/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010525.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, May 25, 2001, Vol. 2, No. 103 Headlines * B E L G I U M * REAL SOFTWARE: Confirms First Quarter Growth * F R A N C E * AIR LIBERTE: Strike Disrupts Flights * G E R M A N Y * DAIMLERCHRYSLER AG: Appoints Two Vice Presidents for Canada DEUTSCHE TELEKOM: Loss Narrows to $310.7 Million in First Quarter EM.TV: Expects Net Loss Due to Restructuring Costs * I R E L A N D * IRISH ISPAT: Expects Cuts on Mounting Losses * I T A L Y * ALITALIA-LINEE: In Alliance Talks With Air France ALITALIA-LINEE: Strikes Cause 30 Billion Lire Loss * R U S S I A * MEDIA MOST: Prosecutor Searches Media Most Office NTV: Court to Consider Ex-General Director Suit * S W E D E N * FRAMFAB AB: Analysts Still Negative on Gains LM ERICSSON: Declines Comment on Plant Sale Talks LM ERICSSON: Plummets on Poor Second Quarter Outlook * S W I T Z E R L A N D * 4M TECHNOLOGIES: Battles for Survival ISMM GROUP: Bankruptcy May Cost FIFA 100 Million Swiss Francs SWISSAIR GROUP: Announces New CFO in July * U N I T E D K I N G D O M * BRITISH TELECOM: Plunges on Growth Worries CAMMELL LAIRD: Ex-boss Offers to Buy Shipyard EQUITABLE LIFE: Members Seek Compromise From Insurer RAILTRACK GROUP: To Call for Extra $2.85 billion ============= B E L G I U M ============= REAL SOFTWARE: Confirms First Quarter Growth -------------------------------------------- Software firm Real Software SA in its Tuesday press release said that its sales in the first quarter rose 8.8% compared with the first quarter of 2000, while operational profit rose 11%. No further details on the figures were given. The company added its EBIT (earnings before interest and taxes) margin during this period was 11.7%, up from 11% in 2000. Real Software also said it is currently examining a proposal from its bank syndicate regarding the rescheduling of its entire debt. The main features of the rescheduling would include the debt waiver, the conversion of some debt in subordinated loans and the restructuring of the remaining debt over a period of 12 years. =========== F R A N C E =========== AIR LIBERTE: Strike Disrupts Flights ------------------------------------ A strike by AOM/Air Liberte staff over planned job cuts forced the loss-making French airline to cancel all medium- and long- haul flights on Wednesday, a company spokeswoman told Reuters. Flights to Los Angeles and French overseas territories were affected. On Monday, AOM/Air Liberte announced it would cut over 1,300 jobs as part of restructuring aimed at getting it back into the black by 2004, and that it would drop out of the most competitive of France's domestic routes where it faces rivalry both from Air France and high-speed TGV trains. "The government should deal with this for the sake of air traffic in France," SNPL pilots union representative Jean Immediato said. ============= G E R M A N Y ============= DAIMLERCHRYSLER AG: Appoints Two Vice Presidents for Canada ----------------------------------------------------------- DaimlerChrysler has appointed Patrick Dougherty as Vice President-Sales and Service and Garnett Fenn as Vice President- Finance for its Canada operations, DaimlerChrysler in its May 23 press release said. Dougherty will be responsible for sales development and strategy, business management and dealer development, national service, fleet sales and regional sales and service offices. Fenn will be responsible for the company's treasury, financial control, accounting and audit operations. He recently served as Senior Manager of Profit Analysis and Financial Forecast for the Chrysler Group. DEUTSCHE TELEKOM: Loss Narrows to $310.7 Million in First Quarter ----------------------------------------------------------------- Deutsche Telekom AG on Wednesday posted its first-quarter loss of 358 million euros ($310.7 million), compared with 975 million euros in the fourth quarter, beating analysts' forecasts for a loss of 400 million euros, the Wall Street Journal reported. The company's earnings before interest, taxes, depreciation and amortization rose 6.6% to 3.62 billion euros in the first quarter when adjusted for special factors in the previous year. On an unadjusted basis, EBITDA fell 36% from the year-earlier period. According to M.M. Warburg's Christoph Vogt, the numbers were on the upper end of expectations but will still require further clarification. The telecom analyst was glad to see that net loss was lower than had been predicted. EM.TV: Expects Net Loss Due to Restructuring Costs -------------------------------------------------- EM.TV & Merchandising AG still expects to post a full year net loss in view of a weak first quarter and the cost of current restructuring, AFX News in its Wednesday edition said. EM.TV posted a net loss of DM2.8 billion in 2000 as a result of write-offs resulting from the purchase of its stake in Formula One holding company SLEC for DM1.3 billion and DM684 million for the Jim Henson Co. Chairman Thomas Haffa said they are working hard to fulfill the May 31 deadline, as imposed by Deutsche Boerse AG. ============= I R E L A N D ============= IRISH ISPAT: Expects Cuts on Mounting Losses -------------------------------------------- Irish Ispat Ltd. is to cut wages and up to 50 jobs