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/raid1/www/Hosts/bankrupt/TCREUR_Public/030109.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 Thursday, January 9, 2003, Vol. 4, No. 6 Headlines * B E L G I U M * LERNOUT: L&H NV Seeks Further Solicitation Exclusivity Extension * F R A N C E * FRANCE TELECOM: Regulator May Probe Legality of Bailout TITUS INTERACTIVE: Announces Results of General Meetings TITUS INTERACTIVE: OCEANE Is Bulk of Game Maker's Problem VIVENDI UNIVERSAL: Sells Hungarian Unit for Less Than EUR400 MM * G E R M A N Y * BAYER AG: Appoints Jorg Hellwig Managing Director of Bayer Faser DEUTSCHE TELEKOM: To Miss Target Price of Asset Disposal MOBILCOM AG: Founder Could Lose Stake in Company MOBILCOM AG: Internal Squabbles Could Block Rescue ROSCH AG: Equidyne Corp. Comments on Rosch Bankruptcy * I T A L Y * CIRIO FINANZIARA: Banks Call on President to Relinquish Seat * N E T H E R L A N D S * PHILIPS ELECTRONICS: Restructuring to Affect Thousands of Staff * N O R W A Y * PETROLEUM GEO-SERVICES: Fitch Downgrades Debt Rating to 'C' * P O L A N D * NETIA HOLDINGS Receives Claim Challenging Shareholder Resolution NETIA HOLDINGS Announces Costs of Issuing New Shares * R U S S I A * METROMEDIA INT'L: Continues to Explore Asset Sales to Raise Cash * S W E D E N * SONG NETWORKS: Convertible Loan Fully Guaranteed * S W I T Z E R L A N D * ABB LTD: Wins USD 35 Million Order for Substations in Syria * U N I T E D K I N G D O M * ABERDEEN ASSET: Plans Trade Sale for Property Arm - Analysts AORTECH INTERNATIONAL: Announces Change in Strategic Direction BAE SYSTEMS: Completes Sale of Land Platform Communications CORPORATE SERVICES: Appoints Mark Adams Chief Operating Officer JPMORGAN FLEMING: Net Assets Is US$161.7 Million Upon Liquidation IC NETWORKS: Parent Plans to Trim Employees at Loss-making Unit MARCONI PLC: Telecom Italia Awards 15 Million Frame Contract NRG ENERGY: Negotiates Restructuring of Debt at British Plant SILENTNIGHT HOLDINGS: Appoints Pedder Non-Executive Chairman ============= B E L G I U M ============= LERNOUT: L&H NV Seeks Further Solicitation Exclusivity Extension ---------------------------------------------------------------- As the only debtor remaining without a confirmed plan, Lernout & Hauspie Speech Products, NV, has asked Judge Wizmur to extend the exclusive period to solicit acceptances of its plan through March 31, 2003. The L&H Creditors' Committee may seek to terminate exclusivity at any time, by motion on 15 days' notice, and L&H NV will bear the burden of proving that "cause" exists for exclusivity to continue in response to any such motion. L&H NV Case Nearly Complete According to Luc A. Despins, Esq., Matthew S. Barr, Esq., and James C. Tecce, Esq., at Milbank Tweed Hadley & McCloy LLP, in New York, and Robert J. Dehney, Esq., Gregory W. Werkheiser, Esq., and Donna L. Harris, Esq., at Morris Nichols Arsht & Tunnell, in Wilmington, Delaware, L&H NV's Chapter 11 case nearly is complete. This Court already confirmed two Chapter 11 plans relating to L&H NV's affiliated debtors-in-possession, Dictaphone and L&H Holdings, in March 2002 and August 2002, and both entities have emerged from Chapter 11 protection. Solicitation and confirmation of the L&H NV Plan presents the final step in resolving L&H NV's Chapter 11 case and the cases of the entire L&H Group. L&H NV Plan Prepared For Solicitation L&H NV has made significant progress toward concluding its Chapter 11 case. Following extensive negotiations among the Curators and the L&H Creditors' Committee, L&H NV modified the original Joint Plan relating to the entire L&H Group into the L&H NV Plan filed on October 16, 2002. On October 18, 2002, the Court entered an order scheduling the Disclosure Statement Hearing for November 22, 2002. Pressing forward toward confirmation, L&H NV served notice of the Disclosure Statement Hearing on all known creditors of L&H NV in the United States and Belgium on October 22, 2002. Stonington Decision Suspends Process Indeed, at the end of October 2002, L&H NV anticipated emerging from Chapter 11 no later than early January 2003. However, the Court of Appeals for the Third Circuit's recent decision in Stonington reversed two earlier orders by this Court and the Delaware District Court enjoining the Stonington Entities from pursuing their securities fraud claims in the Belgian Case. The Stonington Decision also remanded the issue to this Court for additional consideration, and a hearing for this Court to consider these issues is scheduled for February 11, 2003. The ultimate treatment of the Stonington Entities' claims may have an impact on the L&H NV Plan and may effect materially any distributions to holders of allowed general unsecured claims in L&H NV's Chapter 11 case. L&H NV's Request For Extension Accordingly, L&H NV seeks an extension of the Exclusive Solicitation Period to provide sufficient time to modify the L&H NV Plan (if necessary) to reflect any additional direction from the Court (if any) relating to the Stonington Entities' claims. L&H NV assures the Court that it is not engaging in any negotiation tactics vis-a-vis its creditors and other parties- in-interest. L&H NV simply requires additional time to resolve certain issues implicated by the Stonington Decision. L&H NV reminds Judge Wizmur that throughout this Chapter 11 case, the members of the L&H Group have conferred continuously with the Creditors' Committees and their retained professionals and other parties-in-interest with respect to the plan development process for the Joint Plan, the Dictaphone Plan, the L&H Holdings Plan, and the L&H NV Plan. Automatic Extension The Court will convene a hearing on January 10, 2003 to consider L&H NV's request. By application of Del.Bankr.LR 9006-2, L&H NV's exclusive solicitation period is automatically extended through the conclusion of that hearing. (L&H/Dictaphone Bankruptcy News, Issue No. 34; Bankruptcy Creditors' Service, Inc., 609/392-0900) =========== F R A N C E =========== FRANCE TELECOM: Regulator May Probe Legality of Bailout ------------------------------------------------------- European Commission antitrust chief Mario Monti may look into the French government's rescue package for France Telecom SA to ascertain if the deal constitutes a state aid, a person close to the commission told the Financial Times. The source said the suspicion that the EUR9-billion (US$9.4 billion) loan may amount to a state backing warrants a launching of a formal investigation in February. "The circumstances surrounding this deal are highly unusual," the source said. The loan, which would be eventually converted into equity in the company as part of a rights issue, was provided through a public- sector holding company. A question, however, is raised concerning the company's status as a state-owned unit, which may not be subject to the same risk burden as a privatized company. "Without state backing for the lender, the risk provisions for the rescue package couldn't possibly be financed," the person close to the commission said. The source further revealed that the investigation could result in the state holding company having to pay a guarantee on the loan, or an additional interest-rate premium being added to the loan. Debt-ladden France Telecom, which refuses to waver in its claim that the rescue package does not break European Union rules, considers the planned investigation a "normal procedure." The French government provided the telecom company the EUR9- billion loan in December to keep the company solvent and help it cut debt in the medium term to EUR40 billion. But following its success in the bond market, analysts say the company might not even need the funding. According to them, France Telecom, which has EUR70 billion of debt load, could sell additional bonds to address any short-term financing needs before it stages a capital increase. TITUS INTERACTIVE: Announces Results of General Meetings -------------------------------------------------------- Titus Interactive announces the results of the second convening of the two General Meetings of Bond Holders, held December 30, 2002. 