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/raid1/www/Hosts/bankrupt/TCREUR_Public/020607.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, June 07, 2002, Vol. 3, No. 112 Headlines * F I N L A N D * SONERA CORPORATION: Will Post Interim 1H Report on July 25 * F R A N C E * RHODIA SA: Agrees to Sell Acetate Business to Acetex Corporation * G E R M A N Y * FAIRCHILD DORNIER: Bombardier Denies Conducting Due Diligence FLENDER-WERFT: Costly Shipbuilding Projects Cause Bankruptcy KIRCHMEDIA: Still Bidding for Bundesliga in Spite of Insolvency KIRCHMEDIA: Shareholders Abandon EUR800 Million Capital Hike NEUR MAXHUTTE: To Be Liquidated This Year, Says Administrator SCHMIDTBANK GMBH: To Close 49 Branches as Part of Restructuring TEAMWORK INFORMATION: Insolvency Plan Filed on June 5 * I T A L Y * FIAT SPA: Two Other Big Banks to Take Part in Financing Efforts FIAT SPA: New Models Released Only to Recover Cost, Says Chief FIAT SPA: Car-making Division to Cut Production Costs by 5-10% * P O L A N D * ELEKTRIM SA: Additional Information on Initial Agreement NETIA HOLDINGS: Signs Parnership Pact With Telefonia & Elektrim * R U S S I A * TV6: To Hold EGM on June 23 to Appoint New General Director * S P A I N * AVANZIT SA: Full-blown Bankruptcy Looms as Debts Exceed Assets JAZZTEL PLC: Believes France Telecom Will Pursue Merger Plans QUIERO TV: Stops Collecting Fees as It Prepares to Close Shop * S W E D E N * CELLPOINT SYSTEMS: Parent Completes Restructuring of Swedish Unit LM ERICSSON: Supports MMS Launch From Telecom Italia Mobile LM ERICSSON: Will Provide Commercial Service in U.K. * U N I T E D K I N G D O M * ABK LIMITED: Appliances, IT Rental Services up for Sale ENERGIS PLC: Bidders Finalize Offer, But Bondholders Hold Key GENERAL TRADING: Retailer in Administration, up for Sale JOHN LUSTY: Receivers Sell Group, Other Units as Going Concern MARCONI PLC: Announces Deal to Supply Equipment to Ericsson PACE MICRO: Finland Selects Pace as Set-top Box Supplier SSI SYSTEMS: Administrators Sell Business With GBP 2MM Turnover TILT MANUFACTURING: Administrators Sell Business as Going Concern BEGBIES TRAYNOR: Sells Unnamed Recruitment Firm as Going Concern KROLL, BUCHLER, PHILLIPS: Sells Steel and Aluminium Manufacturer ============= F I N L A N D ============= SONERA CORPORATION: Will Post Interim 1H Report on July 25 ---------------------------------------------------------- Sonera Corporation -- http://www.sonera.fi-- and Telia AB -- http://www.telia.se--, which announced their plan to merge, have agreed to report on their financial performance for the second quarter on the same day, Sonera said Wednesday. Hence, Sonera will publish its interim report for January - June 2002 on Thursday, July 25, i.e., a week later than earlier announced. Sonera Corporation, with headquarters in Helsinki, is a leading provider of mobile and advanced telecommunications services. Sonera is growing as an operator, as well as a provider of transaction and content services in Finland and in selected international markets. The company also offers advanced data solutions to businesses, and fixed network voice services in Finland and neighboring markets. In 2001, Sonera's revenues totaled EUR 2.2 billion, and profit before extraordinary items and taxes was EUR 0.45 billion. Sonera employs about 9,000 people. Contact Information: Sonera Corporation Samppa Seppala Vice President Investor Relations Telephone: +358 2040 63416 Email: samppa.seppala@sonera.com =========== F R A N C E =========== RHODIA SA: Agrees to Sell Acetate Business to Acetex Corporation ---------------------------------------------------------------- SA Rhodia, the chemicals group based in Cedex, France, announced in its statement to the press Wednesday that it signed a letter of intent to sell to Acetex DerivativesCorporation, a subsidiary of Acetex Chimie, its polyvinyl acetate business and all acetic acid derivative activities. Both parties plan to finalize complete the transaction by the end of June 2002. This sale is in accordance with Rhodia's strategy to divest non core activity businesses: Polyvinyl acetate (Food grade), a key raw material for chewing gum base, is not a core technology for the Rhodia Food which focuses its activities to ingredients (texturants, lactic cultures and phosphate salts) servicing Rhodia Food three core markets: dairy, prepared food and meat. This divestment is consistent with Rhodia's commitment to divest assets which can be valued, without destroying shareholder value, and which do not fit into Rhodia's business model based on the cross-fertilization of technologies and high added-value solutions to its customers. Rhodia, one of the world's leading manufacturers of specialty chemicals, is committed to the principles of sustainable development. Providing a wide range of innovative products and services to the automotive, healthcare, food, cosmetics, apparel, new technology and environmental markets, Rhodia offers its customers tailor- made solutions based on the cross-fertilization of technologies, people and expertise. Rhodia generated net sales of EUR 7.2 billion in 2001 and employs 27,000 people worldwide. Rhodia is listed on the Paris and New York stock exchanges. Acetex is a Canadian-based global chemical company which is the second largest producer of acetyls in Europe. Acetex's common shares are listed for trading under the symbol "ATX" on The Toronto Stock Exchange. Contact Information: Press Relations Jean-Christophe Huertas Telephone: 33-1 55 38 42 51 Lucia Dumas Telephone: 33-1 55 38 45 48 Investor Relations Marie-Christine Aulagnon Telephone: 33-1 55 38 43 01 Angelina Palus Telephone: 33-1 55 38 42 99 ============= G E R M A N Y ============= FAIRCHILD DORNIER: Bombardier Denies Conducting Due Diligence ------------------------------------------------------------- Bombardier President and CEO Robert Brown admits that Fairchild Dornier's 728 and 928 jet models can complement its line, but cautioned against speculations that it is moving in with a bid. Speaking after the Canadian aircraft-maker's annual meeting, Mr. Brown confirmed that its technical evaluation of the two projects had turned in positive results. "In the short term, the chances are positive, but there is much work to do and we are far from a decision," he told reporters. Fairchild has said that it needs US$1 billion to complete the models. The 728 jet can seat about 70 to 85, while the 928 model is being built to accommodate 80 to 100 passengers. Although Bombardier has its own 70- to 100-seater project in the works, Mr. Brown was impressed by the two Fairchild models, which seat passengers five abreast. His company's planes only seat passengers four abreast. The Bombardier chief says he will still consult with partners and customers whether they see a future for the Fairchild aircrafts, before deciding to invest. Citing Handelsblatt, Troubled Company Reporter-Europe said yesterday that Bombardier could only make a bid for the German plane-maker in July when formal insolvency proceedings start. FLENDER-WERFT: Costly Shipbuilding Projects