/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010129.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 Monday, January 29, 2001, Vol. 2, No. 20 Headlines B E L G I U M ARDEN `HUMUS: Court Declares Compost Maker Bankrupt LERNOUT & HAUSPIE: John Duerden Resigns From Board of Directors LERNOUT & HAUSPIE: U.S. Judge Okays DIP Financing Package REAL SOFTWARE: Cresus Seeks 30 Million Payment from Parent SABENA AIRLINES: SAirGroup CEO's Resignation Creates Uncertainty C Z E C H R E P U B L I C INVESTICNI A POSTOVNI: Gov't Faces $5 Billion Bill G E R M A N Y DEUTERON: Property Group Breaks Up EM.TV: Shareholders Accuse EM.TV of Lying N E T H E R L A N D S LETSBUYIT.COM: Secures Guarantee to Help Retailer Survive R U S S I A NTV: Gazprom Takes Control of NTV S P A I N ARESBANK: Partners Decide on Bank's Solution to Crisis S W E D E N ICON MEDIALAB: Posts SEK 59.1 Million Operating Loss U N I T E D K I N G D O M AKC HOLDINGS: Liquidation Proceedings ARCHER GROUP: Liquidation Proceedings CORUS: To Stop Crude Steel Production EQUITABLE LIFE: Aegon Withdraws from Equitable Bid HALFORD MOTOR: Liquidation Proceedings LONRHO AFRICA: Reports Pre-tax Loss of 58.2 Million Pounds R L GLOVER: Liquidation Proceedings SCOTIA HOLDINGS: Scottish Enterprise to Rescue Scotia THEOREM HOLDINGS: Liquidation Proceedings TOWER UNDERWRITING: Liquidation Proceedings VALEO CLIMATE: Gorseinon Plant Closure a Severe Blow VALEO UK: Valeo Closes Two Plants VAUXHALL: GM to Push Through Luton Plant Closure ============= B E L G I U M ============= ARDEN `HUMUS: Court Declares Compost Maker Bankrupt ---------------------------------------------------- In a report dated January 18, L'Echo said that a commercial court in Huy has accepted an application from Arden'Humus of Seilles for bankruptcy proceedings to be opened. The company, which was founded in 1994, specialized in making compost. LERNOUT & HAUSPIE: John Duerden Resigns From Board of Directors --------------------------------------------------------------- BUSINESS WIRE, January 25 The Board of Directors of Lernout & Hauspie Speech Products NV, a world leader in speech and language technology, products and services, today announced that John Duerden has resigned his position as a member of the Company's Board of Directors. Philippe Bodson, President and Chief Executive Officer said, "We thank John for his efforts towards rebuilding L&H during his tenure with the Company." LERNOUT & HAUSPIE: U.S. Judge Okays DIP Financing Package ---------------------------------------------------------- Voice recognition software developer Lernout and Hauspie (L&H) is close to getting its much-needed US$60 million in debtor-in- possession (DIP) loans after United States bankruptcy judge Judith Wizmur approved the company's credit commitment letter, Xinhua News Agency said in its January 25 report. The U.S. Bankruptcy Court expects to give the final approval for the DIP financing package on February 7. The package will help secure L&H US$60 million in liquidity financing. L&H also plans to use the financing to continue operating its businesses, as well as refinance a $20 million bridge loan from General Electric Co.'s GE Capital unit. Once the terms and conditions have been met, the financially troubled firm was allowed to pay its lender $423,200 for fee obligations and expenses in exchange for a commitment to provide financing. L&H, now operating under bankruptcy court protection in both Belgium and the United States, filed for bankruptcy protection in November after it admitted to accounting irregularities including 100 million dollars in missing cash. REAL SOFTWARE: Cresus Seeks 30 Million Payment from Parent ----------------------------------------------------------- Cresus, a subsidiary of troubled computer services company Real Software, plans to file suit against the parent company for allegedly not sharing proceeds from clients worth 30 million Belgian francs ($683,500), the January 25 edition of Reuters reported. Markus Geginat, who resigned as managing director on December 21, said that Cresus has had trouble getting money from Real Software on a number of occasions since October 1999. The amount sometimes went as high as 60 million Belgian francs. Real Software Chief Financial Officer Johan Pede said the company would defend itself against the planned lawsuit. SABENA AIRLINES: SAirGroup