/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020528.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, May 28, 2002, Vol. 3, No. 104 Headlines * F I N L A N D * SONERA CORPORATION: Merger Plans Delay, to Complete in July * G E R M A N Y * CENIT AG: Software Group Names Pusch as Finance Director E.MULTI DIGITALE: Eurotip Contributed to Fall of Gaming Group EDEL MUSIC: Reveals Half-year Results 2001/2002 PHILIPP HOLZMANN: Heijmans Can Save Less That 1,000 Jobs TAURUS HOLDINGS: Holding Company on Brink of Insolvency - Report KIRCHMEDIA: Twenty-Eight Subsidiaries Begin Auction This Week * I T A L Y * BLU SPA: Communications Minister Urges Solution for Blu FIAT SPA: Banks Warn Debt Downgrade Unless Rescue Plan Braced * N E T H E R L A N D S * KPNQWEST NV: Appoints Administrators to Work on Restructuring KPNQWEST NV: Euronext Statement on Kpnqwest Listing Measure KPNQWEST NV: Five to Ten Parties Show Interest in Insolvent Firm LAURUS NV: Jelgersma Resigns From Supervisory Board VERSATEL: Signs Interconnection Agreement With Deutsche Telekom * S W I T Z E R L A N D * SULZER MEDICA: Plaintiff Requests Delay in Final Decision SWISSAIR GROUP: Administrator's Update on Insolvency Proceedings * U N I T E D K I N G D O M * ANTISOMA PLC: Research and Development Trading Update CONSIGNIA: Postal Service Group's Future in Government's Hands COLORVISION PLC: OFT Director General Makes Public Apology COLT TELECOM: Announces GBP 11MM Bond Buyback EQUITABLE LIFE: Policyholders Question Group's FSA Returns ITV DIGITAL: 400 Call Center Staff Hit by Restructuring Measures MARCONI PLC: In Talks to Secure GBP 200MM Deal With Ericsson ============= F I N L A N D ============= SONERA CORPORATION: Merger Plans Delay, to Complete in July ----------------------------------------------------------- The merger between Telia AB and Sonera Corporation -- http://www.sonera.fi/-- will not be completed before July, Finnish news group Svenska Dagbladet says, citing Tobias Lenner, Telia's investor relations manager. The report adds that the EU competition authorities need at least 40 days to inspect the deal. Lenner said, no documents regarding the plans have yet been submitted to the European Commission. If the EU decides not to clear the deal in order to implement a deeper investigation, the merger will be further delayed by another four months, the report says. ============= G E R M A N Y ============= CENIT AG: Software Group Names Pusch as Finance Director -------------------------------------------------------- As of June 1, 2002, Christian Pusch (41), will be appointed a Member of the Executive Board at Cenit Ag Systemhaus and will serve as the group's Financial Director. In the past years, Pusch has worked as manager for the company's international operations. Christian Pusch, born in 1960 in Berlin, began his career in 1987 working for Krone AG in Berlin, after graduating from the Technical University of Berlin. In 1994, as executive director of Thuringer Industriebeteiligungs GmbH, & Co. KG., he headed the development of CDA Datentrager Albrechts GmbH to become one of Europe's leading manufacturers of optical storage media. In the year 2001, he was appointed an executive officer for Trius AG, Friedrichsdorf, where he took the position of board chairman. Christian Pusch comments regarding his transfer to CENIT: "I am looking forward to the new challenge that my new position at CENIT AG, one of the leading systems houses in the e- engineering and e-business area." For inquiries, contact Fabian Rau of Cenit's Investor Relations by telephone: 0711 78 25-3185; e-mail: f.rau@cenit.de E.MULTI DIGITALE: Eurotip Contributed to Fall of Gaming Group ------------------------------------------------------------- Eurotip, which earlier this year acquired 30% stake in E.multi Digitale Dienste AG, the Ettlingen-based computer games group, is reported not to have met payment agreements, the Borsen-Zeitung and FT Information say. As a result, e.multi was forced to file for insolvency last week. E-Multi last posted a loss of EUR -8.65 million with turnover of around EUR4.5 million in 2001. Last month, the company estimated that the loss for 2001 would amount to at least half of the company's share capital of roughly EUR 3.7 million. e.multi shares, last quoted at EUR 0.32, were suspended last week upon news about the group's insolvency filing. The company is now merely valued at EUR 1.3 million. Contact Information: e.multi Digitale Dienste AG Marie-Curie-Str. 6 D-76275 Ettlingen Germany Telephone: + 49 (0) 72 43 / 76 50 Fax: + 49 (0) 72 43 / 76 54 32 Email: info@emulti.de EDEL MUSIC: Reveals Half-year Results 2001/2002 ----------------------------------------------- Edel Music AG -- www.edel.com --, the Hamburg-based music recording group, announced on May 24, the Edel group's consolidated result for its first six months in the financial year 2001/2002. The result shows a profit of EUR 107,8 million, which mainly comes into effect due to an extraordinary income from a waiver by creditors, which was already reported in February. When one-off effects are left out of account, the adjusted result shows a loss of EUR -11,0 