Cause Bankruptcy ------------------------------------------------------------ German shipbuilder Flender-Werft filed for insolvency recently, claiming heavy losses incurred during the construction of two large ships, the Superfast XI and Superfast XII. The two ships were ordered by Greek yard Superfast Ferries, a subsidiary of Attica Enterprises, according to Frankfurter Allgemeine Zeitung/FT Information. The company reported turnover of EUR141 million in 2000. Its present financial footing is not known, as it has not published results since two years ago, says the paper. For more information, visit the company's Web site: http://www.flender-werft.de/english/index.html KIRCHMEDIA: Still Bidding for Bundesliga in Spite of Insolvency --------------------------------------------------------------- Insolvency is not stopping KirchMedia from bidding for the screening rights to the Bundesliga, Germany's premier soccer league. "We are in highly constructive talks with the German soccer authorities and have made a fair offer that was very well received," KirchMedia's sports rights head Alexander Liegl told Handelsblatt recently. The executive says KirchMedia plans to set up a new project company within the Kirch Sport unit to market the rights to next season's games. He says the company considers the TV rights strategic and profitable, explaining its keen interest despite its present financial footing. Mr. Liegl says Kirch Sport will be part of the new Kirch Media that will emerge from post-insolvency. He says there are plans to add to the business of the Kirch Sport, which could mean incorporating parts of Kirch Media unit Plazamedia. KIRCHMEDIA: Shareholders Abandon EUR800 Million Capital Hike ------------------------------------------------------------ Unconfirmed reports say that investors of KirchMedia have rejected the capital hike proposed for the erstwhile core business of KirchGruppe. According to Suddeutsche Zeitung, the EUR800 million capital increase has been abandoned by shareholders after allegedly concluding that the business is beyond repair. Earlier reports have identified these investors as News Corp., Italian media group Mediaset and German retail group Rewe. The German daily says creditor banks, on the other hand, are willing to discuss a bridging loan for Premiere World, the loss- making pay-TV platform believed to be the main reason for the collapse of the Kirch empire. This because the unit only requires a cash injection of EUR100 million, the report says. NEUR MAXHUTTE: To Be Liquidated This Year, Says Administrator ------------------------------------------------------------- Another Bavarian company has been added to Germany's 40,000 insolvencies this year. Leading eastern German steel plant Neue Maxhutte can no longer be rescued, hence will be liquidated, reports Handelsblatt. Jobst Wellensiek, administrator for the plant's parent company Maxhutte AG, which has been insolvent since 1998, says the search for an investor to resuscitate the unit has been fruitless -- so, too, efforts to restore the plant to long-term financial health without outsiders' help. About 750 jobs will be lost when the company is liquidated within the year, says the German daily. The plant operates in the town of Sulzbach-Rosenburg. The report says Maxhutte's tubes unit, which was rescued from insolvency in 2000 by Bavarian entrepreneur Max Eicher and his Lech-Stahlwerke GmbH, will not be affected by the move. The demise of Neue Maxhutte follows that of Fairchild Dornier and the Kirch group of companies, which are based in the state of Bavaria. This series of corporate collapse is expected to affect the candidacy of state Premier Edmund Stoiber, who is challenging incumbent Gerhard Schroder for the country's top post. Already many are beginning to doubt the ability of Mr. Stoiber, who is an economist, to lead the company into financial recovery. But Mr. Stoiber point out that the woes of Maxhutte was the fault of the European Commission, which blocked a plan to privatize the business sometime in the '80s. He said Karel Van Miert, the competition commissioner at the time, was to blame for the company's present troubles. SCHMIDTBANK GMBH: To Close 49 Branches as Part of Restructuring --------------------------------------------------------------- Troubled German lender SchmidtBank GmbH is closing 49 of its 120 branches in Bavaria, Saxony and Thuringia, affecting the cities of Munich and Dresden and small towns like Altenburg and Bamberg. German daily Financial Times Deutschland says the move is part of the company's restructuring plan, after nearly succumbing to bankruptcy last year under the weight of EUR1.3 billion losses. Administrator Paul Wieandt and the supervisory board hopes to break even by 2005. According to a March issue of the Troubled Company Reporter- Europe, the rescue plan foresees splitting the bank's activities into two parts: Loans that entail risks will be settled and the performing core business will be maintained. Mr. Wieandt has said that the part subject to settlement involves 1,200 business clients. The administrator believes maintaining the core business will require substantial cost-cutting measures, pointing to a loss of EUR30 million in 2001, excluding one-off effects. During his interview in March, the administrator said between 50 and 60 of the 140 branches of the bank will be closed and 750 to 850 of 2000 jobs will be cut. However, it will maintain its presence in northern Bavaria, Saxony and Thuringia. He expects credit volume to rise steadily to EUR3 billion, with the number of private and business clients to reach 340,000 and corporate clients to 5,000 in three years. TEAMWORK INFORMATION: Insolvency Plan Filed on June 5 --------------------------------------------------- The receiver of teamwork information management AG, lawyer Dr. Frank Kebekus of Dusseldorf, submitted the insolvency plan to the corresponding District Court of Paderborn on Wednesday. This development comes after the successful completion of the first capital increase from EUR 872,646 to EUR 1,745,292 as part of the company's resctructuring. teamwork AGs creditors will be invited to a meeting at the end of June/start of July 2002 by the District Court in order to decide on the insolvency plan. The receiver expects that this creditors' meeting will approve the reported restructuring plan which will be finally and conclusively ratified by the Paderborn District Court at the end of June/beginning of July 2002. Subsequently, the second capital increased for the group's restructuring is planned for July/start of August 2002. 