/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010816.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, August 16, 2001, Vol. 2, No. 160 Headlines * B E L G I U M * LERNOUT & HAUSPIE: May Sell Business in Parts * B U L G A R I A * BALKAN AIRLINES: Posts Revenue of BGN10MM * C Z E C H R E P U B L I C * MORAVAN OTROKOVICE: CSOB to Send Airplane Maker Into Bankruptcy * F R A N C E * AMF BOWLING: Posts Statement of Financial Affairs FRANCE SOIR: Unions Call for Re-Launch Plan MANGOOSTA: Nerim to Acquire Internet Firm * G E R M A N Y * GET AG: Applies for Insolvency Proceedings * I R E L A N D * INDIQU IRELAND: Enters Liquidation * N E T H E R L A N D S * UNITED PAN-EUROPE: Schneider Quits Post * N O R W A Y * STEPSTONE ASA: To Shut Down UK Offices * P O L A N D * DAEWOO-FSO: Founder Takes Company Money for Personal Use DAEWOO-FSO: Second-Quarter Sales Collapse GDYNIA HOLDING: Stocznia Gdanska Cuts 500 Jobs * S W I T Z E R L A N D * 4M TECHNOLOGIES: Seeks Support From Banks * U N I T E D K I N G D O M * CLAIMS DIRECT: Faces at Least Three Lawsuits CLAIMS DIRECT: Founders Win Battle to Take Over Company MARCONI PLC: Goldman Cuts Share Price Target MARCONI PLC: May Fall From FTSE Index MICHAEL PAGE: Comfortable With FSA Probe MICHAEL PAGE: Defends Flotation Document MICHAEL PAGE: Gloom Spreads Across Europe SCOOT.COM: To Select Loot Buyers Next Week ============= B E L G I U M ============= LERNOUT & HAUSPIE: May Sell Business in Parts --------------------------------------------- Lernout & Hauspie Speech Products NV, according to the August 10 edition of the Associated Press, may sell its core language technology business in parts as the Belgian group has enough money to survive just until the end of October. Chief executive Philippe Bodson said his company is in talks with several investors to buy parts of the division in Belgium and the United States, including Dragon Systems. He wanted to sell the language technology division in one piece and to create a new company around its technology. The deadline to attract investors for the division is on October, when the company will run out of cash. L&H filed for bankruptcy protection in the United States and in Belgium last year after an accounting scandal. L&H sold its translation unit Mendez SA on August 1 for $44.5 million to Bowne & Co. Inc. =============== B U L G A R I A =============== BALKAN AIRLINES: Posts Revenue of BGN10MM ----------------------------------------- The revenue of insolvent Balkan Airlines made from March 12 up to June 30 stands at 9.656 million Bulgarian lev, the August 8 edition of PARI Daily & World Reporter said. According to receiver Ralica Topchieva, the airline's sales income reached 5.3 million Bulgarian lev when the company restored its regular destinations to Paris, London, Moscow, Berlin, Frankfurt am Maine and Dubai in June. Topchieva added that the contract with the British Virgin Atlantic proved beneficial as it allows the Bulgarian national carrier to make flights to Hong Kong, Japan, USA and South America. Meanwhile, none of the airline's alleged potential investors have presented a rehabilitation program. Israeli, Arab and Japanese companies have indicated interest. A Sofia court in March launched insolvency proceedings against Balkan Airlines after local insurer Bulstrad, controlled by Dutch-based TBI Holding, filed a claim for $11 million. =========================== C Z E C H R E P U B L I C =========================== MORAVAN OTROKOVICE: CSOB to Send Airplane Maker Into Bankruptcy --------------------------------------------------------------- The CSOB has filed a bankruptcy proposal against airplane maker Moravan Otrokovice at the Regional Court in Brno over a disputed debt originally owed to IPB and taken over by CSOB, Czech A.M. reported yesterday. Moravan CEO Libor Soska said the company has offered a settlement to CSOB, but the bank is not interested to negotiate. Meanwhile, Moravan subsidiary Moravan Aeroplanes is expected to sign a purchase contract for bankrupt Let Kunovice, whose administrator said there is no reason the contract should not be signed as long as Moravan pays the whole price. =========== F R A N C E =========== AMF BOWLING: Posts Statement of Financial Affairs ------------------------------------------------- AMF Bowling Worldwide, Inc. has reported its income from operation of business the past three years