/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/030110.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, January 10, 2003, Vol. 4, No. 7 Headlines * B E L G I U M * LERNOUT: Kemper Seeks Stay Relief to Rescind D&O Policies * F I N L A N D * SONERA CORP: Moody's Downgrades Debt Ratings of TeliaSonera * F R A N C E * AIR LIB: Survival Depends on Government's Decision DAEWOO: Management Abandons Operations in Lorraine FRANCE TELECOM: Lets Option for Polish Telecom Carrier Expire VIVENDI UNIVERSAL: Appoints Turrini Executive Vice President * G E R M A N Y * DAS WERK: Files Application to Start Insolvency Proceedings EM.TV: Expects at Least EUR64m for Half of Animation Unit GRUNDIG AG: Taiwanese Shampoo Company Takes Over Operation HERMANN HEYE: Ardagh Enters Option Agreement With Yeoman INFINEON TECHNOLOGIES: Courts Taiwanese Business Partner Anew * I T A L Y * FIAT SPA: Creditor Banks Offer Their Own Version of Rescue TELECOM ITALIA: S&P Assigns Preliminary Rating in Tap Increase * N E T H E R L A N D S * CONCERTO II: Fitch Places Notes on Rating Watch Negative ROYAL PHILIPS: Philips and Accton Merge Wireless Solutions * S W I T Z E R L A N D * ABB LTD: Martin Ebner Reduces Stake in Priced Investment ABB LTD.: Bankruptcy Proposal Is Due to Come Soon CREDIT SUISSE: CSFB To Sell Pershing to the Bank of New York * U N I T E D K I N G D O M * ABERDEEN ASSET: New Star to Buy Part of Unit Trust Business CABLE & WIRELESS: Wechsler Harwood LLP Files Class Action IZODIA: Denies Resignation of Financial Adviser P&O PRINCESS: Recommends the DLC Combination With Carnival POWERGEN AG: Mulls Closing Two Coal-fired Power Stations REGUS PLC: Indigo Shows Signs of Dropping Possible Takeover Bid UNITED PAN-EUROPE: Court Approves Disclosure Statement ============= B E L G I U M ============= LERNOUT: Kemper Seeks Stay Relief to Rescind D&O Policies --------------------------------------------------------- Kemper Indemnity Insurance Company seeks relief from the automatic stay to pursue a declaratory judgment against Lernout & Hauspie Speech Products N.V., and certain of its former directors and officers to determine Kemper's entitlement to rescind an "excess directors and officers and company reimbursement policy" issued to L&H NV. In April 2000, L&H NV sought to procure from Kemper $20,000,000 in coverage, in excess of $20,000,000 in coverage under a directors and officers and company reimbursement policy L&H obtained from AXA Global Risks (UK) Limited in February 1999. As a condition to offering the requested coverage, Kemper required L&H NV and its directors and officers to submit a warranty regarding their knowledge of any circumstances that might result in a claim within the proposed coverage. On April 26, 2000, a warranty was submitted on behalf of L&H and all of its directors and officers stating that L&H and its directors and officers had no knowledge of any circumstances that might result in a claim. Relying on the truth of these statements, Kemper issued the $20,000,000 coverage. The AXA Policy, to which the Kemper Policy follows form, requires that any dispute arising under the AXA Policy be adjudicated by a court of competent jurisdiction in Belgium, England, Wales or the State of New York. Just a few months after receiving the warranty from L&H and its directors and officers, public reports surfaced regarding possible accounting fraud at L&H. By the Petition Date, L&H was the subject of a formal investigation by the SEC. A number of civil lawsuits, including shareholder class action suits, had also been filed against L&H and its directors and officers alleging violations of securities laws. On Kemper's behalf, Daniel J. DeFranceschi, Esq., and John H. Knight, Esq., at Richards Layton & Finger PA, in Wilmington, Delaware, tell the Court that L&H NV and its directors and officers procured the Kemper policy through a materially false and fraudulent warranty. Absent adequate relief from the stay, Kemper will be unable to obtain the rescission of the Kemper Policy to which it is entitled, and it will be subject to demands for coverage, including demands for payment of defense costs and settlements by L&H NV's former directors and officers who are defendants in pending lawsuits and other proceedings arising out of L&H NV's "massive accounting fraud". L&H, under new management, admitted that, because of accounting errors and irregularities, its financial statements for 1998, 1999, and 2000 would have to be restated to correct an overstatement of revenue of approximately $400,000,000. By definition, accounting "irregularities" are "intentional misstatements or omissions" in financial statements that constitute accounting fraud under the AICPA Statement of Auditing Standards. These disclosures and others established that the warranty submitted to procure the Kemper policy was materially false and fraudulent. Mr. Knight reminds Judge Wizmur that in 2000, Kemper filed a motion seeking similar relief. At that time, the Court denied the Motion without prejudice. L&H NV objected to the 2000 motion, arguing primarily that the bankruptcy was just beginning and insurance coverage litigation would be extremely disruptive and prejudicial to the orderly management of a complex reorganization effort. Now that Dictaphone's reorganization plan has been approved, Holdings' liquidation plan has also been approved, and L&H NV has sold virtually all of its assets and has submitted a liquidation plan, Judge Wizmur should permit Kemper's declaratory judgment action to proceed. (L&H/Dictaphone Bankruptcy News, Issue No. 34; Bankruptcy Creditors' Service, Inc., 609/392-0900) ============= F I N L A N D ============= SONERA CORP: Moody's Downgrades Debt Ratings of TeliaSonera ----------------------------------------------------------- Moody's Investors Service downgraded the senior unsecured debt ratings of Stockholm-based TeliaSonera AB (formerly Telia AB) to A2 from A1. The rating was assigned a negative outlook. Confirmed ratings include TeliaSonera's Prime-1 short-term rating, and Sonera's Prime-2 short-term rating. The senior unsecured debt ratings of Sonera Corp were, at the same time, upgraded to Baa1 from Baa2. The ratings actions conclude the review initiated at the announcement of the merger between TeliaSonera, and Sonera, providers of communications services on March 26, 2002. Based in Helsinki, Finland, Sonera Corporation is now a controlled subsidiary of TeliaSonera AB. TeliaSonera ratings affected were: -- US$3 billion Euro MTN Programme and all drawdowns under the programme: downgraded to A2 from A1 -- Short-term rating: confirmed at Prime-1. Sonera ratings affected are as follows: -- EUR3 billion Euro MTN Programme and all drawdowns under the programme: upgraded to Baa1 from Baa2 -- Short-term rating: confirmed at Prime-2. The action affects approximately EUR3.1 billion of debts. With expectations of the eventual full ownership of TeliaSonera of Sonera, Moody's noted that there are currently no guarantees between TeliaSonera and Sonera of the rated debt at these entities. The ratings actions therefore narrowed the gap between ratings of the two entities. According to Moody's, this reflects expectation of some level of mutual support/co-operation. The ratings actions considers expectation of strong market positions that the merged entity will occupy in their Swedish and Finnish domestic markets, as well as in the Norwegian and Lithunian markets. While expecting