/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/010924.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, September 24, 2001, Vol. 2, No. 186 Headlines * A U S T R I A * YLINE AG: Subsidiary to Undergo Composition Proceedings * C Z E C H R E P U B L I C * INVESTICNI A POSTOVNI: J.P. Morgan to Set IPB Value * G E R M A N Y * ADAM OPEL: Suspends Meeting to October GOERTZ PAPIER: Will Continue Operations REFUGIUM AG: Retirement Home Operator Liquidated * I T A L Y * ALITALIA-LINEE: Seeks ITL700BB Refinancing E.BISCOM: May Beat 2000 Results * N E T H E R L A N D S * PHARMING GROUP: Genzyme to Acquire Part of Pharming N.V UNITED PAN-EUROPE: To List Priority Unit on Euronext * N O R W A Y * KVAERNER ASA: In Financial Crisis KVAERNER ASA: Shares Drop Amid Bankruptcy Fears * P O L A N D * DAEWOO MOTOR: GM to Take Part of Daewoo * S W I T Z E R L A N D * SWISSAIR GROUP: Posts Loss of CHF65MM in Revenues SWISSAIR GROUP: Shares Plunge 13.7% * U N I T E D K I N G D O M * EIDOS PLC: Revenues Fall 27% Despite Signs of Recovery EQUITABLE LIFE: Halifax to Provide 250MM Pounds EQUITABLE LIFE: Reveals Compromise Plan INVENSYS PLC: Shares Fall Anew MARCONI PLC: Shares Sink to Lowest Level Since 1970s NTL INCORPORATED: Reaffirms Third-Quarter Performance PPL THERAPEUTICS: To Proceed With 30MM-Pound Rights Issue ============= A U S T R I A ============= YLINE AG: Subsidiary to Undergo Composition Proceedings ------------------------------------------------------- i-online, the subsidiary of Wien-based Internet software company Yline, is expected to undergo composition proceedings in the wake of its parent's insolvency, the September 20 edition of Die Presse/FT Information said. YLine head Werner Bohm may face criminal charges amid investors' claims that he gave them false information. The company's share price has fallen to 0.5 euros amid suspicion of insider dealing. Vienna-based YLine owes Austrian Internet and telecoms company CyberTron 2.8 million euros. Earlier this month, Yline appointed Dr. Anton Stumpf as chief representative in order to support the company's ongoing restructuring project. Dr. Stumpf will assist management in improving financial performance and streamlining the cost structure of the company to achieve profitability. For inquiries, mail to investor@yline.at or call +43/1/91 91 19-0 =========================== C Z E C H R E P U B L I C =========================== INVESTICNI A POSTOVNI: J.P. Morgan to Set IPB Value --------------------------------------------------- J.P. Morgan Chase & Co. will be hired to assess the value of failed Czech bank Investicni a Postovni Banka, Dow Jones Newswires reported on Thursday. Ceskoslovenska Obchodni Banka AS (CSOB), which took over the collapsed bank in June, and the IPB administrator sought a third opinion after being given two different valuations by previous assessors. The value of IPB at the time of the takeover is key to setting the price CSOB will pay for IPB's assets. ============= G E R M A N Y ============= ADAM OPEL: Suspends Meeting to October -------------------------------------- General Motors' German arm Adam Opel AG will postpone its September 24 extraordinary supervisory board meeting regarding its Olympia restructuring plan until after GM's third-quarter earnings on October 18, Dow Jones Newswires reported on Thursday. Opel Spokesman Ruediger Assion said the delay is due to stock exchange regulations, as the details of the Olympia may influence GM's share price. A month ago, Opel forecasted that its Olympia restructuring program would help the group to achieve turnaround. The plan calls for a 15% cut in production, or a decrease of about between 300,000 and 350,000 cars per year. Opel posted losses of DM835 million last year. GOERTZ PAPIER: Will Continue Operations --------------------------------------- Paper and plastics processing company Goertz Papier- und Kunststoffverarbeitungs-GmbH & Co KG (Bad Harzburg, Germany) will continue operating throughout insolvency proceedings, reports the September 19 edition of Frankfurter Allgemeine Zeitung, Goertz will retain as many jobs as possible. Insolvency administrator Johannes Franke also noted that parties interested in the business had made unacceptable offers. REFUGIUM AG: Retirement Home Operator Liquidated ------------------------------------------------ The insolvent Koenigswinter-based retirement home operator Refugium Holding AG has been liquidated, as assets were completely insufficient to meet the demand of its shareholders and creditors, the September 19 edition of Suddeutsche Zeitung & World Reporter said. Shareholders, who put up around DM83 million during the first public offering and as part of a capital increase, will see little of their investment. Creditors will also look in vain to recoup their losses of DM417 million. Pako Immobilien AG, which owns 27 of the 57 homes run by Refugium, earlier announced that it is not willing to support efforts to keep the company together and in operation. ========= I T A L Y ========= ALITALIA-LINEE: Seeks ITL700BB Refinancing ------------------------------------------ Italy's state-controlled national carrier Alitalia SpA presented emergency measures to the government last week, requesting for tax breaks and other financial credits of estimated ITL600-700 billion, the September 20 edition of Dow Jones Newswires said. The government has not promised any aid to the unprofitable airline, which would have needed to ask the government for a ITL2 trillion capital increase even before the September 11 terrorist attack in the U.S. wreaked havoc on the airline industry. Earlier, Alitalia reported a first-half net loss of ITL503 billion, compared with a net loss of ITL352 billion in the same period last year. The airline blamed its unfavorable results on the slowdown in the world economy, political crisis in the Middle East, and consistently elevated petrol prices. E.BISCOM: May Beat 2000 Results ------------------------------- Italian broadband operator e.Biscom may post better-than-expected full-year results, the September 20 edition of Reuters said. Chairman Francesco Micheli did not give a figure for current expectations, nor did he say which type of earnings he was referring to. e.Biscom earlier posted a wider second-quarter consolidated net loss of 30.5 million euros, compared with 12.9 million euros in the same quarter last year. It also recorded a 30.7-million-euro loss in the first quarter. ===================== N E T H E R L A N D S ===================== PHARMING GROUP: Genzyme to Acquire Part of Pharming N.V ------------------------------------------------------- U.S.-based biotechnology company Genzyme Corporation has signed a conditional agreement to acquire certain assets of Pharming N.V., the Belgian subsidiary of cash-strapped Dutch biotechnology company Pharming Group N.V., which is currently operating under a court-supervised receivership. The conditional agreement, subject to the approval of the commercial court in Turnhout City in Belgium and the Board of Directors of Genzyme Corporation, is expected to close in October. Other terms of the contract were not disclosed. UNITED PAN-EUROPE: To List Priority Unit on Euronext ---------------------------------------------------- United Pan-Europe Communications NV, the largest pan-European broadband communications company, plans to list its business telecoms unit Priority Telecom NV by September 28, Dow Jones Newswires reported on Thursday. The offering won't raise any fresh cash for Priority. Rather, it will be a technical listing on Euronext Amsterdam, where UPC shares trade. Under the terms of the listing, Priority will take over some of UPC's 8 billion pounds in debt but will still retain sufficient cash on its balance sheet. UPC is incurring large losses as it invests heavily to offer new services, such as high-speed Internet access, via the cable lines it owns throughout Europe. The company estimates that it has enough cash and equivalents to last through early 2004. =========== N O R W A Y =========== KVAERNER ASA: In Financial Crisis --------------------------------- Kvaerner ASA, according to the Thursday edition of AFX News, is running out of time to secure the financial guarantees it need to safeguard its existence. One broker said that the Anglo-Norwegian engineering and construction group is in a financial crisis but has denied for a long time that it was in need of cash. Christian Tenor of Karl Johan Fonds in Oslo said he sees no potential buyers for the business at the moment, and he considers it unlikely that any prospective purchaser would be prepared to take on Kvaerner's debt. Kvaerner's head of information, Marit Ytreeide, said the company is confident that a guarantee consortium for the planned rights issue of between 1.5 billion and 2 billion Norwegian krone will be in place soon. A short-term financing package of 900 million Norwegian krone has already been secured. KVAERNER ASA: Shares Drop Amid Bankruptcy Fears ----------------------------------------------- Shares of Lysaker-based engineering and construction firm Kvaerner ASA fell to 8.1 Norwegian krone after the company said it is still trying to find a guarantee consortium to back its new share issue, raising fears among investors that the company may be close to bankruptcy, AFX News reported on Thursday. Analysts said there is a lot of uncertainty regarding the price of the rights issue and the amount of shares that will be issued. The board of Kvaerner announced last week that it has decided to recommend a rights issue of between 1.5 billion and 2 billion Norwegian krone. The board's decision was taken following consultation with the company's largest shareholders and principal lenders. The board will determine the terms and conditions for the issue in due course. A proposal will be presented to shareholders at an Extraordinary General Meeting at the end of October. For more information, one may contact Trond Andresen, Senior Vice President, Group Communications at +44 (0)7770 856550 or Paul Emberley, Vice President Group Communications at +44 (0)20 7339 1035 or +44 (0)7768 813090. =========== P O L A N D =========== DAEWOO MOTOR: GM to Take Part of Daewoo --------------------------------------- American carmaker General Motors, according to the Friday edition of the Daily Telegraph, is ready to take over two-thirds of South Korea's bankrupt Daewoo Motor business for $400 million. GM would not confirm the terms or admit that a deal was imminent. The South Korean government hoped to sell the business in one piece, but it is understood that GM will buy only some of the 16 plants. It was not clear, however, what would happen to Daewoo's plants in Poland, Uzbekistan and India. President Kim Dae-Jung has been desperate to find a foreign investor for the carmaker, which filed for bankruptcy last November owing $17 billion. Daewoo Motor was put up for sale after huge financial losses relating to Asia's economic crisis in 1998. ===================== S W I T Z E R L A N D ===================== SWISSAIR GROUP: Posts Loss of CHF65MM in Revenues ------------------------------------------------- Swissair Group has lost around CHF65 million in revenue since the September 11 terrorist strikes in the U.S., the Thursday edition of Dow Jones Newswires said. As a result of the attacks, the group expects a drop of up to 15% in the number of passengers on North Atlantic routes, and a drop of up to 10% on other routes. The group said it would detail a revised restructuring plan in October. Some observers have said the Swiss aviation group needs to downsize its flight network to regain profitability. Swissair Group has a CHF1-billion credit facility through a consortium of banks including Credit Suisse First Boston, Deutsche Bank AG and Citibank. Swissair Group's debt level stood at around CHF15 billion and shareholders' equity was CHF555 million at mid-year 2001. The company, which recorded a net loss of CHF234 million francs (see http://bankrupt.com/misc/swissair1.pdffor the group's consolidated income statement) in the first half of 2001, has repeatedly denied rumors it could go bankrupt. SWISSAIR GROUP: Shares Plunge 13.7% ----------------------------------- Stock in troubled airline Swissair plunged 13.7%, to 43 Swiss francs in early trading on Thursday, pushing the blue-chip Swiss Market Index lower, Reuters reported. Swiss president Moritz Leuenberger said in a television interview that Swissair must detail how it plans to restore the group to profitability before the government would decide on any financial support. =========================== U N I T E D K I N G D O M =========================== EIDOS PLC: Revenues Fall 27% Despite Signs of Recovery ------------------------------------------------------ Lara Croft creator Eidos reported a 27% decrease in revenue in the first quarter (from 16.8 million pounds to 12.2 million pounds), but said it had a 12% improvement in gross margins, the Thursday edition of the Financial Times said. Improved margins helped the computer games developer trim its losses before interest, tax, amortization and depreciation from 17.7 million to 10.6 million pounds in the three months to June 30. Eidos has been plagued by profit warnings, write-offs, a management exodus and a failed takeover bid last year by French rival Infogrames Entertainment. It went to market with a discounted rights issue in June to raise 52 million pounds with a 1-for-3 cash call at 155p a share. EQUITABLE LIFE: Halifax to Provide 250MM Pounds ----------------------------------------------- Halifax will put an additional 250 million pounds into Equitable's with-profits fund next March if its compromise scheme goes through, the Thursday edition of the Financial Times said. The mortgage bank initially paid 500 million pounds in February when it acquired the mutual's assets, including its fund management operation, administration systems and sales force, which it rebranded Halifax Equitable. The stability granted by a successful compromise, plus the injection of further funds, should restore Equitable's investment flexibility. If the fund were stabilized through a compromise, it could be absorbed by another strong entity, a role for which Halifax appears to be in pole position, the FT added. Equitable Life closed its doors to new business at the end of last year and sold assets to Halifax, after the House of Lords ruled that its decision to cut pension bonuses to holders of guaranteed pension policies was illegal. EQUITABLE LIFE: Reveals Compromise Plan --------------------------------------- Britain's troubled life assurer Equitable Life on Thursday unveiled its compromise plan to stabilize the society and settle competing claims on the with-profits fund. Under the scheme, 70,000 policyholders with guaranteed annuity rate pensions (GARs)will get an average 17.5% increase in their policy values but must sign away rights to the guarantee. The 415,000 holders of with-profits pensions without guaranteed annuities get an average 2.5% raise, but must give up their right to sue Equitable over mis-selling. According to Equitable chairman Vanni Treves, policyholders have no realistic alternative to Equitable's plan. There are fears that if policyholders reject the plan, Equitable faces possible insolvency, but the assurer has stressed that it would stay in business even without a compromise. The Financial Services Authority said it would assess the final scheme to ensure guaranteed and non-guaranteed policyholders were being offered a fair deal: "If a scheme were not approved, we would be likely to require Equitable Life to carry out a review to establish whether or not there had been mis-selling and, if necessary, to rectify the problem." INVENSYS PLC: Shares Fall Anew ------------------------------ Shares in the London-based engineering group Invensys fell an additional 9%, despite the company's attempt to reassure investors about its trading prospects, the September 21 report of the Daily Telegraph said. Invensys has already announced 6,000 job cuts this year, blaming the impact of the global economic slump for a fall in orders for appliance and climate controls. ING analyst Mike Blogg also said investors were scared following the September 11 terrorist attacks in the United States. Invensys' shares tumbled 26% to a 10-year low early last week on fears over its debt position. The group's debt level is currently at 3.4 billion pounds. MARCONI PLC: Shares Sink to Lowest Level Since 1970s ---------------------------------------------------- Shares of telecom equipment maker Marconi fell 2.5 to 23p on Thursday, their lowest level since the mid-1970s, reflecting market fears that the company's poor financial situation could deteriorate further. The Daily Telegraph reported that the stock dropped on concerns that the group's biggest customer, British Telecom, will cut back its 3.9-billion-pound annual equipment spending budget. Marconi declined to comment on the reasons for the share price fall. The company pledged to reduce its debt from 4.4 billion pounds to nearly 3.2 billion pounds by next March, by generating 500 million pounds of operating profits and making 500 million pounds of disposals. NTL INCORPORATED: Reaffirms Third-Quarter Performance ----------------------------------------------------- Telecommunications and cable communications provider NTL Incorporated said last week that the terrorist attacks in the United States on Sept. 11 have had no recognizable negative impact in its business operations or performance. NTL, shouldering some $16.4 billion in long-term debt, added that the company will meet or exceed its EBITDA target of 130 million pounds for the third quarter this year, and that it is in compliance with all of its bank agreements and other covenants. The cable company's bonds fell dramatically in July, causing fears that the markets may not fund any extra investment needed to see the company into profitability. PPL THERAPEUTICS: To Proceed With 30MM-Pound Rights Issue ------------------------------ ------------------- Biotechnology company PPL Therapeutics will go ahead with a 30- million-pound rights issue after Deutsche Bank agreed to fully underwrite the issue, the Financial Times reported on Thursday. PPL will offer up to 64,029,452 new ordinary shares, in a 20-for- 17 rights issue at 50p a share. The price is well below the 120p level when the original fundraising was announced. PPL said the money raised from the rights issue would cover its expenditure and working capital requirements until its emphysema drug AAT reaches the market by 2004 or 2005. PPL had been low on funds for sometime, but failed to win support for an attempt to raise 40 million pounds earlier this year because of fears over the effect of foot-and-mouth disease on its genetically modified sheep. The latest attempt to raise funds was been hampered by the terrorist attacks in the United States on Sept. 11. PPL had net cash of 4.1 million pounds in July, which will last only until the end of the year. ********** 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. 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