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/raid1/www/Hosts/bankrupt/TCREUR_Public/020722.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 Monday, July 22, 2002, Vol. 3, No. 143 Headlines * F R A N C E * AIR LITTORAL: Appeals Court Orders Sequestration of EUR 15.2MM TROUVAY ET CAUVIN: Goes Into Compulsory Administration VIVENDI UNIVERSAL: Admits to Secretly Raising Stake in Elektrim * G E R M A N Y * ELBAG: Car Supplies Group Crashes Into Insolvency KIRCH GRUPPE: Creditors Plan to Seize Kirch's 75% Formula 1 Stake RUWEL GROUP: Bayonne Union Accuse Ruwel of Fraudulent Bankruptcy * P O L A N D * PIA PIASECKI: Subcontractors Initiate Insolvency Petition * S P A I N * JAZZTEL PLC: Dragados Sells EUR1.6 MM Jazztel Shares * S W E D E N * LM ERICSSON: Q2 Report and Terms of Rights Offering LM ERICSSON: Sets Terms for Rights Offering LM ERICSSON: Supplies MMS Infrastructure to Turkcell LM ERICSSON: Amena in Spain Chooses Ericsson as MMS Provider * U N I T E D K I N G D O M * BIG FOOD: Holds Annual General Meeting, Passes Resolutions BRITISH AIRWAYS: Notification of Major Interest in Shares CLAIMS DIRECT: Compensation Claims Specialist Plans Court Appeal CLAIMS DIRECT: Administrators Sell Claims Specialist Business CLAIMS DIRECT: founder Attempts to Recover Previous Legal Fees HYWAY PRINTING: RSM Robson Rhodes Sells Printing Business INVENSYS PLC: Hires Deutsche Bank, BoA for Rexnord Corp. Sale JENSEN HOLDINGS: PKF Sells Manufacturer Cos. as Going Business MARCONI PLC: Implements Optical Network for COLT Telecom MARCONI PLC: Mobile Subsidiary Trials Communications Capability METTONI GROUP: Communications Network Business for Sale NTL, INC.: Names Bennie as MD for U.K. Broadcast Ops OPTICAL MICRO: KPMG Sells Microchip Manufacturing Concern SJP LIMITED: Kroll Buchler Phillips Sells Manufacturing Business TELEWEST COMMUNICATIONS: Withdraws Three Non-Exec Directors THUS GROUP: Changes Board and Senior Management WORLDCOM, INC.: May Cope With Creditors Through Bankruptcy Filing UNIVERSAL VEHICLES: E&Y Sells Manufacturing Co as Going Concern =========== F R A N C E =========== AIR LITTORAL: Appeals Court Orders Sequestration of EUR 15.2MM -------------------------------------------------------------- The appeals court of Montpellier has ordered the sequestration from Swissair Group the amount of EUR 15.2 million, a report according to Les Echos and FT Information says. The Montpellier court has backed a ruling by the commercial court that funding payments by Swiss air transport group Swissair Group to French airline Air Littoral should proceed during the Swiss group's appeal. Previously, Swissair had signed a contract with Air Littoral promising funding. However, it never paid the contracted amount after it filed for bankruptcy in October last year. The French commercial court however ruled that the Swiss carrier was still obliged to pay the sum because the deal was sealed before it went bankrupt. The decision will be charged against the remaining assets of Swissair. Karl Wuthrich of the law firm Wenger Plattner is currently the interim administrator of Swissair. TROUVAY ET CAUVIN: Goes Into Compulsory Administration ------------------------------------------------------ Trouvay et Cauvin, a French industrial pipes manufacturer was placed into compulsory administration by the France's commercial court, Le Havre, a report from Le Figaro and the Financial Times said. In September, the company recorded losses worth EUR30 million and a turnover of EUR260 million in the financial year of 2000-2001 in September. Since 1998, the company has been trying to stay afloat when oil and gas groups decreased their investments, the report said. Trouvay et Cauvin was given by the court six months to seek a buyer. The company closed its production plant in Saint-Dizier and some of its subsidiaries last year. It also made around 500 workers redundant, the report said. VIVENDI UNIVERSAL: Admits to Secretly Raising Stake in Elektrim --------------------------------------------------------------- Vivendi Universal recently admitted to covertly raising its stake in Elektrim, a Polish power and telecommunications company, by setting up a holding firm to escape regulatory problems, a report from AFX News said. Citing the French newspaper Daily Liberation, AFX News said that when Vivendi bought the stake in secret it had avoided regulatory requirements to declare its increased stake. A Vivendi spokesperson said that that the company resorted to not declaring its increased stake in order to defend its interests from Deutsche Telekom, which was also interested in Elektrim, the news outfit said. Moroever, Vivendi said they are confident that the company did not break any Polish laws and that their method was discreet and legal. The French newspaper has cited a company document, which shows that Vivendi had used a cash-shell in Luxembourg (which it had created) and some financial channels in the Isle of Man to clandestinely increase its Elektrim stake, AFX said. ============= G E R M A N Y ============= ELBAG: Car Supplies Group Crashes Into Insolvency ------------------------------------------------- German car supplies company Elbag recently filed for insolvency, a report from Frankfurter Allgemeine Zeitung and Financial Times said. The company, which employs around 170 staff, has been struggling for two years. It will keep operations going under a restructuring plan, the report said. Elbag previously announced that they would pay employees until the end of August. The company reached an estimated turnover of EUR16.3 million, the report said. KIRCH GRUPPE: Creditors Plan to Seize Kirch's 75% Formula 1 Stake ----------------------------------------------------------------- Creditors of KirchGruppe are eager to seize control of the company's 75% stake in Formula 1 by the end of August, a report from the Financial Times Deutschland said. The banks are composed of Bayerische Landesbank, JP Morgan and Lehman Brothers. KirchGruppe owes the banks a total debt worth USD1.6 billion. Their exposure however, is securitized against the Formula 1 stake, the paper said. The creditor banks plans to sell the Formula 1 holding to carmakers engaged in the motor racing series, such as, DaimlerChrylser AG and Fiat SpA, the paper said. According to the paper, the banks are hoping that the car makers would make their own motor racing that would compete with Formula 1. The three banks are also expecting that SLEC, the Formula 1 holding company, would generate an annual net profit estimated at USD300 million, the paper said. RUWEL GROUP: Bayonne Union Accuse Ruwel of Fraudulent Bankruptcy ---------------------------------------------------------------- Trade unionists of the Ruwel Bayonne has accused the Ruwel Group of fraudulent bankruptcy, citing the Group's declaration that the French division is bankrupt, a move that excused it from the French industrial-relations modernization law, a report from Le Monde and Financial Times said. Ruwel Bayonne, a subsidiary of German printed circuits maker Ruwel Group was declared bankrupt in March. The division went into receivership on April 8. Immediately after it was declared bankrupt, Ruwel Bayonne employees had began legal proceeding against Ruwel. The employees accused the group of fraudulent bankruptcy, and of misuse of company property, the papers said. The Bayonne-based factory has yet to find a buyer. Moreover, its redundancy plan has yet to be implemented. At the start of July, 80 of the site's 350 employees had opted for a retraining program, 60 had found another job, and the rest were still waiting to be redeployed, the papers said. Earlier, the Troubled Company Reporter had reported that Ruwel Bayonne went through a six-month receivership, which was transformed into a liquidation proceeding. The decision was reached