyed 261% after the German government announced a EUR400 million bailout for the mobile phone operator, says AFX. WestLB Panmure upgraded the stock to 'neutral' from 'sell. On Friday, MobilCom shares closed nearly 40% lower after France Telecom announced it is withdrawing its support on the group. The move led most investors to conclude the operator is heading straight into insolvency. The German government decided to grant the funding, as it considers MobilCom "a company with a solid base." Economy Minister Werner Mueller sees MobilCom sa "healthy company which is experiencing a liquidity squeeze." He added that the company's woes are not its fault, but rather, were caused by the withdrawal of its major shareholder, France Telecom. Mr. Mueller disclosed that regional public bank in Schleswig- Holstein would give the firm EUR320 million, while state-owned development bank KfW would provide the balance of EUR80 million. Mr. Mueller, however, did not specify whether the aid was a subsidy or a loan. The Economy Minister also said that France Telecom SA, which owns 28.5% of MobilCom, 'still had obligations' to the mobile phone operator. The French company signed an agreement to provide funding for MobilCom's expensive new 3G mobile phone technology license and the building of a network, according to the report of the Globe and Mail. But the details of the deal have not been disclosed to the public, says the report. France Telecom, on the other hand, disregarded threat of legal suits on its decision to sever ties with the German affiliate. France Telecom, meanwhile, pushed through with a deal with banks to swap EUR4.7 billion in MobilCom debt due at the end of the month for new debt repayable with France Telecom shares. MOBILCOM: Gov't Assistance Likely to Face EU Scrutiny ----------------------------------------------------- The German government's EUR400 million assistance for MobilCom is likely to be grilled in Brussels under the EU's guidelines on rescue and restructuring aid, according to the Financial Times. The EU rules provide that the funding should only be granted if there is a long-term plan to restore the company's stability, although there are exceptions. In case the plan is not followed by a proper restructuring plan, the amount granted is to be repaid. While the EU rules on rescue aid for companies provide that EU Commission will assess whether the amount for the bailout is at market rates, the Commission denied being informed of the details of the plan for MobilCom. The Commission also reportedly denied making any comment based on the media reports According to the report, the rules also provide that: the company granted the aid has not received similar assistance in the recent past, and the aid should not exceed the minimum amount necessary to prop up the company. Further, if the granting of the aid affects fair competition, the receiver of the grant must draft plans to offset the advantage gained. KIRCHGRUPPE: Kirch May Agree to Sell Axel Stake to Ringier ---------------------------------------------------------- Insolvent German media conglomerate, Kirch Holding GmbH, will possibly agree to the sale of its stake in Axel Springer Verlag AG to Swiss publisher Ringier AG by Friday, reports say. Reports further say that talks between Kirch and Ringier are in a positive light. The German media company currently faces a deadline set on Friday to finally decide on selling the stake. Once the company can't reach a decision, a court will the rule whether to grant it more time to search for a buyer or to pass the stake on to Deutsche Bank AG as security for a loan that Kirch failed to repay. KIRCHMEDIA: Managing Board Plans to Trim Bidders to Two ------------------------------------------------------- Bidders for the asset of KirchMedia may be narrowed down from three to two as the new managing board of the television arm of insolvent German media company, Kirh Group, will propose the matter to a committee of creditor banks. The three bidding groups with an offer of up to EUR2.6 billion are Commerzbank (G.CBK) together with Hollywood studio Columbia Pictures Industries; a consortium consisting of U.S. bank Lehman Brothers (LEH), oil tycoon Al Walid and retail group Rewe-zentral AG (G.RZE); and a group consisting of French television company Television Francaise 1 (F.TFF) and the Israei-American media entrepreneur Haim Saban. KirchMedia is looking for a buyer or group of buyers to acquire all the entire KirchMedia assets up for sale. It is auctioning its assets after filing for insolvency in April. The group reportedly owns a large film library and sports rights, including World Cup football, and controls ProSieben, Germany's largest commercial broadcaster. Prospective buyers of KirchMedia will have to bid for full control of ProSiebenSat1 Media AG, Germany's largest television network, which receives about two-fifths of its programming from KirchMedia. SCHNEIDER TECHNOLOGIES: Laser Technology Unit Attracts Jenoptik --------------------------------------------------------------- Jenoptik AG is interested in the laser technology unit of German technology company, Schneider group, according to reports. As one of Schneider's creditors and suppliers, Jenoptik has a "special position" among the 27 bidders competing to buy the company, a spokesman said. Aside from offering its laser display technology unit, Schneider Technologies was reported to have put its entertainment electronics divisions in August. In the August issue of TCR-Europe, reports had it that Schneider Laser Technologies, the subsidiary into which the laser display activities are grouped, was in negotiations on the planned sale of the asset. Schneider Technologies AG(SCHNEIDER) is formerly known as Schneider Rundfunkwerke AG. It manufactures, sells and distributes televisions, audio systems, digital telephones, answering and fax machines and develops laser-display technology. CONTACT: SCHNEIDER RUNDFUNKWERKE AG Silvastrasse 1 86842 Tuerkheim GERMANY Phone: +49 8245 510 +49 8245 51323 Home Page: http://www.schneider-ag.de ============= H U N G A R Y ============= MOL RT: Attempts to Extend TVK Options -------------------------------------- Analysts said that in order for MOL RT, the Hungarian oil and gas company, to purchase stakes in regional rivals, it has to generate more cash. Accordingly, the company is attempting to extend its options in chemical company TVK Rt, a report from the Budapest Business Journal says. The journal further reports that MOL holds an option, set to expire on September 30, to buy back 8% from the Hungarian Foreign Trade Bank Rt (MKB). Calling the options would raise MOL's stake in TVK from 34.5% to 52.3%. ===================== N E T H E R L A N D S ===================== AEGON N.V.: Moody's Commends Capital Restructuring -------------------------------------------------- Moody's Investors Service said that the capital restructuring of Aegon N.V. would have positive implications for the company's solvency and capacity to face a more challenging environment. The restructuring is expected to increase the group's equity base by about EUR2.3 billion and reduce its core indebtedness. The rating agency sees that the restructuring effort is consistent with the group's traditional conservative financial management. Moodys will be further evaluating the group's financial strength after the capital restructuring, and the profit expectations of its main operation before concluding its review in the following weeks. Aegon N.V., headquartered in The Hague, Holland, is an international provider of life insurance, pension and investment products and reported consolidated total assets of ?250 billion and shareholders' equity of ?13.6 billion at June 30, 2000. AEGON N.V.: Stock Fraction Interim Dividend 2002 ------------------------------------------------ On 8 August 2002 AEGON N.V. declared an interim dividend for the fiscal year 2002 of EUR 0.37 per common share of EUR 0.12 par value, or a fraction of a common share of EUR 0.12 par value. Using the average price on the Euronext Amsterdam over the period from 10 September 2002 up to and including 16 September 2002, the stock fraction was determined at 1/33 share. The value of the interim dividend in shares will be approximately equal to that of the interim dividend in cash. Shareholders have already made their choice between receiving the interim dividend entirely in cash or entirely in stock to be paid out of the paid-in surplus (free of dividend withholding tax in the Netherlands) or, if so required, out of the net income of the first half of 2002. For shareholders who opted for payment entirely in cash, the dividend will be made payable as from 20 September 2002 at several paying agency banks. Shareholders of common shares who opted for payment in shares will receive one common share of EUR 0.12 par value upon surrender of 33 dividend coupons number 5. Each of the shares will partially benefit from the 2002 results and fully from those of subsequent years. Coupons must be submitted to N.V. Nederlandsch Administratie- en Trustkantoor (NEDAMTRUST), Herengracht 420, 1017 BZ Amsterdam, the Netherlands. Rights to the interim dividend payment in cash or in stock will be made available to holders of CF-certificates through those institutions which have been acting as custodians of the coupon sheets for their shares at the close of business on 9 August 2002. Holders of New York shares will be contacted by AEGON's US Transfer Agent, Citibank. The Hague, 16 September 2002 CONTACT: AEGON N.V. Group Communications Phone + 31 70 344 83 44 Investor Relations Phone: + 31 70 344 83 05 Phone: + 1 410 576 45 77 (USA) =========== P O L A N D =========== ELEKTRIM: Announces Shareholding Update --------------------------------------- The Management Board of Elektrim S.A. announces that on 16 September 2002 it was notified that on 12 September 2002, as a result of the settlement of purchase transactions executed by Multico Sp. z o.o., company Multico Sp. z o.o., together with its subsidiary Multico-Press Sp. z o.o. and controlling entity Zbigniew Jakubas jointly hold 8,562,101 shares of Elektrim S.A., representing 10.22% of Elektrim's share capital. This number of shares entitles to 8,562,101 votes representing 10.22% of the total number of votes at a meeting of shareholders of Elektrim S.A. At present, Mr Zbigniew Jakubas holds 5,609,471 shares of Elektrim S.A., representing 6.70% of share capital and 5,609,471 votes representing 6.70% of the total number of votes at a meeting of shareholders of Elektrim S.A. Multico Sp. z o.o. holds 1,952,630 shares of Elektrim S.A., representing 2.33% of share capital and 1,952,630 votes representing 2.33% of the total number of votes at a meeting of shareholders of Elektrim S.A. Multico-Press Sp. z o.o. holds 1,000,000 shares of Elektrim S.A., representing 1.19% of share capital and 1,000,000 votes representing 1.19% of the total number of votes at a meeting of shareholders of Elektrim S.A. ELEKTRIM: Elliott Withdraws Offer for Elektrim Telekomunikacja -------------------------------------------------------------- The Management Board of Elektrim S.A. announces that on 16 September 2002 it received a letter from Elliott Advisors (UK) Ltd acting on behalf of funds it represents in which it notifies that in light of filing a request for the declaration of bankruptcy of Elektrim S.A. it withdraws its offer to purchase all interests and claims which Elektrim has in Elektrim Telekomunikacja Sp. z o.o. that was submitted in writing on 8 September 2002. Elliott Advisors (UK) Ltd made the above decision basing on the potential implications a bankruptcy of Elektrim S.A. would have on the arbitration proceedings involving the shares of Elektrim Telekomunikacja Sp. z o.o. and Deutsche Telekom in Vienna. In the case that Elektrim S.A. withdraws the bankruptcy request, Elliott Advisors (UK) Ltd would immediately reinstate the offer for the purchase of interests and claims in Elektrim Telekomunikacja Sp. z o.o KREDYT BANK: Fitch Downgrades Individual Rating to 'D' ------------------------------------------------------ International rating agency, Fitch, has cut down the Individual rating of Polish Kredyt Bank to 'D' from 'C/D.' It has, meanwhile, affirmed the Long-term, Short-term and Support ratings of the bank at 'BBB+', 'F2' and '3' respectively. Fitch noted that Kredyt Bank's results for 2001 and 1H2002 reflected high loan loss provisions, growing costs and losses in its subsidiaries, mainly Polski Kredyt Bank, and its pension fund. The rating agency predicted that the bank's core profitability is unlikely to recover in the short-term from the devastating effects of declining interest margins and rising IT and branch expansion costs. While noting that the bank's asset quality remains better than the sector average, the agency highlighted increase in lost loans and reduced coverage. Fitch, on the other hand, affirmed Kredyt Bank's risk management and control over its subsidiaries, including the credit intermediary Zagiel. The bank, according to the rating agency, has benefited from the increased presence of its strategic shareholder, Belgium's KBC Bank. The investor has influenced the actions on Kredyt Bank's Long- and Short-term ratings. The Outlook for the Long-term rating remains Stable. =========================== U N I T E D K I N G D O M =========================== BRITISH ENERGY: Debts Slowly Define Looming Future -------------------------------------------------- Government officials are increasingly