/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/001102.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, November 2, 2000, Vol. 1, No. 126 Headlines B E L G I U M NEW EURO: Declared Insolvent SUNAIR: To Declare Insolvency, Personnel Approve Agreement C Z E C H R E P U B L I C LET KUNOVICE: Loses License for Production, Declares Bankruptcy F R A N C E DURAND ALLIZE: To File for Bankruptcy DURAND ALLIZE: In Default of Payment on Debts, Needs a Buyer G E R M A N Y BROKAT: Posts Third Quarter Net Loss of DEM56.5 Million DECHANT: Insolvency Threatens 1,000 Jobs GIGABELL: Court Will Decide on Final Liquidation GIGABELL: Jippii of Finland Buys Parts L A T V I A LATVIJAS UNIBANKA: HBS to Sell Its Holding N E T H E R L A N D S AJAX: Posts Net Loss of NLG19 Million LETSBUYIT: Seeks Cash Injection WORLD ONLINE: Reports a Loss of EUR101.3 Million WORLD ONLINE: Tiscali to Publish Terms R U S S I A GUSEVSKY CRYSTAL: Crystal Firm to Appeal Ruling U N I T E D K I N G D O M 1ST MARKETING: Liquidation Proceedings ABBOTTS BARTON: Liquidation Proceedings ANSTON (NORTH): Liquidation Proceedings B & W MOTORS: Liquidation Proceedings BATTLEBOROUGH GARDEN: Liquidation Proceedings BIZZBUILD: Posts First-Half Loss of 2.74 Million Pounds CLUST.COM: Liquidation Proceedings GRANGEHILL SERVICES: Liquidation Proceedings HEATHER LEE: Liquidation Proceedings HERTFORD AUTO: Liquidation Proceedings HIGHFOX LTD: Liquidation Proceedings ============= B E L G I U M ============= NEW EURO: Declared Insolvent ----------------------------- Le Soir & World Reporter noted last week that workers at Belgian group New Euro Tube met at Hornu to find out about their future. The company, which subcontracts for Pantochim, was forced to declare itself insolvent, following the insolvency of Pantochim. Workers discovered that the administrators had decided to retain 70 of the 180 workers to assure current contracts. SUNAIR: To Declare Insolvency, Personnel Approve Agreement ---------------------------------------------------------- The workers at Belgian tour operator Sunair have accepted a redundancy agreement following the group's declaration of insolvency on October 9, La Libre Belgique & World Reporter reported last week. The personnel negotiation ends almost two weeks of talks. Sunair will cease to operate on November 1. According to the report workers with a permanent contract will receive their legal compensation. The remaining workers will benefit from outplacement plans, receiving jobs training and placement help. A closure bonus of BFr10,000 per year of seniority will also be paid. =========================== C Z E C H R E P U B L I C ============================ LET KUNOVICE: Loses License for Production, Declares Bankruptcy --------------------------------------------------------------- LET Kunovice, declared bankrupt a week ago, saw its license for production of aircraft and aircraft parts expire and thus must not distribute and sell its products before the license is renewed, CTK & Euromoney reports this week. "Chief executive officer Turner Bostwick did not take the license for aircraft production into account and has not prolonged it," according to an unnamed company source. Trade union leader Zdenek Zajicek confirmed that the license had expired. LET will have to undergo an audit of experts of the Office for Civil Air Transport who will inspect the plant and decide if the license may be renewed. =========== F R A N C E =========== DURAND ALLIZE: To File for Bankruptcy ------------------------------------- Leisure group Durand-Allize has been declared unable to pay its debts as they fall due and hopes to be placed in receivership by the Paris commercial court, Le Figaro & World Reporter noted last week. The group confirmed in an interview last week that it was still looking for a partner to avoid going into receivership, although the decision to file for bankruptcy was made two days earlier by the board of directors. DURAND ALLIZE: In Default of Payment on Debts, Needs a Buyer ------------------------------------------------------------ French leisure group Durand Allize has declared itself in default of payment on its debts this week, La Tribune & World Reporter reports. The company, which specializes in the operation of large aquaria, is listed on the Nouveau Marche. The group said that it was still looking for a buyer but that no final decisions have been taken. Chairman Fabrice Durand Allize has devised an emergency plan to help the company through the winter. The company suffered this year as a result of weather conditions in France, especially hurricane Erika, and the strike action by French lorry drivers. Since the beginning of the year Durand Allize has invested FFr110m (FFr30m from loans) in new sites. Trading in the company's shares was suspended last week. ============= G E R M A N Y ============= BROKAT: Posts Third Quarter Net Loss of DEM56.5 Million -------------------------------------------------------- Dow Jones Newswires reported yesterday that Brokat AG, Stuttgart, Germany posts its results for the three months to September 30 as sales of DEM56.9 mln and an EBIT loss of DEM19.7 mln. There was a net loss of DEM56.5 mln, which