/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020117.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, January 17, 2002, Vol. 3, No. 12 Headlines * B E L G I U M * SABENA SA: Creditors Agree on Financing Plan SABENA SA: Merger Plan With Virgin Express in Doubt * C Z E C H R E P U B L I C * SLEVARNA LIBEREC: May Avert Bankruptcy * F I N L A N D * SONERA CORP.: Wins Messaging System Order From Movere * F R A N C E * MOULINEX SA: Elco Wins Brandt Bid * G E R M A N Y * EM.TV: Seeks TMG Stake Buyer KIRCHGRUPPE: Gets Financial Reprieve From Dresdner KIRCHGRUPPE: Intends to Sell 10% Stake in Tele 5 * I T A L Y * ALITALIA SPA: Announces Board Swap With Air France ALITALIA SPA: Plans Salary Cuts to Save Jobs * N E T H E R L A N D S * LAURUS NV: Denies Claim in Spain LAURUS NV: El Arbol Supermarkets Face Claim for Unpaid Supplies * N O R W A Y * KVAERNER ASA: Names Aker Maritime as Major Shareholder * P O L A N D * LOT AIRLINES: State in Alliance Talks With BA NETIA HOLDINGS: Subsidiary Defaults on Senior Notes * S W E D E N * ICON MEDIALAB: Lost Boys Chief to Chair in Merged Company BEAU RIVAGE: Lindner Hotels Buys Hotel * U N I T E D K I N G D O M * BALTIMORE TECHNOLOGIES: SurfControl Snubs Content Unit CLUBHAUS PLC: Mulls 15-MM-Pound Rights Offering COLT TELECOM: Director Werner Klatten Steps Down COOKSON GROUP: Trading to Stabilize in Fourth Quarter FINELIST GROUP: Businesses Call in Receivers MARCONI PLC: Drops 10% After Posting Third-Quarter Loss MARCONI PLC: Will Implement 4,000 Job Cuts as Sales Drop MARCONI PLC: Will Not Hurry Bank Loan Renegotiations NTL INCORPORPORATED: Shares Fall on Funding Fears RAILTRACK GROUP: Convertible Bondholders Reject Debt Plan RAILTRACK GROUP: Moody's Cuts Railtrack Plc Bonds to Ba1 ============= B E L G I U M ============= SABENA SA: Creditors Agree on Financing Plan -------------------------------------------- Sabena creditors approved a financing plan Tuesday for a new, slimmed-down airline, the Associated Press reported, citing Sabena administrator Christian Van Buggenhout. Bankers Etienne Davignon and Maurice Lippens have raised the necessary $267 million to keep the former Sabena subsidiary Delta Air Transport (DAT) flying. The investors have also secured the approval of all creditors of Sabena's former in-house banker, SIC, which is also in bankruptcy court, AP added. Under the deal, the creditors will cancel $53 million in debt owed by DAT, and convert another $45 million into DAT shares. Public and private investors will also provide $170 million in fresh cash to recapitalize DAT only if the creditors agreed to cancel the debt. SABENA SA: Merger Plan With Virgin Express in Doubt --------------------------------------------------- The planned merger between Brussels-based airline Virgin Express and Belgium's bankrupt national air carrier Sabena could be terminated because a key provision in the rescue plan faces rejection from a group of creditors. According to a report from The Times/FT Information, Virgin Express owner Sir Richard Branson has recommended combining his airline with Sabena subsidiary Delta Air Transport (DAT). The rescue plan also includes the conversion of the other half of the loan into equity in the newly-created company. DAT will be forced to repay the loan if the rescue bid fails. Sabena's administrators will take over the airline if it does not succeed in generating the amount needed. =========================== C Z E C H R E P U B L I C =========================== SLEVARNA LIBEREC: May Avert Bankruptcy -------------------------------------- Foundry Slevarna Liberec will probably avoid bankruptcy in 2002, reports the Access Czech Republic Business Bulletin. Slevarna Liberec's 2001 proceeds amounted to 310 million Czech korunas. In the second half of 2001, the company's economics returned to the black. The company had accumulated losses of 140 million Czech korunas, which was slightly above 50% of its stock. Thereafter, the firm lowered its stock to 50%. The company exports nearly 75% of its production, mostly to Germany, Italy and Slovakia. It specializes in the manufacturing of gray cast iron parts for the automotive industry. ============= F I N L A N D ============= SONERA CORP.: Wins Messaging System Order From Movere ----------------------------------------------------- Sonera Corp., an international forerunner in mobile communications and mobile-based services and applications, said it has won an order to deliver its Juxto messaging system for the vehicles of Finnish transport company Movere Oy. No financial details were disclosed. The messaging service will cover telecommunications connections and data transmission between Movere's information system and vehicle-mounted terminals through GSM data connections. Sonera Juxto's messaging system will be responsible for the operation of telecommunications, such as integrity of data transmission, routing, and intermediate storage. Sonera was forced to sell off assets and organize in November a billion-euro rights issue to pay down debts of around 3.5 billion euros. For further information, please contact Ilkka Gramen, Account Manager, Sonera