contemplating on putting the U.K.'s British Energy into administration as the full extent of the company's debt load is uncovered, Financial Times reports. A senior government official said that the last option is now being taken as "very much an option." One official said that the government is still trying to come up with the exact figures that represent the company's financial standing. The delay in the reports is at the same time dimming hopes for the senior management's long term-job prospects. The move, however, would entail significant expenses for the state, as it would need to run a form of holding operation to keep the nuclear power station running until a long-term strategy for nuclear energy is drafted. Putting the nuclear power generator under administration also has a negative effect on the company. British Energy has warned that going into custody could wipe GBP650 million off the value of its assets and widen its trading losses. Administration would grant the Canadian government claim to British Energy's 82% stake in Bruce Power business, which is valued at GBP500 million. A fire-sale of the group's stake in AmerGen, a US joint venture, on the other hand, could halve the value of the asset to o150m. Administration would also stop normal energy trading, as requisite of financial guarantees would no longer be available. The ultimate result of British Energy's going into administration is the sale of electricity at spot prices, potentially increasing losses by EUR100 million a year. But officials may consider the option at all, as initial results of the figures show it could cost taxpayer less to exercise the alternative than to keep it going in the private sector with a state support. BRITISH ENERGY: Moody's Downgrades Debt Ratings to B2 ----------------------------------------------------- Moody's Investors Service has cut the debt ratings of British Energy plc from Ba3 to B2. The rating is maintained on review for possible downgrade. The action reflects the rating agency's concern that there may be material loss for par bondholders. The government's support has only been granted to short-term liquidity facility without assurance for bondholders not to suffer a loss. Moody's reiterated that the government clearly indicated that the interest of investors is not its main concern. The nuclear generator recently received a GBP410 million funding. And although the facility is cross-guaranteed by the principal group entities excluding Eggborough and Amergen, but including Bruce Power, Moody's noted that bondholders are not protected by the cross-guarantee from Bruce Power. Moody's perceives that the absence of a full guarantee from the U.K. Government is unlikely to bring British Energy's credit to investment grade. The rating agency further warned that any loss for par bondholders would result in a downgrade to a rating of Caa or lower. British Energy is the world's largest private sector nuclear company. In the U.K., the company is the largest electricity generator with an installed capacity of 11.6 GW. British Energy is also partner in the Amergen joint venture in the US and owns 82.4% of the Bruce Power Moody's placed the outlook of possible downgrade as the likelihood of a lower rating clearly outweighs the possibility of a higher one. BRITISH ENERGY: Notification of Major Interest in Shares --------------------------------------------------------- Name of company: British Energy Plc Name of shareholder having a major interest:UBS Global Asset Management Holding Ltd Class of Security: 44 28/43 p Ordinary Shares Date company informed: September 13 2002 Total holding following notification: 64,131,481 Total percentage holding of issued class following this notification: 10.33% Any additional information: Notification under Section 199 (2) (b) Name of contact and telephone number of queries: Paul Heward Telephone: 01355 262 201 Name and signature of authorized company official responsible for making this notification: Paul Heward Date of notification: September 16 2002 To view list of registered holders and corresponding accounts and number of shares: http://bankrupt.com/misc/British.pdf CB PRINT FINISHERS: Offers Business and Assets for Sale ------------------------------------------------------- The Administrator, Mr Ian William Kings, offers for sale as a going concern the business and assets of CB Print Finishers Limited (In Administration), a North East-based book-binding and finishing company. Principal features of the business include: Well maintained finishing equipment Turnover c.GBP2 million Extensive bluechip customer base Biggest independent wire binding company in UK Potential purchasers should contact: Ian Kings or Steven Ross 19 Borough Road Sunderland SR1 1LA Tel: 0191 568 1000 Fax: 0191 567 1661 COLT TELECOM: Announces GBP9 MM Bond Buyback --------------------------------------------- COLT Telecom Group plc (http://www.colt-telecom.com),a leading European provider of business communication services, said today that it had purchased a further GBP9 million of COLT bonds for a cash outlay of GBP5 Million. The purchases were undertaken by COLT Telecom Finance Limited as set out below. COLT Telecom Finance Limited has no intention to sell the notes it has purchased and arrangements may be made in due course to cancel such notes. COLT may purchase additional bonds in the future. The following bonds have been purchased. US$4.1 million accreted principal amount of our US$314 Million 12% Senior Discount Notes due December 2006; GBP2.8 Million face amount of our GBP50 Million 10.125% Senior Notes due November 2007; EUR2.6 Million face amount of our EUR76.7 Million 8.875% Senior Notes due November 2007; EUR2.5 Million face amount of our EUR320 Million 7.625% Senior Notes due December 2009. In aggregate COLT has now purchased: US$83.9 Million accreted principal amount of our US$314 Million 12% Senior Discount Notes due December 2006; GBP11.8 Million face amount of our GBP50 Million 10.125% Senior Notes due November 2007; EUR12.8 Million face amount of our EUR76.7 Million 8.875% Senior Notes due November 2007; EUR56.4 Million face amount of our EUR306.8 Million 7.625% Senior Notes due July 2008; EUR57.8 Million face amount of our EUR320 Million 7.625% Senior Notes due December 2009; EUR16.8 Million accreted principal amount of our EUR306.8 Million 2% Senior Convertible Notes due August 2005; EUR93.7 Million accreted principal amount of our EUR295 Million 2% Senior Convertible Notes due March 2006; EUR91.1 Million accreted principal amount of our EUR368 Million 2% Senior Convertible Notes due December 2006; and EUR102.0 Million accreted principal amount of our EUR402.5 Million 2% Senior Convertible Notes due April 2007. CONTACT: John Doherty Director