/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020627.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 Thursday, June 27, 2002, Vol. 3, No. 126 Headlines ********* * C Z E C H R E P U B L I C * TV NOVA: Mired in Subsidiary's CZK800 Million Debt VALCOVNY PLECHU: Shareholder Successful Blocks Debt-Equity Swap * F I N L A N D * SONERA CORPORATION: EU Extends Merger Inquiry Deadline to July 10 SONERA CORPORATION: Turkcell Provides Update on Operations * F R A N C E * COMPLETEL EUROPE: Broadband Services for Nord Pas de Calais FRANCE TELECOM: Slump Just Normal Market Cycle, Says Chairman * G E R M A N Y * BABCOCK BORSIG: Secures Employees' Contribution for Rescue BABCOCK BORSIG: Defers Salaries From June 27 to 3 July 3 DEAG ENTERTAINMENT: Secures Financing, Restructuring Continues DEUTSCHE TELEKOM: Liberty in Renewed Cable Network Bid DEUTSCHE TELEKOM: Places Expansion Order for Inet's GeoProbe MOBILCOM AG: Schmid Wants EUR22 for Share, to Fight French Group PHILIPP HOLZMANN: Heijmans Pulls Out of Talks Over Domestic Units * H U N G A R Y * DUNAFERR RT: Government Not Amenable to Bankruptcy Proposal * I T A L Y * FIAT SPA: Chairman Says Group Will Float 35% of Prized Ferrari FIAT SPA: Agricultural Equipment Co. Aims for Profit in 2002 * N E T H E R L A N D S * KPN NV: Signs Primafoon Retail Outlet Takeover Agreement With RDC LAURUS NV: Ex-board Member to Present Alternative Plan Tomorrow VERSATEL TELECOM: Seeks to Bring in DF King as Balloting Agent * P O L A N D * NETIA HOLDINGS: Creditors Accept Arrangement Proceeding Plan * S W E D E N * SONG NETWORKS: Focuses on Synergies and Efficiencies * U N I T E D K I N G D O M * ENERGIS PLC: Apax, Carlyle Threaten to Cancel Bid Next Week ENERGIS PLC: Wins Three-year Contract From Virgin Mobile MARCONI PLC: Acquires New Customer to Provide Network in China P&O PRINCESS: Defers Bonus, Will Extend Retention Periods RBG RESOURCES: WestLB Admits Possible Loss in Bogus Trades TELESENSKSCL AG: Telesenskscl Ltd, Scotland in Receivership TELESENSKSCL: Management Buyout Remains Possible, Say Sources =========================== C Z E C H R E P U B L I C =========================== TV NOVA: Mired in Subsidiary's CZK800 Million Debt -------------------------------------------------- CET 21, a licensing unit of TV Nova, denies owing creditors CZK800 million, which have led many observers to believe that the parent is facing financial difficulties. The subsidiary told the Prague Business Journal that it is not facing any cash crunch and, in fact, it generated CZK275 million net profits last year. The paper has learned recently that CET 21 co-owners Jiri Smejc and Ales Rozehnal are negotiating for a bank loan, whose purpose is not yet known. VALCOVNY PLECHU: Shareholder Successful Blocks Debt-Equity Swap --------------------------------------------------------------- The capital restructuring at heavily indebted Valcovny Plechu Frydek-Mistek is stalled for now, after shareholder BCL Trading successfully blocked the move during the company's general meeting. The plan, according to the Prague Business Journal, would have led to "a reduction and subsequent increase in basic capital aimed at transforming the CZK660 million debts into a joint 98% stake in the company for its biggest creditors Nova Hut and CKA." BCL, owned by Austrian businessman Barak Alon, who was also responsible for a CZK8 billion loss at KB, owns a one-third stake in Valcovny, the paper says. ============= F I N L A N D ============= SONERA CORPORATION: EU Extends Merger Inquiry Deadline to July 10 ----------------------------------------------------------------- The European Commission said it has extended the deadline for the end of its first phase EU merger regulation inquiry until July 10 regarding the merger between Telia AB and Sonera Corp., commission sources told the AFX News. Other sources say that the companies have offered concessions to win approval of the merger, the report added. The companies believe that after being given a longer period of thime during the first phase examination period, the EU will approve the merger without the need to open an in-depth four- month probe, sources said. Another reason for granting an extension in a first phase investigation is when national competition authorities seek permission to take over the handling of the merger, the report said. SONERA CORPORATION: Turkcell Provides Update on Operations ---------------------------------------------------------- Turkcell Iletisim Hizmetleri A.S., provider of mobile communications services in Turkey, Tuesday provided an update on the Turkish mobile market and the financial status of the company. Despite the continued adverse impact of the financial turmoil of 2001, the Turkish mobile market is growing beyond Turkcell's expectations in 2002. As a result of strong subscriber acquisitions in the year to date, Turkcell believes that its total subscriber base will exceed its earlier expectations. Strong subscriber growth continues to contribute to Turkcell's cash liquidity, which enables the Company to meet its financial obligations. Turkcell waived its option to extend the first portion of domestic bank debt from Garanti Bankasi and Vakifbank due in May and June 2002 and was able to pay back a total of US$63 million of principal and interest of these debts due to the Company's strong cash flow. Total debt payments made year to date amount to US$420 million in both principal and interest, including the Ericsson trade payables of US$225 million. By the end of 2002, Turkcell expects that its total outstanding financial debt will be reduced to approximately US$1.2 billion, from US$1.6 billion year-end 2001. "Strong subscriber growth and the improved cash generation capability of our company makes us optimistic about meeting our year-end targets," said Muzaffer Akpinar, CEO of Turkcell. "Although we still feel the impact of the economic difficulties of last year, we are confident that we can continue to build on our strengths and maintain our leading market position." Turkcell -- www.turkcell.com.tr -- is the leading GSM operator in Turkey with approximately 12.7 million postpaid and prepaid customers as of March 31, 2002. Turkcell provides wireless telephone services throughout Turkey and has coverage of 100% of the towns with more than 10,000 inhabitants and 99.5% of the towns with more than 5,000 inhabitants as of March 31, 2002. Founding investors in Turkcell, Turkish conglomerate Cukurova, holds 16% of Turkcell and