million; adjusted earnings before interest and tax (EBIT) amount to EUR -8,1 million. Sales in the Edel group stood for EUR 91,5 million. The decrease in sales compared to the previous year s caused by the reduction of the group after the sale of Edel's participations in RED Distribution, Play It Again Sam (PIAS) and Eagle Rock Entertainment as well as the sale of parts of the Edel Publishing Division. Book losses arising from the disposals had already been accounted for in the financial statement for the abbreviated financial year 2001 and therefore do not affect the result for the first half of the financial year 2001/2002. The equity of the Edel music AG as single entity as at March 31st, 2002 is EUR 42,9 million. The consolidated equity of the edel group at this date is EUR 30,3 million. Contact Information: Corporate Communications Stefan Weikert Telephone: 040 / 890 85 218, Email: Stefan_Weikert@edel.com Investor Relations Barbel Tomas Telephone: 040 / 890 85 225, Email: Baerbel_Tomas@edel.com PHILIPP HOLZMANN: Heijmans Can Save Less That 1,000 Jobs -------------------------------------------------------- Heijmans Nederland B.V., Dutch construction group has announced that it can take on less than 1,000 employees from its insolvent German rival Philipp Holzmann, while the remaining Holzmann employees will be made redundant, the Financial Times Deutschland reports. Ottmar Hermann, the group's insolvency administrator said the Dutch group has already signed a statement of intent involving three of Philipp holzmann's units including Dutch subsidiary Dubbers Malden BV, Hanover-based Franki Grundbau GmbH, and Holzmann's branch in Grafenwohr near Munich. Holzmann has been in urgent need of financial injection in order to continue operations. As part of a management buy-out, Holzmann has already sold its software company subsidiary Geos. The group's other subsidiary, PH Ingenieurgesellschaft was forced to file for insolvency earlier after its parent company and another of the constuction group's unit, Imbau, did. TAURUS HOLDINGS: Holding Company on Brink of Insolvency - Report ---------------------------------------------------------------- Taurus Holding, KirchPayTV's main shareholder, is most likely to file for insolvency after two banks called in EUR750 million in credit to Kirch last week, Sueddeutsche Zeitung says. According to Josef Fuechsl, KirchPayTV's insolvency administrator, the paper reports the banks involved included Bayerische Landesbank Girozentrale and HypoVereinsbank. After BskyB's recent exercise of a put option to sell back to Taurus Holdings BskyB's 22% stake in KirchPayTV, Taurus refused because its creditor banks had to call in their loans first, the paper adds. KIRCHMEDIA: Twenty-Eight Subsidiaries Begin Auction This Week ------------------------------------------------------------- A total of some 50 parties have expressed interest in acquiring parts of the 28 subsidiaries of sports rights, film and TV broadcasting business KirchMedia, Handelsblatt sources said Sunday. Information regarding the insolvent media groups units for sale will be sent this week to interested parties reported to include top international media concerns and the big Hollywood studios, insiders said. Kirchmedia's reported creditors includes MGM, Walt Disney TV International, Columbia Tristar International Television, AOL- Time-Warner, Paramount and Fox are all Kirch creditors. Insiders say two of its creditors have presented serious bids. Insiders estimate that only 10-15 out of the fifty companies have sufficient financing power to take over core areas of Kirchmedia. According to the German paper, experts have also named German media groups Bauer, Burda, WAZ-Gruppe and the Holtzbrinck Group as the most likely bidders. KirchMedia's core units are estimated to be worth EUR4 billion. For German media groups, this is expected to be unmanageable without the backing of financial investors. In the global media industry, ten private equity companies have the capacity to take over the Kirch Group. Insiders say six of them have already expressed interest. KirchMedia now lies in the hands of insolvency administrator Michael Jaffe after the group collapsed under the weight of billions of euros of debt and other liabilities. KirchMedia's core businesses said to include film/sports rights and well as television broadcasters are reported to be kept preserved. Meanwhile, its other minor units including Technical Services, with subsidiaries such as Media Service, which operates call centers, are expected be sold off as quickly as possible. Bayerische Landesbank and Hypo-Vereinsbank, the two major creditors of Premiere, will decide on by June 5 whether to issue a bridging loan of "100 million euros plus X". ========= I T A L Y ========= BLU SPA: Communications Minister Urges Solution for Blu ------------------------------------------------------- Maurizio Gasparri, Italian Communications Minister, appealed to shareholders of Rome-based mobile phone network operator Blu SpA to come up with a solution that will save it from liquidiation, the Dow Jones Newswires said Friday. In a statement Friday, the Italian