strong cash flows from the new group, Moody's warns that this restructuring will involve some execution risk and its success may still suffer from potential further difficult market conditions in the sector. The negative outlook on TeliaSonera's ratings "considers integration risk relating to the ongoing merger process, and the reflects current degree of uncertainty about future strategy." The current ratings was made on expectations that the companies will resolve significant debt maturities faced over the next two year in the very near terms. TeliaSonera holds significant stakes (directly and indirectly) in Turkcell (37.1%), the leading mobile operator in Turkey, and MegaFon (43.8%), the third largest mobile operator in Russia. =========== F R A N C E =========== AIR LIB: Survival Depends on Government's Decision -------------------------------------------------- The French government will decide whether to accept Air Lib's restructuring plan or demand the repayment of EUR120 million (US$125 million), which could land the ailing carrier in bankruptcy. Government officials reviewing the plan have already rejected the first draft of the proposal. This action prompted France's second airline to outline revisions, including a more optimistic economic model and plans to fund the airline's working capital and renew its 30-plane fleet. Included in the proposal are the opening up of new lines to Africa, the submission of the plan to competition authorities in Brussels and the renewal of the company's operating licence, which expires at the end of January. But while Air Lib was "very positive" about the revised plan, Financial Times says trade union members who were presented with an outline of the revised plan last week said it was little changed from the one rejected last month. The former Socialist administration, whose concern was to preserve the airline's 3,200 jobs had supported the survival of the airline. The rightwing government which succeeded the former administration extended both the airline's operating license and the repayment deadline on its debts, but stressed that it would only accept the restructuring with a "firm and irreversible" support of an investor. Air Lib presented the plan just hours after it completed negotiations with Imca, the Dutch transport and services group that emerged in November as its most likely investor. DAEWOO: Management Abandons Operations in Lorraine -------------------------------------------------- Daewoo, the South Korean industrial group, closed its factory in Lorraine, France, with plans to transfer production to Poland, Le Figaro reports. The move follows a bitter dispute with workers over redundancy payments, which led to Young-Kil Kim, their South Korean chairman and chief executive, being held captive on the site's premises for an entire day. The court had earlier given the company until January 9 to show it can regularly pay wages and social charges. The 170 workers at the plant now wait for the company to issue redundancy letters. According to human resources director Martin Kiefer, the company is speeding things up to avoid bankruptcy as this would result to workers ending up with the minimum legal redundancy payment. Daewoo Auto (formerly Daewoo Motor) is part of General Motor's family. Korea's no.2 automaker behind Hyundai is beset by financial woes. Parent Daewoo Heavy attempted to put the company up for sale but failed after the unit fell into bankruptcy after Ford withdrew its offer. CONTACT: GM DAEWOO AUTO & TECHNOLOGY COMPANY 199 Chongchon-dong, Pupyong-ku Inchon, South Korea Phone: +82-32-520-2114 Fax: +82-32-520-4658 Home Page: http://www.daewoomotor.com FRANCE TELECOM: Lets Option for Polish Telecom Carrier Expire ------------------------------------------------------------- Debt-laden France Telecom and Polish partner Kulczyk Holding declined to pay US$120 million in a deal that would have raised their stakes at Polish telecom carrier Telekomunikacja Polska SA to 50% plus one. Analysts had expected France Telecom's decision, as the company already effectively controls Poland's dominant telecom carrier, according to the Daily Deal. Moreover, the state-controlled company has other concerns, such as its core business and its program to reduce its EUR70 billion (US$73 billion) debt. As Bob Creamer, a telecom analyst with Raiffeisen Capital & Investment in Warsaw affirmed, "For PR reasons, it would not be a good idea to buy another 2.5%." The partners already control 47.5% of TPSA after buying 35% of the company for US$4.4 billion in 2000 and 12.5% for US$625 million in September 2001. The latter transaction granted them control over the TPSA supervisory board, and an option, good until December 31, 2002, to purchase another 2.5% plus one share and outright control at a 25% premium over the average price on the Warsaw Stock Exchange 100 days before the transaction was signed. A France Telecom spokesman assured that the company's decision should not affect future plans for the company. VIVENDI UNIVERSAL: Appoints Turrini Executive Vice President ------------------------------------------------------------ Regis Turrini has been appointed Executive Vice President of Vivendi Universal, in charge of divestitures, mergers and acquisitions. He reports to Robert de Metz, Senior Executive Vice President of Vivendi Universal. Mr. Turrini, 43, is an attorney at the Paris bar, and a graduate of the Paris Institute of Political Sciences and ENA. He began his career as a judge to the court dealing with disputes in the French civil service. He then joined law firms Cleary Gottlieb Steen & Hamilton (1989-1992), followed by Jeantet & Associ,s (1992-1995), as a business lawyer. In 1995, Mr. Turrini joined the investment bank ARJIL & Associes (LagardSre group) as executive director. He was then appointed managing director and, from 2000, managing partner. ============= G E R M A N Y ============= DAS WERK: Files Application to Start Insolvency Proceedings ----------------------------------------------------------- The management board of DAS WERK AG has filed an application to start insolvency proceedings at the Amtsgericht Frankfurt (the Local Court of Frankfurt am Main). Dr. Lessing, Frankfurt, has been appointed as the preliminary insolvency administrator. The application concerns only the publicly quoted holding company (the AG). The subsidiaries are not directly affected by the application. The application does not concern the das werk postproduction companies, which will continue to run their business unchanged. Magic Video in Hamburg as well as all foreign subsidiaries in the segments postproduction (CFX, das werk Zurich, EnEfecto, Glassworks), film production (FFP Media, Promark Entertainment, Road Movies) and animation (Trixter) are not included in the application and therefore are not directly affected by the application. The sale of interests in companies held by DAS WERK AG is planned to be continued. As announced in August 2002 the das werk postproduction companies will be merged in a new incorporation. The character of the incorporation and the scope of the future business will have to be discussed between the preliminary insolvency administrator of the holding company DAS WERK AG, banks and management. Note: As of June 30, 2002 Das Werk group reported sales of EUR26.267 million and operating loss of EUR4.818 million. EM.TV: Expects at Least EUR64m for Half of Animation Unit --------------------------------------------------------- Bankrupt EM.TV & Merchandising AG expects to raise at least EUR64 million from the sale of just below half of its U.S. subsidiary, The Jim Henson Co., The Deal says. The German kids media company brought Angeles-based JHC for EUR680 million in 2000. Without giving the final price of the deal, EM.TV spokewoman Sabine Lais told the news agency, "That's the size of [the EM.TV] loan we want to pay off with the sale." Lais also said a sale contract is expected to be signed this month. EM.TV placed the animation unit up for sale in 2001. Earlier, TCR-EUR reported that EM.TV has completed a letter of intent with an investment group led by Dean Valentine, together with Europlay Capital Advisors Dean Valentine for the partial sale of JHC. Munich-based EM.TV filed for creditor protection after running into accounting blunders and overspending on acquisitions. EM.TV's founders, Florian and Thomas Haffa, have resigned their board seats and are now being prosecuted in Munich for withholding information from shareholders. According to U.S. investment bank Allen & Co., which was hired by the media company to divest the unit, the asset has attracted bidders including the Walt Disney Co. and Haim Saban, who reportedly has offered US$130 million. CONTACT: EM.TV & MERCHANDISING Betastrasse 11 D-85774 Unterf"hring, Germany Phone: +49-89-995-00-0 Fax: +49-89-995-00-11 Homepage: http://www.em-ag.de Contacts: Bernd Thiemann, Chairman, Supervisory Board Werner Klatten, Chief Executive Officer Andreas Pres, General Manager of Finance GRUNDIG AG: Taiwanese Shampoo Company Takes Over Operation ---------------------------------------------------------- The future of the entertainment electronics company Grundig is secure. The previous main shareholders, Prof. Dr. Anton Kathrein and Felix Chen, Chairman of the Board of the Taiwanese Sampo company, signed the corresponding contracts for takeover of the majority of shares of the Nuremberg-based company on the 8th of January 2003. This agreement was preceded by extremely intense discussions during the past weeks between the board of Grundig and representatives from Sampo. Under the terms of the contract, Sampo will become the majority shareholder and, therefore, will take over the direction of Grundig AG. This oversight especially applies to the areas of Home Intermedia systems, Car Intermedia systems, office communications, professional SAT systems and hotel communications. Another important part of this role is the area of research and development in Nuremberg - where Grunding has employed over 400 engineers and developers. The parties have agreed to remain silent about the purchase price. "I am pleased to have found in Sampo a partner for Grundig that is not a purely financial investor but a partner whose product range and market understanding will fit in well with the company tradition" said Prof. Dr. Anton Kathrein at the signing on the contracts. "This agreement will give the company the necessary room for manoeuvre to implement new ideas and innovations in our products and in our positioning in the market. I am especially glad that I have been able to fulfil my promise to guide Grundig to a secure future." Prof. Dr Anton Kathrein spoke about the complicated search for a partner and the contract negotiations: "We took our time when looking for a partner to ensure we found the most suitable one. This was not always the easiest path to choose which is why at this point I would like to thank the banks and credit institutes who supported us throughout this time and who, like ourselves, never lost sight of our ultimate aim. Both they and the pension guarantee association played a major part in saving the company." Prof. Dr. Anton Kathrein especially thanked the Bavarian State Minister for the Economy, Transport and Technology Dr. Otto Wiesheu, MdL, who actively campaigned to keep Grundig going and secure the jobs of its staff and under the protection of the regulatory principles of the Free State of Bavaria suggested and advocated highly constructive solutions. H.C. Ho, President and CEO of the Board of the Sampo group, spoke of his confidence in Grundig's future: "We can already see today that the measures taken by the Grundig management are reducing costs and are improving profit margins. The Grundig brand and sales network with 30,000 partners throughout Europe will give us a direct route into the important European market of the future. By joining with Grundig we will attain many synergies which will greatly support us on our way to becoming a leading brand world- wide. We will be able to market our products in Europe and establish 'classic' Grundig products in the Asian market. H.C. Ho added that in addition the "excellent research and development work of the renowned German company" will be closely linked with its counterpart at Sampo in Taiwan. The new main shareholder did not make any comments about the reorganisation of the company. The Sampo company, which was founded in 1936, employs a staff of around 5400 today and has an excellent position in Asia, USA and especially in its domestic market in Taiwan in its core businesses of household electronics and multimedia (TV, LCD and DVD players and PDP). Sampo is also one of the leading manufacturers of electronic components (OEM) world-wide. Its products are sold mostly in the USA, Australia, Hong Kong and China. Sampo has an annual group turnover of US$ 1.4 billion and is listed on the stock exchange of Taiwan. CONTACT: GRUNDIG AG Beuthener Strabe 43 D-90471 Nurnberg Contact: Holm Kilbert, Public Relations Phone: ++49 911/7 03-86 29 Fax: ++49 911/7 03-85 00 E-mail: holm.kilbert@grundig.com Home Page: http://www.grundig.com HERMANN HEYE: Ardagh Enters Option Agreement With Yeoman --------------------------------------------------------- Ardagh International Holdings Limited, a wholly owned subsidiary of Ardagh Plc, has entered into an option agreement with Yeoman international Holdings SA regarding the assets of Hermann Heye KG acquired by Yeoman. Yeoman acquired these assets on Friday, January 3, 2003 following satisfaction of various pre-completion conditions pursuant to an agreement dated 20 December, 2002. The option granted to Ardagh International by Yeoman, for nominal consideration, permits Ardagh to acquire the assets purchased by Yeoman, at the cost (including acquisition expenses and interest) to Yeoman, at any time before June 30, 2003. Total consideration for the assets acquired by Yeoman was circa EUR 35.5 million including acquisition expenses. The assets which are the subject of the Option include the glass container manufacturing operations of Heye, which consist of a three furnace facility in Obernkirchen, Germany and a single furnace facility in Germersheim, Germany and the business of Heye International, a leading technology provider and producer of glass manufacturing and inspection machinery. Heye International is also based at Obernkirchen. Ardagh International has indicated that it intends, subject to all necessary approvals, to exercise the Option and acquire these assets within the option period. In the event of Ardagh International exercising its Option it will fund the acquisition of the Heye assets through bank and other debt available within the new Heye structure, from cash resources within the Heye business and from Ardagh International's existing debt facilities. Heye has been in insolvency for over 