by the Bayonne commercial court after the official receiver of the company noted that the parent company won't likely finance a re-launch of the business, the TCR said. Earlier, at least two buyers were rumored to snatch the unit: the company's own management and a Chinese group that hopes to use the site to manufacture computer screens, the TCR said. Ruwel group had said the unit can no longer remain competitive in the face of growing rivals coming from Asian countries. The group only booked EUR220 million turnover last year, the TCR reported. With the closure of the plant, the group is now left with only seven PCB factories -- six in Germany and one in Denmark. Ruwel purchased the Bayonne plant from Sony in 1997. =========== P O L A N D =========== PIA PIASECKI: Subcontractors Initiate Insolvency Petition --------------------------------------------------------- Subcontractors of construction group PIA Piasecki filed a bankruptcy petition in against the company a regional court in Kielce, Poland AM sources report. According to a court spokesman, the petition will probably begin in August. Polish daily Puls Biznesu has said that another petition for bankruptcy proceedings has been filed in the regional court of Warsaw against its subsidiary company, PIA Piasecki Budownictwo. Poland AM says PIA Piasecki ranks 308 among the top 500 corporations, and is suffering serious financial trouble. PIA emerged to have a serious cash flow problem. Last year, the industrial group recorded PLN 420 million (USD 104 million) in turnover and net loss of PLN14 million. A company representative cooperating with the Kielce-based developer Piasecki says the group lost its liquidity after work on many projects have been suspended. ========= S P A I N ========= JAZZTEL PLC: Dragados Sells EUR1.6 MM Jazztel Shares ---------------------------------------------------- Dragados, a Spanish construction and services group, told the stock market regulator that it sold its 1.6 million shares in Spanish telecom operator Jazztel Plc during the period between June 21 and July 9, a report from Expansion and the Financial Times said. The papers said that the sale will have a negative effect on Dragados's accounts of EUR5.8 million. Moreover, Dragados also had to make provisions of EUR2.9 million in the first quarter for its stake in Jazztel, and another EUR13.1 million in 2001. Dragados still has 27,000 Jazztel shares, plus 80,000 shares within a share loan agreement. Yesterday, the Dragados share closed down 2.19 per cent at EUR16.53, the papers said. =========== S W E D E N =========== LM ERICSSON: Q2 Report and Terms of Rights Offering --------------------------------------------------- -Adjusted income before taxes of SEK -3.5 b. compared to -5.4 b. in the first quarter -Intensified cost reductions lower operating expenses -Rights offering funds fully underwritten through commitment of group of shareholders and bank underwriting -Rights offering terms set at 1:1 with subscription price of SEK 3.80 per share CEO COMMENTS "We continue to plan our operations to return to profit at some point in 2003. In light of our lowered market expectations for this year, we have intensified the cost reductions that we started last year and are substantially ahead of schedule," says Kurt Hellstr"m, President and CEO of Ericsson. "We will continue reducing our costs until we can breakeven at sales levels around SEK 120 b. By the end of next year, we believe we will have a low enough cost base to return to profit. Our strategy is to focus on the two main systems tracks - GSM/WCDMA and CDMA/CDMA2000 - and the promising market for services. During the quarter, we won two more significant service contracts for network management services. Although Sony Ericsson reports a loss for the quarter, we believe in the potential of this joint venture. We have made significant progress toward the successful execution of our rights offering as Investor, Industriv"rden and several other investors have committed to subscribe for a total of up to SEK 10 b. Further, a group of banks has agreed to underwrite the remaining SEK 20 b. As a result of these developments, the entire SEK 30 b. is fully underwritten. With intensified cost reductions, a stronger balance sheet and a premier customer base, we are confident that we have the right strategy to restore profitability and reinforce our leadership in this long-term growth industry," says Kurt Hellstr"m. MARKET VIEW We are convinced that global telecommunications, particularly wireless communication, is a long-term growth market. Though strong subscriber growth continues, the demand for mobile systems and phones is expected to remain weak at least well into next year. Many operators are facing increasingly adverse funding conditions due to lowered credit ratings and pressure from the capital markets to improve cash flow and reduce debt levels. As a result, they are minimizing phone subsidies and limiting network expansion, which negatively affects replacement rates and quality of service. Based on our preliminary estimates, approximately 45 million new subscribers were added worldwide during the second quarter. At this rate, we expect net subscriber additions this year to be at the lower end of our forecast of 175 to 215 - still in line with our long-term forecast of 1.8 billion subscribers by 2007. In our first quarter report, we indicated that the market for mobile systems could decline by more than 10% this year. Our judgment of operators' investment plans implies that the market will decline by more than 15% this year. This is also reflected by our order and sales development during the quarter. With a slow replacement rate, we believe the number of mobile phones sold during the quarter was approximately the same as in the first quarter at 85 million. We now expect the mobile phone market to be flat to down slightly compared to last year's 390 million units. We had previously estimated the market to be 400- 420 million this year. Our overall view of the wireline systems market for 2002 remains unchanged with an anticipated decline of more than 20%. However, we now expect the market for traditional circuit-switching equipment to shrink even more than the previously estimated 40%. COST REDUCTIONS AND OPERATIONAL REALIGNMENT During 2001, we initiated a company-wide cost reduction program, which was intensified earlier this year and is now ahead of schedule. We continue to adapt the company to the current market situation. Cost reduction measures under our Efficiency Program were fully implemented by the first quarter 2002 which resulted in savings of SEK 20 b. on an annualized basis. Cost reduction measures targeting a further SEK 20 b. of annual savings are planned for implementation by the first quarter 2003. Additional measures generating SEK 10 b. of annual savings are planned for implementation by the third quarter 2003. By the end of 2003, we expect to have an operating expense run rate that would enable us to break-even at annualized sales levels of around SEK 120 b., although our goal is to return to profit at some time next year. The total restructuring cost for 2002 and 2003, for actions to reduce operating expenses and cost of sales, is estimated to be SEK 17.5 b. of which the intensification of the initiatives represents an increase of SEK 7.0 b. RIGHTS OFFERING Based on the authorization granted by the extraordinary meeting of shareholders on June 6, 2002, the board of Ericsson has now set the terms of the rights offering. One share of series A or series B of Ericsson, held as of the record date of August 13, 2002, carries the right to subscribe for one new share of series B. The subscription price is SEK 3.80 per share. Equivalent terms are offered to holders of the Nasdaq-traded ADSs. The offering will raise approximately