includes DEM11.4 million cost of employee stock option and DEM16.7 million amortization of good will and other intangible assets from acquisitions. DECHANT: Insolvency Threatens 1,000 Jobs ---------------------------------------- Dechant, the German construction company, is insolvent, Frankfurter Rundschau & World Reporter reports this week. According to the report, if the company closes down, more than one thousand jobs within the company and further jobs among suppliers and subsidiaries will be lost. The company has not disclosed any information on reasons for the insolvency. GIGABELL: Court Will Decide on Final Liquidation ------------------------------------------------ The plan by Finnish group Jippii to rescue the bankrupt German telecom and Internet group Gigabell (listed on Germany's Neuer Markt) via the acquisition of a majority stake has met with failure. Jippii will take over part of Gigabell's business for roughly DM10bn. A Frankfurt court will decide on the final liquidation process in the coming days, Suddeutsche Zeitung & World Reporter reports this week. A report will be submitted by official receiver Dirk Pfeil to the court this week. Originally, Jippii was to buy a majority stake in Gigabell from the latter's founder and largest shareholder Rudolf Zawrel, who owns 56 percent of the company. Pfeil indicated, however, that the two parties could not agree on terms. Nevertheless, the transfer of operating control to the Finnish company has been carried out successfully, around 180 of the 200 jobs have been safeguarded. GIGABELL: Jippii of Finland Buys Parts -------------------------------------- Agence France-Presse reports earlier this week that Finnish Internet services provider Jippii Group has agreed to buy a large slice of the business operations of troubled German Internet services group Gigabell for five million euros (4.25 million dollars), court administrator Dirk Pfeil said. Pfeil was appointed as Gigabell's administrator after the group filed for insolvency in the middle of September. The deal, to be carried out via Jippii's wholly owned German unit Jippii GmbH, comprises the telephone and ISP operations of Gigabell, as well as software and hardware agreements related to those operations. The operations involve some 150 employees and 60,000 customers. The Finnish group will not however take over any of Gigabell's debt, Pfeil said. The move would enable Jippii, formerly Saunalahti, to establish a foothold in the important German market for Internet and telecommunications. Jippii had originally negotiated the possibility of acquiring a 56 percent stake in Gigabell. However, the terms mentioned in the conditional agreement "were not met due to reasons beyond Jippii's control," Pfeil said. Trading in Gigabell shares had been suspended until further notice on the Frankfurt stock exchange. =========== L A T V I A =========== LATVIJAS UNIBANKA: HBS to Sell Its Holding ------------------------------------------ BNS & Euromoney reported yesterday that High Bridge Services (HBS), the second biggest shareholder of Latvijas Unibanka, agreed to sell its holding in the bank to Sweden's Skandinaviska Enskilda Banken (SEB). HBS also decided to withdraw from the Stock Market Commission the documents it submitted to go ahead with its counter-offer for purchase of Unibanka stock and retract its request to call an extraordinary meeting of Unibanka shareholders, HBS representative Greg Krasovsky reported. SEB, the biggest shareholder of Unibanka, earlier in the week raised the price for purchase of the bank's stock from the previous offered price of 1.9 lats (USD 3.03) per share to 2.05 lats (USD 3.26) per share. HBS also sent a statement to the rest of Unibanka's shareholders expressing gratitude over their response by reporting readiness to sell their holdings in Unibanka to HBS if the price was 2 lats per share. Shareholders controlling nearly 40 percent of Unibanka stock expressed readiness to sell shares for this price. "Our combined efforts resulted in SEB group's latest decision to increase the price offered to Unibanka shareholders to 2.05 lats per share," HBS said adding that without support of other minority shareholders it would have been extremely difficult to do this. HBS also demanded a general meeting of Unibanka shareholders be called within a month. The company said that the bank's articles should be amended to reflect interests of the small shareholders and include representatives of the small shareholders on the bank's council. Moreover, HBS also regarded as necessary setting up a shareholders commission for assessing usefulness of exclusion of Unibanka stock from the official list of the Riga Stock Exchange. SEB's stock buy-out offer will be in effect through Nov. 13. ===================== N E T H E R L A N D S ===================== AJAX: Posts Net Loss of NLG19 Million ------------------------------------- Amsterdam soccer team AFC Ajax NV (N.AFC) said fiscal 2000 ended with a loss of NLG19 million, compared with a NLG13-million profit last year, Dow Jones Newswires reports this week. It said the loss is due mainly to lack of income from player transfers. LETSBUYIT: Seeks Cash Injection ------------------------------- The pan European e-tailer Letsbuyit.com is understood to be looking for a cash injection by the end of the year through a strategic partnership with an established retailer, The Times noted this week. The company said it was in talks with potential partners. However, investors have become increasingly focused on the cash balances of e-tailers, as the list of dotcom casualties has lengthened - including the recent failure of Boxman, the high-profile CD e-tailer. Letsbuyit is understood to be keen to minimize any concerns about its cash position. The priority is understood to be a link with a big offline retailer through an equity stake. This would provide a cash injection, as well as strengthening Letsbuyit's purchasing position and helping to raise margins. After that it would consider deals with media companies, logistics companies, or Internet portals. In the three months to June 30, it incurred pre-tax losses of about E43.3m. It spent E29m on marketing. THE INDUSTREE: BarcoNet to Takeover EUR3.5 Million Liabilities --------------------------------------------------------------- BarcoNet said it will acquire Dutch broadband data communications company The Industree BV from a group of venture capitalists, Dow Jones Newswires reports earlier this week. BarcoNet, a unit of Belgian electronics group Barco NV (B.BAE) which is due to list as a separate unit in November, will pay 5 million BarcoNet shares and take over EUR3.5 million of Industree's liabilities. BarcoNet said at a press conference that it expects to close the deal early next year, conditional on its final demerger from Barco. Barco shareholders are scheduled to vote on the demerger Nov. 9. Amortization of Industree's research and development under U.S. accounting rules will push BarcoNet into the red in 2000, the company said. WORLD ONLINE: Reports a Loss of EUR101.3 Million ------------------------------------------------ Dutch Internet service provider World Online International NV reported a fourth-quarter loss of EUR101.3 million on sales of EUR56.9 million, Dow Jones Newswires reports yesterday. The company, which had its initial public listing in March 2000, didn't give comparable earnings figures from 1999, but said sales were up 3.0 percent from the third quarter and up 250 percent from the same quarter last year. WORLD ONLINE: Tiscali to Publish Terms --------------------------------------- Dow Jones Newswires reports this week that Tiscali SpA says it will publish the offer document and prospectus containing the terms of its offer for World Online International NV no later than Monday Nov. 6. On Sept. 7, Tiscali bid 0.4891 of its own shares for each share of World Online, saying that it would announce a tender period and definitive offer within six weeks. Media reports from Italy about a delay in the offer pushed down the stock of both companies Monday. Responding to the reports, World Online spokeswoman Margaret van Kempen said the companies were in the process of completing an official tender offer. "Everything is going according to plan: any delay would be a matter of a day or two." World Online shares were down over 4 percent earlier Monday but recovered slightly after Tiscali's statement that it would publish the official offer soon, Dow Jones Newswires said. =========== R U S S I A =========== GUSEVSKY CRYSTAL: Crystal Firm to Appeal Ruling ----------------------------------------------- Managers of the Gusevsky Crystal Factory say they will appeal after the Vladimir region arbitration court refused to declare bankrupt the debt-ridden plant, The Moscow Times reports this week. "We suspect the Federal Bankruptcy Service of acting in bad faith," said Vladimir Vladykin, a member of the Gus-Khrustalny board. "A disguised takeover attempt is underway." The factory is best known by the town in which it is located, Gus-Khrustalny in the Vladimir region, about 100 kilometers east of Moscow. Accordingly, it is not the first time the bankruptcy service has been accused of favoring third parties or catering to the needs of its managers, who have earned a nasty reputation for profit skimming and transfer pricing in the oil, aluminum, steel and other major industries. Transfer pricing refers to a holding company buying materials from its subsidiaries at a discount and reselling it. This concentrates wealth in the holding company, weakens minority shareholders and saves tax. And Gus-Khrustalny is not the first prosperous business to emerge from the ruins of a company left sinking with a load of debts after years of unsuccessful operations. Vladykin refused to identify who he believed is trying to take over the works, which has flourished after a broad restructuring of the 242-year-old plant in 1998. Major production facilities, know-how and most employees were transferred to a newly founded company operating in the same plant, while most of the debts were left on the shoulders of the original enterprise. Company managers cut a deal with local officials, a regional branch of the Tax Ministry, domestic gas retailer Mezhregiongaz and other commercial creditors, but hit a brick wall when talking to the local office of the bankruptcy service whose deputy head, Alexander Yakovlev, refused to bankrupt the plant. Pressed to liquidate the old company by the managers of the crystal factory, Yakovlev would not explain his stance, saying only that he wanted the issue left to the discretion of the court. Yakovlev put the factory on a list of socially important enterprises that cannot be declared bankrupt without approval of the bankruptcy service. The factory's managers now intend to take it off the list and bypass him. Gus-Khrustalny forecasts sales of dollars 12 million this year, up 50 percent from last year, and has agreed to repay part of its sister company's debts, which have soared to 82 million rubles (dollars 3 million). But the plant's long-term problems -- lack of financing, poor protection of property rights and obsolete technology -- are also typical. Officials at Gus- Khrustalny said their company loses a quarter of prospective revenue due to piracy by illegal producers. =========================== U N I T E D K I N G D O M =========================== 1ST MARKETING: Liquidation Proceedings -------------------------------------- Company Name: 1st Marketing Solutions Ltd Company No: 3681206 Com. Business: Telemarketing Appointed on: 29/09/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Tania Clark IPno: 8993 Firm Name: Clark & Lowman Address: PO Box 27046 City Postcode: London N2 0ZU ABBOTTS BARTON: Liquidation Proceedings ---------------------------------------- Company Name: Abbotts Barton Group Ltd Company No: 2585523 Com. Business: Holding Co Appointed on: 29/09/00 Type: Members Appointed by: Members Liquidators: Jeremy M Willmont IPno: 9044 Philip Sykes 6119 Firm Name: Moore Stephens Booth White Address: 1 Snow Hill City Postcode: London EC1A 2EN ANSTON (NORTH): Liquidation Proceedings ----------------------------------------- Company Name: Anston (North) Ltd Company No: 3699909 Com. Business: Petrol Station/Shop/Motor Repairs Appointed on: 29/09/00 Type: Creditors Appointed by: Creditors Liquidators: Kian Seng Tan IPno: 8032 Firm Name: K S Tan & Co Address: 10-12 New College Parade Finchley Road City Postcode: London NW3 5EP B & W MOTORS: Liquidation Proceedings -------------------------------------- Company Name: B & W Motors (Manchester) Ltd Company No: 910587 Appointed on: 29/09/00 Type: Creditors Appointed by: Creditors Liquidators: Brian Green IPno: 8709 Firm Name: KPMG Address: 8 Princes Parade City Postcode: Liverpool L3 1QH BATTLEBOROUGH GARDEN: Liquidation Proceedings ---------------------------------------------- Company Name: Battleborough Garden Centres Ltd Previous Name: Sanders Garden Centres Ltd Company No: 3912757 Com. Business: General Commercial Co Appointed on: 29/09/00 Type: Members Appointed by: Members Liquidators: Ian McIntyre IPno: 6082 Firm Name: Albert Goodman Address: Mary Street House Mary Street City Postcode: Taunton TA1 3NW BIZZBUILD: Posts First-Half Loss of 2.74 Million Pounds -------------------------------------------------------- The Times noted yesterday that Bizzbuild (property) reported a debut first-half loss of ?2.74million. There is no dividend. CLUST.COM: Liquidation Proceedings ----------------------------------- Company Name: Clust.Com UK Ltd Previous Name: Limeledge Ltd Company No: 3964344 Com. Business: Group Buying E-Commerce Appointed on: 29/09/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Stephen Franklin IPno: 6029 Firm Name: Panos Eliades Franklin & Co Address: 6 Bloomsbury Square City Postcode: London WC1A 2LP GRANGEHILL SERVICES: Liquidation Proceedings --------------------------------------------- Company Name: Grangehill Services Ltd Company No: 3448523 Com. Business: Railway Maintenance/Construction Appointed on: 29/09/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Mark Reynolds IPno: 1192 Firm Name: Valentine & Co Address: 4 Dancastle Court 14 Arcadia Avenue City Postcode: London N3 2HS HEATHER LEE: Liquidation Proceedings ------------------------------------- Company Name: Heather Lee Ltd Company No: 3853331 Appointed on: 29/09/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Derek L Woolley IPno: 6047 Allan Cooper 5546 Firm Name: Poppleton & Appleby Address: 93 Queen Street City Postcode: Sheffield S1 1WF HERTFORD AUTO: Liquidation Proceedings ---------------------------------------- Company Name: Hertford Auto Spares Ltd Company No: 3894733 Com. Business: Motor Factors Appointed on: 29/09/00 Type: Creditors Appointed by: Creditors and Members Liquidators: Alan G Haden IPno: 8823 Firm Name: Haden Address: Haden House 485 Birmingham Road City Postcode: Bromsgrove B61 0HZ HIGHFOX LTD: Liquidation Proceedings ------------------------------------- Company Name: Highfox Ltd Company No: IR Appointed on: 29/09/00 Type: Members Appointed by: Members Liquidators: Eugene McLaughlin IPno: Firm Name: EML & Associates Address: Taney Lodge Taney Road City Postcode: Dublin 14 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. Lexy Mueller, Mercy Villacastin and Cristina Pernites Editors. Copyright 2000. 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 $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 $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *