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/raid1/www/Hosts/bankrupt/TCREUR_Public/020429.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 Monday, April 29, 2002, Vol. 3, No. 83 Headlines * G E R M A N Y * COMMERZBANK AG: WCM Denies Malicious Intent for Upping Stake DEUTSCHE TELEKOM: T-Mobile Foreign Financials Q1 2002 GRUNDIG AG: Needs to Find New Partner by June or File Insolvency KIRCHMEDIA: ProSiebenSat1 Won't Give up TV Rights on Bundesliga KIRCHGRUPPE: F1 Founder Urges Banks to Give Carmakers 30% Stake TEAMWORK INFORMATION: Deutsche Borse Approves Incomplete Issue * N O R W A Y * KVAERNER ASA: Secures Asian Contract Worth US$ 40MM * N E T H E R L A N D S * KPNQWEST NV: Moody's Cuts Ratings on News of Bear Sterns Hiring * P O L A N D * ELEKTRIM SA: Claims Against BRE Bank S.A. and PeKaO S.A. * S P A I N * QUIERO TV: Shareholders Give up on Losing Terrestrial Digital TV * U N I T E D K I N G D O M * BIOCOMPATIBLES INTERNATIONAL: Notification of Director Interests BRITISH TELECOM: Expects Broadband Offers to Turn Around Firm COOKSON GROUP: Shares Market Optimism for Rebound CORUS GROUP: Notification of Directors' Shareholdings EGG PLC: Credit Card Company Announces Board Changes EQUITABLE LIFE: Experts Doubt Success of Lawsuit FUTURE NETWORK: Annual Report 2001 and Notice of AGM INVENSYS PLC: Secures New Credit Facility Worth US$ 1.39BB ITV DIGITAL: Deloitte & Touche's Confirms to Sell ITV ITV DIGITAL: ITC Will Revoke License If ITV Cease to Braodcast MARCONI PLC: Secures GBP 850MM for Banks, Bondholders MARCONI PLC: Bares Record Sales Drop, Expects Gloom to Persist P&O PRINCESS: Reports 43% Increase in Pre-tax Profits for Q1 RAILTRACK PLC: Railtrack Investors to Pit Legal Luminary v. Byers TELECITY PLC: Reveals 2002 First-Quarter Results ============= G E R M A N Y ============= COMMERZBANK AG: WCM Denies Malicious Intent for Upping Stake ------------------------------------------------------------ German investment group WCM AG increased its stake in Commerzbank last week, only two months after it had done the same. Handelsblatt says the move raised the investment firm's interest to 9.9% and is now the fourth-largest shareholder of the bank behind re-insurer Munich Re, Italian insurer Assicurazioni Generali and Cobra, a special investment vehicle that has since been dissolved. Known for its penchant for investing in engineering firms to later dismantle them to generate value, WCM said it won't do the same at Commerzbank. WCM CEO Roland Flach denied speculations that it increased its stake to make it attractive to Hypo- Vereinsbank. "We are in the process of building up our position, so we're not thinking of starting to sell off our shares just now," he told Handelsblatt. Mr. Flach says he is committed to hold on to the stake for about two to five years. He expects the value of the shares to go up to EUR33 to EUR40 soon. Commerzbank shares leveled at EUR20 last week. WCM is based in Frankfurt. It recorded net profits of EUR430 million in 2001 through the disposal of Pentaplast, the foil manufacturing business of its Kl"ckner-Werke AG unit. In February, the company announced that it had upped its stake in Commerzbank from 1% to 5.5%. DEUTSCHE TELEKOM: T-Mobile Foreign Financials Q1 2002 ----------------------------------------------------- T-Mobile International, the mobile communications subsidiary of Deutsche Telekom, today announced Thursday ist detailed first quarter 2002 results of its U.S. operations, consisting of VoiceStream Wireless and Powertel, Inc., which both operate under the VoiceStream brand name. The VoiceStream results reported in this press release include Powertel's results. All financial figures are in USD and are in accordance with U.S. GAAP. "VoiceStream achieved positive EBITDA for the first time this quarter while continuing its very strong subscriber growth," said Kai-Uwe Ricke, CEO of T-Mobile International and Member of the Board of Management, Deutsche Telekom AG." VoiceStream achieved the strong growth in EBITDA by managing its costs carefully. VoiceStream's cost drivers and churn are heading in the right direction while ARPU remains steady." Robert Dotson, President and Chief Operating Officer of VoiceStream, said "Our Get More subscriber offering continues to be compelling to wireless users. VoiceStream has always been a leader in the consumer market. We are now seeing growth in the business segment as well, which we attribute to our growing national scope, attractive WorldClass International roaming rates with T-Mobile and our competitive advantage of offering the only ubiquitious high-speed data network (iStream) across our entire footprint. All of this is leading to continued strong growth for VoiceStream in a highly competitve market." In the first quarter ended March 31, 2002,VoiceStream added 508,500 net new subscribers to bring its total subscribers to approximately 7.5 million. Contract net additions amounted to 556,700 compared to 583,000 contract net additions in the fourth quarter. Contract churn decreased to under 3.0% in the first quarter from 3.3% in the fourth quarter. The pre-pay customer base shrank by 48,200 customers. Service revenues exceeded US$1.0 billion in the first quarter representing a 7% growth over the fourth quarter of 2001. Total revenues in the first quarter amounted to approximately US$1.2 billion. Subscriber ARPU was US$51 in the first quarter compared to US$52 