2.5% Convertible Bonds (Euroclear: 18059) owners have approved the proposed resolutions by a majority of the vote. 2% OCEANE (Euroclear: 18100) owners have not approved the proposed resolutions. The Extraordinary General Meeting of Shareholders convened, has approved the modification of the conversion ratio, required for the 2.5% Convertible Bond (Euroclear: 18059) modifications to take effect. If all 82,347 Convertible Bonds still in the public are converted, 658,776 new shares will be issued, corresponding to 6.55% of the company's capital, against 3.38% with the former parity. All the other resolutions proposed to the Ordinary and Extraordinary General Meetings of Shareholders have been approved. Herve and Eric Caen founded Titus Interactive in 1985. The company has quickly grown into one of the world's leading multi- platform software developers and publishers. Titus has developed a number of highly acclaimed games for both PC and console. With offices in Paris, Cannes, Los Angeles, London, Hamburg, Oslo and Tokyo, the company has established an extensive distribution network. Titus Interactive holds 72,5% of Interplay Entertainment and 100% of Virgin Interactive Entertainment. For the year 2000/2001 (closing on June 30, 2001), the group has reported consolidated net revenues of EUR 175 million. For the fiscal year 2001/2002 ending june 30, 2002, Titus Interactive Group reported group net revenue of EUR 122.7 million. Titus trades on the European exchange Euro NM under the following codes: TITP.LN, Euroclear: 5012. TITUS INTERACTIVE: Oceane Is Game Maker's Primary Problem --------------------------------------------------------- French video games maker Titus Interactive is facing trouble from OCEANE, a convertible bond that can sometimes be swapped into existing shares, analysts say. The reaction came as analysts disparage the increase in the company's share value after holders of some of Titus' convertible bonds approved the extension of a deadline for redeeming its 2.5% 2005 bonds. Bondholders also agreed to the suspension of payment of its coupon for three years. Titus shares climbed as much as 32%to EUR1.27 on Friday, extending Thursday's 68.42% gain. The shares lost 85% of their value in 2002. "The share reaction makes no sense, because the bulk of the debt problem is on the OCEANE," one analyst said. Bondholders have rejected proposals to modify its 2.0% OCEANE convertible bond. According to Reuters, analysts warn that the video games maker, which has net revenue of EUR122.7 million in June 2002, is an attractive target for "cash-rich predator" from the United States or Japan. E.T.C. analyst Xavier Courtois said, "They are in a very tight spot. They must find a solution, they must find a buyer." Titus is bearing an estimated EUR80 million debt load. In fiscal year 2001 and 2002 ended June 2002 it posted a net loss of 13.7 million. Speculations contend that Titus could unload its 72.5%-owned U.S. unit, Interplay. Last year, the company sold the flagship Shiny development studios of the unit to French rival Infogrammes. Company officials contacted by Reuters could not be immediately reached for comment. Titus, which was founded in 1985 by Herve and Eric Caen, also holds 100% of Virgin Interactive Entertainment. CONTAC: TITUS INTERACTIVE SA Parc de l'Esplanade 12, rue Enrico Fermi 77462 Lagny sur Marne Cedex. France Phone: (+33) 1 60 31 04 03 Fax: (+33) 1 60 31 07 08 Contact: Investor Relations E-mail: finance@titus.fr VIVENDI UNIVERSAL: Sells Hungarian Unit for Less Than EUR400 MM --------------------------------------------------------------- The American International Group and the British telecom investment company GMT Communications Partners Limited have agreed to jointly buy Vivendi Telecom Hungary for less than EUR400 million (US$416.5 million), reports say. Under the deal, AIG and GMT Communications will assume EUR315 million of the Hungarian subsidiary's debt. Vivendi had earlier wanted to sell Hungary's second largest telephone company for US$450 million, but settled instead for a lower price, a source told daily Nepszabadsag. The French media and entertainment group has invested around US$500 million in the telecom company. Media giant Vivendi Universal is selling assets to reduce EUR19 billion of debt load incurred under the management of former chairman Jean-Marie Messier. Vivendi Telecom Hungary serves 12% of the fixed line market in the region. ============= G E R M A N Y ============= BAYER AG: Appoints Jorg Hellwig Managing Director of Bayer Faser ---------------------------------------------------------------- Effective January 1, 2003, Jorg Hellwig (37) is Managing Director of Bayer Faser GmbH, Dormagen, Germany, a 100 percent subsidiary of Bayer Polymers. He will be responsible for Bayer's global fibers operations, including the Dorlastanr and Monofil business units as well as the management of Garnveredlungswerke Goch, a subsidiary of Bayer Faser GmbH. He succeeds Dr. Michael Radermacher, who is leaving the company at the end of 2002. Jorg Hellwig was born on May 3, 1965 in Krefeld, Germany, and joined Bayer AG in 1981 as a trainee at the Uerdingen site. He then held a number of different positions with increasing levels of responsibility and studied for a degree in business administration. He then worked in controlling, manufacturing, marketing, product management and supply chain management in the Inorganics Business Group in Germany and was instrumental in the divestment of Bayer's titanium dioxide business to the Kerr McGee Corporation. In 1998 he transferred to sales and marketing for dyes and pigments in the Coatings and Colorants Division at Bayer Corporation, U.S.A. A year later Jorg Hellwig set up the Imperial Color Group, where he was Managing Director. A period as group manager for inorganic pigments for the construction and coatings industry in the Nafta region in 2001 was followed by appointment as Product Manager for polyester at Bayer Polymers Americas. J"rg Hellwig was actively involved in Bayer's acquisition of Ruco/Sybron and the consolidation of production capacities in the United States. DEUTSCHE TELEKOM: To Miss Target Price of Asset Disposal -------------------------------------------------------- Deutsche Telekom will not be able to achieve its target of raising EUR2.3 billion (US$2.1 billion to US$2.4 billion) from its asset disposal program, says the Financial Times. According to people close to the company, a consortium of Apax Partners, Providence Equity Partners and Goldman Sachs Private Equity is expected to present an offer of only EUR1.6 to EUR1.9 billion for the assets, which include six regional cable operators. The members of the consortium have each pledged to provide a third of the funds for the acquisition, although sources believe that financing for the bid has not been placed yet. The consortium intends to start exclusive talks in the coming weeks, people familiar with the process revealed. Finance Director Kai-Uwe Ricke reportedly prefers a variable payment scheme to be exercised over two to three years based on the cable business' performance. The strategy could raise the value of the transaction to about EUR2.1 billion, which is within the range of the target in the company's debt reduction program. The German telecommunications group orchestrated