prior to the filing of chapter 11 cases as: For the six months ended 6/30/01 $316,716 For the year ended 12/31/00 635,264 For the year ended 12/31/99 656,097 AMF Bowling said that properties has been attached under legal process within the past year prior to the filing of these cases, by: Description & Value of Property ------------------------------- Sunnyside Investments Attachable property $891,500 Greg A. Green Real Property 10,065 R.L. Vanderlught Cash 923 Harbin Haileng Cash 2,800 In the ordinary course of business, AMF Bowling make donations to local charities, material donations are by: Donor Recipient Amount ----- --------- ------ US BCO Special Olympics $35,659 Spain BCO AFANDE 70,000 WINC Dustin O'Neal 29,274 AMF Bowling added the occurrence of losses from fire, theft or other casualty one year preceding from the filing of these cases, material losses are: Hong Kong BPO Loss of equipment at Zhonglu $ 300,000 Durham Lanes Equipment/property damaged by fire 1,900,000 East Point Lanes Equipment/property damaged by fire 2,400,000 The company also said they made payments during the past year preceding the filing of these cases related to debt counseling or bankruptcy, material amounts are: Arthur Andersen LLP Restructuring Advisors $ 720,846 McGuireWoods Legal Advisors 1,903,526 The Blackstone Group Financial Advisors 2,697,120 Wachtell Lipton Rosen & Katz Legal Advisors 466,789 Willkie Farr & Gallagher Legal Advisors 2,100,000 AMF Bowling further disclosed that Citibank, N.A., as agent for the pre-petition senior lenders, filed certain mortgages and leasehold mortgages on certain domestic bowling centers in the year before the commencement of these cases. The bowling centers affected are the AMF Aley Katz in Gainesville, Florida, the AMG Classic in Chicago Heights, Illinois, the AMF Centereach in Centereach, New York, the AMF Sheridan in Mineola, New York, the AMF Boulevard in Philadelphia, Pennsylvania, AMF Classic Lanes in Lubbock, Texas, the AMF Country Lanes in San Antonio, Texas, the AMF Ponderosa in San Antonio, Texas, the AMF Spare Time in Arlington, Texas, the AMF Annandale Lanes in Annandale, Virginia and the AMF Hiddenwood in Newport News, Virginia. AMF Bowling also disclosed that it holds property owned by another person that the company holds or controls. In addition to the property held for another person in the course of business, AMF Bowling Centers, Inc., holds funds in league banking escrow accounts for the benefit of league participants and holds customer deposits for lockers and similar items. Material amounts of properties in the possession of the Debtors belonging to other entities include: Coca Cola Coke resale equipment $7,400,000 E*Trade ATM ATM Machines 1,500,000 Various League Tournament Funds 2,775,656 The bowling company also revealed that it was a partner or owns 5% or more of the voting or equity securities of these business ventures: AMF BCO-France One, Inc. 05/15/89-present AMF BCO-France Two, Inc. 05/15/89-present AMF BCO-UK One, Inc. 04/24/89-present AMF BCO-UK One, Inc. 04/24/89-present AMF Boliches, Inc. 05/18/89-present AMF Group Holdings, Inc. 01/12/96-present AMF Bowling Mexico Holdings, Inc. 08/27/86-present Bowling Products, Inc. 08/27/96-present AMF Bowling Worldwide, Inc. 12/27/95-present AMF Bowling Centers Holding, Inc. 01/16/96-present AMF Bowling Center International, Inc. 11/28/98-04/2000 AMF Bowling Worldwide, Inc., and its financial and accounting employees maintain in the normal course of business the company books of account and records. Arthur Andersen LLP has been retained as the independent public accountant for AMF Bowling Worldwide, Inc., its subsidiaries, and its parent AMF Group Holdings, Inc., since May 1, 1996 and certain firms in some countries are retained to perform statutory audits. (AMF Bowling Bankruptcy News, Issue No. 6; Bankruptcy Creditors' Service, Inc., 609-392-0900) FRANCE SOIR: Unions Call for Re-Launch Plan ------------------------------------------- Combined journalistic unions at France-Soir have called for directors of the group to formulate conditions under which the newspaper might resume publication, the Monday edition of La Tribune & World Reporter said. Earlier, France-Soir's management threatened to file for bankruptcy if no social agreement is reached soon. MANGOOSTA: Nerim to Acquire Internet Firm ----------------------------------------- Nerim