/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020621.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 21, 2002, Vol. 3, No. 122 Headlines * B E L G I U M * GIB SA: Postpones Liquidation Vote Until Later This Year * F R A N C E * GENSET SA: Secures U.S. Patent Application on Fluorescent Probes GENSET SA: Biotech Company Announces Suspension of Trading * G E R M A N Y * ADS SYSTEM: IT Network Services Group Files for Insolvency CARGOLIFTER AG: Secures EUR 4.15MM Credit Facility From State DEUTSCHE TELEKOM: VoiceStream Key to Debt Reduction Success DEUTSCHE TELEKOM: Cuts Ties With France Telecom, Sells 1.8% Stake H5B5 MEDIA: German TV, Film Producer Petitions for Insolvency KIRCHMEDIA: Axel Springer, Heinrich Bauer Confirm Bid for Firm MOBILCOM AG: Takeover Imminent as France Telecom, Banks Seal Deal PHILIPP HOLZMANN: Two-year Suit v. Deutsche Bank Still Unresolved RTV FAMILY: Credit Line Ends Temporary Liquidity Crisis * I T A L Y * FIAT SPA: General Motors Only Interested in Fidis, for Now * N E T H E R L A N D S * KPNQWEST NV: Creditors Snub Paltry EUR100 Million Offer for Ebone KPNQWEST NV: Bondholders Urge U.S., Dutch Watchdogs to Probe Fall LAURUS NV: Complete Rejection of Claims by Jelgersman, Deminor VERSATEL TELECOM: Case Summary & 20 Largest Unsecured Creditors * S P A I N * JAZZTEL PLC: S&P Put Jazztel on CreditWatch Negative * S W E D E N * FRAMFAB: Concludes Agreement With Knowledge Foundation SONG NETWORKS: Tele Danmark Wins SEK20MM Order With Song Networks * U N I T E D K I N G D O M * BEDE PLC: Reveals 2002 Q1 Results With GBP 0.27MM Pre-Tax Loss COLT TELECOM: Communications Group Announces GBP 2MM Bond Buyback CONSIGNIA: Post Office Saves British Travellers GBP 10MM CLUBHAUS PLC: Rebel Shareholders Want Their Man in Boardroom P&O PRINCESS: Cruise Operator's Reply to DTI Announcement RAILTRACK PLC: Will Burn GBP 3BB More in the Next Five Years RAILTRACK PLC: Postpones Re-listing Partly Due to World Cup SSL INTERNATIONAL: Healthcare Maker Launches New Durex Products TELEWEST COMMUNICATIONS: Bondholders Reject Liberty Tender Offer TELEWEST COMMUNICATIONS: Burdick's 40,000-pound Payout Not Bonus TELEWEST COMMUNICATIONS: Bondholders Pick UBS Warburg as Adviser ============= B E L G I U M ============= GIB SA: Postpones Liquidation Vote Until Later This Year -------------------------------------------------------- Management of Belgian holding company GIB SA postponed Wednesday a vote to liquidate the company during its annual meeting, a move seen by analysts as a sign that it is looking for a much better deal. Officially, the vote was postponed because a required audit was not yet complete. "We were a little ambitious about the time required to prepare the audit. [It] will be finished during the summer months and management will meet in September to decide on a new date for the vote," GIB spokesman Emmanuel de Brouwer told Dow Jones Newswires. The company said the liquidation would begin before the end of 2002. Analysts suspect the postponement could be actually due to the ongoing negotiations concerning GIB's self-service restaurant chain Lunch Garden. In addition, the improving prospects for fast-food label Quick Restaurants SA could also be a reason. "It looks like management is telling shareholders, we're busy with these talks, let's get this done before we go to liquidation," Delta Lloyd Securities analyst Gert De Mesure told Dow Jones Newswires in an interview. Last month, Belgian caterer Carestel said it could be interested in acquiring Lunch Garden. "We've done our homework and we see a great potential for synergy," Carestel CEO Luc Van Milders was quoted by Dow Jones Newswires as saying. Meanwhile, the encouraging first-quarter sales figure McDonald's released recently has made analysts believe that the fast-food industry is finally recovering from the impact of mad cow disease. "This is good news for Quick, who will benefit from the sector's upturn," Mr. De Mesure told the newswire. Quick Restaurants reported an operating loss of EUR2.4 million in 2001. "If GIB goes ahead with its liquidation before selling off Lunch Garden, Quick and its other remaining operations, it would need a second round of liquidation to distribute the cash to shareholders," Dow Jones Newswires said citing analysts. Once Belgium's leading retailer until it sold off its supermarket unit GB to France's Carrefour SA in July 2000, GIB is now about to close shop. In all, it has sold off four profitable divisions: Auto 5; apparel store, Inno; stationary shop Club and do-it-yourself unit Brico Belgium. The EU cleared Wednesday the sale of Brico Belgium to Dutch-based Vendex KBB. =========== F R A N C E =========== GENSET SA: Secures U.S. Patent Application on Fluorescent Probes ----------------------------------------------------------------- Genset S.A. announced Monday that the U.S. Patent and Trademark Office has allowed a U.S. patent application related to fluorescent probes used in multicolor fluorescent in situ hybridization methods (FISH) and principally in chromosomal painting. These methods have become an important component of research and diagnosis, and facilitate the discovery and analysis of complex genetic rearrangements in human cellular proliferations. In particular, chromosomal painting is essential in the study of solid tumors to precisely define highly complex chromosomal abnormalities responsible for cancer development. Genset's invention covers probes production technique and multicolor FISH methods that allow usage of these probes in research and diagnosis. Marc Vasseur, CEO and Chairman of Genset, commented: "Researchers at Genset have successfully used this innovative technology to identify complex chromosomal rearrangements in prostate cancer cell lines, leukemia patients and patients with constitutional chromosomal abnormalities. "This technology has helped our scientists in the establishment of SNP maps and in the discovery of important genes. These results have been presented at several scientific conferences and have been published already in two journals: "Genes Chromosomes and Cancer" in 2001 and "Leukemia". Marc Vasseur added: "Given that Genset's research programs are focused on Central Nervous System and metabolic diseases, we are prepared to license the access to this FISH technology to third parties that could put this intellectual property to successful use in diagnostics of chromosomal rearrangements." Genset is a genomics-based biotechnology company focused on generating a pipeline of drug targets and drug candidates in the areas of CNS and metabolic disorders. GENSET SA: Biotech Company Announces Suspension of Trading ---------------------------------------------------------- In response to recent unusual market activity in its stock, Genset suspended trading of its stock and OCEANEs on Euronext Wednesday, June 19, 2002. Genset also intends to request a suspension of trading of its American Depositary Shares (ADSs) on Nasdaq. In addition, Genset announced that it is engaged in preliminary discussions concerning a possible major strategic transaction. No assurance can be given, however, that the discussions will be completed or, if completed, concerning the final terms of the transaction. Due to the high level of uncertainty concerning this matter, Genset does not intend to make any further comment or announcement regarding the discussions unless and until the discussions have reached a later stage or are terminated. The Company expects to be in a position to make a further announcement in the next several days. Contact Information: Marc Vasseur Chairman & CEO Telephone: +331 55 04 59 00 ============= G E R M A N Y ============= ADS SYSTEM: IT Network Services Group Files for Insolvency ---------------------------------------------------------- After evaluating the financial situation Tuesday, the board of Argyrakis Dein System AG (ADS) filed for insolvency (drohende Zahlungsunfaehigkeit) at the local insolvency court of Bad Homburg on June 19, 2002. The board and the preliminary insolvency administrator, Dr. Georg Bernsau, Frankfurt expect business to continue normal operations. All business relationships are continued without any disturbance, including projects and service contracts. ADS' principal activity is the provision of networking services ranging from planning and implementation, through to training, maintenance and other networking services. CARGOLIFTER AG: Secures EUR 4.15MM Credit Facility From State ------------------------------------------------------------- Cargolifter AG, a German insolvent airship maker recently received a EUR4.15 million loan from the State of Brandenburg, a report obtained from the AFX News said Wednesday. Papers reported that the company, which filed for insolvency earlier this month, disclosed that the loan would help secure its liquidity and operations in the next two months. This will also give Cargolifter's insolvency administrator to thoroughly examine the firm's health. DEUTSCHE TELEKOM: VoiceStream Key to Debt Reduction Success ----------------------------------------------------------- U.S. mobile phone subsidiary VoiceStream could make or break the future of Deutsche Telecom. According to the Wall Street Journal, the only way the German telecom behemoth can successfully slice its debt and reverse the downward slide of its shares is the realization of VoiceStreams alleged limitless potentials. Deutsche Telecom, Europe's largest phone company in terms of revenues, bought VoiceStream last year at a hefty price of EUR33 billion. CEO Ron Sommer projected the unit to become the group's cash cow and No.1 subsidiary. But he spoke too soon. Mr. Sommer is now under fire as the company's stocks continue to drop, breaking the symbolical EUR10 level last week. In a country where IPOs only became vogue in the 1990s and triggered by the company's public offering in 1997, a slump of this proportion has much bigger implications. The Wall Street Journal says many Germans, some 3 million of them ordinary shareholders of Deutsche Telecom, have become disillusioned, associating the company with the false hopes of the 1990s bull market. The paper believes this growing discontent could spoil the group's attempt to lower its EUR67 billion of debts. One of the key pillars of the debt reduction plan drafted by Mr. Sommer is floating T-Mobile, which controls VoiceStream. Of the EUR17 billion the company wants to slice off its debt-pile, EUR10 billion will come from this IPO. "Without the IPO, originally scheduled for this year, Deutsche Telekom can't pay down its more than EUR67 billion in debt. And without debt reduction, the reasoning goes the company's shares will never recover," the Wall Street Journal says. "Unless [Mr. Sommer] can convince the market that VoiceStream has potential, an IPO is unlikely to draw anywhere near Mr. Sommer's goal," the paper adds. The problem is: VoiceStream is the smallest player in the U.S. market currently caught up in a price war. The paper says a consolidation between larger rivals AT&T Wireless, Cingular Wireless and Verizon Communications could further undermine VoiceStream's position. The group claims the subsidiary is performing well within expectations. In the first quarter, the unit posted earnings before interest taxes and depreciation of US$64 million. But the paper says VoiceStream could not be expected to contribute more, with wireless-subscriber growth in the U.S. expected to total only 5% this year. Heavy capital expenditures on its "notoriously patchy network" also undercut its margins. "So far, Mr. Sommer has rejected calls for VoiceStream to participate in what analysts view as sorely needed consolidation in the U.S. wireless sector, saying Deutsche Telekom isn't willing to play second fiddle. "While consolidation might give VoiceStream a short term boost, in the longer term it would suffer by not being able to match the scale of its competitors," the Wall Street Journal says. Whatever the case, ultimately wherever VoiceStream goes, there would also be Deutsche Telekom. DEUTSCHE TELEKOM: Cuts Ties With France Telecom, Sells 1.8% Stake ----------------------------------------------------------------- In another move to whittle down its debts, Deutsche Telecom sold its 1.8% stake in France Telecom to a financial intermediary for EUR300 million, Total Telecom said Wednesday. "As part of a block trade, Deutsche Telekom gained around 0.3 billion euros for its 20 million France Telecom shares," the German incumbent said in a statement. A Deutsche Telekom spokesman said the sale was agreed as early as two years ago when the two rivals decided to end their strategic alliance, following the failure of a planned merger between Deutsche Telekom and Telecom Italia. He said France Telecom had agreed to the sale ahead of a lock-up period expiring in early 2003. Sources told the paper that the share placement was carried out by Goldman Sachs. The heavily indebted German telecom said the proceeds will be used to help pay its huge EUR66 billion-debt. H5B5 MEDIA: German TV, Film Producer Petitions for Insolvency ------------------------------------------------------------- H5B5 Media AG filed with the district court Munich an insolvency petition on June 18, the loss-making German TV and film documentary producer announced Tuesday. Healthy subsidiary companies are not included in the insolvency, in particular the core division Welt der Wunder GmbH (world of the miracles GmbH) together with graphic service operations. A production for approximately over EUR3.9 million order from United Stardust AG (USD) in Hamburg failed to be completed since the investors withdrew funding. A complaint against USD and an insolvency request were prepared. Current production for RTV will be put on hold due to the insolvency situation of RTV. KIRCHMEDIA: Axel Springer, Heinrich Bauer