SEK 30 billion, before expenses. Due to the current negative sentiment in stock markets in general and the telecom industry in particular, and in order to ensure the success of the rights issue, the Board of Ericsson has decided to have the rights issue fully underwritten. Industriv"rden and Investor, representing 7.4 percent of the share capital and 66.7 percent of the votes, have together undertaken to subscribe for SEK 8 billion of the rights issue. In addition, Alecta, Skandia Life, Second National Pension Fund and Third National Pension Fund, representing approximately 7.0 percent of eligible shares have undertaken to subscribe for their respective rights in the issue, corresponding to slightly more than an aggregate of SEK 2 billion. The remaining SEK 20 billion is underwritten by a consortium of banks consisting of Morgan Stanley, SEB/Enskilda Securities, Goldman Sachs International, Handelsbanken Securities and Schroder Salomon Smith Barney. The timetable and other details of the rights offering are described in a separate press release. The company will use the proceeds from the offering for repayment of debt and to fund the intensified restructuring activities, after which payment readiness and equity ratio is expected to be at least as strong as today. OPERATIONAL AND FINANCIAL REVIEW In addition to the primary format, financial statements are also reported in a pro forma format. The primary format is based on Swedish GAAP (please see section Accounting Principles), and the previous year is restated for consolidation of finance companies previously accounted for according to the equity method. The pro forma format is presented to facilitate comparability between years and portrays results of operations as if capitalization of development costs was made on a continuous basis, and with results of operations transferred to Sony Ericsson October 1, 2001, reported in "Share in earnings of Associated companies and JVs." Comments below refer to pro forma statements unless otherwise indicated. Systems Orders booked declined by 17% and sales increased 4% compared to the first quarter 2002. Compared to the second quarter last year, orders declined 39% and sales 32%. Sales of systems integration, network operations outsourcing and advisory services now account for 14% of Systems sales and grew by more than 15% compared to the second quarter last year. Mobile Systems Sales in the GSM/WCDMA track declined 13%, compared to the second quarter last year, maintaining our leading market position. Sales in the U.S. were up by almost 50% from the first quarter, reflecting the transition from TDMA to GSM/GPRS. In Japan, J- Phone completed a soft-launch of an Ericsson WCDMA network on- schedule and is aiming for commercial launch in December 2002. A growing number of customers have launched MMS services in Europe and Asia. We have won over 30 commercial agreements and more than 90 MMS trials are underway. Multi-Service Networks Orders and sales continued to decline, primarily driven by weakness in the traditional circuit-switching equipment market in both Latin America and Western Europe. The decline compared to second quarter last year is around 60% for both orders and sales. Our new business unit structure will reduce our exposure to the circuit-switching business while still supporting our customers' migration to next generation packet switching. Phones Our 50% share of income from Sony Ericsson Mobile Communications is included in "Earnings from Joint Ventures and Associated Companies." The retained activities, including technology licensing and phone manufacturing in China, are reported as part of "Other Operations." Sony Ericsson Mobile Communications (SEMC) A high average selling price (ASP) was maintained with sales of SEK 8.8 b. and 5.0 million phones sold. However, the joint venture reported a loss of SEK 0.8 b., due to lower volumes, some product delays and increased marketing costs from the introduction of new products as well as branding activities. Other Operations Orders for Other Operations were flat, compared to both the first quarter 2002 and the second quarter 2001. Sales increased slightly sequentially but were down 20% compared to the same period last year with reductions in all areas but Defense systems. The operating margin was -16%, largely driven by unfavorable sales volumes for Microelectronics, Network Technology and Enterprise systems. Our mobile phone platform business continues to develop with six licensing agreements so far. However, Mobile Platforms and Bluetooth are still below break-even as we continue to invest in these new businesses. Restructuring activities continue in cables and enterprise systems and we have signed an agreement with Infineon for the sale of a large part of the Microelectronics operations. CONSOLIDATED ACCOUNTS Income The gross margin improved during the quarter to 33%, partly related to reduced excess capacity costs. Operating expenses excluding restructuring charges were 28% lower than second quarter last year and SEK 2.1 b. lower than in the first quarter this year, which reflects continued good progress in our cost savings activities. SEK 1.5 b. of restructuring costs net were charged to income in the second quarter. For the ongoing cost reductions, SEK 0.4 b. were charged to cost of sales, and SEK 1.3 b. to operating expenses. A net positive amount of SEK 0.2 b. was related to restructuring of our previous handset business. Lagging costs of SEK 1.6 b. for inventory write downs, scrapping and warranty costs were offset by insurance compensation of SEK 1.8 b. related to damages as a consequence of a fire in a supplier's factory. The compensation, not recognized as revenue in 2001, has now been recognized upon final settlement. Net effect of capitalization and amortization of development expenses on income before taxes was SEK -0.2 b. in the quarter (SEK 0.2 b.). However, in our primary accounts the net capitalization effect was SEK 1.0 b., due to lower amortizations, as capitalization for primary purposes began January 1, 2002. Net effect of changes in foreign currency exchange rates compared to the rates one year ago was SEK 0.8 b. The net capital loss of SEK 0.3 b. is mainly related to equipment scrapping and divestitures of equity investments. Non-operational capital gains were insignificant. Share in earnings of joint ventures and associated companies amount to SEK -0.5 b., of which SEK -0.4 is related to Sony Ericsson Mobile Communications. The financial net improved to SEK -0.6 b. compared with SEK -0.8 b in the first quarter due to a lower net debt. Adjusted income before taxes was SEK -3.5 b. in the quarter compared with SEK -5.4 b. in the first quarter and SEK -5.1 b. in the second quarter last year. Due to the effect of capitalization of development expenses, adjusted income before tax in our primary accounts was SEK -2.4 b. (-5.3). Primary earnings per share, diluted, were SEK -0.72 (-1.75). Balance sheet and financing Our total gross customer financing exposure, on- and off-balance sheet, was stable compared to the previous quarter at SEK 27.7 b. Total customer financing risk provisions were SEK 6.6 b. at the end of the quarter. This quarter we are also disclosing unutilized customer financing commitments. Our commitments are conditioned upon the customers meeting future operational or financial criteria. In some cases, incremental commitments become available to the customers as they sign additional contracts with us. Our objective is to find alternative funding sources for our customers prior to the time of utilization, which in some cases are secured by Ericsson guarantees to the lending banks. We also seek to place portfolios of credits with third party lenders. Unutilized commitments at the end of the second quarter were SEK 25.3 b. Draw-downs of commitments