/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/001215.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, December 15, 2000, Vol. 1, No. 156 Headlines A U S T R I A LAUDA AIR: Losses Exceed Sch1.1Billion Threshold B E L G I U M LERNOUT & HAUSPIE: Deminor Proposes Sale of Parts LERNOUT & HAUSPIE: Easdaq May also Suspend Share C Z E C H R E P U B L I C H-SYSTEM: To File for Bankruptcy Proposal MORAVSKA SLADOVNA: Malteire Soufflet Buys Bankrupt Malt Producer E S T O N I A UHISPANK: Seeks Delisting from Tallinn Bourse G E R M A N Y DEUTSCHE BAHN: Govt Set to Control Troubled Railway Operator EM.TV: Munich Prosecutor Probes Top Managers L A T V I A LATVIJAS KUGNIECIBA: Goes for Privatization P O L A N D DAEWOO FSO: Goes for Restructuring STATE RAILWAYS: Derailed Due to Poor Financial Management S W E D E N NOVADA: Cash-Strapped IT Company Asks Principal Owner for Loan U N I T E D K I N G D O M ABERDEEN CITY: Liquidation Proceedings ABERDEEN SLATING: Liquidation Proceedings AEROSPACE SYSTEMS: Goes into Receivership BRYSON COOKWARE: Liquidation Proceedings CAMMELL LAIRD: Faces Financial Crisis, Axes 250 Jobs CORUS: Government Makes Plans to Deal with Job Losses EQUITABLE LIFE: Regulators Allowed to Mask Exposure EQUITABLE LIFE: To Sell Managed Assets Arm FINEONE LTD: Liquidation Proceedings FOREIGN & COLONIAL: Shareholder Calls to Wind Up FORTE HOTELS: Up for Sale JAMES GOWANS: Liquidation Proceedings LITTLEWOODS: Faces Financial Crisis NISSAN MICRA (UK): Nissan Close UK Plant RS PUMPS: Liquidation Proceedings ROBERT JONES: Liquidation Proceedings VAUXHALL: Workers Express Anger Over Plant Closure WFF LTD: Liquidation Proceedings WEST NILE: Liquidation Proceedings ============= A U S T R I A ============= LAUDA AIR: Losses Exceed Sch1.1Billion Threshold ------------------------------------------------ Lauda Air, the Austrian airline, will make losses of Sch1.1bn this year due to large increases in fuel prices, the strong dollar, unsuccessful foreign currency activities and provisions for its Italian arm, Der Standard & World Reporter reports this week. Lauda Air and AUA, which holds 36 percent of the airline, have been in a dispute over the last few weeks on how high Lauda Air's losses would be. Niki Lauda, the former head of Lauda Air, had predicted losses of Sch558m, but AUA's accountants estimated losses of Sch1.09bn as far back as September. Mr Lauda altered leasing contracts in October to avoid the threat of insolvency. ============= B E L G I U M ============= LERNOUT & HAUSPIE: Deminor Proposes Sale of Parts -------------------------------------------------- Deminor, the Belgian association that represents minority shareholders, wants ailing Belgian speech technology company Lernout & Hauspie Speech Technology (LHSP) to sell part of its assets to finance its debts, De Standaard & World Reporter noted this week. This goes against the speech technology company's wishes to keep LHSP together. Deminor would like to see a receiver or supervisor appointed who will make full use of legal possibilities. The association states that LHSP could use Chapter 3 of the commercial code, which stipulates that a court could give its permission to a sell off if this could save employment and economic activity in the company. LERNOUT & HAUSPIE: Easdaq May also Suspend Share -------------------------------------------------- European exchange Easdaq has not yet decided to suspend the listing of ailing Belgian speech technology company Lernout & Hauspie Speech Technology (LHSP). U.S. exchange NASDAQ previously suspended the listing following the company's filing for Chapter 11 in the U.S., but Easdaq will await the decision of the Belgian court. Easdaq is investigating the Belgian company. Its research may lead to a disciplinary procedure or suspension of the listing. Easdaq furthermore wants insight into the audit report by international accountancy KPMG, De Standaard & World Reporter reports this week. =========================== C Z E C H R E P U B L I C ============================ H-SYSTEM: To File for Bankruptcy Proposal ------------------------------------------ MPs rejected a proposal to offer assistance to clients of 24 percent state-owned H-System. The clients said up to Kc 1.5 bln they gave the developer to build their homes disappeared before it went bankrupt in 1997. PM Milos Zeman again denied that CSSD ever received any financial support from H-System, Czech A.M. reports this week. Meanwhile, Svatopluk, one