in a bid to reduce spiraling losses, the Irish Independent reported yesterday. Fears for 350 jobs at Haulbowline Island mounted after the still mill warned that it must increase production by over 60%, or from 5,000 tons to over 8,000 tons per week. Irish Ispat has been hit over the past few months by a disastrous fire that claimed the life of one worker, a major row over its EPA pollution license, and a fire safety row with Cork Co. Council. A spokesman for the Indian-owned mill was unavailable for comment on the crisis. ========= I T A L Y ========= ALITALIA-LINEE: In Alliance Talks With Air France ------------------------------------------------- Chief Executive Francesco Mengozzi said that alliance talks between Italian carrier Alitalia and Air France is underway and is expected to conclude in mid-June, Dow Jones on Wednesday reported. Megozzi noted that while the group aims to wrap up an alliance before August, a week or a month delay wouldn't change the result they want. The CEO also said the company must work to resolve structural problems that have caused them to report a 2000 net loss of 495 billion lire. He cited the lack of profitability of international and intercontinental products, the loss of domestic market share, an insufficient fleet, and problems associated with the launch of Malpensa as a hub airport as other key structural problems. ALITALIA-LINEE: Strikes Cause 30 Billion Lire Loss -------------------------------------------------- Alitalia chief executive Francesco Mengozzi said that strikes by its personnel during the four months to April have caused losses of about 30 billion lire, AFX News on May 23 reported. =========== R U S S I A =========== MEDIA MOST: Prosecutor Searches Media Most Office ------------------------------------------------- The Russian Prosecutor's general office said that another search was conducted at the office of Media Most holding on Thursday, Itar-Tass reported. The search was earlier planned and was conducted to check on financial activities of the Media Most holding. Media Most head Vladimir Gusinsky is accused misrepresenting the assets of his holding company to obtain a $262 million loan from gas monopoly Gazprom. NTV: Court to Consider Ex-General Director Suit ----------------------------------------------- A local Moscow court is set to consider a suit brought by former General Director of NTV Yevgeny Kiselyov against the television company and Gazprom-Media's subsidiary Lidvil Investment, RosBusiness Consulting in its May 23 edition said. Kiselyov considers the April 3 decision on his dismissal and the appointment of Vladimir Kulistikov to the post of NTV General Director illegal. Kiselyov's attorney says that the suit is not timely since news- anchor Tatyana Mitkova was the one appointed to the post of NTV General Director. Several courts have also declared Kiselyov's arguments groundless. =========== S W E D E N =========== FRAMFAB AB: Analysts Still Negative on Gains -------------------------------------------- Analysts are still negative about the future for Framfab even though the shares continued to rise in heavy trade after sharp gains on the news that its share issue is almost fully subscribed, the Wednesday edition of AFX News said. An analyst who did not wish to be named said commented that the situation is a prolonged death row even if Framfab gets all the money. The money from the share issues will last another five or six months. Handelsbanken's Internet consultant analyst Henrik Kronqvist added he is not convinced that the money is enough to turn the company around. The organization is very turbulent with a lot of people leaving. Kronqvist also believed Framfab will not be a listed independent company a year from now. LM ERICSSON: Declines Comment on Plant Sale Talks ------------------------------------------------- Swedish telecommunication equipment manufacturer Telefon AB LM Ericsson declined to make further comment on a report in the Financial Times newspaper, which said that the company is in advanced talks to sell its U.K. mobile phone factories in Scunthorpe in Lincolnshire and Carlton in Nottinghamshire, Dow Jones on Wednesday, reported. According to Media Relations director Aase Lindskog, the company had announced in January that it is looking at different possibilities for the two plants. Ericsson won't comment on ongoing negotiations, Lindskog added. LM ERICSSON: Plummets on Poor Second Quarter Outlook ---------------------------------------------------- Shares in LM Ericsson AB were down 3 Swedish krona, or 4% at 72 Swedish krona, on the company's reiteration of its poor outlook for the second quarter, according to the May 23 edition of AFX News. "Ericsson is repeating its view that the second quarter is going to be as bad as we had thought it would be. The margins are not expected to improve in the systems business," a broker said. ===================== S W I T Z E R L A N D ===================== 4M TECHNOLOGIES: Battles for Survival ------------------------------------- 4M Technologies Holding, designer and manufacturer of machinery for the CD industry, is facing liquidity problems as cash assets of SFr2.7 million are outweighed on the balance sheet by short- term financial liabilities of SFr50 million, Finanz und Wirtschaft & World