Juxto Ltd, at mobile number +358 40 777 2828 or via e-mail ilkka.gramen@sonera.com =========== F R A N C E =========== MOULINEX SA: Elco Wins Brandt Bid --------------------------------- A French commercial court Tuesday chose Elco Holding to take over Brandt, which went into receivership in September as part of the collapse of Moulinex SA. According to a Financial Times report, the court chose Elco because it was the only firm that offered to take over the whole of Brandt at an industrial and commercial level. The court's decision was also welcomed by French labor unions since Elco's bid was the most generous in terms of employment. The Israeli group offered to keep 4,195 employees out of Brandt's 5,300 workers in France. Elco also agreed to maintain Brandt's seven factories in France although one of them only on a partial basis. It pledged to invest 318 million euros ($284 million) to revive Brandt. Besides Elco, Arcelic-Beko of Turkey, Candy of Italy, and Whirlpool of the U.S. had offered to buy Brandt. ============= G E R M A N Y ============= EM.TV: Seeks TMG Stake Buyer ---------------------------- Troubled media-rights group EM.TV & Merchandising AG is in the process of finding a buyer for its 45% stake in TMG. However, any sale will require the approval of majority shareholder Herbert Kloiber, who heads the film-rights trader Tele-Munchen-Group (TMG), Handelsblatt reports. Kloiber told the German daily that any investor would have to be "block-free", not having any bias to Germany's two leading media groups, Kirch or Bertelsmann. His group favors an American company as its new shareholder. KIRCHGRUPPE: Gets Financial Reprieve From Dresdner -------------------------------------------------- KirchGruppe, the over-indebted Munich-based media group, was on Tuesday given additional breathing space to restructure its debt as Dresdner Bank agreed to extend the deadline for repayment of a loan worth 460 million euros to April, the Financial Times reported. This is the second time Dresdner postponed a debt payment. The bank previously granted Kirch a one-month extension in December. The time given by Dresdner will allow Kirch to finalize the sale of its 25% stake in Spanish television group Telecinco, worth around 600 million euros. Kirch has been under heavy pressure to solve its problematic debt situation. The company has debts of 11 to 12 billion Deutsche marks and more than contingent liabilities of 5 billion Deutsche marks. It aims to reduce the number of short-term loans and dispose of non-core assets, mainly minority holdings in non-German businesses, to improve its balance sheet. KIRCHGRUPPE: Intends to Sell 10% Stake in Tele 5 ------------------------------------------------ Broadcasting company Kirchgruppe intends to sell its 10% stake in Spanish television station Tele 5, the Dow Jones Newswires reports, citing a report obtained from the Expansion. The paper said Kirch has offered its stake to Spanish investors Alicia Koplowitz, Juan Abello, as well as Amancio Ortega, founder of Spanish clothing retail giant Inditex. ========= I T A L Y ========= ALITALIA SPA: Announces Board Swap With Air France -------------------------------------------------- Air France Groupe chairman Jean-Cyril Spinetta will have a seat on the board of struggling Italian carrier Alitalia SpA in the spring, AFX News reported. Alitalia's chief executive Francesco Mengozzi is also expected to have a seat on the French airline's board, the news agency said. The board swap is part of the airlines' commercial alliance, which was signed in July to help steer the carrier out of financial crisis. ALITALIA SPA: Plans Salary Cuts to Save Jobs ----------------------------------------------- Alitalia will propose that its employees receive a reduced salary and work less hours in order to save 2,500 jobs, the La Stampa/FT Information reported. Trade unions said they have called for a strike tomorrow since they were not consulted on the plan drawn up by managing director Francesco Mengozzi. The airline management and trade unions will have 45 days to reach an agreement. Otherwise, the labor minister will intervene to help the various parties reach a compromise. In December, the struggling carrier has issued new shares to raise between 1.2 billion and 1.4 billion euros. ===================== N E T H E R L A N D S ===================== LAURUS NV: Denies Claim in Spain -------------------------------- Dutch supermarkets and wholesale group Laurus NV has denied reports it is facing a claim of 48 million euros from Spanish suppliers. According to a Dow Jones Newswires report, company spokeswoman Sigrid van Amerongen said that Laurus is not aware of such a lawsuit nor is it aware that suppliers have sought to claim money from the company. The Dutch financial daily Het Financieele Dagblad earlier reported that creditors of Laurus' supermarket chain in western Spain have filed the damages claim in a Madrid court. The 1,200 suppliers say they have not been paid. LAURUS NV: El Arbol Supermarkets Face Claim for Unpaid Supplies --------------------------------------------------------------- Laurus NV's El Arbol supermarkets, previously known as Unigro, are facing a 48-million-euro claim for unpaid supplies. According to an AFX News report, the conflict dates back to 1996, when the supermarket acquired Tragoz Distribucion and split the company into three separate groups. Casle 53 took on the real estate activities and Centro Operativo Salamanca, created by Unigro, took over the remaining activities, including over 50 supermarkets. Tragoz Distribucion was declared insolvent and filed for protection from creditors. El Arbol managing director Jorge Ferre insisted that the group has complied with all of its payments to distributors. The S-Hertogenbosch-based Laurus is selling its loss-making supermarket chains to improve the company's results and strengthen its financial position. =========== N O R W A Y =========== KVAERNER ASA: Names Aker Maritime as Major Shareholder ------------------------------------------------------ Kvaerner, the international engineering and construction group, said that oil and gas engineering specialist Aker Maritime is its biggest shareholder, holding 26.54 million shares, or 7.44% in the company. Folketrygdfondet followed with 21.73 million (6.09%), Morgan Stanley & Co. S/A Customer Segrega with 19.56 million (5.49%), State Street Bank & Client Omnibus with 13.54 million (3.8%) and Salomon Brothers Int S/A Yukos Finance with 12.89 million (3.62%). The rest of the firm's shareholders hold stakes of less than 3.5%. Kvaerner, which staved off bankruptcy in November by agreeing to merge with its rival Aker, now has 29,244 registered ordinary shareholders of which 613 are shareholders not resident in Norway, representing approximately 37.85% of the share capital. For more information, contact Paul Emberley, Vice President Group Communications at telephone +44 (0)20 7339 1035 or via email paul.emberley@kvaerner.com =========== P O L A N D =========== LOT AIRLINES: State in Alliance Talks With BA --------------------------------------------- The government met Tuesday with British Airways PLC executives to discuss closer cooperation with PLL LOT and the possible participation by the troubled Polish national air carrier in the Oneworld Airline alliance. According to a Dow Jones Newswires report, Treasury Minister Wieslaw Kaczmarek discussed these issues with a delegation led by Michael Jackson, the director of BA's Alliance Department. The Polish state is keen to find a new partner for LOT, whose net loss more than tripled to 252 million zlotys in the first half of 2001 compared with the same period of 2000, to guarantee the national carrier's future after the demise of strategic partner Swissair, which owns 25.1% stake in LOT. NETIA HOLDINGS: Subsidiary Defaults on Senior Notes --------------------------------------------------- Netia Holdings S.A., Poland's largest alternative fixed-line telecommunications services provider, announced Wednesday that it has defaulted on certain debt payments. The Warsaw-based company said that an "event of default" occurred as of the close of business Tuesday under the indentures governing the 13.125% Senior Dollar Notes due 2009 and the 13.5% Senior Euro Notes due 2009 of its subsidiary, Netia Holdings II B.V. As previously announced, Netia Holdings II B.V., did not make an interest payment of $6,562,500 on the 13.125% Senior Dollar Notes or an interest payment of about 6.75 million euros on the 13.5% Senior Euro Notes, both of which were due on December 15, 2001. Netia also announced that the default has triggered the cross- default provisions of the indentures governing Netia Holding B.V.'s 10.25% Senior Dollar Notes due 2007, 11.25% Senior Discount Dollar Notes due 2007, 11% Senior Discount DM Notes due 2007, and the 13.75% Senior Euro Notes due 2010. Netia previously announced plans to engage in discussions with its bondholders concerning a consensual reorganization of its balance sheet to reduce its debt and interest burdens. Pending further developments in relation to these discussions, it made the decision in December to withhold the interest payments on certain of the notes due on December 15, 2001. Netia Holdings in September reported a loss of 1.87 billion Polish zlotys, which exceeds the aggregate of the spare capital, the reserve capital and one-third of the company's 1.74 billion Polish zlotys share capital. It defaulted on swap obligations in December. =========== S W E D E N =========== ICON MEDIALAB: Lost Boys Chief to Chair in Merged Company --------------------------------------------------------- Troubled Swedish Internet consultant Icon Medialab International AB, whose shares were suspended on the Stockholm bourse in December, announced Tuesday its proposed members of the board of directors after its merger with Amsterdam-based Lost Boys N.V. Lost Boys chairman Roel Pieper has been proposed as Chairman of the new board. New members of the Board will include Michiel Mol, Dieter Pohlmann and Fred Mulder. Another new member with Swedish nationality will be proposed shortly. Tom Nicholson and Jesper Jos Olsson are the only current members who will remain on the board. The board members will be proposed for election by the shareholders at the EGM tomorrow. In the third quarter of 2001, Icon Medialab reported an operating loss of 146.9 million Swedish kronas. Its cost base was reduced to 382.5 million Swedish kronas. For further information, please contact William Kellerman, Corporate Communications, IconMedialab International, at telephone +46-70-375 90 20 or via email william.kellerman@iconmedialab.se ===================== S W I T Z E R L A N D ===================== BEAU RIVAGE: Lindner Hotels Buys Hotel -------------------------------------- German hotel operator Lindner Hotels has acquired the Interlaken- based Beau Rivage, which opened insolvency proceedings in 2000, the Neue Zurcher Zeitung/FT Information reported. Financial details were not disclosed. The management of the five-star Swiss hotel will remain unchanged. =========================== U N I T E D K I N G D O M =========================== BALTIMORE TECHNOLOGIES: SurfControl Snubs Content Unit ------------------------------------------------------ SurfControl Plc, a maker of software that filters out pornography on the Web, said it does not plan to buy Baltimore Technologies Plc's Content Technologies unit, Bloomberg reported. Although some analysts have said that SurfControl may be interested, its chief executive officer commented, "Content Technologies is a good business, they are a leader in e-mail filtering. They are not on our radar scope at this moment." London-based Apax Partners & Co. earlier withdrew its offer for the Content Technologies division amid concerns about the amount of cash needed to get the operation back on its feet. The disposal of the Content unit is part of Baltimore's plan to break even before its cash reserves run out. At the end of September, Baltimore had 32.4 million pounds left in cash. CLUBHAUS PLC: Mulls 15-MM-Pound Rights Offering --------------------------------------------------- Golf course operator Clubhaus considers raising up to 15 million pounds through a rights offering if it successfully refinances 60 million pounds in bonds, the Times reported yesterday. The group, which has seen its share price slide due to poor trading and property writedowns, is negotiating for a debt-for- equity swap deal with plans to support a share issue open to ordinary shareholders. Bondholders propose that in return for 60 million pounds of bonds at almost 13% interest, they will be given 75% of Clubhaus' equity while retaining a 40-million-pound bonds earning of just 6%. Both the board and Clubhaus banker Barclays are confident to agree on a compromise within the next few days. According to the report, the AIM-listed group's stockbroker Peel Hunt initiated a rights issue to raise between 10 million pounds and 15 million pounds. Shareholders who head moves to seize control of the board from Robert Bourne, the chairman, and Charlie Parker, managing director include Leisure entrepreneurs Eddy Shah and David Lloyd. Clubhaus' present value is 4.9 million pounds, while it bears a total debt of about 105 million pounds. COLT TELECOM: Director Werner Klatten Steps Down ------------------------------------------------ Werner Klatten of cash-strapped COLT Telecom Group PLC has resigned as a director of the company effective January 15, Dow Jones Newswires reported. "My executive management commitments mean that I can no longer give the time necessary to fulfill my responsibilities as a director of COLT," Klatten said. The London-based company, a provider of voice and data services to businesses in 13 European countries, last year secured 494 million pounds in funding after a share issue backed by fund manager Fidelity, its biggest stakeholder. COOKSON GROUP: Trading to Stabilize in Fourth Quarter ----------------------------------------------------- After severe declines in activity experienced since early 2001, British electronics and ceramics firm Cookson Group Plc said that trading conditions have stabilized in the fourth quarter. Reuters reported that Cookson Group is expected to post an annual pretax profit of about 7 million pounds. Cookson, which has issued a string of profit 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 last week with a market capitalization of just 674 million pounds. In 1990 it was worth 250 million pounds. FINELIST GROUP: Businesses Call in Receivers ------------------------------------------------ Autela Express and Bulldog Express, the businesses of Stratford- based motor components firm Finelist, were put into receivership just before Christmas. According to a report from The Times newspaper, KPMG was brought in as receiver on December 21 to facilitate the unwinding of residual working capital. The insolvency firm said the fact that the businesses had effectively ceased to trade before its appointment meant it was unable to conduct a sale. The two companies, which sold branded car parts, had 16 branches and an estimated combined turnover of 18 million pounds. KPMG expects to hold a creditors meeting in February, by which stage it anticipates it will have been able to quantify the extent of the companies' debts. MARCONI PLC: Drops 10% After Posting Third-Quarter Loss ------------------------------------------------------- Troubled telecoms equipment maker Marconi Plc lost 10% to close at 34.75p after it said that third-quarter revenue from its phone-gear business fell 37% to 706 million pounds, while operating losses stood at 130 million pounds. The company also said it would cut 4,000 more jobs to return to profitability. The London-based company has been selling assets over the past three months in an effort to reduce between 2.7 and 3.2 billion pounds of debt by March. Marconi said its net debt as of December 2001 was 3.5 billion pounds, reduced from 4.3 billion pounds in September. MARCONI PLC: Will Implement 4,000 Job Cuts as Sales Drop -------------------------------------------------------- Marconi says it will cut 4,000 more jobs in response to declining sales in the final three months of 2001. The announcement came as Marconi early this week reported an operating loss of 130 million pounds ($188 million) for its core communications division, alongside a steep fall in sales to 706 million pounds, down from 893 million pounds in the second quarter. Chief executive Mike Parton said the plan to cut 4,000 jobs, 1,000 in the UK, could involve some compulsory redundancies and closures. He declined to say which factories would go. The cuts are aimed at enabling Marconi to break even. MARCONI PLC: Will Not Hurry Bank Loan Renegotiations ----------------------------------------------------- Marconi disclosed it would not hasten talks with bankers to renegotiate its loans, Ananova reported. The company recently refinanced 2.2 billion pounds of its debt through bonds. In addition, it has secured about 4.5 billion pounds of funding through February 2003 . Marconi finance director Steve Hare told Ananova the company is confident of achieving successful negotiations with its lenders and remain to complying with present commitments. NTL INCORPORPORATED: Shares Fall on Funding Fears ------------------------------------------------- Shares in cable TV company NTL Incorporated fell more than 15% from 65 to 55 cents in Monday's trading as investors expressed fear about the company's long-term funding, the Financial Times reported. NTL, which has debts of $17 billion, will probably cut budgets for capital expenditure and marketing in a revised business plan due to be presented to analysts later this month. Both cuts are key to driving broadband take-up The plan is expected to involve lowered capital expenditure and revenues targets for 2002. It is anticipated that NTL will also need to restructure its debt over the next 12 months to easy heavy interest payments. RAILTRACK GROUP: Convertible Bondholders Reject Debt Plan --------------------------------------------------------- Railtrack holders of the 400 million pounds of exchangeable bonds failed to agree to give the government breathing space to find a buyer or set up a not-for-profit replacement for the insolvent railway operator, Reuters reported. Bondholders had been asked to give up their rights to legal action to recover their money. In return, the government would finance Railtrack's debt for three years or until a replacement firm takes on its liabilities. With the failed vote, Railtrack administrators Ernst & Young said that it is up to Transport Secretary Stephen Byers to decide the way forward. To recall, Byers withdrew financial backing for Railtrack last October, pushing it into administration. Railtrack Group, parent company of the failed network operator, plans legal action against the government to recover money for its shareholders, who include thousands of railworkers as well as some of the world's biggest investment firms. RAILTRACK GROUP: Moody's Cuts Railtrack Plc Bonds to Ba1 -------------------------------------------------------- Credit ratings agency Moody's Investors Service downgraded to Ba1 the 400-million-pound 3.5% Exchangeable Bonds due 2009 of Railtrack PLC. The move comes as holders of the Exchangeable Bonds voted to waive all Events of Default and Potential Event of Default of the Exchangeable Bonds, effectively failing to agree to enter into the Standstill Agreement. Moody's notes that under the terms of a Loan Agreement between Transport Secretary Stephen Byers, Local Government and the Regions (SOS) and Railtrack PLC, SOS may issue a Stop Notice prohibiting the use of funds to pay the debt service obligations of those finance creditors that have decided not to enter into the Standstill Agreement. Moody's believes that the risks to this class of bondholders have increased materially as there is a possibility that SOS will issue a Stop Notice with respect to the Exchangeable Bonds. If this happens, and if such a Stop Notice is not rescinded prior to March 18, Railtrack would not make the interest payment due to the Exchangeable Bonds on that date. Moody's has also maintained its Baa1 rating for all other long term rated obligations, and its P2 rating for all short term rated obligations of Railtrack PLC. *********** 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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