Investor Relations Tel: +44 20 7390 3681 E-mail: jdoherty@colt-telecom.com COMPASS GROUP: Updates Shares Subscription ------------------------------------------ Compass Group PLC (http://www.compass-group.com)announces that on 16 September 2002, Ogier Employee Benefit Trustee Limited, as Trustee of the Compass Group Employee Trust No 2 (the Trust), subscribed for 31,946 ordinary shares in the Company (Shares). The Shares were subscribed at 304.25p per Share, being the middle market quotation of a Share on 13 September 2002. Following this acquisition, the Trustee distributed all the shares to satisfy participants' entitlements under the Compass Group Commitment Share Plan (the Commitment Plan). Following the distribution of these shares, no shares are held by the Trustee. CONTACT: COMPASS GROUP PLC Cowley House Guildford Street Chertsey Surrey KT16 9BA United Kingdom Tel: +44 1932 573 000 Fax: +44 1932 569 956 FERRISGATE: Puts Business and Assets Up for Sale ------------------------------------------------ The Joint Administrative Receivers, Jason Godefroy and Paul Clark offer for sale as a going concern the business and assets of Ferrisgate Limited, Specialist coaters and laminators of roll fed flexible materials. The business is in Thetford, Norfolk Based in The Midlands. Principal features include: Adhesive labels, flexible packaging and mounting Established for 20 years Turnover circa GBP5 million per annum Blue chip customer base Stock at cost circa GBP700,000 Order book circa GBP500,000 Freehold property - 40,000 sq ft CONTACT: Jacqui Hurst or John Norris Menzies Corporate Restructuring Tel: 020 7291 9750 Fax: 020 7291 9777 Email: jhurst@menzies.co.uk or Email: jnorris@menzies.co.uk FOUR OAKS: Offers Business and Assets for Sale ---------------------------------------------- Four Oaks Holdings Limited Four Oaks Group Limited Four Oaks Exhibitons Limited (In Administrative Receivership) Wholesale Plant Producers The Joint Administrative Receivers, Don Bailey and Paul Stanley of Begbies Traynor offer for sale the business and assets of the above group as a going concern. The principal features are: Annual turnover in excess of GBP3.5 million predominantly in the UK Well Known brand names Substantial customer base of UK nurseries Prestigious and profitable annual trade show with over 450 exhibitors Freehold property including 40 acre site near Macclesfield, Cheshire and 1 acre site at Dinas Powys, South Glamorgan FOR FURTHER DETAILS PLEASE CONTACT: Chris Smethurst or Steven Handley Begbies Traynor Elliot House 151 Deansgate Manchester M3 3BP Tel: 0161 839 0900 Fax: 0161 832 7436 Email: manchester@begbies-traynor.com GLOBAL CROSSING: Seeks Approval of Lucent Settlement Agreement -------------------------------------------------------------- Paul M. Basta, Esq., at Weil Gotshal & Manges LLP, in New York, relates that pursuant to various agreements, Global Crossing Ltd., and its debtor-affiliates contracted with Lucent for the construction, operation and maintenance of portions of the Debtors' transatlantic fiber-optic cable, as well as for equipment, services and maintenance related to data transmission across the Debtors' network. As a result, the Debtors regard Lucent as a strategic vendor critical to the continuity of the Network. Lucent asserts claims against the Debtors for USD123,000,000, including administrative expense claims under Section 503 of the Bankruptcy Code with respect to certain Debtors and claims having priority or preference under applicable law against certain non-debtor entities. However, the Debtors dispute the amount, extent and priority of Lucent's claims and assert that they may have a claim against Lucent for USD25,000,000 under Section 547 of the Bankruptcy Code. To resolve the dispute, the parties entered into a Settlement Agreement that provides: -- Global Crossing Parties: Global Crossing Ltd. and all of its debtor and non-debtor subsidiaries and affiliates, excluding Asia Global Crossing Ltd. and its direct subsidiaries; -- Lucent Parties: Lucent Technologies Inc. and all of its subsidiaries and affiliates; -- Initial Payment by Global Crossing to Lucent: Global Crossing to pay USD15,000,000 to Lucent within 10 business days of Court approval of the Lucent Settlement Agreement; -- Global Crossing Release: Within 10 business days of Court approval of the Lucent Settlement Agreement, Global Crossing releases Lucent from all claims (from the beginning of time through and including the date of the Lucent Settlement Agreement) other than claims arising under any warranties contained in the Lucent Agreements, as modified; -- Lucent Release: As of the Effective Date, Lucent releases Global Crossing from all claims (from the beginning of time through and including the date of the Lucent Settlement Agreement) with these claims totaling USD123,000,000; -- Conveyance of Title to Systems, Segments and Equipment: Lucent will transfer to Global Crossing all title to the cable segments, systems, systems upgrades and equipment free and clear of liens, claims and encumbrances that arise by or through Lucent. The title will vest in Global Crossing on the Effective Date. The order approving the Lucent Settlement Agreement will confirm transfer of title free and clear of liens, claims and encumbrances that arise by or through Lucent to Global Crossing; -- Transfer/Return Ethernet Cards: Upon receipt of the Initial Payment, Lucent will convey 300 ethernet cards to Global Crossing, with conveyance to be on an "AS IS, WHERE IS" basis. In exchange, the Debtors will give Lucent a release of all claims and liabilities associated with the Cards. The Debtors will return to Lucent 50 unused, boxed Cards to Lucent within 30 days of the Court's approval of the Lucent Settlement Agreement; -- Subsequent Cash Payment by Global Crossing to Lucent: Global Crossing to pay USD10,000,000 to Lucent upon the earlier of: a. confirmation of Global Crossing's plan of reorganization, or b. March 31, 2003. -- Payment for Services: Global Crossing to pay USD25,000,000 to Lucent for, among other things, work, material, product, services, purchase orders and other matters provided or ordered by December 31, 2002, less any amounts previously paid by Global Crossing to Lucent as described in Schedule 2.1(b) of the Lucent Settlement Agreement, i.e., about USD14,500,000. Global Crossing is required to make the Services Payment on or before December 31, 2002; -- Allowed Unsecured Claim: Lucent will jointly have a single allowed general unsecured claim of USD20,000,000 against the Debtors on a joint and several basis; -- Amendment to June 2001 Services Agreement: The June 2001 Services Agreement will be amended and clarified to provide for: a. Lucent commits to purchase services from