group of H-System clients who continued building residences after bankruptcy petitions were filed, could lose more than the Kc 450 mln paid to the developer. H-System receiver Ivo Mraz says the houses and plots could be sold as a whole, leaving Svatopluk members with only some of what they invested following the filing of bankruptcy proposals. Their lawyer feels it would take much effort to prevent them from being evicted. MORAVSKA SLADOVNA: Malteire Soufflet Buys Bankrupt Malt Producer ----------------------------------------------------------------- Bankrupt Czech malt producer Moravska Sladovna Kromeriz (MSK) has been acquired by French trading company Malteire Soufflet (MS). MS offered Kcs 850m for MSK and already has paid an advance payment of Kcs 150 million, Hospodarske Noviny & World Reporter reports this week. The whole company will be sold. The biggest creditor of MSK is Obchodni Sladovny Prostejov and the Tchecomalt Group. ============= E S T O N I A ============= UHISPANK: Seeks Delisting from Tallinn Bourse --------------------------------------------- Uhispank will send to the listing commission of the Tallinn Stock Exchange an application to have its shares removed from the main list of the bourse, the bank said. In accordance with Helsinki Stock Exchange rules and regulations, Skandinaviska Enskilda Banken's cash offer for Uhispank shares will be in force till Dec. 29. Therefore Uhispank will apply for delisting in Helsinki early next year, BNS & Euromoney reports yesterday. After the bank leaves the stock exchange Uhispank shareholders can sell their shares on the third market. SEB will buy the shares within one year of the Estonian bank's departure from the Tallinn bourse. SEB controls 96 percent of the Uhispank stock, BNS noted. ============= G E R M A N Y ============= DEUTSCHE BAHN: Govt Set to Control Troubled Railway Operator ------------------------------------------------------------- The Cabinet is set to agree on the formation of an inter- ministerial working group to ensure the government is kept up to date on the financial affairs of troubled railway operator Deutsche Bahn. At a meeting on Wednesday, the German Cabinet was set to decide on measures that will extend the level of state control over Deutsche Bahn AG, Handelsblatt reports this week. Deutsche Bahn is still state owned, but its privatization was provided for within the terms of the 1994 railways reform. It assumed the legal status of a public limited company (AG) in preparation for its flotation, a measure that has now been postponed owing to the company's financial difficulties. Last week it was made known that the Federal Audit Court plans to look into Deutsche Bahn's books. This was described by the Court itself as merely a routine measure. But the move was interpreted by some members of the Deutsche Bahn management as a first attempt by the government to assert its authority over the company, Handelsblatt noted. EM.TV: Munich Prosecutor Probes Top Managers --------------------------------------------- Reuters reports this week that the Munich state prosecutor said on Wednesday it was investigating alleged breaches of securities law by top managers at troubled German media company EM.TV & Merchandising. The prosecutor said it was investigating EM.TV Chief Executive Thomas Haffa and his brother Florian, formerly EM.TV's chief financial officer, along with others. Florian Haffa resigned as deputy chief executive on December 3 after the company slashed profit forecasts for the year just weeks after it said earnings targets were not under threat. EM.TV faces six lawsuits from investor groups who accuse management of concealing its financial problems. The German securities regulator is studying moves in its share price that could lead to an investigation into possible insider dealing. The spokesman declined to comment on the charges against the Haffa brothers. EM.TV said last week that it had always acted in good faith and on best information. EM.TV shares dropped as much as 4.1 percent immediately after the news of the investigation but rallied to trade 1.75 percent lower at 6.72 euros by 1636 GMT, Reuters noted. =========== L A T V I A =========== LATVIJAS KUGNIECIBA: Goes for Privatization ------------------------------------------- The Latvian government Tuesday supported the terms for privatization of the state-owned Latvijas Kugnieciba (Latvian Shipping Co, LASCO) under which 68 percent of the