18 months. A restructuring (including a package agreed with the workforce) initiated by the Insolvency Administrator is expected to return the glass manufacturing operations to profitability in the near future. Heye International, the technology provider and machinery manufacturer, has been profitable throughout the insolvency of Heye and is expected to remain profitable. Combined sales of the glass manufacturing operations and Heye International in 2002 are estimated to be Euro 166 million with estimated EBITDA of Euro 5.4 million. Pending the exercise of the Option, the Ardagh group has agreed to provide comprehensive management services to Heye. Such services will be provided on an arm's length cost basis. As part of these arrangements, Eddie Kilty, Ardagh Plc's CEO has, on 3 January, 2003, been appointed CEO of Heye Holding gmbh (the newly established holding company for the Heye operations) and the Ardagh group plans to use the production and marketing skills within the group to return the glass manufacturing operations to profitability as soon as possible. The restructuring steps implemented by the Insolvency Administrator prior to last Friday's acquisition by Yeoman will be a major contributor to the return to profitability of the glass plants, as will a carefully targeted capital investment program. Ardagh International expects to exercise the Option subsequent to the demerger of the glass operations from Ardagh Plc as proposed in the circular sent to shareholders on 20 December, 2002. In such circumstances the Heye operations will form part of the demerged glass operations held by Ardagh Glass Limited. This acquisition would represent significant progress for Ardagh Glass in implementing its stated strategy to participate in European industry consolidation and thereby enhance long-term shareholder value. In the event that the demerger proposals are not approved and Ardagh International continues as a subsidiary of Ardagh Plc, Ardagh Plc will seek all necessary consents to acquire the Heye assets from Yeoman, including independent shareholder approval pursuant to the Listing Rules of the Irish Stock Exchange. Ardagh International believes that the acquisition of a significant position in the German glass packaging market, combined with ownership of one of the leading glass container technology providers and machinery manufacturers will increase its international presence and make a significant contribution to group cash flow within a relatively short period. Yeoman was able to acquire the assets within the tight time frame demanded by the Insolvency Administrator of Heye. It would not have been possible for Ardagh Plc itself to close the transaction within the time frame required given the regulatory requirements involved for Ardagh Plc. The Option obtained from Yeoman now allows the Ardagh group sufficient time to obtain any necessary consents. Ardagh Plc proposes to issue further correspondence to its shareholders in relation to this matter shortly. CONTACT: Mr. Tom Byrne, Murray Consultants Limited Phone: + 353 1 4980300 INFINEON TECHNOLOGIES: Courts Taiwanese Business Partner Anew ------------------------------------------------------------- Infineon Technologies has employed a local businessman to bridge and rebuild its business relationship with Mosel Vitelic, the parent of its Taiwanese joint venture, ProMOS Technologies. The German memory chip producer, which marred its ties with its partner last month when it said it would sell its 30% stake in ProMOs, is now offering to again buy 90% of ProMOS' D=Ram output. Infineon officials said they would reduce the proportion to zero by 2006, while also progressively selling its shares in the venture. Dispelling the image of being the "bad guy", Infineon Technologies Asia Pacific president, Loh Kin Wah, told the Financial Times "...we are still trying to find the best way for the future of ProMOS." But ProMOS, which recalls "ugly" demands for profit guarantees of Infineon in its 90% subscription of the former's output, said it has not yet been informed of the proposal. Mosel took ProMOS' products after Infineon--which previously sold nearly half of ProMOS's output under its own brand--ceased buying from the company at the end of last month. But after ending its contract with Mosel, Infineon claimed exclusive right to sell the venture's D-ram chips. ProMOS, however, rejected the argument. ========= I T A L Y ========= FIAT SPA: Creditor Banks Offer Their Own Version of Rescue ---------------------------------------------------------- Fiat's creditor banks have a plan that could rule out the rescue proposal of Roberto Colaninno, former chief executive of Italia, the Financial Times says. The banks are considering a EUR5-7 billion refinancing package that would involve the Agnelli family, the founder who controls one-third of Fiat. The plan considers spinning off the group's loss-making car division, Fiat Auto, less its EUR2-3 billion debt. It would also involve injecting into the unit another EUR2 billion from the sale of assets, and a share offering underwritten by the banks to raise a further EUR2 billion. For its part, Agnellis would be asked to guarantee their portion. Some EUR1.5 billion is expected from the sale of Fiat Avio, the aeronautics division which had so far attracted two bidders. The plan also puts a question on the fate of the industrial group's 56% stake in Ferrari, the sports car maker. Bankers are deciding on keeping it or transferring it to Fiat Auto if it is possible. Mediobanca, the invesment bank that owns the remaining 34% of the business plans to put its part in an initial public offering this year. The report assures that the proposals would not affect Fiat's option to sell 80% of Fiat Auto to General Motors in year. CONTACT: FIAT SPA 250 Via Nizza 10126 Turin, Italy Phone: +39-011-686-1111 Fax: +39-011-686-3798 Toll Free: 800-804027 Homepage: http://www.fiatgroup.com/e-index.htm Contacts: Paolo Fresco, Chairman and Co-CEO Alessandro Barberis, Co-CEO TELECOM ITALIA: S&P Assigns Preliminary Rating in Tap Increase -------------------------------------------------------------- Standard & Poor's Ratings Services said Wednesday that it assigned its 'AAA' preliminary credit rating to the EUR100 million class A2 asset-backed medium-term notes series 2001-1 (tap issuance) to be issued by TI Securitization Vehicle S.r.l., a special-purpose entity. The collateral backing the notes is made up of trade receivables from billed and unbilled residential telephone services originated by Telecom Italia SpA. No receivables relating to calls from mobile phones will be included in this transaction. Telecom Italia (BBB+/Positive/A-2) is one of the largest telecommunications operators in Europe and has one of the most extensive mobile phone customer bases in the world, which could form the receivables to back future issues of notes under this EUR2 billion tap program. "A preliminary rating has been assigned to this latest EUR100 million tap issue under this program, which will replace the class A1 notes that reach their expected maturity on Jan. 25, 2003. This will maintain the current total issuance amount of EUR700 million," said Standard & Poor's credit analyst Anjali Bastianpillai. The rating assigned to the notes reflects the credit quality of the underlying receivables and the minimum credit support that dynamically adjusts on a monthly basis to provide coverage for a stressed level of historic portfolio losses, dilutions, and carrying costs. The assets are also subject to strong eligibility criteria, a sound cash flow structure, and certain mechanisms in place to protect investors and ensure timely payment of interest and ultimate repayment of the principal under the rated notes. The rating addresses only the initial series of notes backed by billed and unbilled residential fixed-line telephone bill receivables originated by Telecom Italia. It does not address receivables where the originator is a subsidiary of Telecom Italia, or if the debtor is a business client or a public entity. CONTACT: STANDARD & POOR'S Anjali Bastianpillai, London Phone: (44) 20-7826-3728 ===================== N E T H E R L A N D S ===================== CONCERTO II: Fitch Places Notes on Rating Watch Negative -------------------------------------------------------- Fitch Ratings placed on Rating Watch Negative the Class C notes rated 'BBB', Class D notes rated 'BB-' and Combination notes rated 'BB-' issued by Concerto II B.V, a collateralized debt obligation (CDO) backed predominantly by high-yield bonds and leveraged loans. According to Fitch, the rating "reflects the presence of three defaulted assets in the portfolio with a total par value of EUR21.42 million, a reduction in the par value of the portfolio through trading losses, and the presence of assets rated 'CCC+' or below in the portfolio." The international rating agency noted that the company's collateral manager, AXA Investment Managers SA, has recently pursued the strategy of shifting the company's portfolio more towards leveraged loans from bonds. The agency indicated to further review the performance of the transaction, including an assessment of the potential recovery rates of the defaulted assets. In August, the Dutch company issued EUR500m of various classes of fixed- and floating-rate notes and invested the net proceeds in a portfolio of sub-investment grade debt securities. The 'AAA' rating of the Class A notes and the 'A-' rating of the Class B notes remain unchanged. ROYAL PHILIPS: Philips and Accton Merge Wireless Solutions ---------------------------------------------------------- Royal Philips Electronics (AEX: PHI, NYSE: PHG) and Accton Technology of Taiwan (TAIEX: 2345) announced Wednesday the signing of a letter of intent to merge their respective wireless connectivity module activities into a new joint venture company. The transaction is expected to close in the first half of 2003 and is subject to customary regulatory approvals. The new company is expected to employ more than 200 people and has targeted annual revenues of between USD 200 to 250 million. The joint venture will provide innovative wireless products for design-in (Original Equipment Manufacturing) and add-on infrastructure to the MSO/ISP, consumer electronics, enterprise, PC and mobile phone industries. The new company will address the increasing market requirements for advanced, easy to use, and cost effective wireless solutions based on state-of-the-art technology in Wi-Fi (802.11), BluetoothTM and other industry standards. This includes a full line of access points and gateways including a Powerline Communication/802.11b bridge, worldwide-approved 802.11a/b/g solutions, emerging consumer applications like the recently launched Home Wireless A/V Platform and Bluetooth data and audio products. Over the next few years, the joint venture's advanced wireless solutions will be key enablers in the growing broadband market for devices that deliver content-rich always-on, always-connected applications. To enable users to benefit from rich content the joint venture will develop applications such as streaming music and video, multimedia messaging, and voice over IP in broadband environments: homes, open space (e.g. airports) and public areas (e.g. coffee shops). Philips consumer expertise and technology research combined with Accton's Original Design Manufacturing (ODM) strengths and data networking expertise create a joint venture dedicated to innovation, time-to-market and competitive positioning to deliver world class applications for OEM's. Yimin Doo, President and Founder of Accton Technology Corporation commented, "This partnership with Philips is an exciting opportunity to merge advanced consumer research with Accton's ODM capabilities. This will greatly accelerate the introduction of next generation wireless products with easy-to-use features. We feel Philips is the right partner to deliver a new line of products geared for the home, at work and on the go". Arthur van der Poel, Executive Vice-President and Member of Philips' Board of Management, stated, "This joint venture underlines the importance of wireless connectivity for both the consumer and business environments. The new company will work with Philips both as a customer for our technologies and a supplier of solutions that enhance the consumer experience in our end products. The partnership with Accton, the leading Taiwanese wireless networking ODM, will accelerate the creation of new concepts for connected products, personalized services and security. The joint venture is ideally placed to be a leading supplier to the wireless connectivity industry." Under the terms of the agreement, the joint venture will be legally incorporated in Taiwan with headquarters in Hsinchu, Taiwan, and manufacturing will remain in Asia. Philips and Accton will have approximately equal stakes in the joint venture and share the board seats. The management team will consist of key Accton and Philips managers and will draw from a strong base of Philips and Accton employees and technologies with both companies becoming customers and development partners of the joint venture for wireless connectivity products. A definitive agreement will be signed following further confirmatory due diligence, the receipt of necessary regulatory and shareholder approvals, and workers council consultations. Bluetooth is a trademark owned by Bluetooth SIG, Inc. and is used by Philips under license About Accton Technology Corporation Accton Technology Corporation (Accton), established in 1988, is a global outsource specialist of advanced communication products. It provides a variety of Ethernet and Fast Ethernet products including adapters, hubs, switches and wireless LAN products. With a strong research & development force, the company has received the recognition of ISO 9001 quality systems model for quality standard in design, manufacturing and production, as well as ISO 14000 Environmental Management System. Accton was also the first company in Asia Pacific to be granted TL 9000, the highest quality assurance in telecommunications worldwide in 2000.With sales revenue exceeding US$520 million in 2001, Accton is one of the few companies that have maintained an annual growth rate of 30% over the past thirteen years. Accton's international headquarters is located in Taiwan's Science-based Industrial Park, Hsinchu. The company currently has more than 2,000 employees worldwide, and is listed on TAIEX: 2345. Accton is located at www.accton.com. About Royal Philips Electronics Royal Philips Electronics of the Netherlands is one of the world's biggest electronics companies and Europe's largest, with sales of EUR 32.3 billion in 2001. It is a global leader in color television sets, lighting, electric shavers, medical diagnostic imaging and patient monitoring, and one-chip TV products. Its 184,000 