/raid1/www/Hosts/bankrupt/TCREUR_Public/021009.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, October 9, 2002, Vol. 3, No. 200
Headlines
* F R A N C E *
ALCATEL: Weak Demand Dims Financial Outlook - CEO
ALCATEL: Installs Mobile Intelligent Network Platform in Russia
ALCATEL: Alcatel Espa¤a Plans New Cost Reduction Program
ALCATEL: Broadens IP Communications Portfolio
NORTEL NETWORKS: Agrees to Sell Optical Component Business Assets
VIVENDI UNIVERSAL: Division Records US$36.5 Million Debut
* G E R M A N Y *
COMMERZBANK AG: Stock Price Down 9% on Liquidity Concerns
DEUTSCHE TELEKOM: Zumwinkel to Remain in Deutsche Post
DEUTSCHE TELEKOM: Ascom Supports Int'l Fixed Network Traffic
* I R E L A N D *
ELAN CORPORATION: Sells Interest in JV to Elite Pharmaceuticals
* I T A L Y *
FIAT SPA: Workforce Reduction to Encounter Protest
FIAT SPA: Generali Acquires Fiat Stake in Europ Assistance
FIAT SPA: Reaches Deal With EDF And Wins Loan From Citigroup
* P O L A N D *
ELEKTRIM SA: Announces Discontinuation of Proceeding
* S W I T Z E R L A N D *
BZ GROUP: Fate Hinges on Development in Swiss Stock Market
CREDIT SUISSE: Fitch Affirms Credit Suisse First Boston 2000-C1
CREDIT SUISSE: Touring Club Suisse Selects SEAGULL's LegaSuite
* U N I T E D K I N G D O M *
ABERDEEN ASSET: Falling Markets and Investments Hit Shares
ABERDEEN ASSET: Notification of Major Interests in Shares
BRITISH ENERGY: Releases Output Statement
CABLE AND WIRELESS: Director Shareholding
CLUBHAUS PLC: Disposes French Asset and Non-core U.K. Golf Club
CORUS GROUP: To Finish Sale of Aluminum Business to French Group
INVENSYS PLC: Sells Drive Systems for $145 Million
KINGFISHER PLC: Notification of Major Interests in Shares
MARCONI PLC: Still Searching for New Chairman to Replace Bonham
PACE MICRO: Notifies Interests of Director John Howard Dyson
PACE MICRO: Chief Executive Officer Malcolm Miller Resigns
PERNOD RICARD: Scottish Operation May Face Widespread Closure
PPL THERAPEUTICS: Applies for Additional Listing of Shares
RAILTRACK PLC: Network Rail Completes Purchase of Bonds
TXU EUROPE: Fitch Downgrades Senior Unsecured Rating to BB
UNIQ PLC: Proposes to Dispose Dairy Crest for GBP86.5 Million
UNIQ PLC: Announces Holdings in Company
WORLDCOM INC: Proposes Uniform Claims Settlement Procedures
===========
F R A N C E
===========
ALCATEL: Weak Demand Dims Financial Outlook - CEO
-------------------------------------------------
Alcatel Chief Executive Serge Tchuruk admits the financial
outlook for the telecommunications company is still clouded by
weakening demand, says Reuters.
In a television enterview with French television station LCI, Mr.
Tchuruk predicts that, "The market will keep shrinking in the
second half."
He admitted he can't predict the recovery of the market as of the
present time, and is still looking at an excess of capacity.
While acknowleding that the company's big clients have halted
investment, he believes the state is not for long term.
He also said he did not expect the high-speed UMTS mobile
Internet market to exhibit strong developments before the end of
2004, but that he still believe in UMTS.
According to the report, the delay in the rollout of UMTS
services is the factor that prevents Alcatel to take-off. The
technology is expected to bring fast Internet and digital images
to cellphones as early as next year.
The delay in the rollout of UMTS network in Europe is further
rooted in the slow spending of phone service providers whose
balance sheets were still recovering from billions of euros spent
on wireless licenses and global expansion.
Alcatel earlier acknowledges the downgrade from BB+ to B+ taken
by rating agency S&P. While agreeing that the action reflects
the deterioration of the telecom market, the company, on the
otherhand, believes that it underestimates Alcatel's financial
strength and its roadmap to overcome the crisis.
CONTACT: Alcatel
54, rue La Bo,tie
75008 Paris, France
Phone: +33-1-40-76-10-10
Fax: +33-1-40-76-14-00
ALCATEL: Installs Mobile Intelligent Network Platform in Russia
---------------------------------------------------------------
SUCT (South Ural Cellular Telephone), one of Russia's leading
regional mobile operators and Alcatel announced that they have
signed an agreement for the delivery of Alcatel's mobile
Intelligent Network (IN) to SUCT. This is Alcatel's first next
generation mobile IN platform to be installed in the Russian
Federation in the city of Chelyabinsk. Delivery is scheduled for
the end of 2002.
Under the terms of the contract, Alcatel will deliver and install
its next generation mobile Intelligent Network based on its
world-class Open Services Platform (OSP release 2.3), part of the
company's Open Service Delivery Engine offer. Alcatel's IN
solution will allow South Ural Cellular Telephone to introduce
new value added services, such as prepaid services, as well as
flexible tariff plans, and to improve the quality of customer
service.
"In the highly competitive mobile market of today, added value
services are absolutely necessary for us. The new platform will
allow us to increase revenue and to offer our customers a rich
variety of advanced high-quality affordable services," said Mr
Blinov, general director of SUCT.
"Alcatel's Open Services Platform is the ideal basis for mobile
operators to protect and extend their business now and towards
future 2,5 and 3G generation mobile communications," said Max
Raphalen, senior vice president of Alcatel's Applications
Software activities.
About South Ural Cellular Telephone
SUCT (South Urals Cellular Telephone) is a company with limited
liability, which became a leading GSM operator in the Chelyabinsk
and Kurgan Regions. Broad experience, efficient solutions,
convenient and - as a result - popular services, reliable state-
of-the-art network, and, which is most important, friendly
cooperation with customers - these are the factors, which made
the company a market leader in South Urals. SUCT has been
operating in the regional mobile market since 1995. It is quite
successful in promoting its services and choosing the optimal
price/performance ratio.
The company regularly introduces innovations which helps to raise
customer satisfaction. By January 1, 2002 its subscriber base
grew more than two-fold and exceeded 100,000 users. Today one of
each twenty persons residing in Chelyabinsk and Kurgan Regions
uses SUCT services. By the end of 2002, SUCT plans to provide
its services to 140,000 subscribers. In 2003 the company plans to
extend its customer base to 300,000 users.
About Alcatel
Alcatel designs, develops and builds innovative and competitive
communications networks, enabling carriers, service providers and
enterprises to deliver any type of content, such as voice, data
and multimedia, to any type of consumer, anywhere in the world.
Relying on its leading and comprehensive products and solutions
portfolio, stretching from end-to-end optical infrastructures,
fixed and mobile networks to broadband access, Alcatel's
customers can focus on optimizing their service offerings and
revenue streams. With sales of EURO 25 billion in 2001, Alcatel
operates in more than 130 countries.
About Alcatel's Applications Offer
Alcatel's application portfolio leverages and extends the value
of telecom networks. At the junction of both the telecom and the
Internet worlds, Alcatel's offer represents our vision of value-
adding telecom applications for existing and future networks.
With more than 110 customers worldwide, Alcatel has a proven
track record in this domain. Alcatel's Open Services Platform is
part of the company's strategic Open Service Delivery Engine
which is the ideal applications environment based on next
generation IN and J2EE technology. It enables the implementation
of a wide range of applications such as network proxies, WAP or
SMS gateways, messaging solutions such as UMS or MMS, 0800 and
0900 services, mobile or fixed VPN solutions, a complete and
convergent real-time payment chain, and more.
Note:
The Troubled Company Reporter in its October 3, 2002 issue
reported that Alcatel's unit, Alcatel Canada recently announced
employee reductions of over 400 positions or about 12% of the
overall workforce. This was to address the continuing economic
slowdown in the telecommunications networking industry. Alcatel
Canada also announced an acceleration of its cost management
initiatives in Canada. The initiatives are designed to gain
efficiencies in Alcatel's overall Canadian operating budget.
It was also reported that the employees affected by the reduction
will receive separation packages and outplacement services.
Previously, in September it was also reported that Alcatel had
planned to cut its workforce by 10,000 as its target return to
profitability by 2003 is clouded by a steep fall in second-half
sales. The move follows the 10,000 job cuts announced in June.
The redundancies will reduce the company's headcount to around
60,000 employees at the end of next year, Telegraph says. Around
EUR500 million (GBP315 million) was provisioned for the slash.
In July, S&P cut Alcatel's long-term corporate credit and senior
unsecured debt ratings to 'BB+/B', after the company released its
profit warning. S&P said the rating shows the worsening market
conditions of the telecom equipment industry and the continuing
lack of trading visibility.
CONTACT: Alcatel
54, rue La Bo,tie
75008 Paris, France
Phone: +33-1-40-76-10-10
Fax: +33-1-40-76-14-00
Toll Free: 800-777-6804
Home Page: http://www.alcatel.com
ALCATEL: Alcatel Espa¤a Plans New Cost Reduction Program
--------------------------------------------------------
Alcatel Espa¤a, Alcatel's Spanish telecom subsidiary, has
notified its employees and the Works Council that it intends to
restructure its activities, due to the continuing weakness of the
worldwide and domestic telecom market.
This announcement is part of the restructuring measures recently
announced by the Group.
As a consequence, the staff will be adapted to the current market
conditions. Alcatel Espa¤a estimates redundancies of around 850
employees of different levels in several branches and
departments. Alcatel Espa¤a currently employs 2,940 people. The
plan also contemplates the reinforcement of the current operating
costs reduction program, extended to all the elements that could
contribute.
Alcatel Espa¤a intends to carry out a substantial part of this
plan during the current year.