has been given the green light to acquire the business of Internet access provider Mangoosta, the Monday edition of les Echos said. Nerim, which offers high-speed Internet access throughout France, filed for bankruptcy at the start of July and went into liquidation on August 2. Citibell also submitted an offer for Mangoosta. ============= G E R M A N Y ============= GET AG: Applies for Insolvency Proceedings ------------------------------------------ German media company get AG, according to the August 10 edition of Suddeutsche Zeitung & World Reporter, has applied for insolvency proceedings owing to a lack of liquidity. get AG made an unsuccessful attempt to find investors through an advertising campaign a few months ago, but the company's promise to investors of maintenance of value and growth guarantee was questioned by various media sources. ============= I R E L A N D ============= INDIQU IRELAND: Enters Liquidation ---------------------------------- Mobile phone games developer Indiqu Ireland has entered liquidation, the August 9 edition of Business and Finance & World Reporter said. The company, with debts of more than IR100,000, had been seeking up to IR1 million in order to continue operating on its own after its US parent shut down due to lack of funds. Operations in Canada, France and Spain have also shut down recently. Brendan O'Donoghue of McStay Luby was nominated for liquidator. ===================== N E T H E R L A N D S ===================== UNITED PAN-EUROPE: Schneider Quits Post --------------------------------------- United Pan-Europe Communications chairman and chief executive Mark Schneider is quitting the troubled Dutch cable group, the Financial Times reported on Tuesday. The decision was made public hours after the company posted widening second-quarter net losses. Schneider said he wanted to spend more time with his family in the US, but his decision was interpreted as indicating a hardening desire by UPC's US backers to save Europe's biggest cable operator. Schneider will stay until a successor is found. Supervisory board chairman Mike Fries is tipped as a potential candidate. UPC has 8 billion euros of debt. Although it has 1.1 billion euros of cash, it is burning 129 million euros a month and does not expect to be profitable until the second half of 2004. =========== N O R W A Y =========== STEPSTONE ASA: To Shut Down UK Offices -------------------------------------- Online recruitment agency StepStone, according to the Tuesday edition of the Financial Times, will close its UK regional offices in Scotland and in West Yorkshire after seeing a drop in hiring rates. The move will lead to 40 job losses, about 26% of its overall staff in the UK. Managing director Kevin Kerrigan declined to disclose details of the company's current trading performance in the UK or how much cash it had available. StepStone, which advertises thousands of jobs in 17 countries, reported a widening second-quarter loss last month. The company plans to seek additional sources of financing within the next 12 months. =========== P O L A N D =========== DAEWOO-FSO: Founder Takes Company Money for Personal Use -------------------------------------------------------- Daewoo Group founder Kim Woo-Choong reportedly took more than $7.5 million of company money before he disappeared, the Monday edition of the Agence France-Presse said. Kim, the target of an international arrest warrant, spent $5 million dollars on a vineyard in France, and another $2.5 million donated to a US university, which his son attended. Court record also shows money was used to pay Kim's credit card bills and tuition and other expenses for Kim's children. The gambling debts of a Daewoo official were also taken cared of. Investigators are still looking into the final amount of money that was taken from the company for the personal use of Kim and his family. Daewoo Group, once South Korea's second-biggest conglomerate, collapsed under an estimated $80 billion of debt in 1999. The founder disappeared shortly after while supposedly on a business trip to China. Last month, seven former Daewoo executives were jailed for between three and seven years for falsifying accounts and diverting company funds. Twelve other executives received suspended prison terms. DAEWOO-FSO: Second-Quarter Sales Collapse ----------------------------------------- Daewoo Motor