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. The services offered by teamwork AG include consulting, development, implementation, support and training. Today, more than a thousand companies use the solutions of the teamwork group in Germany and the UK. Contact Information: Heinz Ikenmeyer Telephone: +49 (0)5251-5201-120 Email: hikenmeyer@teamwork.de ========= I T A L Y ========= FIAT SPA: Two Other Big Banks to Take Part in Financing Efforts --------------------------------------------------------------- Italy's second-largest bank UniCredito Italiano and Banca Nazionale del Lavoro are expected to join a group of banks working on a debt-restructuring plan for Fiat SpA. According to the Financial Times, the entry of the two banks will boost the chances of Fiat avoiding a credit downgrade that will make it harder for the gasping group to get financing. Such a move will also increase its interest bill. The paper says UniCredito's participation would not alter the plan, but would spread the credit risk better among Italy's largest banks, all of which have reached their lending limits with Fiat. Under the plan, the company must cut its debts by EUR3 billion this year or risk diluting its equity through a rights issue, which the creditor banks can exercise in the event that debt targets are missed. At the moment, these banks include Banca di Roma, IntesaBCI, and Sanpaolo IMI. In exchange for this option, the banks will provide a EUR3 billion bridge loan to help the company refinance its short-term obligations. Ratings agencies are expected to decide over the next few days whether to downgrade Fiat's debt to junk bond status, says the Financial Times. Meanwhile, the paper says many analysts expect Fiat Auto to record second-quarter losses of between EUR300 million and EUR400 million because of the continued slide of its European car sales. Recently the company reported first-quarter losses of EUR429 million. Fiat's top executives were expected to meet with union leaders this week to review plans to cut 3,000 jobs and temporarily lay off 10,000 workers, the paper says. FIAT SPA: New Models Released Only to Recover Cost, Says Chief -------------------------------------------------------------- Fiat Auto CEO Giancarlo Boschetti is not expecting money from its two recently launched Lancia car models -- he just wants to recover the cost of developing them, says the Financial Times. Speaking to reporters during the launch in Turin recently, Mr. Boschetti said he expects sales of only 30,000 units a year. The Thesis model, which is meant to compete with BMW's and Mercedes- Benz's larger models, will account for 25,000 of the sales, while Phedra will take care of the rest. With this projection, the Financial Times says break-even is impossible. The cars will start appearing in dealers' showroom by September. Mr. Boschetti, who vowed to save EUR600 million this year to reverse his unit's dismal first-quarter performance, was still with Fiat's truck making division Iveco when the two models were developed. By the time he was transferred to Fiat Auto in December, it was too late to cancel the Thesis and Phedra, says the paper. Lancia, a venerated brand name in Italy, has never made money for the group since it saved the small company from bankruptcy in 1969, the report says. FIAT SPA: Car-making Division to Cut Production Costs by 5-10% -------------------------------------------------------------- Fiat Auto chief Giancarlo Boschetti is still optimistic that the company will break even next year and reach profitability by 2004, despite the unit's huge first-quarter losses. In an interview with cable news channel CNN recently, Mr. Boschetti said production costs will have to be cut by at least five percent and possibly as much as 10% to reach said goals. "The situation is not exactly brilliant. To have improvement we need drastic change and that is what we have done," he told CNN. The car division recently launched two new models from its luxury Lancia marque. The chief said his unit expects to capture 10 percent of the European car market by 2004 from about nine percent this year. Mr. Boschetti does not see any possibility that his group will soon be shipped to General Motors, which already owns 20% of the auto division. He also denied that there is a move towards this end, as had been reported by several media outfit. He, however, admitted that any decision will be up to the shareholders, particularly the influential Agnelli family. Last month, Fiat Chairman Paolo Fresco said the automaker expects to realize EUR2 billion in synergies from its alliance with General Motors. So far, Fiat Auto has said the synergies total EUR272 million. Mr. Boschetti told CNN that Fiat and GM would share 50% of their platforms in 2005 and 90% by 2007 and confirmed reports that the company will launch 20 new models in 2004. =========== P O L A N D =========== ELEKTRIM SA: Additional Information on Initial Agreement -------------------------------------------------------- In addition to the initial agreement with bondholders and BRE Bank SA dated June 4, 2002, the telecom and power conglomerate adds: - The price of Bonds redeemed with the initial payment will be at 111.3% as provided for in the existing terms and conditions of Exchangeable Bonds for that date. Thereafter, the redemption price will accrete at 11.25% per annum until June 15, 2003, next, at the rate of 13.75% for the period from June 15, 2003 to December 15, 2003, if by June 15, 2003 a pledge is established on the shares of PAK S.A held by Elektrim S.A. or at the rate of 15.5%, if such a pledge is not established, for the period from December 15, 2003 at the rate of 15.50%, if by that date a pledge is established on the shares of PAK S.A held by Elektrim S.A. or at 16.25%, if such a pledge is not e established. NETIA HOLDINGS: Signs Parnership Pact With Telefonia & Elektrim --------------------------------------------------------------- Netia Holdings S.A. -- http://www.netia.pl--, Poland's largest alternative fixed-line telecommunications services provider, Wednesday announced that it has signed a framework co-operation agreement with Telefonia Dialog S.A. and Elektrim Telekomunikacja Sp. z o.o., two other Polish telecommunications companies. In this agreement, the parties expressed an interest in mutual co-operation in the use of owned infrastructure, development of telecom services and the improvement of the Polish telecom regulatory environment. In order to implement the agreed upon co-operation, Netia, Telefonia Dialog S.A. and Elektrim Telekomunikacja Sp. z o.o. will enter into additional detailed agreements. The framework agreement signed today complements the steps taken previously by Netia and these two companies furthering the development of the Polish telecom market. In February 2002, the parties established the Telecom Operators Section at the National Economic Chamber of Electronics and Telecommunications as a platform for conducting coordinated actions. Contact Information: Anna Kuchnio Investor Relations Netia Holdings SA, Poland Telephone: +48-22-330-2061 Jolanta Ciesielska Media Netia Holdings SA, Poland Telephone: +48-22-330-2061 Jeff Zelkowitz Taylor Rafferty, London Telephone: +44-(0)20-7936-0400 Andrew Saunders Taylor Rafferty, New York Telephone: 212-889-4350 =========== R U S S I A =========== TV6: To Hold EGM on June 23 to Appoint New General Director ----------------------------------------------------------- Moscow Independent Broadcasting Corporation, which is currently undergoing liquidation