About Alcatel
Alcatel (Paris: CGEP.PA and NYSE: ALA) designs, develops and
builds innovative and competitive communications networks,
enabling carriers, service providers and enterprises to deliver
any type of content, such as voice, data and multimedia, to any
type of consumer, anywhere in the world. Relying on its leading
and comprehensive products and solutions portfolio, stretching
from end-to-end optical infrastructures, fixed and mobile
networks to broadband access, Alcatel's customers can focus on
optimizing their service offerings and revenue streams. With
sales of EURO 25 billion in 2001, Alcatel operates in more than
130 countries.
Note:
The Troubled Company Reporter in its October 3, 2002 issue
reported that Alcatel's unit, Alcatel Canada recently announced
employee reductions of over 400 positions or about 12% of the
overall workforce. This was to address the continuing economic
slowdown in the telecommunications networking industry. Alcatel
Canada also announced an acceleration of its cost management
initiatives in Canada. The initiatives are designed to gain
efficiencies in Alcatel's overall Canadian operating budget.
It was also reported that the employees affected by the reduction
will receive separation packages and outplacement services.
Previously, in September it was also reported that Alcatel had
planned to cut its workforce by 10,000 as its target return to
profitability by 2003 is clouded by a steep fall in second-half
sales. The move follows
the 10,000 job cuts announced in June.
The redundancies will reduce the company's headcount to around
60,000 employees at the end of next year, Telegraph says. Around
EUR500 million (GBP315 million) was provisioned for the slash.
In July, S&P cut Alcatel's long-term corporate credit and senior
unsecured debt ratings to 'BB+/B', after the company released its
profit warning. S&P said the rating shows the worsening market
conditions of the telecom equipment industry and the continuing
lack of trading visibility.
CONTACT: Alcatel
54, rue La Bo,tie
75008 Paris, France
Phone: +33-1-40-76-10-10
Fax: +33-1-40-76-14-00
Toll Free: 800-777-6804
Home Page: http://www.alcatel.com
ALCATEL: Broadens IP Communications Portfolio
---------------------------------------------
Alcatel adds three new e-Reflexes IP phones and WebSoftphone to
the award-winning OmniPCX 4400 IP-PBX portfolio. These e-Reflexes
cater to a growing trend of businesses deploying all-IP telephony
networks. The Alcatel WebSoftphone enables businesses to exploit
the full potential of the Internet by delivering corporate
telephony features quickly and efficiently to online employees.
The Alcatel WebSoftphone is an evolution of the award-winning
Alcatel 4980 Softphone* and is the first XML (eXtensible Markup
Language) - coded application developed for the OmniPCX 4400.
According to industry research firm The Yankee Group, most mid-
sized to large enterprises are either currently using IP
telephony or currently investigating whether to deploy IP
telephony into their networks. "We expect that by 2005, 60
percent of new phone systems sold will be either IP-PBXs or
hybrid IP-PBXs," said Joe Gagan, senior analyst, Yankee Group.
"We recommend that most enterprises strongly consider purchasing
an IP telephony system when it is time to look at a new phone
system."
New IP Phones from Alcatel are:
The Alcatel e-Reflexes 4035 IP Telephone - This high-end IP
desktop phone features dial-by-name and text messages via an
integrated alphabetic keyboard, 24 fixed programmable keys, 45
display-based programmable keys aided by a navigator function,
five dynamic soft keys to display call handling features in
active communication mode, and a full-duplex speakerphone. The
4035IP is highly suitable for intensive call handling and group
telephony usage.
The Alcatel e-Reflexes 4020 IP Telephone - The 4020IP comes with
dial-by-name capability via an integrated alphabetic keyboard, 12
fixed programmable keys, and a full-duplex speakerphone. This
mid-range IP desktop phone is designed for any kind of team
worker such as office clerks, sales representatives, and business
managers.
The Alcatel e-Reflexes 4010 IP Telephone - This desk- or wall-
mountable dual-line IP phone provides loudspeaker convenience and
features eight fixed programmable keys. The 4010IP is intended
for basic call handling applications and individual telephony
usage.
In line with Alcatel's commitment to open standards, the Alcatel
e-Reflexes are compliant with IEEE 802.3af Power over LAN
standard. This allows the IP phones to safely and reliably
receive data and power over Category 5 network cables from any
standards-based power patch panel or LAN switch. This eliminates
the cost of installing separate power adapters for each phone and
allows for centralized power backup. All three phones include an
integrated 10/100 Base-T switch, allowing the connection of a
personal computer (PC) with priority management of the voice and
data traffic.
For businesses that are not yet ready to fully implement IP
telephony, Alcatel continues to provide an IP plugware option.
This allows businesses to purchase digital phones today with the
reassurance that they can be upgraded to IP whenever they are
ready.
The Alcatel WebSoftPhone provides telecommuters and mobile
workers with a host of telephony features and dialing
capabilities including corporate phonebook directories,
management of telephone features and forwarding options, and
access to voicemail over the intranet/Internet. Built as a true
thin client application requiring only a web browser and no plug-
ins, the WebSoftphone can be rapidly deployed and eliminates the
cost of maintaining additional software on remote PCs. System
administrators can also save valuable time and money by managing
telecommunications charges centrally.
The WebSoftphone is PC operating system independent and also
integrates easily with popular business applications (like
Microsoft Outlook/Outlook Web Access and Lotus Notes/Notes Web
Access) and directory servers (like Lightweight Directory Access
Protocol). Both the WebSoftphone and 4980 Softphone are supported
by a single server and may be used interchangeably by any
licensed user.
Concurrent with the release of this new XML-based application,
Alcatel is also introducing a software development kit (SDK) that
provides the XML Telephony API to independent software vendors
and developers for accessing the OmniPCX 4400 telephony features
in a Web-based application. This enables companies to integrate
access to OmniPCX 4400 telephony features into any standard web
page. The XML Telephony API is one of the many standard APIs
supported and promoted by the Alcatel Applications Partner
Program (http://www.applicationspartner.alcatel.com).
Alcatel's 4980 Softphone won Network World's World Class Award in
the February 25 IP-based soft phones review
(http://www.nwfusion.com/reviews/2002/0225rev.html).
Pricing and Availability
The Alcatel e-Reflexes and Web Softphone are available worldwide
September 2002. Pricing for the e-Reflexes range from $285 to
$495. For customers who have already installed the Alcatel 4980,
the Web Softphone client is free of charge (no extra software
license is required). The commercial price of the XML SDK is
$4,469 (inclusive of server code, API documentation, examples of
XML codes, and 10 users licenses). For more information, call
800-995-2612.
About Alcatel enterprise networking solutions
Alcatel delivers standards-based IP communications solutions to a
global customer base of over 500,000 small, medium and large
enterprises, government agencies, healthcare facilities, and
educational institutions.
Alcatel's award-winning Omni family of IP Communications
solutions consists of an extensive portfolio of network switching
infrastructure, security appliances, and IP telephony
applications built to provide long-term value.
Note:
The Troubled Company Reporter in its October 3, 2002 issue
reported that Alcatel's unit, Alcatel Canada recently announced
employee reductions of over 400 positions or about 12% of the
overall workforce. This was to address the continuing economic
slowdown in the telecommunications networking industry. Alcatel
Canada also announced an acceleration of its cost management
initiatives in Canada. The initiatives are designed to gain
efficiencies in Alcatel's overall Canadian operating budget.
It was also reported that the employees affected by the reduction
will receive separation packages and outplacement services.
Previously, in September it was also reported that Alcatel had
planned to cut its workforce by 10,000 as its target return to
profitability by 2003 is clouded by a steep fall in second-half
sales. The move follows the 10,000 job cuts announced in June.
The redundancies will reduce the company's headcount to around
60,000 employees at the end of next year, Telegraph says. Around
EUR500 million (GBP315 million) was provisioned for the slash.
In July, S&P cut Alcatel's long-term corporate credit and senior
unsecured debt ratings to 'BB+/B', after the company released its
profit warning. S&P said the rating shows the worsening market
conditions of the telecom equipment industry and the continuing
lack of trading visibility.
CONTACT: Alcatel
54, rue La Bo,tie
75008 Paris, France
Phone: +33-1-40-76-10-10
Fax: +33-1-40-76-14-00
Toll Free: 800-777-6804
Home Page: http://www.alcatel.com
NORTEL NETWORKS: Agrees to Sell Optical Component Business Assets
-----------------------------------------------------------------
Establishes Strategic Supply Relationship for Optical Components
Nortel Networks Corporation (NYSE:NT) (TSX:NT) announced an
agreement whereby it will sell certain assets relating to its
optical components business to Bookham Technology plc (LSE:BHM)
(Nasdaq:BKHM) for 61 million common shares of Bookham Technology
plc, nine million warrants with a strike price of one-third pence
(the value of the common shares and warrants is based on an
October 4, 2002 closing price of US$0.69 cents per share) and
debt of US$50 million. Bookham Technology will also pay Nortel
Networks a US$10 million cash reimbursement for certain
restructuring expenses incurred in connection with this
transaction.
"This transaction is an important step in our path to
profitability and our strategy to focus on the delivery of high
performance, cost-effective optical network solutions for our
customers," said Brian McFadden, president, Optical Networks,
Nortel Networks. "This strategic relationship with Bookham
Technology will enable Nortel Networks to maintain its supply of
best in class optical components from a world-class supplier. We
are excited about this relationship and our ability to jointly
collaborate on next generation components, and we expect that it
will drive innovation and customer-responsive solutions for both
companies."
Under the terms of the agreement, Nortel Networks will sell the
transmitter and receiver business located in Paignton, U.K.,
Ottawa, Canada, and Harlow, U.K., and the pump laser and
amplifiers business located in Paignton, U.K., Zurich,
Switzerland, and Poughkeepsie, New York. The assets include
patents, other intellectual property and trademarks. The
transaction also includes a 3-year supply agreement for minimum
purchases of approximately $120 million for the first 18 months.