in the fourth quarter. Blended ARPU, including prepaid and roaming revenues, amounted to US$48. VoiceStream reported Adjusted EBITDA of US$75 million in the first quarter, a margin to service revenues of 7.2%. The cost of acquiring a subscriber, referred to as CPGA in the U.S., declined to US$291 in the first quarter and the cost of serving customers (covering all other operating expenses) declined to $26 per customer per month. Much of these cost efficiencies were the result of integration efforts since merging operations with Powertel. Capital expenditures amounted to $419 million in the first quarter. Key "Get More" highlights this year include: -- "Get More" service: During the first quarter, VoiceStream expanded its service footprint to cover 162 million people as a result of natural expansion in many of its markets. With the launch of service in California later this year, VoiceStream will have a covered footprint of over 200 million people by year-end 2002. -- "Get More" wireless data: VoiceStream announced new developments in the areas of both text messaging and high speed wireless data in the first quarter. First, VoiceStream launched inter-carrier text messaging, giving customers the ability to send text messages to other wireless users, regardless of their carrier. Second, VoiceStream announced the availability of two new devices for use on its system wide high-speed GPRS data network -- the RIM Blackberry 5810(TM) wireless handheld e-mail solution with Integrated Phone and the wireless PC Data Card. Both devices represent the most compelling next generation devices in the market today. Finally, in January, VoiceStream acquired the assets of MobileStar Network Corporation and now provides 802.11b wireless broadband service in 650 hot spots across the country under the name T-Mobile Wireless Broadband as a complement to the GSM/GPRS voice and data network. -- "Get More" features: In April, VoiceStream was selected by the National Communications System (NCS) to become the first wireless operator to provide Wireless Priority Service (WPS) to designated national security and emergency preparedness personnel in the greater Washington, DC and New York City areas in times of crisis or national emergency. Key figures for T-Mobile USA Operations ('000) Q4/01 Q1/02 Covered population 152,000 162,000 Customers ('000) 6,993 7,501 thereof contract subscribers 5,173 5,729 thereof pre-pay customers 1,820 1,772 MOUs/Contract Sub/Month 585 550 Contract churn 3.3% less than 3.0% Blended churn 4.8% 4.4% ($ / month) ARPU (blended) $ 49 48 ARPU (contract) $ 52 51 ($ million) Total revenues 1,122 1,176 Service revenues (a) 973 1,037 Adjusted EBITDA (b) -67 75 Incentive bonuses 0 11 EBITDA -67 64 Capex 300 419 (a) Subscriber, prepaid, and roaming revenues (b) Excluding incentive bonuses related to the DT merger T-Mobile International, one of Deutsche Telekom AG's four strategic divisions, is one of the world's leading international mobile communications providers. Deutsche Telekom's subsidiaries and affiliated companies today serve more than 69 million mobile customers worldwide. T-Mobile is the first transatlantic mobile communications provider utilizing the digital GSM wireless technology standard. For more information about T-Mobile International, please visit www.t-mobile.com. Based in Bellevue, Wash., VoiceStream and its affiliates operate the largest GSM/GPRS wireless voice and data network in the United States with licenses to provide service to over 94% of the population. VoiceStream also operates a Wi-Fi 802.11b wireless broadband (WLAN) network in more than 650 public locations including airports, conference centers and coffeehouses under the name T-Mobile Wireless Broadband. VoiceStream is a member of the T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom (NYSE:DT), and will begin marketing services under the T-Mobile brand by the end of 2002. VoiceStream is committed to providing the best value in wireless service through its GET MORE promise to provide customers with more minutes, more features and more service than any other wireless provider. For more information, visit the company web site at www.voicestream.com. Contact Information: T-Mobile International Stephan Althoff, +49 228.936.1700 Deutsche Telekom Hans Ehnert, +49 228.181.4949 Investor Relations Contacts: Deutsche Telekom Investor Relations Bonn, +49 228.181.88880 Deutsche Telekom Nils Paellmann, 212/424-2951 GRUNDIG AG: Needs to Find New Partner by June or File Insolvency ---------------------------------------------------------------- German radio and television maker Grundig AG must find a buyer before June or be swept in the wave of corporate failures in Bavaria, Handelsblatt says. The German daily recently interviewed CEO Hans-Peter Kohlhammer who admitted that he has until June to negotiate with new partners, who are key to its survival. He said the credit facility of the bank is due to mature by that time. "We need fresh funds, and these can't be obtained via credits," Mr. Kohlhammer told Handelsblatt. Reports have surfaced that there are at least three investors talking with the Nuremberg-based company. However, there are also indications that an agreement is still farfetched. It is thought that majority shareholder Anton Kathrein is willing to give up to 49% of the company's capital to new investors. Mr. Kathrein took over 89% of Grundig in 2000, when it teetered on