/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/011019.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, October 19, 2001, Vol. 2, No. 205 Headlines * B E L G I U M * SABENA SA: EU Okays Government's 125MM Euro Loan * F I N L A N D * SONERA CORP.: To Sell Directory Service Unit * G E R M A N Y * I-CENTER ELEKTROGROSHANDEL: Files for Insolvency LIPRO AG: Under Suspicion Over Expose * I R E L A N D * AER LINGUS: EU Rejects Loan Request * I T A L Y * ALITALIA-LINEE: To Receive Final 750BB Aid * N E T H E R L A N D S * NBBS: Airtrade Takes Over Budget Air Stores UNITED PAN-EUROPE: Sells Stake in Spanish Firm * N O R W A Y * C.REL: Software Firm Declared Insolvent ENITEL ASA: Orkla Enskilda Recommends Enitel Shares KVAERNER ASA: Yukos to Buy More Kvaerner Shares * S W E D E N * ADERA AB: To Post Interim Report Earlier ICON MEDIALAB: To Post Third-Quarter Results Next Week * S W I T Z E R L A N D * SVENSK VODKA: Administrator Seeks Vodka Buyer SWISSAIR GROUP: Government Ready to Invest in New Airline * U N I T E D K I N G D O M * EGG PLC: Cuts Third-Quarter Pretax Losses EQUITABLE LIFE: Government Calls for Deeper Equitable Probe EQUITABLE LIFE: Welcomes Baird Report JAZZTEL PLC: Execs Sell Jazztel Stake MARCONI PLC: EU Approves Sale of Medical Unit MARKS & SPENCER: To Cease Belgian Operations in December PHOTOBITION GROUP: To Restructure 103.5MM-Pound Debt ============= B E L G I U M ============= SABENA SA: EU Okays Government's 125MM Euro Loan ------------------------------------------------ Sabena said Wednesday that the European Commission approved the Belgian government's 125 million euro bridge credit for the cash- strapped national airline despite protests from rival carriers. The loan was accepted as an emergency measure, to be paid back according to market rates, and must lead to a fundamental restructuring plan that includes the selling of subsidiaries and establishing a new company. EU Transport Commissioner Loyola de Palacio said that the loan for Sabena was for one month, but it could be extended for up to six months until a restructuring or winding up of the company would be decided. The Brussels Trade Court has granted Sabena judicial composition until November 30, after the collapsed co-parent Swissair denied its promised capital injection. Sabena obtained a further court order protecting Sabena's assets in the United States from creditor action. The order will continue until a hearing on December 4 when Sabena will seek a continuance of the preliminary injunction should the Belgian temporary moratorium be extended beyond November 30. ============= F I N L A N D ============= SONERA CORP.: To Sell Directory Service Unit -------------------------------------------- Cash-strapped Finnish telecom operator Sonera Corp. is considering several offers for its directory-service unit to further reduce the debt load, the Wall Street Journal reported Wednesday. U.S. private-equity firms, including Hicks, Muse, Tate & Furst Inc., Texas Pacific Group and Apax & Partners, as well as Swedish telephone-directory company Eniro AB, have each approached Sonera regarding the unit. The price tag for the Sonera unit is roughly at 150 million euros. ============= G E R M A N Y ============= I-CENTER ELEKTROGROSHANDEL: Files for Insolvency ------------------------------------------------ Electronics wholesaler I-Center Elektrogroshandel GmbH has filed for insolvency at a Nuremberg court after it failed to find partners with strong capital, the Wednesday edition of Frankfurter Allgemeine Zeitung/FT Information said. The insolvency was blamed on overcapacity at manufacturers, low turnover and narrow margins. I-Center was founded in 1996 from a division of German electronics group Siemens. LIPRO AG: Under Suspicion Over Expose ------------------------------------- German software developer and manufacturer Lipro AG is under suspicion after it announced that administrators had discovered accounts that had disappeared, the Borsen-Zeitung/FT Information reported Wednesday. This made the company's share price rise to 0.40 euros before falling to 0.30 euros. Lipro has initiated insolvency proceedings in a Berlin- Charlottenburg court, where it presented a restructuring plan that envisions spinning off of the company's operating business. ============= I R E L A N D ============= AER LINGUS: EU Rejects Loan Request ----------------------------------- The European Commission has refused to permit state aid on Ireland's state carrier Aer Lingus, reports The Times newspaper. According to EU Transport Commissioner Loyola de Palacio, Aer Lingus could not qualify for rescue aid unless a judge declared the airline insolvent and unable to pay creditors. Meanwhile, the Irish government warned that Aer Lingus needed an immediate cash injection. The Irish carrier was losing money before the September 11 terrorist attacks, and is losing 2.5 million euros a day after the collapse of its core business of traffic to and from the US. ========= I T A L Y ========= ALITALIA-LINEE: To Receive Final 750BB Aid ------------------------------------------ Alitalia SpA will receive the last 750 billion Italian lira tranche, part of a state aid package approved in 1996, the Dow Jones Newswires reports. E.U. Transport Commissioner Loyola de Palacio said that the tranche would be granted, under the condition that the airlines stick to previously agreed guidelines. In 1996, the commission authorized a total of 2.75 trillion Italian lira in aid for Alitalia, but the airline still has a last tranche of 750 billion Italian lira left. ===================== N E T H E R L A N D S ===================== NBBS: Airtrade Takes Over Budget Air Stores ------------------------------------------- Dutch flight retailer Airtrade Holland has taken over four Budget Air stores from insolvent Dutch travel company NBBS, the Het Financieele Dagblad and FT Information reported Wednesday. The takeover price over the recently acquired units in the Utrecht, Rotterdam, The Hague and Amsterdam were not disclosed. Meantime, the name Budget Air will remain as the stores continue to operate under the new owner. Airtrade intends to retain as many NBBS employees as possible. UNITED PAN-EUROPE: Sells Stake in Spanish Firm ---------------------------------------------- Grupo Dragados SA, Hidroelectrica del Cantabrico SA and Alo Comunicaciones SA have raised their stakes in wireless operator Banda Ancha SA through the joint acquisition of United Pan-Europe Communications NV unit Priority Wireless' 30% stake, reports AFX News. Financial details of the operation were not disclosed. Dutch cable network operator UPC earlier said it needed up to one billion euros to solve its cashflow hurdle. It has a cash burn of 150 million euros per month, and a cash burn target of 125 million euros per month next year. Early this month, Standard & Poor's and Moody's Investors Service lowered their ratings on UPC to CCC and Caa3, respectively. The downgrade was based on the continued uncertainty on the restructuring of UPC's highly leveraged balance sheets. =========== N O R W A Y =========== C.REL: Software Firm Declared Insolvent --------------------------------------- Norwegian software company c.Rel, controlled by financier Christen Sveaas, has been declared insolvent, the Tuesday edition of Dagens Naeringsliv/FT Information said. The decision came as Volvofinans Konto, a subsidiary of the financial division of Swedish vehicle manufacturer Volvo, backed out on their intention with c.Rel. Without the deal, c.Rel's planned share issue was trashed as its future operation is foreseen to end. The Norwegian press revealed earlier that Sveaas, who controls 42.1% of the company, has recorded losses of 500 million Norwegian krone on his IT investments. ENITEL ASA: Orkla Enskilda Recommends Enitel Shares --------------------------------------------------- Stock broker Orkla Enskilda Securities, according to the Wednesday edition of Dagens Naeringsliv/FT Information, has organized two share issues for Enitel, the insolvent Norwegian supplier of telecommunications and data services. While Orkla Enskilda published 13 'buy' recommendations during the share issues, other stockbrokers warned its customers about Enitel's shares. Enitel filed for protection from creditors in August. It expects to receive between 350 million and 400 million Norwegian krone from the sale of its subsidiaries. KVAERNER ASA: Yukos to Buy More Kvaerner Shares ----------------------------------------------- Yukos Finance BV, according to the recent report from AFX News, offered to acquire 13,760,992 shares in the troubled Anglo- Norwegian engineering and construction group Kvaerner ASA at 15 Norwegian krone per share. The new offer will lift the stake of Yukos to 25%. Yukos Finance currently owns 12,897,487 Kvaerner shares, representing approximately 12.10% of the issued shares. Last month, Kvaerner revealed that it would have to raise 1 billion Norwegian krone in capital to avoid bankruptcy. =========== S W E D E N =========== ADERA AB: To Post Interim Report Earlier ---------------------------------------- Adera will publish its interim report for the January 1 to September 30 period on October 24, instead of previously announced October 25. Adera AB comprises the companies, Adera IT, Adera Integrerad Kommunikation and Adera Nucleus. Adera IT is a holding company for Astrakan and OOPix. Due to mounting losses attributed to a decline in market demand, Adera AB in February announced a 35 million Swedish kronor restructuring plan required to return the company into profitability. Company reorganization involved the closing of its units including offices in Munich, Amsterdam, Copenhagen, Belgium, (Stureplan) Stokholm, asset sales in Germany and workforce downsizing. Shares in the company are listed on the O-list of the Stockholm Exchange. ICON MEDIALAB: To Post Third-Quarter Results Next Week ------------------------------------------------------ Interactive digital communication services provider IconMedialab said yesterday it would present its third quarter financial results on October 24. The company earlier said it plan to reduce 70 of its staff members in Sweden due to the current difficult market situation. IconMedialab suffered negative media attention following two profit warnings and an operating loss of 2.6 billion Swedish krona in 2000. ===================== S W I T Z E R L A N D ===================== SVENSK VODKA: Administrator Seeks Vodka Buyer --------------------------------------------- The administrator of Svensk Vodka is looking for a buyer for the assets of the Swedish spirits manufacturer, Dagens Industri/FT Information reported Tuesday. Rune Brannstrom said that a number of investors are interested in acquiring the company's assets. He expects to receive bids within two weeks. Svensk Vodka will continue production, partly in order to maintain the value of the brand. The company's board of directors blamed the problems on the former managing director of Svensk Vodka, who was dismissed earlier this year. SWISSAIR GROUP: Government Ready to Invest in New Airline --------------------------------------------------------- The government, according to the recent report from Swissinfo, is prepared to invest in a re-launched national airline, but has repeated it will not back the venture alone. Transport minister Moritz Leuenberger did not say how much the government was willing to spend. Crossair CEO Andre Dose earlier revealed that building a new Swiss airline out of Crossair and Swissair Group AG would cost around 4 billion Swiss francs. =========================== U N I T E D K I N G D O M =========================== EGG PLC: Cuts Third-Quarter Pretax Losses ----------------------------------------- Egg PLC, UK's largest standalone Internet bank, remains on track to breakeven in the fourth quarter after reporting a reduction in third quarter pretax losses to 18.4 million sterling, from 25.5 million in the second quarter, according to the recent AFX News report. Chief executive Paul Gratton said that the company's margins continued to improve as operating income in the third quarter grew by 28%. Egg further reported its operating income was up 108% to 127.0 million sterling, while the 9-month charge for doubtful debts has increased to 52.5 million sterling from 24.8 million. EQUITABLE LIFE: Government Calls for Deeper Equitable Probe ----------------------------------------------------------- The UK government is leading calls for a far deeper investigation into the failure of Equitable Life after the Financial Services Authority internal audit director Ronnie Baird uncovered deficiencies in the regulation of the insurer, according to the AFX News' report. The government and Equitable are urging Lord Penros to use the Baird Report in the investigation of Equitable's collapse. 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. The society faces liabilities of around 1.5 billion sterling. EQUITABLE LIFE: Welcomes Baird Report ------------------------------------- Equitable Life said Wednesday it has welcomed the publication of a report by Financial Services Authority director Ronnie Baird into the regulation of the company by the FSA. In a statement, Equitable said that the information from the Baird Report may "well assist the society's own investigation into whether legal action can be taken against previous directors, advisors or regulators in order to gain compensation for policyholders." Equitable is, however, concerned that the Baird report only examines the regulatory management of the society over the last three years. Equitable believes that there is a good reason to question the regulation of the society over a longer period since the problem has developed over time. "It is good that the Baird Report has been published. We will study the contents of the Baird Report keenly for information that may help our lawyers Herbert Smith, who are reviewing whether we can sue those associated with the problems of the society in the past, including regulators," chief executive Charles Thomson said. JAZZTEL PLC: Execs Sell Jazztel Stake ------------------------------------- Two of Jazztel's senior executives have sold their stakes in the telecoms company. According to Reuters' Tuesday report, chief executive Antonio Carro sold 750,000 shares, or 13% of the 3.6 million shares, while finance director Miguel Salis sold his 2 million shares. The figures however may have been recently reduced to total 1.4 million shares sold, or 2.3% of the company, the news agency added. Jazztel founder and chairman Martin Varsavsky, has previously denied any plan to sell his 19% stake in the firm. Jazztel p.l.c. is a holding company headquartered in London, UK. It's wholly-owned subsidiary, Jazztel Telecom SA, is headquartered in Madrid, Spain. MARCONI PLC: EU Approves Sale of Medical Unit --------------------------------------------- The European Commission cleared the sale of Marconi's Medical Systems business to Dutch electronics group Philips Electronics, according to the Financial Times' report. The price tag for the business is 780 million pounds. Debt-laden Marconi hopes to close the transaction by the end of this year. Marconi agreed the sale in July as part of a move to reduce net debt to between 2.7 billion and 3.2 billion pounds by next year, through the disposal of non-core assets. MARKS & SPENCER: To Cease Belgian Operations in December -------------------------------------------------------- Marks & Spencer Belgium will cease operations on December 22 after it failed to find takeover candidates for the Belgian outlets of the UK retail chain, the Wednesday edition of De Standaard/FT Information said. The company's 236 permanent staff members will be paid one extra month per year of service in addition to the legal redundancy pay-off and will also be offered outplacement services. At the end of this year, the company will have a negative balance of 800 million Belgian francs, which will have to be paid by the parent company. M & S Belgium incurred a loss of 300 million Belgian francs last year. PHOTOBITION GROUP: To Restructure 103.5MM-Pound Debt ---------------------------------------------------- Graphics company Photobition will soon announce a restructuring of its 103.5 million pound net debt involving a debt-for-equity swap, the Financial Times reported Wednesday. Photobition is also expected to tell investors early next week that it has reached an agreement with its banks and US loan note holders to convert up to 50 million pounds of debt into redeemable cumulative preference shares. Photobition was hit by the sharp downturn in the US advertising market, prompting them to issue on Tuesday its third profit warning this 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 Maria 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 240/629-3300. * * * End of Transmission * * *