Global Crossing in the amount of the USD30,000,000 over the next 6 years; and b. Global Crossing will retain the balance of the USD15,000,000 prepayment made by Lucent during the period of July 2001 to July 2002 and the prepayment will not reduce the Services Commitment; -- Responsibilities and Remedies Remaining under Existing Contracts: The Lucent Agreements are modified so that the term of all warranties for products and services provided by Lucent to Global Crossing will conclude on the earlier to occur of: a. the end of the remaining warranty period for the product and service as provided in the applicable contracts; or b. September 30, 2004. All "design life warranties" will be governed by the original terms and conditions of the Lucent Agreements; -- Payment Terms under Existing Contracts: Within 30 days of the effective date of a confirmed plan of reorganization, Lucent and Global Crossing will meet and discuss payment terms in good faith. Until then, for products and equipment, Global Crossing will pay upon shipment the purchase price of all products and equipment, including any costs or charges set forth under the appropriate agreement. For services and maintenance, Global Crossing will prepay in full on the last business day of the preceding month. Within 5 business days after invoice, Global Crossing will pay any additional and undisputed amounts incurred for additional services and maintenance. For project development, construction and installation contracts, Global Crossing will prepay semi- monthly on the first business day on or after the first and fifteenth day of the month; -- Assumption of Executory Contracts: The Debtors will assume the Lucent Agreements, provided that no cure or other payments will be required or made in connection with the assumption; and -- Right of Global Crossing to Assume and Assign Lucent Agreements: Global Crossing will be permitted to assign any or all Lucent Agreements and Lucent waives any right under Section 365 of the Bankruptcy Code; provided, however, that Global Crossing will not be permitted to assign any or all of the Lucent Agreements to any competitor of Lucent or any reseller of Lucent equipment and that Global Crossing will not be permitted to assign any license or right granted with respect to any Lucent intellectual property in a Lucent Agreement separate from the assignment of the entire agreement itself. Accordingly, the Debtors ask the Court to approve the Settlement Agreement with Lucent. (Global Crossing Bankruptcy News, Issue No. 21; Bankruptcy Creditors' Service, Inc., 609/392-0900) Global Crossing Holdings Ltd's 9.625% bonds due 2008 (GBLX08USR1) are trading at 1.25 cents-on-the-dollar, DebtTraders reports. For real-time bond pricing, see http://www.debttraders.com/price.cfm?dt_sec_ticker=GBLX08USR1 HITACHI SEIKI: Notice of Offer for Sale of Hitachi Seiki UK Ltd ---------------------------------------------------------------- The Joint Administrators, N J Dargan and N G Edwards, offer for sale the business and assets of Hitachi Seiki UK Limited Principal business is that of distributing precision CNC machine tools imported either from Hitachi Seiki Co Limited in Japan or Hitachi Seiki Deutschland Werkzeugmaschinen GmbH in Germany. Leasehold premises in Egham Turnover (2001) GBP26 million 52 staff Seiki Systems (a division of Hitachi Seiki UK Limited) combines computer, networking and software expertise to understand and solve the practical problems of DNC and shop floor information systems. Leasehold premises in Brighton Turnover (2001) GBP1 million 8 staff For more details contact: David Harding or Simon Granger Deloitte & Touche The Glanty Egham Surrey TW20 9AH Tel: 01784 433711 Fax: 01784 437691 HUNTERS LEISURE: Notice of Offer for Sale of Hunters Leisure Plc ---------------------------------------------------------------- Locations Kettering, Folkestone, Dunstable and Tonbridge Additional opportunity at Cheltenham - not developed The Joint Administrators David Coyne and Lee Manning offer for sale the business and assets of Hunters Leisure Plc. Available individually or as a group Areas from 10,000 to 20,000 sq ft Fast growing membership with 2 clubs opened in 2001 Annualised turnover GBP2.65 million All property owned leasehold For inquiries contact: E-mail:mark.sheehan@christie.com Tel: 020 7227 0700 Fax: 020 7227 0702 or E-mail:kdolan@buchler-phillips.co.uk LASTMINUTE.COM: Issues Trading Update Covering Q4 -------------------------------------------------- Prior to entering its close period at the end of September, lastminute.com issued a trading update covering the key Quarter 4. Total Transaction Value (TTV) by departure date will increase to approximately GBP110.0 million for the Quarter. This compares with TTV of GBP61.0 million in Quarter 3 2002 and GBP46.9 million in Quarter 4 2001, demonstrating growth rates of approximately 80% and 135% respectively. Organic like-for-like growth in the Quarter will amount to at least 55% compared with Quarter 4 2001. Both the UK and France have performed exceptionally well during this very busy period for the travel sector with organic growth rates of approximately 73% and 46% respectively compared with the previous year. The Quarter also benefits from a full quarter effect of the strategic acquisitions of Travelselect.com and The Destination Group made in the UK and from a two-month contribution from Travelprice.com in Europe, principally in France. The growth of TTV in Travelprice.com has exceeded our expectations set during the acquisition process. Percentage gross margins have also improved from Quarter 3 to deliver a return on TTV of approximately 13.5%. This improvement comes from the increased sale of higher margin holidays during the Quarter and from an increasing contribution from the sale of advertising space and other commercial transactions. As previously announced, the underlying cash costs for the full year will show a reduction of at least GBP10.0 million compared with the previous financial year. Cost reductions continue to be a major focus within the businesses. The integration of the principal travel functions of the two UK acquisitions and the travel categories of lastminute.com into a single travel unit based at the Farringdon offices remains on track and will be completed by 30 September 2002. This process will reduce the combined UK cost base by approximately GBP2.0 million during the next financial year. The integration of the businesses in France, following the acquisition of Travelprice SA, has now started and we remain confident that the process will be completed by 28 February 2003 and will deliver full year savings of at least EUR10.0 million. Today, we also announce the completion of a contract with 7C (Holdings) Limited to