CEO's Resignation Creates Uncertainty ---------------------------------------------------------------- SAirGroup Chief Executive Philippe Bruggisser resigned Tuesday, a day after a restructuring plan for Sabena Airlines was rejected, according to a Dow Jones report on January 25. The management of SAir, which holds a 49.5 percent stake in the Belgian national carrier, failed to win outright approval from labor unions for its restructuring plan. Chairman Eric Honegger of SairGroup assumed the function of interim group CEO, effective immediately. Wolfgang Werle will serve as his deputy. =========================== C Z E C H R E P U B L I C ============================ INVESTICNI A POSTOVNI: Gov't Faces $5 Billion Bill --------------------------------------------------- The Czech government faces a $5 billion (3.4 billion pounds) bill for rescuing Investicni a Postovni Bank last year, which was forced into accepting administration by armed police last June after suffering a liquidity crisis, the Financial Times reported on Thursday. When it announced the bailout figure, the government provoked a political outcry that could threaten the position of finance minister Pavel Mertlik, who has always insisted that his swift action prevented a wider banking crisis. ============= G E R M A N Y ============= DEUTERON: Property Group Breaks Up ----------------------------------- Following owner Andreas Wankum's filing for personal bankruptcy in December, property group Deuteron has broken up, the Suddeutsche Zeitung & World Reporter said in its January 24 edition. Wankum has now opened insolvency proceedings into his companies and will sell all his assets in order to pay off creditors. Deuteron ran into difficulties during the building of a stadium at Hamburg's Volkspark, in which Deuteron was an investor. The company guaranteed a fixed price of DM159 million while the stadium actually cost DM192 million. The Hamburg sports association and companies involved in the construction of the stadium are asserting claims against Deuteron. EM.TV: Shareholders Accuse EM.TV of Lying ------------------------------------------ A shareholder group has filed a criminal complaint with the Bavarian authorities against media group EM.TV for lying about its performance and controlling structure in an attempt to maintain its share price. In a report dated January 25, the Financial Times said that EM.TV restated its results and dramatically reduced its 2000 profit forecast last December after accumulating mistakes in consolidating the accounts of its acquisitions. To recall, EM.TV acquired 45 percent of TMG in 1999 and went on to buy the Muppets creator Jim Henson Company in February and a 50 percent stake in SLEC a month later. The deals were worth E 5.9 billion in cash and shares at the time they were announced. Morgan Grenfell Private Equity, which is planning to bid for EM.TV, sold a SLEC stake to EM.TV in March 2000 for a 12.5 percent shareholding in EM. The private equity firm is believed to have made a paper loss representing more than 10 percent of its $2 billion European Partners IV fund, which had invested in the transaction. Morgan Grenfell executives are said to have considered taking EM.TV to court last year. The company failed to do so as the magnitude of its losses caused disagreement on how to best go about a rescue exercise. ===================== N E T H E R L A N D S ===================== LETSBUYIT.COM: Secures Guarantee to Help Retailer Survive ---------------------------------------------------------- Internet retailer LetsBuyIt.com NV earned another stay from bankruptcy proceedings after securing a 4 million euro guarantee from existing shareholders and incubator fund Kimvestor, The Wall Street Journal Europe said in its January 25 report. According to John Palmer, LetsBuyIt.com's acting chief executive officer, the money will enable the company to continue negotiations to secure the long-term survival of the company. The company still has a scheduled court hearing; however, Palmer is confident the court will not declare LetsBuyIt bankrupt. LetsBuyIt requested protection from creditors on December 28. After failing to secure a guarantee, LetsBuyIt persuaded the Amsterdam district court that it was in creditors' best interests to give the firm an extension. LetsBuyIt has until January 31 to raise enough funds to cover