/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020108.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, January 08, 2002, Vol. 3, No. 5 Headlines * A U S T R I A * NIEDERMEYER AUGENOPTIK: Hartlauer Eyes Niedermeyer Augenoptik * B E L G I U M * SABENA SA: DAT Investors Set Deadline for SIC to Clarify Debt * G E R M A N Y * COMDIRECT BANK: Finds Buyers for French, Italian Units CONSORS AG: HVB Group Considers Consors Takeover DAIMLERCHRYSLER: Chrysler Strives to Break Even in 2002 M+S ELEKTRONIK: Awaits Cash From Key Investor * N E T H E R L A N D S * KPN NV: SNT Cuts Jobs at KPN Operations * P O L A N D * ELEKTRIM SA: Bondholders File for Bankruptcy ELEKTRIM SA: Vivendi May Sell Elektrim Stake NETIA HOLDINGS: Company Profile * R U S S I A * TV6: Berezovsky Will Sell Stake for $200MM * S W I T Z E R L A N D * 4M TECHNOLOGIES: In Recapitalization Talks With Investors * U N I T E D K I N G D O M * BRITISH TELECOM: Denies Plan to Sell Phone Network CAMMELL LAIRD: Set for Re-launch This Summer CEDAR ENTERPRISE: Alchemy Will Rescue Cedar From Insolvency COOKSON GROUP: Rival Firms Vie for Metals Unit CORUS GROUP: Capital Interested in More Corus Shares CORUS GROUP: Shares Rise as Steel Strengthens in U.S. ENRON CORPORATION: Wessex Water Execs Deliberate on Buyout EQUITABLE LIFE: Directors Urge Support for Rescue Plan POLESTAR CORP.: Finds Ways to Cut Cost Base RAILTRACK GROUP: Byers Gets New Deadline From Investors WILLIAM BAIRD: Fails to Profit During Christmas Period ============= A U S T R I A ============= NIEDERMEYER AUGENOPTIK: Hartlauer Eyes Niedermeyer Augenoptik ------------------------------------------------------------- Niedermeyer Augenoptik, the Austrian optics chain that recently filed for insolvency, is the focus of much attention from market leader Hartlauer, Die Presse and FT Information reported Friday. Hartlauer, run by Styrian entrepreneur Robert Hartlauer, confirmed his buyout plans and intends to discuss with the administrator on a possible acquisition. Niedermeyer Augenoptik filed for insolvency on January 2, but this does not affect the company, wholly-owned by max.mobil. Augenoptik's debts stand at around 2.65 million euros. ============= B E L G I U M ============= SABENA SA: DAT Investors Set Deadline for SIC to Clarify Debt ------------------------------------------------------------- The investors of Delta Air Transport (DAT), Sabena's former short-haul unit around which the new airline would be based, has set a January 15 deadline for Sabena Interservice Center (SIC) to clarify its debt position. According to a Reuters report, the investors will not finance the project unless SIC, Sabena's former financial arm and a key investor, resolves its shaky debt situation and leasing terms for the planes. A group of Belgian investors have been raising some 190 million euros to set up a new airline to buy DAT. Last week, a Belgian court removed bankruptcy protection from SIC in a ruling that made it vulnerable to its creditors. SIC immediately appealed against the verdict. The demise of SIC could spell the end for DAT, which owes SIC some 110 million euros. If SIC is liquidated, its creditors could call in those debts. A Brussels appeals court would start hearings on January 17. ============= G E R M A N Y ============= COMDIRECT BANK: Finds Buyers for French, Italian Units ------------------------------------------------------ Neuer Markt-listed online brokerage Comdirect has found three parties interested in acquiring its operations in France, and two parties for its operations in Italy. The buyers' names were not disclosed. Handelsblatt reported that Comdirect had decided to focus on one negotiation partner in each country, and that it would be looking to complete the sales as quickly as possible. Comdirect, whose majority shareholder is Commerzbank AG, first announced its plans to sell the Italian and French units in mid- November. It explained that the units would not be able to reach profitability fast enough to meet the Comdirect group targets. Comdirect is located at Pascalkehre 15, D-25449 Quickborn, Germany. CONSORS AG: HVB Group Considers Consors Takeover ------------------------------------------------ HVB Group chairman Albrecht Schmidt is interested in taking over online brokerage firm Consors Discount Broker AG, Handelsblatt reported Sunday. Consors has been up for sale since the near-collapse of its parent company, SchmidtBank GmbH, which was rescued from bankruptcy by a consortium of Germany's largest banks. The online broker, Handelsblatt said, is valued at around 450 million euros, based on its current Neuer Markt capitalization. DAIMLERCHRYSLER: Chrysler Strives to Break