/raid1/www/Hosts/bankrupt/TCREUR_Public/020301.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, March 1, 2001, Vol. 3, No. 43
Headlines
* B E L G I U M *
SABENA SA: Virgin Express & SN Merger Talks on Deadlock
UBIZEN NV: UCB Group Chooses Ubizen for Security Support
* G E R M A N Y *
DEUTSCHE TELEKOM: Compere Prepared to Match Liberty's Cable Bid
KIRCHGRUPPE: Deutsche Bank Offers New Plan for Formula One Stake
KIRCHGRUPPE: Carmakers Willing to Pay F1 Rights for Right Price
KIRCHGRUPPE: Carmakers Need Strong Justification to Buy F1 Stake
KIRCHGRUPPE: Experts Sought by Banks to Bare Report in 10 Days
* I T A L Y *
FILA HOLDINGS: Announces 2001 4Q, Unaudited Annual Results
* N O R W A Y *
KVAERNER ASA: Announces Fourth Quarter 2001 Results
KVAERNER ASA: Sees 4% Margin, NOR50 BB Sales Within 3 Years
KVAERNER ASA: Won't Pay Dividends After "Unsatisfactory" Year
KVAERNER ASA: Absorbs NOK5 Billion Loss in Forgettable 2001
* S P A I N *
JAZZTEL PLC: Funding Gap Overshadow Profits
* U N I T E D K I N G D O M *
BRITANNIC GLOBAL: Breaches Asset Cover Covenant With Bank
CLUBHAUS PLC: Claims Bondholders' Support on Restructuring Plan
ENERGIS PLC: Cable Corrosion Takes Its Wear and Tear on Energis
EQUITABLE LIFE: Equitable Policy Not Safe From Creditors' Claims
KPN NV: KPNQwest Inks Agreement to Support RTL Operations
NTL INCORPORATED: Exits Australia, Keeps Segment in Asia
NTL INCORPORATED: OFT Blocks BskyB-NTL Deal
NTL INCORPORATED: Talks Continue With BSkyB Despite OFT Action
P&O PRINCESS: Royal Offer May Be Tackled Anew at Chairman's Call
REGUS PLC: Firm Absorbs Record Losses, CEO Says 2002 Tricky
=============
B E L G I U M
=============
SABENA SA: Virgin Express & SN Merger Talks on Deadlock
-------------------------------------------------------
Negotiations regarding the merger between SN Brussels Airlines,
the successor to Sabena Belgian World Airlines, and Richard
Branson's carrier Virgin Express have broken off merger talks
after failing to agree on how to value each other's operations,
Reuters source say.
Reuters, citing a source close to the investors behind SN
Brussels Airlines, reports "It's not workable for the moment,"
suggesting talks could resume at a later stage.
The breakdown will leave the new Belgian airline to operate on
its own.
According to a source close to the negotiations, "In our view,
they were valuing Virgin much too high and (SN Brussels Airlines)
much too low."
The source adds that investors behind SN Brussels Airlines is
seeking that Virgin Express fund between 50 million and 100
million euros into the new airline to obtain the 45% stake that
Virgin sought.
The two airlines originally set February 28 as the deadline for
deciding on a deal, the source said.
Both airlines share the Brussels hub and already have a code-
sharing agreement that runs until early 2003.
In February, Reuters said, the Belgian airline obtained a 125
million-euro long-term loan from the government-controlled
Federal Investment Company, on top of the 155 million euros
(US$134.0 million) from its investors.
Delta Air Transport was the regional airline which took over its
failed parent airline Sabena. After DAT bankers Etienne Davignon
and Maurice Lippens were able to raise US$267 (308.9 million
euros) to continue DAT operations, DAT was renamed SN Brussels
Airlines.
Sabena, which declared bankruptcy in November 7, employs 6,000
and flies to 35 destinations.
Branson controls 59% of Virgin Express through a Virgin holding
group.
Virgin Express began restructuring its business last year by
downzising half of its fleet to 11. It abandoned loss-making
routes, closed its Irish operations in the end of 2000.
UBIZEN NV: UCB Group Chooses Ubizen for Security Support
--------------------------------------------------------
Global pharmaceutical and chemical companies UCB Group (www.ucb-
group.com) chooses security solutions provider Ubizen NV, through
its OnlineGuardian system, to provide infrastructure and security
solution.
Ubizen, through its press statement, said it will provide the
installation, management, monitoring and support of Virtual
Private Network (VPN) and Internet access for multiple sites
across UCB's Wide Area Network (WAN).
The financial details of the negotiation were not disclosed.
In an effort to expand throughout Europe, Asia and North America,
UCB Group has initiated the move. ICB has about 130 subsidiaries
and affiliates worldwide.
UCB Group turns to Ubizen OnlineGuardian for its vast technical
experience and breadth of Managed Security Services to protect
its proprietary knowledge and assets.
With operations centers located worldwide, Ubizen OnlineGuardian
service consists of the proactive management, monitoring and
support of security components around the clock.
Ubizen OnlineGuardian is Ubizen's family of Managed Security
Services. It provides proactive and remote management,
monitoring and support of e-Security technologies.
Last year, the company reported third-quarter net loss of 4.47
million euros, compared with the previous year's loss of 1.7
million euros. The drop was attributed to low sales and weak
economic conditions.
In August, the Belgian group announced to cut expenses by 4
million euros a quarter through job redundancies.
The company said the cost reduction plan has already started with
the closure of offices in Denmark and Hong Kong.
Last year, the group's net operating loss for the third-quarter
widened to 9.06 million euros, compare with a 2.06-million-euro
loss year on year.
Ubizen (http://www.ubizen.com)is a public company with dual
listings on Nasdaq Europe and the Euronext exchange.
For more information, contact: Ina Suffeleers-Investor Relations
Ubizen Corporate at +32 16 287 000 or email at
ina.suffeleers@ubizen.com.
=============
G E R M A N Y
=============
DEUTSCHE TELEKOM: Compere Prepared to Match Liberty's Cable Bid
---------------------------------------------------------------
UK investment group Compere is reportedly ready to match the 5.5
billion-euro-offer of Liberty Media for the cable assets of
Deutsche Telekom, reports the Telecom.
At present, the British firm is allegedly preparing concrete
offers to hurdle the objections posed by the German cartel
office, which blocked Liberty's bid earlier this week, says
Compere senior partner Tom Crema.
Separately, US-based Callahan Associates International is also
similarly interested, the report said.
KIRCHGRUPPE: Deutsche Bank Offers New Plan for Formula One Stake
----------------------------------------------------------------
Deutsche Bank, whose earlier plan was rebuffed by Leo Kirch, has
reportedly drafted a new plan for the media group's stake in
SLEC, the trust holding the broadcasting rights of Formula One
races.
Citing an anonymous source, the Financial Times said the new plan
will give the bank the mandate to peddle part of Kirch's stake in
SLEC to the five carmakers that own the F1 teams.
No price is being discussed as of the moment, according to the
source, but the bank is confident it can strike a deal with the
carmakers.
The carmakers have recently signified interest in setting up
another motor race circuit after they are released from the
"Concorde" agreement that binds them to SLEC until 2007.
The bank, however, thinks that with its good relationship with
the carmakers, an offer close to 50% in SLEC at a reasonable
price would close a sale, plus a new Concorde agreement.
Until recently, Kirch has only been willing to let go 25% of its
75% grip on SLEC, a position the carmakers have objected to for
years.
Earlier, the bank's initial plan drew the ire of Mr. Kirch,
especially when it questioned the company's creditworthiness.
KIRCHGRUPPE: Carmakers Willing to Pay F1 Rights for Right Price
---------------------------------------------------------------
Carmakers behind Formula One's top teams are reportedly eyeing to
bid for KirchGruppe's broadcasting rights in the race circuit,
the Times said Wednesday.
Jurgen Hubbert of Mercedes Benz, which owns 40% of the McLaren
team, told the newspaper that the deal could be had if the price
was right.
"But first, the sum would have to be lowered to something
realistic. I have an idea what a realistic sum would be, but I am
not going to tell," he said.
But it looks like Kirch does not have much choice. Five
carmakers, including Ford and Fiat are planning to set up their
own Formula One series in 2008. If that happens, Kirch's rights,
bought for almost US$2 billion, would have little value, if any,
by then.
Kirch needs quick cash right now to pay off its EUR6.5 billion
obligations.
KIRCHGRUPPE: Carmakers Need Strong Justification to Buy F1 Stake
----------------------------------------------------------------
While Deutsche Bank may indeed have a very good relationship with
Formula One team owners that could prove valuable in successfully
negotiating a Kirch deal with them, one question stands in the
way that may prove fatal if unanswered.
As DaimlerChrysler's Juergen Hubbert noted, "We manage the
(Formula One) teams and as a result finance the show to a large
extent, why should we still pay for it to belong to us one day?"
Kirch, which on paper holds 58% of SLEC, but in reality controls
75% of the holding trust that has broadcasting rights for 100
years, is selling part of its holdings to raise cash to pay its
debts.
Hubbert said this is not the first time the carmakers had been
offered a stake and it will not be the first time that they will
turn it down, in case.
"We must be able to justify (buying a stake)," Hubbert said.
At any rate, the team owners are not left without a choice. In
2007, an agreement that binds them to SLEC will expire and, as
early as now, they are considering putting up another motor race
circuit.
Hubbert, however, said that should they consider buying a part of
SLEC, a thorough due diligence process must be made because SLEC
currently lacks transparency.
The balance sheet of the racing has never been published and
although US$3 billion in income had been mentioned in the past,
there has never been any confirmation, Hubbert said.
KIRCHGRUPPE: Experts Sought by Banks to Bare Report in 10 Days
--------------------------------------------------------------
Insolvency experts hired earlier by Kirch as consultants at the
request of creditor banks will reportedly come up with a report
on the state of the media group's finances in 10 days.
The report surfaced in a Financial Times article Wednesday.
HypoVereinsbank, Commerzbank, DZ-Bank and Bayerische Landesbank,
the only lenders with exposure to KirchMedia, the group's rights
business, are waiting for the report before deciding whether to
roll over their credit.
"The report is there to make sure there is not more than meets
the eye as far as Kirch's debt is concerned," said one banker
close to the group. "The early indications suggest there is no
bad surprise to expect."
Earlier, speculations surfaced that the German media giant is
hiding more than its reported EUR6.5 billion debt. The three
experts were asked by the banks to look into the allegations.
=========
I T A L Y
=========
FILA HOLDINGS: Announces 2001 4Q, Unaudited Annual Results
----------------------------------------------------------
Fila Holding S.p.A. today reported its results for the fourth
quarter ended December 31, 2001 and its preliminary unaudited
results for 2001.
In U.S. dollars, fourth quarter net loss was US$46.8 million
compared with a net loss of US$44.7 million in the fourth quarter
of 2000; for the full year, net loss was US$125.3 million
compared with US$66.1 million in 2000.
On a per ADS/per ordinary share basis, net loss was US$0.76 per
ADS/share in the fourth quarter of 2001 compared with US$1.61 per
ADS/share in the same period of 2000, and the full year net loss
was US$3.00 per ADS/share in 2001 versus US$2.38 per ADS/share in
2000, in each case adjusted for the change in ratio in 2001 from
five shares per ADS to one share per ADS. The decrease in loss
per ADS/share in the fourth quarter of 2001 reflects the issuance
of additional shares in the third quarter of that year.
The Euro depreciated by 3% against the U.S. dollar on a quarterly
average basis; the average exchange rate was Euro 1= US$0.896 in
the fourth quarter of 2001 and Euro 1= US$0.871 in the
corresponding quarter of 2000.
Worldwide revenues for the fourth quarter were Euro 223.6
million, down by 4% from Euro 232.9 million in the corresponding
period of 2000; for the year, revenues decreased by 3% to Euro
977.2 million or up 1% in terms of continuing operations (i.e,
not considering sales of those subsidiaries discontinued at the
end of 2000 and the disposal of Dorotennis).
Net direct sales in the fourth quarter of 2001 totaled Euro 215.6
million, down by 4% from Euro 224.1 million in the corresponding
period of 2000 (or up 1% on a currency neutral basis). Apparel
sales were Euro 128.7 million and footwear sales were Euro 86.9
million, down by 3% and 4% respectively compared with the fourth
quarter of 2000.
Sales in the U.S. were Euro 74.5 million in the quarter,
increasing by 10% from Euro 67.7 million mainly thanks to Enyce
(+59%); in Europe sales decreased by 15% to Euro 68.1 million.
Sales in the Rest of the World decreased by 4%, as an excellent
performance in Korea (+33% in local currency in the quarter)
failed to offset a drop in Latin America, particularly in
Argentina, due to the recent economic crisis.
For the year, net direct sales were Euro 945.0 million compared
with Euro 974.1 million in 2000 or Euro 943.0 million in terms of
continuing operations. The U.S. and the Rest of the World
increased by 17% and 2% respectively whereas Europe decreased by
17% (or by 13% in continuing operations).
Royalty Income in the quarter was Euro 5.7 million compared with
Euro 6.7 million in the fourth quarter of 2000, and was heavily
impacted by the weakening of the Yen.
Gross profit for the quarter was Euro 70.7 million, representing
31.6% of total net revenues, compared to Euro 78.2 million (33.6%
of total net revenues) in the fourth quarter of 2000. The lower
profitability was due to the worsening of the Argentine crisis,
to the continuing weakness in some European markets and to the
decision in the U.S. market to accept lower margins in order to
maintain revenues in the poor economic environment following to
September events.
SG&A expenses for the quarter totaled Euro 90.6 million
(representing 40.5% of net revenues), down by 7% versus Euro 97.4
million (or 41.8% of net revenues) in the previous year, despite
exceptionally high provisions for potential bad debts in
Argentina (that amounted to Euro 4.5 million in the quarter).
SG&A's expenses for the year were Euro 386.8 million (39.6% of
net revenues), versus Euro 400.3 million (39.9% of net revenues).
Restructuring and other non-recurring costs for the quarter were
Euro 4.7 million compared to Euro 17.3 million last year. The
2001 charges arose mostly from the restructuring of the
Australian subsidiary as we switch to a licensing strategy rather
than distributing directly in that market.
As a consequence of the above mentioned factors, loss from
operations in the quarter was Euro 24.6 million compared with
Euro 36.5 million in the fourth quarter of 2000.
FILA GROUP'S NET DIRECT SALES (Euro)
FOURTH QUARTER FULL YEAR
ended December 31 ended December 31
-----------------------------------------------------------------
Euro million 2001 2000 2001 2000
------------ ---- ---- ---- ----
(unaudited) (unaudited)
UNITED STATES
Apparel 40.6 34.6 +17% 152.1 118.2 +29%
Footwear 33.9 33.1 +2% 133.7 126.0 +6%
---- ---- ----- -----
Total 74.5 67.7 +10% 285.8 244.2 +17%
EUROPE
Apparel 40.6 54.6 -26% 184.8 234.0 -21%
Footwear 27.5 25.8 +6% 173.5 199.5 -13%
---- ---- ----- -----
Total 68.1 80.5 -15% 358.3 433.5 -17%
REST OF WORLD
Apparel 47.5 44.0 +8% 178.8 162.9 +10%
Footwear 25.5 31.9 -20% 122.1 133.5 -9%
---- ---- ----- -----
Total 73.0 75.9 -4% 300.9 296.4 +2%
TOTAL FILA GROUP
Apparel 128.7 133.2 -3% 515.7 515.1 0%
Footwear 86.9 90.8 -4% 429.3 459.0 -6%
---- ---- ----- -----
Total 215.6 224.1 -4% 945.0 974.1 -3%
-----------------------------------------------------------------
Figures may not add due to rounding.
BALANCE SHEET SUMMARY
-----------------------------------------------------------------
December 31, December 31,
Euro million 2001 2000
------------ -------------- ---------
(unaudited)
Trade receivables 202.6 214.1
Inventories 235.0 232.9
Other current assets 94.5 88.6
Accounts payable (230.3) (181.4)
Working Capital (1) 301.7 354.1
Net fixed and non current assets 163.8 161.6
----- -----
TOTAL NET ASSETS 465.6 515.7
Net Financial Position (2) 359.8 427.0
Provision and Other Liabilities 17.1 16.6
Shareholders' Equity 88.6 72.1
---- ----
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 465.6 515.7
-----------------------------------------------------------------
(1) Excluding cash and short term loans.
(2) Short term and long term financial indebtedness less cash.
Figures may not add due to rounding.
KEY FIGURES IN U.S. DOLLARS
for the fourth quarter and twelve months ended December 31, 2001.
We publish our financial statements in Euro since the beginning
of 2001, prior to which we published our financial statements in
Italian lire. For convenience, however, certain key results are
presented herein as translated into U.S. dollars at the average
exchange rates in effect for the respective periods. Converting
Fila's consolidated results from Euro or lire into U.S. dollars
at the average exchange rate for each period, rather than at the
period-end rate, is consistent with Fila's practice of converting
the income statements of its foreign subsidiaries into Euro at
the respective average exchange rates during the applicable
period.
-----------------------------------------------------------------
FOURTH QUARTER FULL YEAR
ended December 31 ended December 31
2001 2000 2001 2000
---- ---- ---- ----
(unaudited) (unaudited)
Net Revenues
(U.S.$/million) 200.3 202.9 875.5 927.2
Net Loss
(U.S.$/million) (46.7) (44.7) (125.2) (66.1)
Net Loss per ADS (1) (0.76) (1.61) (3.00) (2.38)
(U.S.$/ADS)
Number of ADS
outstanding: 61,110,412 27,777,460 41,671,016 27,777,460
Average exchange rate 0.896 0.871 0.896 0.924
(U.S. dollar per Euro)
-----------------------------------------------------------------
(1) Losses per ADS were calculated by dividing Loss by the
number of ADS outstanding during the period (each ADS
representing 1 ordinary share).
FILA HOLDING S.p.A.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
FOR THE THREE MONTHS FOR THE TWELVE MONTHS
ENDED DECEMBER 31, ENDED DECEMBER 31,
2001 2000 2001 2000
------- ------- ------- -------
(In thousands of Euro, except for loss per share)
Net revenues:
Net direct sales 215,570 224,137 944,991 974,108
Royalty income 5,673 6,696 22,664 23,051
Other revenues 2,347 2,076 9,514 6,331
-------- -------- -------- --------
223,590 232,909 977,169 1,003,490
Cost of sales 152,927 154,693 632,078 610,563
-------- -------- -------- --------
Gross Profit 70,663 78,216 345,091 392,927
Selling, general and
Admin. expenses 90,581 97,418 386,838 400,313
-------- -------- -------- --------
Loss from operations before
Restructuring and other
Nonrecurring costs (19,918) (19,202) (41,747) (7,386)
Restructuring and other
Nonrecurring costs 4,722 17,270 4,722 17,270
-------- -------- -------- --------
Loss from operations(24,640) (36,472) (46,469) (24,656)
Other expense:
Interest expense, net(5,681) (7,772) (27,035) (25,159)
Foreign exchange losses(3,765) (4,815) (7,255) (8,373)
Bank charges (1,251) (856) (4,688) (4,223)
Other expense - net (7,448) (2,317) (27,260) (5,851)
-------- -------- -------- -------
(18,145) (15,760) (66,238) (43,606)
-------- -------- -------- --------
Loss before income taxes(42,785) (52,232) (112,707) (68,262)
Income taxes 9,312 (914) 27,010 3,323
-------- -------- -------- --------
Net loss (52,097) (51,318) (139,717) (71,585)
======== ======== ======== ========
Loss per share(in Euro)(1)-0.85 -1.85 -3.35 -2.58
(1) Loss per share has been calculated by dividing net loss by
61,110,412 and 27,777,460 ordinary shares outstanding for the
three months ended December 31, 2001 and 2000, respectively and
41,671,016 and 27,777,460 ordinary shares outstanding for the
twelve months ended December 31, 2001 and 2000, respectively.
For more details, contact: Fila Holding S.p.A.-Investor
Relations; Giulia Muzio, (39.015) 3506 418; Elena Carrera,
(39.015) 3506 246 or Citigate Dewe Rogerson Serena Vento,
212/419-8329.
===========
N O R W A Y
===========
KVAERNER ASA: Announces Fourth Quarter 2001 Results
---------------------------------------------------
Kvaerner ASA, the international oil services, engineering and
construction, and shipbuilding group, announced Wednesday its
results for the year ending December 31, 2001.
The pre-tax after exceptional items was a loss of NOK 5.0 billion
(US$560.6 million). The poor results follow the company's
restructuring of debt, the injection of new equity and the
forthcoming integration of Aker Maritime with Kvaerner Oil & Gas.
Helge Lund, President & CEO of Kvaerner, commented on the results
saying: "2001 was a difficult year for Kvaerner. The results are
clearly very unsatisfactory, but not highly relevant as the
Company now moves forward. The starting balance sheet of Kvaerner
with Aker Maritime operations included is as we predicted, and
this gives us a good opportunity to create value for the future."
The group's year end 2001 results reveal operating loss before
exceptional items was NOK 755 million (US$84.6 million).
Including sales gains of NOK 285 million (US$31.9 million) and
exceptional items of NOK 2,367 million (US$265 million), the
operating loss was NOK 2,837 million (US$318.1 million). The pre-
tax result was a loss of NOK 4,961 million (US$556.3 million).
Turnover for the year amounted to NOK 45 billion (US$5.0
billion). The development of the results throughout the year
mirrored the emerging problems of the Group. As the problems
became more apparent, the results deteriorated significantly
throughout the second half of the year.
This led to a highly unsatisfactory result for the year as a
whole. Substantial provisions were made in some of the business
areas, related to completion problems and disputes on a number of
contracts.
Furthermore, provisions and write-downs of NOK 4.0 billion (448.6
million) were made related to certain exposures, operational
assets, and financial investments.
The Board will propose to the Annual General Meeting that no
dividend should be paid for the year 2001.
Kvaerner's fourth quarter operating loss before exceptional items
was NOK 573 million (US$64.3 million) compared with a NOK 613
million (US$68.7 million) loss in the previous quarter.
The result is mainly due to operating losses in the Engineering &
Construction business area of NOK 276 million (US$30.9 million),
the Warnow shipyard of NOK 80 million(US$9.0 million), and NOK 82
million (US$9.2 million) at the Philadelphia shipyard.
Furthermore, the fourth quarter operating loss includes NOK 150
million (16.8 million) of costs related to the total refinancing
of the Group and provisions of NOK 87 million (US$9.7 million)
related to the move of headquarters from London to Oslo.
In addition to the substantial provisions made in the third
quarter, the Board deemed it necessary to take further write-
downs and provisions of NOK 0.5 billion (US$56.1 million) -
related mainly to the Greenfield pulp factory in France and the
Karbomont factory producing carbon black and hydrogen in Canada.
Sales gains of NOK 285 million (US$40.0 million) were recorded in
the fourth quarter for the sales of the Hydrocarbons business
(Oil & Gas), Kvaerner Process Technology (Engineering &
Construction) and Recycling & Dewatering (Pulp & Paper).
During preparation of the Group's accounts for 2001, in January
2002, it was discovered that some historical costs within the Oil
& Gas business area had not been recognised in line with the
progress of the projects.
The project costs in question amounted to NOK 231 million
(US$25.9 million) in total, before a reversal of NOK 200 million
(US$22.4 million) in unused central reserves. The net effect in
the Group accounts was NOK 31 million (US$3.5 million)- and this
figure was included in the exceptional provisions and write-downs
recorded in the fourth quarter.
The order intake in the fourth quarter amounted to NOK 7.6
billion (US$852.5 million) and the order reserve at the end of
the period was NOK 36.6 billion (US$4.1 billion), down from NOK
51.1 billion (US$5.7 billion) twelve months earlier. The order
intake was significantly higher in 2000, particularly due to
contracts within Shipbuilding.
Several major orders recently secured by Aker Maritime will be
transferred to the Oil & Gas business area as part of the
integration of the two businesses.
Oil & Gas Results: In the fourth quarter, operating profit
before exceptional items deteriorated to NOK 19 million (3Q: NOK
115 million); revenues for the fourth quarter, however, showed an
improvement over the previous quarter of NOK 371 million, to NOK
3,270 million. The business area booked a gain of NOK 125 million
on the sale of the onshore engineering activities to Yukos Oil
Company of Russia, affecting the profit before tax.
Engineering & Construction Results: Whilst the operating before
exceptional items result improved in the fourth quarter over the
previous quarter, the business area still produced a loss of NOK
276 million. The poor result is mainly caused by losses in the
Metals business stream, together with the continued under-
recovery in the major units, additional project losses
within the Process business stream and provisions and
contingencies added to projects in both Europe and the U.S.
Shipbuilding Results: The business showed an operating loss
before exceptional items of NOK 7.0 million during the fourth
quarter, representing a modest improvement over the loss in the
third quarter of NOK 24 million. Operating revenues for the
fourth quarter were comparable to those in the third quarter - at
NOK 2,772 million. For the year as a whole, the operating profit
of the area amounted to NOK 85 million.
Pulp & Paper Results: The fourth quarter operating result before
exceptional items showed a loss of NOK 20 million (3Q: NOK -97
million) whilst operating revenues increased from NOK 1,124
million in the previous quarter, to NOK 1,431 million. The loss
particularly relates to reduced workloads in both the Chemetics
and Power business streams.
The Group's activities are organized in four core business areas:
Oil & Gas, Engineering & Construction, Pulp & Paper, and
Shipbuilding.
Following the merger between Aker Maritime and Kvaerner's Oil &
Gas business, the Kvaerner Group expects about US$6 billion in
revenues this year.
The group employs a workforce of 40,000 permanent staff in over
30 countries throughout Europe, Africa, Asia and the Americas.
For further information: Paul Emberley, Vice President Group
Communications, Kvaerner ASA: +44 (0)7768 813090 or +44 (0)20
7339 1035 or visit www.kvaerner.com.
KVAERNER ASA: Sees 4% Margin, NOR50 BB Sales Within 3 Years
-----------------------------------------------------------
Anglo-Norwegian engineering giant Kvaerner ASA, which until
recently had trouble finding money to pay maturing debts, has
pictured a rosy NOK50 billion (US$5.6 billion) turnover within
the next three years.
According to an AFX News report, CEO Helge Lund expects a 4%
turnover margin and a total cash flow of NOK6 billion (US$673.8
million), including NOK4 billion (US$449.2 million ) in operating
cash flow.
He also predicted that within three years the company will have
freed up NOK2 billion (US$224.6 million) in net cash as a result
of disposals.
KVAERNER ASA: Won't Pay Dividends After "Unsatisfactory" Year
-------------------------------------------------------------
Troubled industrial engineering group Kvaerner ASA says it is not
going to pay dividend after absorbing a full-year pre-tax loss of
almost NOK5 billion (US$561.5 million) in 2001.
The group recently described its performance last year as "very
week" and "highly unsatisfactory," the Financial Times said.
The company attributed some of the losses to the NOK87 million
(US$9.8 million) cost of relocating its head office from London
to Oslo and a NOK150 million (US$16.8 million) group financing
cost.
New CEO Helge Lund, did not give any hints on how he will improve
the company's performance in the long-term, save for insisting
that the company now has a sound financial platform.
KVAERNER ASA: Absorbs NOK5 Billion Loss in Forgettable 2001
-----------------------------------------------------------
Restructuring engineering group Kvaerner ASA bared recently a
fourth quarter charge of NOK500 million (US$56.1 million) and a
full-year pretax loss of NOK5 billion (US$561.5 million),
confirming earlier speculations.
According to the company, the "very weak" result is in line with
the assumptions made by the new board in connection with the
refinancing agreement made after the company's funding crisis
last year.
Analysts had earlier expected new CEO Helge Lund to write down a
hefty amount, AFX News said.
The company is confident it now has a sound financial basis and a
good industrial platform for further development. This following
the restructuring of its debt, the injection of new equity and
the agreement to integrate Aker Maritime with Kvaerner Oil & Gas.
Management expects a better operating performance in 2002, the
report added.
=========
S P A I N
=========
JAZZTEL PLC: Funding Gap Overshadow Profits
-------------------------------------------
Spanish telecommunications company Jazztel PLC admit Tuesday the
2001 fourth quarter narrowed operating loss were overshadowed by
the company's report of an expected of funding gap in 2004.
That its funding will run out before the company becomes cashflow
positive caused concern. Merrill Lynch analyst Alex Patterson
said, "The earnings were good on an operational level, but the
problem is that they don't have enough funding, which will weigh
on shares."
Another analyst said that the company's downplaying of its
funding gap issue is "where our principle concerns remain". He
expects this to be the main matter to be raised at an analysts'
presentation Tuesday.
The group's fourth quarter operating performance, as measured by
its loss before interest, tax, depreciation and amortization,
decreased to EUR12.7 million from EUR31.6 million a year earlier,
the Dow Jones Newswires said.
Jazztel said its improved figures of EUR5.2 million was due to an
accounting change recommended by its auditors.
Meanwhile, its fourth quarter net loss grew to EUR58.0 million
from EUR3.3 million. Its full-year loss rose to EUR191.7 million
from EUR74.3 million in 2000.
Jazztel's full-year net loss narrowed to EUR259.4 million from
EUR267.0 million, excluding the effects of its EUR192.9 million
sale of Ya.com in 2000.
In a statement, Jazztel believes its present funds will be enough
to finance its planned network rollout and to meet its capital
needs until the end of this year.
On Tuesday, Jazztel's shares were up 1.6% at 8.22 euros, having
dipped earlier in the session.
Jazztel CEO Antonio Carro is hopeful to break-even on an EBITDA
basis in the middle of this year, while the company also said it
had reduced its debt via a bond repurchase.
Miguel Salis, the group's chief financial officer, said the
buyback had reduced outstanding high-yield debt to 676 million
euros as of Feb. 25, from 846 million euros at the end of the
second quarter of 2001.
===========================
U N I T E D K I N G D O M
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BRITANNIC GLOBAL: Breaches Asset Cover Covenant With Bank
---------------------------------------------------------
Investment trust company, Britannic Global Income Trust PLC,
admitted Tuesday that it has breached its asset cover covenant
due to continued deterioration of its assets.
Accordingly, it is now in discussions with the Bank of Scotland
and is considering a capital reorganization and raising
additional funds.
The firm counts Aberdeen Asset Managers Ltd. (27%), Britannic
Asset Management Ltd. (15%) and Framlington Investment Management
Ltd. (13%) as its major shareholders.
The company's principal bank is Citibank, with Ernst & Young LLP
as its auditors. It retains Norton Rose as its legal adviser.
For more information, contact the Britannic Global Income Trust
plc by Mail: Britannic Court, 50 Bothwell Street, Glasgow G2 6HR
by Phone: (0141) 222 8000 or by Fax: (0141) 222 8300.
CLUBHAUS PLC: Claims Bondholders' Support on Restructuring Plan
---------------------------------------------------------------
Golf club operator Clubhaus PLC announced early this week that it
has already reached an agreement in principle with bondholders on
its restructuring plan.
According to the company, holders of 73% of its GBP60 million
unsecured loan notes, which carry an interest coupon of 12 7/8%,
have agreed to convert GBP45 million of the principal into
ordinary shares.
In addition, the unpaid GBP3.9 million interest due on December
2001 will be similarly converted. Conversion price is
approximately 7 pence per share, AFX News said.
With this arrangement, said bondholders will receive
approximately 730 million new ordinary shares in the company,
representing 80% of the firm.
The remaining GBP15 million-debt will be preserved in the form of
loan notes, but the terms attaching to the obligation would be
amended, the report added.
Meanwhile, the company also said that preference shareholder
Marylebone Warwick Balfour Group PLC has likewise agreed to
convert its outstanding preference shares and its dividend rights
into ordinary shares.
This will result in the conversion of the GBP7.6 million B
redeemable preference shares held by Marylebone and its
GBP380,000 dividend in 2000 into 79.8 million new ordinary
shares, representing 9% of the company. The conversion rate is
10 pence per share.
Should the plan come to fruition, the restructuring would result
in the group's bondholders holding an 80% majority of the group's
ordinary shares with existing shareholders having 11% and the
preference shareholder 9%.
With this plan, Clubhaus expects to eliminate its net liabilities
and establish a positive net asset position while simultaneously
reducing significant cash interest burden borne by the company.
Meanwhile, a principal banker of the firm has pledged a new
GBP42.3 million 7-year medium term loan facility, which is
subject to the successful outcome of the plan. The company did
not reveal the identity of the bank.
ENERGIS PLC: Cable Corrosion Takes Its Wear and Tear on Energis
---------------------------------------------------------------
More trouble for embattled telecoms carrier Energis. The
company's 3,600-kilometer trunk networks slung over electricity
pylons are fast deteriorating and it may cost the firm GBP80
million to replace them.
The news could not have come at a more auspicious time.
According to the Telegraph, worries over the early replacement of
the cabling system have spread to the firm's banks, which are
currently considering whether to extend more money or not.
The overhead cabling was initially expected to have a shelf life
of about 25 years. Industry analysts, however, say the corrosive
impact of high winds has now reduced effective life to 7-8 years.
Replacing this overhead system with underground cabling, however,
is not by any measure a cheap proposition. Engineers say the cost
of laying new underground cable in rural areas could cost GBP24
per meter. In cities, it is about GBP90 a meter.
But is there much choice? Engineers say when overhead cabling
fails, it simply snaps and is unusable. Repairing it is not a
simple task because the telephone company has to ask the utility
that owns the pylons to turn off the power first.
EQUITABLE LIFE: Equitable Policy Not Safe From Creditors' Claims
----------------------------------------------------------------
In the event of Equitable's insolvency, Watson Wyatt, U.K.
pension consultants warns that 4 billion pounds worth of
Equitable Life unit-linked policy money could still be at risk.
According to a report obtained from the Electronic Telegraph, the
unit-linked funds belonging to 200,000 policyholders were thought
to be safe from creditors' claims.
However, in a circular sent to the consultant's clients last
week, Watson Wyatt did not receive complete reassurance from
Halifax, the company which bought Equitable's unit-linked funds
last year, that policyholders' money was not at risk.
"There is still a doubt as to whether these assets would be
legally protected in the event of an insolvency." The Electronic
Telegraph, citing Mark Stewart, partner at Watson Wyatt said.
Equitable Life Assurance Society used to provide life insurance,
annuities, pensions, and permanent health insurance to some
650,000 customers in the U.K., Germany, and Ireland.
The insurance specialist had to sell its business after the House
of Lords ruled that it underpaid some 90,000 guaranteed annuity
policyholders, leaving it with at least o1.5 billion in
liabilities.
U.K. mortgage bank Halifax plc bought much of what was left of
the troubled company, including its sales network, to form
Halifax Equitable (now part of HBOS plc).
Equitable remains to work out a compromise to satisfy its
policyholders.
KPN NV: KPNQwest Inks Agreement to Support RTL Operations
---------------------------------------------------------
Data communications company KPNQwest has signed an agreement with
RTL New Media, the Internet subsidiary of RTL Television, to
provide a scalable content delivery and backbone infrastructure
to support its online portal www.RTL.de.
According to Telecom.paper, RTL New Media, which serves the
largest European Internet market, has seen an enormous increase
in demand for content and streaming services.
KNQwest is a joint venture between U.S.-based Qwest, originally
with 48% of the voting power and Dutch company KPN NV with about
40%.
Recently, KPN sold a 4% package of shares to Qwest and under
terms of their agreement, KPN can sell the remainder of its
KPNQwest shares to Qwest beginning March.
KPN chief financial officer Maarten Henderson said earlier that
the company currently has 8.8 billion euros in cash, while net
debt as of December 31 is estimated at 16.5 billion euros.
NTL INCORPORATED: Exits Australia, Keeps Segment in Asia
--------------------------------------------------------
Debt-laden telecommunications and cable company NTL is quitting
Australia, a report on the Interspace and PBI Media said
Wednesday.
NTL will sell its 578 towers to Macquarie Bank for US$439 million
in cash. In March 1999, NTL acquired Australia's National
Transmission Network (NTN) for GBP250 million US$360 million).
The sell-off will not only raise cash for NTL, but also remove a
profitable division which last year generated EBITDA of US$27
million on revenues of US$61 million. The funds out of the sale
will be used to redeem foreign debts of US$117 million.
NTN is Australia's largest broadcast spectrum provider and
distributes TV and radio programming for the ABC and SBS national
networks.
NTL's Australian operations comprise two entities: NTL Australia
Pty. Ltd. and NTL Telecommunications Pty. Ltd.
Macquarie Bank said the sell-off will not affect the regular
operations of the business and all of its 118 employees will be
retained with selected management joining the Macquarie staff.
Macquarie will retain the technical services agreement with NTL
to ensure continuity of service for Australian customers.
Barclay Knapp, NTL CEO, said NTL was able to doubled its
Australian operation's revenues and earlier planned to sell the
network as part of a broader restructuring.
NTL INCORPORATED: OFT Blocks BskyB-NTL Deal
-------------------------------------------
NTL, the debt-ridden UK cable operator, was further weakened
Thursday after the UK regulators Office of Fair Trade (OFT)
refused approve a deal distribution deal between NTL and BSkyB.
Under the terms, BSkyB, of which The News Corporation has a 36.3
% stake, NTL would have acquired cable service distribution with
discounts at wholesale rates for Sky's channels in exchange for a
commitment to increase distribution of the channels.
Stephen Carter, managing director of NTL, was angered by the OFT
because it took 16 months for the office to decide that it would
not make a decision.
Similarly, in a statement to the Stock Exchange, BSkyB said: "It
is disappointing that, through regulatory inertia, commercial
progress is being impeded."
The OFT explained that the issues involved had been complex and
the file was now concluded. It added that neither party wanted to
continue the undertaking.
The delay in the OFT's decision was in part affected by the
office's probe into BSkyB's programme deals under Competition Act
rules, the Times adds.
NTL INCORPORATED: Talks Continue With BSkyB Despite OFT Action
--------------------------------------------------------------
Cash-strapped European cable operator NTL Incorporated announced
it will continue to hold discussions with British Sky
Broadcasting Group PLC about a "range of issues" despite the
Office of Fair Trading's (OFT) decision to block both entities'
pay TV arrangement.
The AFX News, citing NTL managing director and chief operating
officer Stephen Carter, said Wednesday, "NTL and BSkyB continue
to have on-going discussions about a range of issues."
Carter criticised the OFT, saying the long process it took for
regulators to come up with a ruling "reflects poorly on the
current UK competition system." He says it took the OFT 16 months
to decide on the issue.
"All companies in this sector look for effective, appropriate,
and most of all, timely intervention of the regulatory
authorities," Carter adds.
P&O PRINCESS: Royal Offer May Be Tackled Anew at Chairman's Call
----------------------------------------------------------------
P&O Princess Chairman Lord Sterling may exercise his option to
reconvene the shareholders meeting and vote on the Royal
Caribbean proposal anew, the Financial Times says.
Although there are no indications that he would do that, the
report said that putting Royal proposal to Princess shareholders
once more is possible.
In fact, Royal, which had earlier threatened to cancel its offer
following the February 14 adjournment, is amenable to putting
back the proposal for the second time once UK regulators clear
the merger deal.
UK's Competition Commission is expected to publish its opinion by
May.
On February 14, Mr. Sterling did not accept a shareholder
recommendation to adjourn the meeting to await clearance from
competition authorities on the rival bids of Royal and Carnival.
Mr. Sterling, instead, opted to adjourn the meeting indefinitely,
giving him the right to reconvene it anytime.
The report, however, says that calling on shareholders to vote
before the completion of regulatory probes would go against the
spirit of the adjournment motion.
REGUS PLC: Firm Absorbs Record Losses, CEO Says 2002 Tricky
-----------------------------------------------------------
Business center operator Regus warns of a tricky year, as its
losses continue to pull it deeper into the red, the Independent
said yesterday.
In a recent disclosure, the company reported operating losses of
GBP11.7 million as turnover in the period slipped 9% from last
year's GBP118 million.
Full-year pre-tax losses also widened from GBP39.9 million in
2000 to GBP110 million last year. Exceptional charges also rose
from GBP9.5 million in 2000 to GBP90.5 million.
According to the report, the company's trouble can be attributed
to its commitment to long-term leases, while offering customers
shorter-term lets, making it vulnerable to adverse economic
cycles. The company is planning to renegotiate some of its fixed
costs.
Last year, the company, which employs 54,000 worldwide, cut
almost a quarter of its staff as part of moves to slash its cost
based by GBP60 million or 50%.
But despite that, founder and CEO Mark Dixon, who recently bought
GBP240,000 of stocks, admitted the company is heading for a
difficult time this year.
Deutsche Bank analyst Paul Ginocchio, however, told the
Independent, that the company had met projections for cashflow.
The company has a total of GBP117 million in the bank at December
31, including GBP40 million from the issue of a convertible bond
at the end of last 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
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