/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010730.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, July 30, 2001, Vol. 2, No. 147 Headlines * A U S T R I A * LIBRO AG: New Opening Hours Pose Problem for Staff * F R A N C E * ANDRE & CIE: Staff to Lose SFr2.6MM Savings CRM: Shipbuilder Declares Bankruptcy VALEO SA: Posts Interim Net Loss of 185MM Euros * G E R M A N Y * BROKAT: In Talks With Investors Over 125MM-Euro Bond MOENUS TEXTILMASCHINEN: Insolvency Proceedings Begin TEAMWORK INFORMATION: Posts 36.8MM-Euro Loss * I R E L A N D * XEROX CORPORATION: Staff Pressures Xerox Over Pension Row * N E T H E R L A N D S * FOKKER: EU Okays Fokker Acquisition by Saab KPN NV: Will Sell Pannon Stake for 603MM Euros OCEAN WARRIOR: Court Declares Film Production Outfit Insolvent * S P A I N * JAZZTEL PLC: Loss Widens to 68.08MM Euros * S W E D E N * BOLIDEN LIMITED: Plans Acquisitions and Selloffs BOLIDEN LIMITED: Posts $19.9MM Operating Loss for Second Quarter BOLIDEN LIMITED: Will Finalize Equity Offerings to Reduce Debt CELL NETWORK: Second-Quarter Loss Widens to 661MM Swedish Kronas * U N I T E D K I N G D O M * BLACKWOOD CARPET: Seeks Buyer to Avoid Closure BRITISH TELECOM: Profits Fall Anew MARKS & SPENCER: Sale Fails to Appease French Staff NTL INCORPORATED: Insists on Profitability by 2003 NTL INCORPORATED: Will Cut 5,000 Jobs WIGGINS GROUP: To Replace Auditor ============= A U S T R I A ============= LIBRO AG: New Opening Hours Pose Problem for Staff --------------------------------------------------- Employees of Austrian book and media retail company Libro AG are angry at the company's decision to introduce earlier opening for its stores, Die Presse & Financial Times in its July 26 edition said. They complain that insufficient notice was given of the change. This week, talks with possible investors in the group's online subsidiary Lion.cc will be concluded. Lion.cc management informs that American Express is sending the Sch50 vouchers delivered to its customers. It applies to customers who pay by American Express. =========== F R A N C E =========== ANDRE & CIE: Staff to Lose SFr2.6MM Savings -------------------------------------------- Employees of brokerage firm Andre & Cie, according to the July 21 edition of Le Temps & World Reporter, could lose their company savings schemes due to the group's business failure. The group's creditors could demand a total of SFr2.6 million worth of savings belonging to over 70 employers. Andre & Cie is facing a debt load of $400 million. CRM: Shipbuilder Declares Bankruptcy ------------------------------------ Shipbuilder CRM on Thursday was declared bankruptcy at the commercial court, Les Echos & Financial Times reported. No takeover bids for the company have been made yet. Italian shipbuilder San Giorgio del Porto is reportedly interested in an acquisition, while the former chairman and MD of Sud-Marine is seeking funds so that he can take over the company in association with its employees. CMR has debt of 6 million euros. VALEO SA: Posts Interim Net Loss of 185MM Euros ----------------------------------------------- Car parts manufacturer Valeo has registered an interim net loss of 185 million euros on a turnover of 5.47 billion euros, Le Figaro & Financial Times reported on Thursday. The loss in the second quarter was only 6 million euros. The group now focuses on its mechanical and thermal, distribution, and electric and electronics sectors. The latter is expected to represent about 70% of turnover by 2005, compared with 47% at present. ============= G E R M A N Y ============= BROKAT: In Talks With Investors Over 125MM-Euro Bond ---------------------------------------------------- Software company Brokat is in talks with creditors on the 125- million-euro high-coupon bond it issued last year, Frankfurter Allgemeine Zeitung & Financial Times in its July 25 edition said. The company was considering restructuring the bond with its institutional investors. The announcement has led to the company's downgrade of its ratings. Last week, Standard & Poor's has lowered its long-term corporate credit and senior unsecured debt ratings double-'C' from single- 'B'-minus. Moody's Investors Service has also downgraded to Ca the rating for the company's senior notes, the issuer rating and the senior implied rating, while Fitch has downgraded the senior unsecured rating and its 125-million-euro senior unsecured notes due 2010 to 'CCC'. Brokat, whose liquid funds will be used up in this quarter and at the latest by the end of the year, has appointed investment bank Dresdner Kleinwort Wasserstein Inc. as its financial adviser to examine strategic options to restructure the notes. MOENUS TEXTILMASCHINEN: Insolvency Proceedings Begin ----------------------------------------------------- Textile machinery manufacturer Moenus Textilmaschinen AG has filed to start insolvency proceedings, Frankfurter Allgemeine Zeitung in its July 25 edition said. The decision to start insolvency proceedings was attributed to the banks' reluctance to grant Moenus a large credit line to continue operating its business. Moenus' interim insolvency administrator is Metzeler & van Betteray (Duesseldorf). TEAMWORK INFORMATION: Posts 36.8MM-Euro Loss -------------------------------------------- Teamwork Information Management AG has posted a loss of 36.8 million euros on a turnover of 15.4 million euros, Borsen-Zeitung & Financial Times in its July 26 edition said. The information management solutions provider has published its 2000 figures several months late. Meanwhile, Teamwork is in talks with two potential investors. One of the companies is an industrial partner from the software