Finnish telecom services provider Sonera has 13% stake. =========== F R A N C E =========== COMPLETEL EUROPE: Broadband Services for Nord Pas de Calais ----------------------------------------------------------- The Nord Pas-de-Calais public administration recently launched its use of Completel voice and broadband services, having opened its telecommunications supply to competitive tender for the first time in November 2001. Completel won this contract given its ability to serve the five key sites with both outgoing and inbound voice services. As of the first quarter 2002, Completel has been the exclusive provider of all voice traffic services to the five sites, having won the following public tenders: -- Local voice -- National and International voice -- Calls to mobile phones -- Subscriptions and incoming voice services -- Interconnection of switched services between the five sites Use of Completel's number portability offering has also allowed for the seamless delivery of inbound call services, with all users retaining their existing phone numbers. The Nord Pas-de-Calais administration also selected Completel for its Lan to Lan broadband access service requirements, ordering both 100 Mbps and 10 Mbps transfer rates tailored to the usage patterns of the administrative sites. Completel furthermore chosen on account of its ability to supervise and secure its service offering (eliminating the need to manage several telecommunications providers), as well as its ability to provide billing services matching the regional administration's specific needs. Completel's competitive edge in these contracts stems from its direct fiber connection of the various sites of the Nord Pas-de- Calais administration to its local Metropolitan Area Network. Pierre Wattellier, Completel's regional manager commented, "By selecting Completel, the Nord Pas-de-Calais administration has chosen both high quality and competitive solutions to its needs. It has demonstrated its confidence in a telecommunications services supplier that has invested since 1999 in building both a local service team, and an extensive local network in the Lille area. We are proud of this decision which confirms that Completel is well positioned to meet its clients in full." Completel is a facilities-based provider of fiber optic local access telecommunications and Internet services to business end- users, carriers and ISPs in France. Contact Information: Completel Europe NV Stefan Sater Director Investor Relations Telephone: +33-1-72-92-20-43, Email: s.sater@completel.fr FRANCE TELECOM: Slump Just Normal Market Cycle, Says Chairman ------------------------------------------------------------- Chairman Michel Bon won't resign even if shares of France Telecom slide further, reports Reuters. The news agency says Mr. Bon has dismissed suggestions that he should step down following the 16% slide Monday after Moody's Investors Service and Standard & Poor's lowered its debt ratings just above junk status. On Tuesday, shares appreciated by 3.5% to EUR10.77, but it still pales in comparison to the levels two years ago when shares changed hands at EUR219. Reuters says the new government dominated by the center-right has intensified the pressure on management. The government still controls 55% of the company. "The development of this stock is worrying," government Spokesman Jean-Francois Cope was quoted by Reuters as saying after emerging from a cabinet meeting. "The government is watching this development closely because it is a shareholder but also because many French people are shareholders in this business," Mr. Cope said. For his part, Mr. Bon maintains the slide is just a normal market cycle: "We've seen some crazy gains on the bourse and now we're seeing some crazy losses. It's a speculative attack on the sector that has nothing to do with France Telecom." "France Telecom is perfectly able to resist this. One day or another the stock exchange is going to wake up and in the meantime we have to wait and stay calm," Mr. Bon said. Asked if he would resign if France Telecom's shares fell further, Mr. Bon told reporters he would not. Meanwhile, France Telecom spokesman Bruno Janet said the Moody's downgrade would only add EUR100 million in financial charges. ============= G E R M A N Y ============= BABCOCK BORSIG: Secures Employees' Contribution for Rescue ---------------------------------------------------------- The management board of Babcock Borsig AG, IG Metall and the employee representatives have agreed on a package to ensure the continued existence of Babcock Borsig AG. Some EUR 26 million over a period of 12 months will be saved in the regular-pay sector. A further EUR 16 million will be furnished by management board members, boards of directors, executives and non-regular pay scale salaried staff. Economies of EUR 5 to 8 million are to be made in other Group sectors. The agreement runs up to December 31, 2003. However the parties have also agreed - in good time before expiry of the term - to hold talks on an extension, should this be necessary. This ensures that the requested volume of some EUR 50 million as the employees' contribution is met. Gerd Woriescheck, management board member and director of labor relations of Babcock Borsig AG: "The employees have made their contribution to salvaging Babcock Borsig AG. It is now up to the others participating to ensure the company's continued existence. Their decisions must be made by tomorrow morning." BABCOCK BORSIG: Defers Salaries From June 27 to 3 July 3 -------------------------------------------------------- In view of the ongoing talks on closing the liquidity gap, Babcock Borsig AG has deferred the date due for the June salaries from June 27, 2002 to July 3, 2002 in an accord with the Group's works council, the engineering group said Tuesday. The credit sale insurers have informed the suppliers of the Group's companies that they will no longer grant any cover until further notice. The talks with the key banks and investors are continuing. Talks are also continuing with the credit sale insurers on a resumption of the cover. DEAG ENTERTAINMENT: Secures Financing, Restructuring Continues -------------------------------------------------------------- All DEAG Deutsche Entertainment AG's -- http://www.deag.de/ir-- lending banks have decided to support the restructuring of DEAG by rearranging existing credit lines totalling EUR 20.5 million, DEAG revealed Tuesday. The restructuring plan developed by the management