outsource UK data entry and a proportion of post sales customer support. This commercial outsourcing arrangement converts a level of fixed costs into a variable cost. The full year effect of this contract will be to reduce the UK future cost base by approximately GBP2.0 million. We are also pleased to announce that for the first time lastminute.com will deliver profit before tax (excluding goodwill amortisation and exceptional items) and positive operating cashflow in this key Quarter. The Quarter 4 and preliminary results will be announced on 22 November 2002. Brent Hoberman Chief Executive Officer Contact Information: Brent Hoberman Chief Executive Officer Martha Lane Fox Group Managing Director David Howell Chief Financial Officer lastminute.com Tel: +44 (0) 20 7802 4498 LASTMINUTE.COM: Moves Into the Black Sooner Than Expected --------------------------------------------------------- Internet travel agency, Lastminute.com, surprised skeptics of its early recovery when it said it would announce its first underlying quarterly profit this month, according to the Financial Times. The report says broker Brown & Shipley expects the company to report a profit of GBP3 million on exceptionals and goodwill amortization for the three months ended September 30. The company's pre-tax level, however, is expected to record a loss of GBP9.5 million following amortization costs of GBP6.3 million and an exceptional charge of GBP3.6 million related to the integration of the French operations of Travelprice.com, a recently acquired internet travel company. The company's chief executive Brent Hoberman attributed the progress in the soundness of its business model, which utilized the Internet to market products such as shows, gifts and travels. Lastminute.com also credited its recovery to both organic growth and acquisitions. Organic sales during the fourth quarter ending this month grew 55 per cent year-on-year. Gross sales, or total transaction value by departure date, rose from o61m to o110m between the third and fourth quarter. The agency expects to raise full-year savings of EUR10 million (GBP6.4 million) from its merging with Travelprice.com which would be completed by February. It is currently reducing overheads to yield annual saving of GBP2 million. MARCONI: Alstom Awards Marconi Multi-Million Pound Rail Contract ----------------------------------------------------------------- Marconi's Transportation division has been awarded a multi- million pound contract extension by Alstom to deliver a voice radio system for train drivers and guards on the U.K.'s West Coast Main Line (WCML). The Interim Voice Radio System (IVRS) project is the latest stage in Railtrack's upgrade in the WCML signaling and communications in the North Staffordshire section of the London to Glasgow route. The IVRS project is an extension to Marconi Transportation's original GBP84 million contract for data communication awarded by the WCML Alliance partners Railtrack and Alstom in 2000. The project involves Marconi (http://www.marconi.com)deploying and integrating a GSM-R solution, supplied by Nortel Networks, to support Railtrack's existing radio system. This is made up of an optical transmission network connecting Base Transceiver Stations (BTSs) at 20 sites in the North Staffordshire area, a Mobile Switching Centre (MSC) and Home Location Register (HLR). Marconi Transportation is responsible for rolling out the telecommunication network and providing system and network integration services. Commenting on the agreement, Peter Felton, Business Development Director, Marconi Transportation, said: "The award of this project is further evidence of our growing experience in the rail industry, particularly in the delivery of GSM-R systems." The IVRS project was awarded to Marconi Transportation by Alstom Information Systems. The project is in addition to the GSM-R network that Marconi Transportation is deploying along the full length of the WCML. That network is designed to carry data for the new train control system that will allow trains to reach enhanced line speeds of 125 mph on the modernised line. About Marconi Transportation Marconi Transportation is part of the Integrated Systems group and has over 30 years' experience of providing integrated communications systems and services for the transportation industry. Its professional staff is currently delivering a number of high profile communications projects in the Rail, Road and Air industries. Its consultants and design engineers are committed to delivering tailored solutions based on complex network integration, high performance service provision and best of breed products. Its customer services division is committed to providing the best possible support for customers' systems and networks on a 24x7x365 basis. Marconi plc is a global telecommunications equipment and solutions company headquartered in London. The company's core business is the provision of innovative and reliable optical networks, broadband routing and switching and broadband access technologies and services. The company's aim is to help fixed and mobile telecommunications operators worldwide reduce costs and increase revenues. The company's customer base includes many of the world's largest telecommunications operators. The company is listed on the London Stock Exchange under the symbol MONI. This press release contains forward-looking statements with respect to products, partners, customers, future growth and other matters. Please refer to the Form 20-F report and Form 6-K reports filed by Marconi plc with the United States Securities and Exchange Commission for a discussion of risks that could cause actual results to differ materially from such statements. MARCONI PLC: Delivers New Multiservice Switch-Router Technology ---------------------------------------------------------------- Marconi (http://www.marconi.com)announced worldwide commercial availability of its new flagship multiservice switch-router platform, the BXR-48000. In parallel, the company also announced the first sale of the new platform to the U.S. Federal Government. The BXR-48000 breaks new ground in terms of speed, reliability and functionality and will help network operators worldwide reduce the capital and operating costs associated with maintaining conventional and Internet Protocol (IP) networks with a single, protocol-agnostic switch-router platform. Marconi is unique in being able to meet the Department of Defense's networking requirements because of the BXR-48000's capability to transport data at up to OC-192c, the fastest speed currently possible using the Asynchronous Transfer Mode (ATM) protocol. Marconi has enjoyed a long relationship with the US Government with each of its significant switching and routing platforms deployed in a Federal network before going on to widespread acceptance in commercial service provider and enterprise networks. This partnership has created an installed base that exceeds US$1.3 billion. 