industry, while the other is a German group of financial investors. ============= I R E L A N D ============= XEROX CORPORATION: Staff Pressures Xerox Over Pension Row --------------------------------------------------------- More than 350 Xerox staff in Ireland, who will be made redundant on Friday, has appealed to the Tanaiste, Harney, to pressure the troubled copier maker to pay departing employees their pension contributions, the Friday edition of The Irish Times said. The employer contributions could be worth 140,000 pounds for all the employees affected by the redundancies. The company was said to have refused to pay the contributions despite a verbal assurance given by the human resources director. Xerox, however, denied that the management had given any verbal assurance. Managing director Joe Browne of Xerox Ireland said the employees received fair and competitive severance packages and there were no legal obligation to pay back employer contributions. ===================== N E T H E R L A N D S ===================== FOKKER: EU Okays Fokker Acquisition by Saab ------------------------------------------- The EU Commission has endorsed the acquisition of technology group Fokker Space by Swedish firm Saab Ericsson Space as activities of both companies only show limited overlap, Het Financieele Dagblad & Financial Times reported on Thursday. Both companies announced the takeover of Fokker Space, which now will be called Dutch Space Industrie, in September of last year. Saab Ericsson Space owns a majority stake in the Fokker, which was declared insolvent in 1996. KPN NV: Will Sell Pannon Stake for 603MM Euros ---------------------------------------------- Royal KPN NV, the troubled Dutch telecommunications company, on Thursday has agreed to sell its stake in the Hungarian mobile operator Pannon GSM to reduce debt. Under this agreement, Norwegian firm Telenor will acquire the 44.66% stake for 603 million euros in cash. Pannon has a net debt of approximately 250 million euros as of June 30. "This agreement is another major step in the implementation of KPN's program to dispose of non-core activities. Following the disposal of our stake in eircell (571 million euros) and commercial real estate (93 million euros) and the agreements with respect to eircom (approximately 625 million euros), KPN Lease (150 million euros) and now Pannon (603 million euros), it adds up to more than 2 billion euros," KPN CEO Paul Smits said. Deutsche Bank is acting as advisor to KPN in connection with this transaction. OCEAN WARRIOR: Court Declares Film Production Outfit Insolvent -------------------------------------------------------------- The Amsterdam court declared film production company Ocean Warrior insolvent following a long process of attempts to continue its production, Het Financieele Dagblad & Financial Times in its July 26 edition said. The production company responsible for the Ocean Warrior had been in suspension of payment for 1.5 months due to lack of funds. ========= S P A I N ========= JAZZTEL PLC: Loss Widens to 68.08MM Euros ----------------------------------------- Telecommunication company Jazztel PLC has posted a second quarter net loss of 68.08 million euros, compared with a loss of 62.38 million euros in the first quarter of this year and a loss of 50.97 million euros in the second quarter of 2000. The 25% fall in the share price of Jazztel this month has put the company on the rocks. In June, Standard & Poor's lowered its ratings on Jazztel's senior unsecured notes to triple-'C' from triple-'C'-plus. =========== S W E D E N =========== BOLIDEN LIMITED: Plans Acquisitions and Selloffs --------------------------------------------------- After posting an operating loss of $19.9 million for the six months ending June 30, debt-burdened mining company Boliden said it would be making some fresh acquisitions, as well as selling off some non-performing assets, according to Reuters' July 26 edition. Boliden's new chief executive Jan Johansson would not elaborate on what type of investments or selloffs he was considering. Major factors behind a better second half of the year would be further improvements in production efficiency, better copper and zinc prices, as well as fewer losses from hedging operations, Johanneson added. BOLIDEN LIMITED: Posts $19.9MM Operating Loss for Second Quarter ---------------------------------------------------------------- Boliden Limited on Thursday said it has an operating loss of $19.9 million for the six months ended June 30, compared with the $41.1 million for the first half of 2000. The principal reasons for the change are higher mining and smelting production offset by lower metal and sulphuric acid prices and lower treatment and refining charges. The company's foreign currency hedge contracts negatively affected the its operating results by $22.4 million for the quarter and $40.4 million for the half, $15.8 million for the second quarter and $26.0 million for the first half of 2000 and $18.0 million for the first quarter of 2001. BOLIDEN LIMITED: Will Finalize Equity Offerings to Reduce Debt -------------------------------------------------------------- Last month, Boliden Limited has filed a short form prospectus in respect of its previously announced equity offerings consisting of a $105 million common share rights offering to the company's existing shareholders and a $138 million common share offering directed to existing shareholders, certain Swedish investors and the company's lenders. Boliden on July 26 said that the proceeds of the rights offering would be used to pay accrued and unpaid interest on the company's debt of $24.0 million, and for general