Sales, the marketing arm of bankrupt South Korean carmaker Daewoo Motor, said its sales fell to 1,650 billion won ($1.3 billion; 903 million pounds) in the first six months of the year, down from 2,600 billion won in the first half of 2000, BBC News reported on Tuesday. Profits over the same period were 14.2 billion won, down 71% year-on-year. Part of the reason for Daewoo Motor Sales' grim results was a straightforward fall in the number of vehicles sold. Daewoo Motor was made bankrupt in November. Its laid off workers have repeatedly protested against restructuring at the firm. GDYNIA HOLDING: Stocznia Gdanska Cuts 500 Jobs ---------------------------------------------- Shipbuilder Stocznia Gdanska, which belongs together with Gdynia shipyard to Gdynia Holding, will cut its workforce of 4,000 by 500, the Monday edition of Lloyd's List International & World Reporter said. The Gdansk employees who will be laid off in September are mainly not employed directly in production. They carry out administrative jobs like service workers and support staff. A certain number of them will directly retire. Gdynia spokesman Miroslaw Piotrowski said that there would not be any reduction of staff at Gdynia shipyard. The Gdynia group bought the Gdansk yard after it was declared bankrupt. ===================== S W I T Z E R L A N D ===================== 4M TECHNOLOGIES: Seeks Support From Banks ----------------------------------------- 4M Technologies, the Swiss CD and DVD production machinery company, seeks to secure support from the banks syndicate, until the market recovers fully or until the outcome for the search for new investors or partners becomes positive. The board of directors has decided to deposit on Tuesday a demand of moratorium by assets liquidation of the company. 4M Technologies may face insolvency as it has failed to obtain a fresh injection of capital from banks and investors. Its problems began in November of last year, following a sharp drop in demand for production systems for recordable CDs. =========================== U N I T E D K I N G D O M =========================== CLAIMS DIRECT: Faces at Least Three Lawsuits -------------------------------------------- Personal injury specialist Claims Direct is facing at least three lawsuits brought by disgruntled shareholders and claims managers, the Financial Times reported on Tuesday. About five Claims Direct franchisees, co-coordinated by Carroll Legal & Arbitration Services, contacted City law firm Class Law on Friday. They are examining whether legal proceedings can be brought against co-founders Colin Poole and Tony Sullman, with Stephen Hyde, who organized the 180p flotation in July. The franchisees allege that executives misrepresented the likely success of the company's business model. Poole has disputed the allegations and said the company would defend any future case. Claims Direct is already facing arbitration proceedings from 25 franchisees claiming compensation of 16.5 million pounds. A further 10 franchisees are planning to issue proceedings for alleged breach of contract and misrepresentation. Claims Direct plans to defend both cases. CLAIMS DIRECT: Founders Win Battle to Take Over Company ------------------------------------------------------- Founders Tony Sullman and Colin Poole of personal injury specialist Claims Direct has secured 55.4% of acceptances and declared their bid wholly unconditional, the Tuesday edition of the Financial Times said. The founders have offered 10p a share, which was recommended by the independent directors last week. Meanwhile, negotiations between the founders and private investor Simon Ware-Lane on their 10p-a-share takeover bid for the company are continuing. According to the Claims Direct Action Group, which represents about 75 retail investors, there will be some retail investors who decide not to accept the offer because of the strength of feeling against Sullman and Poole. MARCONI PLC: Goldman Cuts Share Price Target -------------------------------------------- Goldman Sachs has reduced the share price target of telecoms equipment maker Marconi to 55 pence from 120 pence and kept its recommendation as "market underperformer." According to Reuters' Tuesday report, Marconi's high debt was a significant swing factor in the equity valuation. Goldman Sachs added that even if the company reaches its net debt target of 2.5 billion