company's registered capital or 136 million shares will be sold to a strategic investor, BNS & Euromoney reports this week. At the same time, 15 percent of the registered capital or 34 million shares could be sold against privatization vouchers through a public offer and 6 percent or 8 million shares will be sold to LASCO current and retired employees, also against privatization vouchers. This is the option of privatization terms proposed by the World Bank financial advisors. The Latvian Economics Ministry in its proposal suggested to make a public offer of 17 percent LASCO shares and to sell to current and retired employees 4 percent of shares. The government resolved that the LPA board, council and trustees have to approve the LASCO privatization terms and make the final decision about privatization of the company by Dec. 23, BNS noted. =========== P O L A N D =========== DAEWOO FSO: Goes for Restructuring ----------------------------------- Daewoo-FSO hopes to save at least zl. 150 million ($33 million) through the restructuring of its Polish operations, said Zofia Duran, the financial director of Daewoo-FSO. The carmaker has been preparing a restructuring plan since the end of October, prompted by the bankruptcy of its Korean parent company and the steady weakening of the Polish car market, Warsaw Business Journal reports this week. Details of the plan will be announced in January, said Krystyna Danilczyk, the press spokeswoman for Daewoo-FSO. STATE RAILWAYS: Derailed Due to Poor Financial Management --------------------------------------------------------- Poland A.M. reports yesterday that the Supreme Board of Inspection (NIK) has charged the former and incumbent executives at the Polish State Railways (PKP) with mismanagement, causing losses of some zl.300 million. NIK says PKP's liquidity ratio, optimally around 1.5-2.0, reached 0.66 in 1999. Although most of the charges presented by NIK concern decisions of the former PKP board of directors headed by Jan Janik, auditors also put some of the blame on present management, including president Krzysztof Celinski. PKP financed its current activities with money earmarked for investments as well as with bank loans, thus breaching loan agreements, Poland A.M. noted. =========== S W E D E N =========== NOVADA: Cash-Strapped IT Company Asks Principal Owner for Loan --------------------------------------------------------------- Cash-strapped IT company Novada has applied to its principal owner Dendera Holding for a loan. Dendera Holding, which owns 42 percent of Novada, will discuss the request at a board meeting. Novada's managing director Anders Widesjo refused to say exactly how much his company was looking to borrow from Dendera Holding, although he revealed that the latter had provided financial assistance on numerous occasions in recent months, Dagens Industri & World Reporter reported last week. Novada is to sell two of its five subsidiaries, reorganize its operations into two rather than four business areas and cut staff in an effort to improve its financial position. It has also decided to carry out a balance sheet audit. Trading in Novada's shares was suspended on Aktietorget yesterday. =========================== U N I T E D K I N G D O M =========================== ABERDEEN CITY: Liquidation Proceedings --------------------------------------- Company Name: Aberdeen City Publishers Ltd Company No: SC Appointed on: 06/11/00 Type: Creditors Appointed by: Creditors Liquidators: Blair C Nimmo IPno: 8208 Firm Name: KPMG Address: 37 Albyn Place City Postcode: Aberdeen AB10 1JB ABERDEEN SLATING: Liquidation Proceedings ------------------------------------------ Company Name: Aberdeen Slating Co Ltd Company No: SC Appointed on: 06/11/00 Type: Creditors Appointed by: Creditors Liquidators: Blair C Nimmo IPno: 8208 Firm Name: KPMG Address: 37 Albyn Place City Postcode: Aberdeen AB10 1JB AEROSPACE SYSTEMS: Goes into Receivership ----------------------------------------- Celtic Aerospace Ventures (CAV) will acquire the assets of County Durham-based Aerospace Systems & Technologies (AS&T) from receivers Ernst & Young. The deal comes just two weeks after AS&T went into receivership, which was followed by an intensive series of negotiations to find a suitable buyer, The Northern Echo reports this week. The figures involved in the deal are not being revealed at present but the new company is being backed by a major offshore investor together with the