one of its largest disposals for the year to reduce debts from EUR64 billion to a maximum of EUR52.3 billion. It aims to sell assets worth between EUR6.2 billion and EUR8.5 billion within the 15 months from last September to the end of 2003. According to the report, should the final price come below EUR2 billion, Deutsche Telecom would have to make fresh disposals or capital expenditure cuts. Hicks Muse Tate & Furst, a competing bidder, remains included in the auction for now. CONTACT: DEUTSCHE TELEKOM Friedrich-Ebert-Allee 140 53113 Bonn, Germany Phone: +49-228-181-0 Fax: +49-228-181-8872 Home Page: http://www.telekom.de Contact: Hans-Dietrich Winkhaus, Chairman, Supervisory Board Kai-Uwe Ricke, Chairman, Management Board and CEO APAX PARTNERS, INC. 445 Park Ave., 11th Fl. New York, NY 10022 Phone: 212-753-6300 Fax: 212-319-6155 Home Page: http://www.apax.com Contact: Sir Ronald Cohen, Chairman Evelyn Pellicone, Director of Finance GOLDMAN SACHS 85 Broad St. New York, NY 10004 Phone: 212-902-1000 Fax: 212-902-3000 Home Page: http://www.gs.com Contact: Henry M. Paulson Jr., Chairman and CEO John L. Weinberg, Chairman of the Management Committee PROVIDENCE EQUITY PARTNERS 50 Kennedy Plaza, 18th Floor Providence RI, 02903 Phone: (401) 751-1700 Fax: (401) 751-1790 Home Page: http://www.provequity.com/contact.html E-mail: contact@provequity.com MOBILCOM AG: Founder Could Lose Stake in Company ------------------------------------------------ MobilCom AG founder Gerhard Schmid and his wife could lose some of their stake in the company if they do not pay money they owe the German telecommunications group. As a stipulation of the EUR7.6 billion bailout of MobilCom last year, the trustee overseeing a 50% stake for the couple could sell an 8% stake held by Millenium GmbH, a MobilCom spokesman told the Wall Street Journal. The stake is worth EUR18 million. But Mr. Schmid could preempt such move if repays EUR71 million (US$74 million) by March 31, the spokesman said. Gerhard Schmid's shares were transferred to a trustee in November after much tousling with the former CEO. His agreement opened the way for France Telecom and its banks to finalize the detailed terms of the German company's restructuring. Deutsche Bank and Merrill Lynch are joint financial advisors to MobilCom AG in relation to this transaction. MobilCom is cutting jobs, putting development of third-generation wireless services on ice and restructuring its main mobile services business in a bid to return to profit. CONTACT: MOBILCOM AG HollerstarBe 126 P.O. Box 520 24753 Rendsburg-Buedelsdorf Fax: +49-43-31-69-28-26 Phone: +49-43-31-69-11-73 Contact: Dr. Thorsten Grenz, Chairman of the Board MILLENIUM GMBH 38120 Braunschweig Madamenweg 77 Phone: 0531 284 2170 Fax: 0531 284 2171 MOBILCOM AG: Internal Squabbles Could Block Rescue -------------------------------------------------- Internal squabbles in MobilCom could scuttle the rescue deal between the company's major shareholder France Telecom and several creditor banks, according to German weekly Welt am Sonntag. Chief Executive Thorsten Grenz was reappointed CEO on the board's last meeting in December as stipulated by the rescue package, but some members of the supervisory board reportedly still wanted to vote for a new CEO. The bailout plan wants Mr. Grenz to remain CEO during the restructuring phase, and Dieter Vogel, who was the German government's chief negotiator in the talks, to be the head of the company's supervisory board. Shareholders of MobilCom are scheduled to meet January 27 for an extraordinary meeting to vote on France Telecom's EUR7-billion bailout. Shareholder approval is necessary for the rescue plan that was agreed to in November. A spokesman for MobilCom declined to comment on the report. ROSCH AG: Equidyne Corp. Comments on Rosch Bankruptcy ----------------------------------------------------- Equidyne Corp. (AMEX:IJX) announced Tuesday that Rosch AG Medizintechnik, a former subsidiary, has filed for bankruptcy at the court of Charlottenburg in Berlin on grounds of illiquidity. During fiscal 2002, Equidyne earned revenues of $265,000 through an agreement with Rosch, involving a licensing arrangement with a global pharmaceutical company for the worldwide use of the needle-free Injex System for human growth hormone treatment. Commenting on the bankruptcy filing of Rosch, Equidyne's CEO, Marcus Rowan, stated, "Rosch's bankruptcy filing represents another in a string of set backs for the needle-free industry. Unlike Equidyne, which has aggressively reduced its operating overhead and focused on capital preservation while concentrating on strategic licensing or sale of its needle-free technology, Rosch failed to take the necessary actions to stem its losses or secure additional financing. Furthermore, the judgment of our Board in rejecting Rosch's merger proposal in August 2002 due to Rosch's apparent inability to continue as a going concern was appropriate and clearly in the best interests of our shareholders. We are monitoring Rosch's bankruptcy proceedings to see if there are any opportunities to enhance Equidyne's strategic position. Equidyne remains committed to continuing to seek licensing or sales opportunities for the company's technology while exploring additional business opportunities for the company." About the Company: Equidyne Corp.(http://www.equidyne.com),through Equidyne Systems Inc., its wholly-owned subsidiary based in San Diego, is working to capitalize on the growing market for needle-free drug delivery systems for subcutaneous injections. The INJEX needle-free injector is a compact, uncomplicated device that delivers a virtually painless injection through the skin in a fraction of a second, and eliminates needle stick and disposal problems. The INJEX System is a comfortable, economical alternative to delivering medications using conventional needle injections. CONTACT: EQUIDYNE CORP. Jeffery Weinress, Chief Financial Officer Phone: 858/451-7001 ========= I T A L Y ========= CIRIO FINANZIARA: Banks Call on President to Relinquish Seat ------------------------------------------------------------ Banks who rescued troubled canned food group Cirio are now waiting for the response of the company's boss to an earlier call that he resign in exchange for the bailout. "It is for Cragnotti to respond to this opening from the banks with a generous gesture that will allow a speedy resolution to this crisis," says Italian Agriculture Minister Gianni Alemanno. The minister confirmed on Saturday that banks had granted the group EUR20 million. Cirio sought the emergency bridge loan after defaulting on about EUR1 billion of bonds in November. Banks agreed on Friday to the loan for Lazio but failed to strike a deal with Cirio. The banks insisted that Sergio Cragnotti resign before they provide the cash. According to Reuters, Mr. Cragnotti stepped down as president of the cash-strapped soccer team Lazio, but remained in the seat of Cirio, the controller of the club. Cirio has net debt of EUR691.5 million at the end of September. The company's nine-month EBITDA is EUR60.8 million. The company's advisors are Livolsi & Partners. CONTACT: CIRIO Phone: ++39 06 4145700 Fax: ++39 06 4145729 Home Page: http://www.cirio.it ===================== N E T H E R L A N D S ===================== PHILIPS ELECTRONICS: Restructuring to Affect Thousands of Staff --------------------------------------------------------------- The ongoing restructuring of electronics company, Philips Electronics, is expected to affect "several thousand" of the group's 184,000 employees, says the Financial Times. The displacements are on top of the 35,000 cuts Europe's largest consumer electronics company has undertaken in 20 months. President