Approximately 1,000 employees will have the opportunity to
continue their employment with Bookham Technology after
redundancies are addressed and existing customer contracts will
be assumed by Bookham Technology. The transaction is expected to
close in the fourth quarter of 2002. As a condition of the sale
in Europe, all necessary employee consultation requirements must
also be satisfied. The completion of the transaction is also
subject to customary regulatory approvals and a vote by the
shareholders of Bookham Technology.
Credit Suisse First Boston acted as financial advisor to Nortel
Networks for this transaction.
Bookham Technology, headquartered in Abingdon, Oxfordshire,
United Kingdom, designs, manufactures and markets integrated
multi-functional action and passive optical components using high
volume production methods. Using patented silicon-based ASOC,
Gallium Arsenide and Indium Phosphide technologies, the company
provides end-to-end networking solutions that offer higher
performance and greater systems capability to communications
network system providers.
Nortel Networks is an industry leader and innovator focused on
transforming how the world communicates and exchanges
information. The company is supplying its service provider and
enterprise customers with communications technology and
infrastructure to enable value-added IP data, voice and
multimedia services spanning Wireless Networks, Wireline
Networks, Enterprise Networks, and Optical Networks. As a global
company, Nortel Networks does business in more than 150
countries. More information about Nortel Networks can be found on
the Web at www.nortelnetworks.com.
Nortel Networks, the Nortel Networks logo and the Globemark are
trademarks of Nortel Networks.
CONTACT: Nortel Networks Corporation
Media:
David Chamberlin, 972/685-4648
E-mail:ddchamb@nortelnetworks.com
or
Tina Warren
Phone: 905/863-4702
E-mail: tinawarr@nortelnetworks.com
or
Investors: 888/901-7286 or 905/863-6049
E-mail: investor@nortelnetworks.com
VIVENDI UNIVERSAL: Division Records US$36.5 Million Debut
---------------------------------------------------------
Universal Pictures' "Red Dragon" earned US$36.5 million in its
opening weekend, making it the number one film at the domestic
box office and setting records for the biggest October opening of
all time as well as for an R-rated fall release. With 3,357
playdates, the suspense thriller had a per theater average of
US$10,885.
Said Universal Pictures Distribution President Nikki Rocco: "This
is a terrific opening, and the best news is that, based on our
exit polls, this third time around, audiences were not
disappointed one bit. Thanks to Brett Ratner and Dino and Martha
De Laurentiis and their amazing cast, headed by the magnificent
Anthony Hopkins, we were able to continue the franchise with
Hannibal Lecter the way moviegoers want to see him. This is a
very classy suspense thriller that will play throughout the fall
season."
Directed by Brett Ratner and produced by Dino De Laurentiis and
Martha De Laurentiis, "Red Dragon" is based on Thomas Harris'
1981 novel, which first introduced the character of serial killer
Hannibal Lecter, immortalized in Harris' subsequent best-sellers
"The Silence of The Lambs" (1988) and "Hannibal" (1999). The
Lecter character demonstrated its immense appeal in the film
adaptations of both of the later novels, and Hopkins won the
Academy Award(R) for his performance in "The Silence of the
Lambs." Screenwriter Ted Tally, who won an Oscar(R) for Silence,
wrote the "Red Dragon "screenplay.
In addition to Hopkins, the filmmakers assembled an exceptional
cast for "Red Dragon" including two-time Oscar(R) nominees Edward
Norton ("Primal Fear," "American History X") as Will Graham,
Ralph Fiennes ("Schindler's List," "The English Patient") as
Francis Dolarhyde and Emily Watson ("Breaking the Waves," "Hilary
and Jackie") as the blind Reba McClane. Oscar(R) nominee Harvey
Keitel ("Bugsy") portrays FBI honcho Jack Crawford, Tony Award
winner Mary-Louise Parker ("Proof") plays Molly Graham and Tony
nominee Philip Seymour Hoffman ("True West") takes on the role of
tabloid reporter Freddy Lounds.
Ratner's key behind-the-camera collaborators, all part of his
team on his 2000 film "The Family Man," include director of
photography Dante Spinotti ("Wonder Boys," "L.A. Confidential"),
production designer Kristi Zea ("Goodfellas," "The Silence of the
Lambs"), costume designer Betsy Heimann ("Vanilla Sky," "Out of
Sight") and editor Mark Helfrich ("Rush Hour 2," "Scary Movie").
The composer is Danny Elfman ("Spiderman," "Men in Black II").
"Red Dragon" is a Universal Pictures-De Laurentiis Company
presentation in association with Metro-Goldwyn-Mayer.
Universal Pictures is a division of Vivendi UNIVERSAL
Entertainment (VUE) ( www.universalstudios.com ), the U.S.-based
film, television and recreation entity of Vivendi Universal, a
global media and communications company.
CONTACT: Beth Laski of Universal Pictures
Phone: +1-818-777-9301
Home Page: http://www.universalstudios.com
=============
G E R M A N Y
=============
COMMERZBANK AG: Stock Price Down 9% on Liquidity Concerns
---------------------------------------------------------
The stock of Commerzbank, Germany's third-largest bank, dropped
in a 10-year low of more than 9% on rumors of liquidity crisis.
According to CNN, Commerzbank's shares, which have fallen more
than 70 percent from a high of EUR 21.29 in March, were down 6.5
percent to EUR5.65 in mid-morning Frankfurt trading on Monday.
The bank denied rumors of financial crisis after reports came out
that it has sustained large trading losses in credit derivatives.
According to The Sunday Telegraph, investors were disturbed about
the leak of information from an e-mail of Merrill Lynch to
Standard & Poor's saying that the rumors of the losses are
circulating.
The financial institution also denied speculations that it was
looking to raise new capital.
Paul Roy, co-president of global markets and investment banking
at Merrill Lynch, insisted that the communication is part of
regular daily contact between its internal credit department and
one of the rating agencies. He was reportedly wondering ho how
the information became public.
Mr. Roy assured that there are no changes in the investment
bank's relationship with Commerzbank, saying there was no
alteration in their credit policy for the German institution.
Meanwhile, Derek Chambers, an analyst at HSBC Securities in
London, told Reuters: "I think the big problem is the liquidity
standing in the wholesale markets which is indicated by credit
default swaps".
Mr. Chambers added that, "They say they have got enough liquidity
for now but given their fairly low operating margins, increases
in cost of funding will be paid for.''
DEUTSCHE TELEKOM: Zumwinkel to Remain in Deutsche Post
------------------------------------------------------
Klaus Zumwinkel, the head of Germany's post office who was said
to be the leading candidate to head Deustche Telekom, on Monday
said that he is not interested in the post.
According to Associated Press, Mr. Zumwinkel issued the statement
to state clearly his intentions to remain in Deutsche Post after
people in his company sought him for confirmation.
Sueddeutsche Zeitung daily reported on weekend that the
supervisory board chairman and the government, which is Deutsche
Telekom's biggest shareholder, favors Zumwinkel to take on the
position occupied by Ron Sommer.
Helmut Sihler was appointed interim chairman for six months when
Mr. Sommer left the post in July.
Other contenders for the chairmanship of the telecommunications
provider are the head of T-Mobile wireless division, Kai-Uwe
Ricke, and chief financial officer, Karl-Gerhard Eick.
Deutsche Telekom, which posted net loss of EUR3.9 billion for the
first half of 2002, is currently conducting a review to solve the
EUR4 to EUR7 billion gap in the company's plan to reduce its debt
to EUR50 billion by the end of 2003. The company had EUR64.2
billion-debt at the end of June.
CONTACT: DEUTSCH TELECOM AG
Friedrich-Ebert-Allee 140
53113 Bonn, Germany
Phone: +49-228-181-0
Fax: +49-228-181-8872
Home Page: http://www.telekom.de
DEUTSCHE TELEKOM: Extends Contract With Lucent Technologies
----------------------------------------------------------
Lucent Technologies (NYSE: LU) announced that it has expanded and
extended an existing contract with Deutsche Telekom for optical
transmission technology until the end of 2003.
Deutsche Telekom (DT) also has confirmed Lucent as a supplier for
optical networking technology for DT's worldwide transmission
network.
In 2000 DT awarded Lucent a two-year contract to supply a
leading-edge optical network to help DT meet its business and
residential customers' growing bandwidth demand for data
applications. This one-year extension of that contract introduces
new products, including the LambdaUnite(TM) MSS into the Deutsche
Telekom network.
"The contract represents a continuation of the long-term
strategic partnership between Deutsche Telekom and Lucent
Technologies, and underscores our commitment to the optical
networking market." said Hans Huber, president and CEO of
Lucent's InterNetworking Systems business in Europe, Middle East
and Asia. "There always will be demand for innovative products
even in difficult market conditions. This especially holds true
when the products enable network operators to offer new,
profitable services, or when they enable service providers to
manage their networks more cost effectively."
Deutsche Telekom successfully trailed the LambdaUnite(TM) MSS,
Lucent's next-generation optical transport system and switch, and
has already implemented several units of the product into their
network. Its compact size and low energy requirements of the
LambdaUnite(TM) MSS offers carriers significant cost savings
compared to traditional systems. Developed by Bell Labs,
LambdaUnite(TM) MSS bridges traffic between data-intense metro
networks and high-speed optical core networks, connecting cities,
campuses and corporate networks to larger, long-haul public
networks. The product supports both Synchronous Optical
Networking (SONET) and Synchronous Digital Hierarchy (SDH),
enables service providers to seamlessly upgrade their networks to
40G gigabits per second (Gb/s) and allows them to deliver new
value-added services such as gigabit Ethernet. For more
information visit the Lucent website:
http://www.lucent.com/products/lambdaunite.
The contract also covers the introduction of the latest
generation of flexible SDH multiplexers. All products are
optionally available with Lucent's TransLAN(TM) Ethernet SDH
Transport solution. This feature will help Deutsche Telekom offer
its business customers reliable end-to-end Ethernet transport
services.