are related to our shipments and are therefore spread over time. In our experience, this level of commitments has not materially increased our net exposure as repayments and transfers of drawn amounts normally balance the draw-down of unutilized facilities. Repayment of loans and negative cash flow before financing activities resulted in a cash reduction of SEK 8.4 b. Payment readiness was 27% compared with 36%, and the equity ratio was improved by one percentage point compared to the end of the first quarter. Current long-term ratings from Moody's and Standard and Poor's are Baa3 and BBB, respectively, whereas the short-term ratings are P-3 and A-3 respectively. Both agencies downgraded Ericsson in the second quarter. Downgrades increase our interest expenses and may trigger put options by lending banks of customer financing credits. Certain credit facilities were renegotiated during the quarter to exclude rating triggers. Cash flow Cash flow before financing improved by SEK 2.0 b. Working capital improved moderately with further reductions in receivables and we divested certain operating assets. Days Sales Outstanding (DSO) improved to 101 from 108 days in the first quarter. Inventory turnover (ITO) improved slightly to 4.2, whereas capital turnover remained unchanged. Cash flow related to customer financing was SEK -0.8 b. In connection with finalizing a previous credit portfolio, cash collateral for secured customer financing of SEK 2.1 b. was released. Net cash from divestitures in the quarter was SEK 0.7 b. SEK 1.0 b. of the SEK 1.8 b. insurance compensation remains to be received in the third quarter. OUTLOOK In our first quarter report, we indicated that our Mobile Systems sales were expected to be in line with the market development of down by more than 10% during 2002. As described in the market view above, we now believe the market will decline by more than 15% this year. We also indicated that we expected to make a loss this year, excluding restructuring costs and non-operational items, and planned to manage the business to return to profit at some point in 2003 with ongoing cost reductions. We believe that our sales will develop in line with our updated market outlook, resulting in a loss for 2002. With ongoing cost reductions, we still believe we can return to profit at some point in 2003. Parent Company information The Parent Company business consists mainly of corporate management and holding company functions. It also includes activities performed on a commission basis by Ericsson Treasury Services AB and Ericsson Credit AB regarding internal banking and customer credit management. The Parent Company has branch- and representative offices in 16 (15) countries. Net sales for the period amounted to SEK 0.8 (2.7) b. and income after financial items was SEK 1.1 (9.4) b. Major changes in the company's financial position were: Increased current and long-term commercial and financial receivables from subsidiaries of SEK 17.1 b. Increased short- term and long-term customer financing of SEK 4.9 b. Decreased cash and short-term cash investments of SEK 12.0 b. The investments were financed primarily through increased internal borrowing of SEK 11.9 b. At the end of the quarter, cash and short-term cash investments amounted to SEK 37.0 (49.0) b. In accordance with the conditions of the Stock Purchase Plan for Ericsson employees, 28,020 shares from treasury stock were distributed during the second quarter to employees who left Ericsson. Approximately 6 million shares of treasury stock of the total allotment for the employee stock purchase plan of 35 million shares are now reserved for the matching of employee investments. The holding of treasury stock at June 30, 2002 was 156,775,980 Class B shares. Accounting principles This interim report has been prepared in accordance with the Swedish Financial Accounting Standards Council's recommendation RR 20, Interim reports. We have changed accounting principles since our latest annual report. The following Swedish GAAP recommendations are now implemented: RR 1:00, Consolidated financial statements RR 15, Intangible assets RR 16, Provisions, contingent liabilities and contingent assets RR 17, Impairment of assets RR 19, Discontinuing operations RR 21, Borrowing costs RR 23, Related party disclosures The only material effects of these new standards relate to RR1:00, regarding consolidation of controlled companies, and RR 15, regarding capitalization of development costs. According to RR1:00 we have consolidated as subsidiaries certain finance companies previously accounted for under the equity method. We have restated previous year in our primary statements. According to RR 15, starting from January 1, 2002 we have capitalized certain development costs. In accordance with this rule, we have not restated our primary accounts. Since this capitalization generates incomparability between this period and previous periods in the primary accounts, we have decided to also present pro forma statements, where we have assumed that the principle of capitalization of such development costs had been applied in all periods. For this purpose, we have used the amounts for capitalized development costs we already calculated and used in previous periods' reconciliation to US GAAP. Our pro forma statement is also adjusted to portray our operations as if the mobile phones operations transferred to the Sony Ericsson joint venture on October 1, 2001, were accounted for under the equity method for the whole year 2001. Stockholm, July 19, 2002 Kurt Hellstr"m President and CEO Date for next report: October 18, 2002 Auditors' Report We have reviewed the Interim Report as of 30 June 2002 for Telefonaktiebolaget LM Ericsson (publ). We conducted our review in accordance with the recommendation issued by FAR. A review is limited primarily to inquires of company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and, accordingly, we do not express an audit opinion. Based on our review, nothing has come to our attention that causes us to believe that the Interim Report does not comply with the requirements in the Swedish Exchange and Annual Account Acts. Stockholm, July 19, 2002 Carl-Eric Bohlin Authorized Public Accountant PricewaterhouseCoopers AB Olof Herolf Authorized Public Accountant PricewaterhouseCoopers AB Thomas Thiel Authorized Public Accountant LM ERICSSON: Sets Terms for Rights Offering ------------------------------------------ Based on the authorization granted by the extraordinary meeting of shareholders on June 6, 2002, the board of Ericsson has now set the terms of the rights offering. One share of series A or series B of Ericsson, held as of the record date of August 13, 2002, carries the right to subscribe for one new share of series B. The subscription price is SEK 3.80 per share. Equivalent terms are offered to holders of the Nasdaq- traded ADSs. Ericsson currently has 656,218,640 series A shares and 7,252,509,947 series B shares outstanding (excluding 156,775,980 treasury shares of series B), which means that a maximum of 7,908,728,587 new series B shares will be issued (assuming that no further convertibles are converted or warrants are exercised prior to the record date). Subscriptions will be possible on a non-preferential basis for shares not taken up by shareholders exercising preferential rights. Allocation preference will be given to subscriptions made by those who have exercised their subscription rights. The offering will raise approximately SEK 30 billion, before expenses. Underwriting and subscription commitments Due to the current negative sentiment in stock markets in general and the telecom industry in particular, and in order to ensure the success of the rights issue, the Board of Ericsson has decided to have the rights issue fully underwritten. Industrivarden and