and chief executive Gerard Kelisterlee revealed that the human resources, IT and accounting, will be the main areas affected in the group's overhaul of its back-office functions. Without specifying the exact number of likely redundancies, Mr. Kelisterlee said, "There is a huge amount of work for the organisation and it is going to create major change. Globally this is going to affect several thousand people. They may lose their job[s], move to another location or move to another job." As part of Mr. Kleisterlee's policy to save costs in the assembly of electronics products in May 2001, operations will be move to new owners or transfer to factories in east Asia, central America and eastern Europe where labor costs are lower, the report says. Mr. Kleisterlee rules out any turnaround in the semiconductor market this year saying "There is no driver for a market recovery." As for his company, he said, "At least from a configuration point of view the company is pretty close to where we want to be, but in terms of implementation a lot still needs to happen." Philips' loss-making U.S. consumer electronics division has met intermediate targets. It expects to return to profit in the fourth quarter of 2002. =========== N O R W A Y =========== PETROLEUM GEO-SERVICES: Fitch Downgrades Debt Rating to 'C' ----------------------------------------------------------- Fitch Ratings has downgraded Petroleum Geo-Services ASA (PGO) senior unsecured debt rating to 'C' from 'CCC' and downgraded PGO's trust preferred securities to 'C' from 'CCC-'. The ratings have been placed on Ratings Watch Negative. The downgrade of PGO's ratings comes on the heels of the company's recent announcement that it will use the 30-day grace period for payment of interest due December 30, 2002 related to PGO's 6 5/8% senior notes due 2008 and its 7 1/8% senior notes due 2028. Failure to make the payment within the 30-day grace period will be considered to be an event of default, and the rating will be lowered to 'D'. Should the coupon payment default be cured in the grace period, a new rating will be assigned, but reflective of the just cured default. PGO also announced that it is deferring distribution payments on the preferred securities issued by its wholly owned trust subsidiary PGS Trust I. The deferral is made in accordance with instrument covenants and the deferral period may extend for five years. Within this five year deferral period, Fitch Ratings does not consider nonpayment an event of default. Trust preferreds, however, are debt and therefore upon expiration of the deferral time period, nonpayment would result in a 'D' category rating. Similarly, upon a bankruptcy filing such ratings would go to 'D'. The ratings have been placed on Rating Watch Negative reflecting the probability of PGO not making the previously mentioned interest payment within the grace period, thereby resulting in default. PGO is a technologically focused oilfield service company principally involved in two businesses: geophysical seismic services and production services. PGO acquires, processes, manages and markets 3D, time-lapse and multicomponent seismic data. This data is used by oil and gas companies in exploration for new reserves, development of existing reservoirs and management of producing oil and gas fields. In its production services business PGO own and operates four FPSOs and operates numerous offshore production facilities for oil and gas companies to produce from offshore fields more cost effectively. CONTACT: FITCH RATINGS Patrick McGeever Phone: 312/368-3124 (Chicago) PETROLEUM GEO-SERVICES PGS House Strandveien 4 1366 Lysaker, Norway Phone: +47-67-52-66-00 Fax: +47-67-53-68-83 Home Page: http://www.pgs.com Contact: Jens Ulltveit-Moe, Chairman Svein Rennemo, Chief Executive Officer Knut Oversjoen, Chief Financial Officer =========== P O L A N D =========== NETIA HOLDINGS Receives Claim Challenging Shareholder Resolution ---------------------------------------------------------------- Netia Holdings S.A. (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services (in terms of value of generated revenues), announced Tuesday that it received a copy of the claim filed by a minority shareholder, referred to previously in Netia's press release dated August 2, 2002, alleging that the distribution of the warrants to be issued by Netia under the financial restructuring is harmful to the claimant. In particular, the suit is requesting that sections 10,11 and 13 of resolution number 2 adopted at the General Meeting of Shareholders on April 4, 2002 be invalidated. Netia's Management Board believes the claim to be unsubstantiated and expects to petition for its dismissal. A copy of resolution number 2 adopted at the April 4, 2002 General Meeting of Shareholders is available on the Company's website at www.netia.pl. CONTACT: NETIA HOLDINGS Warsaw Anna Kuchnio (IR) Phone: +48-22-330-2061 or Taylor Rafferty, London Alexandra Jones Phone: +44-(0)20-7936-0400 or Taylor Rafferty, New York Jeff Zelkowitz Phone: 212/889-4350 NETIA HOLDINGS Announces Costs of Issuing New Shares ---------------------------------------------------- Netia Holdings S.A.(WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services (in terms of value of generated revenues), announced Tuesday that the estimated cost of issuing its new shares (series H, J and K) in connection with Netia's on-going restructuring amount as of Tuesday to approximately PLN 67 million (US$ 17.6 million). The issuance costs include the costs of preparing and executing the offering in the approximate amount of PLN 55 million (US$ 14.5 million), the costs of preparing the Polish prospectus in the approximate amount of PLN 8 million (US$ 2.1 million) and other costs in the approximate amount of PLN 4 million (US$ 1.0 million). CONTACT: Netia Anna Kuchnio, (IR) Phone: +48-22-330-2061 =========== R U S S I A =========== METROMEDIA INT'L: Continues to Explore Asset Sales to Raise Cash ---------------------------------------------------------------- Metromedia International Group, Inc., (AMEX:MMG), the owner of various interests in communications and media businesses in Eastern Europe, the Commonwealth of Independent States and other emerging markets, reported operating results for the third quarter ended September 30, 2002. For the three months ended September 30, 2002, the Company reported a net loss attributable to common stockholders of $48.3 million on consolidated revenues of $24.4 million. This compares to a net loss attributable to common stockholders of $35.7 million on consolidated revenues of $30.2 million for the three months ended September 30, 2001. For the nine months ended September 30, 2002, the Company reported a net loss attributable to common stockholders of $105.0 million on consolidated revenues of $79.6 million. This compares to a net loss attributable to common stockholders of $92.0 million on consolidated revenues of $87.8 million for the nine months ended September 30, 2001. Included in the nine months ended September 30, 2002 financial results is a transitional impairment charge of $13.6 million related to the valuation of Snapper goodwill as of January 1, 2002. Pursuant to the accounting guidance of Statement of Financial Accounting Standards No. 144 "Accounting for the Impairment of Long-Lived Assets", the Company's presentation of the financial results of its Snapper, Inc., ALTEL, Yellow Pages and Metromedia China Corporation businesses are reflected as discontinued business components. The 2001 results (including discontinued components) included goodwill amortization of $4.0 million, or $0.04 per share for the three months ended September 30, 2001 and $12.4 million, or $0.13 per share for the