'Today's announcement clearly demonstrates our commitment to a research and development program that delivers results and gives our customers an insight to reliable, next-generation network design,' said Mike Parton, Marconi's chief executive. 'Bringing the BXR-48000 to market is a momentous achievement.' One of the objectives of the research program was to help develop highly robust and secure networking equipment capable of supporting next-generation, broadband networks. The BXR-48000 has been rigorously tested by independent laboratories, as well as the US Federal Government, and is under consideration by several top-tier national network operators. 'This sale of the BXR-48000 into one of the most rigorous and demanding network environments in the world demonstrates that Marconi has designed and delivered a high-capacity switch-router that resolves the most pressing needs of communication networks today,' said Chris Nicoll, vice president, Telecom Infrastructure, Current Analysis. 'The BXR-48000 is now generally available, and is proving its functionality in a unique, mission- critical environment.' Joe Pajer, executive vice president of Marconi's Broadband Routing and Switching group, said: 'The BXR-48000 reduces the risk for Service providers as they transition from traditional services to the IP-based services of the future. Convergence is further enabled by the BXR-48000 and provides operators with a single product that helps achieve more efficient network management and longer asset life cycles, helping reduce operators' total cost of ownership and justifying future investment.' Marconi plc is a global telecommunications equipment and solutions company headquartered in London. The company's core business is the provision of innovative and reliable optical networks, broadband routing and switching and broadband access technologies and services. The company's aim is to help fixed and mobile telecommunications operators worldwide reduce costs and increase revenues. The company's customer base includes many of the world's largest telecommunications operators. CONTACT: Heather Green Investor Relations Marconi PLC Telephone: +44 (0) 207 306 1735 E-mail: heather.green@marconi.com MIZA PHARMACEUTICALS: Notice for Sale of Business and Assets ------------------------------------------------------------ The Joint Administrators, Gary Lee and Ron Robinson of Begbies Traynor offer for sale the business and assets of the above group as a going concern. The principal features are: Turnover in excess of GBP20 million Manufacturing operations in Runcorn and Wolverhampton Experienced and skilled workforce State of the art plant and equipment Substantial blue chip customer base For further details please contact: Dean Watson or Steven Handley Begbies Traynor Elliot House 151 Deansgate Manchester M3 3BP Tel: 0161 839 0900 Fax: 0161 832 7436 Email: manchester@begbies-traynor.com OCEAN FLEETS: Offers Sale of Business and Assets ------------------------------------------------ The Joint Administrators, Simona Allport and Garry Wilson of Ernst & Young LLP, offer for sale as a going concern the business and assets of Ocean Fleets Ltd - In Administration. The Company is a provider of technical services to the International marine industry and the waste management industry, operating in the following divisions: Marine support services Environmental services Marine technical services The key features of the businesses are: Turnover in 2001 of GBP10 million Strong order book together with long term contracts in place with the Ministry of Defence Freehold office property in Birkenhead in North West England 44 employees CONTACT: Anthony Moss 100 Barbirolli Square Manchester M2 3EY Tel: 0161 333 2845 PPL THERAPEUTICS: Notice of Purchases of Shares by Directors -------------------------------------------------------------- The Company was informed of the following purchases by Directors on September 16 2002. Director No. of shares Price purchased Geoff Cook 73,300 6.75p Chief Executive Lindsay Dunsmuir 73,300 6.75p Chief Financial Officer Adam Christie 73,300 6.75p Business Development Director Martyn Breeze 44,000 6.75p Product Development Director Contact Information: Geoff Cook Chief Executive Officer PPL Therapeutics plc Telephone: 020 7796 4133 16 WESCOL GROUP: Business and Assets Offered as Going Concern ----------------------------------------------------------- The Joint Administrative Receicers, R H Kelly and G Wilson, offer for sale as a going concern the business and assets of the following companies: Wescol Steel Limited (In Administrative Receivership) Construction steelwork engineer Annual turnover GBP50m Two efficient production facilities (freehold) producing 1,000 tons per week. Further freehold facility capable of producing 600 tons per week Contract value of GBP10m to complete 3 freehold sites at Halifax, Hereford and Brierley Hill Westok Structural Services Limited (In Administrative Receivership) High profile specialist steelwork fabricator Patented cellular beam technology Product specified by all UK structural engineers Long established European business Profitable with annual turnover of GBP7.6m (2002) Leasehold site at Wakefield, West Yorkshire 52 skilled employees CONTACT: Taylor Dewar Cloth Hall Court 14 Kings Street Leeds LS1 2JN Tel: 0113 298 2326 Fax: 0113 298 2206 E-mail: tdewar@uk.ey.com WORLDCOM INC: To Slash More Than 2,000 Jobs in Europe ------------------------------------------------------ Bankrupt US-based telecommunications provider, WorldCom Incorporated recently announced 2,000 to 6,000 job cuts among its work force in Europe, the Middle East and Africa, the Associated Press reports. WorldCom said it is set on focusing on profitability over revenue growth in the following regions and is optimistic that it will have positive cash flow next year, the paper says. The telecommunications provider filed for Chapter 11 bankruptcy protection last July after it was discovered having allegedly misrepresented accounting information and bloating profits for the past years. The company's recent plan for its European, the Mid-Eastern and African (EMEA) operations is focused on lesser investment. However, the company also seeks to maintain voice, Internet and data services as it terminates some unprofitable products. Moreover, the Associated Press reports that the job cuts are still subject to consultation among WorldCom's employees and the Works Council under European law. Such process will undergo several months. WorldCom EMEA senior vice president Lucy Woods