the brink of insolvency. Mr. Kohlhammer could not be swayed to reveal what demands the company is asking from the prospective buyers. He only said that a "financial partner should co-finance our expansion." The chief says the company plans to branch out to Asia by establishing partnerships with local manufacturers. He told the paper that the expansion to this region is a matter of "life and death" for the company. The company recently bared encouraging figures for the first quarter, which it credits as a result of the restructuring program introduced last year. This program, however, cost the company an estimated loss of EUR160 million for full-year 2001 on sales of around EUR1.3 billion. Final figures will be presented at the end of May. The company expects to remain in red figures for full-year 2002. The company shed one sixth of its workforce last year, bringing down the number to 5,000. At its peak, when the company was one of the stars of Germany's post-war Economic Miracle, it employed 40,000, Handelsblatt said. KIRCHMEDIA: ProSiebenSat1 Won't Give up TV Rights on Bundesliga --------------------------------------------------------------- ProSiebenSat1 Media AG, a majority-controlled free-TV network of KirchMedia, is in danger of losing its rights to screen games of Germany's major soccer league, Bundesliga. According to Handelsblatt, league is threatening to boycott Premiere, the pay-TV channel owned by KirchMedia, and there are rumors that it could spill over to ProSiebenSat1. The league allegedly doubts the ability of the insolvent media rights group to pay the EUR100 million it still owes. But ProSiebenSat1 CEO Urs Rohner says he is not about to let go of the broadcasting rights to the games. "We will be entering negotiations as we do every year, and we're in pole position for next season," Mr. Rohner told Handelsblatt in an interview. The channel, which is not affected by the KirchMedia insolvency, reported revenues of EUR2.015 billion and pretax profit of EUR106 million in 2001. It is currently rigorously cutting costs across all its divisions. The network will present its first-quarter results on today. KIRCHGRUPPE: F1 Founder Urges Banks to Give Carmakers 30% Stake --------------------------------------------------------------- Banks holding the 58% Formula One stake of KirchGruppe are allegedly being urged by Bernie Ecclestone to relinquish 30% of the stake in favor of the carmakers to spare the racing circuit from the imminent collapse of KirchBeteiligung. The Kirch unit is in danger of suffering the fate of KirchMedia and TV.Berlin, which have recently declared insolvency. Carmakers have indicated they are willing to talk with the banks, but only if they are offered a controlling stake in the racing series. Mr. Ecclestone controls 25% of SLEC, the holding company of the Formula One circuit. He says he is willing to fuse his shares with that of the carmakers if they would in turn pledge not to set up their own series. The Big Five manufacturers -- DaimlerChrysler, Mercedes, Fiat, Ferrari, BMW and Ford -- had previously threatened to bolt and establish their own circuit in 2007 when their exclusivity agreement with the SLEC ends. According to the Financial Times, the banks have yet to make a definite decision on the matter. The only thing certain at the moment is their desire to get a return on their US$1.6 billion loan to Leo Kirch, which was used to finance the acquisition of the stake last year. The banks holding the stake as collateral are Bayerische Landesbank, Lehman Brothers and JP Morgan Chase. TEAMWORK INFORMATION: Deutsche Borse Approves Incomplete Issue -------------------------------------------------------------- Deutsche Borse AG approved on Wednesday Teamwork Information Management AG's incomplete prospectus for its issue of subscription rights to a first increase in capital stock as part of its restructuring plan. The details of the rights issue will be released within the next few days. Contact: Dr. Sabine Brummel, Tel.: +49 5251-5201-145, e-mail: sbrummel@teamwork.de Listed on the Neuer Markt since July 1999, teamwork information management AG is an international provider of collaborative business solutions for the intranet and intranet. Collaborative business allows electronic information management both within companies and in their dealings with customers and business partners. With collaborative business, control of the information flow is automated and business processes are electronically mapped. The services offered by teamwork AG include consulting, development, implementation, support and training. =========== N O R W A Y =========== KVAERNER ASA: Secures Asian Contract Worth US$ 40MM --------------------------------------------------- Kvaerner, the international oil services, engineering and construction, and shipbuilding Group, announced Thursday the award of a significant contract by BP Exploration Operating Company Limited for Operation & Maintenance Support Services to the Nam Con Son Development in Vietnam. The total value of these services is estimated to be in the range of US$15-20 million. Also Thursday, the Group announced the extension of an existing O&M contract for Woodside Energy Limited, working on the Laminaria Northern Endeavour FPSO, situated on the NW Australian Shelf. The existing 3-year contract has been extended for a further 2 years, concluding in October 2004. The total value of the