minister urged them to take into account European Union Competition Commissioner Mario Monti's position on the future of the group. "I am making a public appeal to Blu shareholders to respond to the position put forward by the European Commission and look at whether there are any feasible offers on the table," he said. Last Friday, Monti expressed opposition to a plan to sell off small pieces of Italy's mobile operator Blu, which has been up for sale since fall 2000. Monti favors that Blu's main shareholders, the Benetton family and U.K.'s BT Group PLC, might sell BLU's assets off in one chunk. Monti said in a statement earlier, "It is in the interest of consumers and of Blu's workforce that Blu remains as a viable concern." Gasparri believes that Blu is faced with the choice of either "technical liquidation," which is a forced breakup and sale of the company, or bankruptcy. FIAT SPA: Banks Warn Debt Downgrade Unless Rescue Plan Braced ------------------------------------------------------------- Creditor banks have warned Fiat SpA, the Turin-based auto manufacturing group, that its credit rating could be downgraded to junk bond status unless the group strengthens its restructuring plan. The report said that according to bankers, to avoid a downgrade by Moody's on Fiat's current long-term debt rating now at Baa2, a pledge to sell more assets and to fine-tune the financing of EUR 33 billion in bank loans and corporate bonds are required. A junk bond status can severely limit Fiat's financing options at a time when its main creditors have reached their lending limits with the group. Two weeks ago Fiat announced lay-offs and asset sales, including the partial sale of its Ferrari sports car unit after reporting a first-quarter net loss of US$476 million. Bankers fear that earlier efforts remain insufficient to avoid a downgrade. Executives from Banca di Roma, IntesaBCI and Sanpaolo IMI sought pledges from Fiat chairman Paolo Fresco and Paolo Cantarella, the group's chief executive to consider selling more assets and possibly seeking additional capital. Some bankers are after Fiat's sale of Toro, a mid-sized insurer worth an estimated EUR 3 billion, and FiatAvio, an aeronautics company worth around EUR 2 billion. Mr Fresco so far has ruled out selling Toro or FiatAvio after the failed merger of Toro combined with another Italian insurer. ===================== N E T H E R L A N D S ===================== KPNQWEST NV: Appoints Administrators to Work on Restructuring ------------------------------------------------------------- Following KPNQwest's -- http://www.kpnqwest.com/-- filing for a moratorium Friday, the group announced it has started discussions with court appointed administrators. The first focus of the administrators, E.T. Meijer and J.C. van Apeldoorn, will be to preserve the business as an ongoing entity and to continue discussions with potential strategic investors. The company continues to believe that there is substantial risk that there may be no underlying value to either its debt or equity securities. KPNQwest, a leading pan-European data communications and hosting company, delivers a full range of carrier and corporate networking solutions, hosting and Internet services across Europe with its Qwest global network. The company owns and operates the EuroRings, the fastest, most advanced fibre-optic backbone in Europe, which connects 60 cities, 14 of them with extensive Metropolitan Area Networks, and a network of 28 ultra-secure hosting facilities, the KPNQwest CyberCentres. For further information, please contact: Piers Schreiber Corporate Communications KPNQwest Telephone: +31 23 568 7612 Email: piers.schreiber@kpnqwest.com Jerry Yohananov Investor Relations KPNQwest Telephone: +31 23 568 7602 Email: jerry.yohananov@kpnqwest.com KPNQWEST NV: Euronext Statement on Kpnqwest Listing Measure ----------------------------------------------------------- In response to the listing measure imposed by Euronext Amsterdam on KPNQwest on May 24, 2002 and in inccordance to rule 5.3.2 and 5.3.3 of the ground rules for the AEX index, KPNQwest will remain a constituent of the AEX index for a maximum period of three months. If within this period, Euronext Amsterdam decides that KPNQwest should be removed from the AEX index, this will be announced at least three days in advance with reference to rule 5.3.3 on the ground rules for the AEX index. KPNQWEST NV: Five to Ten Parties Show Interest in Insolvent Firm --------------------------------------------------------------- Dutch data-communications company KPNQwest, which has filed for protection from creditors, is in talks with five to 10 firms interested in buying parts of its network, Reuter's industry source says. The source told Reuters, "There are between five and 10 companies that have signed non-disclosure agreements." During negotiations, interested companies sign such agreements to protect their proprietary data from being made public. After KPNQwest's banks declined to extend further credit and after its major shareholders abandoned KPNQwest, the group filed for protection from its creditors Thursday. Britain's Cable & Wireless and