nine months ended September 30, 2001, which is excluded in the 2002 financial results due to the adoption of SFAS No. 142 "Goodwill and Intangible Assets". As a result, on a pro forma basis, adjusted to reflect the adoption of SFAS No. 142 effective January 1, 2001, net loss per share would have been $(0.34) and $(0.85) for the three and nine months ended September 30, 2001, respectively. Liquidity Issues and Restructuring Update The Company had corporate cash of $11.9 million and $9.8 million as of September 30, 2002 and October 31, 2002, respectively. The $9.8 million of cash as of October 31, 2002, reflects the cash held at the headquarters level subsequent to the Company's $11.2 million interest payment, on October 29, 2002, on its 10-1/2 % Senior Discount Notes due 2007. The interest was originally due to be paid on September 30, 2002; however, the Company deferred the interest payment until such time that it was able to accumulate sufficient cash at the headquarters level to remit the payment. Based on the Company's current cash balances and projected internally generated funds, the Company does not believe that it will be able to fund its operating, investing and financing cash flows during the next twelve months, without additional asset sales. In addition, the Company is required to make another semi-annual interest payment of $11.1 million on March 30, 2003 on its 10-1/2 % Senior Discount Notes. As a result, there is substantial doubt about the Company's ability to continue as a going concern. The Company has consummated certain asset sales, continues to explore possible asset sales to raise additional cash and has been attempting to maximize cash repatriations by its business ventures to the Company. Snapper As previously announced, on November 27, 2002, the Company completed the sale of substantially all the assets and certain liabilities of Snapper, Inc. to Simplicity Manufacturing. Snapper manufactures premium-priced power lawnmowers, garden tillers, snow throwers and related parts and accessories. The Company has recorded an estimated loss on disposal of $7.1 million during the three months ended September 30, 2002, principally related to a write down of long-lived assets of $2.9 million and $4.2 million of estimated severance and disposal costs.. As previously discussed, the Company recorded a transitional impairment loss, of $13.6 million, by applying the provisions of SFAS No. 142 "Goodwill and Other Intangible Assets" as of January 1, 2002. Other Asset Sales The Company is continuing to pursue the possible sale of its telephony and other businesses, including the Cable TV and Radio operations. Noteholder Discussions The Company has also held periodic discussions with representatives of holders of its Senior Discount Notes in an attempt to reach agreement on a restructuring of its indebtedness in conjunction with any proposed asset sales or restructuring alternatives. To date, the representatives of the holders of its Senior Discount Notes and the Company have not reached any agreement on terms of a restructuring. The Company cannot make any assurance that it will be successful in raising additional cash through asset sales or through cash repatriations from its business ventures, nor can it make any assurance regarding the successful restructuring of its indebtedness. If the Company were not able to resolve its liquidity issues, the Company would have to resort to certain other measures, including ultimately seeking bankruptcy protection. The Company is no longer providing "Combined Basis" financial results of its business operations. Accordingly, in order to provide additional insight into the Company's business operations, the Company is including the following information regarding the operating results of the more significant business ventures in its Communications Group. Operating results for consolidated business ventures do not include the effects of pushdown accounting for goodwill and intangible amortization. Operating results for business ventures accounted for on the equity method of accounting include the amortization of goodwill and license fees that are included as part of the Company's related investments. PeterStar Consolidated Business Venture PeterStar, in which the Communications Group owns a 71% indirect interest, operates a fully digital, city-wide fiber-optic telecommunications network in St. Petersburg, Russia. PeterStar provides integrated, high quality, telecommunications services with modern digital transmission switching and transmission equipment, including local, national and international long distance, data and Internet access and value-added services, to businesses in St. Petersburg. PeterStar revenues increased for the three months ended September 30, 2002 compared to the same period in 2001 due to growth in the underlying business and residential services. PeterStar experienced strong growth of its subscriber base as a result of its aggressive sales effort and the general improvement of economic conditions in St. Petersburg. In comparison with the third quarter of 2001, PeterStar has had a shift of its product mix to data services and rapidly developing dial-up Internet access. Gross margins increased in 2002 over 2001 due to the increase in revenue and certain cost savings from channel and long distance providers, which compensated for the downward rate pressure from competition. The increase in SG&A compared to second quarter 2001 is mainly due to management fees and administrative costs. PeterStar revenues for the nine months ended September 30, 2002 increased compared to the same period last year due to growth in the underlying business and residential services. The revenue increase also reflected the expected loss of mobile traffic revenues to a competitor in late 2000 and early 2001. First quarter 2001 revenues included approximately $0.4 million of mobile traffic revenue that was in the process of switching over to the competitor. Gross margins increased in 2002 over 2001 due to the increase in revenue and certain cost savings from channel and long distance providers, which compensated for the downward rate pressure from competition. The increase in SG&A is principally due to higher administrative costs offset by lower management fees. Comstar Equity Business Venture Comstar, in which the Communications Group owns a 50% interest, operates a fully digital, fiber-optic telecommunications network in Moscow, Russia. Comstar provides integrated, high quality, digital telecommunications services with modern transmission equipment, including local, national and international long distance and value-added services, to businesses in Moscow. Comstar revenues decreased for the three months ended June 30, 2002 in comparison to the same period last year. Revenues from wholesale traffic and international/domestic long distance calls declined significantly, due to a continuing decline in unit prices, and these revenue declines were offset by increases in data services and line rentals. Gross margin improved due to product mix. Loss of wholesale traffic, with minimal margin, is being gradually replaced with higher margin data services and line rental revenues. SG&A expenses increased slightly due to higher administrative costs. Revenues for the nine months ended September 30, 2002 decreased by 7.3% as compared to the prior year. Revenues from wholesale traffic and international/domestic long distance calls declined significantly, due to a continuing decline in unit prices, and these revenue declines were offset by increases in data services and line rentals. Gross margin improved due to product mix. SG&A expenses decreased in 2002 due to savings in advertising and marketing, salaries