Reporter in its May 19 edition said. Since a bridging loan of SFr20 million from banks have been used up, the company's future now depends on the current negotiations with creditor banks. With the CD and DVD industry undergoing a turnaround, 4M Technologies' share on May 18 stood at SFr24.50, 92% below the issuing price in 1999. ISMM GROUP: Bankruptcy May Cost FIFA 100 Million Swiss Francs ------------------------------------------------------------- The bankruptcy of sports marketing group International Sports Media and Marketing (ISMM) may cost football's world governing body more than 100 million Swiss francs, AFX News on Wednesday reported. A FIFA (International Football Association Federation) spokesman said he could not give a more precise figure, but added investigations are underway. On Monday, ISMM and its four units, including ISL Worldwide, filed for bankruptcy following Canal+'s announcement that it will not acquire the Group. SWISSAIR GROUP: Announces New CFO in July ----------------------------------------- The troubled SAirGroup, now known as Swissair Group, said on Wednesday that Jacqualyn Fouse would take over Georges Schorderet as the company's chief financial officer effective July 1, the company's May 23 press release said. The appointment of Fouse, currently the group treasure at Corti's former company Nestle SA, has raised eyebrows of some. An analyst said that it isn't good that two non-airline people lead the company. Schorderet will then focus on tasks related to a pending special audit exploring the events leading to a CHF2.89 billion net loss for the 2000 financial year. He will continue to report directly to Chief Executive Mario Corti. A company spokesman was unable to say whether he'd stay on after the audit is complete. Schorderet is the latest in a series of top managers forced out in the wake of the airline's financial debacle. In January, CEO Philippe Bruggisser was fired, blaming him for developing the faulty expansion strategy that led to big losses. Airline division chief Moritz Suter left the company in March. =========================== U N I T E D K I N G D O M =========================== BRITISH TELECOM: Plunges on Growth Worries ------------------------------------------ British Telecom shares fell 19厚 to 427厚 on Wednesday as its directors failed to assuage shareholder concerns about BT's long- term growth prospects, according to the May 24 edition of The Times. Brokers Cazenove and Merrill Lynch have added to the uncertainty by publishing widely different forecasts for profits growth at the Future BT unit. Cazenove predicted that Future BT would increase earnings before interest, tax, depreciation and amortization at about 9% a year, while Merrill Lynch believed Future BT will grow at half that rate. Meanwhile, it has emerged that BT will drop its mobile phone brand BT Cellnet on the demerger of BT Wireless. The company will use the demerger as an opportunity to rebrand local operations in the UK, Germany, the Republic of Ireland and The Netherlands as part of a symbolic break with the past. CAMMELL LAIRD: Ex-boss Offers to Buy Shipyard --------------------------------------------- A former boss at Cammell Laird has offered to buy one of the struggling shipyards, BBC News in its May 23 edition said. Cammell Laird receiver PricewaterhouseCoopers refused to reveal the identity of the bidder, but trade union GMB claimed that former Cammell Laird director Eric Welsh is behind the offer. Last week, PWC received interest from eight potential bidders for all or part of Cammell Laird. The interested firms are thought to include UK shipbuilder Swan Hunter, Norway's Ugland and venture capital group Alchemy. PWC is believed to be continuing talks that could save other parts of the shipbuilder from liquidation. EQUITABLE LIFE: Members Seek Compromise From Insurer ---------------------------------------------------- More than 2,000 policyholders threw a barrage of questions at the Equitable Life board during the annual general meeting, Press Association in its May 23 edition said. Most members seemed keen to reach a compromise about the ongoing issue of Equitable Life's liability to its guaranteed annuity rate (GAR) holders, worried that if the current situation was not resolved soon, the financial performance of the society could be in jeopardy. RAILTRACK GROUP: To Call for Extra $2.85 billion ------------------------------------------------ Rail network operator Railtrack was understood to want another two billion pounds ($2.85 billion) over the next five years to help pay for repairs and inspections, the Financial Times reported. The extra money, on top of an existing budget of 14.9 billion pounds, would need approval from the rail regulator. Railtrack is already getting an advance of 1.5 billion pounds due after 2006 to help cope with rising costs. The FT added Railtrack would unveil an internal shake-up, creating the operations, the major projects and the property and other activities divisions. Chief operating officer Jonson Cox, director for major projects Simon Murray and head of property John O'Brien would head the divisions. *********** 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, Salve M. Mordeno and Ma. Cristina D. 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 * * *