Investor, representing 7.4 % of the share capital and 66.7 % of the votes, have together undertaken to subscribe for SEK 8 billion of the rights issue. In addition, Alecta, Skandia Life, Second National Pension Fund and Third National Pension Fund, representing approximately 7.0 % of eligible shares have undertaken to subscribe for their respective rights in the issue, corresponding to slightly more than an aggregate of SEK 2 billion. The remaining SEK 20 billion, is underwritten by a consortium of banks, consisting of Morgan Stanley, SEB/Enskilda Securities, Goldman Sachs International, Handelsbanken Securities and Schroder Salomon Smith Barney. The underwriting is subject to customary returns and conditions. Timetable Ericsson estimates that the rights offering will follow the below timetable: August 9 Ericsson's series A and series B shares will be traded exclusive of the right to participate in the offering. August 13 Record date for participation in the rights offering, i.e. shareholders and ADS holders registered as owners on this day will obtain B share rights or ADS rights, as applicable, to participate in the offering. August 15 First day for subscription and payment for B shares and ADSs. First day for trading in B share rights and ADS rights. August 27 Last day for trading in ADS rights, as well as the last day for subscription and payment for ADSs. August 29 Last day for trading in B share rights. September 3 Last day for subscription and payment for B shares. On or about Sep. 6 Announcement of preliminary rights offering results. Offering documentation will be sent to shareholders and ADS holders registered as owners as of the record date around the time of the start of the subscription period. Advisors Morgan Stanley, Enskilda Securities, Goldman Sachs International, Handelsbanken Securities and Schroder Salomon Smith Barney are financial advisors to Ericsson for the rights offering. Contact Information Henry Stenson Senior Vice President Corporate Communications Phone: +46 8 719 4044 Email: henry.stenson@lme.ericsson.se Investors Gary Pinkham Vice President Investor Relations Phone: +46 8 719 0858, +46 730 371 371 Email: investorrelations@ericsson.com Maria Bernstrom Director Investor Relations Phone: +46 8 719 5340, +46 70 533 4750 Email: maria.bernstrom@lme.ericsson.se LM ERICSSON: Supplies MMS Infrastructure to Turkcell ---------------------------------------------------- Ericsson was able to supply the complete infrastructure of MMS to Turkcell after signing an agreement in May 2002, the Stockholm- based mobile equipment maker announced Thursday. Turkcell launched MMS service on July 17, 2002. Through Ericsson Mobility World in Turkey, Ericsson also gives support to Turkcell for content and applications development. "We are honored that Turkcell has chosen Ericsson for supplying the MMS solution," said Halit Gunes, Head of Turkcell Account and Vice President of Ericsson Turkey. "This agreement proves Ericsson's capability to enable not only first-class technology but also rich content and applications." "Ericsson's MMS infrastructure enabled our customers to easily use the technology and get access to the content," said Muzaffer Akpinar, the General Manager of Turkcell. "We will continue to invest in new technologies and present them to our subscribers at the same time as the rest of the world." MMS enables the users to add various multimedia elements (text, image, voice, video, animation) and send to the mobile phones thus opening up a new revenue channel for the operators. Ericsson is a forerunner in MMS. Ericsson has supplied more than 80 test systems worldwide, and has already secured over 30 orders to supply commercial MMS systems. Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world. Turkcell is the leading GSM operator in Turkey with approximately 13.8 million postpaid and prepaid customers as of June 30, 2002. Turkcell had revenues of US$454.0 million and adjusted EBITDA of US$160.3 million as of March 31, 2002. Turkcell provides high-quality 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. At the end of 1999, Turkcell became the first GSM operator in Turkey to be awarded the prestigious ISO 9001 certificate for the quality of its service. LM ERICSSON: Amena in Spain Chooses Ericsson as MMS Provider ------------------------------------------------------------ Spanish operator Amena has selected Ericsson to supply its end-to-end MMS Solution. The contract, according to the Swedish group's latest statement, includes the MMS infrastructure, WAP gateway, multimedia library and non-MMS Phone Support. The contract also includes service and integration of all elements in Amena's existing mobile network. Amena launched its MMS services in the beginning of July. In addition to the MMS solution, Ericsson offers access to a variety of applications via Ericsson Mobility World, a global support network for developers, as well as the necessary support for the development of tailored MMS services. The implementation of an end-to-end solution will encourage the traffic in the GPRS networks, a starting point for the development of 3G services. Ericsson is a forerunner in MMS. Ericsson has supplied more than 80 test systems worldwide, and has already secured over 30 orders to supply commercial MMS systems. Ericsson operates in the Mobile and Broadband Internet communications industry through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world. =========================== U N I T E D K I N G D O M =========================== BIG FOOD: Holds Annual General Meeting, Passes Resolutions ---------------------------------------------------------- The Big Food Group plc is pleased to announce that its 2002 Annual General Meeting was held on July 18 and all of the resolutions proposed at the Meeting were duly passed by the shareholders. A copy of the resolutions, which were proposed as special business at the AGM has been submitted to the UK Listing Authority and will shortly be available for inspection at the UK Listing Authority's document Viewing Facility, which is situated at: Financial Services Authority 25 The North Colonnade Canary Wharf London E14 5HS Telephone: 020 7676 1000 BRITISH AIRWAYS: Notification of Major Interest in Shares --------------------------------------------------------- Letter Dated July 12, 2002 Companies Act 1985 - Part VI I hereby inform you that as at July 11, 2002 Barclays PLC, through the legal entities listed on the schedule below, has a notifiable interest in the capital of your Company of 3.22% Details of this interest, together with a breakdown between registered holders (as required by Section 202(3) of the Act), are enclosed. The issued capital of 1082760304 is the latest figure available to us. Letter from Barclays Plc LEGAL ENTITY REPORT BRITISH AIRWAYS SEDOL: 0129057 As at July 11, 2002 Barclays Plc, through the legal entities listed below, had a notifiable interest in 34846868 ORD GBP0.25 representing 3.22% of the issued share capital of 1082760304 units. Legal Entity Holding Percentage Held Barclays Capital Securities Ltd 290,214 0.0268 Barclays Nikko Global Investors Ltd 298,080 0.0275 Barclays Private Bank Ltd 29,403 0.0027 Barclays Global Invetors Japan Trus 708,532 0.0654 Barclays Global Investors Japan Inv 30,526 0.0028 Barclays Private Bank and Trust Ltd 32,777 0.0030 Barclays Bank Trust Company Ltd 2,711 0.0003 Barclays Private Bank and Trust Ltd 4,080 0.0004 Barclays Global Fund Advisors 109,878 0.0101 Barclays Life Assurance Co Ltd 2,324,243 0.2147 Barclays Global Investors, N.A. 9,704,580 0.8963 Barclays Global Investors Ltd 21,311,844 1.9683 Group Holding 34,846,868 3.2183 REGISTERED HOLDERS REPORT BRITISH AIRWAYS SEDOL: 0129057 As at July 11, 2002 Barclays Plc, through the registered holders listed below, had a notifiable interest in 34846868 ORD