disclosed that there was a significant plunged in orders since the company filed for bankruptcy, but overall planned revenue is ahead of schedule. In addition to Europe, the Middle East and Africa, WorldCom has operations in Asia, Canada and Latin America. WORLDCOM INC: Intends to Pay Former Employees' Severance Claims --------------------------------------------------------------- According to Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP, in New York, during the ordinary course of business, Worldcom Inc., and its debtor-affiliates maintain a severance policy for eligible employees providing for severance pay benefits and extended medical and dental benefits for a period of time based generally upon an employee's level and years of service with the Debtors. Historically, Severance Benefits were paid in the form of a one-time, lump-sum payment on or about the termination date. In addition, the Debtors' Severance Program provides for the payment of accrued vacation pay and certain other accrued paid time off, earned but unpaid commissions and performance-based bonuses, reimbursable expenses and other amounts normally paid upon termination of employment, which amounts may be paid at later dates as the payments flow through the Debtors' payroll systems in the ordinary course. Prior to the Petition Date, the Debtors determined that a substantial reduction in its workforce was necessary. In the four months preceding the Petition Date, the Debtors terminated or provided notice of termination to 12,800 employees. In addition, 19 executives were terminated pursuant to severance agreements on terms different from the Debtors' typical Severance Programs. Pursuant to the Debtors' severance program then in effect, the Debtors notified and terminated the employment of 4,700 Employees between March 2002 and June 28, 2002. Ms. Goldstein states that the Employees received their Severance Benefits in the form of a one-time, lump-sum payment on or about the termination date consistent with the Debtors' existing practice. However, there are still other Severance Obligations owed to these Employees. On June 28, 2002, Ms. Goldstein adds that the Debtors notified 8,070 additional Employees that they were being or would be terminated. Of these, 3,820 Terminated Employees were laid-off on June 28, 2002 and 4,250 Terminated Employees were provided with notice of termination at a future date requiring many of them to work through a postpetition date. Due to the Debtors' Liquidity crisis, the Employees were informed that their Severance Benefits would be not paid as a lump-sum payment, but rather would be spread out in the form of bi-weekly payments following termination. Converting the existing "lump-sum" Severance Program to the "biweekly" payment method occurred in the context of the Debtors' tightening liquidity at that time. Ms. Goldstein admits that the Debtors owe about $36,000,000 in Severance Obligations to 4,143 Terminated Employees in addition to amounts already authorized pursuant to the Wage Order. Outstanding Severance Obligations for Terminated Employees include: $28,500,000 in Severance Benefits, $1,900,000 in unpaid accrued PTO, $4,400,000 in Commissions, $250,000 in tuition reimbursement obligations, $1,000,000 for employees transitioned to the purchaser of a unit of the Debtors sold prior to the Petition Date, and other prepetition Severance Obligations otherwise payable by WorldCom under its prepetition Severance Programs. Ms. Goldstein relates that because of the timing of the Chapter 11 case, some Employees have not received their intended severance payments. In contrast, the Employees who will be terminated postpetition will receive their bi-weekly severance payments under company policy as administrative claims against the Debtors' estates. The payable Severance Benefits and PTO to employees terminated postpetition are $16,000,000 and $3,300,000. The Debtors believe that the payment of the Severance Obligations should be addressed as quickly as possible to remedy the inequitable result to the Terminated Employees. Despite the Terminated Employees' accusations reported in the press and to governmental officers, Ms. Goldstein assures the Court that the Debtors did not stretch the payment of Severance Obligations over time with the intention of avoiding payment. At the time the Debtors elected to modify the payment terms of its Severance Program, it did not believe Chapter 11 was imminent. Unfortunately, some Terminated Employees have not been paid their Severance Obligations. To remedy this unintended consequence, the Debtors seek the Court's authority to pay the Terminated Employees all Severance Obligations earned prior to the Petition Date consistent with their practices, programs and policies with respect to their Terminated Employees in effect as of the Petition Date. The Debtors want to correct any misperceptions of wrongdoing and restore the confidence of its employees whose cooperation and continued loyalty of current employees is essential. Ms. Goldstein contends that any delay in paying Terminated Employee obligations will adversely impact the Debtors' relationship with their current employees and will irreparably impair the current employees' morale, dedication, confidence, and cooperation. The employees' support for the Debtors' reorganization effort is critical. At this early stage, the Debtors simply cannot risk the substantial damage to their businesses that would inevitably result from a decline in their Employees' morale attributable to their failure to pay severance, benefits and other similar items or any perceived attempt to intentionally deny these benefits. (Worldcom >Bankruptcy News, Issue No. 7; Bankruptcy Creditors' Service, Inc., 609/392-0900) Worldcom Inc.'s 11.25% bonds due 2007 (WCOM07USA1) are trading at 22.5 cents-on-the-dollar, DebtTraders reports. See http://www.debttraders.com/price.cfm?dt_sec_ticker=WCOM07USA1for real-time bond pricing. ZOTO ENGINEERING: Offers for Sale Business and Assets ----------------------------------------------------- Manufacturer of heavy-duty steel reels principally for use in the oil & electrical industry. Charles Macmillan and Tracy Taylor of BDO Stoy Hayward, Joint Administrators invite offers for the sale of the business and assets of Zoto Engineering Limited. Niche engineer Operating from freehold premises in Sheffield, Yorkshire Turnover circa GBP1.5 million Blue chip customers CONTACT: Tracy Taylor or Tony Sargeant BDO Stoy Hayward The Manor House 260 Ecclesall Road South Sheffield S11 9AT Tel: 0114 236 1000 Fax: 0114 236 2888 E-mail: tony.sargeant@bdo.co.uk ************ 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, Ma. Cristina Canson 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 * * *