BT as well as AT&T and Verizon of the U.S. and Spain's Telefonica are among the groups interested to buy parts of KPNQwest, the Financial Times said last week. LAURUS NV: Jelgersma Resigns From Supervisory Board --------------------------------------------------- Mr. Eric Th.A.C. Albada Jelgersma, in his capacity as a member of the Laurus Supervisory Board, is not in favor of the proposed transaction between Laurus N.V., Casino S.A. and the banks as announced Wednesday.. He therefore has decided to resign from the Laurus Supervisory Board within immediate effect. The restructuring Dutch retail group Laurus NV has entered into a deal with French retailer Casino Guichard-Perrachon SA, which aims to take a 38.5% stake in the company. VERSATEL: Signs Interconnection Agreement With Deutsche Telekom --------------------------------------------------------------- Versatel Nederland B.V., the Amsterdam-based subsidiary of Versatel Telecom International N.V. -- http://www.investors.versatel.com--, announced Friday that it has signed an interconnection agreement with Deutsche Telekom AG, Bonn, Germany. This agreement will enable both companies to handle international data traffic quickly and cost efficiently. Consequently, this agreement allows Versatel to direct international calls through Deutsche Telekom's Telekom Global Net's (TGN) network, which is operated worldwide by T-Systems, its IT and telecommunications services division. Deutsche Telekom, in turn, gains access to the Versatel network for calls into the Benelux countries and to other destinations within the Versatel international network. Raj Raithatha, Chief Executive Officer of Versatel stated: "For both Versatel and Deutsche Telekom, the quality of our networks is of utmost importance for the delivery of high quality service to our customers. In Deutsche Telekom, we have found a reliable partner for our international voice services while the costs per routed call will be reduced." In order to create the technical prerequisites for this commercial agreement, Deutsche Telekom and Versatel have connected their networks at Deutsche Telekom's Point of Presence in Amsterdam. In May 2001, Versatel and Deutsche Telekom signed a framework agreement for the delivery of transmission capacity services in the Benelux. T-Systems, a division of the Deutsche Telekom Group, is Europe's second-largest integrated systems provider. By combining expertise in both information technology and telecommunications, it possesses the resources necessary to create true e-business and convergent solutions such as application service providing (ASP), customer relationship management (CRM) and electronic marketplaces. T-Systems currently has an estimated workforce of 42,000 in over 20 countries. The company is based in Frankfurt, Germany. Further information on the company and its service offering is available online at www.t-systems.com Versatel Nederland B.V. is part of Versatel Telecom International N.V. which is based in Amsterdam and is a competitive telecommunications network operator and a leading alternative to the former monopoly telecommunications carriers in our target market of the Benelux and Northwest Germany. Founded in October 1995, the Company holds full telecommunications licenses in The Netherlands, Belgium and Germany and has over 79,000 business customers and 1,267 employees. Versatel operates a facilities-based local access broadband network that uses the latest network technologies to provide business customers with high bandwidth voice, data and Internet services. Versatel is a publicly traded company on Euronext Amsterdam (symbol: VRSA) and the Nasdaq National Market (symbol: VRSAD). News and information are available at http://www.versatel.com. Contacts: Versatel Telecom International N.V. AJ Sauer Manager, Investor Relations and Corporate Development Telephone: +31-20-750-1231 Email: aj.sauer@versatel.nl Anoeska van Leeuwen Director Corporate Communications Telephone: +31-20-750-1322 Email: anoeska.vanleeuwen@versatel.nl T-Systems International GmbH Press and Public Relations Stefan Konig Hahnstrasse 43d 60528 Frankfurt am Main Germany Phone: +49 (0) 69 665 31-126 Fax: +49 (0) 69 665 31-139 Email: presse@t-systems.de ===================== S W I T Z E R L A N D ===================== SULZER MEDICA: Plaintiff Requests Delay in Final Decision ---------------------------------------------------------- Centerpulse, the former Sulzer Medica, and the class action plaintiffs have asked District Court Judge Kathleen O'Malley to extend the period for the company to reach a final decision on the settlement agreement and for acceptance of the opt-out rate until 5:00 p.m. EST on May 31, 2002. As of May 22, 2002, the total of 132 opt-out cases breaks down as follows: 32 patients who underwent revision surgery, 76 patients who had no revision surgery and 7 patients whose status has yet to be determined. Although the opt-out rate has been significantly reduced, thanks to intensive negotiations, Centerpulse will be able to further reduce the opt-out rate substantially if the extension is granted. Centerpulse's Board Wednesday gave the Executive Committee