GBP0.25 representing 3.22% of the issued share capital of 1082760304 units. Registered Holder Account Designation Holding 81610 268,334 583996 431,495 586072 77,018 586528 7,849 ALMIXFTTL-18408-CHASE MANHATTA ALMIXFTT 73,715 ASUKEXTTL-20947-CHASE MANHATTA ASUKEXTT 9,774,285 Bank of Ireland BNX009IE 147,724 BARCLAYS CAPITAL SECURITIES LT 290,214 Barclays Trust Co E99 350 Barclays Trust Co R69 1,372 BB1964UKC-16530-CHASE MANHATTA BB1964UK 53,905 BBTCL AS EXECUTORS OF 989 BGIJTB BTGF01IE 181,596 BGIJTB BTGF05IE 189,059 BLEEQTTTL-17011-CHASE MANHATTA BLEEQTTT 7,569 BLENTFUKQ-16344-CHASE MANHATTA BLENTFUK 148,423 BLENTPUKQ-16345-CHASE MANHATTA BLENTPUK 267,287 BLEQFDUKQ-16331-CHASE MANHATTA BLEQFDUK 387,179 BLEQPTUEA-16341-CHASE MANHATTA BLEQPTUE 466,339 BLEQPTUKQ-16341-CHASE MANHATTA BLEQPTUK 950,596 BLINTNUKQ-Z1AJ-dummy BLINTNUK 30,115 BLINTPUKQ-16342-CHASE MANHATTA BLINTPUK 66,735 BLUKINTTL-16400-CHASE MANHATTA BLUKINTT 11,160,455 CHATRKTTL-16376-CHASE MANHATTA CHATRKTT 249,484 Chuo Mitsui TB BNN019IE 1,719 Chuo Mitsui TB BNN032IE 31,490 Chuo Mitsui TB BNX012IE 11,618 Chuo Mitsui TB BNX019IE 30,526 Clydesdale Nominees HGB0125 00692963 4,080 GOVERNMENT PENSION INVESTMENT BTS028IE 97,148 Mitsubishi TB BNN014IE 11,751 Mitsubishi TB BNN018IE 2,913 Mitsubishi TB BNN033IE 23,034 Mizuho TB BNN024IE 15,553 NATIONAL FEDERATION OF MUTUAL BTS024IE 2,229 NENTO(FE-C) BTGF04IE 49,982 NENTO(FE-E) BTGF06IE 17,813 NENTO(FE-F) BTGF07IE 9,193 PENSION FUND ASSOCIATION BTC045IE 45,272 PENSION FUND ASSOCIATION BTK001IE 34,958 POSTAL LIFE INSURANCE BTS022IE 14,144 REGIONAL PUBLIC OFFICERS UNION BTS004IE 59,985 SFB01 428169 17,066 SFB01 500227 2,069,468 SFB01 502872 862,347 SFB01 508068 248,814 SFB01 527191 3,403,995 SFB01 536747 417,025 SFB01 540186 133,574 SFB01 552942 405,054 SFB01 555465 77,062 SFB01 555879 9,883 SFB01 569565 7,920 SFB01 573039 67,608 SFB01 713101 545,222 SFB01 911140 15,321 SFB03 583293 560,449 SFB03 584069 180,865 SFB03 585405 2,173 SFB03 585439 5,916 SHINKIN BANK PENSION FUND BTC034IE 7,153 Sumitomo TB BNN029IE 24,401 Sumitomo TB BNN031IE 10,169 Sumitomo TB BNN036IE 17,708 Swan Nominees Limited 32,309 Swan Nominees Limited 468 ZEBAN NOMINEES LIMITED 29,403 Total 34,846,868 CLAIMS DIRECT: Compensation Claims Specialist Plans Court Appeal ---------------------------------------------------------------- Shropshire personal injury firm Claims Direct announced on July 10 plans to appeal against a court ruling, which could open the floodgates for millions of pounds of compensation cases. Neil Howard-Pritchard won a small claims court case against the Telford-based "no-win, no-fee" company after he was awarded GBP1,500 for tripping on a kerb, but saw all but GBP3.30 wiped out by costs. Claims Direct says it believes Mr Howard-Pritchard, who was awarded GBP1,300 by the court in Blackpool, may have unwittingly given incorrect evidence to the court during his case, where he represented himself. In a statement, the Telford company said: "The reality is that Mr Pritchard's solicitor is still pursuing full settlement of the cost of his premium and unless the defendant's insurance company refuses to pay it, then he will not lose his money." Mr Howard-Pritchard, who lives in Lancashire, was unavailable for comment. A new management team has taken control at Claims Direct since the circumstances surrounding Mr Pritchard's case, and has reinvented the company's claims system. Under the old system, customers were asked by the Shropshire firm to take out a GBP1,300 insurance policy to protect them from legal costs if they lost their case. If their case was won, the insurers were supposed to refund the cash. Claims Direct spokesman Julia Lake said the blame lay with insurance companies going on "payment strike" and refusing to cover legal costs for successful claimants. "This payment strike is affecting not just clients of Claims Direct, but potentially anyone with a claim. "Claims Direct is currently fighting for the rights of its customers in the Supreme Court with defendant insurers who have refused to pay the cost of the insurance premium, and hope to have the results of these cases by the end of this month. "The action Claims Direct is taking against the insurance industry is well known amongst the country's lawyers who are themselves waiting for the decision on these test cases." CLAIMS DIRECT: Administrators Sell Claims Specialist Business ------------------------------------------------------------- Claims Direct Plc and Subsidiary Companies (in Administrative Receivership) The Joint Administrative Receivers, Jamie Smith, Bob Maxwell and Nick Dargan, offer for sale the business and assets of Claims Direct plc and its subsidiary companies. Claims Direct Plc, which is based in Telford, Shropshire, is the leading UK firm that assists in the management of personal injury claims. Key features include: - High profile brand name - Annual turnover approximately GBP14 million - Dedicated software systems and call center operation - Extensive existing customer base - Bespoke web-based software system for claims management - Experienced claims management and other staff totalling 140 - Leasehold premises Contact Information: Greig Mitchell Deloitte & Touche Colmore Gate 2 Colmore Row Birmingham B3 2BN Telephone: 0121 200 2211 Fax: 0121 695 5555 or the companies' premises on 01952 284800 CLAIMS DIRECT: founder Attempts to Recover Previous Legal Fees -------------------------------------------------------------- After selling part of his Claims Direct business before it collapsed, company founder Colin Poole is now after the company for GBP200,000 --- the money he says it owed to his law firm, Poole & Co. Two weeks ago, Poole's firm issued a writ requesting payment for legal work, but has not yet received any cash, the Independent reports. Poole, a lawyer, founded Claims Direct with Tony Sullman. Together they made GBP60 million when it floated on the London Stock Exchange in July 2000. Earlier, the paper said that Poole arranged for his firm of lawyers to do some of the legal work for the no-win, no-fee personal injury company. Poole claims that the company has not been paying its bills in recent months, after it fell under debt and into administration last this month. Simon Ware-Lane, the entrepreneur who took control of Claims Direct last year, is thought to be considering buying it out of administration, the paper said. HYWAY PRINTING: RSM Robson Rhodes Sells Printing Business --------------------------------------------------------- Hyway Printing Services Limited (In Administration) The Joint Administrative Receivers, Daniel Smith and Geoff Rowley, offer for sale the premises, plant and assets of the above business located at Surrey Quays, London. Principal features include: - Established quality award winning printer, founded in 1981 - Operate from long leasehold premises, 18,231 sq ft - City and Scotland based, New York Associates - City and Commercial client base - Annual turnover of circa GBP 16 million - State of the Art 12 Color 6 x 6 Perfector, 6 Color and 4 Color Perfector, full CTP system, typesetting and bindery - Approximately 100 staff Contact Information: Annett Kurzmann RSM Robson Rhodes 186 City Road London EC1V 2NU Telephone: 020 7865 2358 or 2254 Fax: 020 7253 4629 Email: annett_kurzmann@rsmi.co.uk INVENSYS PLC: Hires Deutsche Bank, BoA for Rexnord Corp. Sale ------------------------------------------------------------- Debt-ridden U.K. factory-controls maker Invensys Plc has hired Bank of America Corporation and Deutsche Bank AG to assist in the search for a buyer of Rexnord Corporation, its U.S .carparts maker unit, said sources familiar with the planned sale, Bloomberg reported. Invensys Plc is currently aiming to reduce its debt by GBP1.5 billion. Analysts say that the sale of Rexnord, one of the bigger business units of Invensys, might generate about GBP500 million, a sixth of the company's total debt, the news outfit said. According to sources, the company has already disseminated brochures of Rexnord to prospective buyers, Bloomberg reported. Established over 100 years ago, Rexnord has 5,000 employees at 30 plants worldwide. Invensys is one among the European engineering companies who have focused on debt reduction by selling its assets. The company has already sold nine unprofitable businesses since September 2001, thereby raising GBP750 million, the news outfit said. Among the businesses sold was Flow Control, which was bought by Flowserve Corporation for USD535 million in May. Earlier this year, Moody's Investors Service assigned junk status on Invensys' long-term credit rating. Moreover, the plunging sales in the U.S. and Europe nearly forced the company to break bank accords, the news outfit said. Other units earmarked for sale include Fasco Motors, Drive Systems and Sensor Systems. The group of banks includes Royal Bank of Scotland Plc and HSBC Bank Plc, which also arranged the USD1.39 billion 12-month loan in April, Bloomberg said. JENSEN HOLDINGS: PKF Sells Manufacturer Cos. as Going Business -------------------------------------------------------------- Jensen Holdings Limited Jensen Motors Limited Jensen Sales Limited Sports Car Manufacturer The Joint Administrators, Jon Newell and Philip Long, offer for sale as a going concern the business and assets of the above companies. Principal features of the business include: - Production facility to produce the Jensen SV-8, a two seater sports car launched in 2001 - Over 180 orders placed for Jensen SV-8 - Ownership of the Jensen brand - Fully trained workforce available - Established supply chain for components - Leaehold premises in Speke, Merseyside Contact Information: Jon Newell or Nick Ikin PKF 52 Mount Pleasant Liverpool L3 5UN Telephone: 0151 7088232 Fax: 0151 7083416 Email: jon.newell@pkf.com MARCONI PLC: Implements Optical Network for COLT Telecom -------------------------------------------------------- Marconi -- www.marconi.com -- announced last Thursday that it has implemented a broadband optical network, including network management and maintenance, for COLT Telecom in Lisbon, Portugal and Valencia, Spain. This agreement follows contracts signed with COLT over the last years to build similar networks and support structures in both Madrid and Barcelona. The networks are based on Marconi's synchronous digital hierarchy (SDH) technology, which allows COLT the opportunity to migrate to DWDM technology in the future should it decide to do so. Marconi's SDH is also a highly reliable and proven technology platform, a key requirement for COLT in awarding the contract to Marconi. COLT provides communications services to corporate customers, particularly in the financial services sector, as well as government departments and local internet service providers. Sergio Troili, Director General at Marconi Iberia, said: "Marconi has provided Colt in Spain with the same high level of technology that the operator requires for all its European networks. Colt's very positive experience of working with Marconi and with Marconi technology over the last years gave us a competitive advantage". Marconi plc is a global telecommunications equipment and solutions company headquartered in London. The company's core business is the provision of innovative and reliable optical networks, broadband routing and switching and broadband access technologies and services. The company's aim is to help fixed and mobile telecommunications operators worldwide reduce costs and increase revenues. MARCONI PLC: Mobile Subsidiary Trials Communications Capability --------------------------------------------------------------- A team led by Marconi Mobile has been chosen by the U.K.'s Ministry of Defence (MOD) to prove its defense communications capability, Marconi plc announced Tuesday. The consortium, which also includes Lockheed Martin Mission Systems, Anteon UK, Harrington Generators and TMS, will participate in the assessment phase for Increment A of Project FALCON, a program designed to develop the future generation of tactical wide area communications systems for use by the British military worldwide. The Marconi-led team is one of only two groups chosen to participate in the trial, after which it is expected that one of the parties will be awarded the contract to develop the new system which lies at the heart of the MoD's plans to maintain its position as one of the leading military forces in the world. The system will significantly improve communications efficiency for the military's command and control systems in all operational environments. "Marconi has assembled a very strong team of specialist partners for this bid and it is the collective strength of this entity that convinced the MOD that we should be awarded the contract for the trial and demonstration phase," said Phil Robinson, managing director of Marconi Mobile. Defence communications has particularly demanding requirements for its communications infrastructures and the Marconi-led consortium collectively has many years of proven experience in developing and building such systems. The assessment phase will involve the demonstration of the security and reliability of the consortium's communications network. Initial work on the trial will be carried out in Chelmsford in Essex and Peterborough and will include Marconi's multi-platform switches that have been specially developed for military applications, as well as specialist broadband military radios. Marconi plc is a global telecommunications equipment and solutions company headquartered in London. The company's core business is the provision of innovative and reliable optical networks, broadband routing and switching and broadband access technologies and services. The company's aim is to help fixed and mobile telecommunications operators worldwide reduce costs and increase revenues. The company's customer base includes many of the world's largest telecommunications operators. The company is listed on the London Stock Exchange under the symbol MONI. METTONI GROUP: Communications Network Business for Sale ------------------------------------------------------- Mettoni Group Plc Sale of Communications Network Services Group Mettoni Group Plc (In Administrative Receivership), a holding company, is pleased to offer for sale its subsidiary undertakings which provide a complete range of communications network services in the U.K. The principal activities include the installation, suport and maintenance, consultancy and technical advice to companies seeking to process voice, data or image often over the same network. Individual subsidiaries comprise: - A communication software and services business specialising in call centers and enterprise management based on Nortel hardware - A communications software and services provider specialising in contact and call centres based on Cisco hardware with network cabling capability to provide end to end solutions - A provider of corporate systems integration and web portal design - A network security solutions provider including resale of leading security hardware such as firewalls, antu-virus and encryption software by Netscreen, Checkpoint and Tripwire Interested parties' ability to execute the transaction(s) in a limited timescale will be key to concluding a deal. Contact Information: Fraser Johnson Telephone: +44 (0) 7973 692 847 or Matthew Shaw Ernst & Young Becket House 1 Lambeth Palace Road London SE1 7EU Telephone: +44 (0) 7789 606 761 Fax: +44 (0) 20 7951 6039 Email: fjohnson@uk.ey.com Email: mshaw2@uk.ey.com NTL, INC.: Names Bennie as MD for U.K. Broadcast Ops ------------------------------------------------------------ NTL Inc., the U.K.'s largest