and wages and security expenses. The Company recorded a non-cash charge of $25.8 million for the writedown of the Company's investment in Comstar. It was determined that there was an impairment that was other than temporary. In accordance with the provisions of APB Opinion No. 18, the Company recorded an impairment against the license as part of the Company's investment in Comstar during the three months ended September 30, 2002. Magticom Equity Business Venture Magticom, in which the Communications Group owns a 35% indirect interest, operates and markets mobile voice communication services to private and commercial users nationwide in the Republic of Georgia. Magticom's network operates and offers services using GSM standards utilizing both the 900 MHz and 1800 MHz spectrum range. Magticom revenues increased in the three and nine month periods ended September 30, 2002 compared to the same periods in the prior year due to strong growth in subscribers. Magticom is currently the market leader in Georgia having the highest subscriber count as well as the largest country coverage area estimated at 87% coverage and 73% market share. Gross margins for the nine months ended September 30, 2002 increased by 25.8%, compared to the same period in the prior year due to the strong sales growth and the Company's ability to leverage the fixed costs of operating the network. Major fixed expenses are rental and maintenance of the base stations, a portion of the local interconnect and third party network support. SG&A decreased by $0.2 million for the nine months ended September 30, 2002 compared to the same period in the prior year due to a reduction of one time sales and marketing expenses that were incurred in the prior year. No Conference Call The Company has decided not to have a conference call associated with the release of its third quarter 2002 financial results. Management concluded that a conference call was not essential at this stage due to the pressing business issues in which the executive officers are engaged associated with the Company's overall strategy to improve the liquidity and the capital structure of the Company. Metromedia International Group, Inc., is a global communications and media company. Through its wholly owned subsidiaries and its business ventures, the Company owns and operates communications and media businesses in Eastern Europe, the Commonwealth of Independent States and other emerging markets. These include a variety of telephony businesses including cellular operators, providers of local, long distance and international services over fiber-optic and satellite-based networks, international toll calling, fixed wireless local loop, wireless and wired cable television networks and broadband networks and FM radio stations. =========== S W E D E N =========== SONG NETWORKS: Convertible Loan Fully Guaranteed ------------------------------------------------ Song Networks Holding AB (Stockholmsborsen: SONW) announces that the financial restructuring is developing according to plan. The convertible loan of SEK 82.9 million in the ongoing issuance is now, in addition to the previously guaranteed and ongoing issuance of shares, fully guaranteed. A consortium led by Ohman Fondkommission is providing the guarantee. About Song Networks, formerly Tele1 Europe, (Stockholmsborsen: SONW) Song Networks is a data and telecommunications operator with activities in Sweden, Finland, Norway and Denmark. The Company's business concept is to offer the best broadband solution for data communication, Internet and voice to businesses in the Nordic region. The Company has built local access networks in the largest cities in the Nordic region. The Company was founded in 1995 in Sweden and have approximately 975 employees per September 30. The head office is located in Stockholm and there are an additional 34 offices located in the Nordic region. CONTACT: SONG NETWORKS HOLDING AB Home Page: http://www.songnetworks.net Tomas Franz,n, Chief Executive Officer Phone: +46 8 5631 0111 Mobile: +46 701 810 111 E-mail: tomas.franzen@songnetworks.net ===================== S W I T Z E R L A N D ===================== ABB LTD: Wins USD 35 Million Order for Substations in Syria ----------------------------------------------------------- ABB, the leading power and automation technology group, said Tuesday it has won a US$ 35 million contract in Syria to engineer and build six high-voltage substations to upgrade the country's transmission network. The contract, signed with the Public Establishment of Electricity for Generation and Transmission (PEEGT), Syria's power generation and transmission utility, is for substations in Dera, Al-Fayha, Bebila, Telhamis, North Aleppo and Sarakeb. The substations will play an important role in improving power supply to these towns and strengthening Syria's power network. "ABB is in a good position to help Syria meet its growing power needs," said Peter Smits, head of ABB's Power Technologies division. "Our global network of operations enables us to deliver high-end technology in a fast and efficient manner." The scope of the project includes designing, procuring, manufacturing and supplying the equipment for six 230/66/20kV substations. It is the largest-ever export order for ABB India. ABB will supply power transformers, instrument transformers, outdoor circuit breakers, medium-voltage switchgear a nd control and relay panels from its manufacturing facilities at Vadodara, Nashik and Bangalore. The project is being financed by the European Investment Bank and is scheduled for completion in two years. This is ABB's second major substation order in Syria in the past year. In December 2001, ABB won a US$ 17 million order from PEEGT to improve the power supply in the industrial areas of Aleppo, Homs and Damascus. ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in more than 100 countries and employs about 146,000 people. =========================== U N I T E D K I N G D O M =========================== ABERDEEN ASSET: Plans Trade Sale for Property Arm - Analysts ------------------------------------------------------------ Aberdeen Asset Management is selling its GBP6-billion property arm instead of floating it before the end of the first quarter as previously intended, City analysts say. The company's shares, which lost more than 80% of their value last year, went more than 6% higher Tuesday. According to The Scotsman, one investor said: "Property is the only shop in town for most investment managers at the moment. Given the state of the London market at the moment, a trade sale must be looking very appealing - they could probably get a good price too." The property arm had reportedly attracted up to 25 bidders, whose runners include investment firm Schroders, Edinburgh finance house ISIS, Standard Life and several other big insurance firms. The unit is estimated to fetch the group between GBP100 million and GBP130 million. City sources also predict further asset sales in the short term basing on the disclosure of Chief Executive Martin Gilbert that the group would unload non-core units in addition to the property business to reduce debt burden and boost its balance sheet. Observers expect parts of the group's retail asset management business, which manages about GBP6 billion out of the firm's total GBP23.7 billion in funds, would be included in the sell- off. Aberdeen Asset Management declined to comment on the issue. CONTACT: ABERDEEN ASSET MANAGEMENT One Albyn Place Aberdeen AB10 1YG United Kingdom Phone: (01224) 631999 Fax: (01224) 647010 E-mail : customer.services@aberdeen-asset.com Contact: MJ Gilber, Executive Director WJ Rattray, Executive Director SCRODERS Julian Samways, Group Head of Corporate