the green light to pursue the final negotiation phase. The company must be able to pinpoint the financial influence of each opt-out as closely as possible. Among the opt-out cases that do not involve patients who underwent revision surgery, there are 12 complex medical cases that must be studied in detail. "We want to be able to make our decision on as sound a basis as possible. This requires that we must further reduce the opt-out rate, as this will allow us to avoid the scenario of filling for Chapter 11," stated Centerpulse CEO Stephan Rietiker. "Our main goal remains the fair treatment of all affected patients." The company develops, produces, and distributes medical technology implants and biological materials for orthopedic and cardiovascular markets worldwide. The product array includes artificial joints, dental implants, spinal implants and instrumentation, trauma products, heart valves, synthetic blood vessels and stents for vascular and non- vascular obstructions. Media Inquiries: Sulzer Medica Corp. Communications Beatrice Tschanz Telephone: +41 (0)1 306 96 46 Fax: +41 (0)1 306 96 51 Mobile: +41 (0)79 407 08 78 Email: press-relations@sulzermedica.com Investor Relations: Anja Stubenrauch Telephone: +41 (0)1 306 98 25 Fax: +41 (0)1 306 98 31 Email: investor-relations@sulzermedica.com SWISSAIR GROUP: Administrator's Update on Insolvency Proceedings ---------------------------------------------------------------- The administrators of Swissair Group announced Thursday that the Administrator of Swissair Group, Mr Karl Wuthrich, of Wenger Plattner, and his team are working most intensively on preparations for the meetings of creditors of SAirGroup, SAirLines and Flightlease AG, scheduled for June 26, 2002 (SAirGroup) and June 27, 2002 (SAirLines and Flightlease AG). The preparatory work is proceeding according to plan. In particular, all claim registrations so far received for the three companies have been entered into the Administrator's database. To date, 14,976 creditors of SAirGroup have registered one or more claims. For SAirLines, the figure is 207 creditors and for Flightlease AG, 151 creditors. For further information, contact: Website of the administrator: www.sachwalter-swissair.ch Filippo T. Beck, Wenger Plattner Telephone: 01 914 27 70 Fax: 01 914 27 88 =========================== U N I T E D K I N G D O M =========================== ANTISOMA PLC: Research and Development Trading Update ----------------------------------------------------- Antisoma plc, the biopharmaceutical company focused on cancer, presented yesterday an overview to analysts and investors regarding three of its key development programs involving pemtumomab, DMXAA and targeted apoptosis. Pemtumomab Pemtumomab is a radiolabelled monoclonal antibody designed to treatintra-abdominal cancers, currently in Phase III studies for the treatment of ovarian cancer and Phase II studies for gastric cancer. Antisoma announces Monday that the planned recruitment target for the pilot Phase II study in the treatment of patients with advanced gastric cancer has now been met. It is expected that the initial data from this study will be reported in the third quarter of this year. Gastric cancer is the fourth most common cancer overall after lung, breast and colorectal. Targeted apoptosis Antisoma announce Monday a further strengthening of its targeted apoptosis program with the addition of a third enzyme, caspase. These enzymes are central to the activation of apoptosis, the natural mechanism of cell death which is absent in cancer cells. Antisoma is working with scientists at Imperial College on the targeted introduction of these potent enzymes to tumor cells. In vitro experiments have demonstrated that antibody-targeted caspase can target, bind to, and kill tumor cells. DMXAA Earlier this year Antisoma announced promising data on the combination of DMXAA with paclitaxel. Monday, further encouraging data on the combination of DMXAA with six other commonly used cancer drugs, including carboplatin and doxorubicin. Glyn Edwards, Antisoma's Chief Executive Officer commented: "With our financial position secured, today's (May 27) presentations will underline the breadth and depth of our portfolio and the strength of our external links. We are pleased to announce an important milestone with the achievement of our recruitment target for the pemtumomab pilot Phase II study in gastric cancer, and to present further evidence of the potential of our vascular targeting agent DMXAA in combination therapy." Contact Information: Glyn Edwards Chief Executive Officer Antisoma plc Telephone: +44 (0)20 8799 8200 Jonathan Birt/Ben Atwell Financial Dynamics Telephone: +44 (0)20 7831 3113 Mobile: +44 (0)7884 238952 CONSIGNIA: Postal Service Group's Future in Government's Hands -------------------------------------------------------------- Loss-making post operator Consignia will be forced to file for insolvency unless it can win government support, a report obtained from the BBC news said. Allan Leighton, Consignia's company chairman said, "We are losing money to such an extent that if we don't get comfort from the government technically