Confirm Bid for Firm -------------------------------------------------------------- German publishers Axel Springer and Heinrich Bauer Verlag have officially acknowledged that they are after KirchMedia, the now- insolvent former core business of KirchGruppe. The two confirmed Wednesday their entry into the race, but said that they're only after 51% of the media rights company. They are open to other partners, the Financial Times says. People privy to the situation claim the publishers have received various offers to join its consortium. Analysts, however, rule out participation of Hollywood studios. "The studios would be ideal bidding partners because they have expertise and content," one banker told the Financial Times. "But the reason they would go into this is because they see ProSieben as being under-managed. There is no way they would join without management control," the banker said. ProSieben is considered one of the major assets of KirchMedia, along with its film library, Europe's largest. The free-TV network is No.1 in Germany. This consortium is the second group to publicly acknowledge bidding for KirchMedia. The other buying bloc is composed of Commerzbank and Columbia TriStar. MOBILCOM AG: Takeover Imminent as France Telecom, Banks Seal Deal ----------------------------------------------------------------- The threat of bankruptcy on MobilCom is now lifted with the agreement between France Telecom and a syndicate of 17 creditor banks over a debt-restructuring plan for the troubled German firm. According to the Financial Times, the banks agreed to convert 90% of their EUR4.7 billion loan into securities convertible to shares in the French giant. The loan was set to mature next month. People privy to the situation say Orange, the mobile phone arm of France Telecom, will shortly offer to buy the stakes controlled by 71.5% of shareholders at EUR10 apiece. This will value the German affiliate at EUR652.87 million, the paper says. For agreeing to forgive EUR4.2 billion of the EUR4.7 billion loan, banks will be able to own 19 million of France Telecom shares when converted, or equivalent to 4% of the phone giant. The securities have a strike price of at least EUR45. France Telecom shares closed down 8% Tuesday at EUR15 -- a huge discount to the convertible's strike price, the paper says. "Because the security is perpetual in maturity and has a deferred coupon payment, the French group expects ratings agencies will consider it as 'hybrid equity' and view the structure as equivalent to a deferred rights issue," the Financial Times says. The report says the transaction is structured to allow France Telecom to take over MobilCom without being forced to consolidate the German group's debt to its EUR60.7 billion debt- pile. MobilCom has about EUR6-7 billion of debts. The paper says the deal will only be completed upon the re- negotiation by France Telecom of another EUR2.1 billion in MobilCom liabilities in the form of vendor facilities granted by Nokia and Ericsson. It will also become void if Orange fails to secure the 49% stake owned by CEO Gerhard Schmid. No one could say for sure at the moment whether there's going to be a hitch in the deal, particularly that the EUR10 offer is way below what Mr. Schmid is reportedly willing to accept for his share. The MobilCom founder and concurrent chief pledged in March to step down if he would be offered EUR22 per share. Lately, though, people close to the chief say he is willing to lower the figure to EUR17. The EUR10, however, represent a 20% premium over MobilCom's shares, which closed EUR8.30 in late trading Tuesday. PHILIPP HOLZMANN: Two-year Suit v. Deutsche Bank Still Unresolved ----------------------------------------------------------------- A Philipp Holzmann shareholder has complained that his suit filed against Deutsche Bank two years ago has not moved an inch. And to make matters worse, it's bound to be delayed further. Belgian holding company Gevaert, which filed a EUR165 million- damage suit against the bank in March 2000, says the independent expert appointed by the court has not yet finished his report. "Even though the action was brought in March 2000, and the court didn't order clarification of the situation [at Holzmann] by an independent expert until June 2001, the expert -- on the express orders of the court -- has not yet started his work," Gevaert's former CEO Andre Leysen told Handelsblatt. "It remains unclear when the expert will be empowered to act by the court and when a ruling will be made," Mr. Leysen added. According to Handelsblatt, the Belgian group bought 30% of Philipp Holzmann in 1998 via its Gebema subsidiary not knowing that a year later the German construction group would experience difficulty that would eventually lead to its first bankruptcy. In its suit, Gevaert alleged that Deutsche Bank, the largest shareholder of the company, misinformed it about Philipp Holzmann's financial standing. From the beginning, however, the case met several delays due to confusion over delineation of responsibility. This led the court on June 13 last year to assign an independent expert to compile a report, Handelsblatt says. A court spokesman told the German daily that the insolvency of the company had interrupted the case. Legal experts, however, dismiss this explanation, pointing out that the actual case against Deutsche Bank remains unaffected by the insolvency. Meanwhile, the bank has made it clear that it won't settle the case. This surprises Mr. Leyden who pointed out to Handelsblatt that the bank had agreed to a settlement with six former Philipp Holzmann management board members at the end of 2001. He said the bank had accused some of these managers of having misinformed Carl von Boehm-Bezing, a Deutsche Bank management board member who headed Holzmann's supervisory board at the time. "Meanwhile, Deutsche Bank is resisting a settlement with Gebema even though the case also centers on misinformation about conditions at Holzmann. A settlement is reached with the culprits but not with the victim, Gebema," Mr. Leysen said. RTV FAMILY: Credit Line Ends Temporary Liquidity Crisis ------------------------------------------------------- RTV Family Entertainment AG Banks secures a bridge credit facility from Ravensburger AG, the group announced Thursday. Through additional funds from Ravensburger, RTV will be able to pay its liabilities which are already due or will become due within the next weeks. This restores its full financial solvency. However, a financing gap until year-end of approximately EUR 4 million still exists. Ravensburger AG will make the funding of this additional gap dependent on further successes in the restructuring of RTV. RTV's restructuring plan will, in addition to massive cost saving measures and a further concentration on profitable business segments, also be beneficial to creditors. Due to the ongoing deterioration of its distribution