employees in more than 60 countries are active in the areas of lighting, consumer electronics, domestic appliances, components, semiconductors, and medical systems. Philips is quoted on the NYSE (symbol: PHG), London, Frankfurt, Amsterdam and other stock exchanges. News from Philips is located at http://www.philips.com/newscenter ===================== S W I T Z E R L A N D ===================== ABB LTD: Martin Ebner Reduces Stake in Priced Investment -------------------------------------------------------- Swiss financier Martin Ebner has reduced his stake in Swiss- Swedish engineering giant ABB to less than 5%. His 11.1 % stake, worth close to SFR6 billion in 2001, was his second biggest investment. The stakes were worth less than SFr600m on Wednesday as ABB's share price has collapsed under the weight of asbestos litigation, weak earnings performance and management upheavals, the Financial Times observed. Mr. Ebner's stakes in companies including ABB, Credit Suisse and Hero AG have lost CHF90 million after Ebner's lenders gave him until July 2003 to repay loans. In July, Matin Ebner entered into a moratorium with creditors who enabled him to suspend payments as he raised funds by selling investments only when market conditions are favorable. The deal was aimed at preventing him from incurring losses from a premature sale of investments. A continued slump in Swiss stocks had earlier been seen to pressure Mr. Ebner to proceed with the sale of its holdings in Credit Suisse Group and engineering group ABB. The man who used to be considered the Swiss equivalent of renowned American investor Warren Buffet, resigned from the board of ABB Ltd in October. Believed to be behind ABB's US$1 billion share buyback in the second half of last year -- a move that is partially blamed for the company's current balance-sheet problems -- Mr. Ebner's departure was seen to afford ABB Chief Executive Juergen Dormann some autonomy in guiding the company through its current difficulties during that time. The Wall Street Journal Europe says that since Mr. Dormann took over, ABB has restored investor confidence by selling off non- core assets as part of its effort to halve its debt to $2.6 billion by the end 2002. ABB LTD.: Bankruptcy Proposal Is Due to Come Soon ------------------------------------------------- The lead bankruptcy counsel of Combustion Engineering Inc., ABB's troubled U.S. unit, said the Swiss engineering group will soon present a bankruptcy proposal that will pave the way for CE's Chapter 11 filing. David Bernick of Kirkland & Ellis in Chicago said the plan will be presented to about 110,000 plaintiffs as part of a US$1.12 billion settlement for asbestos claimants. ABB decided for a settlement with the plaintiffs on the belief that the cost of defending the asbestos claims will be more than the estimated $812 million value of Combustion Engineering's assets, according to The Deal. "If CE continued to settle claims under its historic guidelines, the prospect was very real that it would not have sufficient funds to meet those claims," Mr. Bernick said. Mr. Bernick further revealed that the alternative solution would require them to use all of CE's assets, plus an additional US$300 million that would have to come from ABB, which--according to spokesman Thomas Schmidt in Zurich--has already paid US$865 million to claimants for the last 12 years. The reorganization proposal requires 75% approval from the plaintiffs. Once the needed consent is obtained, Combustion Engineering will then apply for the prepackaged Chapter 11 filing, Mr. Bernick disclosed. Combustion Engineering makes boilers with asbestos insulation. After being scaled down, it now has only about 50 employees. Paris-based Alstom SA acquired the company from ABB for US1.6 billion in 2000. CONTACT: In Switzerland Cheryl Sunderland Nicole Seiler Phone: + 41 43 317 3824 E-mail: nicole.seiler@ch.abb.com ABB Asea Brown Boveri Ltd Value Services Affolternstrasse 44 P.O. Box 8131 CH-8050 Zurich Switzerland Phone: +41 43 317 7111 Fax: +41 1 311 98 17 Norwalk, United States John Chironna Asea Brown Boveri Inc. 501 Merritt 7, P.O. Box 5308 Norwalk, Conn.06856-5308, U.S.A. Phone: +1 203 750 7743 Fax: +1 203 750 2262 ALSTOM 25, avenue Kleber 75116 Paris Cedex 16, France Phone: +33-147552000 Fax: +33-147552861 Homepage: http://www.alstom.com Contacts: Pierre Bilger, Chairman and CEO Patrick Kron, CEO Philippe Jaffr,, CFO and Advisor to the Chairman CREDIT SUISSE: CSFB To Sell Pershing to the Bank of New York ------------------------------------------------------------ Credit Suisse First Boston announced Wednesday that it has entered into a definitive agreement to sell its Pershing unit to The Bank of New York Company, Inc. for US$2 billion in cash, together with the repayment of a US$480 million subordinated loan, as well as an additional contingent payment of up to US$50 million based on future performance. The transaction is expected to close in the first half of this year, subject to regulatory approvals and other conditions. Pershing is a global leader in financial services outsourcing solutions and investment-related products with more than 850 clients worldwide. Commenting on the transaction, CSFB's Chief Executive Officer and Co-CEO of Credit Suisse Group, John J. Mack, said, "We are pleased to announce an agreement with The Bank of New York on the sale of Pershing. This will allow CSFB to improve the resources available for our core services to clients. Given today's challenging capital market environment, CSFB is focused on enhancing our leading positions in our primary business areas." As a result of the transaction, the regulatory capital positions of CSFB and CSG will be enhanced by the elimination of approximately US$500 million in goodwill and an aggregate reduction in risk-weighted assets of approximately US$1.8 billion. The transaction will generate a modest pre-tax loss and an after-tax loss on the sale of approximately US$250 million. Pershing's current senior management team will continue to lead the organization. Pershing's Chief Executive Officer, Richard F. Brueckner said, "Pershing has achieved market leadership by delivering a diverse array of high quality financial services outsourcing solutions to leading financial institutions and their investment professionals. Our affiliation with The Bank of New York will position us to offer an even broader range of services on a global basis." Credit Suisse First Boston (CSFB) is a leading global investment bank serving institutional, corporate, government and individual clients. CSFB's businesses include securities underwriting, sales and trading, investment banking, private equity, financial advisory services, investment research, venture capital, correspondent brokerage services and asset management. CSFB operates in 77 locations in 36 countries across six continents. The Firm is a business unit of the Zurich-based Credit Suisse Group, a leading global financial services company. Located in eleven offices worldwide, Pershing is a leading global provider of financial services outsourcing solutions and investment-related products and services to nearly 1,000 institutional and retail financial organizations and registered investment advisors. Its businesses include execution, settlement, financing, and information management services. =========================== U N I T E D K I N G D O M =========================== ABERDEEN ASSET: New Star to