Communications Phone: +44 (0) 20 7658 6166 E-mail: julian.samways@schroders.com Charlotte Rose, Corporate Communications Manager Phone: +44 (0) 20 7658 3457 E-mail: charlotte.rose@schroders.com STANDARD LIFE 30 Lothian Rd. Edinburgh EH1 2DH, United Kingdom Phone: +44-131-225-2552 Fax: +44-131-220-1534 Home Page: http://www.standardlife.com AORTECH INTERNATIONAL: Announces Change in Strategic Direction -------------------------------------------------------------- The Board of Directors has concluded that future shareholder value lies within the Company's intellectual property portfolio, which has recently been rigorously appraised. The Board has decided to concentrate future activity on the Company's biomaterials business and its research and development programme for the polymer heart valve. In both cases, the Board believes that AorTech's technology is unique and offers real opportunity for commercial exploitation. The impact on commercial operations of this strategic change will be as follows: Heart Valves The Company is at an advanced stage of negotiation to sell its commercial heart valve business, comprising both mechanical and tissue valves. It is expected that a further announcement confirming the terms of such a sale will be made very shortly. Critical Care The speed of uptake of the TruCCOMS Continuous Cardiac Output Monitoring System has been insufficient to justify continued investment in the technology. In view of the need for additional investment to fully develop the product, the Board has decided reluctantly to cease research and all commercial activity with immediate effect, and to seek a buyer or a partner for the intellectual property and the marketing rights. During the past six months, a number of steps have been taken to streamline the business in preparation for the changes announced. These are the culmination of a planned strategy to reshape the Company. CONTACT: AORTECH INTERNATIONAL PLC Phone: 01698 746 699 Contact: Bill Strachan, Chief Executive Ian Cameron, Finance Director College Hill Phone: 020 7457 2020 Nicholas Nelson Clare Warren BAE SYSTEMS: Completes Sale of Land Platform Communications ------------------------------------------------------------- Consistent with its strategy, BAE SYSTEMS has divested its non- core Land Platform Communications business (LPC) to Cobham plc for a cash consideration of GBP30 million. LPC designs, develops and manufactures the ROVIS advanced digital military vehicle intercom system which it supplies to a wide range of fighting vehicle platforms within the US and 13 other countries worldwide. In 2002 LPC generated revenues in excess of GBP25 million. It has approximately 100 employees and is based in Blackburn, Lancashire. CORPORATE SERVICES: Appoints Mark Adams Chief Operating Officer --------------------------------------------------------------- The Board of The Corporate Services Group PLC is pleased to announce that Mark Adams, currently Chief Executive of Blue Arrow, the Company's principal U.K. operating subsidiary, will be appointed Chief Operating Officer and a Director of CSG with effect from 8th January 2003. Welcoming the appointment, Julian Treger, Executive Chairman of CSG, said: 'We are delighted that Mark Adams has agreed to take on the role of Chief Operating Officer. Mark's immediate priority, in addition to his responsibilities at Blue Arrow, will be to oversee the delivery of CSG's newly defined strategy and business plan. In line with this, Mark will also be responsible for the implementation of further cost savings and cash control disciplines across the Group.' Mr Adams, who will report directly to Mr Treger, was appointed Chief Executive of Blue Arrow in December 2001. Prior to this, Mr Adams, 42, held the post of Chief Executive Officer of AXA PPP healthcare, a subsidiary of AXA UK where he oversaw a o26 million cost reduction programme accompanied by a three-year pre-tax profit turnaround from a o6 million loss to a o41 million profit. Mr Adams was also a member of AXA UK's Management Executive. Mr Adams joined the AXA Group in 1999 when Sun Life and Provincial Holdings (now AXA UK) acquired Guardian Royal Exchange, the parent company of PPP healthcare. Mr Adams was previously Managing Director of Denplan, a subsidiary of PPP healthcare which he joined in 1994 when the company acquired Longden & Cook Group where he was Managing Director and co-owner. The Board also announces that Tony Collyer, Group Finance Director, will be leaving the Company following the appointment of a suitable successor or, if earlier, at the end of February 2003. Mr Treger commented: 'I would like to take this opportunity, on behalf of the Board, to thank Tony for the considerable contribution he has made to the Company and wish him every succcess in the future.' CONTACT: THE CORPORATE SERVICES GROUP Phone: 020 7930 0777 / 020 7828 1156 Julian Treger Tony Collyer CardewChancery Phone: 020 7930 0777 Melvyn Marckus JPMORGAN FLEMING: Net Assets Is US$161.7 Million Upon Liquidation ----------------------------------------------------------------- Re: Final Asset Values of The Fleming Russia Securities Fund Limited (in liquidation) and size of new fund Following the Extraordinary General Meeting of The Fleming Russia Securities Fund Limited held on December 6, 2002 the company was placed into liquidation on 19 December 2002 pursuant to a members' summary winding-up with Messrs. D Pirouet and B McMahon of PricewaterhouseCoopers being appointed liquidators of the Company. Asset Value As at 10.00 a.m. on December 16, 2002, the calculation time for the valuation of the Company's assets for the purposes of determining the entitlements of Shareholders under the Proposals, the Company had net assets of approximately US$ 161.7 million. FAVs Cash FAV - US$ 28.452 million Rollover FAV - US$ 92.047 million In Specie FAV - US$ 41.214 million FINAL ENTITLEMENTS Cash Entitlement On 31 December 2002 the liquidators of the Company declared and paid a first distribution of US$ 17.00 per Participating Share. In a letter sent to all cash electors on that date it was indicated that due to Russian market settlement procedures it had not been able to settle all of the trades prior to the date of the first distribution. As a result it was proposed that a second distribution would be declared and paid once settlement had been received on the remaining trades. It is expected that this distribution will be made in early February 2003. Including the US$ 17.00 paid on 31 December 2002 it is expected that Shareholders electing for the Cash Option or Shareholders who failed to make a valid election and who therefore receive cash under the Cash Option will receive, in aggregate, approximately US$ 20.45 per Participating Share. Rollover Entitlement Elections in respect of 4,162,356 Participating Shares were received for the Rollover Option. As a consequence, 58,835,612 Ordinary Shares in JPMFRS were issued on December 17, 2002. Participating Shareholders who elected for the Rollover Option will therefore receive 14.13517056 JPMFRS Shares per Participating Share. In Specie Entitlement Elections in respect of 2,044,275 Participating Shares were received for the In Specie Option. Participating Shareholders who elected for the In Specie Option have therefore received assets to the value of US$ 20.16 per Participating Share. JPMorgan Fleming Russian Securities plc (JFR.L) The number of shares in issue is 60,062,612. The ISIN code for the JPMFRS Ordinary Shares is GB 0032164732 CONTACT: J.P. MORGAN FLEMING ASSET MANAGEMENT (UK) LIMITED Robert Peel Phone: 020 7742 3422 Craig Cleland Phone: 020 7742 3418 David Barron Phone: 020 7742 3475 UBS Warburg Ltd. Nicholas Rucker Phone: 020 7568 8574 David