its liabilities and carry the company forward. =========== R U S S I A =========== NTV: Gazprom Takes Control of NTV ---------------------------------- In a report dated January 25, AFX said that Gazprom has acquired full control of Russia's only private television network NTV after a Moscow court impounded a disputed 19 percent stake in the company. The 19 percent stake serves as collateral for a US$262 million debt to Gazprom, which NTV's parent company Media-MOST must pay by July. Gazprom is demanding early payment on the debt, citing a breach of an earlier agreement by the company. Gazprom now holds NTV's 46 percent stake and will become a majority shareholder should the courts rule in Gazprom's favor over the disputed stake. ========= S P A I N ========= ARESBANK: Partners Decide on Bank's Solution to Crisis ------------------------------------------------------- According to Bank of Spain governor Jaime Caruana, a solution to Aresbank's finance and solvency problems lies with its partners, who must decide whether to increase the bank's capital or to liquidate the bank, the Expansion & World Reporter said in its January 24 edition. Accumulated losses and the need for funds to meet a Pta13.3 billion bail for a lawsuit between Aresbank and a former client have depleted the bank's equity. Aresbank's shareholders have already approved a capital increase of 33 million euros but it still needs another 42 million euros. Differences between shareholders have hindered the drawing up of a viability agreement for the bank. =========== S W E D E N =========== ICON MEDIALAB: Posts SEK 59.1 Million Operating Loss ----------------------------------------------------- Icon Medialab International AB, which provides interactive digital communication services, has reported an operating loss of SEK 59.1 million, a news release from the company said on January 25 said. As of December 1999, Icon Medialab's long-term debt was SEK 70.04 million and had total liabilities of SEK 377.86 million. =========================== U N I T E D K I N G D O M =========================== AKC HOLDINGS: Liquidation Proceedings -------------------------------------- Company Name: AKC Holdings Ltd Company No: 1972738 Com. Business: Insurance Appointed on: 04/01/01 Type: Members Appointed by: Members Liquidators: Peter G Mills IPno: 7948 Firm Name: Smith & Williamson Address: 1 Riding House Street City Postcode: London W1A 3AS ARCHER GROUP: Liquidation Proceedings -------------------------------------- Company Name: Archer Group Services Ltd Company No: 1895591 Com. Business: Insurance Appointed on: 04/01/01 Type: Members Appointed by: Members Liquidators: Peter G Mills IPno: 7948 Firm Name: Smith & Williamson Address: 1 Riding House Street City Postcode: London W1A 3AS CORUS: To Stop Crude Steel Production -------------------------------------- Corus is preparing to stop manufacturing crude steel at its large plant in south Wales, the Financial Times said in its January 25 edition. The Anglo-Dutch steel group is expected to announce job cuts in the next few days, where it has been hard hit by the pound's recent strength against the euro and the decline in consumption of steel among UK manufacturers. As part of the job cuts, Corus's other smaller plants could also close. The total number of job losses is put at between 5,000 and 7,000, following Corus's sweeping review of its UK operations. EQUITABLE LIFE: Aegon Withdraws from Equitable Bid --------------------------------------------------- Aegon is understood to have dropped its interest to rescue Equitable Life, The Times reported in its January 26 edition. The withdrawal now leaves AMP as the clear favorite to buy the troubled insurer. The Dutch financial group is believed to have been unhappy with the structure of the deal being offered and was skeptical over whether a compromise could be achieved to cap Equitable's liabilities to its guaranteed annuity rate (GAR) policyholders. The FSA is understood to have insisted that a deal could not be completed until this was in place. Equitable is facing a 1.5 billion pounds bill after a House of Lords ruling banned it from cutting pension bonuses to holders of GAR policyholders. HALFORD MOTOR: Liquidation Proceedings --------------------------------------- Company Name: Halford Motor Insurance Services Ltd Company No: 1938332 Com. Business: Insurance