corporate purposes, including the payment of the costs of the equity offerings and the establishment of the reserve accounts. The equity offerings will be completed on August 2001. CELL NETWORK: Second Quarter Loss Widens to 661MM Swedish Kronas ---------------------------------------------------------------- Consulting company Cell Network AB reported that its second quarter pretax loss has widened to 661 million Swedish kronas from 203 million Swedish kronas in the second quarter a year ago, the Thursday edition of Dow Jones Newswires said. Sales also fell to 361 million Swedish kronas from 391 million Swedish kronas, due in part to cutbacks by its client LM Ericsson and a fall in demand in the Swedish market. Cell Network is concentrating its resources in Germany on the profitable management consultancy market and is withdrawing from the unprofitable web design market by selling its stake in Aperto. =========================== U N I T E D K I N G D O M =========================== BLACKWOOD CARPET: Seeks Buyer to Avoid Closure ---------------------------------------------- Troubled textile manufacturer Blackwood Carpet Yarns is racing against time to find itself a buyer to avoid closure, The Scotsman newspaper reported on Thursday. Receiver Gary Lee of Begbies Traynor said that 110 jobs would immediately go, while 220 more would go within the next eight weeks if an eleventh hour buyer can not be found. The buyer would have to invest up to 1.5 million pounds to modernize the ailing plant. Lee added that three interested firms have visited the factory last week and if no buyer steps forward, they would begin the orderly winding down process towards late August. Blackwood was founded in 1847 and supplies yarns to carpet makers across the world. It became the largest exporter of yarns in Europe during the 1980s. The business suffered a downturn in sales during the 1990s as a result of cheap foreign imports and a lack of investment in new machinery. BRITISH TELECOM: Profits Fall Anew ---------------------------------- British Telecom has unveiled another drop in quarterly earnings, with profits falling to 186 million pounds in the three months to June 30, compared with 673 million pounds this time last year, the Financial Times reported on Thursday. BT blamed the expense of servicing company debt as part of the reason for its lower profits. The company's new businesses such as Genie, Openworld, Concert, BT Wireless and Ignite showed combined losses of 295 million pounds for the three months. In contrast, the telecom giant made progress in reducing its debt mountain, but admitted that its performance was still no better than "satisfactory". Chairman Sir Christopher Bland said that the firm had slashed borrowings dramatically to 16.5 billion pounds through a series of international disposals and a 5.9-billion-pound rights issue. The company job cuts could also total 6,000 this year, rather than the 5,000 previously indicated, with 1,500 jobs likely to go at its Ignite corporate data business in Europe. MARKS & SPENCER: Sale Fails to Appease French Staff --------------------------------------------------- Staff at Marks & Spencer's stores in Paris pledged to keep up the fight for their jobs, following the retailer's plan to seek a buyer rather than close the doors at its 18 stores in France, Namnews in its July 26 edition said. >From the start, the retail group's withdrawal plans were attacked by French workers, unions and politicians and also faced court challenge. M&S decided to close the continental businesses to focus on turning round its flagging UK retail operation. NTL INCORPORATED: Insists on Profitability by 2003 -------------------------------------------------- Cable group NTL has rejected suggestions that it is facing a funding crisis, as it revealed plans to further make 5,000 workers redundant, the Independent News reported on Friday. Although the group is under siege from investors over massive debt, it said that it had sufficient financing to achieve a positive cashflow and become profitable by the end of 2003. However, NTL will still need to borrow 1.8 billion pounds to get there. The company said it could raise extra funds through spinning off its European assets or selling its broadcast transmission business. NTL INCORPORATED: Will Cut 5,000 Jobs ------------------------------------- NTL will further cut 5,000 jobs over the next two years in an effort to break even in 2003, the Financial Times reported on Thursday. UK's biggest cable operator said it would cut 2,500 jobs next year and 2,500 in 2003, adding to the 2,300 already announced for this year. NTL currently has about 19,500 employees, mostly in the UK. The company will also consider the disposal of its broadcast division, valued at $2.5 billion, to raise funds. NTL has $15 billion of debt and its bonds also fell dramatically, causing fears that the markets may not fund any extra investment needed to see the company into profitability. WIGGINS GROUP: To Replace Auditor --------------------------------- Troubled property developer Wiggins will replace its auditor HLB Kidsons, currently under investigation for its role in producing accounts that over stated profits at the business by 35 million pounds, Accountancy Age reported on Thursday. Kidsons said it would no longer audit Wiggins but would continue to provide other services. Earlier this year, Wiggins was forced to restate its accounts turning a pre-tax profit of 25.1 million pounds into a 9.9 million pounds loss for the 12 months to March 2000. The company now faces an FSA probe over the errors. *********** 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 * * *