About Lucent Technologies
Lucent Technologies, headquartered in Murray Hill, N.J., USA,
designs and delivers networks for the world's largest
communications service providers. Backed by Bell Labs research
and development, Lucent relies on its strengths in mobility,
optical, data and voice networking technologies as well as
software and services to develop next-generation networks. The
company's systems, services and software are designed to help
customers quickly deploy and better manage their networks and
create new, revenue-generating services that help businesses and
consumers. For more information on Lucent Technologies, visit its
Web site at http://www.lucent.com.
CONTACT: Lucent Technologies, Murray Hill
Jenn McManus
Phone: 908/582-5703
Fax: 908/582-1209
E-mail: mcmanusj@lucent.com
or
Lucent Technologies, Bonn
Martina Grueger
Phone: +49-228-243-1230
E-mail: grueger@lucent.com
DEUTSCHE TELEKOM: Ascom Supports Int'l Fixed Network Traffic
------------------------------------------------------------
The German Deutsche Telekom (DTAG) commissioned Ascom with the
preparation of the concept, the implementation and the
maintenance of a routing management system for its international
fixed network traffic. With the Ascom solution, Europe's largest
telecommunications provider can carry out the interconnection of
the networks more efficiently, save costs and at the same time
monitor the quality of the connections. With this order that is
worth several million euro, Ascom is continuing its successful
cooperation with Deutsche Telekom and has strengthened its
position as an important systems integrator for sophisticated,
comprehensive solutions.
Deutsche Telekom has commissioned Ascom Network Integration
(Systems & Solutions Business Area) with the preparation of the
concept and the implementation of a routing management system to
optimise the interconnection of the networks for its fixed
network traffic. The innovative system controls the optimal
routing of telephone connections between the international
carriers, efficiently and cost-effectively. The system
automatically and permanently provides the operational staff with
suggestions about the connections with the best quality/price
ratio. To ensure smooth operation, Ascom will train Deutsche
Telekom employees on the new system at several sites and provide
them with support.
As well as the management of the interconnection of the networks,
Ascom's solution offers a range of additional functions that will
have a positive effect on the efficiency and rentability of
Deutsche Telekom's business in the international voice-switching
sector. Amongst others, these include real-time traffic and
network analyses, the monitoring of the targeted margins with the
associated success reports as well as the checking of the quality
of service.
"The keen competition in the international telecommunications
market and the rapid rate of changes demand new approaches and
solutions. Using the routing management system from Ascom, as
Europe's largest telecommunications provider Deutsche Telekom can
react very rapidly to new market conditions and hence achieve a
decisive competitive advantage" explains Klaas Scheppink, the
responsible project manager from the Systems & Solutions Business
Area of Ascom Network Integration.
The trend-setting routing management system is based on a
software platform from the Emerging Technologies Group Inc.
(ETG), an Ascom strategic partner. Thanks to the underlying XML
technology, the user can access the system from any Internet
compatible PC. Ascom has fully integrated the software solution
from ETG into the Deutsche Telekom's environment and combined it
with the existing NAKODA billing system. With support from
NAKODA, an Ascom development, Deutsche Telekom has for many years
successfully carried out the billing of the fixed network
international traffic. Through the integration of the routing
management system with NAKODA, Deutsche Telekom is able to
process its activities faster and to carry out a comprehensive
check - from the sale of its own capacity and the purchase of
third-party capacity, through traffic routing and right up to the
billing. The beneficiaries are several hundred network operators
who as Deutsche Telekom customers receive a better service.
The routing platformused by Ascom Network Integration won through
against solutions from well-known competitors. The performance
during the evaluation phase and the many years of good
cooperation were the basis for Europe's largest
telecommunications provider's choice of Ascom Network Integration
to supply the routing management system. Ascom Network
Integration is one of Ascom's four core businesses, which also
includes the business sectors Security Solutions, Transport
Revenue, and Wireless Solutions.
About Ascom
Ascom is an international service provider for integrated voice
and data communications, network-based security solutions and
networked revenue collection systems for public and private
transport operators. The Network Integration, Security Solutions,
Wireless Solutions and Transport Revenue Business Units plan,
build, maintain and operate tailor-made, comprehensive solutions
along the complete value-added chain - with a service-oriented
portfolio and proven technology know-how. Ascom is active
worldwide in markets with a high growth potential. The Ascom
registered shares (ASCN) are quoted on the SWX Swiss Exchange in
Zurich.
=============
I R E L A N D
=============
ELAN CORPORATION: Sells Interest in JV to Elite Pharmaceuticals
---------------------------------------------------------------
Elite Pharmaceuticals, Inc., (Amex: ELI) has consummated an
agreement with Elan Corporation, plc (NYSE: ELN) to acquire all
of Elan's interest in a joint venture company, Elite Research
Limited. The termination of the joint venture results from
Elan's continuing restructuring efforts. Elite now owns 100
percent of the joint venture company and intends to expedite the
development of the products that were developed within the
collaboration.
The joint venture has completed the initial Phase I study for its
first product, a once-a-day Oxycodone formulation. The study
compared the once a day formulation against the twice-daily
reference product that is currently marketed. The data showed
comparable bioavailability. Accordingly, Elite intends to proceed
with the next stage of development. The US market for twice a day
oxycodone products exceeds $1 billion. Currently there is no once
a day formulation for this compound.
The joint venture has also been developing a second product in
the CNS therapeutic area to compete with a currently marketed
product whose US sales exceed $1 billion. Dr. Atul Mehta, the
President and CEO of Elite stated, "We are excited to have
obtained the world-wide development and commercialization rights
for these products. We anticipate commencing larger studies on
the first product in the near future. As a result of this
transaction, we have regained control over the products, and we
are now in a position to make the strategic decisions that will
most efficiently move them toward commercialization."
Under the termination agreement, Elite acquired all proprietary,
development and commercial rights for the worldwide markets for
the products developed by the joint venture. In exchange for this
assignment, Elite Research has agreed to pay Elan a royalty on
certain revenues that may be realized from the once-a-day
Oxycodone product only that has been developed by the joint
venture. Elan and its transferees also retained Elite securities
that were issued in connection with the joint venture, and those
securities are being converted to Elite common stock at a
significant premium.
Elite Laboratories, a wholly owned subsidiary of Elite
Pharmaceuticals, Inc., specializes in oral drug delivery, and
applies its proprietary controlled release technology to the
development of delayed release, sustained release, targeted
release and pulse release products for NDA or ANDA submission.
Elite has been issued several patents, and additional patent
applications are pending.
Note:
As reported in Troubled Company Reporter's August 2, 2002
edition, Standard & Poor's lowered its corporate credit rating on
Elan Corp., PLC to single-'B'-minus from double-'B'-minus, and
all of its other ratings on the specialty pharmaceutical company
and its affiliates. The ratings are removed from CreditWatch,
where they were placed on July 2, 2002, with negative
implications. The actions are due to Standard & Poor's increased
concern over Elan's ability to meet obligations as they come due.
The low speculative-grade rating on Dublin, Ireland-based Elan
reflects the company's declining pharmaceutical sales prospects,
significant upcoming debt maturities and other funding needs, and
the uncertain value of its investment portfolio, mitigated
somewhat by its still substantial cash position. The outlook is
negative.
=========
I T A L Y
=========
FIAT SPA: Workforce Reduction to Encounter Protest
--------------------------------------------------
The plan of Fiat Auto to lay off one-fifth of its domestic
workforce may encounter strong opposition from politicians and
labor leaders, says Financial Times.
The carmaker, which admitted having 20 to 30% excess manpower, is
urrently considering further job cuts to raise money for
investment.
Although reports have it that Fiat Auto plans to dismiss between
3,000 to 4,000 jobs, unions fear the figure could be up to 6,000.
The number is on top of the 2,900 slashes the automaker made this
year.
The company is currently trying to achieve a turnaround in sales
during the fourth quarter, but weakness in its important domestic
market is cutting the drive short.
Yet despite the possible oppostion, bankers and analysts believe
the move should have been done earlier as this time may be too
late to avoid a possible sell-off of Fiat Auto to General Motors.
The unit suffered a first-half operating loss of EUR813 million
(US$798 million), despite profits from the industrial group's
truck, aviation, and farm and construction equipment
manufacturing.
The division is as well expected to report significant losses in
the third quarter as sales in Italy, its main market, continue a
sharp slide.
According to the report, one banker said his group is more
worried about the new round of job cuts, as it highlights the
possible sale of Fiat Auto to General Motors, which already owns
20% of the car division.
CONTACT: FIAT SPA
250 Via Nizza
10126 Turin, Italy
Phone: +39-011-686-1111
Fax: +39-011-686-3798
Toll Free: 800-804027
Home Page: http://www.fiatgroup.com/e-index.htm
FIAT SPA: Generali Acquires Fiat Stake in Europ Assistance
----------------------------------------------------------
The Generali Group and the Fiat Group, which own 60% and 40% of
Europ Assistance Holding respectively, have finalized an
agreement pursuant to which Generali, through Generali France
Holding, will acquire the stake currently held by the Turin-based
Group.
The transaction is valued at 124 million euros with a capital
gain for Fiat exceeding 80 million euros.
The acquisition of total control of the Europ Assistance Group is
an additional opportunity for Generali to forge new industrial
alliances within the framework of its strategy to further develop
the Group's activities, by teaming up with partners active in
different sectors when necessary. The Europ Assistance Group is
leader in the market of medical and roadside assistance services
for private and corporate customers and is present in more than
200 countries and territories.
Thanks to this transaction Fiat takes a further step forward in
its program to divest non-strategic assets, at the same time
realizing a significant capital gain from the divestiture of its
stake in Europ Assistance Holding.
FIAT SPA: Reaches Deal With EDF And Wins Loan From Citigroup
------------------------------------------------------------
Fiat and EDF-Electricit, de France have finalized their
agreements, already announced on June 14, pursuant to which Fiat
has obtained a put option with EDF exercisable in 2005 for its
24.6% equity stake in Italenergia Bis ("IEB").