board jointly with Roland Berger can now be implemented in full. DEAG is to concentrate on its core business of organizing national and international concerts and tours and exclusive management of venues and variety theatres. In the course of restructuring, DEAG's portfolio will be stripped of holdings in inactive companies or companies that are not relevant to its core business. The number of German and international subsidiaries in which DEAG holds a stake of at least 50% is to be reduced from 34 to 21. Staff cuts at head office in Berlin will slim down the number of employees there from 32 to 19. DEAGs management board anticipates for the full financial year 2002 sales revenues totalling roughly EUR 125 million and a net operating profit despite one-off restructuring costs. The company's remaining external debts are to be reduced markedly by the sale over the next 18 months of land adjacent to the Jahrhunderthalle in Frankfurt to improve the financial basis for additional internal growth, especially in the international sector. DEUTSCHE TELEKOM: Liberty in Renewed Cable Network Bid ------------------------------------------------------ U.S. media group Liberty Media is considering making a new bid for the cable television assets of Deutsche Telekom, reports obtained from the Financial Times say. Four months ago, the German cartel authorities blocked Liberty's offer to buy DT's cable assets for EUR 5.5 billion (US$5.3 billion) because Liberty refused to upgrade the network to a capacity of 862MHz, which would have allowed it to offer fast internet and telephone services. U.S. cable magnate John Malone's bid stands among other private equity house offers expect to secure the right to bid for DT's cable businesses in an auction by invitation. According to DT insiders Tuesday, the selected suitors had been invited to bid more than a week ago. People close to Liberty said the U.S. company was anxious to avoid the controversy that surrounded its previous bid, which met hostility from German broadcasters and raised opposition from the German cartel office. The U.S. cable group has been trying to increase its prescence in Europe. Liberty already controls UPC, Europe's largest cable operator, through its U.S. parent UGC, and has a 25 % stake in UK's Telewest. DEUTSCHE TELEKOM: Places Expansion Order for Inet's GeoProbe ------------------------------------------------------------ Inet Technologies, Inc., a leading global provider of communications software solutions for current- and next- generation networks, announced Tuesday an expansion contract with Deutsche Telekom AG. The contract includes, among other items, expansion of coverage of Inet's GeoProbe(TM) system within the carrier's network. Deutsche Telekom uses Inet's GeoProbe across multiple internal organizations to address both QoS and network security issues. With this expansion order, Deutsche Telekom will be able to proactively manage QoS and network security for more of the voice and Intelligent Network traffic in its network. Inet's GeoProbe system provides real-time, network-wide monitoring of a carrier's signaling network and serves as an open platform for business intelligence applications developed by Inet, its customers or third parties. GeoProbe's applications enable early warning of network faults, collection of statistics for performance evaluations, real-time call tracing and troubleshooting. The GeoProbe, which also serves as a sophisticated data forwarding engine for Inet's IT:seven(TM) business intelligence applications, is a powerful end-to-end management solution for traditional, converging and next-generation networks. Deutsche Telekom is Europe's largest communications company and one of the largest communications carriers worldwide based on 2001 revenues of EUR 48.3 billion (approx. US$42 billion). The company is active in four key growth segments of the global communications market: mobile communications, network access services, consumer Internet services and integrated IT and telecommunications solutions. Through T-Mobile, Deutsche Telekom's mobile communications subsidiary, and through other subsidiaries and investments, Deutsche Telekom today serves more than 69 million mobile communications customers worldwide. In June 2001, Deutsche Telekom completed the acquisition of U.S. companies VoiceStream Wireless and Powertel Inc., forming the first transatlantic mobile communications operator utilizing the GSM digital wireless technology standard. Deutsche Telekom offers its customers a complete range of fixed- line voice telephony products and services through more than 57 million access lines. The company is a leading provider of high-speed digital access lines, with more than 2.3 million new asymmetric digital subscriber line (T-DSL) contracts currently sold and 21 million channels using the information transfer standard ISDN (Integrated Services Digital Network). T-Online is one of Europe's leading consumer Internet service providers, with approximately 11 million subscribers. In January 2001, Deutsche Telekom launched T-Systems, Europe's second- largest provider of comprehensive IT and telecommunications services to business customers in more than 20 countries. For more information about Deutsche Telekom, visit www.telekom.de/international. MOBILCOM AG: Schmid Wants EUR22 for Share, to Fight French Group ---------------------------------------------------------------- Ousted CEO Gerhard Schmid is standing by his asking price of 22 euros for his nearly 50% stake in MobilCom, says Reuters. The chief, sacked last Friday, also said other minority shareholders, who under German law are entitled to an offer from France Telecom should the latter get his share, are in line to receive at least 15 euros for their holdings. At the moment, France Telecom insiders say the group is only willing to offer 10 euros. MobilCom shares, worth some 175 euros at their peak in 2000, closed on Friday at 10.08 euros, says Reuters. But Mr. Schmid says the law stipulates that any bid would have to match the weighted average price of the share over the past three months, which would produce a price of some 15 euros a share. "These will be hard negotiations, no question. It's about a great deal of money for all the shareholders. A very great deal of money," he said. Founded MobilCom in 1991, Mr. Schmid vowed to fight for his interests as its biggest shareholder: "I now have my head free to represent my interests as a shareholder and the interests of other shareholders." The chief's ouster is one of the conditions set by a syndicate of 17 banks owed some EUR4.7 billion. The debt was scheduled to be refinanced at the end of next month. Under its agreement with France Telecom, the banks agreed to refinance 90% of the amount in exchange for a bond convertible into France Telecom stock. The other condition agreed by the parties is the inking of a 1.1- billion-euro vendor financing deal with equipment suppliers Ericsson and Nokia. France Telecom is confident a deal with these suppliers will be reached shortly. The French group said last week that it will start negotiations with Mr. Schmid once the pact with suppliers is already in place. PHILIPP HOLZMANN: Heijmans Pulls Out of Talks Over Domestic Units ----------------------------------------------------------------- Dutch construction group Heijmans Nederland B.V. surprisingly broke talks with troubled German counterpart Philipp Holzmann, throwing out the window the possibility of a wholesale rescue for the domestic operations. "I no longer see an opportunity for a big solution," insolvency administrator Ottmar Hermann conceded Tuesday, referring to efforts of selling most of the domestic operations to one investor. A spokesman for the Dutch group explained that the talks were surrounded by uncertainties from the beginning. Accordingly, there were many question marks. The spokesman also admitted that a big factor for the decision to walk away was the refusal of the banks to finance the new company into which Holzmann's domestic activities would have been integrated. In addition, the risks involved in a number of individual divisions were simply too big, the spokesman said as opposed to Mr. Hermann's insistence that he couldn't find any risks that were insurmountable. As this develops, it appears that Heijman's plan to acquire Franki Grundbau and Dubbers Malden and the independent unit in Grafenwohr is also doubtful. The Dutch group had already signed a letter of intent to take over these units. In Heijmans' view, the above deal is not affected by the cancellation of talks involving the domestic units, but to Mr. Hermann the deal is now shaky. "Of course we will continue to talk with Heijmans on these three points. But we are also working on different solutions," the insolvency administrator said. The domestic operations include Holzmann's main German sites in Dusseldorf, Frankfurt and Munich, which together account for some 600 of the 3,200 employees of the group. This is not the first time that potential bidders had backed out of a possible deal with the group. The paper says during the two-month negotiation with Heijmans, a number of property developers had also walked away. "This meant that Holzmann's attractiveness was greatly diminished," one banker told Handelsblatt. ============= H U N G A R Y ============= DUNAFERR RT: Government Not Amenable to Bankruptcy Proposal ----------------------------------------------------------- The government, which controls majority of Dunaferr Rt, has dismissed suggestions to force the steel company into bankruptcy to solve its massive debts and restructure the business. According to the Budapest Business Journal, the State Privatization and Holding Rt or APV, the entity that holds the government's stake in Dunaferr, is opposed to the plan. "The government is ready to take part in maintaining the continuous operation of Dunaferr and in its future reorganization, despite the fact that its opportunities are restricted by EU directives and budgetary considerations," said the APV in a statement. "Dunaferr is not in bankruptcy, and neither the government nor APV plans to solve its problems by driving it into bankruptcy," the statement read. Speaking before parliament's economic committee last week, Peter Jancso, considered to be a potential pick for the top job at Dunaferr, said the government should drive the company into bankruptcy in order to speed up its reorganization. He said the company's liabilities and debt to suppliers could be reduced by 15% to 30% this way. Mr. Jancso's suggestion is also shared by Boston Consulting Group, whose review of the company concluded that extreme measures are necessary at Dunaferr. The study, according to the paper, projects an overhaul to cost between Ft50 billion and Ft100 billion (EUR206 million and EUR413 million). The study also allegedly said that the bill would be closer to Ft50 billion if Dunaferr cut its current 8,400 workforce by at least 3,500. In addition, the consultant also suggested further infrastructure developments in the long term, with total cost ranging between Ft75 billion and Ft215 billion. Citing the company's financial report, the paper says the steel manufacturer had revenues of about Ft161 billion last year, but this did not matter because of pre-tax losses of Ft8.6 billion. The report says this was primarily due to the fall in world market price of steel and currency fluctuations. In the first quarter, Dunaferr reported pre-tax losses of Ft5.4 billion and the company's debt to equity ratio reportedly reached 70%. The company blames the limitations on steel exports for the huge losses in the quarter. These limitations were established by the EU early this year to counter a similar move by the U.S. Executives interviewed by the Budapest Business Journal project the company to lose revenues of up to Ft5 billion this year if the system remains in place. Meanwhile, the paper says incumbent CEO Laszlo Toth is expected to be replaced on June 28, when the company holds its annual general meeting. Potential replacements include Laszlo Farkas, currently the head of Dunaferr's trading unit in Germany, or Laszlo Szucs, the head of Dunaferr Steel Works Kft. Mr. Jancso, who is chairman of home improvement materials manufacturer Graboplast Rt, is also a strong contender for the job. ========= I T A L Y ========= FIAT SPA: Chairman Says Group Will Float 35% of Prized Ferrari -------------------------------------------------------------- Thirty-five percent of Ferrari, the closely held car division of heavily indebted industrial group Fiat SpA, will soon be opened to public ownership, reports the Associated Press. Floating the famed sports car brand was among the strategies announced by the group to cut its debts last month, but the exact proportion of the stake was never known until the disclosure by Chairman and CEO Paolo Fresco last Friday. Initially, the stakes would be listed in the Milan stock exchange. A New York listing is expected shortly after that. "There's lot of pressure in New York to have Ferrari listed there, but the filing procedure takes time," said Mr. Fresco, who also forecast the listing happening later this year. At present, there are only two shareholders in Ferrari: Fiat with 90% and the Ferrari family with 10%. Mr. Fresco, meanwhile, reiterated that Fiat Auto is not for sale, at least for now. As regard aerospace unit Fiat Avio, light truck unit Iveco, or agricultural vehicles unit CNH Global NV, the chairman said they are not definitely on the block. "[Those are] strategic assets," Mr. Fresco said. He, however, said that the robotic unit Comau would be spun off. The group is under pressure to cut its EUR6 billion-debt by half this year or else risk triggering a clause in an earlier agreement with creditor banks, which gives said lenders the power to dispose assets to satisfy their credits. FIAT SPA: Agricultural Equipment Co. Aims for Profit in 2002 ----------------------------------------------------------- Paolo Monferino, President, CEO and Director of agricultural vehicles and equipment company CNH Global NV (CNH) said he expected CNH to make a small net profit in 2002, the Dow Jones Newswires said. This development comes after the launch of eight of CNH's new product lines in Madrid, of which Fiat holds 85% stake, announced its goal Tuesday as merger negotiations develop. According to Monferino, the new tractor and combine models will regain market share that CNH previously lost. Monferino said that while sticking to the dual New Holland and Case brands and distribution systems, CNH will moving to a common production platform would lead to an additional US$280 million of synergies between the two, with a further US$200 million of savings coming when the industry cycle moves higher. By 2004, almost all CLH tractors of both brands will be built on this common platform, Monferino said. CNH estimates a total of US$850 million in synergies by 2004. This target its hight compared to its original US$450 million target. The company aims another US$250 million in savings by reducing total manufacturing plants to 39 from an original 60 and from 44 currently, which may effect 1,000 in job redundancies. Reducing suppliers and sharing in their resulting scale efficiencies will rake in US$270 million of savings. CNH also intends to scale down its spare parts depots to 31 from 45. In addition, the group aims to cut sales, general and administrative expenses. ===================== N E T H E R L A N D S ===================== KPN NV: Signs Primafoon Retail Outlet Takeover Agreement With RDC ---------------------------------------------------------------- KPN NV and Retail Development Company (RDC) signed on June 25, 2002 an agreement under which RDC will take over 37 Primafoon retail outlets run by franchisees. RDC will also acquire ten of KPN's own Primafoon outlets that were due to be closed, KPN revealed Tuesday in a statement to the press. From September 1, 2002, the outlets acquired by RDC will be renamed "Tell-Me". Tell-Me will expand the present range of products in the outlets concerned and will start selling an extensive range of multimedia products. Tell-Me will become a KPN dealer because of the range of products that it will market. The present 44 employees of the ten own Primafoon outlets will transfer to Tell-Me. KPN will continue to run the Primafoon format and will ultimately retain approximately 100 outlets under its own management. RDC is a fast-growing retail organization that currently operates outlets that include eighty Readshops and twenty-one Plantage bookshops. RDC is a leading party in the market for books, stationery, multimedia, infotainment and office requisites. LAURUS NV: Ex-board Member to Present Alternative Plan Tomorrow --------------------------------------------------------------- Eric Albada Jelgersma, who controls 35% of Laurus NV, has one more day left to convince other shareholders to pick his rescue plan over that of France's Casino SA. According to The Deal, the former board member of the No.2 Dutch food retailer had planned to ask the court last Wednesday to put on hold a vote on the Casino deal, as he tried to finalize his own. The paper did not say whether Mr. Jelgersma succeeded in his court petition. Ruud Kiep, a spokesman for Mr. Jelgersma, told The Deal recently that his boss is planning to unveil his own rescue plan tomorrow, during the annual assembly. "The most important thing for us is to get a delay," Mr. Kiep, who is also managing director of Mr. Jelgersma's real estate company, told The Deal. He said Mr. Jelgersma is working on alternative funding for Laurus and is talking to "several" potential investors, based in the Netherlands and elsewhere. He wouldn't reveal any details, but told The Deal these are financial rather than strategic investors. Mr. Jelgersma, who in May failed to convince the court to extend the deadline for certain Laurus shareholders to apply for voting rights, plans to sell about half the number of shares as the Casino plan but at more than twice the price, The Deal says. His proposal only foresees selling 200 million Laurus shares at about 2 euros (US$1.95) apiece, compared with Casino's 440 million shares at around 0.90 euros each. The former board member has been leading other minority shareholders in opposing the Casino proposal, fearing that it will have a dilutive effect on their holdings. Under the said deal, Casino would take a 38.6% stake in Laurus, but has an option to become a majority shareholder by 2008. The retailer's principal banks -- ING Groep NV, ABN Amro and Rabobank Group -- will also take a 12.4% stake in the Dutch chain. Through the two deals, Laurus can raise EUR400 million, which it plans to use to cut its debt and fund operating costs, the report says. The Deal says Mr. Jelgersma has intensified his campaign against the Casino proposal, hiring Deminor, an independent, Brussels- based firm that champions minority shareholders' rights. This group recently ran local newspaper advertisements urging shareholders to support Mr. Jelgersma's alternative plan. Lazard is advising Laurus on the deal, while N M Rothschild & Sons is advising Casino, the report says. The company's woes emanated from a failed attempt to reorganize its chain of stores. It sought a lifeline from Casino early this year. VERSATEL TELECOM: Seeks to Bring in DF King as Balloting Agent -------------------------------------------------------------- Versatel Telecom International, N.V., seeks to employ DF King & Co., Inc., as ballot and information agent nunc pro tunc to June 19, 2002. DF King was previously engaged as the Debtor's Information Agent in connection with an exchange offer. The Debtor contends that the size and magnitude of its creditor body makes it impracticable for the office of the Clerk of the United States Bankruptcy Court for the Southern District of New York to serve notice efficiently and effectively. The Debtor believes that the most effective and efficient manner of noticing its creditors, is for the Debtor to engage an independent third party to act as an agent of the Court. As Ballot and Information Agent, DF King is expected to: a) relieve the Clerk's Office of all noticing under any applicable rule of bankruptcy procedure; b) file with the Clerk's Office a certificate of service, within 5 days after each service, which includes a copy of the notice, a list of persons to whom it was mailed, and the date mailed; c) maintain an up-to-date mailing list for all entities that have requested service of pleadings in this case, which list shall be available upon request of the Clerk's Office; d) comply, in all material respects, with applicable state, municipal and local laws and rules, orders, regulations and requirements of Federal Government Departments and Bureaus; e) make all original documents available to the Clerk's Office on an expedited, immediate basis; f) provide advice to the Debtor and their other professionals regarding all aspects of the Plan solicitation process; g) mail voting documents to creditors and equity security holders, if necessary; h) receive and examine all ballots and master ballots cast by creditors and equity security holders; i) tabulate all ballots and master ballots received prior to the voting deadline in accordance with established procedures and prepare a vote certificate for filing with the court; and j) promptly complying with such further conditions and requirements as the Clerk's Office may prescribe. The Debtor states that DF King has received a retainer of $23,400 for services to be rendered and expenses to be incurred. DF King will hold this retainer and will apply it to its fees for prepetition services only as approved by the Court, the Debtor assures the Court. Versatel Telecom International, N.V. 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. The Debtor filed for chapter 11 protection on June 19, 2002. Douglas P. Bartner, Esq. at Shearman & Sterling represents the Debtor in its restructuring efforts. When the Company filed for protection from its creditors, it listed $2,017,758,399 in total assets and US$1,605,897,821 in total debts. =========== P O L A N D =========== NETIA HOLDINGS: Creditors Accept Arrangement Proceeding Plan ------------------------------------------------------------ Netia Holdings S.A., Poland's largest alternative provider of fixed-line telecommunications services, Teusday announced that the majority of creditors of Netia Telekom S.A., one of its subsidiaries, representing over 98% of total value of claims voted on June 24, 2002 in favor of the arrangement plan submitted to the court in Warsaw. The arrangement plan for Netia Telekom S.A. is currently awaiting the required approval by the court, which is expected to be issued on June 25, 2002. As previously announced, filings for the opening of arrangement proceedings and approval of the arrangement plans were also made by Netia Holdings S.A. and another of its subsidiaries, Netia South Sp. z o.o., all in connection with Netia's debt restructuring pursuant to the Restructuring Agreement signed on March 5, 2002. Voting by creditors is scheduled for Netia Holdings S.A. on June 28, 2002; the date for voting of creditors of Netia South has not yet been set. Detailed conditions of the arrangement plan for Netia Telekom S.A. accepted Monday include the following: 1. 91.3 % of the debts subject to the arrangement plan will be written off; 2. Creditors will be repaid in annual installments; 3. Installment obligations will be denominated in Polish zloty, will be zero coupon and shall be payable on the last day of each consecutive calendar year during the period when the arrangement plan is in force: a) The first installment payable on December 31, 2007 shall be equal to 8.5% of the reduced claims subject to the arrangement; b) The second installment payable on December 31, 2008 shall be equal to 8.5% of the reduced claims subject to the arrangement plan; c) The third installment payable on December 31, 2009 shall be equal to 17% of the reduced claims subject to the arrangement plan; d) The fourth installment payable on December 31, 2010 shall be equal to 17% of the reduced claims subject to the arrangement plan; e) The fifth installment payable on December 31, 2011 shall be equal to 24.5% of the reduced claims subject to the arrangement plan; and f) The sixth installment payable on December 31, 2012 shall be equal to 24.5% of the reduced claims subject to the arrangement plan. 4. Minor creditors' claims will be repaid in full commencing on the date when the decision becomes non-appealable, and thereafter on the due dates of respective claims. A minor claim shall be defined as any claim of not more than PLN 3,000,000 inclusive, in compliance with an approved list of receivables; and 5. The obligations under the arrangement plan will not be secured by any form of security interest. Contact Information: Anna Kuchnio Netia Holdings investor relations Telephone: +48-22-330-2061 =========== S W E D E N =========== SONG NETWORKS: Focuses on Synergies and Efficiencies ----------------------------------------------------- Song Networks Holding AB announced Tuesday organizational changes in Song Networks Holding AB and Song Networks AS in Norway for an additional focus on synergies and to gain further efficiency within the Group Song Networks -- www.songnetworks.net -- is further focusing on efficacy gains with stronger focus and defined work tasks and thereby improved efficiency. To ensure a powerful presence in the local market and at the same time have the ability to leverage on the Nordic opportunity and on the possibility of having economies of scale within the Group some organizational changes are made in Song Networks Holding AB as well as in Song Networks AS in Norway. The Network operation, formerly at Holding, is decentralized to be closer to the customers in the respective countries. In Norway the changes are being made as another step in integration of the geographical operative units - fewer managers, flat organisation with reduced layers, and centralized support functions. In addition to sales productivity programs such as broadened sales distribution through partners and integrators, efficiency is to be reached by structural changes such as establishment of centralized units for sales support and administration, order processing and business analysis, outsourcing as well as cost reductions in general. Costs reductions will primarily be made in SG&A, including personnel. A total of approximately 30 employees are made redundant in the Norwegian organization and in the parent company, Song Networks Holding AB. The restructuring is expected to generate annual savings of approximately SEK 19 million and restructuring charges of approximately SEK 9 million in the second quarter. Formerly Tele1 Europe, Song Networks is a data and telecommunications operator with activities in Sweden, Finland, Norway and Denmark. The Company offers broadband solution for data communication, internet and voice to businesses in the Nordic region. 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 34 offices located in the Nordic region. Contact Information: Song Networks Holding AB Tomas Franzen, CEO Telephone: +46 8 5631 0111 Mobile: +46 701 81 01 11 Email: tomas.franzen@songnetworks.net Song Networks Holding AB Jenny Moquist Investor Relation Manager Telephone: +46 8 5631 0219 Mobile: +46 701 810 0219 Email: jenny.moquist@songnetworks.net Song Networks AS Ketil Kivedahl Managing Director Telephne: +47 2150 2450 Mobile: +47 400 00 450 Email: ketil.kivedahl@songnetworks.no =========================== U N I T E D K I N G D O M =========================== ENERGIS PLC: Apax, Carlyle Threaten to Cancel Bid Next Week ----------------------------------------------------------- The consortium composed of venture capitalists is threatening to pack up and retreat from the negotiating table early next week if a deal is still far from being struck by then. According to the Daily Mail, Apax Partners and Carlyle Group are growing tired of lengthy discussions, ostensibly with creditor banks, which have a first say on the future of the company. Yesterday, Troubled Company Reporter-Europe said the banks led by Royal Bank of Scotland, Barclays Capital and HSBC are also becoming exasperated with the position of the consortium to have them roll over 60-70% of the GBP700 million they have already lent to the UK business. In exchange, the venture capitalists are offering banks shares or warrants. The consortium is reportedly planning to pay only GBP690 million for taking over the business, way below the GBP1 billion initial price tag attached to it in February, when the auction was opened. Energis is believed to have a turnover of about GBP800 million and EBITDA of some GBP160 million, the report said. ENERGIS PLC: Wins Three-year Contract From Virgin Mobile -------------------------------------------------------- Energis plc -- www.energis.co.uk -- has won a three-year contract to supply telephony and data network services to leading mobile phone company Virgin Mobile. The Energis solution will enable Virgin Mobile to manage all in- bound calls to its call center in Trowbridge and provide real- time monitoring and control of call traffic. This will allow Virgin Mobile to maximize the efficiency of its call center, leading to a better service for its customers and more flexible staffing. Energis will also be responsible for managing Virgin Mobile's existing point-to-point data network. The new services from Energis are expected to yield cost savings of approximately 25% for Virgin Mobile and are scalable to support future growth. Rob McLeod, managing director of Corporate Solutions at Energis, said: "Having recently been chosen to provide hosting services to Virgin Money, we are delighted that Virgin Mobile has now awarded us with a telephony and networking contract. We look forward to supporting their business over the coming years." Jon Kandiah, Technical Services Director at Virgin Mobile, said: "Energis impressed us with their dedication to supplying not just the technology we need, but also the people we need to make things happen. They are obviously committed to our success - a clinching factor in our selection." Energis is a leading UK telecommunications, internet and e- business solutions provider. It is focused on the business marketplace offering a portfolio of data, voice, call centre, connectivity, complex managed hosting and managed application services. Energis hosts more than 25,000 commercial websites and around 1 billion call minutes a week are routed over the Energis network. Virgin Mobile is now established as the most successful virtual network operator in the world, and is the U.K.'s fifth network. Since its launch in November 1999 it has attracted over 1.75 million customers, making it one of the fastest growing mobile phone companies in history. Virgin Mobile is a 50:50 joint venture company between Sir Richard Branson's Virgin Group and Deutsche Telekom's T-Mobile, and is the U.K.'s first mobile virtual operator. MARCONI PLC: Acquires New Customer to Provide Network in China -------------------------------------------------------------- Beijing Power, the power supply company for China's capital city, has selected Marconi to provide a new multiservice (voice, video and data) network to improve the automated production and management, plant administration and information transfer associated with managing the generation and distribution of electricity in Beijing and its immediate surroundings. Marconi -- http://www.marconi.com-- announced Monday the company will provide Beijing Power with the latest multi-service equipment and solutions, including its ASX4000 core network switches, as well as its ASX1000 and ASX200BX switch routers. The new network will support Beijing Power's revenue generation activities by providing a reliable network communication and more cost-efficient internal automated production and management. Mr. Kim Low, managing director of Marconi North Asia said, "Marconi has built a number of successful long-term working relationships with enterprises in the power supply industry and our full range of broadband communications products contribute to making this metropolitan network reliable and flexible enough for such mission-critical applications. This win reinforces our leading position in the telecommunications market, as well as in the public utilities sector." The project will be complete by September 2002. This win follows the contract awarded to Marconi in January 2002 by China South Power, to supply a network based on synchronous digital hierarchy (SDH) equipment. Marconi's success in the public utilities sector is based on its track record in delivering flexible, reliable and future-proof network solutions. Marconi plc is a global telecommunications equipment and solutions company headquartered in London, England. 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. P&O PRINCESS: Defers Bonus, Will Extend Retention Periods --------------------------------------------------------- P&O Princess Cruises announced in a statement Thursday that, on the recommendation of the Remuneration Committee, the Board has decided to extend by one year the required retention period for new and existing awards made to directors under the Plan. The retention period for awards will now be three years, as recommended by the Combined Code. P&O Princess Cruises plc is a leading international cruise company with some of the strongest cruising brand names: Princess Cruises in North America; P&O Cruises, Swan Hellenic and Ocean Village in the U.K.; AIDA and A'ROSA in Germany; and P&O Cruises in Australia. The current complement of 19 ships offering 30,730 berths is set to grow in the next three years with six new ocean cruise ships on order. P&O Princess Cruises has approximately 20,000 employees worldwide and carried over one million passengers in 2001, generating a revenue of approximately US$2.5 billion (approximately GBP1.7 billion). Headquartered in London, P&O Princess Cruises' ordinary shares are quoted on the London Stock Exchange and as ADSs on the New York Stock Exchange (under the symbol "POC"). RBG RESOURCES: WestLB Admits Possible Loss in Bogus Trades ---------------------------------------------------------- German bank Westdeutsche Landesbank Girozentrale admits it has a substantial exposure in the fraudulent trading at RBG Resources, but would not say how much, says AFX News. But German daily Sueddeutsche Zeitung claims the bank lost at least EUR200 million when the tin trader went under. The High Court in London ordered the formal liquidation of RBG Resources on June 12, according to the Troubled Company Reporter-Europe in its June 14 issue. TCR-Europe said the court ordered the windup upon a petition initiated by WestLB Panmure, the London-based arm of German bank Westdeutsche Landesbank Girozentrale. The bank is seeking payment for GBP11 million worth of loans. Last month, Mr. Justice Laddie of the High Court opined that there was evidence indicating that the trading company may have indeed misled creditors by declaring bogus deals. Stephen Smith, QC for the liquidators, disclosed during one of the hearings that the company is owed US$478 million from more than 100 trading partners around the world. The liquidators, from Grant Thornton, estimate about US$450 million of these funds are overdue. The report said the full extent of the fraud is not yet clear, but some sources close to the investigation are suggesting it could be more than US$600 million. Multi-millionaire Viren Rastogi, who was arrested during a raid by the Serious Fraud Office last month on the company's offices in Piccadilly, London, is named one of four defendants by the liquidators. The other three individuals are Gautan Majumdar and Anand Jain, both directors of RGB; and a senior manager. Liquidators are accusing the four of fabricating evidence of substantial trades that were used as collateral for loans from banks, TCR-Europe said. TELESENSKSCL AG: Telesenskscl Ltd, Scotland in Receivership ----------------------------------------------------------- The Executive Board of TelesensKSCL AG announce that the Board of Directors of their subsidiary company, TelesensKSCL (Holdings) Limited, and of its subsidiary TelesensKSCL Limited, Edinburgh/Scotland have requested their banker, Royal Bank of Scotland plc, to appoint a receiver to both companies, the IT group announced Tuesday. The appointment of a receiver is a UK insolvency procedure. This has become necessary because, following the insolvency of TelesensKSCL AG -- http://www.TelesensKSCL.com--, the directors have been unable to raise finance to fund ongoing operations in these companies. It is expected that the receiver will be in discussions with the future insolvency administrator of TelesensKSCL AG. Contact Information: Nina von Moltke Investor Relations TelesensKSCL AG Global Solutions Ferdinand-Porsche-Strasse 1 51149 Cologne Telephone: +49 2203 91 28 888 Fax: +49 2203 91 28 150 Email: investor@telesenskscl.com TELESENSKSCL: Management Buyout Remains Possible, Say Sources ------------------------------------------------------------- A management buyout for the Edinburgh-based unit of TelesensKSCL AG could be possible within days or weeks, even as Deloitte & Touche prepared Wednesday to take over the reins as receiver. "It's a possibility. Financial backing is being sought," an unnamed company insider told The Scotsman. Chief technology officer Ash Marston told the paper that negotiations with two interested parties are still ongoing, "but they are very complex and very time consuming." "We have simply run out of time. We are, however, still hopeful that the company can be sold as a going concern soon," said Mr. Marston, who did not confirm whether management is by itself preparing a buy out offer. The Scottish subsidiary is considered financially viable, accounting for more than 80% of group revenues. Troubles from Germany only spilled over to it after bankers Royal Bank of Scotland and Bank of Scotland prevented it from transferring funds to its parent TelesensKSCL AG. The group started searching for a buyer five months ago, according to The Scotsman, but the Scottish unit failed to attract a buyer prepared to run it as a stand-alone operation or incorporate into a larger organization. Germany's Telesens acquired KSCL in 2000 for GBP129 million. Last year, the Edinburgh unit, which produces telephone billing systems, saw its profits rise 36% from GBP4.9 million to GBP5.3 million. Before the takeover, KSCL was one of Scotland's largest software firms and had planned to take on up to 1,000 more staff as part of a global expansion, the paper says. ********* 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 and 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 * * *