pounds, they estimate the share price should not trade above 74p. MARCONI PLC: May Fall From FTSE Index ------------------------------------- The sliding stock of telecom giant Marconi on Tuesday could result in the fall of the company from the FTSE index of 100 leading shares, BBC News reported. Marconi's share price slip below 72p amidst worries that delayed new orders would force the company to issue another profit warning. The possible relegation also concerns about the downgrade of the company by investment bank Goldman Sachs and a threat of a costly lawsuit from angry investors in the US. Marconi's 3-billion-pound debt continues to burden the company that slashed 4,000 jobs last month, 1,500 of them in the UK. Credit rating agencies Moody's Investors Service and Standard & Poor's downgraded Marconi last week. MICHAEL PAGE: Comfortable With FSA Probe ---------------------------------------- Recruitment company Michael Page International said it was comfortable with the information released by the City watchdog to investors about the investigation over its 650-million-pound stock market flotation in March, according to the Tuesday edition of the Financial Times. The Financial Services Authority began an investigation following a profits warning from the company three months after its flotation. The FSA is looking into whether Michael Page made accurate projections at the time of the float and whether the group has kept the markets properly informed of price sensitive information. Michael Page's profits warning in June sent the shares down 20%, forcing them below their 175p offer price. The price had already been reduced from the original range of 190p-250p, which would have valued the company between 713 million pounds and 938 million pounds. MICHAEL PAGE: Defends Flotation Document ---------------------------------------- Michael Page International, the recruitment company under investigation by the Financial Services Authority over its 650- million-pound flotation in March, was confident there was no case to answer, the Independent News reported yesterday. The FSA is looking at whether Michael Page made misleading statements to potential investors in its prospectus for its stock market flotation. The City watchdog is also examining whether the company has kept investors properly informed of price-sensitive information. Michael Page chief executive Terry Benson denied it should have warned the market sooner of a downturn in its fortunes. MICHAEL PAGE: Gloom Spreads Across Europe ----------------------------------------- The difficult trading conditions of recruitment company Michael Page has extended from the US and Australia to the UK and Europe, the Tuesday edition of the Financial Times said. While pre-tax profits in the first-quarter rose 10% to 38.3 million pounds, Michael Page noted weakening demand towards the end of the second quarter as conditions in the personnel business have weakened this year when companies reduced their head counts and cut back on filling vacancies. Last week, the Financial Services Authority launched an investigation into whether Michael Page complied with listing rules in its 650-million-pound scaled-down flotation in March. The watchdog's concerns are understood to center on whether Michael Page made accurate projections at the time of the float, and whether it acted quickly enough to inform investors of a downturn in its business. SCOOT.COM: To Select Loot Buyers Next Week ------------------------------------------ Online directories firm Scoot.com will select next week a short list of buyers for Loot, its profitable free-ads newspaper. In a report dated August 14, the Financial Times said that the move comes as Scoot is facing a crisis by the end of August, and needs to have a buyer lined up for Loot. Scoot.com will run out of cash by the end of the month if it fails to raise new money through a bridging loan. Its 14-million- pound convertible debenture also matures on August 28, and converting the debenture would give debenture holders more than 30% of the company. Scoot's only way of paying off the debenture holders in cash would mean selling the whole of Scoot, or its Loot subsidiary. Loot is expected to raise about 50 million to 70 million pounds. ************ 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. Lourdes Reyes, 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 * * *