Appointed on: 04/01/01 Type: Members Appointed by: Members Liquidators: Peter G Mills IPno: 7948 Firm Name: Smith & Williamson Address: 1 Riding House Street City Postcode: London W1A 3AS LONRHO AFRICA: Reports Pre-tax Loss of 58.2 Million Pounds ----------------------------------------------------------- Lonrho Africa Plc, which operates in fourteen sub-Saharan African countries, has announced a full-year pre-tax loss of 58.2 million pounds (42.9 million pounds) with no dividend, according to The Times on Friday. As of September 1999, the company's long-term debt was 7.00 million pounds and total liabilities were 164.10 million pounds. Lonrho Africa's main activities include importation and distribution of motor vehicles, motorcycles, generator sets and small aircraft. It is also involved in agri-business, hotels, property and construction. R L GLOVER: Liquidation Proceedings ------------------------------------ Company Name: R L Glover & Co (Underwriting) Ltd Company No: 542474 Com. Business: Insurance Appointed on: 04/01/01 Type: Members Appointed by: Members Liquidators: Peter G Mills IPno: 7948 Firm Name: Smith & Williamson Address: 1 Riding House Street City Postcode: London W1A 3AS SCOTIA HOLDINGS: Scottish Enterprise to Rescue Scotia ------------------------------------------------------ A last-minute attempt to help rescue Scotia Holdings has been launched by Scottish Enterprise, which is understood to be desperate to save Scotia, according to The Times on Friday. It was unclear what type of assistance Scottish Enterprise could offer to the ailing biotechnology company. Scottish Enterprise is heavily promoting Scotland as a European center for biotechnology. THEOREM HOLDINGS: Liquidation Proceedings ------------------------------------------ Company Name: Theorem Holdings Ltd Company No: 2555231 Com. Business: Insurance Appointed on: 04/01/01 Type: Members Appointed by: Members Liquidators: Peter G Mills IPno: 7948 Firm Name: Smith & Williamson Address: 1 Riding House Street City Postcode: London W1A 3AS TOWER UNDERWRITING: Liquidation Proceedings -------------------------------------------- Company Name: Tower Underwriting Agents Ltd Company No: 1892922 Com. Business: Insurance Appointed on: 04/01/01 Type: Members Appointed by: Members Liquidators: Peter G Mills IPno: 7948 Firm Name: Smith & Williamson Address: 1 Riding House Street City Postcode: London W1A 3AS VALEO CLIMATE: Gorseinon Plant Closure a Severe Blow ----------------------------------------------------- Valeo Climate Control's announcement of its closure plans for the Gorseinon plant with a loss of 330 jobs was described as a severe blow by the Assembly's Economic Development Minister, Michael German, according to a January 25 reports in News Wales. According to the company, the downturn in the motor vehicle industry and the strength of the pound against the euro was the reason for their decision. German, however, assured the workers that the National Assembly and its agencies will do everything possible to help them find new jobs and will provide a wide range of assistance and re- training. VALEO UK: Valeo Closes Two Plants ---------------------------------- Valeo's plan of closing two UK plants will lead to a loss of 580 jobs, according to The Times in its January 26 edition. The company's fall has been blamed in orders for its heating and air conditioning products. Valeo has a wiring plant at Worksop, Derbyshire, with 250 employees. The other site, in Gorseinon in South Wales, has a workforce of 330. VAUXHALL: GM to Push Through Luton Plant Closure ------------------------------------------------- According to Klaus Franz of General Motors Europe, the company is ready for unconditional negotiations over the closure of the Vauxhall plant in Luton despite a work stoppage in protest at the closure, Ananova said on Thursday. A GM spokesman said that there is no intention to re-open negotiations regarding the Luton closure and stressed that the day of action protest had no significant impact on European car production. Vauxhall's plants in Luton and Ellsmere Port were hit as workers downed tools and a total of 1,050 vehicle units were lost at both factories. 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, Salve M. Mordeno and Cristina Pernites, Editors. Copyright 2001. 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 * * *