markets, the management of RTV Family Entertainment AG has engaged auditors to investigate if debts & liabilities of RTV exceeds its assets (negative equity capital). Contact Information: Torsten Weihrich RTV Family Entertainment AG Telephone: +49 (0) 89 - 997271-17 Fax: +49 (0) 89 - 997271-92 Email: ir@rtv-ag.de ========= I T A L Y ========= FIAT SPA: General Motors Only Interested in Fidis, for Now ---------------------------------------------------------- General Motors CEO Rick Wagoner confirms that his company is considering its option on Fidis, the financial services arm of Fiat, but not the reported merger of their auto business. In an interview with the Financial Times, Mr. Wagner said neither side has brought the issue of exercising the option that will allow General Motors to takeover the entire Fiat Auto division, in which it already owns 20%. "The put is their call, and even assuming that is out of the way, could you get to the desired state when restructuring is needed in both companies, or do you [first] get restructuring going in each?" Mr. Wagoner told the paper. The chief says he intends to finish first the restructuring of its loss-making European operations, particularly Adam Opel in Germany before considering a merger with Fiat Auto. Mr. Wagoner confirmed, though, that its consumer credit and financing arm is looking into the 51% stake of Fiat in Fidis. Three banks -- Banca di Roma, Intesa BCI and SanPaolo IMI -- are also eyeing these stakes, but General Motors has first call under its Fiat alliance. "GMAC is going to be looking at it. We haven't come to a conclusion. We have really just begun to look at the data and it's going to take a while. Other matters of funding costs need to be analyzed to see if it's the best for both of us," Mr. Wagoner said. General Motors paid US$2.4 billion for the 20% stake it bought in Fiat Auto two years ago. Many analysts believe Fiat may be forced to sell the auto unit to raise needed cash to trim down debts. Following the release of its anemic first quarter results, the company inked a deal with creditor banks, giving the latter far greater influence on where the company should go as regard its debt-reduction plan. Under the agreement, 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. ===================== N E T H E R L A N D S ===================== KPNQWEST NV: Creditors Snub Paltry EUR100 Million Offer for Ebone ----------------------------------------------------------------- Creditor banks rejected Wednesday a EUR100 million offer for the Ebone network, finding the bid too low, industry paper Total Telecom says. The report did not identify who made the bid, but said that venture capitalists made up the consortium that tendered the offer. The decision made by the banks, which include CityBank, Deutsche Bank and Bank of America, were considered by employees working without pay at the Belgian operations center as mere posturing to attract a much higher offer. "The banks are playing for time in asking for more money. This is just [an indication] of progress being made," Graham Kinsey told Total Telecom in an interview. Mr. Kinsey, an Ebone network engineer, was among the employees fired by administrators when the company began insolvency proceedings. They are now voluntarily manning the operations center to keep the network up. A source privy to the negotiations still expects the deal to go through. The question, however, is whether or not the Ebone network could still survive until the next offer, the source told Total Telecom. KPNQWEST NV: Bondholders Urge U.S., Dutch Watchdogs to Probe Fall ----------------------------------------------------------------- Bondholders of KPNQwest owed EUR1.6 billion are seeking an inquiry both in the U.S. and the Netherlands into the rapid demise of the company, the Financial Times reports. In an interview, Gary Klesch, chairman of Klesch & Co, a London finance boutique and a specialist in distressed debt, told the paper that the collapse of the group is unthinkable. "That cannot happen in the real world," said Mr. Klesch. "As fast as Enron melted down, this beats it. Something like this does not happen that fast. Someone must have seen that train coming down the tracks for some time." He pointed out that on April 24, management was still upbeat about earnings, although it admitted to facing "severely deteriorating market conditions." Still, he cannot believe that 29 days later the company would be crippled after forecasting EBITDA of EUR140 million on sales of about EUR1 billion. Specifically, the bondholders are asking officials in the U.S. and Netherlands to investigate whether the carrier's parents -- KPN of the Netherlands and Qwest Communications of the US -- or its management knew of the imminent crash. The bondholders are unlikely to recover any of their investment, the paper says. LAURUS NV: Complete Rejection of Claims by Jelgersman, Deminor -------------------------------------------------------------- The Rotterdam Court rendered Wednesday an immediate judgement on demands made by two holding companies controlled by Mr. E.Th.A.C. Albada Jelgersma and Deminor Nederland B.V. against Laurus N.V. and the Stichting Administratiekantoor Laurus. Deminor is a commercial consultancy firm, retained by Mr. Albada Jelgersma, which collects voting proxies for the annual meeting of June 28, 2002. The demands aimed for an extension of the term (which ends on June 21, 2002) during which holders of depositary receipts of Laurus shares could deposit these and apply for voting proxies for the annual meeting of shareholders scheduled June 28, 2002. Laurus announces that these demands have been completely rejected by the court. The Board of Management and the Supervisory Board of Laurus have defended against the demands. The annual meeting of shareholders was convoked in accordance with the applicable rules in the articles of association, including the rules pertaining to the depositing of depositary receipts by holders thereof. Also the rules applying to the trust office in relation to the depositary receipts were complied with. It is in the interest of all stakeholders of Laurus, including the holders of depositary receipts, that all formalities pertaining to the annual meeting are strictly adhered to in order to avoid possible doubts afterwards with respect to the validity of resolutions of such meeting. The deadline for the application for voting proxies to holders of depositary receipts which ends today, Friday June 21, 2002, will remain unchanged. Laurus N.V. regrets any possible uncertainty this court case might have caused to shareholders/holders of depositary receipts, employees and suppliers. The trust office gives holders of depositary receipts the opportunity to request their voting proxy for the general meeting of shareholders by fax for the attention of the office of the executive secretary (fax +31 (73) 622 36 48). All information concerning the general meeting of shareholders is, since June 13, 2002, available at www.laurus.nl. The general meeting of shareholders will be held on Friday June 28, 2002 at the Netherlands Congress Center, Churchillplein 10, The Hague. On the agenda of this meeting is among others the proposed transaction between Casino, Laurus and the Banks. Acceptance of the proposed transaction between Casino, Laurus and the Banks is at this moment the only possibilty to guarantee the continuity of Laurus N.V. VERSATEL TELECOM: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Debtor: Versatel Telecom International N.V. aka Versatel aka Versatel Telecom B.V. Bankruptcy Case No.: 02-13003 Type of Business: The Debtor provides broadband Internet and telecommunications services including voice and data services, dedicated Internet access services, customized telecommunication solutions and Internet-enabled applications in The Netherlands, Belgium and northwest Germany. Chapter 11 Petition Date: June 19, 2002 Court: Southern District of New York (Manhattan) Debtors' Counsel: Douglas P. Bartner, Esq. Shearman & Sterling 599 Lexington Avenue New York, NY 10022-6069 (212) 848-8190 Fax : (212) 848-4387 Total Assets: $2,017,758,399 Total Debts: $1,605,897,821 Debtor's 20 Largest Unsecured Creditors: Entity Claim Amount ------ ------------ The Bank of New York, as trustee for holders $215,000,000 of $225,000,000 13-1/4% Senior Notes due 2008 face value Richard T. Haberstroh outstanding 15 Broad Street New York, NY 10286 $1,191,807 of +1 212 235 2429 (dir) accrued +1 212 235 2532 (fax) interest as May 31, 2002 The Bank of New York, as trustee for holders $150,000,000 of $150,000,000 13-1/4% Senior Notes due 2008 face value Richard T. Haberstroh outstanding 15 Broad Street New York, NY 10286 $830,851 of +1 212 235 2429 (dir) accrued +1 212 235 2532 (fax) interest as of May 31, 2002 The Bank of New York, as trustee for holders $177,000,000 of $180,000,000 11 7/8% Senior Notes due 2009 face value Richard T. Haberstroh outstanding 15 Broad Street New York, NY 10286 $8,028,486 of +1 212 235 2429 (dir) accrued +1 212 235 2532 (fax) interest as of May 31, 2002 The Bank of New York, as trustee for holders $105,530,700 of EUR 120,000,000 11 7/8% Senior Notes due 2009 face value Richard T. Haberstroh outstanding 15 Broad Street New York, NY 10286 $4,782,281 of +1 212 235 2429 (dir) accrued +1 212 235 2532 (fax) interest as of May 31, 2002 The Bank of New York, as trustee for holders $280,170,000 of EUR 300,000,000 11-1/4% Senior Notes due 2010 face value One Canada Square outstanding London E14 5AL United Kingdom $5,410,766 of Emma Wilkes accrued +44 20 7964 7662 (dir) interest as +44 20 7964 6399 (fax) of May 31, 2002 ING Bank, as trustee for holders of $313,536,277 EUR 300,000,000 4% Senior Convertible face value Notes due 2004 outstanding Rene H. Ruiten P.O. Box 1800 $5,332,569 of 1000 BV Amsterdam accrued The Netherlands interest as loc code HI 01.03 of May 31, 2002 +31 20 652 2620 (dir) +31 20 652 2650 (fax) ING Bank, as trustee for holders of $370,807,157 EUR 360,000,000 4% Senior Convertible face value Notes due 2005 outstanding P.O. Box 1800 1000 BV Amsterdam $2,316,065 of The Netherlands accrued Rene H. Ruiten interest as +31 20 652 2620 (dir) of May 31, 2002 +31 20 652 2650 (fax) Dutch Tax Authorities (Belastingdienst / $13,836,516 Grote ondernemingen) (EUR 14,648,016) P.O. Box 58988, 1040 EK Amsterdam, The Netherlands + 31 20 6877000 Fortis Bank NV, Warandeberg 3, $1,873,316 1000 Brussels, Belgium (EUR 1,983,184) Stichting Buisleidingenstraat, $1,430,104 J. Foesenek (EUR 1,513,979) Wilhelminastraat 12, 4701GX Roosendaal, The Netherlands +31 165-542916 Cap Gemini Telecom $370,579 76, avenue Kleber (EUR 392,313) 75784, Paris cedex 16 France + 33 147 54 5200 Belgacom S.A. $118,075 (EUR 125,000) STIC $36,443 (EUR 38,580) Hotel Concert Inn $22,948 (EUR 24,294) Dienst Infrastructuur Verkeer $15,813 (EUR 16,740) Jacmel Ltd $4,685 (EUR 4,960) BIA Bureau Info. Mngt Amsterdam $2,820 (EUR 2,986) CGL Services Ltd $2,235 (EUR 2,366) BULO $2,362-$3,589 (EUR 2,500 - EUR 3,800) The Depositary Trust Company $885 (EUR 937) ========= S P A I N ========= JAZZTEL PLC: S&P Put Jazztel on CreditWatch Negative ---------------------------------------------------- Jazztel Plc's CC long-term corporate credit and C senior unsecured debt ratings has been placed on CreditWatch with negative outlook by Standard & Poor's Corp. This is after the company's announcement that it will recapitalize in a debt-for-equity swap, AFX News reported. "The CreditWatch placement reflects the imminent risk of restructuring for bondholders as a result of Jazztel's proposed debt for equity exchange offer," S&P director Leandro de Torres Zabala said. According to AFX News, S&P said that "it views the completion of such exchange offers as 'tantamount to default' if the total value of the securities offered is materially less than the originally contracted amount, even though it may be greater than the current depressed market value of the debt." In addition, S&P noted that "the nominal value of Jazztel's tender package points to a material probability that investors should not expect full repayment, as originally promised, leaving them with no practical alternative but to accept the offer." The report also said that the ratings agency further said that upon the consummation of the exchange offer, it would resolve the CreditWatch placement and lower the ratings on the notes to D. It will also downgrade the corporate credit rating to SD (selective default). =========== S W E D E N =========== FRAMFAB: Concludes Agreement With Knowledge Foundation ------------------------------------------------------ In competition with 31 other bidders during a public procurement process, Framfab -- www.framfab.com. -- has won a contract to serve as the Knowledge Foundation's new Internet consultant. The two-year general agreement, which contains an option to renew for an equal period of time, covers the development and enhancement of the Knowledge Foundation's web environment. Representatives of the Knowledge Foundation and a number of external experts rated the proposals of the various bidders based on a series of criteria. Framfab won the contract after accumulating the most points in the evaluation. Framfab has already started on its task of developing and enhancing the Knowledge Foundation's web environment. The aim of the Knowledge Foundation is to support Sweden's growth and competitive power through the development of knowledge and expertise - in other words to upgrading Sweden. The foundation has financed and supported some 1,400 projects in Sweden since 1994. One of the foundation's goals in the next few years will be to disseminate the know-how, experience and findings that it has gathered from these projects. In Framfab's view, the Knowledge Foundation is well positioned to use the Internet as one of its key tools in that effort. CEO Christian Haeger of Framfab Sverige AB says, "The Knowledge Foundation is a very exciting company that has recognized the potential of the Internet, as well as our integrated areas of expertise: business development, design & communications, technology and support. The trust that the foundation has displayed in us makes us proud and eager to get down to work." Framfab is a leading provider of consulting services and business solutions based on Internet technology. The company is quoted on the O list of the Stockholm Stock Exchange (ticker symbol FTID). For more information. Contact Information: Christian Haeger CEO Framfab Sverige AB Telephone: +46 709 41 21 47 Email: christian.haeger@framfab.se Anders Ekman CEO Framfab AB Telephone: +46 8 41 00 10 00 Email: anders.ekman@framfab.se SONG NETWORKS: Tele Danmark Wins SEK20MM Order With Song Networks ----------------------------------------------------------------- Together with the Swedish company Song Networks AB -- www.songnetworks.net -- as subcontractor, Tele Danmark InterNordia has received an order from Sweco AB for delivery of a group-wide telephony solution for both fixed and mobile telephony. It is a five-year contract and the deal is worth SEK 20 million each for Tele Danmark InterNordia and Song Networks. Sweco is a consultancy company in the fields of technology, the environment and architecture. Its domestic market is Sweden, with the other Nordic countries and the Baltic region as its neighbouring market. The group also have extensive and growing foreign operations, focusing on Eastern Europe, Asia, Africa, the Middle East and Latin America. Sweco has offices in around 40 locations, of which 30 are in Sweden, and has approximately 5,000 customers and approximately 2,500 connections. They are all interconnected via one main switchboard for fixed and mobile telephony. Tele Danmark InterNordia and Song Networks are behind the solution. The contract provides a uniform, group- wide number scheme and one main switchboard which administrates the whole group. Tele Danmark InterNordia is a Swedish company which is 100 percent-owned by Tele Danmark AS. In spring 2002 Tele Danmark InterNordia bought the Tele Office telecom company. Together, the companies are becoming an increasingly important player on the Nordic market for communication solutions. The new company is expected to achieve a turnover for the year of approximately SEK 600 million, and it will have around 300 employees all over the country. Song Networks, formerly Tele1 Europe, is a data and telecommunications operator with activities in Sweden, Finland, Norway and Denmark. The Company's business concept is to offer the best broadband solution for data communication, internet and voice to businesses in the Nordic region. This means that Song Networks supplies communication solutions that are attractively customized for each corporate customer. Song Networks is currently the only pan Nordic operator investing in local access networks with broadband capacity. The Company has built local access networks in the largest cities in the Nordic region. The Company was founded in 1995 in Sweden and has approximately 1,000 employees. The head office is located in Stockholm and there are an additional 34 offices located in the Nordic region. =========================== U N I T E D K I N G D O M =========================== BEDE PLC: Reveals 2002 Q1 Results With GBP 0.27MM Pre-Tax Loss -------------------------------------------------------------- Bede plc -- www.bede.co.uk -- a leader in the design and manufacture of specialist X-ray instruments and associated software, is pleased to announce its first quarter results for the three months ended 31 March 2002. Key Financial Figures: - Strong revenue growth continues, up 91% to GBP 2.21m (2001 : GBP 1.16m) - Loss before tax of GBP 0.27m (2001 : GBP 0.10m) - Loss per share of 0.9p (2001 : 0.4p) - Order book : GBP 1.15m - book to bill ratio increasing to 0.7 in the period (0.3 in the fourth quarter of 2001) - Continued investment in products, infrastructure and distribution - Market diversification strategy progressing well - Focus on pharmaceutical industry - New products to be launched by end 2002 - Strong interest in products of Czech subsidiary, Reflex sro - IP strengthened: granting of European Patent for Microsource(R) X-ray generator - Outlook : well positioned to deliver significant revenue and earnings growth The results for the three months to March 31, 2002 show a 91% growth in revenues to GBP2.21 million (2001: GBP1.16 million), achieved despite the general market downturn. Gross margin at 53% is similar to that achieved in the corresponding quarter of 2001 (2001: 52%). The previously reported investment in infrastructure in 2001, following the Company's 2000 flotation, led to an increase in other operating income and charges to GBP 1.49m (2001: GBP 0.87m), in line with expectations. Operating losses for the period have been held to GBP 0.32m (2001: GBP 0.26m) and losses before tax were GBP 0.27m (2001: GBP 0.10m). Loss per share was 0.9p (2001: 0.4p). At March 31, 2002 the Group had net assets of GBP 14.49m (2001: GBP 14.92m) and cash reserves of GBP 5.26m (2001: GBP 11.08m). Norman Price heads the X-ray instruments group as chairman. Contact Information: Neil Loxley Chief Executive Bede plc Telephone: +44 (0)191 332 4700 David Hall Finance Director Bede plc COLT TELECOM: Communications Group Announces GBP 2MM Bond Buyback ----------------------------------------------------------------- COLT Telecom Group plc, a leading European provider of business communication services, said today that it had purchased a further GBP 2 Million of COLT bonds for a cash outlay of GBP 1 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. - $1.0 Million accreted principal amount of our $314 Million 12% Senior Discount Notes due December 2006; - EUR 3.0 Million face amount of our EUR 320 Million 7.625% Senior Notes due December 2009. In aggregate COLT has now purchased: - $61.8 Million accreted principal amount of our $314 Million 12% Senior Discount Notes due December 2006; - GBP 3.0 Million face amount of our GBP 50 Million 10.125% Senior Notes due November 2007; - EUR 5.0 Million face amount of our EUR 76.7 Million 8.875% Senior Notes due November 2007; - EUR 47.0 Million face amount of our EUR 306.8 Million 7.625% Senior Notes due July 2008; - EUR 50.3 Million face amount of our EUR 320 Million 7.625% Senior Notes due December 2009; - EUR 16.8 Million accreted principal amount of our EUR 306.8 Million 2% Senior Convertible Notes due August 2005; - EUR 84.8 Million accreted principal amount of our EUR 295 Million 2% Senior Convertible Notes due March 2006; - EUR 73.0 Million accreted principal amount of our EUR 368 Million 2% Senior Convertible Notes due December 2006; and - EUR 92.4 Million accreted principal amount of our EUR 402.5 Million 2% Senior Convertible Notes due April 2007. Contact Information: John Doherty Director Investor Relations Email: jdoherty@colt.net Telephone: +44 (0) 20 7390 3681 CONSIGNIA: Post Office Saves British Travellers GBP 10MM -------------------------------------------------------- British holiday makers have saved GBP10 million* in the last year thanks to a Post OfficeTM initiative to axe commission on foreign currency. Committed to making it easier and simpler for customers to buy currency with no hidden catches, the Post Office removed commission charges from all foreign currency transactions in June 2001. *calculated by total number of transactions multiplied by average commission cost, based on Post Office charges for 2000-2001 The GBP10 million the Post Office has saved British travellers could buy: - 7,470 return flights to Tokyo in time for the World Cup final (based on BA economy flights available on June 12, 2002) - Nearly 27,000 tickets to the World Cup Final at Yokohama International Stadium - that's equivalent to over one third of the venue's capacity (based on averaging the prices of category 1, 2 and 3 tickets; capacity of stadium - 70,564) - All the tickets to the England World Cup Quarter Final at Ogasayama Sports Park Stadium in Shizuoka, Japan, and an extra 16,000 or so too!! (based on averaging the prices of category 1, 2 and 3 tickets; capacity of stadium 50,600; number of tickets GBP10m could buy 66,666) - 5 celebrity weddings to outshine Paul McCartney and Heather Mills (theirs cost an alleged GBP2m) - Just over 28 paradise Fijian islands (Wavi Island in Fiji retails at cGBP350,000) - 1,096 full return tickets, London - New York, on Concorde (full ticket retails at GBP9,122) - Over 1 million bottles of factor 15 sun tan oil (based on Coppertone Oil Free Sun Lotion, factor 15, retailing at GBP9.99 per bottle) Available nationwide, commission free currency can be obtained at Post Office branches, ordered over the phone (0800 169 9999) or via the internet at www.postoffice.co.uk. There are no extra charges added, such as handling fees. The Post Office is committed to offering competitive exchange rates on foreign currency and is one of the top five main high street retailers. CLUBHAUS PLC: Rebel Shareholders Want Their Man in Boardroom ------------------------------------------------------------ Eddy Shah, a two-percent shareholder of troubled golf course operator Clubhaus, vows to oppose the appointment of lawyer John Hume to replace outgoing Chairman Robert Bourne. In an interview with The Times, Mr. Shah pointed out that it is highly unethical for directors to bring into the boardroom somebody who is equally liable for the company's misfortune. He said Mr. Hume, a litigation specialist, is the unofficial adviser of directors on complex financial restructuring. "This is plain wrong. The directors who created the problems in the first place should not be bringing in their own personal lawyer as a director in the company," Mr. Shah told The Times. "It is surely totally unethical that a company being investigated by the [Department of Trade and Industry] should bring in somebody who has represented the directors through this whole sorry mess instead of appointing an independent chairman," he said. The trade and industry department launched in April an inquiry into possible financial malpractice at the company after it issued a series of profit warnings and a GBP75 million write-down in the value of its assets. In May shareholders approved a restructuring plan that diluted their holdings down to just 11% of the company, the report says. Mr. Shah, along with David Lloyd, a former tennis pro, has been the leader of the shareholder uprising against management's decisions. The former media magnate said he and Mr. Lloyd are willing to accept an appointment to the board. "This needs new blood. David Lloyd and I are prepared to offer ourselves as chairman and non-executive director to bring the sort of experience to running this company it so badly needs," Mr. Shah told The Times. P&O PRINCESS: Cruise Operator's Reply to DTI Announcement --------------------------------------------------------- P&O Princess Cruises plc welcomed Wednesday the Secretary of State for Trade and Industry's decision to approve the proposed combination of P&O Princess with Royal Caribbean Cruises Ltd. The proposed combination with Royal Caribbean remains subject to review by the Federal Trade Commission in the United States and to approval by P&O Princess shareholders. The proposed offer by Carnival Corporation for P&O Princess remains subject to review by the Federal Trade Commission in the United States and approval by the European Commission. RAILTRACK PLC: Will Burn GBP 3BB More in the Next Five Years ------------------------------------------------------------ Network Rail would need more cash to run Railtrack Plc, the troubled tracks and station company it is set to takeover for GBP500 million and other indirect compensation. Speaking before a Transport Select Committee hearing, Railtrack CEO John Armitt said an interim review (a request for more cash) by rail regulator Tom Winsor is "inevitable." In Mr. Armitt's estimate, Railtrack needs at least GBP3 billion more over the next five years. This means a big headache for the transport department, which recently admitted that of the GBP30 billion earmarked for railways, only GBP5 million more remains unspent or unallocated. "This will blow a huge hole in the Government's spending plans, which hasn't been budgeted for. It's a headache for Alistair Darling [the Transport Secretary], because it will take all the money left for the railways in his 10-year plan," Chris Grayling, a Tory MP for Epsom & Ewell, who sits on the committee, told the Telegraph. A spokesman for Network Rail confirmed to the Telegraph that it too is not discounting the need for additional funding: "We certainly haven't ruled out the possibility that there would need to be an interim review." He, however, said the request would not come until about 18 months after purchasing Railtrack. RAILTRACK PLC: Postpones Re-listing Partly Due to World Cup ----------------------------------------------------------- If Railtrack Group fails to re-list in the London Stock Exchange today, blame the ongoing World Cup. An insider told The Guardian Wednesday that the company is taking into account the prestigious soccer event in deciding when to take back its place in the stock market. "They would not want to re-list the shares at a time when everyone in the City of London will be diverting their attention elsewhere," the unnamed insider told The Guardian. The company was earlier expected to start trading anew yesterday, but hitches with paperwork forced it to postpone the re-listing for another day. The documents related to the GBP375 million sale of Railtrack Group's interest in the Channel tunnel rail link were allegedly involved in the slip-up. Network Rail, a government-backed bidder, is going to pay GBP500 million for 20,000 miles of railway track, 2,500 stations and 1,100 signal boxes owned by Railtrack Plc, the unit of Railtrack Group currently in administration. The report says the Board and institutional investors, who account for 70% of the shareholders, back this proposal and intend to affirm the deal during the extraordinary meeting next month. Private shareholders, who are asking for more from the government, plan to press on with their damage suit against it for wrongfully putting the company into administration. They believe they have a strong case. But to Neil Ostrer of Marathon Fund Management, which owns 2% of Railtrack, the issue is complicated: "It's a question whether it's worth the time, the effort, the money and the risk going forward relative to what we might get beyond 250p." The current offer by Network Rail affords shareholders payment of GBP250p per share, 30p lower than the value of the shares when the company stopped trading in the market late last year in view of its administration. Spread betting firms forecast that the company's share price will settle around 205p to 215p, well short of the 280p price at which Railtrack was taken into administration, says the paper. Nevertheless, Andrew Chalken who heads the action group pursuing the damage suit is not bothered by the forecasts: "People are going to be pleased that they're able to recover something with this re-listing. But obviously it'll be a lot less than they should be getting." SSL INTERNATIONAL: Healthcare Maker Launches New Durex Products --------------------------------------------------------------- SSL International plc, the global manufacturer and distributor of premium healthcare products, is to launch three innovative new Durex condoms. Based upon extensive consumer research, the new products have been developed as part of the Group's strategy to develop its four core brands - Durex, Scholl, Regent and Hibi. Last year investment in new product development increased by 25% with further increases expected in the current year. Supporting this program of product innovation, the Group increased its investment in market development last year by 18% to GBP 71 million. Commenting on the new range from Durex, Jon Gray, Marketing Director said: "Our strategy is to drive sales growth from SSL's four main brands. New product development is a vital part of this strategy. "Durex is the world's favorite condom sold in 150 countries around the world. These exciting new condoms, which will become increasingly available in our global markets over the coming months, will augment the existing product range and help drive sales growth." The new products to be launched are: Durex Performa Performa is an innovative "delay" condom that contains benzocaine and offers the consumer benefit of enhancing sexual performance. In research, 89% of consumers who have tried Performa said they liked the condom, the main reason being that it prolonged lovemaking. Durex Sensation Sensation is a "dotted texture" condom that offers greater stimulation during lovemaking, providing not only the functional and emotional benefits of a prophylactic and contraceptive, but also the added benefit of enhanced pleasure particularly for women. Durex Close Fit Close Fit is a narrower condom that offers a firmer hold and potentially less slippage. Recognizing that fit has a major impact on successful condom usage, Durex Close Fit now completes a range offering three different condom sizes: Close Fit with a 49mm nominal width, standard straight walled condoms (52mm), and Easy-on (54mm). No longer is it a case of one size fits all. TELEWEST COMMUNICATIONS: Bondholders Reject Liberty Tender Offer ---------------------------------------------------------------- The informal Committee of the holders of notes issued by Telewest Communications PLC, representing over 50% of the notes subject to the tender offer launched last week by Liberty TWSTY Bonds, Inc., announced Wednesday that they do not intend to participate in the Liberty tender offer. Members of the Committee consider that acceptance of the Liberty tender offer is not in their best interests. As stated in its press release of June 17, 2002, the Committee wishes to discuss with Liberty and Telewest its proposals for a restructuring. The Committee is also seeking disclosure by Liberty of details of the restructuring plan which Liberty has stated, in its tender offer, that it intends to propose to Telewest. Bondholders wishing to participate in the Committee or to obtain information on its activities should contact Andrew Wilkinson or James Douglas at Cadwalader, Wickersham & Taft in London or Richard Nevins at Cadwalader, Wickersham & Taft in New York. TELEWEST COMMUNICATIONS: Burdick's 40,000-pound Payout Not Bonus ---------------------------------------------------------------- The 40,000-pound remuneration awarded to Finance Director Charles Burdick, which was erroneously reported as a bonus, was actually an increase in basic salary, this paper has learned recently. Earlier, TCR-Europe said all bonuses, save for this amount given to Mr. Burdick, were frozen by the remuneration committee, ostensibly to assuage shareholders who questioned its wisdom. A TCR-Europe source did not say the reason for the uplift in Mr. Burdick's basic pay. She explained, though, that the reason why Chairman Cob Stenham did not mention it was because it was not awarded through the annual salary review. There was no intention to mislead shareholders, she said. The company had planned to award top honchos of the company 690,000 pounds in bonuses until shareholders criticized the move during the annual meeting. One shareholder, to the applause of the crowd, even asked how could the company pay bonuses when it was "on its knees." According to the Telegraph, Mr. Burdick is among those being blamed for the company's ballooning GBP5.3 billion-debt. Used to be valued at GBP12 billion two years ago, the company is now valued at GBP120 million in the market. It is likely to implement a debt-for-equity swap. TELEWEST COMMUNICATIONS: Bondholders Pick UBS Warburg as Adviser ---------------------------------------------------------------- Telewest group of bondholders has recruited UBS Warburg as adviser on the company's upcoming financial restructuring, the telecoms group announced Monday. The appointment of UBS Warburg went through stiff competition from Lazard and NM Rothschild, the AFX News reported. In addition, the paper has noted that the three banks are picking up several financial restructuring mandates while they have avoided from highly leveraging to the telecom sector. *********** 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, Maria Lourdes Reyes, Jean Claire Dy, Editors. Copyright 2002. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is 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 * * *