we are trading insolvently," a source told the Observer newspaper. The government is believed to be full square behind Mr Leighton's proposed lay-off plans to affect 30,000 postal staff in an effort cut costs by GBP1.2 billion to achieve profitability by 2005. Consignia was expected last week reveal losses estimated at GBP1- 1.3 billion for last year, but has postponed the profits announcement until next month. Financial backing from the government will allow Consignia to implement its restructuring plans. However, the group has scrapped a GBP300 million plan to lay-off its vehicle fleet and IT operations, the Mail on Sunday reported. The group's union has resisted the Consignia's plan to implement the said restructring reported to involve the decommissioning of 40,000 vehicles to affect a workforce of 5,000. COLORVISION PLC: OFT Director General Makes Public Apology ---------------------------------------------------------- The Director General Of Fair Trading, Mr. John Vickers, has publicly announced on May 24, that he has unreservedly apologized to Neville and Bernard Michaelson for the misfortunes that they suffered as a result of the Office of Fair Trading's maladministration six and a half years ago. Mr Vickers also apologized for the adverse effects which the OFT's maladministration had on Neville and Bernard Michaelson, and the OFT has paid compensation to them totalling GBP4.73 million. Mr Vickers' apology follows the report by the Parliamentary Commissioner for Administration (parliamentary ombudsman) of March 30, 2001, which concluded that there was "substantial maladministration" by the Office of Fair Trading (OFT) under John Bridgeman, his predecessor as Director General of Fair Trading. The Parliamentary Ombudsman conducted a four-year investigation into the issue, in October 1995, of a Minded to Revoke notice, and then, in January 1996, revocation of the Consumer Credit licenses held by Colorvision Plc and its subsidiary companies. In his conclusion, the Parliamentary Ombudsman found that "the whole revocation process (was) so thoroughly compromised and unsound that it should have been abandoned" and that the OFT's faults were "fundamental and integral". He also found "substantial maladministration leading to injustice" for the Michaelsons. John Vickers said Friday: "I apologize unreservedly to the Michaelsons for the misfortunes which they have suffered as a result of OFT's maladministration six and a half years ago." Mr Vickers added: "The OFT now has reinforced its procedures to ensure that those taking license revocation decisions do so only on the basis of sound evidence." Neville and Bernard Michaelson said in a joint statement issued Friday: "We are delighted to be totally vindicated by the Parliamentary Ombudsman's report and welcome the unreserved public apology from Mr Vickers and the fundamental changes made by the OFT." "No amount of compensation can make up for the OFT's destruction of our business reputations and good names and of 32 years' work, for the damage to our health, for the inherent injustice of fighting for over five years to clear our names and for the devastating effects it has had on our lives and families. "We are indebted to the Parliamentary Ombudsman and his staff for their unrelenting work in seeking justice for us, to Lord Alton when he was a Member of Parliament, for helping us to initiate the investigation, and to Louise Ellman MP for her belief in our case and for her persistence in helping us to progress the matter during the period. "We particularly thank our good friend Alan Tinger, the former Managing Director of Colorvision, who has worked tirelessly with us for over six years to clear all our names and to put right a terrible miscarriage of justice and blight on all our lives. "Such was our conviction of the rectitude of our personal case that we put our detailed submission to the Ombudsman, provided ongoing information during the course of his inquiries, and concluded the outcome with the OFT, without using lawyers to represent us. "The Ombudsman has upheld the rights of individuals against the unfettered power of the Executive." Chronology of Events: 1) Neville and Bernard Michaelson founded the business in 1964 and incorporated Modern Domestics (Radio & Television Sales) Limited in 1965, as a private company. The Company joined the Unlisted Securities Market in 1987, becoming Colorvision Plc, and moved to a Full Listing on the London Stock Exchange in 1991. 2) By 1995 the Company was trading from over 90 outlets throughout the UK with over 700 employees and an annual turnover in excess of GBP70 million. 3) On October 13, 1995, the OFT issued, without just cause and with no prior consultation, an announcement to the Stock Exchange and in addition a press release, announcing the issue of a Minded to Revoke notice, in respect of Colorvision's Consumer Credit licenses. This had a devastating effect on the Company's trading, and was utilized by competitors as marketing material against Colorvision. 