proceedings, has discharged Yevgeniy Kiselyov as General Director in accordance with its charter. Chairman Pavel Chernovalov, who was appointed to the post recently by the liquidation committee, told RosBusinessConsulting early this week that he will act as the General Director in the meantime. He says the company will hold an extraordinary general shareholders' meeting on June 23 to elect a new General Director. The chairman says it was necessary to strip Mr. Kiselyov of the post because the corporation's charter does not stipulate the combination of the General Director's position with that of Editor-in-Chief of the TVC television station. Meanwhile, there's still no word whether or not the Press Ministry will reinstate the corporation's broadcasting license for its TV-6 channel. Although Media-Socium has won the bidding for the broadcasting rights, the company remains technically the holder of the license, says The Center for Journalism in Extreme Situations in its April 8-14, 2002 report. The company was forced into liquidation via a suit filed by pension fund Lukoil-Garant, one of its shareholders. Moscow Arbitration Court ordered the firm liquidated on November 26, 2001. A court bailiff ruling on January 21, 2002 suspended the company's license "until a liquidation commission is appointed." The Moscow Registration Chamber on April 10 agreed on the list of 121 commission members and approved the powers of its chairman Pavel Chernovalov. Mr. Chernovalov had recently told Kommersant newspaper that the company "is not especially optimistic" about the reinstatement of the license but would like to have a definitive response, even negative. "We would like to know the arguments the Press Ministry will advance in rejecting the application and if they are not convincing we will appeal the ruling in court," he said. Mr. Chernovalov doesn't know when the liquidation will end. It is understood, however, that once the company's debts will exceed assets, the liquidation commission will have to ask the Higher Arbitration Court to declare the company bankrupt. ========= S P A I N ========= AVANZIT SA: Full-blown Bankruptcy Looms as Debts Exceed Assets -------------------------------------------------------------- Banco Santander Central Hispano SA has allegedly urged Spanish electrical work contractor Avanzit SA to sell its Telson production unit to meet its obligations. AFX News says the bank, one of the company's creditors owed some EUR286 million, has reportedly turned down an offer to take on equity in the firm. Spanish daily La Gaceta recently said that the company's receivership last week would likely be upgraded to formal bankruptcy, as it does not have sufficient assets to sell to satisfy its debts. Early this week, Troubled Company Reporter-Europe revealed that the firm's subsidiary Avanzit Telecom SLU was also included in the receivership petition last week. Just last month the company disclosed that it had secured a syndicated loan from Banco Santander Central Hispano SA to restructure its debts. Last week, however, reports surfaced that the situation at Avanzit had gotten worse and that absent a pact with banks in the short-term can force it into bankruptcy. In its latest profitability analysis on the company, Wright Investor's Service noted that the profit margin of the company has gone down below the level achieved in 2000, when the company gained 7.1% on sales. In 2001, earnings before extraordinary items were at (negative) - EUR52.85 million, or -11.5% on sales. "The company's return on equity in 2001 was -18.1%. This was significantly worse than the already high 60.8% return the company achieved in 2000," Wright said. For the 52 weeks ending May 24, 2002, the company's stock shed a total of 74% to EUR3.29, losing 47.1% during the last 13 weeks. The company has not paid dividends the last six fiscal years. The company currently employs 3,611, with sales of EUR459.60 million (US$426.71 million). It has operations in Portugal, Morocco, Mexico, Guatemala, El Salvador, Argentina, Chile, Peru, Brazil and Jamaica. The company's market capitalization is EUR102.15 million (US$94.84 million). The capitalization of the floating stock (i.e., that which is not closely held) is EUR53.05 million (US$49.25 million), Wright said. JAZZTEL PLC: Believes France Telecom Will Pursue Merger Plans ------------------------------------------------------------- Jazztel Plc Chairman Martin Varsavsky is confident France Telecom will revive merger talks with the company once its debt-for- equity swap is completed, says AFX News. The company is seeking 75% approval from bondholders for the plan to restructure some EUR676 million debts, composed of high- yielding bonds. Mr. Varsavsky believes his company will be an attractive merger target after this transaction. The chairman says the current management team will remain and the stock will continue to trade on Spain's Nuevo Mercado after the completion of the swap. He also says that he will remain Jazztel's main shareholder with a 20% stake. The company's ADRs were delisted from Nasdaq at the end of last month, the paper says. Jazztel operates as an alternative fixed-line phone company in Spain. QUIERO TV: Stops Collecting Fees as It Prepares to Close Shop ------------------------------------------------------------- Insolvent Spanish terrestrial pay-TV network Quiero TV will gradually cut programming before finally taken off the air, says Expansion. The report says the network's holding company Auna decided to stop broadcasting last week. Effective June 1, the company suspended collection of fees and decoder rental charges from its nearly 80,000 customers. Expansion says shareholders of Quiero TV are already preparing a redundancy plan for 200 employees. The network had initially intended to return its broadcasting license to the Spanish government, which refused. The company is now looking for a settlement with creditors in order to avoid insolvency, the report says. =========== S W E D E N =========== CELLPOINT SYSTEMS: Parent Completes Restructuring of Swedish Unit ----------------------------------------------------------------- CellPoint Inc. -- www.cellpoint.com --, a global provider of mobile location software technology and platforms, announces the Company has entered into a purchase agreement with the trustee for its former Swedish subsidiary, CellPoint Systems AB. All assets will be purchased through the Company's new Swedish subsidiary, CellPoint AB, CellPoint Inc. announced to the media Wednesday. The Company formed a new wholly-owned subsidiary, hiring the key personnel from its former subsidiary and is acquiring all assets from the bankruptcy trustee in an all cash deal. "The acquisition of our assets in conjunction with the retention of all key personnel ensures that CellPoint's customers and partners will continue to get the unparalleled technology solutions and customer service that CellPoint has always delivered," said Stephen Childs, President and CEO of CellPoint. CellPoint Inc. began negotiations with the trustee to complete the reconstruction of CellPoint Systems AB under the Swedish Bankruptcy Law instead of under the Swedish Reconstruction Act. After what the Company had termed to be a formal error by a court in Stockholm that put the subsidiary into bankruptcy, CellPoint was forced to forgo the formal composition it had entered into willingly. The end result proved to be more cost effective and allowed the Swedish subsidiary to emerge from bankruptcy more quickly and at a lower cost than through the formal composition the Company chose to pursue. With the bankruptcy matter solved, CellPoint will now proceed with the first tranches of funding through institutional investors in Switzerland and Sweden. The long-term funding plan is structured to allow CellPoint to receive funds as needed, in accordance with CellPoint's growth and strategic plan, with the goal to minimize stockholder dilution throughout this process. "This was the final stage of a comprehensive internal financial restructuring over the past year, and CellPoint emerges with a much-improved balance sheet that will allow us to continue our focus on commercial business opportunities and strategic partnerships," added Childs. The post-restructuring balance sheet shows a significant increase in equity since the quarter ended December 31, 2001 as a direct result of the Company's financial restructuring and litigation work during this calendar year. CellPoint Inc. is a global provider of location determination technology, carrier-class middleware and applications enabling mobile network operators rapid deployment of revenue generating location-based services for consumer and business users and to address mobile E911/E112 security requirements. CellPoint's two core products, Mobile Location System (MLS) and Mobile Location Broker (MLB), provide an open standard platform adapted for multi-vendor networks with secure integration of third-party applications and content. CellPoint's location platform has a seamless migration path to GPRS and 3G, supports 500,000 location requests per hour and can easily be scaled-up to handle increased traffic throughput. CellPoint's early entry and experience with European mobile operators has allowed the development of products and features that address key requirements such as active and idle mode positioning, international roaming, multiple location determination technologies and consumer privacy. CellPoint(TM) and CellPoint Systems(TM) are trademarks of CellPoint Inc. CellPoint is a global company headquartered in Kista, Sweden. For information, please Email: Investor Relations at investinfo@cellpoint.com LM ERICSSON: Supports MMS Launch From Telecom Italia Mobile ----------------------------------------------------------- Earlier this year, Ericsson won a contract from Telecom Italia Mobile to supply Multimedia Messaging infrastructure. MMS services was launched in Italy in late May, the Stockholm-based wireless infrastructure equipment manufacturer announced Wednesday. Ericsson provides the network infrastructure to support MMS. TIM is the first mobile operator in Italy to launch MMS to its 24 million subscribers. With the Ericsson MMS Solution, TIM will repeat the great success of SMS with the addition of features like color pictures, animations, audio samples and video clips. MMS promises a dramatic increase in messaging capabilities that will enrich user experience and create a major new source of revenue. Ericsson -- http://www.ericsson.com/press-- provides mobile and broadband internet communications services to over 140 countries. Contact Information: Kathy Egan Communications Ericsson Inc. Telephone: 212/685-4030 Email: pressrelations@ericsson.com Glenn Sapadin Investor Relations Ericsson Inc. Telephone: 212/685-4030 LM ERICSSON: Will Provide Commercial Service in U.K. ---------------------------------------------------- Telefonaktiebolaget LM Ericsson and BT are to roll out the Ericsson ENGINE Integral network across the U.K. following a successful initial phase of national deployment. The introduction of ENGINE Integral in a "hybrid" configuration is the latest phase in BT and Ericsson's Next-Generation System (NGS) program, and part of a GBP270 million frame agreement signed in 1999, Telefonaktiebolaget Ericsson's statement announced Wednesday. The deployment is part of the ongoing evolution of BT's next-generation network. ENGINE Integral will form the core of BT's, multi-service packet trunk network and will provide additional capacity to cope with rapid traffic growth from new and existing services, offered by both BT and its wholesale customers. Following the success of this initial phase the ENGINE Integral solution has now achieved formal product acceptance and is ready for network-wide deployment. The network will also include Ericsson's network management system providing integrated, standards-based management of the ENGINE Integral network. The first multi-service switches were deployed in London, Ilford and Reading in England, and Glasgow in Scotland. Each of these four switches already handles 30 to 40 million voice calls each week. BT and Ericsson are planning to deploy another 19 multi-service switches before the end of 2002. Once in full service, ENGINE Integral will carry over 50 per cent of BT's total trunk network traffic. The Engine Integral solution represents an important part of the Ericsson Engine Softswitch Solution Program. "We are extremely pleased with the outcome of the initial phase of this project. This is a major step in the phased development of what we believe is a world-leading Next Generation Network," said Richard Newman, General Manager of Planning and Delivery of Network Transport at BT Wholesale. "For Ericsson, this is a real showcase for the ENGINE Integral solution because the units are operating in what is one of the toughest environments worldwide. The nationwide roll-out will make BT's trunk network state-of-the-art and future-proof, " said Thomas Eriksson, Head of the ENGINE Core program at Ericsson. BT and Ericsson's NGS partner program started in 1999 with the migration of BT's backbone to the ENGINE multi-service network. Since then, the two companies have been working in close partnership to design, integrate and roll out BT's next- generation multi-service trunk network. Ericsson is shaping the future of Mobile and Broadband Internet communication through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world. ENGINE Integral is a proven Softswitch solution in commercial service in numerous networks worldwide. ENGINE Integral provides a low risk, rapid evolution from existing circuit-switched networks to packet-based multi-service networks to a single, all- IP network. 