extension contract for Woodside is approximately US$20 million. For BP in Vietnam, Kvaerner will provide services at both the offshore gas production platform and onshore facilities, which are located in Vung Tau, some 80 kilometers south east of Ho Chi Minh City. Kvaerner's scope of work includes the provision of core team and ad-hoc personnel to carry out the initial set-up and continual management of the contract, campaign maintenance services, shutdown and major maintenance services, and modification services. Graeme Shirreffs, KFM Operations Director said: "The Nam Con Son award is a major breakthrough in the development of our business in South East Asia - and it is a significant contract from one of the industry's top blue-chip organizations. We see the market for KFM in Asia Pacific growing substantially over the next few years and we are now very well placed to build on our successes to date." The BP contract has been awarded to Kvaerner Facilities Management (KFM) which is Kvaerner's unit for the Operation & Maintenance business in the Asia Pacific region. One of the key criteria in securing the contract was the ability to demonstrate an established track record in similar Operation & Maintenance contracts, combined with a strong regional capability. "Our previous experience in working with BP on projects such as the Harding Operation & Maintenance project and the BP/Petronas Acetyls project in Malaysia were important factors in helping us win this contract and this will ensure that our world-class safety culture is adopted by the project in Vietnam." added Donald Kemp, Director of International Business for KFM. A further important factor in securing the project is Kvaerner's partnership with Petroleum Technical Services Company (PTSC) of Vietnam. Kvaerner is developing comprehensive workshop facilities with PTSC at the Vung Tau offshore supply base area that will provide support for the Nam Con Son Project, as well as other future requirements. PTSC will also provide local personnel and other resources required for the project, such as training facilities and equipment. The Kvaerner Group's activities are organized in four core business areas: Oil & Gas, E&C (Engineering & Construction), Pulp & Paper, and Shipbuilding. Following the merger between Aker Maritime and Kvaerner's Oil & Gas business, the Kvaerner Group expects to have revenues in 2002 approaching US$6 billion, with some 42,000 permanent staff located in more than 30 countries throughout Europe, Africa, Asia and the Americas. Kvaerner Facilities Management was established specifically to pursue and undertake Modification, Maintenance & Operation (MMO) contracts within the Asia Pacific region. It combines the technical expertise and track record of Kvaerner's MMO business in Aberdeen, Scotland, and Kvaerner Facilities Management of Perth, Australia - with the regional strength and management resources of the Operation & Maintenance business of Kvaerner E&C, Asia Pacific. The Asia Pacific regional headquarters for Kvaerner Facilities Management is Kuala Lumpur, Malaysia. This organization brings together a substantial track record in operation and maintenance projects for companies such as BP, Total/Elf/Fina, Woodside Australia, Bataan Polyethylene Corporation of the Philippines and many others. Contact Information: Graeme Shirreffs, Operations Director, Kvaerner Facilities Management, Asia Pacific: +603 381 8388 or graeme.shirreffs@kvaerner.com or Paul Emberley, Vice President Group Communications, Kvaerner ASA: +44 7768 813090 (in Asia until 27 April) or paul.emberley@kvaerner.com or visit the Group website at www.kvaerner.com. ===================== N E T H E R L A N D S ===================== KPNQWEST NV: Moody's Cuts Ratings on News of Bear Sterns Hiring --------------------------------------------------------------- Moody's lowered last week the senior implied rating of KPNQwest N.V. to Caa3 from Caa1 and the unsecured ratings to Ca from Caa3 following the announcement of the company that it hired Bear Sterns & Co to advise on strategic and financial alternatives. The ratings agency also did not spare the EUR525 million senior secured credit facility maturing 2006, cutting its B3 rating to Caa1. Moody's gave the company a negative outlook. "Moody's believes that a likely restructuring of the balance sheet in order to maintain the viability of the business may prompt non-payment of interest payable on the unsecured high yield notes," the agency said in explaining the downgrade. The ratings agency, however, noted that at this point KPNQwest is not yet in breach or default of its senior secured credit facility nor is it in default of its high yield indentures. "However...both sets of documentation contain cross-default clauses which would be triggered if a breach was not rectified within specific 'cure' periods unless the cross default clauses were waived by individual creditor classes in advance," Moody's noted. "In the event that KPNQwest opts to restructure the high yield notes, Moody's anticipates material losses for par bondholders given the uncertainty with respect to the valuation of KPNQwest's assets in a downside scenario," the agency said. The downgrade, which affected approximately US$1.9 billion of debt securities, revised these previous ratings: Senior Implied Rating to Caa3 from Caa1 Senior Unsecured Rating to Ca from Caa3 EUR340 million 7.125% Eurobonds due 2009 to Ca from Caa3 EUR500 million 8.875% Eurobonds due 2008 to Ca from Caa3 US$450 million 8.125% Global bonds due 2009 to Ca from Caa3 EUR210 million 10% Convertible Notes due 2012 to Ca from Caa3 KPNQwest N.V is a leading pan-European data communications and hosting company, which delivers a full range of carrier and corporate networking solutions, hosting and Internet services across an 18-country 25,000 km European footprint, interoperable with the 300,000 km Qwest global network. For more information, contact: London Carlos Winzer Senior Vice President European Corporate Finance Moody's Investors Service Ltd. 44 20 7772 5454 London Michael West VP - Senior Credit Officer European Corporate Finance Moody's Investors Service Ltd. 44 20 7772 5454 =========== P O L A N D =========== ELEKTRIM SA: Claims Against BRE Bank S.A. and PeKaO S.A. -------------------------------------------------------- The Management Board of Elektrim S.A. announces that on April 25, 2002, it filed a claim with the Warsaw Regional Court against BRE Bank S.A. claiming payment of PLN 62,706,593.54 (US$15.6 million) plus interest accrued until the date of payment, and a claim against PeKaO S.A. claiming payment of PLN 35,075,324.80 (US$8.7 million) plus interest accrued until the date of payment. The above amounts result from the fact that on March 27, 2002, BRE Bank S.A. and PeKaO S.A. debited Elektrim's account with the amount of Elektrim's liability as guarantor of syndicated credit no 17/075/98/Z/IK dated January 4, 1999 extended to company RST El-Net S.A. In the opinion of the Management Board of Elektrim S.A. the action taken by the two banks was unacceptable and invalid as it breached the legal norm under art. 39.1 of the Ordinance of the President of the Polish Republic dated October 24, 1934 Law on composition proceeding, which restricts the possibility of offsetting receivables during a composition proceeding in progress. The claims have been served because Elektrim's demand submitted to the banks on April 2, 2002 requesting repayment of the amounts that had been offset from Elektrim's account have not been satisfied. ========= S P A I N ========= QUIERO TV: Shareholders Give up on Losing Terrestrial Digital TV ---------------------------------------------------------------- Shareholders of Quiero TV have given up hopes of turning a dime from Spain's only experiment with terrestrial digital pay-TV, agreeing last week to liquidate the network. According to the Financial Times, main shareholders Auna, a private telecoms group; Planeta, Spain's biggest publisher; Carlton TV of the UK; and MediaPark, a Catalan company withdrew their backing for the company. They had earlier hoped to sell the firm, but potential buyers such as Telefonica and Anschutz, a US investment group, backed off at the last moment. Observers say this sealed the channel's fate. The paper says the infantile pay-TV market of Spain as well as fierce competition from big time providers like Canal Plus, owned by Vivendi of France, and Telefonica made the channel a losing proposition. The company is believed to be hemorrhaging EUR24 million a month. The paper says the channel has a total estimated loss of EUR600 million. =========================== U N I T E D K I N G D O M =========================== BIOCOMPATIBLES INTERNATIONAL: Notification of Director Interests ---------------------------------------------------------------- Healthcare product manufacturer Biocompatibles -- http://www.biocompatibles.co.uk-- granted on April 24, 2002 the company's director Swagatah Mukerji options in 140,000 ordinary 5p shares with exercise price fixed at GBP1.04P. The said options are exercisable between third and tenth anniversary of grant. Following this notification, Mr. Mukerji now holds options over 300,000 shares in the company. For more information, contact Fiona Evans of Biocompatibles International plc at 01252 732712. BRITISH TELECOM: Expects Broadband Offers to Turn Around Firm -------------------------------------------------------------- British Telecom, the restructuring telecom giant that failed to take off in continental Europe, expects to earn an additional GBP490 million between this year and March 2005 as a result of shifting focus to broadband services. The company expects the BT Broadband service, which will give customers always-on, high-speed Internet access through their home phone line, to become profitable by 2004 and generate an estimated GBP360 million in sales between 2004 and 2005. This service will be launched this autumn and it aims to sign up 500,000 new residential connections by the summer of 2003, the Financial Times says. The new service is directly competes with Freeserve, the other provider of broadband Internet access in the UK, but it is cheaper at GBP27 per month, compared with Freeserve's GBP30 monthly charge. The company is also launching Digital Support, a service that will help customers in buying personal computers and software and upgrading to broadband. The service, which will also debut in autumn, is expected to rake in a further GBP150 million in broadband revenues for the company. The company also expects an additional GBP40 million from a micropayments service, which allows customers to pay in small increments for downloads of games and music online. Meanwhile, the corporate broadband product, announced earlier this month, is to bring another GBP30 million by 