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/raid1/www/Hosts/bankrupt/TCREUR_Public/020705.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, July 5, 2002, Vol. 3, No. 132 Headlines * B E L G I U M * LERNOUT & HAUSPIE: Class Suit vs. Lernout Officers Can Go Forward * F R A N C E * ALCATEL: Network Hardware Group Comments on Liquidity Status ALCATEL: Installs GSM Tech. Assistance Center for Latin America VIVENDI UNIVERSAL: Board Accepts Resignation of Messier as CEO VIVENDI UNIVERSAL: Updates on Cash Position and Liquidity Status VIVENDI UNIVERSAL: Appoints Jean-Rene Fourtou as Chairman and CEO VIVENDI UNIVERSAL: News Corp Cuts Offer to Buy Vivendi PayTV Arm VIVENDI: Shares Plunge Despite Management Change * G E R M A N Y * CONSORS DISCOUNT-BROKER: Dapper Leaves Board of Management BABCOCK-BORSIG: New Hope for Babcock Rescue, U.S. Ops Eyed by OEP MUHL PRODUCT: Construction Supplier Begins Insolvency Proceedings PHILIPP HOLZMANN: Heijmans Ready to Buy Dubbers, Franki QIVIVE: Starts Insolvency Proceedings, Sheds Frankfurt Ticket TELESENSKSCL: Convergys Buys Business and Assets TelesensKSCL LTD * I R E L A N D * ELAN CORPORATION: Credit Ratings Lowered to BBB- Close to Junk * U N I T E D K I N G D O M * ACCESS COMMUNICATION: Receivers Sell Business as Going Concern BIOCOMPATIBLES INTERNATIONAL: Update on Stent Drug, Confirms AGM BOOKHAM TECHNOLOGY: Announces Closure of Two Production Plants BOOKHAM TECHNOLOGY: Notification of Interest in Shares COMPASS GROUP: Autogrill Will Not Buy Compass' Assets EUROTUNNEL PLC: Announces Pricing for GBP 740MM of Bonds MTK CONTAINERS: Administrators Sell MTK's Business and Assets NTL Announces Final Approval of Previously Announced Financing PICTOR INTERNATIONAL: Receivers Sell Stock Photographic Agency PMC HOLDINGS: Administrators Invite Buyers for Chemicals Supplier RBG RESOURCES: Liquidators Sell Copper Production Plant RBG RESOURCES: Liquidators Sell RBG's Copper Smelting Interests SMITH & MCLAURIN: Interim Managers Sell Company as Going Concern WORLDCOM: IDT Ready to Offer USD 5BB for Worldcom Assets WORLDCOM: Bank Lenders Formally Disclose US $4.25BB Loan Defaults YORKSHIRE MOULDS: Receivers Sell Manufacturing Business ============= B E L G I U M ============= LERNOUT & HAUSPIE: Class Suit vs. Lernout Officers Can Go Forward ----------------------------------------------------------------- A lawsuit against four senior officers of bankrupt Belgian software company Lernout & Hauspie Speech Products NV can now proceed, ruled a Boston federal judge, news from Dow Jones says. Amid the group's accounting scandal, the class action suit was filed against the following officers: co-founders Jozef Lernout and Pol Hauspie, former board member Nico Willaert and former chief executive Gaston Bastiaens, the report adds. Lernout & Hauspie, the former European technology star filed for bankruptcy protection in November 2000 after the company experienced financial woes following revelations on an accounting fraud, the paper said. The company's problems begun when in 2000, the Wall Street Journal raised questions regarding the company's questionable fast growth in revenue. An internal audit later revealed that the company had been booking USD 373 million in non-existent revenue from 1998 to mid-2000, Dow Jones said. In their request for the dismissal of the case, the defendants argued that they were responsible for such accounting misstatements. But Boston-based Judge Saris, countered that each of the defendants' signature appeared in the 1999 Form 10-K document, which contained exaggerated and false financial data, the daily said. The defendants, Lernout, Hasupie and Willaert were nabbed in Belgium on April 2001. They were charged with forgery and stock manipulation. Bastiaens on the other hand, was arrested in the U.S. He was extradited in Belgium to answer to several similar charges. Meanwhile, there are still pending motions for the dismissal of the case on behalf of other defendants, who include Lernout's former auditor, KPMG Belgium and external auditors, the report indicated. =========== F R A N C E =========== ALCATEL: Network Hardware Group Comments on Liquidity Status ------------------------------------------------------------ Alcatel is presently under negative credit watch by Standard & Poor's and Moody's, which may result in downgrades of its current ratings. According to the group's statement to the press Wednesday, Alcatel confirms that its credit lines and vendor financing arrangements currently in place are not affected by potential credit rating downgrades. Rating trigger clauses were removed earlier this year when the Group's credit facilities were successfully re-negotiated with several financial institutions. As of June 30, 2002, Alcatel has more than EUR 4 billion cash on hand and its net debt has been reduced below EUR 2 billion. Total debt maturing within the next 12 months amounts to around EUR 200 million. Over the next 24 months, total debt repayments represent approximately an additional one billion euros with the next significant repayment taking place in September 2003. Alcatel has generated positive operating cash flow both in Q1 and Q2 2002 and expects full year operating cash flow to be positive as well. Alcatel is in a position to meet all its financial obligations. Alcatel designs, develops and builds innovative and competitive communications networks, enabling carriers, service providers and enterprises to deliver any type of content, such as voice, data and multimedia, to any type of consumer, anywhere in the world. Alcatel posted EUR 25 billion in sales in 2001 and has a workforce of 99,000, operating in more than 130 countries. ALCATEL: Installs GSM Tech. Assistance Center for Latin America --------------------------------------------------------------- Alcatel announced today the installation of a Technical Assistance Center (TAC) in Brazil for GSM/GPRS mobile networks that will service clients in Latin America. A group of Brazilian engineers - trained to supply 24-hour technical support to the local mobile operators - will be based in this TAC. Alcatel has sold its GSM/GPRS technology in Brazil, Costa Rica, El Salvador and Paraguay. Part of a network of nine Alcatel TACs located around the world, the Brazilian center's activities will include the planning of the radio network as well as its optimization. According to Carsten Smago, vice president, Mobile networks, Alcatel Latin America: "Alcatel has closely followed the technological evolution of mobile networks in Latin America. It has consequently structured itself and created the necessary competence to service the new entrants as well as the existing operators choosing the GSM technology as the evolution path to 3G. As Asia, Latin America is, doubtless, a promising market". Marc Nieto, general manager of Alcatel's services activities in Brazil commented: "Alcatel is one of the few companies able to execute turnkey projects, with solutions developed specofically for the Brazilian market and now for the Latin American market. Alcatel manages all aspects of the project from site acquisition, civil construction and equipment installation to Operation and Maintenance (O&M) ". In Brazil, Alcatel announced in July 2001, the signature of a contract of US$ 275 million with Oi, Telemar's mobile operator, to supply a GSM 1800/GPRS turnkey network. The contract forecasts the project's complete management, including the network planning and implementation, sites acquisition and building, as well as the network's operation and maintenance in the Northern region of Brazil, covering an area of more than 70 cities in the estates of Piaui, Ceara, Maranhao, Para, Amazonas, Amapa and Roraima. In April 2002, Alcatel announced the Operation and Maintenance contract for the Oi network in these seven estates. In Paraguay, Alcatel installed for Hola Paraguay S.A., a PCS (Personal Communication Services) network turnkey in the capital of the country, Assuncion and suburbs. Design to service more than 100,000 subscribers, the network includes radio stations, controllers, operation and maintenance, a switching mobile platform based on Alcatel' Evolium NOSR/E10 message. Also, billing systems and customer care, voice mail and short messages service, besides prepaid, equipment for interconnection to the backbone via microwave radios and all the civil related works (towers, shelters, etc.). Alcatel has also supplied equipment to Personal, mobile division of CTE (Compania de Telecomunicaciones de El Salvador), a complete GSM 1900 network (central and radio networks) and will continue to support the operator in its aggressive expansion plans. With that contract, Alcatel has entered a new market, substituting an existing D-AMPS network by a GSM 1900. The subscribers' migration from the D-AMPS network to GSM was done without interrupting the service. All the substitution process was transparent for the subscribers who could continue to use their mobile phones. Most recently, Alcatel announced the signature of a contract for US$149 million with ICE (Instituto Costarricense de Electricidad), incumbent telecommunications operator in Costa Rica, supplying a complete GSM 1800/GPRS turnkey network in the whole country. The network will support up to 400,000 lines and will surpass the D-AMPS former network. It will offer advanced mobile packet data services including Internet access m-commerce and data wireless transactions reaching up to 115 Kbps speed - approximately twice the speed of the fastest dial up modems. Thanks to Alcatel's end-to-end Evolium solution, ICE may guarantee a natural migration to 3G. VIVENDI UNIVERSAL: Board Accepts Resignation of Messier as CEO -------------------------------------------------------------- The Board of Directors of media giant Vivendi Universal accepted Wednesday the resignation of Jean-Marie Messier from his functions as Chairman and Chief Executive Officer and Director of Vivendi Universal. Investor Relations: Paris Laura Martin Telephone: +33 (1)71-71-1084; 917-378-5705 Laurence Daniel Telephone: +33 (1)71-71-1233 New York Eileen McLaughlin Telephone: +(1) 212.572.8961 VIVENDI UNIVERSAL: Updates on Cash Position and Liquidity Status ---------------------------------------------------------------- Vivendi Universal announced in its statement on July 3 that in light of the Moody's and Standard & Poor's downgrades of Vivendi Universal debt ratings of July 1 and 2, 2002, respectively, as well as other events that have occurred over the past several days, including the resignation of Mr. Jean-Marie Messier from his positions at Vivendi Universal, Vivendi Universal believes it is important to update the investor community and the markets generally regarding its short-term cash position and liquidity. Since June 25, 2002, the following has occurred: Unused credit lines of EUR 900 million matured and a EUR 100 million credit line was terminated because of the credit rating downgrades; however, because other banks have removed or offered to removed the credit rating triggers from their financings, there remain only approximately EUR 70 million of existing credit facilities that are potentially at risk because of credit rating triggers. EUR 900 million of cash was used to repay (i) a EUR530 million credit line linked with the B to B and health assets (ii) a EUR100 million credit line that matured (iii) EUR160 million of commercial papers that matured, and (iv) a loan of EUR110 million from Cegetel. Vivendi Universal received net proceeds totalling EUR 1.45 billion from the following disposals of: (i) the B to B and the health assets (ii) certain real estate assets (iii) the remainder of its shareholding in Vinci and (iv) the final payments with respect to recently announced Vivendi Environnement disposal. As of July 3, 2002, Vivendi Universal has EUR1.2 billion of cash and EUR1.6 billion in unused credit lines of which at least EUR600 million can be used for general corporate purposes and the rest can be used as backing for certain types of its commercial paper (EUR400 million of which is currently outstanding). Payments totalling approximately EUR1.8 billion remain due by the end of July. These will be financed from resources totalling approximately EUR2.4 billion comprising cash and draw-downs on existing credit facilities. Several of Vivendi Universal's credit lines automatically roll over at certain specific dates in accordance with their terms, subject to standard material adverse change provisions. Of those, approximately EUR3.8 billion are scheduled to roll-over in July. In addition, Vivendi Universal has initiated discussions with its main credit banks with a view to putting in place new credit facilities as soon as feasible. While Vivendi Universal has a short-term liquidity issue, the value of the group's broad and diversified assets by far exceed that of its debt. The new management is committed to a program of aggressive deleveraging and greater transparency in order to restore health and confidence in Vivendi Universal. VIVENDI UNIVERSAL: Appoints Jean-Rene Fourtou as Chairman and CEO ----------------------------------------------------------------- The Vivendi Universal Board of Directors met on July 3, 2002 and decided to elect three new directors: Jean-Rene Fourtou, who replaces Jean-Marie Messier; Claude Bebear, Chairman of the Supervisory Board of AXA, replaces Jean-Louis Beffa; and Gerard Kleisterlee, CEO of Philips, replaces Philippe Foriel-Destezet. These new elections cover the remaining term of office of the directors who have been replaced. The Board then unanimously approved the appointment of Jean-Rene Fourtou as Chairman and CEO of Vivendi Universal with immediate effect. The Board of Directors also decided unanimously to: create a financial committee chaired by Claude Bebear and a strategy committee to be headed by Henri Lachmann, give highest priority to creating financial transparency and resolving short term financing issues. Following the Board meeting, Jean-Rene Fourtou said: "In the next two weeks, all possible measures will be taken to improve the situation, particularly in terms of the short-term cash position. I have every confidence that the company has the strengths to address its liquidity issues and to find the appropriate solutions in the immediate term. "In addition, a financial and strategic diagnosis will be made in under three months. Two committees have been set up to carry out this assignment within the Board of Directors. In addition, two working groups comprising people from inside and outside the company will be created. Their mission will be to prepare the work and decisions of the Board of Directors. "The Board of Directors and all of the company employees remain fully prepared to do their utmost to ensure the continued strengths of our operations. Vivendi Universal has everything it needs to be optimistic about the future, as we begin to restore confidence and health to our company." VIVENDI UNIVERSAL: News Corp Cuts Offer to Buy Vivendi PayTV Arm ---------------------------------------------------------------- News Corporation has cut a third off its offer of EUR 1.5 million to buy Vivendi Universal's Italian pay-TV platform Telepiu, said closes sources on Tuesday, a report acquired from the Financial Times said. The Financial Times said "the lower offer comes three weeks after Vivendi signed a memorandum of understanding with News Corp as it sought to unload loss-making Telepiu for EUR1.5 billion in cash and debt, and reduce Vivendi's own debt by EUR1.2 billion." But the agreement can hinder News Corp from finding investors willing to take 50% of the merged entity composed of Telepiu and News Corp's Italian Pay-TV, Stream, the daily said. It was last week that News Corp started talks with Vivendi to lower the price of Telepiu. The slashed offer is seen to reflect a huge reduction on the cash portion of the original offer of about EUR 650 million so that new investors could acquire reduced equity, the paper said. VIVENDI: Shares Plunge Despite Management Change ------------------------------------------------ The change in management in Vivendi Universal did not help prevent another massive shares sell-off, a report from the Independent said. Shares of the debt-laden company closed down another 22% at EUR13.90 yesterday, lowering its market value to EUR15 billion, a price lesser than its EUR67 billion value at the start of the year, the daily reported. The Independent said the market is still nervous despite the resignation of Mr. Jean-Jacques Messier as chairman. Concerns are still brewing among investors as to the capacity of the company to find EUR6 billion as payment for loans due the end 2002. Vivendi's board met last night to discuss a rescue plan for the troubled company. It is said that a chain of disposals are now foreseen to help the company raise funds. The head of BNP Paribas, Vivendi's major lender tried to pacify the market turmoil saying the group is not facing a solvency crisis, the paper said. Meanwhile, Vivendi's new chairman, Mr. Jean-Rene Fourtou is considered capable of stabilizing the company's status through a major overhaul. He said to have the political support of no less than France's President Chirac, the Independent reported. ============= G E R M A N Y ============= CONSORS DISCOUNT-BROKER: Dapper Leaves Board of Management ---------------------------------------------------------- Kay Dapper is leaving the Board of Management of Consors Discount-Broker AG with immediate effect at his own request by cordial mutual agreement, the Nuremberg-based investment banking group announced Wednesday. Kay Dapper joined Consors in 1997 and has been a member of the Board of Management since August 2000. In this position he was responsible for the division of Services / Operations and the Smart Investors customer division. Responsibility for Service / Operations will now be assumed by Karl Matthaus Schmidt, CEO of Consors and Deputy CEO in the Executive Committee of the CortalConsors Group. The Smart Investors customer division will be taken over with immediate effect by Martin Daut, Managing Director of the Heavy Traders division and a member of the Consors Executive Committee. The Supervisory Board and Board of Management of Consors wish to thank Kay Dapper for his outstanding achievements and his work over the past few years. Kay Dapper has always shown full commitment to Consors and focused his heart and intellect on building up and advancing the company, which had thirty employees at the time. The Supervisory Board and Board of Management greatly regret that Kay Dapper is leaving the company and express the very best wishes for his future. BABCOCK-BORSIG: New Hope for Babcock Rescue, U.S. Ops Eyed by OEP ----------------------------------------------------------------- Beleaguered company Babcock Borsig's U.S. operations is being eyed by One Equity Partners, a unit of the U.S.-based Bank One Corporation, a report obtained from AFX News said. The news came after the company's creditor banks, shareholders and managers were asked to convene yesterday by the prime minister of North-Rhine Wesphalia following its failure to obtain EUR200 million emergency funding. AFX cited Westdeutsche Allgemeine Zeitung as saying that the chances for the sale of Babcock's US operations may spell hope for the company as it struggles to avoid filing for insolvency. The sale of the US operations may fetch EUR 1 billion. In addition, the sale is reported to be part of a break-up plan suggested by Babcock's creditor banks, which include Deutsche Bank AG, among others, the news said. Babcock currently needs EUR700 million to stay afloat. Meanwhile, Babcock is presently considering the disposals of its Swiss waste disposal unit Von Roll Holding AG and French-based Babcock Borsig Power, which finds Alstom SA as an interested bidder, the reports said. MUHL PRODUCT: Construction Supplier Begins Insolvency Proceedings ----------------------------------------------------------------- Three months after the insolvency filing of Muehl AG at the district court Erfurt, insolvency proceedings began on July 1, 2002. The attorneys Rolf Rome brook and Guenter wagner (both Erfurt) were assigned as provisional insolvency managers for Muehl Holding and its eight regional companies. In the past three months, the insolvency managers made a thorough probe on the net assets and competitive position of the Muehl group and its subsidiaries. In the context of an insolvency plan, Muehl AG intends to preserve some of its businesses and assets including: the construction materials supplier Hungen (Hessen), Kranichfeld (Thuringia) together with the Muehl subsidiaries RIB software AG in Stuttgart and the eLogistic24 AG in loop under a roof to be retained. The insolvency managers aim to save jobs by the continuation of its core business when investors may be found or through a management Buy Out and through the utilization of the inventory to serve its its creditors' interest. PHILIPP HOLZMANN: Heijmans Ready to Buy Dubbers, Franki ------------------------------------------------------- Negotiations for the takeover of Phillip Holzmann AG units Dubbers Malden and Franki Grundbau by Heijmans NV have been completed and the signing of contract is on the way, said Heijman chair Jacques Van Den Hoven, a report obtained from AFX News said. According to AFX News, German daily Handelsblatt cited Mr. Van Den Hoven as saying that he is frustrated about the speed by which the process is moving. He hopes for an immediate conclusion of the negotiations. In addition, the German paper cited Holzmann insolvency administrator as saying that the there is no exclusivity agreement---the company is also considering some offers for the units, AFX reported. QIVIVE: Starts Insolvency Proceedings, Sheds Frankfurt Ticket ------------------------------------------------------------- The German sports and events ticket issuer Qivive GmbH has started insolvency proceedings over its assets, reports from the Suddeutsche Zeitung and Financial Times said. The company has sold its stake in Cologne-based Koln Ticket, the reports said. Qivive filed for bankruptcy in April after failing to get cash injection from shareholders and a takeover bid by an investor collapsed. Axel Springer, Deag Deutsche Entertainment, Lufthansa and Start Amadeus own the German company. TELESENSKSCL: Convergys Buys Business and Assets TelesensKSCL LTD ----------------------------------------------------------------- Convergys Corporation, the global leader in integrated billing, employee care, and customer care services, announced Wednesday it has purchased the business and assets of TelesensKSCL Limited (TelesensKSCL) of Edinburgh, Scotland, a subsidiary of TelesensKSCL AG of Cologne, Germany, from the receivers. Nick Edwards, Nick Dargan, and John Reid of Deloitte & Touche were appointed receivers on June 26, 2002, by the Royal Bank of Scotland plc, at the request of the Board of Directors of TelesensKSCL. The closing took place on July 3 in Edinburgh. TelesensKSCL developed and licensed billing systems for voice and data services for mobile networks in the global telecommunications industry. More than 19 million people in 30 countries received their telephone bills through TelesensKSCL's billing and customer care applications. The company's clients included three of Vodafone Group plc's European operations (Ireland, Greece, and Romania), Smartone in Hong Kong, and Finnish mobile operator Radiolinja Oy. The acquisition will also strengthen Convergys' support of two Tier 1 clients it previously shared with TelesensKSCL, mmO2 plc, and Orange France. Convergys will continue to support TelesensKSCL' s products and its existing client base. As a result of the acquisition, Convergys will employ about 230 former TelesensKSCL employees in locations in Scotland and France. "This acquisition is an important development for Convergys as well as for TelesensKSCL's many international communications clients," said Steve Robertson, President of Convergys International. "First of all, this acquisition builds on our publicly stated strategy to accelerate revenue growth and market coverage in billing and customer care internationally. Second, Convergys is a financially stable company and a world leader in billing and customer care. This acquisition brings financial stability and deep operational resources to support TelesensKSCL's clients who faced critical uncertainty about the future of their billing systems with the announcement of TelesensKSCL's insolvency." Specifically, the benefits of the TelesensKSCL acquisition to Convergys include: -- Expanding Convergys' position as one of the top billing and customer care companies in the Europe, Middle East, and Asia markets -- Opening opportunities to provide advanced billing and customer care products to TelesensKSCL's existing client base -- Adding a group of talented employees Convergys Corporation, a member of the S&P 500 and the Forbes' Platinum 400, is the global leader in integrated billing, employee care, and customer care services provided through outsourcing or licensing. We serve top companies in telecommunications, Internet, cable and broadband services, technology, financial services, and other industries in more than 40 countries. Convergys (TM) employs more than 45,000 people in 47 customer contact centers and in our data centers and other offices in the United States, Canada, Latin America, Europe, the Middle East, and Asia. Convergys is on the net at www.convergys.com and has world headquarters in Cincinnati. ============= I R E L A N D ============= ELAN CORPORATION: Credit Ratings Lowered to BBB- Close to Junk -------------------------------------------------------------- Standard & Poors has lowered Elan Corporation's BBB- rating to BB-, three levels below investment grade following the company's admission that it sold rights to future income from medicines in exchange for immediate cash, a report from the Bloomberg said. According to Standard & Poor's, the assigned BB rating means "major ongoing uncertainties or exposure to adverse business, financial or economic conditions," the paper wrote. Furthermore, the rating agency observed that Ireland's biggest drug maker sold more royalty rights than expected. It is said that the company needs more than USD 1 billion buy the rights back, Bloomberg said. The S&P downgrade may lead Elan to engage in more expensive borrowing as investors in the company's debts are pushing for higher returns, the report said. The Dublin-based company has indicated in its annual reports that it has contractual and potential future payments worth approximately USD 4.5 billion that are due in five years, the Bllomber said. Earlier, Elan has already been assigned junk status to its debt by Moody's Investors Service and Egan-Jones Ratings Co. =========================== U N I T E D K I N G D O M =========================== ACCESS COMMUNICATION: Receivers Sell Business as Going Concern -------------------------------------------------------------- Access Communication (UK) Limited (In Administration) The Joint Adminitrators, Steven Drain and David Rolph, offer for sale as a going concern the business and assets of Access Communication (UK) Limited. Major features of the business include: - Turnover circa GBP5 million - Vehicle fleet and equipment - Skilled team of operators Contact Information: Robert Grange Moore Stephens 3/5 Rickmansworth Road Watford WD18 0GX Telephone: +44 (0) 1923 236622 Fax: +44 (0) 1923 245660 BIOCOMPATIBLES INTERNATIONAL: Update on Stent Drug, Confirms AGM ---------------------------------------------------------------- The 2002 Annual General Meeting of Biocompatibles International plc was held today in London, the medical instruments manufacturer announced in its statement to the press. Crispin Simon, Chief Executive, briefed shareholders on the status of the drug-eluting stent programs with Abbott Laboratories and introduced Biocompatibles' new product development programme for PC Gel Systems, a gel matrix containing phosphorylcholine (PC) that can be used in a variety of treatment applications, including drug delivery. The program combines the Company's expertise in PC TechnologyTM polymer systems and drug-eluting devices, and Biocompatibles plans to initiate clinical trials for PC Gel Systems in 2003. The PC Gel Systems program represents the first stage in the strategic review of the business begun in April. Biocompatibles continues to evaluate other opportunities for PC Technology, including other device, therapeutic and licensing applications. The final outcome of this review will be presented at the time of the interim results in September 2002. The Company's cash balance currently stands at GBP 187 million. An Extraordinary General Meeting is scheduled for July 4, 2002 to vote on the proposed GBP 100 million repayment of capital to shareholders and subsequent share capital consolidation. PC Gel Systems have potential applications in a number of treatment areas, including embolization (blocking the blood flow to a tumour or vascular malformation), chemoembolization (where the blocking material provides a platform for drug delivery), filling of aneurysms (balloon-like swellings in the walls of arteries), and bulking of tissue to compensate for a loss of shape or elasticity. PC Gel Systems can be delivered to the targeted area via a micro-catheter. In 1998, Biocompatibles filed patent applications for gel systems (also known as polyionic complexes) containing PC, and their use in the embolization of vessels and the filling of aneurysms. PC Gel Systems will initially be developed for embolization and chemoembolization. The current pre-clinical work is directed toward the treatment of uterine fibroids (benign smooth-muscle tumours of the uterus which can cause pain, bleeding and infertility) and hepatocellular (liver) carcinoma, or HCC. Uterine fibroids and HCC each represent substantial potential markets for embolization therapy. Studies indicate that up to 25% of women may have uterine fibroids, and 10-20% of those require treatment. An estimated 33% of all hysterectomies in the US are fibroid- related. Embolization therapy offers a minimally-invasive alternative for treating this condition. Approximately 1 million people are diagnosed each year with primary liver cancer. Research indicates that HCC, the Company's focus area, is one of the most common malignant tumors in the world. Treatment options include surgical resection of the liver and/or chemotherapy, or liver transplant, but five-year survival rates remain as low as 10% in the US. Embolization therapy provides a minimally invasive alternative and may extend life, particularly when a drug-eluting agent is employed. According to analyst estimates, embolization therapy for uterine fibroids and liver cancer may represent a global market opportunity of approximately USD 950 million. Several competitive embolic products are currently being used for these indications. Biocompatibles' competitive platform is based on the biocompatibility of a PC-containing gel matrix and its ability to elute drugs. A pre-clinical study evaluating PC Gel Systems for use in embolization therapy is underway at Centre de Recherche en Imagerie Interventionelle in Paris and results are expected in September 2002. Following the satisfactory conclusion of the pre-clinical work, the Company intends to commence clinical trials for embolization in 2003 and progress toward chemoembolization. Abbott recently stated that it expects to initiate clinical trials later this year for the BiodivYsio stent coated with its proprietary rapamycin analogue and Biocompatibles' PC Technology. Biocompatibles will earn a 3.5% royalty on the sales of stents in this configuration once launched. In May 2002, Abbott announced that it had sub-licensed the collective rapamycin analogue and PC Technology coatings to Medtronic in exchange for rights to Medtronic's 'single operator' stent delivery system. Abbott indicated in the announcement that this agreement will significantly expand its position in the vascular marketplace. Biocompatibles' royalty stream will grow with any increase in Abbott's sales of PC drug-delivery stents employing technology licensed from Biocompatibles. BOOKHAM TECHNOLOGY: Announces Closure of Two Production Plants -------------------------------------------------------------- Taking advantage of its acquisition of Marconi's optical component business earlier this year, Bookham Technology plc announced Wednesday in a statement that it will concentrate its worldwide production in two out of its current four facilities, manufacturing ASOC components at its Milton facility and active components at its Caswell site. Through an ongoing process efficiency program, the company believes that it can now handle component production rates of GBP 200 million (USD 306 million) at Milton and similar levels at Caswell, permitting it to close its other two facilities in Maryland, U.S. and Swindon, U.K. The company believes that these closures will reduce costs without adverse impact on manufacturing capacity or on future sales ramp-up. The company estimates that its ongoing broader cost reduction efforts, of which the facilities realignment is an important part, will reduce its quarterly cash burn rate to between GBP 10 million and GBP 12 million (USD 15 million and USD 18 million), excluding restructuring costs, in the fourth quarter 2002. Following the completion of this cost reduction program, the company expects to incur exceptional charges of GBP 8 million to GBP 12 million (USD 12 million to USD 18 million). The company will announce its second quarter 2002 results on July 30, 2002 through its normal scheduled press release and conference call. The company's revenue for the quarter ending June 30, 2002 was GBP 7.1 million (USD 10.9 million) up 27% from first quarter 2002 (GBP5.6 million; USD 8.6 million), in line with average analyst expectations. The company also reduced its quarterly cash burn to GBP 13.8 million (USD 21.1 million) from GBP 22.2 million (USD 33.4 million) in the first quarter 2002, and ended the quarter with GBP 148.8 million (USD 227.7 million) in cash. Contact Information: Giorgio Anania President & CEO Steve Abely Chief Financial Officer Telephone: +44 (0) 1235 837000 BOOKHAM TECHNOLOGY: Notification of Interest in Shares ------------------------------------------------------ Telecoms equipment manufacturer Bookham Technology plc announces that on July 2, 2002 it received notification from AMVESCAP PLC (and subsidiary companies on behalf of discretionary clients) that it has an interest in 17,415,722 ordinary shares in the Company representing 12.13% of the issued share capital as a non- beneficial holding. Bookham Technology plc also announces that it has received notification from AMVESCAP PLC that the above holding includes the following notifiable holdings: INVESCO Perpetual International Core Fund holds 7,236,795 shares representing 5.04% of the issued share capital and INVESCO Perpetual UK Growth Fund holds 4,431,262 shares representing 3.09% of the issued share capital. Both holdings are registered in the name of Vidacos Nominees Limited. COMPASS GROUP: Autogrill Will Not Buy Compass' Assets ----------------------------------------------------- Autogrill SpA has denied rumors regarding its interest to bid for assets put for sale by U.K.'s catering giant, Compass Group Plc, the Dow Jones reports. Compass announced Friday its plans to sell both of its Little Chef and Travelodge units. The units are expected to fetch a price of GBP 650 million-GBP 750 million, the paper said. Compass is a global foodservice organization providing food and beverage services to business, industrial and other sectors. The groups own brands include Upper Crust, Cafe Select, Caffe Ritazza, Ritazza, StopGap, Not Just Donuts and Franks and franchised brands include Burger King, Pizza Hut, Harry Ramsden's and Taco Bell. The group has operations in the United Kingdom, Continental Europe, North America and elsewhere. EUROTUNNEL PLC: Announces Pricing for GBP 740MM of Bonds -------------------------------------------------------- Eurotunnel -- www.eurotunnel.com -- announces that GBP740 million of bonds to be issued by Fixed-Link Finance 2 B.V. have been priced successfully by Dresdner Kleinwort Wasserstein and Merrill Lynch International. The proceeds of the bond issue will be used to fund the debt buy back and refinancing transactions launched by Eurotunnel on 26 March 2002. The closing of the bond issues and the satisfaction of the Financing Condition to the tender are expected to take place on 10 July 2002. Holders of Eurotunnel's Equity Notes are reminded that the Expiration Date for the Redemption Offer and the Deferred Interest Purchase Offer in respect of the Equity Notes is midnight (Paris time) on July 10, 2002. Noteholders wishing to redeem their Equity Notes under the terms of the Redemption Offer and sell their Deferred Interest Amounts under the terms of the Deferred Interest Purchase Offer should therefore complete the Acceptance Form and return it to Credit Agricole Indosuez in accordance with the instructions set out in the circular to Noteholders dated April 24, 2002. The New Units to be issued as a result of the Redemption Offer are expected to be admitted to listing and trading in London, Paris and Brussels on July 17, 2002. Eurotunnel manages the infrastructure of the Channel Tunnel and operates accompanied truck shuttle and passenger shuttle (car and coach) services between Folkestone, UK and Coquelles, France and is market leader for cross-Channel travel. Eurotunnel also earns toll revenue from other train operators (Eurostar and EWS and SNCF for rail freight) which use the Tunnel. Eurotunnel is quoted in London, Paris and Brussels. MTK CONTAINERS: Administrators Sell MTK's Business and Assets ------------------------------------------------------------- MTK Containers Limited (In Administrative Receivership) The Joint Administrative Receivers, Charles Escott and Michael Hore, offer for sale as a going concern the business and assets of the above company. Main features of the business include: -Principal UK manufacturer of tank containers and swap bodies -Major supplier to the international container market -Modern, purpose-built freehold factory premises in Sunderland -- comprising 1000,000 square feet on 8-acre site -Comprehensive in-house facilities, including bed-welding and rolling, X-ray, pickling, shot-blasting and paint spray -Peak turnover GBP15 million per annum -Stock units available Contact Information: Nathalie Staakman RSM Robson Rhodes St George House 40 Great George Street Leeds LS1 3DQ Telephone: 0113 225 4000 Fax: 0113 225 4002 NTL Announces Final Approval of Previously Announced Financing -------------------------------------------------------------- NTL Incorporated, announced in a statement Wednesday that it has obtained final approval from the Court in which its United States Chapter 11 cases are pending for the previously announced Debtor in Possession (DIP) financing. The Court has approved the entire USD630 million DIP facility, which includes the previously announced USD500 million in new financing to be provided by certain of the Company's bondholders or their affiliates. The facility provides financing that may be used for the Company's operations during the Chapter 11 process. This new financing ensures that the Company's business operations will have access to sufficient liquidity to continue ordinary operations. Commenting on the Court approval, the Company's President and CEO, Barclay Knapp, said "We are extremely pleased with this result. The Court's approval is yet another positive development in the Company's rapidly proceeding restructuring process. Our new facility is also a strong endorsement for the company as it is being provided by our future majority equity holders. Now both our recapitalization plan and our operating plans for emergence can continue to move forward at full speed." More on NTL: - On May 8, 2002, NTL and certain of its subsidiaries filed a Chapter 11 "prearranged" plan of reorganization under US law. - On May 2, 2002, NTL announced that the Company, a steering committee of its lending banks and an unofficial committee of its public bondholders had reached an agreement in principle on implementing a recapitalization plan. The members of the bondholder committee hold in the aggregate over 50% of the face value of NTL and its subsidiaries' public bonds. In addition, France Telecom and another holder of the Company's preferred stock have also agreed to the plan of reorganization. - On May 24, NTL filed an amended plan of reorganization and a disclosure statement. The court has set July 12, 2002 as a hearing date to consider approval of the disclosure statement. - On June 21, 2002, an official committee of creditors, comprised of the members of the unofficial committee of public bondholders and three additional members, was appointed by the United States Trustee to oversee the Chapter 11 cases. - NTL offers a wide range of communications services to homes and business customers throughout the UK, Ireland, Switzerland, France, Germany and Sweden. PICTOR INTERNATIONAL: Receivers Sell Stock Photographic Agency -------------------------------------------------------------- Pictor International Limited (In Administration) By order of the Joint Administrative Receivers, Peter Dunn and Simon Thomas of Tenon Recovery The business and assets of a stock photographic agency is for sale. Main features of the business include: - Well known and long established - Extensive generalized library and analogue photography including specialist areas - Royalty Free and Traditionally Licensed stock - Worldwide market penetration via network of over 40 international agents -24/7 access to high resolution digital images via online searchable database - High specification digital delivery systems - Excellent customer relationships - Fitted and equipped leasehold premises in London, NW1 - Turnover for 10 months ended March 31, 2001: circa GBP2.77 million Contact Information: Peter Dunn or Simon Thomas Sherlock House 73 Baker Street London W1U 6RD Telephone: 020 7935 5566 Fax: 020 7935 3512 PMC HOLDINGS: Administrators Invite Buyers for Chemicals Supplier ----------------------------------------------------------------- Dermot Power and David Swaden of BDO Stoy Hayward, Joint Administrators of PMC Holdings Limited, invite offers for the sale of the business and assets of a formulated chemicals and resin supplier. Major features of the business include: - Facilities at Stourbridge, Skipton and Hereford - Products manufactured British Creameries labels - Cheese and cheese alternatives manufactured by British Creameries and sold under licence using the Summer County trademark and the Flora trademark (cheese alternatives only) - Innovative products of cheese based childrens snacks - Turnover in excess of GBP25 million - Retail, wholesale and industrial customer base - Unique cheese production process using vegetable oil Contact Information: Situl Raithatha BDO Stoy Hayward 8 Baker Street London W1U 3LL Telephone: 0207 486 5888 Fax: 0207 935 3944 RBG RESOURCES: Liquidators Sell Copper Production Plant ------------------------------------------------------- Continuous Cast Copper Rod and Wire Producer (Zalau, Romania) Sale of interest held by RBG Resources Plc (Liquidators appointed) Malcolm Shierson and Kevin Mawer of Grant Thornton have been appointed Joint Liquidators of RBG Resources Plc. RBG holds an interest in a continuous cast copper rod and wire producer located in Zalau, Romania and inquiries are invited from parties who may seek to acquire that interest from RBG. Major features of the business include: - 66,000 square-meter freehold site - Turnover US$30 million - 500 employees - 45 metric-ton smelter (contirod) - Maximum 60,000 metric-ton production capacity Contact Information: Malcolm Shierson and Kevin Mawer Joint Liquidators Grant Thornton Grant Thornton House Melton Street Euston Square London NW1 2EP Telephone: 020 7383 5100 Fax: 020 7383 4077 Email: malcolm.shierson@gtuk.com RBG RESOURCES: Liquidators Sell RBG's Copper Smelting Interests --------------------------------------------------------------- Copper Smelter (Baia Mare, Romania) Sale of interest held by RBG Resources Plc (Liquidators appointed) Malcolm Shierson and Kevin Mawer of Grant Thornton have been appointed Joint Liquidators of RBG Resources Plc (RBG). RBG holds an interest in a continuous cast copper rod and wire producer located in Zalau, Romania and enquiries are invited from parties who may seek to acquire that interest from RBG. Major features of the business include: - Turnover US$28 million - 845 employees - 43 hectare site (government owned) - 150 metric ton batch anode furnace - 40m000 metric ton-copper cathode production capacity Contact Information: Malcolm Shierson and Kevin Mawer Joint Liquidators Grant Thornton Grant Thornton House Melton Street Euston Square London NW1 2EP Telephone: 020 7383 5100 Fax: 020 7383 4077 Email: malcolm.shierson@gtuk.com SMITH & MCLAURIN: Interim Managers Sell Company as Going Concern ---------------------------------------------------------------- Smith & McLaurin Limited (under control of Interim Managers) The Joint Interim Managers, offer for sale as a going concern, the business and assets of Smith & McLaurin Limited. The key features of the business include: - Manufacturer of laminates for the label industry and ticketing applications - Purpose built leasehold production facilities in Kilbarchan, Renfrewshire - Long established reputation for quality production - Loyal customer base in the UK and abroad, generating current annual revenues of circa GBP12 million, following recent restructuring - End user product approval for a number of key customers - Excellent supplier relationships - Skilled workforce of 66 (following rationalization) Contact Information: Kenneth Pattullo KPMG 24 Blythswood Square Glasgow G2 4QS Telephone: 0141 226 5511 Fax: 0141 204 1584 WORLDCOM: IDT Ready to Offer USD 5BB for Worldcom Assets -------------------------------------------------------- Telecommunications and internet company IDT has offered USD 5 billion for two prize assets of Worldcom following rumors that the latter is on the brink of a breakup, the Independent said. IDT has expressed its interest on the following assets: the long distance phone company MCI and Worldcom's local phone network MFS, the paper said. But a Worldcom spokesman said it is unlikely for the company to be selling its core businesses, after CEO John Sidgmore released a statement saying he will do his best to keep the company afloat and avoid filing bankruptcy. The Independent reported that despite such moves to avoid a Chapter 11 filing, Worldcom may be forced to sell its businesses as it scrambles for money to pay its estimated USD 30 billion debt. Meanwhile, Worldcom is still currently in hot waters as judicial investigations took a faster pace with news that former internal auditor Ms. Cynthia Cooper signified she is willing to cooperate with prosecutors. Ms. Cooper was the one who discovered the alleged accounting fraud worth USD 4 billion in Worldcom's financial report, the paper said. WORLDCOM: Bank Lenders Formally Disclose US $4.25BB Loan Defaults ----------------------------------------------------------------- Beleagured WorldCom Inc.'s bank lenders have formally notified the troubled telecommunications company that it's in default of the terms of credit facilities totaling US$4.25 billion, WorldCom said yesterday, reports Dow Jones. According to the newswire, the company also made other disclosures Monday that, according to some investors and analysts, worsen the already bleak outlook for the company. In a press release issued on July 1, WorldCom announced that the company's accounts receivable securitization program has been terminated; the Nasdaq Stock Market plans to delist the company's shares on Friday, July 5, because the company failed to comply with certain filing and fee requirements; and the audit committee of WorldCom's board is reviewing financial records for 1999 and 2000. Sources say the disclosures mean that WorldCom's cash position is under severe pressure, the Dow Jones adds. YORKSHIRE MOULDS: Receivers Sell Manufacturing Business ------------------------------------------------------- Yorkshire Moulds Limited (In Receivership) Polycarbonate Mould Manufacturer and Bespoke Injection Moulder Yorkshire Moulds Limited has 50 years of trading history and specializes in mould manufacture and mould injection. Major features of the business include: - Annual turnover of GBP6 million - Blue chip multi-national client base - Located within half a mile of the M62 motorway - Experienced and skilled workforce - In-house CAD/CAM design studio - Well maintained, high quality, injection moulding facility Contact Information: Mike Saville and Tony Flynn Joint Administrative Receivers Grant Thornton St Johns Center 110 Albion Street Leeds LS2 8LA Telephone: 0113 245 5514 Fax: 0113 246 0828 Email: richard.a.daszkiewicz@gtuk.com *********** 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. 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