'Greenfield' operators who want to build a carrier- class, multi-service network right from the start can also utilize ENGINE Integral. In contrast to existing networks that are dedicated to a specific application (such as telephony or data), a multi-service network employs a common switching and transport layer that can be shared by numerous services and applications - videoconferences, phone calls or Internet sessions - one network does it all. ENGINE Integral supports all existing PSTN/ISDN services, with full IN support, while meeting real-time QoS and reliability needs. This ensures a solid foundation for protecting existing revenues. In addition, ENGINE Integral provides numerous other services based on its ATM, IP, Frame Relay, MPLS and X.25 capabilities, such as IP-VPN and leased line provisioning. The ENGINE Integral components include a full-blown management system, telephony servers, edge and core nodes, narrowband and broadband dual-use access nodes and a comprehensive service offering. For further information, please contact: Peter Olofsson Director Public Relations Ericsson Corporate Communications Telephone: +46 8 719 1880 / +46 70 267 3445 Email: peter.olofsson@lme.ericsson.se Paula Wagstaff Communications Director Ericsson North Western Europe Telephone: +44 1444 234354 / +44 7836 204543 Email: paula.wagstaff@etl.ericsson.se =========================== U N I T E D K I N G D O M =========================== ABK LIMITED: Appliances, IT Rental Services up for Sale ------------------------------------------------------- Upon the instructions of Mr A Poxon and Mr J Titley of DTE -- http://www.dtegroup.com/-- as joint administrators of ABK Limited and Education Rewards Limited, the joint administrators posted on the Insolvency UK Web site and the Financial Times the the sale of these companies: ABK Limited is a supplier of home appliances, while Education Rewards Limited is an IT rental services business serving the educational sector. Operating out of leasehold premises in the North West of England, these companies are long established providers of services to Educational establishments, with around 9500 units located at approximately 2,000 sites throughout the UK. Consolidated turnover is circa GBP7.5 million per annum. The companies could be acquired separately if required. For further information please contact: SHM Smith Hodgkinson 27 York Place Leeds LS1 2EY Telephone: 0113 245 4242 Fax: 0113 245 4244 Email: leeds@shm.co.uk SHM Smith Hodgkinson is a commercial, agricultural and leisure property consultanting company. The group also provides plant and machinery valuation and auction services. ENERGIS PLC: Bidders Finalize Offer, But Bondholders Hold Key ------------------------------------------------------------- Bondholders hold the key to the success of any negotiations to turnaround Energis Plc, says The Deal in an analysis early this week. The virtual paper said the offers made by Permira Advisers Ltd. and that of partners, The Carlyle Group and Apax Partners, will amount to nothing if not backed by bondholders. The Deal expects bondholders to commence talks with any of the two potential bidders who can dangle GBP50 million, the present market value of the notes, which had a face value of GBP500 million when issued. "Bondholders will attempt to push up their compensation from any private equity buyer as high as possible," The Deal says. Analysts believe the minimum bid submitted by the two buyers this week amounted to GBP700 million. At this level, the bids are good enough to get the support of creditor banks, which are owed the same amount. Although, they are holding parallel talks with management over a debt-for-equity swap, the banks are expected to be happy with the bids. "The banks will be content if the deal makes what they're owed secure. Then it's a question of dealing with the bondholders," one source privy to the situation at Energis told The Deal. After all these demands are met, buyers must provide at least GBP50 million to keep the business going. Total additional investments after satisfying creditors' demands could exceed GBP100 million, says the paper. "In doing this deal, there will be a desire to demonstrate that the company has enough money to see it through to profitability or at least to an exit route for the private equity firms," The Deal says. The company was forced to auction its main UK business, perceived to be the only profitable unit, early this year after warning that it might breach banking covenants. According to The Deal, the company owes creditors about GBP1.2 billion. Just like other alternative telecom operators, the company suffers from huge overcapacity in the market after borrowing heavily to build its network. The company first got into serious trouble in January after its earnings fell below levels agreed with lenders. The company tried to raise cash by selling some European operations, but this proved unsuccessful. In May, the company closed Ision Internet AG, a German Web-hosting company that it bought in 2001 for EUR1 billion (US$938 million). Energis peaked at the market in 2001 with a value of GBP14 billion. Today, it is worth just below GBP50 million. Goldman, Sachs & Co. and Dresdner Kleinwort Wasserstein are advising Energis on the auction and the talks with bondholders, says The Deal. GENERAL TRADING: Retailer in Administration, up for Sale -------------------------------------------------------- The joint administrative receivers of General Trading Stores Limited, Robert Pick and Tony Flynn of Grant Thornton posted on the Insolvency UK Website and the Financial Times the sale of the business and assets of General Trading. General Trading Stores Limited, with trading name "Music & Video Exchange", is a profitable retailer of specialist second hand goods, including records, CDs, computer games, clothes, books, videos and DVDs. Main features of the business include: - Business well established in it specialist sector - Turnover in excess of o6m - Trades from 18 rented shops - 16 shops located in London (13 Notting Hill Gate, Camden, Soho and Greenwich) - Other shops in Birmingham and Plymouth - Approximately 150 employees with specialist sector knowledge For further details, please contact: Robert Pick and Tony Flynn Grant Thornton Grant Thornton House Melton Street, Euston Square London NW1 2EP Telephone/Fax: 0870 991 2434 JOHN LUSTY: Receivers Sell Group, Other Units as Going Concern -------------------------------------------------------------- The Joint administrative receivers, William Tacon and Alan Lovett, offer for sale as a going concern the business and assets of: John Lusty Group Plc Trustin the Foodfinders Ltd Home Farm Foods Ltd Ryne Quality Confectionery Ltd According to the administrative receiver's announcement posted on the Insolvency UK Web site in May, key features of the food importer and distributorship business include: - Group turnover (circa) GBP50 million per annum - Distributors of agents for leading international branded products - Ownership of several retail brands including "Lusty" and "Langdale" - Customers include all leading supermarkets, wholesalers and specialist retailers - Based in Ely, near Cambridge For further information, please contact: Rob Schofield or Pratish Sthankiya Ernst & Young LLP One Colmore Row Birmingham B3 2DB Telephone: 0121 535 2938 Fax: 0121 535 2448 MARCONI PLC: Announces Deal to Supply Equipment to Ericsson ----------------------------------------------------------- Marconi announced Wednesday that it has signed an expanded agreement with Ericsson to source Marconi's broad range of Dense Wavelength Division Multiplexing (DWDM) next-generation optical networking equipment, and also encompassing the companies' well- established agreement on synchronous digital hierarchy (SDH) equipment. The new agreement is effective immediately and creates an important new route to market for Marconi's next-generation optical equipment. The agreement represents a natural progression in the companies' existing co-operation within optical products, building on their successful 1995 partnership in SDH technology. The expanded agreement ensures integrated, end- to-end optical network solutions for Ericsson's mobile and fixed multi-service customers around the world, as well as a smooth evolution path to the intelligent DWDM networks of the future while leveraging customers' original SDH investments. Ericsson will also provide comprehensive global services to its optical network customers, including network management solutions developed in-house. Mike Parton, Marconi's chief executive officer, said: "Today, success in the global telecommunications industry is characterised by strong existing customer relationships and best in class technology. Marconi has best in class DWDM technology and Ericsson, like Marconi, has solid customer relationships with the world's leading operators. "Our very successful partnership with Ericsson over the last six years has created a strong foundation on which to expand our future market strategy for Marconi DWDM. This agreement provides substantial benefits to Marconi. It will also provide Ericsson with a strong technology proposition to enable their customers to evolve their optical networks." The Agreement will be subject to regulatory review where required. Dense Wavelength Division Multiplexing (DWDM) is a network transmission technology that transmits large volumes of multiple network traffic types (voice, data, video, etc.) across networks at very high speed. DWDM uses multiple lasers and transmits several wavelengths of light (lamdas) simultaneously over a single optical fibre. DWDM enables the speed and capacity of existing fibre networks to be increased dramatically. DWDM systems can support more than 150 wavelengths at one time, each carrying up to 10 Gbps. Such systems provide over 1 terabit per second of data transmission on one optical strand, which is thinner than a human hair. Synchronous Digital Hierarchy (SDH) is the incumbent optical network technology that is currently evolving to become more data-ready. This evolution involves efficient transport of Ethernet, ATM and other data formats, achieving a more flexible, data-agile SDH infrastructure. The Marconi/Ericsson relationship began in 1995 when the two companies signed a co-marketing agreement. This was followed by a further agreement in 1999 in which Marconi's SDH portfolio became a key element of the fibre-optic backbone of Ericsson's mobile and broadband networks. The strength of Ericsson's global market presence with fixed and mobile customers will provide a wider customer base for Marconi's already successful DWDM product portfolio. The agreement encompasses DWDM to offer manifold increases in bandwidth and to leverage the existing fibre infrastructure, including Optical Cross Connects (OXCs) to switch multiple terabit data streams. Marconi plc is a global telecommunications equipment and solutions company headquartered in London. The company's core business is the provision of innovative and reliable optical networks, broadband routing and switching and broadband access technologies and services. The company's aim is to help fixed and mobile telecommunications operators worldwide reduce costs and increase revenues. The company's customer base includes many of the world's largest telecommunications operators. The company is listed on both the London Stock Exchange and Nasdaq under the symbol MONI. Additional information about Marconi can be found at www.marconi.com. Contact Information: Marconi plc Joe Kelly Public Relations Telephone: +44 (0) 207 306 1771 Email: joe.Kelly@marconi.com Jim Blew, Public Relations Telephone: +1 (724) 742-7745 Email: james.blew@marconi.com Heather Green Investor Relations Telephone: + 44 (0) 207 306 1735 Email: heather.green@marconi.com PACE MICRO: Finland Selects Pace as Set-top Box Supplier -------------------------------------------------------- Pace Micro Technology plc -- http://www.pace.co.uk-- has been selected for Finland's first broadband interactive TV service using DSL technology, Pace's statement to the press said Wednesday, June 5. Working with Elisa Communications, the largest telecommunications operator in Finland, and content provider Maxisat, Finland's leading digital broadband TV services company, Pace will supply its DSL4000 home gateway (set-top box) for the service which will include multichannel TV and Internet access. Elisa Communications' broadband network combined with innovative content from Maxisat will create innovative interactive services, using Pace's technology. Elisa's network covers the Helsinki Metropolitan Area and several other bigger cities in Finland, which covers a quarter of Finland's population. The service will offer an alternative way of delivering content into consumer homes by using copper and fiber telephone lines in Helsinki, rather than by cable or satellite platforms. Subscribers will initially receive 12 Finnish channels (delivered using MPEG 2 over IP) and Internet access, either via their TV sets or via PCs. Future plans include more channels plus PVR functionality, video- on-demand (VOD) and games. The DSL4000 is Pace's fourth generation IPTV home gateway and the latest version enables telecom service providers and IP broadband network operators to deliver highly interactive services in cost effective volume deployments. Pace has tailored its product with Maxisat especially for the Finnish market. Most importantly, the advantages of the DSL4000's ability to support multiple languages, with subtitles and teletext in Finnish, Swedish and English will be used. Andrew Clifforth, managing director of Pace's IPTV Division commented, "This is an important step for Pace, increasing its penetration of the Scandinavian market. There are over 10 million TV households, high wealth but only 16% Digital TV penetration. "This region has so far been under-served by the digital TV operators and is currently dominated by satellite. There is a great future for TV over IP as the national telephony infrastructure is highly developed. "In the Finnish market alone several telecommunications players are reviewing their strategy for IP deployment. Elisa Communications and Maxisat are the first partnership in Finland to realize the potential of TV over IP, others will follow. We are delighted to have been selected as the CPE provider in this rollout and will continue to work closely with both companies to provide innovative IP solutions as the service expands." Mr. Timo Simula, head of new generation services, Elisa Communications added, "This is a very exciting rollout for Elisa. We are using Pace's DSL4000 as it represents the most solid, standards-based, highly featured home gateway available today." The DSL4000 digital home gateway features video on demand, broadcast TV and broadcast PPV (Pay-Per-View)/subscription TV, and an integrated "TV-friendly" Web browser. A standards-based system, the DSL4000 connects to any IP network that presents an Ethernet interface, offering a wide variety of industry standard video encoder and video server platforms. Other features of the DSL4000 include video scaling and positioning (picture in Web page capability); increased control of video functions using Javascript and RTSP (Real Time Streaming Protocol); and the ability to minimize network management costs by multicasting software downloads to any or all set-top-boxes in a deployment. Pace Micro Technology plc is a pioneer of digital technology for the home and has helped build the global market for pay television services. Using this expertise, Pace is evolving the set-top box into a sophisticated home gateway to enable revenue-generating services for TV and the networked home. In this networked home, the Pace home gateway is the portal for entertainment and interactive communications around the home and with the outside world. Pace analog and digital technology has been installed in over 13 million homes worldwide since it was founded in 1982. The company is now actively involved in all digital platforms -- satellite, terrestrial, cable and IP -- through relationships with broadcasters, network operators and technology partners in the U.K., U.S., Europe, Latin America, Australasia and the Far East. These achievements were made possible through the commitment of Pace's 1,000 strong workforce, over a third of whom are research and development engineers, dedicated to the development of digital technology for the home and small and home office markets. Pace's head office is in Shipley West Yorkshire, with further offices in Bracknell, Cambridge, the USA and Hong Kong. The company's shares are traded on the London Stock Exchange (PIC). Pace's U.S. operations are based in Boca Raton, Florida. Contact Information: Sir Michael Bett Chairman Malcolm M. Miller CEO John Dyson Finance Director Victoria Road Saltaire, Shipley West Yorkshire BD18 3LF United Kingdom Telephone: +44-1274-532-000 Fax: +44-1274-532-010 SSI SYSTEMS: Administrators Sell Business With GBP 2MM Turnover --------------------------------------------------------------- Julie A Heggarty and Michael F Stevenson, the joint administrators of SSI Systems & Solutions Ltd -- http://www.ssi.co.uk-- offer for sale the business and assets of SSI Systems & Solutions Limited. Main features of the business include: - 95% coverage of fire services - Support to local authorities - Specialist, highly skilled staff - Joint software development with police - Good quality leasehold premises in Pewsey, Wiltshire - Turnover approximately GBP2 million SSI develop specialist software and systems and combine industry- leading hardware to deliver a broad range of innovative, interoperable and totally integrated solutions. The IT group specializes in Geographical Information Systems (GIS), Computer Aided Design (CAD), Document & Property Management and Mobile Solutions. For more details, contact: Julie Heggarty or Sandy Arthur Smith & Williamson Old Library Chambers 21 Chipper Lane Salisbury Wiltshire SP1 1BG Telephone: 01722 411881 Fax: 01722 434836 E-mail: aja@smith.williamson.co.uk TILT MANUFACTURING: Administrators Sell Business as Going Concern ----------------------------------------------------------------- The Joint Administrators Julie Heggarty and Michael Stevenson offer for sale the business and assets of Tilt Manufacturing Limited, the said administrators published on the Insolvency UK website and Financial Times in May. The business and assets are for sale as a going concern. - Paper converters to the food trade - Turnover approximately GBP2 million - Skilled workforce of 17 employees - Suitable plant and equipment - A freehold premises (to be vacated) For details, contact: Julie Heggarty/Sandy Arthur Smith & Williamson Old Library Chambers 21 Chipper Lane Salisbury Wiltshire SP1 1BG Telephone: 01772 411881 Fax: 01772 434836 Email: jahi@smith.williamson.co.uk Smith & Williamson -- http://www.smith.williamson.co.uk/-- is an independent professional and financial services group providing investment management, financial advisory and accountancy services to private clients, professional practices and mid-size corporations. BEGBIES TRAYNOR: Sells Unnamed Recruitment Firm as Going Concern -------------------------------------------------------------- The Liquidator, Ian Walker, offers for sale as a going concern the business and assets of a long established recruitment business in the South West, a notice posted on the Insolvency UK site said on Tuesday, May 28. Key features of the business include: - 10 branches across the South West - Turnover GBP14 million (circa) - Gross profit margin 27% (circa) - Expert recruitment in niche markets to local, national and international client base - Specialists in supplying permanent, contract and support staff to commercial, industrial and skilled sectors For further information, please contact: Ian Walker or Moira Fitzpatrick Begbies Traynor Balliol House Southernhay Gardens Exeter EX1 1NP Telephone: 01392 260800 Fax: 01392 260801 Email: exeter@begbies-traynor.com Begbies Traynor -- http://www.begbies-traynor.com/-- assists companies, creditors, financial institutions and individuals on all aspects of financial restructuring and corporate recovery. KROLL, BUCHLER, PHILLIPS: Sells Steel and Aluminium Manufacturer ------------------------------------------------------------- Joanne Wright and John Kelly, the Joint Administrators of the above company, offer for sale their business and assets as a going concern, the administrators announced on the Insolvency UK Financial Times in May. The major assets of the business comprise: - Historic turnover circa GBP2 million per annum with a strong customer base - Leasehold site of approximately 25,000 sq ft with excellent communication links - Highly skilled and experienced work force - Blue chip customer base - Strong forward order book - Appropriate welding accreditation - QA Systems ISO 1992 For further information and a sales brochure, please contact: Joanne Wright or Margaret McDougall Kroll Buchler Phillips Aspect Court 4 Temple Row Birmingham B2 5HG Telephone: 0121 212 4999 Fax: 0121 212 4944 Email: mhobbs@buchler-phillips.co.uk Kroll Buchler Phillips -- http://www.krollbuchlerphillips.co.uk/ -- is an independent global risk consulting company serving the United Kingdom and Continental Europe. The group's spectrum of services focuses exclusively on: business turnaround and restructuring; corporate recovery and insolvency; personal insolvency and business reviews. *********** 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. 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