2004. All these are part of the new business plan unveiled by newly appointed CEO Ben Verwaayen recently. The plan outlines several initiatives aimed at generating GBP1.5 billion in additional earnings in the 2004/2005 financial year. Broadband access will account for nearly a third of this. COOKSON GROUP: Shares Market Optimism for Rebound ------------------------------------------------- British materials technology group Cookson reported first-quarter sales of only GBP436 million or 6% less than the previous quarter, but noted that a recovery is forthcoming. According to the company, there are signs that the slump in the electronics market, where its core business operates, is "bottoming out." "This suggests that the inventory overhang, which was the major contributor to the downturn, has largely worked its way through the system," the company told the Financial Times. The firm, however, refuses to identify a definite period where it sees a recovery in its own performance, given the encouraging market condition. "Although the timing of a sustained recovery in the group's markets - particularly electronics - remains uncertain, there is growing belief that there will be some improvement in the second half of 2002," the company said. The company said the cost-cutting program initiated last year had offset the fall in sales, resulting in first quarter pre-tax profits in line with the last quarter of 2001. CORUS GROUP: Notification of Directors' Shareholdings ----------------------------------------------------- Steel manufacturing company Corus group plc announced Thursday that the following directors of the company purchased Corus Group plc shares at 88 pence per share on April 22, 2002 under the Corus Group Employee Share Ownership Plan. Name of Director No of Shares Purchased A P Pedder 142 D M Lloyd 142 Following this notification, the directors shareholdings are: Name of Director Total No of Shares A P Pedder 99,398 D M Lloyd 1,956 Contact Information: 30 Millbank London SW1P 4WY, United Kingdom Phone: +44-20-7717-4444 Fax: +44-20-7717-4455 EGG PLC: Credit Card Company Announces Board Changes ---------------------------------------------------- Egg plc announced Friday the resignation of Mr. David Smilow as a non-Executive Director of the company, effective immediately. Mr Smilow joined the Board of Egg as a non-Executive Director in May 2000. His other directorships include Co-Chairman and CEO of Inviva Inc., and American Life Insurance Company of New York. Mr Smilow has made this decision on the basis that his other business interests are now focused in the USA and he feels that he will be unable to give the necessary commitment to Egg moving forward. Chairman of Egg plc, Roberto Mendoza, said: "David has been with Egg during an important time and we have valued the contribution he has made enormously. It is most regrettable that he will not be with us on the next stage of our journey, but we thank him for his contribution and wish him well for the future." Egg will be announcing the appointment of a replacement Non- Executive Director in due course. For further information, contact: Media: Emma Byrne 020 7526 2565 mobile: 07775 657 241 Press Office: 020 7526 2600 email: prteam@egg.com Shareholders: Sue Windridge 020 7526 2500 sue.windridge@egg.com EQUITABLE LIFE: Experts Doubt Success of Lawsuit ------------------------------------------------ Lawyers doubt the legal action planned by Equitable Life against 15 former directors will prosper, says the Financial Times. Accordingly, the company will need to prove that the directors acted negligently and erroneously when they failed to foresee a defeat on a test case before the House of Lords and did not provide adequate financial provision. Lawyers interviewed by the paper all share the belief that it would be difficult to prove culpability because the directors, along with regulators and auditors, had based ostensibly their actions on solid legal advice. Although Equitable's controversial stance on guaranteed annuity policies was eventually overturned by the House of Lords in the summer of 2000, it had previously been held to be legal by both the High Court and then the Court of Appeal, the paper says. Before the Lords case, the company in its annual report and accounts insisted that it faced an exposure of only GBP50 million to the guaranteed annuity problem, although it had provided for GBP200 million in its balance sheet. But following the defeat in the case, the society admitted having liabilities of more than GBP1.5 billion, the report says. Thereafter, the company close to new business and was forced to sell assets to Halifax, which in turn pressured it to strike a compromise scheme with policyholders to stem its liabilities. Now the mutual wants those responsible for the debacle to pay. Two weeks ago, the company also announced plans to sue former auditor Ernst & Young for over GBP2 billion in damages. The ex-directors facing the GBP3 billion suit are: Roger Bowley, who served from 1989 - 1997; Peter Davis, 1995 - 2001; Christopher Headdon, 1999 - 2001; Shaun Kinnis 1989 - 1997; Peter Martin 1984 - 2001; Alan Nash 1993 - 2000; Jennifer Page 1994 - April 2001; David Price 1996 - 2001; Roy Ranson 1985 - 1997; John Sclater 1985 - 2001; Peter Sedgwick 1991 - 2001; Jonathan Taylor 1995 - 2001; David Thomas 1989 - 2001; Alan Tritton, 1976 - 1999; David Wilson 1994-1999. Denton Wilde Sapte, the law firm, will not be named in the suit, as Equitable had been advised that it had no case against the former legal advisor. FUTURE NETWORK: Annual Report 2001 and Notice of AGM ---------------------------------------------------- The Future Network plc -- www.thefuturenetwork.plc.uk --, the international specialist magazine publisher, announced Thursday its Annual Report & Accounts for 2001 and Notice of Annual General Meeting have been mailed to all shareholders on August 25, 2002. The AGM will be held at 99 Baker Street, London, W1U 6FP at 11am on Wednesday 29 May 2002. Copies of the above documents have also been submitted to the UK Listing Authority and will shortly be available for inspection at the UK Listing Authority's Document Viewing Facility, which is situated at Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 5HS (telephone 020 7676 1000). The company's preliminary results in the group's balance sheet for the year ending December 31, 2001 were highlighted as follows: - Net debt reduced by 89% to GBP7.8 million at year-end - Provisions for vacant properties totalling GBP4.0 million - Year-end net assets now GBP106.0m (2000: GBP195.6 million) - Financial highlights of the Group profit and loss account - Turnover from continuing activities GBP142.9m (2000 - GBP151.5 million) - Operating profit (EBITA) from continuing activities GBP10.0 million (2000 - GBP10.8 million) - Operating losses (EBITA) from discontinued activities GBP15.7 million (2000 - GBP13.3 million) - Net interest payable GBP6.5 million and refinancing costs GBP3.8 million - Net exceptional gain of GBP15.4 million from sales and closures - Non-cash write-downs of GBP120.6 million of intangible assets - Group loss before tax of GBP121.0 million (2000: GBP59.3 million) Please click http://bankrupt.com/misc/preliminaryresults2001.pdf to view a copy of the company's consolidated balance sheet and consolidated profit and loss statement. INVENSYS PLC: Secures New Credit Facility Worth US$ 1.39BB ---------------------------------------------------------- World-leading automation and controls firm Invensys Plc has once more called on banks to lend it money to replace a GBP950 million financing that will fall due this August. The new financing is much higher than the maturing bank facility. According to the Financial Times, Bank of America, Deutsche Bank, HSBC Bank, JP Morgan, Morgan Stanley Dean Witter and Royal Bank of Scotland secured the US$1.39 billion multi-currency facility for Invensys. The new credit will mature in July next year. The new loan did not seat well with investors who interpreted it as a sign of liquidity strain. The report says shares dropped 4�p to 107p after the disclosure of the new facility. ITV DIGITAL: Deloitte & Touche's Confirms to Sell ITV ----------------------------------------------------- According to the Deloitte & Touche, the administrators of ITV Digital, they are offering the business and assets of ITV Digital for sale with immediate effect. The administrators have confirmed they have not been able to secure additional funding on terms that would enable them to commit to a long-term sale process. Talks continued Thursday as the company negotiated with its major suppliers regarding their willingness to continue to provide services on a short-term basis while offers were invited for the business and assets. The process was undertaken in attempts to maximise the value of the assets on behalf of all of the company's creditors. It is likely ITV Digital customers will continue to receive free to air services, at least in the short term while the sale process is concluded. All customers and suppliers will be contacted directly and advised of this process as soon as possible and the administrators will continue to co-operate with the independent television commission until the business and assets have been sold. ITV DIGITAL: ITC Will Revoke License If ITV Cease to Braodcast -------------------------------------------------------------- After Deloitte & Touche, the administrators of ITV, announced its intention to undergo a short-term sale process for ITV Digital's business assets, the independent television commission (ITC) said the following statement on Thursday, April 25: The ITC regrets that the administrator is unable to secure funding for an orderly takeover of the ITV Digital business. We have informed him that at the point at which pay services cease to be broadcast and the business no longer fulfils the terms of its licences we will put in train arrangements to revoke the licences and proceed to an accelerated re-tender. We expect re-tender to take six weeks. The ITC is liaising with government and the broadcasters to ensure the continued availability to viewers of the digital terrestrial free-to-air public services throughout these processes. We have asked the administrator to make sure that information about service availability is provided to viewers on the screen. MARCONI PLC: Secures GBP 850MM for Banks, Bondholders ----------------------------------------------------- Marconi Plc announced last week that it had set aside some GBP850 million in cash to pay bank and bondholders, a move seen as a sweetener to convince creditors to keep the company as a going concern. The former blue chip telecom equipment maker recently circulated a revised business plan to two camps of creditors, who must agree on certain projections the company made. It is hopeful that the ring-fenced money will make them think twice of liquidating the firm. The money can no longer be touched by the company nor by its shareholders. It is part of the GBP1.4 billion cash it generated from selling some of its non-core assets, The Times says. Meanwhile, in a separate concession to creditor banks, the company agreed to pay a sharply higher rate of interest on its GBP2.2 billion loan to reflect its "junk" credit status, the paper says. MARCONI PLC: Bares Record Sales Drop, Expects Gloom to Persist -------------------------------------------------------------- The one-time high-flying telecoms equipment maker Marconi Plc reported last week sales of only GBP948 million for the three months to the end of March, less than half of the GBP2.07 billion recorded last year. The company said the dive underscores the continuing slump of the market, which by its estimates, will last until next year. The firm told shareholders and investors to brace themselves for more bad news. The company, though, managed to narrow losses in the core business to GBP108 million on sales of GBP813 million, the Financial Times said. The company also recorded a positive operating cash flow of GBP204 million on improvement in working capital. But the losses that the company has continued to rack up will force it to take a further GBP700 million to GBP800 million in exceptional operating charge, the report says. This will be in addition to the hefty write-downs it had already taken in the last six months. P&O PRINCESS: Reports 43% Increase in Pre-tax Profits for Q1 ------------------------------------------------------------ The downturn in the tourism industry as a result of the September 11 incident appears to be leveling, if the results of P&O Princess for the first quarter were made the indicator. The cruise operator disclosed last week that it had a 43% rise in pre-tax profits, on bookings that were 40% higher than last year for the same period. Pre-tax profit for the three months to March 31 reached US$27.1 million from US$18.9 million previously. Sales, however, dropped 6% to US$512.1 million, primarily caused by the 8% slide in prices, the Financial Times noted. These encouraging results led the company to forecast earnings of about 36 to 41 cents a share this year. CEO Peter Ratcliffe told the paper he expects prices to return to pre-September 11 levels in the fourth quarter. The report says the figures soothed shareholders who have been concerned that the management may be distracted by the raging battle between Carnival and Royal Caribbean, industry rivals trying to recruit the company to its fold. RAILTRACK PLC: Railtrack Investors to Pit Legal Luminary v. Byers ----------------------------------------------------------------- Private shareholders of Railtrack Plc, who wants to make Stephen Byers pay for putting the firm into administration, have hired the services of legal eagle Michael Crystal QC, says the Telegraph. A decorated lawyer, Mr. Crystal is now reportedly reviewing the case from the Railtrack Private Shareholders Action Group against Mr. Byers for alleged misfeasance and abuses of EU Human Rights legislation, the report says. Investors and private shareholders are opposed to the Network Rail settlement, which is only offering 97p a share. Action group Chairman Andrew Chalklen called the offer "totally derisory." The group has been egging other investors to join the suit against the transport secretary and has managed to raise GBP400,000 to finance the lawsuit. It is charging GBP20 to those who would join the action. Mr. Crystal carries with him a storied legal career lined by several renowned cases. He represented Mirror pensioners in the Maxwell affair and appeared in the Polly Peck and BCCI cases. He was also one of four British silks sent to Bermuda for the recent Thyssen case, the GBP70 million family feud that split one of Switzerland's leading industrial families, the paper says. TELECITY PLC: Reveals 2002 First-Quarter Results ------------------------------------------------ The company's first quarter results revealed Thursday a reduction in EBITDA loss, from GBP2.6 million in Q4 2001 to GBP1.8 million Q1 2002. The Manchester-based internet service provider posted cash position of GBP14.4 million cash balance showing cost base reduction of 21% from Q1 2001. Michael Hepher, Chairman and Chief Executive, said: "Customer inquiry levels have increased markedly in the first quarter. The sales pipeline is the healthiest seen since the market downturn a year ago and is expected to show results in terms of orders secured and growth in turnover. The Board remains optimistic that with a secure financial position, a more effective Sales and Marketing effort and an improving level of market activity, the progress currently being made towards achieving profitability and generating cash will continue." For a full version of the company's results, refer to: http://bankrupt.com/misc/1stquarter.pdf. For further information: TeleCity 020 7638 9571 Michael Hepher, Chairman and Chief Executive Martyn Ellis, Finance Director Citigate Dewe Rogerson 020 7638 9571 Sue Pemberton / Freida Davidson ************ 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, Larri-Nil Veloso and Maria Lourdes Reyes, Editors. Copyright 2001. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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