Royal Bank of Scotland and Barclays Bank. A spokesman for CAV said: "It was absolutely essential to complete this deal quickly for the sake of the workforce and to maintain the confidence of customers, particularly that of BAE Systems in supplying wing components for the Airbus. The company, which boasts a strong order book, manufactures a variety of aerospace components and ice protection systems from a 120,000 sqft facility in Consett. In addition to the 250 jobs in the North-East, the CAV acquisition secures 42 jobs at a design facility in Manchester. The CAV spokesman added: "The loyalty of the customers and workforce has been above and beyond expectations, and this has been a key factory in giving everyone confidence to conclude the deal." BRYSON COOKWARE: Liquidation Proceedings ----------------------------------------- Company Name: Bryson Cookware Ltd Company No: IR Appointed on: 06/11/00 Type: Members Appointed by: Members Liquidators: Michael Gray IPno: Firm Name: Gray Murray Address: 40 Belvedere Place City Postcode: Dublin 1 CAMMELL LAIRD: Faces Financial Crisis, Axes 250 Jobs ---------------------------------------------------- The Independent reported yesterday that the Cammell Laird shipyard on Merseyside is to axe 250 jobs amid wrangles over a 51m pounds contract to upgrade an Italian cruise liner. The jobs will go immediately, it was announced yesterday, due to continuing uncertainty over a contract to work on the Costa Classica, which was ordered to turn back while en route to the Birkenhead yard last month. Italy's Costa Crociere company said five days ago that talks in Genoa over the ship were going quite well. The cutback will leave 680 workers and 263 apprentices at the yard. John Quigley, of the engineering union AEEU, said the redundancies were deeply depressing news, especially so near to Christmas. CORUS: Government Makes Plans to Deal with Job Losses ------------------------------------------------------ The British government plans to cope with thousands of job losses from a massive restructuring of plants owned by Anglo-Dutch steel giant Corus, Reuters reports this week. Under threat of closure is the Llanwern plant in south Wales and heavy job casualties are also expected from the scaling back of operations at Redcar in northeast England. The Welsh Office and the Department of Trade and Industry were quoted by the FT in its website report as saying they were preparing for the worst, and expected an announcement from Corus in mid-January. Industry experts believe Corus could axe up to 8,000 jobs to return the loss-making steelmaker to profitability. Last week a Corus spokesman told Reuters the economic situation had deteriorated even further in Wales since the company reduced production there during October in a cost-cutting exercise. The plans for a Llanwern rescue package are being coordinated between the two government departments and the Welsh assembly. Unions also expected closure plans to follow a board meeting in the second week of January but say no job cuts are likely to take effect before an expected general election in May. Industry ministers are understood to have spoken to Corus Chairman Brian Moffat since the board meeting last week that forced out the two joint chief executives John Bryant and Fokko van Duyne. They were believed to oppose closing one of the four main plants, preferring to spread the cuts across the UK operation. The depressed euro has opened Europe up to cheap imports from low-cost overseas markets, as well as reducing the sterling value of Corus's exports to Europe, Reuters noted. EQUITABLE LIFE: Regulators Allowed to Mask Exposure --------------------------------------------------- Pressure is mounting on the Government to consider compensation for the 1 million policyholders hit by the Equitable Life crisis after it emerged that the regulators approved accounting policies which allowed Britain's oldest mutual life insurer artificially to boost its capital base by 1.5bn pounds last year, The Independent reports yesterday. The Financial Services Authority allowed Equitable Life to boost its capital by more than 1bn pounds through a reinsurance deal with Employers Re. The deal let Equitable treat its liabilities to holders of guarantee annuity options as off balance sheet. Equitable Life acted legally, and gave a full account of its accounting treatment in its annual Treasury returns. However, the fact that these lax accounting policies were waved through begs questions about the extent to which regulators were taken in by Equitable Life's aura of invincibility. Policyholders believed the high returns were based on the firm's refusal to pay commissions to independent financial advisers. In fact, they were based on the firm's belief that it could live with a higher degree of risk than competitors were prepared to accept. EQUITABLE LIFE: To Sell Managed Assets Arm ------------------------------------------ Reuters reported yesterday that Equitable Life is ready to sell its asset management business in a move which could fetch 600 million pounds. The company, which has 33 billion pounds of assets under management, was expected to tempt buyers from the United States and Europe, who would be instantly propelled into the UK's list of top 15 fund managers. Equitable Life's asset management business has 25 billion pounds of with-profit funds, four billion of unit trust funds, and the rest a range of other non-profit funds. Three quarters of its 19 unit trusts had a performance record which put them in the first or second quartile. Equitable shut its doors to new business on Friday after the UK's second largest insurer Prudential pulled out of talks to buy the troubled group. Equitable said it would continue to run existing customers' life and pension policies in a so-called closed fund. But policy holders now face lower returns on their policies, Reuters noted. FINEONE LTD: Liquidation Proceedings ------------------------------------- Company Name: Fineone Ltd Company No: 2623467 Com. Business: Holding Co Appointed on: 06/11/00 Type: Creditors Appointed by: Creditors Liquidators: Roderick G Butcher IPno: 8834 Firm Name: Moore Stephens Booth White Address: Beaufort House 94-96 Newhall Street City Postcode: Birmingham B3 1PB FOREIGN & COLONIAL: Shareholder Calls to Wind Up -------------------------------------------------- The Times reported yesterday that Foreign & Colonial, the grandfather of investment trusts, has come under attack from a firm of New Jersey arbitrageurs, which is demanding that the 3 billion pounds fund should be wound up and its assets distributed to shareholders. F&C has received a requisition from ST Partners, which owns 1.2 percent of the trust, for a resolution at the next annual meeting to wind up the fund. Under company law, F&C has an obligation to put the resolution to shareholders. ST Partners, a little-known hedge fund business, which last week launched a similar assault on the 500 million pounds Bankers Investment Trust, wants the board to buy back 70 percent of the stock at 98 percent of the trust's net asset value. If more than 85 percent of shareholders, the majority of whom are private investors, tender their shares, then ST Partners wants the entire fund to be wound up. Details of the resolution will be sent to shareholders next year ahead of the annual meeting, which is as yet unscheduled, The Times noted. FORTE HOTELS: Up for Sale ------------------------- Leisure group Granada Compass has said it expects to agree to the sale of its Forte Hotels division by March, The independent reports yesterday. Chairman Francis Mackay said Granada Compass was now in the second stage of disposing of the division, which includes the Posthouse, Heritage, le Meridien and Signature chains. The division was put up for sale in October and could fetch up to 4 billion pounds if split up. Offers had to be put in before January 22 after which a shortlist or a preferred bidder would be selected. JAMES GOWANS: Liquidation Proceedings -------------------------------------- Company Name: James Gowans Ltd Company No: SC Appointed on: 06/11/00 Type: Creditors Appointed by: Creditors Liquidators: T M Burton IPno: 8224 Firm Name: Ernst & Young Address: George House 50 George Square City Postcode: Glasgow G2 1RR LITTLEWOODS: Faces Financial Crisis ----------------------------------- Littlewoods, the high street retail empire, has slumped deep into the red after savage competition from the new breed of discounters forced it to cut prices. Reporting trading losses of 15.6m pounds for the six months to 31 October. Littlewoods said yesterday that it would close 35 of its Index catalogue shops to cut costs. The stores will be given space within the nearest branch of Littlewoods instead. The closures will give rise to an additional 35m pounds exceptional charge in the second half. This is on top of 6m pounds announced earlier this year when Littlewoods publicized plans to cut 250 head office jobs in Liverpool, The Independent reports this week. The branch closures will cut costs by 10m pounds, Littlewoods said, with no loss of sales. There will be no job losses at store level as the Index staff will be transferred to the Littlewoods branches. The main problem within Littlewoods has been increased losses at its Index stores, which have suffered from poor margins and a catalogue that proved to be uncompetitive with that of its main rival, Argos. The Independent noted that prices in fashion ranges will now be cut by 15 percent on average for the spring/summer 2001 catalogue, with the price of polyester cotton men's white shirts coming down from 10 pounds to 5 pounds. Barry Gibson, Littlewoods' chief executive, said the company's figures showed that the impact of the new breed of discounters such as Matalan and Peacocks was still being felt. NISSAN MICRA (UK): Nissan Close UK Plant ---------------------------------------- The Times reported yesterday that Nissan will announce next month the end of the Micra in the UK, with the loss of 2,000 jobs, after it emerged that the Japanese company has repeatedly warned the Government that the UK's position on the euro makes it an unattractive location. Stephen Byers, the Trade and Industry Secretary, is to meet Nissan, which is controlled by Renault, before an expected announcement in the middle of January. Mr Byers, whose Newcastle constituency is close to Nissan's only UK plant in Sunderland, will make a last-ditch attempt to persuade Nissan to build the new Micra in the UK. But it is understood that the carmaker has continually emphasized to the Department of Trade and Industry that Britain's isolation from the euro makes car manufacturing unprofitable and that the single currency is Nissan's main consideration. Nissan's mood has not changed after recent strengthening of the euro. Nissan's mid-January statement is expected after an executive meeting of the company and after it has learnt the European Commission's ruling on a 40 million pounds aid offer from the Government. Sir Ken Jackson, general secretary of the AEEU, will press Mr Byers this week to offer additional help. But the aid is not believed to be key to Nissan's decision. The end of the Micra in the UK will be an embarrassment for the Government because the new plant is Europe's most productive car factory, The Times noted. RS PUMPS: Liquidation Proceedings ---------------------------------- Company Name: RS Pumps Ltd Company No: SC Appointed on: 06/11/00 Type: Creditors Appointed by: Creditors and Members Liquidators: John M Hall IPno: 8593 Firm Name: Ernst & Young Address: 65 Bath Street City Postcode: Glasgow G2 2DD ROBERT JONES: Liquidation Proceedings -------------------------------------- Company Name: Robert Jones (Cork) Ltd Company No: IR Appointed on: 06/11/00 Type: Members Appointed by: Members Liquidators: Garvan Corkery IPno: Firm Name: Ronan Daly Jermyn Address: 12 South Mall City Postcode: Cork VAUXHALL: Workers Express Anger Over Plant Closure -------------------------------------------------- Workers at Luton have expressed anger and disbelief as they left their shift after the news that the plant was closing was announced. Union officials have pledged to fight the plan to end car production and says there is no need for Vauxhall to make such a drastic decision. Vauxhall says the redundancy costs will be significant but adds that its aim is to avoid compulsory job losses. A total of 5,000 jobs are being axed by Vauxhall across Europe, including job losses in Germany, which will reduce manufacturing capacity. An in-depth study of capacity has started and additional decisions in Europe could be taken, Ananova reports this week. WFF LTD: Liquidation Proceedings --------------------------------- Company Name: WFF Ltd Company No: 3812804 Com. Business: Holding Co Appointed on: 06/11/00 Type: Members Appointed by: Members Liquidators: Graham P Petersen IPno: 8325 Firm Name: Benedict Mackenzie Address: 5-6 The Courtyard East Park City Postcode: Crawley RH10 6AG WEST NILE: Liquidation Proceedings ----------------------------------- Company Name: West Nile Ltd Company No: SC Appointed on: 06/11/00 Type: Creditors Appointed by: Creditors Liquidators: Fraser J Gray IPno: Firm Name: Kroll Buchler Phillips Address: Afton House 26 West Nile Street City Postcode: Glasgow G1 2PF 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 * * *