4) On November 3, 1995, Colorvision Plc submitted lengthy written representations to the OFT's Adjudicating Officer, which "effectively demolished the contents of that minded to revoke notice". On November 28, 1995, the Directors of Colorvision Plc similarly made oral representations to the OFT's Adjudicating Officer. 5) Notwithstanding the above representations, on January 26, 1996, the OFT issued a further press release announcing its decision to revoke Colorvision Plc's Consumer Credit licenses. This announcement and the adverse publicity that followed from it had a further devastating effect on the Company's trading. 6) Colorvision Plc immediately appealed against the revocation to the Secretary of State for Trade & Industry. 7) The effect on the Company's trading was so bad (notwithstanding that for the previous 32 years of its existence it had been profitable and cash positive every year) that it was unable to survive the appeal period. At a meeting with the OFT on March 28, 1996, representatives of the OFT (including their then Director of Consumer Affairs) outlined their demands, which would enable the Company to retain its Consumer Credit, licenses. These demands were, without any explanation or valid reason for Neville and Bernard Michaelson to resign from the Board, reduce their combined shareholdings in the Company to below 30% (from 66%) and for the Company to forgo its right to a Judicial Review. 8) On May 3, 1996, the OFT's demands were met (including the divesting of Colorvision shares for nil consideration as a purchaser could not be found), and a new Chairman and two non- executive Directors were duly appointed and a refinancing package put in place. 9) The devastating and extensive damage to the Company, caused by the OFT's actions, proved too deep-rooted and on July 31, 1996 Colorvision Plc was placed into Administrative Receivership. 10) The OFT compounded the devastating effects of their actions on Neville and Bernard Michaelson by blacklisting them from involvement in any business that held or wished to hold a Consumer Credit license. 11) On April 7, 1997, following several months of the then Member of Parliament, David Alton MP (now Lord Alton), communicating to no avail with John Bridgeman, the then Director General of Fair Trading, Neville and Bernard Michaelson, via David Alton MP, referred their complaint on the conduct of the OFT to the Parliamentary Ombudsman. Neville and Bernard Michaelson put a detailed case to the Parliamentary Ombudsman and communicated with him on it during the four-year period of his investigation. 12) On March 30, 2001, the Parliamentary Ombudsman issued his Report to the then Member of Parliament, Louise Ellman MP, who had taken over the case in June 1996 on David Alton MP's retirement from the House of Commons. 13) In a damning report the Parliamentary Ombudsman made numerous findings of maladministration against the OFT, leading to injustices for Neville and Bernard Michaelson. In addition, the Report criticizes the Management of the OFT, and goes as far as to say that some of the breaches were: "so serious and in one particular, if not intentional, fundamental, that I am unable to accept the proposition that they had no relevance to the adjudicating officer's decision". The Parliamentary Ombudsman found that: "OFT's faults were neither trivial nor merely technical; they were fundamental and integral to the issue of the Minded to Revoke notices and the whole revocation process." 14) Between April 2001 and May 2002, Neville and Bernard Michaelson communicated with the Director General of Fair Trading, John Vickers, the outcome being the Director General's unreserved public apology and agreement to pay compensation. 15) In addition, the OFT have made eleven fundamental procedural changes to ensure that no such miscarriage of justice can happen again. For further information, contact: Paul Desmond / David Foxman Tavistock Communications Telephone: 020 7600 2288 COLT TELECOM: Announces GBP 11MM Bond Buyback --------------------------------------------- COLT Telecom Group Plc -- http://www.colt-telecom.com/--, the leading European provider of business communication services, said on May 24 that it had purchased a further GBP11 Million of COLT bonds for a cash outlay of GBP6 Million. The purchases were undertaken by COLT Telecom Finance Limited as set out below. COLT Telecom Finance Limited has no intention to sell the notes it has purchased and arrangements may be made in due course to cancel such notes. COLT may purchase additional bonds in the future. The following bonds have been purchased: 1. US$5.0 Million accreted principal amount of our US$314 Million 12% Senior Discount Notes due December 2006; 2. EUR1.0 Million face amount of our EUR306.8 Million 7.625% Senior Notes due July 2008; 3. EUR4.5 Million face amount of our EUR320 Million 7.625% Senior Notes due December 2009; 4. EUR7.0 Million accreted principal amount of our EUR402.5 Million 2% Senior Convertible Notes due April 2007. In aggregate COLT has now purchased: 1. US$52.3 Million accreted principal amount of our US$314 Million 12% Senior Discount Notes due December 2006; 2. GBP3.0 Million face amount of our GBP50 Million 10.125% Senior Notes due November 2007; 3. EUR4.5 Million face amount of our