cable operator announced last Thursday that it has appointed Tom Bennie as its U.K. managing director for NTL Broadcast, a press release obtained from Dow Jones newswires said. Mr. Bennie will be reporting to NTL Broadcast chairman Peter Douglas. He will be responsible for providing services to NTL Broadcast's U.K. customer base, which includes ITV, Channel 4, Channel 5, QVC, Turner Broadcasting, most independent radio stations and all the mobile phone companies, the press release said. The new managing director Mr. Bennie has worked for 20 years in the broadcast industry. He was managing director of NTL Australia, taking the company from startup, following the 1999 acquisition of the nationwide transmission network, to its successful sale in the first quarter of 2002, the press release said. Mr. Bennie started as Business Development Manager in NTL in 1991. He was appointed to the board in July 1995. Prior to working in NTL, Mr. Bennie worked for the engineering division of the Independent Broadcasting Authority, the press release said. NTL is presently under bankruptcy protection. In April, the company has agreed with its lenders and main shareholder France Telekom on a rescue plan. The company, which struggled under the stigma of a GBP12 billion debt burden, is hoping to rise out of Chapter 11 protection later this year. OPTICAL MICRO: KPMG Sells Microchip Manufacturing Concern --------------------------------------------------------- Optical Micro Devices Limited (In Administration) The Joint Administrators, Richard Hill and Peter Rillett, offer for sale, as a going concern the business and assets of Optical Micro Devices Limited. State of the art Semiconductor/Photonic Component Manufacturing Facility Principal features include: - 1000m2 Class 100 cleanroom with raised floor - Space for expansion to 2x - 200mm diameter water processing - Stepper based lithography capable of 0.5u resolution - PECVD, LPCVD, sputtering and electroplating deposition - Full metrology and test equipment for optical characterization of passive photonic components - Automatic inspection, dicing, pick/place Contact Information: Neil Vinnicombe KPMG 100 Temple Street Bristol BS1 6AG Telephone: 0117 905 4509 Fax: 0117 905 4058 SJP LIMITED: Kroll Buchler Phillips Sells Manufacturing Business ---------------------------------------------------------------- SJP (UK) Limited (In Administration) The Joint Administrators, Alastair Beveridge and Simon Freakley, offer for sale on a going concern basis, the business and assets of SJP (UK) Limited Major features of the business include: - Manufacture and conversion of laminated paper roll and sheet products - Aqueous and "hot melt" technology - Turnover - GBP40m pa (approximately GBP18m outside UK) - Strong customer base - approximately 600 customers - Approximately 200 employees - Leasehold property - St Neots, Cambridgeshire Contact Information: Briony Gibson Kroll Buchler Phillips 84 Grosvenor Street London W1K 3LN Email us Telephone: 0121 212 4999 Fax: 0121 200 3435 TELEWEST COMMUNICATIONS: Withdraws Three Non-Exec Directors ----------------------------------------------------------- Telewest Communications plc announced on July 18 that Liberty Media informed the company that it withdrew its three non-executive directors, Robert Bennett, Miranda Curtis and Graham Hollis, from the board of the company, effective July 17, 2002. Liberty Media holds 25.2 % of Telewest's issued share capital and has the right to nominate up to three representatives to the board under corporate shareholder arrangements with Telewest. Liberty Media said: "We are taking this action to eliminate any potential conflict of interest or appearance of a conflict in any upcoming restructuring discussions. The management and the remaining directors of Telewest continue to have our full support." Contact Information: John Murray Telewest Telephone: 0207 299 5888 THUS GROUP: Changes Board and Senior Management ----------------------------------------------- THUS Group plc -- http://www.let-it-be-thus.com-- announced on July 18 changes to its Board and in the responsibilities of some of its senior management. Phil Male, currently Executive Director, Operations, has been promoted to the position of Chief Operating Officer. Mr Male will take overall operational responsibility for network, service and sales & marketing enabling Bill Allan, Chief Executive, to focus more closely on the Company's direction and strategy. Two of Bill Allan's direct reports have taken on additional responsibilities - Ken Hills, Director of Business Services, has assumed responsibility for human resources issues across the group as well as maintaining responsibility for the Company's Contact Centre business while Ian Hood, Director of Corporate Communications, has taken on responsibility for regulatory and interconnect issues. David Sherick, Director of Risk Management, reporting to John Maguire, Chief Financial Officer, now leads the Company's in- house legal team. Jim Reid, Executive Director of Sales & Marketing, has resigned to pursue other business interests. Commenting on the announcement, Bill Allan, Chief Executive, said: "We continue to review the structure of our management team to take account of the changing market conditions faced in the telecoms industry. The revised structure creates a smaller but more sharply focussed senior management team and will enable me to concentrate more closely on the future direction and strategy of the Company whilst enabling Phil Male to focus on the day-to-day operational issues. "Phil's promotion reflects the significant contribution he has made to the Company over several years and I am delighted that Ken, Ian and David have also agreed to take on additional responsibilities. We are sorry to see Jim go and wish him every success for the future." For Further Information: Mark Woolfenden Smithfield Financial Telephone: 020 7360 4900 WORLDCOM, INC.: May Cope With Creditors Through Bankruptcy Filing ----------------------------------------------------------------- Speculations have emerged over the possibility that WorldCom Inc, the U.S. telecom company facing accounting fraud charges, will file for bankruptcy as early as Sunday, Bloomberg said. Citing sources close to the situation, Bloomberg said that WorldCom may be forced to file for bankruptcy soon in order to cope with creditors owed more than USD35 billion. WorldCom became controversial when it was disclosed that it hid USD3.85 billion in losses over five quarters. Sales have since plunged lower and the company's debts piled up, the news outfit said. The Clinton, Mississippi-based company reported assets of USD103.9 billion in a May filing with the Securities and Exchange Commission. UNIVERSAL VEHICLES: E&Y Sells Manufacturing Co as Going Concern --------------------------------------------------------------- Universal Vehicles Group Ltd (in administration) Specialized vehicles The Joint Administrators Garry Wilson and Robert Hunter Kelly offer for sale as a going concern the above company, manufacturers of ambulances and specialized patient transfer buses. Key features of the business include: - Strong market share in U.K. ambulance sector - Based at two leasehold sites in Brighouse, West Yorkshire buildings of 5173 and 1151 square meters. - Turnover GBP 15m - ISO 9000 accredited - 166 employees, although currently reduced to basic requirement of 39 - Forward order book Interest parties' ability to execute the transaction(s) in a limited timescale will be key to concluding a deal. Contact Information Chris Clegg PO box 61 Ernst & Young Cloth Hall Court 14 Kings Street Leeds LS1 2JN Telephone: +44 (0) 113 298 2002 Fax: +44 (0) 113 298 2201 *********** 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. 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