Buy Part of Unit Trust Business ----------------------------------------------------------- New Star Asset Management plans to take buy seven of Aberdeen's 23 unit trusts for as little as GBP60 million, Times Online reports. Two thirds of the assets, which have a combined value of GBP4 billion, are believed to be in the fixed income sector. The deal, which could be announced as early as next week, excludes Aberdeen's Far East investment team, led by Hugh Young in Singapore. An insider said the low price, at 1.5% of assets, indicates how far the split-capital debacle has destroyed the value of Aberdeen's business. In December, the asset manager reported a 26% fall in its pre-tax profits for the year while announcing plans to skip dividends. The company's shares lost more than 80% of their value last year. City analysts say Aberdeen will also be selling its GBP6-billion property arm instead of floating it before the end of the first quarter as previously intended. They also predicted further asset sales in the short term, including the group's retail asset management business, which manages about GBP6 billion out of the firm's total GBP23.7 billion in funds. 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 CABLE & WIRELESS: Wechsler Harwood LLP Files Class Action --------------------------------------------------------- The law offices of Wechsler Harwood LLP on Wednesday announced that a securities class action has been commenced on behalf of shareholders who purchased, converted, exchanged or otherwise acquired American Depository Receipts (ADRs) of Cable and Wireless PLC (NYSE:CWP) between August 6, 1999 and December 6, 2002, inclusive. The case is pending against Cable & Wireless in the United States District Court for the Eastern District of Virginia. A copy of the complaint filed in this action is available from the Court, or can be viewed on Wechsler Harwood web site at: www.whesq.com The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between August 6, 1999 and December 6, 2002. Specifically, the complaint alleges that defendant Cable issued a press release on August 6, 1999, announcing that it had agreed to sell One 2 One, a British based mobile telecommunications operator, to Deutsche Telekom. Under the announced terms of the agreement, Deutsche Telekom would pay 6.9 billion pounds sterling in cash for 100% of the equity ownership interest in One 2 One including the repayment of 237 million pounds of shareholder loans, and would assume approximately 1.5 billion pounds of third-party debt. According to the complaint, such statements were materially false and misleading because they failed to disclose that a critical term of the One 2 One deal was a 1.5 billion pounds tax indemnification clause agreed to by Cable, and more specifically, a trigger clause, whereby a future downgrade of Cable's long-term debt rating below a predetermined threshold would trigger a 1.5 billion pounds cash obligation on behalf of Cable. On December 6, 2002, Moody's investment service announced that it would downgrade the long-term debt rating of Cable from Baa1 to Baa2. Cable then shocked the market in a press release that same day stating that, as a consequence of the downgrade, the above mentioned "ratings trigger" was activated. The announcement caused the price of Cable's ADRs to fall by 40 percent in one business day, from a closing price of $3.90 per ADR on December 6, 2002, to close at $2.33 per ADR on December 9, 2002, on unusually high trading volume. Subsequently, the company filed a Form 6-K with the SEC on December 9, 2002 which included a statement regarding the tax indemnification "ratings trigger" clause. No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you are a member of the Class, you may move the court no later than February 24, 2003 to serve as a lead plaintiff for the Class. In order to serve as a lead plaintiff, you must meet certain legal requirements. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following: CONTACT: WECHSLER HARWOOD LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 David Leifer, Wechsler Harwood Shareholder Relations Department E-mail: dleifer@whesq.com Extension-251 IZODIA: Denies Resignation of Financial Adviser ----------------------------------------------- Izodia, the failed software business, which is currently at a loss for top executives, denied claims that the company's financial adviser, Navigator, has resigned. According to The Guardian, Adam Webb of Navigator said the company has been informed at meeting late last month, but it had yet to make a formal announcement. Mr. Webb refused to provide explanations for the move, but the report noted that the advisers are said to have threatened to resign if Izodia's two directors, Peter Catto and Jarlath Vahey, did not step down. Mr. Catto and Mr. Vahey are both involved in an SFO investigation in relation to alleged "unlawful misappropriation of funds belonging to Izodia". On the other hand, A TCR-EU report on Tuesday citing the Financial Times, said Navigator is reviewing its role as adviser after failing to obtain bank statements that would clearly locate the company's cash. Mr. Catto, who attended the meeting of Navigator last month, said on Tuesday he does not believe the adviser's resignation to be true. Shareholders of the company are meanwhile worrying about Izodia's t33 million cash deposits as its remaining executives are nowhere to be reached. It is believed that some of these funds were transferred to a Jersey bank account in Izodia's name, but are controlled by Orb, an investment company that holds a stake of almost 30% in Izodia. P&O PRINCESS: Recommends the DLC Combination With Carnival ---------------------------------------------------------- Summary (i) The Board of P&O Princess on Wednesday announces that it has recommended the Carnival DLC transaction (ii) The Board considers the DLC transaction with Carnival to be a highly attractive opportunity for P&O Princess shareholders: (iii) DLC structure allows all P&O Princess shareholders to retain their exposure to the global cruise industry; (iv) creates the world's largest cruise vacation group; (v) combines complementary well-known brands operating globally; (vi) potential to generate significant synergies; and (vii) strong balance sheet and cash generation (viii) Features of the Combined Group: (ix) leading brands in North America, South America, the UK, continental Europe and Australasia; (x) high quality young fleet; (xi) 65 cruise ships offering approximately 100,000 lower berths; (xii) 18 additional cruise ships on order with approximately 42,000 lower berths scheduled to be delivered over the next three and a half years; (xiii) pro forma financials (xiv) revenues of approximately $7.0 billion (1) (xv) operating income of approximately $1.2 billion (1) (xvi) total assets of over $20.0 billion (2); and (xvii) P&O Princess and Carnival together carried approximately 4.7 million passengers in the year ended 30 November 2002 (xviii) Composition of the board of the Combined Group announced (see paragraph 9.5 below) (xvix) Previously announced process to completion is confirmed (xx) shareholder meetings expected to be held in late March / early April 2003 with completion expected shortly thereafter Notes: (1) Pro forma US GAAP for the year ended 30 November 2001. 