Fiat has at the same time finalized a credit facility from 5
banks led by Citigroup, for approximately 1.15 billion euros,
secured by its agreements with EDF and maturing in 2005.
The transactions have the approval of all the relevant regulatory
bodies.
The loan has been fully drawn by Fiat on September 30.
===========
P O L A N D
===========
ELEKTRIM SA: Announces Discontinuation of Proceeding
----------------------------------------------------
The Management Board of Elektrim S.A. announces that the Warsaw
District Court, XVII Commercial - Bankruptcy and Composition
Division, has discontinued on October 7 2002, the proceeding
relating to the declaration of the Company's bankruptcy commenced
at Elektrim's request filed on 13 September 2002.
At the hearing, the Court also announced that two bankruptcy
requests had been filed with the court by the Company's
creditors. The Court has announced that the date of a hearing to
examine the requests would be set within 14 days and has granted
Elektrim S.A. 7 days to present its opinion regarding the
requests.
The Company will disclose more details about the requests when it
gets acquainted with their contents.
CONTACT: Jacek Dabrowski
Director of Investor Relations
Phone: (+48 22) 432 87 75
Fax: (+48 22) 432 84 75
Email: jacek_dabrowski@elektrim.pl
=====================
S W I T Z E R L A N D
=====================
BZ GROUP: Fate Hinges on Development in Swiss Stock Market
----------------------------------------------------------
The indebted investment empire of Martin Ebner, once Europe's
most feared financier, is in danger if Switzerland's battered
stock market continues to fall, The Asian Wall Street Journal
reports citing people familiar with his finances.
BZ Group is currently undertaking a restructuring, which included
selling its 20% stake in Swiss chemicals company Lonza. BZ Group
has already sold half its Lonza stake to billionaire Christoph
Blocher. The sale of the stake fueled fears of a fire sale of
shares in top Swiss firms by Martin Ebner's debt-laden BZ Group.
BZ Group has stakes bank Credit Suisse Group and engineering
group ABB.
According to the report, the growing threat of a fire sale could
undermine the agreement that Mr. Ebner entered with creditors in
July. The bank granted Mr. Ebner one-year moratorium in debt
repayments while he agreed to raise funds by selling his
investments when market conditions favor. The move was aimed at
preventing him from incurring losses from the premature sale of
his investments.
The creditors, however, are reportedly upset by the secrecy of
Mr. Ebner's transaction. The group allegedly refused to comment
on its finances or plans as it argues that is a privately owned
company without obligation to provide information.
A continued slump in Swiss stocks, in particular Mr. Ebner's
major holdings in Credit Suisse, ABB and insurer Baloise, is seen
to pressure him to proceed with the sale which was postponed by
the moratorium agreement.
CREDIT SUISSE: Fitch Affirms Credit Suisse First Boston 2000-C1
---------------------------------------------------------------
Credit Suisse First Boston Mortgage Securities Corp., commercial
mortgage pass-through certificates, Series 2000-C1, $162.6
million class A-1, $677.5 million class A-2 and interest only
class X are affirmed at 'AAA' by Fitch. The following classes are
also affirmed: the $50.1 million class B at 'AA', the $44.5
million class C at 'A', the $15.3 million class D at 'A-', the
$29.1 million class E at 'BBB', the $13.9 million class F at
'BBB-', the $30.6 million class G at 'BB+', the $12.5 million
class H at 'BB', the $11.1 million class J at 'BB-', the $11.1
million class K at 'B+', the $9.7 million class L at 'B' and the
$8.4 million class M at 'B-'. Fitch does not rate the $15.3
million class N. The ratings affirmations follow Fitch's annual
review of the transaction, which closed in August of 2000.
The rating affirmations are the result of the high weighted
average debt service coverage ratio (DSCR) of the mortgage pool
and limited paydown of the certificates. CapMark Services, as
master servicer, collected year-end (YE) 2001 operating
statements for 97% of the pool by balance. The year-end 2001
weighted average DSCR for those loans is 1.98 times (x) up from
1.87x at issuance. Fitch's weighted average DSCR is based on
servicer provided net operating income (NOI).
In addition to the high weighted average DSCR, the transaction is
also diverse by loan size and property type. Currently the
transaction is collateralized by 211 commercial and multifamily
loans with a total collateral balance of $1.09 billion.
Significant property type concentrations include office (28%),
retail (21%), cooperative housing (12%), industrial (9%),
multifamily (8%) and hotel (8%) property types. Geographic
concentrations include New York (24%), California (12%),
Washington (9%), Texas (7%), and Florida (5%).
Fitch is concerned with 13 loans (8.9%) which have a year-end
2001 DSCR below 1.0x including the L'Enfant Plaza. The property,
located in Washington, D.C., lost a major tenant in 2001 and had
a year-end 2001 DSCR of 0.93x. The borrower has since found a new
tenant and the current occupancy is 92%. While Fitch does have
concerns within the pool, the current performance and credit
support was adequate to support the rating affirmations. Fitch
will continue to monitor the performance of this transaction, as
surveillance is ongoing.
Note:
Fitch Ratings recently changed the Outlook on Credit Suisse
Group's 'AA- 'Long-term rating to Negative from Stable. The
rating agency also changed the Outlook on the 'AA-' long-term
ratings of Credit Suisse Group's main banking subsidiary, Credit
Suisse to Negative from Stable. The same follows for Credit
Suisse First Boston's U.K. subsidiaries.
Fitch explains that changes in the performance of one Credit
Suisse group translate to the financial strength of the others
due to the degree of integration within the group.
CONTACT: Fitch Ratings
Noel Cain, 1-312-368-3134
Lauren Cerda, 1-312-606-2317
Matt Burkhard, 1-212-908-0540 (Media Relations)
CREDIT SUISSE: Touring Club Suisse Selects SEAGULL's LegaSuite
---------------------------------------------------------------
SEAGULL announced that Touring Club Suisse (TCS) has selected
SEAGULL's LegaSuite to modernize and Web-enable its membership
and travel service applications.
Created more than a century ago by cyclist fans of tourism, TCS
has always been committed to improving and developing services
for its members. TCS provides patrol services (emergency
repairs), assistance abroad and in Switzerland (ETI booklet),
insurance, travel agency services, and camping and tourism
information.
TCS supports more than 1,500,000 members and a network of 1,400
employees with SOCASS, the organization's mission-critical legacy
application for member management and administration of services.
Superior customer service is strategically important to TCS'
success, and the organization decided that improving the
usability of the application and providing GUI browser access for
remote employees would result in significant improvements in
responsiveness and service, and also provide the basis for new
innovation in support of new service offerings.
Using J Walk, a module of SEAGULL's LegaSuite legacy evolution
platform, TCS will deliver an intuitive browser interface,
realtime Web access and integration with desktop productivity
tools such as Word and Excel to the SOCASS applications.
"SOCASS renovation was one of our main priorities," said Patrick
Caron, TCS Computing Projects Manager. "Many Windows-like
functionalities are now in place, significantly simplifying the
use of SOCASS, improving our services and expanding our capacity
for innovation. Web access will also make it easier for us to
maintain the applications. By lowering the overall cost of
administration, we are able to focus our resources on delivering
first class service to our members."
===========================
U N I T E D K I N G D O M
===========================
ABERDEEN ASSET: Falling Markets and Investments Hit Shares
----------------------------------------------------------
The shares of Aberdeen Asset Management dropped another 18% to a
low of 38p on Monday, as the fund manager is steadily hit by
falling markets and failing investments as well. The shares have
lost about 90% of their value this year.
In a report of The Scotsman, the fund management company
acknowledges that the collapse in the value of its shares is also
attributed to its involvement with split capital investment
trusts.
The trusts Media & Income, Aberdeen High Income, Leveraged Income
Fund, and Aberdeen Preferred Income, which are managed by AAM
have, gone into receivership. The group was also in technical
default on one of its banking covenants.
When asked whether investors will be paid from the trusts, AAM
offered the possibility that they would not. AAM disclosed that
its split trusts repaid GBP800 million in bank debt over the
year.
Some 2,000 policyholders are currently signing up with lawyers to
demand compensation for investments in the split trusts. AAM,
however said, they can only be granted the payment if they can
prove they were mis-sold.
Analysts, meanwhile, worry that AAM may be fined heavily for its
role in the debacle as the Financial Services Authority
investigates possible mis-selling.
AAM also agrees that material for its Progressive Growth Unit
Trust may have had errors, admitting that the investment was
marketed as low risk while it had "some pretty severe falls." The
trust is now valued at GBP20 million, down from GBP70 million at
its peak.
In June, the company promised to offer a compensation scheme but
failed to do so. AAM is also expected to make up any shortfalls
on investment expectations by spring 2005.
Lack of confidence that the fund manager would be able to fund
the scheme is believed to have sent the share price down.
According to the company, in case the fund manager is wound up,
goes insolvent or taken over, the investment and unit trusts are
to continue to operate as individual companies.
ABERDEEN ASSET: Notification of Major Interests in Shares
---------------------------------------------------------
Name of company: Aberdeen Asset Management Plc
Name of shareholder having a major interest: Shell Pensions Trust
limited is the trustee of the shell contributory pension Fund,
and is a wholly owned subsidiary of the Shell Petroleum Company
Limited.
Name of the registered holder(s) and, if more than one holder,
the number of shares held by each of them: Hsbc Spms Nominee (Uk)
Limited Designation Spt
Class of security: ordinary shares of 10 pence
Date of transaction: October 2 2002
Date company informed: October 4 2002
Total holding following this notification: 5,649,600
Total percentage holding of issued class following this
notification: 3.22%
Name of contact and telephone number for queries:
John Brett
Tel: 01224 631999
Name and signature of authorised company official responsible for
making this notification: John Brett, Company Secretary
Date of notification: October 7 2002
BRITISH ENERGY: Releases Output Statement
-----------------------------------------
A summary of net output from all of British Energy's power
stations in September is given in the tables, together with
comparative data for the previous financial year:
http://bankrupt.com/misc/britishenergy2.pdf
Overview
The U.K. nuclear plant remains on track to achieve the revised
target of 63 TWh (plus or minus 1TWh) by 31st March 2003
announced in August.
The output figures for both AmerGen and Bruce Power remain in
line with the plan after allowing for the higher number of
planned outages in the current year.
PLANNED OUTAGES
U.K. Nuclear
a) A statutory outage continued at Dungeness B and another
started at Hinkley Point B.
b) An outage continued on one reactor at Dungeness B for
refuelling and routine work on plant systems. Refuelling outages
were carried out on one unit each at Hartlepool and Heysham 1.
c) Low load refuelling was carried out on both reactors at
Hunterston B and on one reactor at Heysham 2.
U.K. Other
a) One unit at Eggborough was on outage in connection with the
installation of flue lining as part of the FGD programme.
b) Another unit completed a statutory outage.
AmerGen
a) In line with plan, Oyster Creek's output was reduced ahead of
its refuelling outage.
Bruce Power
a) Unit 6 has completed its return to service
b) Unit 7 has started its planned outage
Unplanned Outages
U.K. Nuclear
a) Both units at Torness remain on outage for gas circulator
replacement and investigations continue as previously reported.
CONTACTS: Paul Heward
Tel: 01355 262201
(Investor Relations)
Website: http://www.british-energy.com/
CABLE AND WIRELESS: Director Shareholding
-----------------------------------------
The Company was notified on 7 October 2002 that on the same day
the following Directors purchased Ordinary Shares in the Company
at a price of 124.70 pence per share under the Cable & Wireless
Share Purchase Plan:
Graham Wallace - 100 Ordinary Shares
Adrian Chamberlain - 80 Ordinary Shares
Note:
As reported in Troubled Company Reporter-Europe's September
26,2002 edition, the U.K. telecommunications provider Cable and
Wireless scheduled an extraordinary meeting with employee
representatives for the next two to three weeks.
The said session triggered speculations that the company may be
planning to trim its workforce by thousands.
According to the Financial Times, one analyst predicted that the
cuts are likely to hit Cable and Wireless' loss-making data
services and web-hosting business, Global division, and would
affect 2,000 to 3,000 employees.
Cable & Wireless Global unit focuses on the demand for business
data and Internet services, especially in Europe, Japan and the
US.
In related news, Cable & Wireless also announced that it has
entered into a definitive agreement to transfer its U.S. retail
voice customer base to a wholly-owned subsidiary of Primus
Telecommunications Group, Inc. ("Primus") for an aggregate
maximum consideration of US$32
million in cash, payable over approximately two years.
The said agreement is still subject to approval by relevant
regulatory authorities in the U.S. and successful migration of
the customer base to Primus's network, all of which are expected
to occur by January 2003.
The disposal is part of Cable & Wireless' restructuring of its US
business, announced in its preliminary statement of results in
May 2002. This restructuring will enable the business to focus
fully on enterprise customers and the provision of internet
protocol and hosting services. Further details on the progress of
the restructuring will be included with the interim results in
November 2002.
Cable & Wireless will work with Primus to effect a rapid and
seamless migration of the customer base.
Bear, Stearns & Co. Inc. acted as Cable & Wireless' financial
advisor with respect to this transaction.
CONTACT: Investor Relations
Louise Breen
Tel: +44 (0)20 7315 4460
Caroline Stewart
Tel: +44 (0)20 7315 6225
Chris Tyler
Tel: +44 (0)7957 806 062
CLUBHAUS PLC: Disposes French Asset and Non-core U.K. Golf Club
---------------------------------------------------------------
Clubhaus PLC ('Clubhaus'), announces:
-The disposal of the business and assets of Montpensier Golf
Club, Vichy, France
-The disposal of the business and assets of Three Rivers Golf
Club, England
This announcement is in line with the Group strategy outlined in
the Interim Results announced on 28 June 2002, which stated that
non-core assets would be disposed of to reduce gearing and
improve the prospects for future growth and development of the
Company. Montpensier and Three Rivers Golf Clubs did not fall
within the core focus of the Group, which, following the
strategic review of the Group's facilities, will focus on the U.K.
Country Club format.
Montpensier Golf Club has been sold to Thorpelane Limited for a
total consideration of GBP0.5 million in cash, with the purchaser
assuming a further GBP0.5 million of liabilities. Proceeds from
the sales will be used to reduce Group bank borrowings.
In the nine months ended 30 September 2001, the loss after
interest but before tax attributable to the assets and business
being disposed of was GBP0.4 million from a turnover of GBP0.3
million. These numbers have been extracted from the audited
accounts of the company that owned and operated the club for the
nine months ended 30 September 2001. The gross book value of the
business and assets sold at 30 September 2001 was GBP0.75
million.
Three Rivers Golf Club has been sold to The Peachey Retirement
and Trust Scheme for a total consideration of GBP2.25 million in
cash. Proceeds from the sales will be used to reduce Group bank
borrowings.
In the nine months ended 30 September 2001, the profit after
interest but before tax attributable to the assets and business
being disposed of was GBP0.0 million from a turnover of GBP0.9
million. These numbers have been extracted from the audited
accounts of the company that owned and operated the clubs for the
nine months ended 30 September 2001. The gross book value of the
business and assets sold at 30 September 2001 was GBP2.4 million.
The remaining non-core asset disposals are expected to be
completed within the next few months.
CONTACT: John Hume, Chairman
Charlie Parker, Managing Director
Clubhaus PLC
Tel: 0870 240 8924
Capel Irwin
KBC Peel Hunt Limited
Tel: 0207 418 8900
Giles Sanderson/James Melville-Ross
Financial Dynamics
Tel: 0207 831 3113
CORUS GROUP: To Finish Sale of Aluminum Business to French Group
----------------------------------------------------------------
French aluminum group Pechiney is on the verge of concluding
purchase of the aluminum activities of Anglo-Dutch steel group
Corus, says Les Echos.
Corus itself is confident it would be able to strike a deal
before the end of the year. The operation is estimated at GBP600
million, less than the GBP 800 million to GBP900 million Corus
had hoped for.
Pechiney announced its offer in March. In an interview with
French daily Le Monde in June, Pechiney's aluminum production
chief Philippe Varin said Corus is a particular attractive
takeover target due to its "very interesting positions in
aluminum transformation for the aerospace industry."
Corus has annual aluminum production capacity of 244,000 tonnes,
half of which serves Corus's own needs and is shared between
three sites in the Netherlands, Germany and Canada, Reuters says.
Since its emergence in 1999 out of the merger of British Steel
and Hoovogens of the Netherlands, the company has struggled
mightily. The company is planning to cut 4,000 jobs in the next
two years.
INVENSYS PLC: Sells Drive Systems for $145 Million
--------------------------------------------------
Invensys plc, the international production technology and energy
management Group, announces that it has agreed to sell its Drive
Systems business to NewCo (Eastern) Ltd, a company formed by the
management team of Invensys Drive Systems and their investment
partner Compass Partners European Equity Fund, L.P., for a cash
consideration of US$145m. The sale proceeds will be used by
Invensys to continue to reduce its level of indebtedness.
Drive Systems is a leading global supplier of AC inverters, DC
drives, Servo and Vector controllers. For the twelve months
ending March 31, 2002, the business generated revenues of US$115m
and operating profit of US$20m. Net operating assets which are
the subject of the transaction are approximately US$40m. Goodwill
totals $US158m (of which US$31m is already written off to
reserves) and relates primarily to the acquisition of Eurotherm
plc in 1998.
The sale of Drive Systems is consistent with Invensys' previously
stated objectives to divest non-core assets as part of its
overall plan to improve capital strength and increase strategic
focus. The transaction is subject to customary regulatory
approvals and is expected to complete by the end of November
2002.
Rick Haythornthwaite, CEO of Invensys, said:
"Our original target for disposal proceeds was o1.5bn by the end
of our financial year. With this sale we have now exceeded our
target and reached a total of almost o1.6 billion, with Fasco
Motors still to sell. We are delighted at both the pace of
disposals and the prices achieved."
About Drive Systems
Drive Systems is a leading global supplier of AC inverters, DC
drives, Servo and Vector controllers and is headquartered in
Littlehampton, U.K. and has over 900 employees worldwide.
About Invensys plc
Invensys plc is a global leader in production technology and
energy management. The group helps customers improve their
performance and profitability using innovative services and
technologies and a deep understanding of their industries and
applications.
Invensys Production Management works closely with customers in
order to drive up performance of their production assets,
maximize their return on investments in production technologies
and remove cost and cash from their whole supply chain. The
division includes APV, Avantis, Baan, Eurotherm, Foxboro,
SIMSCI/Esscor, Triconex and Wonderware. These businesses address
process and batch industries -- including oil, gas and chemicals,
food, beverage and personal health care -- and the discrete and
hybrid manufacturing sectors.
Invensys Energy Management works with clients involved in the
supply, measurement and consumption of energy and water, to
reduce costs and waste and improve the efficiency, reliability
and security of power supply. The division includes Energy
Management Solutions, Appliance Controls, Climate Controls,
Global Services, Metering Systems, Powerware and Home Control
Systems. These businesses focus on markets connected with power
and energy infrastructure for industrial, commercial and
residential buildings.
The company also serves the specialised rail, wind-power and
electronic manufacturing (power components) markets through
Invensys Rail Systems, Hansen Transmissions and Lambda,
respectively, in its development division.
Invensys operates in more than 80 countries, with its
headquarters in London. For more information, visit
www.invensys.com.
KINGFISHER PLC: Notification of Major Interests in Shares
---------------------------------------------------------
Name of company:Kingfisher Plc
Name of shareholder having a major interest: Lehman Brothers
International (Europe)
Percentage of issued class: 4.36%
Class of security: ordinary shares of 13.75p each
Date of transaction: October 2 2002
Date company informed: October 4 2002
Total holding following this notification: 112,893,134 shares
Total percentage holding of issued class following this: 4.36%,
notification
Name of contact and telephone number for queries:
Julie Wilson
Tel: 020 7725 5853
Name of authorised company official responsible for making this
notification:
Julie wilson
Company secretarial assistant
Date of notification: October 7 2002
MARCONI PLC: Still Searching for New Chairman to Replace Bonham
---------------------------------------------------------------
Marconi has not yet found a replacement for chairman Derek Bonham
in time for its annual meeting in London in the second week of
October, The Scotsman observes.
Mr. Bonham was scheduled to step down from his post after
completion of the company's restructuring says earlier reports.
He is currently taking part in an international search for his
replacement.
Meanwhile, two other directors, Sir William Castell and Nigel
Stapleton, have been asked to stay on to complete the line-up of
directors until replacements are found.
The company has been trying to break off bankruptcy since it
started facing financial woes after sales collapsed forcing it to
fire thousands of staff. It has GBP4.3 billion of debt including
bank borrowings of about GBP2.2 billion, according to the
Independent.
At the end of April, the company said it had ring-fenced about
GBP850 million of its then GBP1.4 billion cash pile, which is
sitting in a safe bank account and which will go toward the
restructuring.
Marconi amassed its huge debt mountain when its former bosses
embarked on a multibillion-pound spending spree to turn GEC, a
traditional industrial conglomerate into Marconi, a New Economy
player.
In order to decrease its debt pile, the new management has been
selling off-core divisions that play no part in its core
activity.
Marconi owes it bondholders about GBP2 billion. Bondholders are
on an equal footing with the banks in terms of creditor status,
the Independent said.
PACE MICRO: Notifies Interests of Director John Howard Dyson
------------------------------------------------------------
Name of company: Pace Micro Technology plc
Name of director: John Howard Dyson
Number of shares / amount of stock acquired: 100,000
Percentage of issued class: 0.044%
Class of security: Ordinary 5p shares
Date of transaction: October 4 2002
Date company informed: October 4 2002
Total holding following this notification: 191,586
Total percentage holding of issued class following this
notification: 0.085%
Name of contact and telephone number for queries:
Anthony Dixon
Tel: 0113 298 3012
Name and signature of authorised company official responsible for
making this notification: Anthony Dixon Company Secretary
Date of Notification: October 7 2002
PACE MICRO: Chief Executive Officer Malcolm Miller Resigns
----------------------------------------------------------
Pace Micro Technology plc announces that Malcolm Miller, Chief
Executive Officer, will leave the Company on 1 January 2003 to
join Raymarine Group Limited as Chief Executive Officer.
A committee of Pace Micro Technology's non-executive Directors
led by Chairman Sir Michael Bett has commenced the search for a
successor and will consider internal and external candidates.
The Board would like to thank Malcolm Miller for his service over
the last five years and wishes him well for the future.
CONTACTS: John Dyson
Pace Micro Technology
Tel: 07774 795256 or 01344 784703
Helen Kettleborough
Pace Micro Technology
Tel: 07887 634083 or 01274 538005
PERNOD RICARD: Scottish Operation May Face Widespread Closure
-------------------------------------------------------------
French drinks group Pernod Ricard acknowledges the possibility
that its whisky distilleries in Scotland may face widespread
closures, says The Scotsman.
The group, which owns Paisley-based whisky maker Chivas Brothers
and counts Glenlivet and Jameson among its brands, was among the
whisky makers struggling with surplus stocks and capacity. It has
earlier put on hold five distilleries in Speyside.
Although Pernod managing director Richard Burrows refused to
reveal its excess amount of stock, it is understood that its
inventories recorded more than 12- to 15-year lead time which
distilleries require to produce premium blends.
The posting of surplus stocks was also followed by the unexpected
discovery of 83,000 cases of Chivas following its acquisition of
the drinks arm of Seagram in December last year. Seagram paid
GBP13 million in compensation to Pernod for the lapse.
Mr. Burrows disclosed that the Pernod will continue to run its
Scottish operations below capacity for the meantime.
The director foresess Chivas Brothers, a business which employs
about 800 staff in Scotland, to recover from poor sales in the
first half.
PPL THERAPEUTICS: Applies for Additional Listing of Shares
----------------------------------------------------------
Application has been made to the U.K. Listing Authority of the FSA,
and the London Stock Exchange for the listing of 128,509 Ordinary
Shares of 50p each to the Official List.
These shares are allotted following the subscription for shares
by Exeter Life Sciences pursuant to a confidential commercial
agreement.
Contact Information:
Geoff Cook
Chief Executive Officer
PPL Therapeutics plc
Telephone: 020 7796 4133 16
Website: www.ppl-therapeutics.com/
RAILTRACK PLC: Network Rail Completes Purchase of Bonds
-------------------------------------------------------
Network Rail Ltd, the company buying Railtrack's operating
business, has completed the purchase of Railtrack's bonds,
according to Reuters.
Railtrack is selling its troubled U.K. train track and station
unit, Railtrack Plc, to Network Rail Ltd. for a GBP500 million
deal that includes taking on its GBP7.1 billion debt.
The repurchase of the bonds is part of the takeover move. Network
Rail committed to paying more than the face value of the bonds:
116.512 pounds for every 100 pounds of Railtrack's 2006 bonds so
that it compensates for the loss of future interest payments of
investors.
Network Rail is an independent unlisted company that will not pay
a dividend to equity holders but will retain all profits made
from its operations. It is created after Railtrack went into
administration last year.
A high court has released Railtrack from administration with the
belief that the move would enhance the company's operation and
ability to pay debts.
TXU EUROPE: Fitch Downgrades Senior Unsecured Rating to BB
----------------------------------------------------------
Fitch Ratings downgraded the senior unsecured rating of TXU
Europe Ltd ('TXE') to BB from BBB-, and lowered the Short term
ratings to 'B' from 'F3' on Friday Oct. 4. The Rating Outlook is
Negative. TXE is an indirectly wholly owned subsidiary of TXU
corp. of Dallas, rated 'BBB'/'F2' with a Stable Rating Outlook.
Fitch will be holding a teleconference to discuss the rationale
behind the rating action. Isaac Xenitides, head of European
Energy at Fitch, will introduce the call and will be joined by
Richard Hunter and Karl Pfeil of Fitch's Global Power Group in
New York, as well as Gracie Ebadan Bola of Fitch's European
Energy Group in London. The call will begin tomorrow morning at
10 a.m. EDT (3 p.m., London/ Western European Time Zone) with a
presentation, followed by a question and answer session.
Callers from Europe should dial +44 (0)208 896 4300 quoting the
pass code '480843'. Callers from Canada and the US should dial +1
617 801 9702 quoting the access code 480843. A replay will be
available for 72 hours following the call on +44(0) 1296 618700
quoting the access number '775368' for Europe, and +1 (0) 617 801
6888 quoting '62728' for Canada and the US.
CONTACT: Fitch Ratings
Melanie Browne, +44 (0)207 417 6342
James Jockle, 212/908-0547 (Media Relations)
UNIQ PLC: Proposes to Dispose Dairy Crest for GBP86.5 Million
-------------------------------------------------------------
Uniq, the pan-European Chilled Convenience Food Group, has
conditionally agreed to dispose of its U.K.-based St. Ivel Spreads
business to Dairy Crest for a consideration of GBP 86.5 million
payable in cash on completion. The consideration is subject to
adjustment based on the actual working capital assumed by Dairy
Crest at Completion.
The Disposal:
- reinforces Uniq's strategic focus on the growing European
chilled
convenience foods sector.
- will achieve Uniq's planned disposals of St. Ivel Yogurts
and St. Ivel Spreads ahead of target and on a basis which is
earnings neutral.
- significantly enhances Uniq's financial position by
reducing the Group's debt to well below GBP 100 million.
The Disposal is subject to regulatory and Uniq shareholder
approval, in connection with which a Circular to Shareholders
will be posted shortly.
Commenting on the Disposal, Bill Ronald, Chief Executive, said:
'Last week Uniq issued a Trading Update which indicated that good
progress was being made in improving our business performance and
in growing our sales and profits. Now, with the announcement of
the St. Ivel Spreads disposal, we will be able to complete the
strategic re-focusing of the business more quickly than we had
expected and on a basis which is earnings neutral.
'When this transaction is completed, our net debt will be
significantly below the GBP 100 million target which we set in
June, providing us with the financial flexibility and focus for
the single-minded development of our core chilled convenience
foods business.
'In view of the positive developments thus far this year, we look
to the future with confidence.'
Proposed Disposal of St. Ivel Spreads to Dairy Crest for GBP 86.5
million
Introduction
The Board announces that Uniq, the pan-European Chilled
Convenience Food Group, has conditionally agreed to dispose of
its U.K.-based St. Ivel Spreads business to Dairy Crest for a
consideration of GBP 86.5 million payable in cash on completion.
The consideration is subject to an adjustment based on the actual
working capital assumed by Dairy Crest at Completion.
The Disposal is conditional on there being no reference by The
Office of Fair Trading to the Competition Commission. In view of
the size of the Disposal relative to the Group, Completion is
also conditional upon the approval of Shareholders. This
approval will be sought at an Extraordinary General Meeting to be
convened shortly. Completion will take place after all
conditions are satisfied, which is expected to be by mid-November
2002.
Background to and reasons for the Disposal
The Board's strategy is to continue its focus on the pan-European
chilled convenience foods sector.
Pursuant to this strategy, and following a review of the business
portfolio undertaken after the appointment of Bill Ronald as
Chief Executive, the Board announced in June 2002 its intention
to divest its St. Ivel Yogurts and St. Ivel Spreads businesses.
These divestments will enable the Group to focus its financial
and management resources on its continuing European operations
including, in the U.K., the Uniq Prepared Foods own label business,
which has recently experienced strong sales and profits growth.
Consistent with this, the Board announced the sale of the Shape
yogurt brand to Groupe Danone S.A. of
France for GBP 32.5 million on 15th August, 2002.
The sale of St. Ivel Spreads will enable the Group to complete
its intended focus in the U.K. The proceeds of the Disposal will
be used to reduce the Group's bank borrowings, which were GBP
156.7 million out of a total Group net debt of GBP 184.7 million
at 31st March, 2002.
Information on St. Ivel Spreads
St. Ivel Spreads is the second largest manufacturer and marketer
of branded yellow fat spreads by market share in the U.K. The
business has a portfolio of well-known brands giving it a
presence in each of the major product sectors of the U.K. spreads
market. St. Ivel Spreads' products are sold principally to U.K.
retail customers, but it also exports its products to a number of
countries.
The business' principal brands are Utterly Butterly, St. Ivel
Gold, Vitalite and Carapelli. Production is based at a facility
in Kirkby near Liverpool, which currently employs about 180
people.
In the year ended 31st March, 2002, St. Ivel Spreads generated an
operating profit of approximately GBP 12.6 million on turnover of
approximately GBP 75.2 million. Since 31st March, 2002, the
business has experienced some small declines in volume and profit
before marketing costs. The net assets of St. Ivel Spreads at
31st March, 2002 were GBP 19.6 million excluding goodwill of GBP
57.8 million previously written off.
Principal terms and conditions of the Disposal
Pursuant to the Disposal Agreement, Uniq and certain of its
subsidiaries have agreed to sell or to procure the sale of St.
Ivel Spreads including certain related intellectual property
rights owned by Uniq's subsidiary Johma Nederland B.V. to Dairy
Crest for a consideration of GBP 86.5 million payable in cash on
completion. The consideration is subject to an adjustment on a
GBP 1 for GBP 1 basis to reflect the actual position of those
items of working capital assumed
by the purchaser at Completion to the extent it is greater or
less than the estimated working capital. The Directors do not
expect this adjustment to be material.
Dairy Crest and Uniq may terminate the Disposal Agreement if any
matter occurs prior to Completion which would have given Dairy
Crest the right to make a warranty claim, or which would have
entitled Dairy Crest to make a warranty claim if the warranties
were to be repeated at Completion, and in each case the aggregate
amount of damages which Dairy Crest could reasonably expect to
recover would exceed GBP 7.5 million. In addition, in certain
limited circumstances, if Uniq fails to carry out its obligations
or if it does not comply with certain procedural requirements,
Dairy Crest may terminate the Disposal Agreement and be
reimbursed for its fees and expenses incurred in relation to the
Disposal up to a maximum amount of GBP 2 million.
Completion of the Disposal is conditional upon approval by
Shareholders at an Extraordinary General Meeting and The Office
of Fair Trading indicating that it does not intend to refer the
Disposal to the Competition Commission.
Financial effects of the Disposal
The proceeds of the Disposal will be used to reduce the
Continuing Group's bank borrowings. Based on the net book value
as at 31st March, 2002 of the assets being disposed of GBP 19.6
million and the write back of goodwill previously written off of
GBP 57.8 million, the Directors expect to report a small gain on
the Disposal before any related rationalisation costs.
The Directors expect that the combined disposals of Shape Yogurts
and St. Ivel Spreads will be earnings neutral and will result in
an overall small gain on disposal, having regard to expected
rationalisation costs of up to GBP 15 million relating to both
disposals.
Extraordinary General meeting
A Circular convening an Extraordinary General Meeting is expected
to be posted to Shareholders shortly setting out the Resolution
to be proposed at the meeting and further details of the
Disposal.
CONTACT: Bill Ronald
Chief Executive
Tel: 01753 276050
Martin Beer
Finance Director
Tel: 01753 276160
UNIQ PLC: Announces Holdings in Company
---------------------------------------
In accordance with the Companies Acts, Uniq plc received notice
on 7th October 2002 from Aberforth Limited Partnership IA and
Aberforth Limited Partnership IB that its joint holding in the
Company's ordinary 10p shares has now fallen to below 3% and is
therefore no longer notifiable.
WORLDCOM INC: Proposes Uniform Claims Settlement Procedures
-----------------------------------------------------------
Worldcom Inc., and its debtor-affiliates seek the Court's
authority to settle certain threatened or actual claims and
causes of action asserted by or asserted against their Chapter 11
estates pursuant to certain settlement procedures.
According to Marcia L. Goldstein, Esq., at Weil Gotshal & Manges
LLP, in New York, the Debtors' management team, with the
assistance of in-house and outside counsel, investigated,
evaluated and attempted to resolve claims or potential causes of
action asserted by or against the Debtors. Depending on the
specific facts and the risks involved in engaging in litigation
with respect to these claims, the Debtors would make appropriate
offers to settle these claims.
During the course of these Chapter 11 cases, Ms. Goldstein
believes that the Debtors will be required to liquidate numerous
claims asserted against them. As of the Petition Date, the
Debtors are party to over 1,000 lawsuits as plaintiffs and over
2,000 lawsuits as defendants. The Debtors have already asserted
and may assert various additional claims for recovery against
other parties postpetition. In many cases, engaging in
litigation over disputed claims will require the Debtors to
expend significant funds. When the Debtors, consistent with its
prepetition practices, evaluates the probabilities of success in
challenging or asserting claims against the potential cost of
litigating these claims, it often determines that a compromise
and settlement is appropriate.
Without a settlement procedure, Ms. Goldstein fears that the
Debtors would be required to seek specific Court approval for
each individual compromise and settlement. Given the number of
claims that the Debtors believe can be settled for relatively
small settlement amounts when compared to the overall operation
of its businesses, holding individual hearings, filing individual
pleadings, and sending notice of each proposed settlement to
every one of the numerous creditors and interested parties
entitled to receive notice in these cases would be an expensive,
cumbersome and highly inefficient way to resolve many of the
disputed claims.
Accordingly, the Debtors propose to implement certain guidelines
and procedures with respect to the compromise and settlement of
disputed Settlement Procedures Claims asserted both by and
against the Debtors. Ms. Goldstein explains that the Debtors'
estates will be spared the expense, delay and uncertainty that
otherwise would be associated with resolving Settlement
Procedures Claims, while preserving an oversight function for key
parties-in-interest.
The Debtors seek to implement a three-tier Settlement
Procedures, based on the proposed settlement amount agreed to by
the parties and the documented difference. The Documented
Difference is the difference between:
-- with respect to claims asserted against the Debtors, the
estimated value of the claim as determined in good faith by
the Debtors or, with respect to claims asserted by the
Debtors, the amount initially sought to be recovered, and
-- the proposed amount for which the Debtors are seeking to
settle the claim.
The terms of the settlement procedures are:
A. With Respect To Claims Asserted By Worldcom:
1. If the Documented Difference is less than $1,000,000, the
Debtors will be authorized to settle the claim without
prior approval of the Court or any other party-in-
interest.
2. If the Documented Difference is greater than or equal to
$1,000,000 but less than $5,000,000:
-- WorldCom will provide:
a. the U.S. Trustee,
b. the attorneys for the postpetition lenders, and
c. the attorneys for the Committee,
a summary of the terms of a proposed settlement.
-- A Settlement Summary should set forth:
a. the Settlement Amount,
b. the name of the parties to the settlement,
c. a summary of the dispute, including a statement of
the Debtors' Amount and the basis for the
controversy,
d. an explanation of why the settlement of the claim
is favorable to the Debtors, its estates, and its
creditors, and
e. a copy of any proposed settlement agreement.
-- If any of the Notification Parties object within 10
days after the date of transmittal of the Settlement
Summary, the Debtors, in their sole discretion, may:
a. seek to renegotiate the proposed settlement and may
submit a revised Settlement Summary in connection
therewith, or
b. file a motion with the Court pursuant to Bankruptcy
Rule 9019 requesting approval of the proposed
compromise and settlement.
-- In the absence of an objection to a proposed
settlement by the Notification Parties, the Debtors
will be deemed authorized, without further order of
the Court, to enter into an agreement to settle the
claim at issue, as provided in the Settlement Summary.
3. If the Documented Difference is greater than or equal to
$5,000,000, WorldCom will file a Rule 9019 Motion.
B. With Respect To Claims Asserted Against WorldCom:
1. If the Settlement Amount is less than $1,000,000, the
Debtors will be authorized to settle the claim without
prior approval of the Court or any other party-in-
interest.
2. If the Documented Difference is greater than or equal to
$1,000,000 but less than $5,000,000:
-- The Debtors will provide the Notification Parties a
Settlement Summary;
-- If any of the Notification Parties objects within 10
days after the date of transmittal of the Settlement
Summary, the Debtors, in its sole discretion, may:
a. seek to renegotiate the proposed settlement and may
submit a revised Settlement Summary, or
b. file a Rule 9019 Motion with the Court seeking
approval of the proposed settlement; and
-- In the absence of an objection to a proposed
settlement by the Notification Parties, the Debtors
will be deemed authorized, without further order of
the Court, to enter into an agreement to settle the
claim at issue, as provided in the Settlement Summary.
3. If the Documented Difference is greater than or equal to
$5,000,000, the Debtors will file a Rule 9019 Motion.
4. If the Settlement Amount with respect to any individual
proposed settlement is equal to or greater than
$10,000,000, the Debtors will file a Rule 9019 Motion.
WorldCom seeks the Court's authority to pay and to issue
customer credits on account of the settled claim, in the
ordinary course of operating its businesses, if the Settlement
Amount is $10,000 or less.
For the compromise or settlement of any claims by or against an
insider, the Debtors will be required to file a motion with the
Court requesting approval of the compromise and settlement
pursuant to Bankruptcy Rule 9019.
The Debtors will also file with the Court reports of all
settlements entered into. The Debtors will serve copies of
these reports on:
-- the U.S. Trustee,
-- the attorneys for the Debtors' postpetition lenders, and
-- the attorneys for the Committee. (Worldcom Bankruptcy News,
Issue No. 9; Bankruptcy Creditors' Service, Inc., 609/392-0900)
*************
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.
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