EUR76.7 Million 8.875% Senior Notes due November 2007; 4. EUR42.5 Million face amount of our EUR306.8 Million 7.625% Senior Notes due July 2008; 5. EUR37.3 Million face amount of our EUR320 Million 7.625% Senior Notes due December 2009; 6. EUR16.8 Million accreted principal amount of our EUR306.8 Million 2% Senior Convertible Notes due August 2005; 7. EUR84.8 Million accreted principal amount of our EUR295 Million 2% Senior Convertible Notes due March 2006; 8. EUR65.4 Million accreted principal amount of our EUR368 Million 2% Senior Convertible Notes due December 2006; and 9. EUR92.4 Million accreted principal amount of our EUR402.5 Million 2% Senior Convertible Notes due April 2007. For further information, contact: John Doherty Director Investor Relations Email: jdoherty@colt-telecom.com Telephone: +44 20 7390 3681 EQUITABLE LIFE: Policyholders Question Group's FSA Returns ---------------------------------------------------------- Equitable Life policyholders accused The Equitable Life Assurance Society -- http://www.equitable.co.uk-- of giving voting members a hard time to acquire solvency details while members were in the process of voting for the group's board candidates, the Scotsman reports. For the year ending December, the mutual's statutory return to the Financial Services Authority (FSA) revealed that Equitable used GBP500 million of future profits to make the group appear to exceed the FSA's minimum funding requirement. Equitable would have shown GBP66 million above the FSA's minimum funding requirement without the use of the said futures that according to analysts, conceals Equitable's "thin" solvency position. Following an FSA consultation with the insurance industry, the strategy which is currently legal, is expected to be changed. Equitable Life Members Action Group chairman Paul Braithwaite, an independent candidate attempting to get voted on to Equitable's board's AGM Monday, admits policyholders made numerous requests for documents from the mutual life insurance group since April. Braithwaite said: "When we asked for this document, which was supposed to be in the public domain, we got nothing but excuses. It only came out [Friday] because we kept pushing media to help get it. The result was that it was not available to most members casting ballots for board candidates before Monday's AGM. Chairman Vanni Treves stands for re-election with two new non- executive board candidates and three independent candidates, the report adds. Postal ballots for those of Equitable's 450,000 members not attending the AGM were due Saturday. "Members had all of the financial information they needed to cast their votes. The FSA returns are public documents but they are highly complex and would be incomprehensible to many policyholders. "We always said that we would make the returns available to everyone at the same time from Companies House, whose responsibility it is to publish them. This is what we have done," an Equitable spokesperson explained. After assuring policyholders weeks earlier that the group's compromise deal had removed "uncertainty" from the fund, chairman Vanni Treves and chief executive Charles Thomson renewed fears on the firm's financial health after admitting last month solvency margins were "relatively thin". ITV DIGITAL: 400 Call Center Staff Hit by Restructuring Measures ---------------------------------------------------------------- Deloitte & Touche, the administrators of collapsed satellite TV group ITV Digital, announced that 400 employees at its call center in Plymouth would lose their jobs. Last month, hundreds of call center workers in Pembroke, west Wales, were already laid off. In a deal reported to be worth over GBP1 million, ITV Digital revealed it has sold its customer base consisting of 1.2 million subscribers' to rival cable operator NTL Incorporated. MARCONI PLC: In Talks to Secure GBP 200MM Deal With Ericsson ------------------------------------------------------------ Marconi plc -- http://www.marconi.com--, the telecommunications equipment maker, is negotiating a GBP200 million deal with Telefonaktiebolaget LM Ericsson -- http://www.ericsson.com. Scheduled to be concluded early next month, the deal could prove critical to Marconi's talks with its creditors, which have the power to force the company into administration. Though both companies refused to comment, according to a Sunday report from the Independent, Marconi is understood to provide Ericsson with a technology called DWDM that is used in the development of high-speed telecoms networks. Under the deal, Ericsson will re-sell the technology to its customers, which include BT and Telefonica. Originally, Ericsson planned to develop its own DWDM offering, but the Stockholm-based company wound up its research and development team this month as part of its cost-cutting measures. Analysts predict a huge market for DWDM, which allows high-speed data transmission along optical fibre networks, as it will be used in the roll-out of third-generation mobile networks, the report adds. ************ 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. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *