/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/011127.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 Tuesday, November 27, 2001, Vol. 2, No. 231 Headlines * B E L G I U M * AGFA-GEVAERT: Slides Deep Into the Red CUSTOM SILICON: Reaches Collective Bargaining Agreement LERNOUT & HAUSPIE: Committee Files Motion to Consummate Concordat * F R A N C E * LVMH: Acquires 25.5% Stake in Fendi * G E R M A N Y * BROKAT AG: Will File for Insolvency LTU GROUP: Lufthansa Files Complaint With EU Over Rescue Package * I R E L A N D * EIRCOM PLC: Removed From ISEQ Indices FRUIT OF THE LOOM: Buffett Bid Hits Legal Snag * I T A L Y * ALITALIA SPA: Shares Surge on News of Business Plan * N E T H E R L A N D S * KPN NV: Chief Receives 1.6MM Options KPN NV: Will Cut 1,300 Jobs Until 2004 PHARMING GROUP: Continuation of Activities in Advanced Stage * N O R W A Y * STEPSTONE ASA: Closes Irish Business * S W E D E N * ADERA AB: Sells Advertising Agency in Varnamo * S W I T Z E R L A N D * SWISSAIR GROUP: Crossair Plane Crash Blows Swiss Airline Anew SWISSAIR GROUP: Cuts Wages After Union Approval SWISSAIR GROUP: Faces 1.94BB-Euro Suit From Belgium SWISSAIR GROUP: Foreign Employees Get Layoff Pay SWISSAIR GROUP: Revenue Rebounds to Over 50% SWISSAIR GROUP: Swissport Sale Nears Completion * U N I T E D K I N G D O M * ATLANTIC TELECOM: DTI Saves Customers BRITISH TELECOM: MmO2 Ready to Exit Germany and Netherlands GAMEPLAY PLC: Dives on Takeover Failure ICELAND GROUP: To Present Rescue Plan This Week LASTMINUTE.COM: Forecasts Profit in Six Months MARCONI PLC: S&P Cuts Unsecured Bond Ratings to B+ MARKS & SPENCER: Sells Brooks Bros for $225MM MG ROVER: May Cut Assembly of New Car NTL INCORPORATED: France Telecom Rules Out Cash RAILTRACK GROUP: American Bank Values Assets at 3.5BB Pounds RAILTRACK GROUP: Employees' Exodus SAVE GROUP: Petchey Moves in to Save Collapsed Gas Retailer ============= B E L G I U M ============= AGFA-GEVAERT: Slides Deep Into the Red -------------------------------------- German-Belgian photographic technology group Agfa-Gevaert is continuing to suffer its recent run of poor results following two profit warnings in September and October. In the first nine months of the year, turnover slipped back by 6.1% to 3.68 billion euros, while group EBIT (operating result before restructuring and non-recurring results) dropped further by 47% to 208 million euros. Furthermore, pre-tax profit was down 86.5% to 26 million euros, while the net loss amounted to 7 million euros against 119 million euros profit for last year. Agfa's results were affected substantially by the posting of a 14 million euro write-down as a result of Xeikon, in which Agfa has a 25% stake, filing for legal protection. The September events in the United States have further accentuated this trend. CUSTOM SILICON: Reaches Collective Bargaining Agreement ------------------------------------------------------- After difficult negotiations with the unions, the management of Custom Silicon Configuration Services said it has reached a collective bargaining agreement at company level. CS2 in a press statement said that the recent development is an important step in the finalization process for obtaining the $25 million financing. The financing transaction is dependent on the reduction of overall personnel cost by 10%. This important cost saving will allow the company to be more competitive in the short term. The result of the collective bargaining agreement has been communicated to the potential financing company. Although the conditions put forward by the financing party are not entirely fulfilled, the management believes that the finalization process is evolving positively. CS2 is awaiting the definitive decision of the potential financing company. Zaventem-based CS2, which specializes in advanced packaging and test services for semiconductors, recently posted a net loss for the third quarter of 11.242 million euros, or 0.70 euro per share. Cumulative net losses as per September 30 amount to 25.840 million euros, or 1.61 euro per share (see http://www.bankrupt.com/misc/cs2.pdffor the company's interim result). For further information, contact Yves De Poorter, Chief Executive Officer, Custom Silicon Configuration Services N.V. at telephone 32 2 713 05 62 / 32 2 720 00 00 or email YDP@cs2.be LERNOUT & HAUSPIE: Committee Files Motion to Consummate Concordat ----------------------------------------------------------------- The Official Committee of Unsecured Creditors ("Committee") of Lernout & Hauspie Speech Products N.V. and L&H Holdings USA, Inc. have filed a motion in court requesting an order prohibiting L&H from consummating a plan of reorganization in L&H's Belgium concordat proceeding prior to consummation of a plan of reorganization in its Chapter 11 case. The motion was filed before Judge Wizmur by Francis A. Monaco and Joseph J. Bodnar of the Wilmington firm of Walsh, Monzack & Monaco, P.A., acting as local counsel, and led by Daniel H. Golden and Ira S. Dizengoff of the New York firm of Akin, Gump, Strauss, Hauer & Feld, L.L.P., representing the Committee. The motion asserts that consummation of the Concordat Plan prior to reorganization in L&H's Chapter 11 case would violate the clear language and intent of the Bankruptcy Code. The Committee also argues that consummation of the Concordat Plan would violate the Federal Rules of Bankruptcy Procedure, which allow distributions to creditors only after the allowance of claims and the confirmation of a Chapter 11 Plan. In its motion, the L&H Committee assured Judge Wizmur it is not seeking to preclude presentation of and voting on the Concordat Plan. The L&H Committee simply requests that the effectiveness of the Concordat Plan, if approved by the Ieper Court, be forestalled until a chapter 11 plan of reorganization is effectuated. In this way, all creditors will be treated fairly, rather than a piecemeal disposition of L&H's assets ----- Lernout & Hauspie Bankruptcy News, Issue No. 15; Bankruptcy Creditors' Service, Inc., 609-392-0900. =========== F R A N C E =========== LVMH: Acquires 25.5% Stake in Fendi ----------------------------------- The world's largest luxury goods group LVMH Moet Hennessy Louis Vuitton, known for the Louis Vuitton, Christian Dior and Givenchy brands, bought Prada's 25.5% stake in Fendi for 295 million euros ($260 million) payable over five years, the Financial Times reported. This move will raise LVMH's stake to 51% of Fendi while 49% remains to be owned by the five Fendi sisters, at 1.16 billion euro. LVMH said it would pay Prada 40 million euros now, 180 million euros in 2002 and 25 million euros in 2003, 2004 and 2005, making a total payment of 295 million euros, with a present value of 275 million euros. In October, LVMH lowered its profit projections for the third time this year after the September attacks on the U.S. pushed third-quarter sales below market forecasts. ============= G E R M A N Y ============= BROKAT AG: Will File for Insolvency ----------------------------------- Troubled e-commerce software maker Brokat said Friday it would file for insolvency after failing to find a way of reducing its debts, the Agence France-Presse reported. Brokat added that negotiations with bondholders on the restructuring of debt had failed. For now, the group's operations would be transferred to its unit Brokat eFinance Technologies GmbH und Co KG, which was spun off earlier this month. In that way, 150 jobs would be safeguarded and relations with customers would also be upheld. Insolvency has been looming over Brokat this year after it announced its net loss widened to 825 million euros in the second quarter of this year, nearly 40 times greater than the net loss of 20.7 million euros posted in the second quarter of 2000. LTU GROUP: Lufthansa Files Complaint With EU Over Rescue Package ---------------------------------------------------------------- German national carrier Deutsche Lufthansa AG has formally filed a complaint with the European Commission protesting against the state credit guarantees planned for German charter airline LTU Group by the state of North-Rhine Westphalia, AFX News reported. "We've said in our letter that the aid by the federal state of North-Rhine Westphalia violates the EU regulations on state aid," the spokesman said. LTU found itself in difficulties following the collapse of its major shareholder, Swissair Group. ============= I R E L A N D ============= EIRCOM PLC: Removed From ISEQ Indices ------------------------------------- Following the cash offer for Eircom Plc (IE0007231479) by Valentia Plc being declared wholly unconditional, the Irish Stock Exchange removed the former state-owned telecom monopoly from the ISEQ indices yesterday. The indices affected are: ISIN Index Name IE0001477250 ISEQ-Overall (Price) IE0000506851 ISEQ-Overall (Total Return) IE0000506075 ISEQ-General (Price) IE0000512685 ISEQ-General (Total Return) FRUIT OF THE LOOM: Buffett Bid Hits Legal Snag ---------------------------------------------- The restructuring plan of clothing company Fruit of the Loom is now in doubt as US Bankruptcy Court Judge Peter Walsh rejected the company's request for an approval of procedures, the Irish Independent reports. Fruit of the Loom is in the middle of a restructuring program that will result in the consolidation of the Buncrana operations in Ballymacarry in northwestern Ireland and the closure of the old Shore Road factory and 65 redundancies over the next 12 months. The move came after the lawyer of investment company Berkshire Hathaway said he could not accept less than $30 million in fees for Berkshire if the $835 million takeover bid fails. Fruit of the Loom and Berkshire officials said that if the procedures were not approved by the end of this month, the bid might be pulled. ========= I T A L Y ========= ALITALIA SPA: Shares Surge on News of Business Plan --------------------------------------------------- Alitalia SpA shares rose 6 cents to 1.14 euros in Friday's trading after the airline said it plans to cut 3,400 jobs, sell three units and focus on European flights in an attempt to become profitable by 2003, Bloomberg reported. "Every time Alitalia talks of a new plan, shares pick up," Deutsche Bank analyst Jonathan Wober said. Since the September attacks in the US, Alitalia has cut long-haul flights from Rome and Milan by 14%, where 20% of its seating capacity on intercontinental routes from Milan and 34% from Rome were reduced. ===================== N E T H E R L A N D S ===================== KPN NV: Chief Receives 1.6MM Options ------------------------------------ KPN spokesman Bram Oudshoorn confirmed that the company's chief executive officer, Ad Scheepbouwer, received some 1.6 million KPN options when he took up his post on November 1. The options can only be exercised after three years at a price of 3.99 euro, the spokesman noted. KPN NV: Will Cut 1,300 Jobs Until 2004 -------------------------------------- Debt-laden Dutch telecoms company Royal KPN NV will cut 1,300 jobs in the period to 2004, on top of earlier announcement that 4,800 employees will be laid of in the next two years, KPN spokesman Bram Oudshoorn said. He noted that the 1,300 would disappear through natural wastage. Earlier, KPN has agreed with its unions that compulsory redundancies will be reduced by salary cuts. The unions have further agreed to freeze wages for the period 2002 and 2003 in exchange for a stock option program open to all personnel. The redundancies will guarantee that KPN can meet its interest and payment obligations until 2004 and beyond. PHARMING GROUP: Continuation of Activities in Advanced Stage ------------------------------------------------------------ Dutch biotechnology company Pharming Group N.V., currently under temporary legal moratorium, says that plans concerning the continuation of its activities are in an advanced stage. The company will continue its activities in a downsized form. It implies substantially fewer employees and a limited number of development programs and activities. In the meantime, under management of Fortis Investment Banking, a number of potential investors were identified. Pharming's trustee is confident that the company's business plan together with Fortis' financial expertise will provide a basis for swift refinancing. As a result, the company will be able to continue in the absence of legal moratorium starting in the first half of 2002. For more information, contact Rein Strijker at telephone +31 (0)71 5247 406 =========== N O R W A Y =========== STEPSTONE ASA: Closes Irish Business ------------------------------------ Oslo-based online recruitment agency Stepstone ASA has closed its business in Ireland, with losses in excess of IR10 million after less than a year's trading. According to a report from Business and Finance, Stepstone is in talks with local and international parties who are interested in buying the Irish business. The company globally is now shedding 350 people, or 60% of its 850 staff members, and is closing more than half its offices in Europe, including sites in France, Italy, India, Spain, Switzerland and Portugal. Earlier this month, Stepstone liquidated its UK operation as part of a desperate cost-saving strategy. The company also hopes to raise 35 million euros through a rescue rights and share issue to rebuild the business. It was revealed that the company would have run out of cash by Christmas without new funding. =========== S W E D E N =========== ADERA AB: Sells Advertising Agency in Varnamo --------------------------------------------- Stockholm-based IT consultancy firm Adera AB said it has sold its advertising agency in Varnamo to the previous owner as part of the ongoing rationalization of its business activities. The sale was by means of an asset deal via a newly formed company. Adera added that the sale, which will result in ten fewer employees in the group, would have a marginal impact on them. Earlier, it reported that its operating result before goodwill amortization and items affecting comparability (EBITA) for the third quarter was a loss of 28.1 million Swedish krona, and a loss of 95 million Swedish krona for the nine-month period. It also announced the closure of its web office in Stockholm as part of the on-going restructuring program, affecting approximately 20 persons. For more information, contact CEO Rolf Jansson at mobile +46-705- 72 72 02 ===================== S W I T Z E R L A N D ===================== SWISSAIR GROUP: Crossair Plane Crash Blows Swiss Airline Anew ------------------------------------------------------------- Switzerland's efforts to launch a new national airline for bankrupt Swissair Group suffers again after another plane operated by Crossair crashed on Saturday, the Financial Times reported. On Saturday, 24 of the 33 passengers