Even in 2002 ------------------------------------------------------- DaimlerChrysler's ailing Chrysler Group in the U.S. is sticking to its target of breaking even this year but will post a loss for 2001. According to a Reuters report, Chrysler President Dieter Zetsche said on Sunday that they would strive to break even in 2002 as sales are expected to decline to between 15 and 16 million vehicles in the U.S., and levels of expensive customer incentives continues to be high. Analysts also expect sales to fall this year. They disagree about the size of the decline, with some expecting a steep drop to 15 million vehicles. Earlier reports said that the Chrysler arm would drain the company of between 10.1 billion and 10.8 billion Deutsche marks in 2001. Through the first three quarters of 2001, Chrysler posted an operating loss of $1.7 billion. M+S ELEKTRONIK: Awaits Cash From Key Investor --------------------------------------------- Werner Schreiber, insolvency trustee of IT services specialist M+S Elektronik AG, does not expect M+S's creditor banks to provide urgently needed capital. Consequently, they are banking on "a major investor" instead, reports Borsen-Zeitung and FT Information. Management at M+S applied for insolvency proceedings shortly before Christmas after negotiations with creditor banks regarding new loans had failed. Two subsidiaries of the group last week, Syscotec Computer GmbH and M+S Service Verwaltungs-und Beteiligungs GmbH, also filed for insolvency. ===================== N E T H E R L A N D S ===================== KPN NV: SNT Cuts Jobs at KPN Operations --------------------------------------- Telecom service provider SNT Group, an independent subsidiary of the troubled Dutch telecommunications company Royal KPN NV, will axe more than 260 jobs at the divisions it recently acquired from KPN. SNT said that the layoffs were due to the fall in activities of main client KPN and the related employment situation. The former KPN call centers in particular are faced with a much smaller workload. Last summer, KPN transferred all its telephone services to SNT for 180 million euros. KPN, which owns a 51% stake in SNT, transferred 5,000 staff to SNT at the time. According to the agreement, SNT will abide by the redundancy plan agreed with KPN unions. The number of mandatory redundancies is not known, but staff over the age of 55 can take voluntary early retirement. For more information, please contact Anne de Graaf during office hours on telephone number +31 79 3686900 or fax number +31 79 368 51 94 and outside office hours on +31 6 22395589; or via email at adegraaf@snt.com. The company's address is Koraalrood 70, NL-2718 SC Zoetermeer; Postbus 182, NL-2700 AD Zoetermeer. =========== P O L A N D =========== ELEKTRIM SA: Bondholders File for Bankruptcy -------------------------------------------- Elektrim bondholders have filed a bankruptcy petition against the financially stretched Polish conglomerate. According to a Financial Times report, creditors holding three- quarters of Elektrim's convertible bonds took action on Friday after declaring the company's request for court-brokered composition proceedings entirely unacceptable. As unsecured creditors, the bondholders would wait in queue behind others, said Weil, Gotshal & Manges attorney Roman Rewald. The bondholders are represented by law firm Bingham Dana. Elektrim in December applied for the proceedings after defaulting on its 479-million-euro worth of bonds. Its heavily sold shares dropped 9% on the news on Friday, closing at 8.60 zlotys. ELEKTRIM SA: Vivendi May Sell Elektrim Stake -------------------------------------------- French communications company Vivendi Universal, which owns a 10.04% stake in Elektrim Telekomunikacja, said it might resell its stake in time, La Tribune and FT Information reports. The French group took control of Poland's leading mobile telephony company Polska Telefonia Cyfrowa Sp. z o.o./Era GSM in September when it acquired 2% of Elektrim Telekomunikacja. The decision comes after a group of creditors from the Polish company filed for bankruptcy at a Warsaw tribunal on Friday. NETIA HOLDINGS: Company Profile ------------------------------- Name: Netia Holdings S.A. Address: UL. Poleczki 13 Warsaw 02-822 Poland Phone: (212) 889-4350 Fax: (212) 683-2614 Website http://www.netia.pl/ SIC: Fixed-line telecommunications network provider Employees: 1,639 (as of 3Q 2001) Net Loss: PLN 862.8 million (as of 3Q 2001) Total Current Assets: PLN 883.7 million Current Liabilities: PLN 444.3 million Outstanding Shares: 31.4 million Type of Business: Netia Holdings S.A. is an alternative fixed- line telecommunications operator in Poland, with 