Bliss Phone: 020 7568 4587 Phil Higgs Phone: 020 7568 0960 Paul Harrington Phone: 020 7568 4569 Regarding the register or the crediting of CREST accounts Lloyds TSB Registrars: Sue McElhinney Phone: 020 7489 3093 David Andrews Phone: 020 7489 3059 JPMORGAN FLEMING ASSET MANAGEMENT (UK) LIMITED Richard Lewis (Company Secretary) Phone: 020 7742 3477 IC NETWORKS: Parent Plans to Trim Employees at Loss-making Unit --------------------------------------------------------------- Telecom company Siemens AG plans to lay-off 320 workers at its loss-making telecommunications unit, IC Networks, as part of a previously announced layoff of 1,700 jobs at its Munich headquarters. Siemens will reduce ICN's workforce by about 35% in total (which translates to 20,000 jobs) and will cut costs by EUR3.5 billion, citing the collapse in spending by debt-burdened telephone companies and its toll on the business. ICN, which makes equipment for fixed-line telecom networks, aims to complete the job cuts by the end of fiscal 2003. Unions agreed to the job losses in October after a bitter dispute. The company offered employees retraining and help in finding new jobs, but staff were lukewarm to the proposal. Out of the 1,100 beneficiaries, only 400 accepted--500 others left voluntarily. Some 400 so-called special cases are meanwhile waiting for the company's decision, a spokesman for ICN told Dow Jones Newswires. These special cases include people with disabilities and women on maternity leave, who must agree to dismissals under German law, he said. With loss on sales of EUR9.65 billion for the September 30 last year, ICN is the worst performer of Siemen's 13 operating businesses. Siemens manufactures a variety of products from light bulbs to turbines for power plants and mobile phones. MARCONI PLC: Telecom Italia Awards 15 Million Frame Contract ------------------------------------------------------------ Telecom Italia has awarded Marconi (MONI) a new, two-year frame contract worth 15 million to install a national optical backbone network in Italy based on Marconi's next-generation, high capacity optical cross connect (MSH2K). The equipment, part of Marconi's new Series 4 SDH (synchronous digital hierarchy) portfolio, was launched in mid-September 2002. Following completion of the project, Telecom Italia will have available a next-generation network, characterized by high standards of network protection and traffic re-routing in the case of signal failures, across which the operator will be able to provide new, innovative services to its customers. The new equipment has been developed by Marconi at its laboratories in Genoa and is manufactured in Marcianise, both in Italy. The platform has been designed to fit well with the new requirements of telecommunication operators. The implementation of this infrastructure will provide Telecom Italia with a flexible and cost-effective evolution towards integrated optical networks, with fast restoration capabilities based on the GMPLS protocol (Generalized Multi Protocol Label Switching). About Marconi plc 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. Additional information about Marconi can be found at www.marconi.com CONTACT: MARCONI PLC Joe Kelly/David Beck, Public Relations Phone: +44 (0) 207 306 1771 E-mail: joe.kelly@marconi.com Heather Green, Investor Relations Phone: +44 (0) 207 306 1735 E-mail: heather.green@marconi.com NRG ENERGY: Negotiates Restructuring of Debt at British Plant ------------------------------------------------------------- NRG Energy Inc. and its banks are in talks about the restructuring of the utility company's debt at Killiongholme A power plant, a U.K.-based facility it acquired in 2000 for around GBP400 million. "We are in discussions with a syndicate of about 20 banks looking to restructure our debt financing," Stuart Jackson, head of NRG Energy's U.K. operations, told Dow Jones Newswires. Bank of America Corp. is the lead bank in the syndicate. Xcel Energy Inc. the parent of U.S.-based NRG Energy has not yet decided the fate of its U.K. assets as the current finance structure for the 680-megawatt Killingholme A is not compatible with market prices, Mr. Jacson revealed. The facility suffers under the collapse of wholesale power market prices in the U.K. to 40% since the introduction of a new competitive market in 2001. NRG Energy itself is in the process of restructuring its debt with the banks in the U.S. According to the report, one banker who finances the U.K. power industry said restructuring options included extending debt payments or a debt-for-equity swap. NRG intends to continue the plants operation while the negotiations are going. NRG Energy's other U.K. assets include 25% ownership in the 408- MW Enfield power plant and shares in the Langage greenfield site in Plymouth. CONTACT: NRG Energy, Inc. 901 Marquette Ave. Minneapolis, MN 55402-3265 Phone: 612-373-5300 Fax: 612-373-5312 Homepage: http://www.nrgenergy.com Contacts: Wayne H. Brunetti, Acting Chairman and CEO Richard C. (Dick) Kelly, Acting President Len A. Bluhm, Executive Vice-President BANK OF AMERICA CORPORATION Bank of America Corporate Center, 100 N. Tryon St. Charlotte, NC 28255 Phone: 888-279-3457 Fax: 704-386-6699 Toll Free: 800-299-2265 Homepage: http://www.bankofamerica.com Contacts: Kenneth D. Lewis, Chairman and President Hugh L. McColl Jr., Chairman Emeritus SILENTNIGHT HOLDINGS: Appoints Pedder Non-Executive Chairman ------------------------------------------------------------ Silentnight Holdings Plc, the leading bed and furniture manufacturer, announces that it has appointed Mr Roger Pedder as it's non-executive Chairman with effect from 6 January 2003. Mr Pedder is 61 and has over 30 years brand retailing experience. He has been associated with C&J Clark Limited, the UK's largest shoe company, since 1963 and has been a director since 1988. Prior to his appointment as Chairman of Clarks in 1993, he co- built and floated Pet City plc, which then merged with Petsmart Inc. Mr Pedder was previously a director at Harris Queensway, Ward White Group plc and Burmah Oil Trading Limited, which included the turnaround and re-development of Halfords into out of town locations in the 1980s. The following information is disclosed in accordance with the Listing Rules of the UK Listing Authority: Current directorships: C&J Clark Limited Robert Dyas Holdings Limited Singer & Friedlander Aim VCT Plc Wines of Western Australia (UK) Limited Serve Investments Limited Birthdays Group Limited Former Directorships: CraftWorld Holdings Plc CraftWorld Trading Limited CVS Limited International Resources Group Limited Mr Pedder was a director and major shareholder of CraftWorld Holdings Plc and its trading subsidiary CraftWorld Trading Limited on 30 November 1998, when CWTL was placed in administration. On 19 February 1999, CWH was placed into a creditors' voluntary liquidation. The estimated creditors' deficiencies were GBP7.0 million in relation to CWTL and GBP3.4 million in relation to CWH. Note: Silentnight plunged to pre-tax losses of GBP7 million in the first half and slashed its dividend after two ill-fated furniture acquisitions. CONTACT: SILENTNIGHT HOLDINGS PLC Silentnight House Salterforth Barnoldswick Lancashire BB18 5UE Phone: (08707) 429 910 Fax: (01282) 816 926 Homepage: www.silentnight.co.uk Contact: Nino Allenza, Chief Executive Phone: Telephone: 01282 811137 Fax: 01282 816449 Ed Jones, Williams de Broe Plc 4 Park Place Leeds, LS1 2RU Phone: 0113 243 1619 Fax: 0113 243 9320 ************ 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 Laedevee Gonzales, Editors. Copyright 2003. 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. 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