and crew died when a Crossair Avro RJ100 Jumbolino aircraft from Berlin crashed outside Zurich. It was the second fatal accident in two years to hit Crossair, Europe's largest regional airline. In January last year, a Crossair Saab 340 crashed killing 10 people. The latest accident will heighten concerns about its managerial and technical ability to take over the operation of roughly two thirds of Swissair's long and short-haul operations, FT added. SWISSAIR GROUP: Cuts Wages After Union Approval ----------------------------------------------- Swissair Group AG has reduced its employees' wages after staff unions approved the move, which come under the state-backed 3.8 billion Swiss francs rescue plan for the Swiss aviation industry. The wage reductions will affect about 3,300 people. According to Swissair spokesman Jean-Claude Donzel, pilots' pay was cut by 25%, while other flight crew will have their pay reduced by 9.4% with immediate effect. The wages of young pilots who are still paying back the cost of flight training will only be reduced by 15%. Donzel added that further cuts might be made if Swissair revenue does not reach the forecast 750 million Swiss francs by the end of the winter. SWISSAIR GROUP: Faces 1.94BB-Euro Suit From Belgium --------------------------------------------------- The Belgian government and bankrupt national airline Sabena have launched proceedings in Belgian courts to sue Swiss aviation group Swissair for 1.94 billion euros. According to a report from Agence France-Presse, Swissair holding company SAirGroup and SAirLines have committed a number of contractual and non-contractual errors. The case centers on an agreement by Swissair to cover the financial needs of its Belgian subsidiary Sabena, and to order nine new aircraft. "(The) Swiss let us believe until the last moment that they would underwrite the shares and the certificates of participation in Sabena as agreed during the shareholders meeting on October 3," Public Works Minister Rik Daems said. The Belgian state is asking for a 355 million euro provisionary payment of a 529-million-euro first claim, while Sabena is asking for 529 million euros and for 161.5 million euros, which it claims Swissair owes for cancelling an order for new aircraft. The Belgian state and other shareholders have launched another case seeking 370 million euros. SWISSAIR GROUP: Foreign Employees Get Layoff Pay ------------------------------------------------ Swissair Group is ready to finance an 80 million Swiss francs social plan for 800 staff laid off in the U.S., Japan, France and India, AFX News reports. The Swiss aviation group refuses to do so in Switzerland. Swissair's move is possible because there are no labor laws regulating the rights of redundant workers in Switzerland, the report added. If Swissair does not compensate the laid-off staff in these four countries, its planes will be confiscated. Staff members may even be arrested. The group also fears that its successor, Crossair AG, will lose flight rights to certain destinations. SWISSAIR GROUP: Revenue Rebounds to Over 50% -------------------------------------------- Flag carrier Swissair has recovered in its customer confidence as its seat/load factor exceeded the 50% mark last week for the first time since its bankruptcy and temporary grounding, compared with only 35% at the beginning of November 2001. According to Neue Zrcher Zeitung's report, the development reflected a recovery in customer confidence in Swissair. Flight reservations are once again increasing due to a cheap fare campaign launched early this month and valid until March next year. SWISSAIR GROUP: Swissport Sale Nears Completion ----------------------------------------------- Swissair Group's sale of its subsidiary, ground handler Swissport, to UK-based private equity group Candover Investments PLC is ready to be signed, AFX News reports. "Everything is on track, but for the definitive closing we still need the signatures of the Swissair bankruptcy administrator Karl Wuethrich and the Candover board," Swissport spokesman Stefan Beerli said. "Candover has promised us they want to expand the business and that we should continue to play a leading role globally in baggage handling," Beerli added. Financial details were not disclosed. Swissport is having liquidity problems because Swissair has not paid its bills. =========================== U N I T E D K I N G D O M =========================== ATLANTIC TELECOM: DTI Saves Customers ------------------------------------- A team of MPs has saved thousands of Atlantic Telecom customers from disconnection with a 500,000-pound emergency cash injection for the collapsed phone group, the Times newspaper reports. Douglas Alexander, Labour MP for Paisley South and E-commerce and Competitiveness Minister at the Department of Trade and Industry, and Wendy Alexander, Labour MSP for Paisley North and Scottish Executive Minister for Enterprise and Lifelong Learning, put together the rescue package at the weekend. The 500,000-pound package, funded equally by both departments, will allow Atlantic customers in Aberdeen, Edinburgh, Glasgow, Paisley and East Kilbride, Manchester and Oldham access to incoming calls and emergency services until January 2. About 12,000 of its 21,000 customers were unable to make outgoing calls after company administrators PricewaterhouseCoopers failed to sell the entire business as planned. BRITISH TELECOM: MmO2 Ready to Exit Germany and Netherlands ----------------------------------------------------------- Chief executive Peter Erskine said mm02 plc, once the mobile unit of the BT group, is ready to pull out operations in Germany and Holland in order to compensate for huge losses, AFX News reports. The company is reviewing its German and Dutch businesses on a quarterly basis, where Erskine was quoted as saying that if mm02 will not be able to meet its target, the company will not "hesitate to sell or take other remedial action". mmO2 plc, which is composed of BT Cellnet, Digifone, Telfort Mobiel, Viag Interkom, Manx Telecom and Genie, is expected to lose 400 million pounds the financial year to March 2002, Goldman Sachs said. GAMEPLAY PLC: Dives on Takeover Failure --------------------------------------- Shares in Internet games retailer Gameplay have crashed 26% or 0.30p to 0.85p after the breakdown of takeover talks with a possible rescuer failed Thursday, the Times newspaper reported. The firm had been in discussions for several months, but now says talks have been terminated. Former AIM Newcomer of Year, Gameplay now employs chief executive Mark Bernstein and chief financial officer Ted Bechman. At current prices, the firm is valued at 76,000 pounds against almost 1 billion pounds last year. Turnover was 79,000 pounds, while pre-tax profits nosedived from 2 million pounds to losses of 197.6 million pounds. ICELAND GROUP: To Present Rescue Plan This Week ----------------------------------------------- Investors expect food retailer and wholesaler Iceland Group to give details of its rescue plan for the business when it issues interim results on Thursday, the Financial Times reports. Analysts think a rights issue or other form of equity financing will be needed, as Iceland holds has than 500 million pounds of debt on its balance sheet. Last week, Dresdner Kleinwort Wasserstein said it thought the company needed to raise more than 200 million pounds of new equity. An analyst at another firm said that a rights issue is a big possibility. Iceland is expected to report pre-tax profit of 15 million pounds. The Wales-based firm ran into trouble in the second half of 2000 when a gamble to switch to organic foods backfired. Iceland's shares plunged around 50% in February after the company issued three profit warnings in quick succession. LASTMINUTE.COM: Forecasts Profit in Six Months ---------------------------------------------- Online retailer Lastminute.com finally hopes to deliver operating profitability in Britain and France within six months, the Guardian newspaper reports. The group's global operations, however, will remain in the red. It is not forecast to break even at an operating level until early 2003 because of development costs in a host of newer territories, including Germany, Sweden, Spain, the Netherlands and Italy. According to chief operating officer Martha Lane Fox, Lastminute's cash burn was reduced by 60% over the year and by 20% in the three months to October. Furthermore, Lastminute sold 124 million pounds worth of goods and services in the year to November, compared with 34 million pounds in the previous year. The shares rose 4.25p to close at 36.75p. MARCONI PLC: S&P Cuts Unsecured Bond Ratings to B+ -------------------------------------------------- Credit rating agency Standard & Poor's lowered to B+ from BB its debt rating on Marconi Corp plc, the guaranteed subsidiary of Marconi, for its issued senior unsecured bonds to due 2005, 2010, and 2030. The total amount of bonds outstanding is 2.2 billion pounds, S&P disclosed. The cut in credit rating comes after Marconi released its six months to September 30 results. S&P said that this move should not be seen to weaken Marconi's creditworthiness, however, priority debt and liabilities ranking higher than the senior unsecured bonds now account for over 30% of the company's adjusted consolidated assets. This level of priority obligations, under S&P's subordination criteria, requires a two-notch differential between the corporate credit rating and unsecured debt ratings. Marconi's BB long-term and B short-term corporate credit ratings will be maintained, so as its negative outlook. MARKS & SPENCER: Sells Brooks Bros for $225MM --------------------------------------------- U.K.'s largest clothing retailer Marks & Spencer PLC will sell Brooks Brothers Inc to US-based specialty retailer Retail Brand Alliance Inc., AFX News reports. Price tag for the US subsidiary is $225 million cash. The transaction is subject only to regulatory approvals and is expected to close by the end of the financial year. The sale is a further step in the restructuring program of Marks & Spencer to sell or close all non-strategic or loss-making businesses. At the half year to September 2001, Brooks Brothers had an operating loss of 2.6 million sterling. MG ROVER: May Cut Assembly of New Car ------------------------------------- MG Rover Group Limited may scale down almost one third of its planned production of the medium-sized car it had scheduled for launch in 2004, the Financial Times reported. The carmaker is considering whether to reduce to about 120,000 cars a year, from the original volume of 160,000 to 165,000, because of the company's failure to find raw materials for the vehicles at a lower cost. An upsurge in sales during the past three months sufficiently reassured suppliers to resume detailed negotiations to provide components for MG Rover's Rover 45 and MG ZS models replacement. MG Rover Chief Howe MG Rover CEO Kevin Howe is expected to finalize how the project will be approached by the end of December or early next year. Despite supplier involvement delays, the manufacturer hopes to launch a modified and larger version of its Rover 75's platform that can be sold for about 300 million pounds. NTL INCORPORATED: France Telecom Rules Out Cash ----------------------------------------------- France Telecom does not intend to invest more cash in NTL, or into the heavily indebted cable-television group's broadcast transmission business, the Sunday Times reported. France Telecom chief financial officer Jean-Louis Vinciguerra said, "It is not our intention to do a big acquisition in cash for the next two years. We have a high level of debt. We do not intend to increase it." France Telecom is NTL's biggest shareholder. NTL hopes to raise more than 1.5 billion pounds from the sale of its broadcast division that transmits programs for ITV and Channels 4 and 5 to reduce its 12-billion-pound debt mountain. RAILTRACK GROUP: American Bank Values Assets at 3.5BB Pounds ------------------------------------------------------------ Railtrack executives revealed over the weekend that the rail company is sitting on a property portfolio of between 3.4 billion and 3.7 billion pounds. The report was carried out in May by American investment bank Schroder Salomon Smith Barney, now working for the government. According to a report from The Sunday Times, the findings were issued to counter the assertion by trade and industry secretary Stephen Byers that Railtrack is a financial black hole. The valuation will also be used by disgruntled shareholders who are looking to the government for compensation following its decision to place the rail network into administration. RAILTRACK GROUP: Employees' Exodus ---------------------------------- Railtrack is leaning towards another disaster as engineers and key staff members leave the railway company in groups. According to The Times' report yesterday, the departures are causing serious delays to important projects including the upgrade of the West Coast Main Line. "There are a number of engineers who want to come and work for us because they feel so disillusioned there," a source, which declined to be named, said. A Railtrack spokesman confirmed that the group was short of 200 engineers. The government's decision to put Railtrack into administration have demoralized key staff members, who have lost incentive to stay with the group since their 12 million pound share options have faded after the collapse. Last month, Tony Fletcher, project director on the West Coast Main Line upgrade, resigned from the group and moved to the rail division of consulting group WS Atkins. SAVE GROUP: Petchey Moves in to Save Collapsed Gas Retailer ----------------------------------------------------------- Property entrepreneur Jack Petchey bought Save Group, UK's largest independent gas retailer that fell into administration in March, the Financial Times reported. Petchey, who formerly owned about 30% of Save, allied with Yorkshire-based Bayfords, an independent petrol distribution operator, to buy the company for 47 million pounds (US$66.5 million). Petchey has provided key financing to the reported buyout while Bayfords will capitalize on its supply and distribution expertise. Save's former chief executive James Frost, organized the team-up saying, "I wanted to leave myself free to do what I could for the company and staff without having my hands tied by the administrators." Frost assured that the current management team would remain in place under the new owners, as will most of its 4,000 employees at 400 retail sites. Petchey moved in on Save after a bid from part of Bermuda-based Sutton Oil Anglo Petroleum for 55 million pounds rendered unsuccessful. ********** 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 * * *