24 licenses to provide local voice telephony services in territories covering some 15 million people or approximately 40% of the Polish population. Trigger Event: Netia does not have sufficient cash to fund its anticipated capital expenditures, license fee obligations and debt service through September 30, 2002. As of September 30, 2001, the stand-alone Netia Holdings S.A. losses exceeded the sum of its reserve capital, spare capital and one third of its share capital. Moody's cuts rating to Caa1, reflecting concerns as to Netia's ability to secure additional funding and service its debt obligations, and the resignation of its CEO Mattias Gadd. Chief Executive Offier : Kjell-Ove Blom Chief Financial Officer: Alex Schmid Auditors: PricewaterhouseCoopers Sp. z.o.o. =========== R U S S I A =========== TV6: Berezovsky Will Sell Stake for $200MM ------------------------------------------ Exiled Russian businessman Boris Berezovsky, closely linked to former president Boris Yeltsin, is in discussions with a Moscow- based fund management company to sell his majority stake in television network TV6. The deal could be worth up to $200 million. According to a report from the Financial Times, Berezovsky is in talks with TPG Aurora to sell his 75% stake in TV6 for about $140 million, with a further payment based on how the network performs financially. The talks follow pressure by oil producer Lukoil, which has a 15% stake in TV6, to force the company into liquidation after claiming that the network is insolvent and that Berezovsky acted unfairly in appointing a new management team last summer. ===================== S W I T Z E R L A N D ===================== 4M TECHNOLOGIES: In Recapitalization Talks With Investors --------------------------------------------------------- 4M Technologies Holding, a New Market manufacturer of production systems for optical discs, is in talks with a group of unnamed private investors. The AFX News reported that the discussion is in view of its possible recapitalization and operations financing. No guarantee can be given as for the outcome of the negotiations, the report added. The company's refinancing and recapitalization is hampered by a critical lack of liquidity. 4M Technologies reported for the nine months ending September 30 a net loss of 33.4 million Swiss francs, compared to a loss of 60.9 million Swiss francs a year ago. =========================== U N I T E D K I N G D O M =========================== BRITISH TELECOM: Denies Plan to Sell Phone Network -------------------------------------------------- BT Group plc spokesman Ross Cook has dismissed a newspaper report that the U.K.'s second largest phone company plans to sell the company's fixed-line phone network, calling the report "speculative." According to a Bloomberg report, the Observer newspaper had reported that BT's new Chief Executive, Ben Verwaayen, was examining the option of selling the phone network, leaving its retail and customer billing operation as a separate company. Last year, German state-owned bank Westdeutsche Landesbank Girozentrale (WestLB) offered 18 billion pounds for the fixed- line network assets. At the time, BT rejected the bid, and Cook said the company's position on not to sell its fixed-line phone network had not changed. BT is currently going through a major restructuring. It has sold unprofitable businesses and spun off its wireless unit to slash debt that had tripled to 27.9 billion pounds ($40.3 billion) in the year ended March 31. CAMMELL LAIRD: Set for Re-launch This Summer -------------------------------------------- The new owners of ship repair group Cammell Laird Holdings PLC plan to reopen the bankrupt Merseyside shipyard this summer. The Times newspaper reported that ship repair specialist A&P Group Holdings Ltd, which bought Cammell Laird for about 10 million pounds in August, will hold talks with managers this week over the prospects for the unused yard in Birkenhead. "We have had some reasonable conversations with customers and would hope to reopen the Birkenhead yard in the summer or autumn," chief executive David Ring said. The renewed operation may only employ close to 100 people at the start, compared with about 1,200 shortly before it was placed in receivership. Ted Gilbertson, regional officer with the Amalgamated Engineering & Electrical Workers' Union, said the union would work with A&P to secure as much employment as possible. Cammell Laird went into receivership in April after the loss of a 50-million-pound Italian cruise ship contract. CEDAR ENTERPRISE: Alchemy Will Rescue Cedar From Insolvency ----------------------------------------------------------- London-based private equity firm Alchemy Partners will buy ailing software company Cedar Enterprise Solutions Ltd. in a deal that could be announced this week, the Financial Times reported Sunday. Alchemy was attracted to Cedar's turnover of more than 50 million pounds in the six months to September 30. Cedar Enterprise previously said it expected an offer of 5p a share, valuing the software company at 4.2 million pounds, compared with a peak market capitalization of 964.4 million pounds in March last year. The venture capital firm is expected to shoulder Cedar's net debt of 38.3 million pounds. A profit warning in September, poor market conditions in the UK and the US wiped more than 93% off the value of Cedar shares. Last week, Cedar admitted to a funding gap and said it would file for insolvency if all rescue efforts fail. It has already cut about 320 jobs and plans to reduce its workforce by another 80. Cedar's troubles stem from its ambitious acquisition of Enterprise Solutions for US$72 million (80.2 million euros) in 2000. COOKSON GROUP: Rival Firms Vie for Metals Unit ---------------------------------------------- Cookson Group Plc, the biggest maker of circuit board components, has received informal inquiries regarding its precious metals unit, the Sunday Times reported, without citing sources. Precious-metals refiner Johnson Matthey tops the list of potential buyers, the paper said. Venture capitalist Cinven is also an obvious candidate as is Kohlberg Kravis Roberts (KKR). The metals division is worth between 300 million pounds ($430 million) and 400 million pounds, and venture capitalists or trade buyers would be most likely to buy it, though Cookson is reluctant to sell since the business is a good cash generator. Cookson chief executive Steve Howard said he kept an open mind on acquisitions and disposals. Cookson, which has issued a string of profits warnings in recent months, has been looking at ways to raise cash as it sets about tackling a large debt burden, which in December stood at around 800 million pounds. It has sold a plastics molding business this month for around 38 million pounds. The value of the company has fluctuated wildly. At the beginning of 2001, Cookson was worth nearly 1.3 billion pounds, but closed on Friday with a market capitalization of just 674 million pounds. In 1990 it was worth 250 million pounds. CORUS GROUP: Capital Interested in More Corus Shares ---------------------------------------------------- Corus Group plc, Europe's third-largest steelmaker, said it has received a share request from the Capital Group Companies, on behalf of its affiliates including Capital Guardian Trust Company, Capital International Limited, Capital International S.A., Capital International, Inc. and Capital Research and Management Company. Euronext Amsterdam said that the companies notified Corus last week that it is interested in 218,936,596 ordinary shares of 50p, each representing 7.00% of the issued capital. These holdings form part of the funds managed on behalf of investment clients by the Capital Group of Companies, Euronext added. In December, Corus also said that it had received a notification of interest from the Capital Group Companies for 189,213,799 ordinary shares of 50p each, representing 6.05% of the steelmaker's issued capital. CORUS GROUP: Shares Rise as Steel Strengthens in U.S. ----------------------------------------------------- Shares of Anglo-Dutch steelmaker Corus Group plc put on 5p to close at 83.75%, reflecting the improvement in U.S. steel prices. According to a report from The Times newspaper, investors' interest in Corus has been rekindled since September's OECD meeting in Paris on the steel industry. The newspaper further reported that every 1p gain in the euro against sterling adds 27 million pounds to Corus' earnings before interest, tax, amortization and depreciation. ENRON CORPORATION: Wessex Water Execs Deliberate on Buyout ---------------------------------------------------------- Executives at water supply and sewerage company Wessex Water intends to win ownership of the utility to separate it from the collapse of its parent firm Enron Corporation. According to the Independent on Sunday, managers are preparing a US$1.7 billion (1.2 billion pound) bid for the West Country water provider and intend to announce to a City adviser for the proposal. The report adds that the Royal Bank of Scotland and German bank WestLB, which also own stakes in regional water companies, stand in line for the bidding. Potential bidders have about two weeks to enter first-round offers for Wessex, the paper said. EQUITABLE LIFE: Directors Urge Support for Rescue Plan ------------------------------------------------------ The board of Equitable Life and leaders of action groups at the stricken life assurer urged as many policyholders as possible to take part in this week's crucial vote on the society's rescue plan, the Independent News reported. There are two separate votes, one for Equitable's 70,000 holders of guaranteed annuity (GAR) policies and the other among the estimated 415,000 non-GAR policyholders. Equitable needs the support of 50% of policyholders by number and 75% by value to push through a compromise deal designed to stabilize the troubled insurer's finances. Under the compromise scheme, Equitable is offering policy uplifts averaging 17.5% to policyholders with valuable guaranteed annuity rate (GAR) options in return for waiving those rights. Non-GAR policyholders are offered 2.5% for agreeing not to sue the society for mis-selling. If the individual policyholders and the trustees vote through the deal by the January 11 deadline, Equitable will receive a 250- million-pound funding from Halifax mortgage group, which bought the insurer's fund management and administration operations last year. The National Association of Pension Funds earlier urged its members to support Equitable Life's compromise deal. POLESTAR CORP.: Finds Ways to Cut Cost Base ------------------------------------------- Polestar, one of the largest independent print groups in Europe, said that there has been a series of meetings between the Polestar Greaves management and the GPMU in an attempt to find ways to reduce its cost base and secure its future. The company said discussions have been conducted openly and honestly. The GPMU Representatives have been given access to the financial position of Polestar Greaves, but a workable solution was not possible after lengthy discussions and attempts by both parties to reduce losses in the Bindery. A recommendation will now be made to commence consultation on the proposed closure of the Bindery at Polestar Greaves. Positive negotiations between management and unions are continuing with regard to the printing business at Greaves. The financial crisis of Polestar has deepened after the collapse of a 20-million-pound property deal in August. Polestar has operations in the United Kingdom, Spain and Hungary. It provides essential printing services to a range of customers that include major magazine and newspaper publishers, retailers and direct mail organizations. RAILTRACK GROUP: Byers Gets New Deadline From Investors ------------------------------------------------------- Railtrack shareholders have given transport secretary Stephen Byers until this weekend to disclose key documents relating to his decision to place the network operator in administration. If he fails to comply, he risks being taken to the High Court, the Independent News reported. The Railtrack Shareholders Action Group (RSAG), which speaks for 45% of the shares in the rail network operator and is seeking up to 2 billion pounds in compensation, originally gave Byers a deadline of December 31 to hand over the documents that could be used to help it prepare a legal claim against the government. The shareholders want documents from meetings that occurred between Railtrack and government officials over the summer. They also want to know precisely what advice accountants Andersen LLP and investment bank Schroder Salomon Smith Barney (SSSB) gave Railtrack regarding its insolvency. Byers missed his deadline and promised to reply substantively to the request in the first part of January. WILLIAM BAIRD: Fails to Profit During Christmas Period ------------------------------------------------------ William Baird, the U.K.'s largest concession retailer, failed to profit from further gains for retailers amid talks that its trading over the Christmas period may have been disappointing. The Times newspaper reported that its Windsmoor division, whose brands include Windsmoor, Planet and Precis Petite, lost out to rivals such as Alexon and Country Casuals. Baird at the end of November also gave a warning on profits. It has postponed its planned 2p-a-share interim dividend in September as the loss-making group plunged 7.8 million pounds into the red before tax in the six months to June, compared to a 1.6-million-pound pre-tax profit last time. William Baird designs, manufactures and sells clothing principally in the United Kingdom, Europe and Asia. Its net debt at June 30, 2001 has fallen to 21.3 million pounds compared with 43.0 million pounds a year earlier. *********** 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 2002. 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. 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