2) Pro forma US GAAP as at 31 August 2002. Lord Sterling of Plaistow, Chairman of P&O Princess, said: "We have [Wednesday] signed an agreement with Carnival to implement the DLC transaction. We are recommending that shareholders approve the DLC transaction with Carnival at an EGM expected to be convened towards the end of March. "We have created significant value for our shareholders with the demerger two years ago from P&O and our operating performance as an independent company. All credit to the management and the staff both at sea and on shore. We believe that the combination with Carnival is a highly attractive opportunity to enhance shareholder value further. On a personal note, I have known Micky Arison for many years and we share similar values and pride in our respective companies. I have every confidence that the future bodes well for all involved." Peter Ratcliffe, Chief Executive Officer of P&O Princess, said: "We believe that the combination with Carnival, which will create one of the world's leading cruise vacation groups, is an exciting opportunity for our shareholders and employees. It will also provide passengers and travel agents throughout the world with a wide range of brands and products to experience and sell and should further increase the cruise industry's share of the wider vacation market. "The Combined Group, with its industry leading brands, global reach, potential for synergies and strong balance sheet, has the potential to accelerate the creation of value for our shareholders. In addition, the DLC structure allows all our shareholders to retain their shares and thus participate in this exciting future. "We look forward to joining with Carnival and working with them to create the world's leading cruise vacation group and help make the combination the outstanding success we all believe it will be." This summary should be read in conjunction with the full text of this announcement. To see Full Text of Announcement: http://bankrupt.com/misc/Recommendation.htm CONTACT: P&O PRINCESS CRUISES PLC Phone: +44 (0) 20 7805 1200 Caroline Keppel-Palmer Phone: +44 (0) 7730 732015 SCHRODER SALOMON SMITH BARNEY Phone: +44 (0) 20 7986 4000 Robert Swannell Wendell Brooks Peter Tague Ian Hart David James (Corporate Broking) CREDIT SUISSE FIRST BOSTON (EUROPE) LTD Phone: +44 (0) 20 7888 8888 Tom Reid (Corporate Broking) Brunswick (London) Phone: +44(0) 20 7404 5959 Sophie Fitton Sarah Tovey Brunswick (New York) Steve Lipin Phone: +1 212 706 7867 POWERGEN AG: Mulls Closing Two Coal-fired Power Stations -------------------------------------------------------- Low wholesale power prices in the U.K. may force electricity company, Powergen, to close two coal-fired power stations in Drakelow near Burton-on Trent and High Marnham in Nottinghamshire, says the Financial Times. Powergen, which considered the matter following a review of its 11 power stations, also said it might mothball the stations. It earlier planned to defer operations in its large oil-fired power station on the Isle of Grain in Kent, as well as the rest of its Killingholme gas-fired plant in Lincolnshire, but decided against it following TXU acquisitions. Both plants are still expected to be mothballed if the slump in wholesale electricity prices persists, says the report. Wholesale electricity prices in the region have fallen by 40% since 1998. Powergen brought the coal-fired power plants as part of a t1.6 billion deal to acquire the U.K. retail business of TXU Europe, which went into administration last year. High Marnham, which opened in 1959, is Britain's oldest coal- fired power station and employs 119 workers. Drakelow, which opened in 1965, employs 88. "The older a station is, the less economic and the less environmentally friendly it is," says Powergen. REGUS PLC: Indigo Shows Signs of Dropping Possible Takeover Bid --------------------------------------------------------------- New York private equity investor Indigo Capital LLC decreased its interest in Regus plc by a total of 13.5 million shares, reducing the holding to 12.79%. The move suggests Indigo may be backing from a possible takeover deal it suggested just one day before, the Daily Deal observes. Without presenting a formal approach, Indigo had said it is interested in a deal, which may include a takeover for the British office rental group. Regus reportedly declined to comment. But signs that investors don't believe Indigo will push with its plan of offering a GBP204 million (US$327.4 million) bid came when Regus' shares fell 4.21% to 22.75 pence Wednesday on the London Stock Exchange. Meanwhile, London-based Alchemy Partners, during that time says it might contest Indigo's offer should Indigo go for it. The private equity firm bought 58% of the profitable British business of Regus Group for GBP57 million in December, leaving the latter a 42% right. Regus' U.S. operation is losing about GBP2 million a month, and while its British business remains profitable, a survey by the Confedaration of British Industry warns demand that for office space in the UK to decline by 11% in the first half of the year. The sector had already experienced a decline of 15% in rents over the past year. CONTACT: REGUS PLC Stephen Jolly Group Communications Advisor Phone: 01932 895138 UNITED PAN-EUROPE: Court Approves Disclosure Statement ------------------------------------------------------ In connection with its ongoing restructuring, United Pan-Europe Communications N.V., the financial holding company of the UPC group, announces that, on January 7, 2003, the United States court approved the disclosure statement filed on December 3, 2002 (as amended on December 23, 2002 and amended and supplemented at the US court hearing) in UPC's Chapter 11 case and UPC may now begin soliciting acceptances for its proposed recapitalization. Creditors and shareholders of UPC as of January 7, 2003 will be entitled to vote on UPC's US Chapter 11 plan of reorganisation, and creditors of UPC as of January 7, 2003 will be entitled to submit their claims to the Dutch Administrator to vote on the plan of composition (Akkoord) in UPC's moratorium proceeding in the Netherlands. UPC expects to mail the approved disclosure statement and related ballots on or before January 13, 2003. Final ballots for voting on the Chapter 11 plan are due by 5:00 PM EST on February 14, 2003. In UPC's moratorium proceedings in the Dutch court, creditors of UPC must also submit their claims to the Dutch Administrator by February 14, 2003. The confirmation hearing on the Chapter 11 plan of reorganisation is scheduled for February 20, 2003. The UPC creditors' meeting on the Dutch Akkoord is scheduled for February 28, 2003. UPC is also pleased to announce that the creditors' committee has expressed its support for the company's recapitalisation and has issued a letter to the company's unsecured creditors supporting the recapitalisation and recommending approval of the proposed restructuring. UPC believes that the approval of the disclosure statement is an important milestone in the company's recapitalisation process and continues to anticipate that the moratorium process in the Dutch court and the Chapter 11 process in the United States court will be completed by the end of the first quarter 2003. A copy of all SEC filings relating to UPC's Chapter 11 and the moratorium process may be found through the recapitalisation section of the UPC web site at http://ww.upccorp.com ************* 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. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *