/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020806.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 Tuesday, August 6, 2002, Vol. 3, No. 154 Headlines * B E L G I U M * GIB SA: Grocery Retail Operator Sells Lunch Garden to Carestel * F R A N C E * ALCATEL: Conducts 3G Multimedia Call on UMTS Network in Malaysia FRANCE TELECOM: Sells Stellat to Eutelsat for EUR 180MM VIVENDI UNIVERSAL: Merges 11 Vivendi Subsidiaries in Hungary VIVENDI UNIVERSAL: Sells Customer Base in Internet Venture * G E R M A N Y * BABCOCK BORSIG: Discusses Restructuring Plan With Roland Berger BABCOCK BORSIG: Jenoptik Acquires Babcock's Krantz Unit DEUTSCHE TELEKOM: Banks Warn Cable Unit Bidders on Unsure Funding EM.TV Consolidated Media Sector Will Be Strengthened KIRCHMEDIA: US Tycoon Saban Bids EUR2.6 BB for KirchMedia KIRCHGRUPPE: Court Rules in Favor of Kirch RECHTEHANDELS GMBH: Kirch Units Enters Insolvency Proceedings * I T A L Y * FIAT SPA: Will Sell Half of Teksid Components Unit for EUR460 MM * N E T H E R L A N D S * KPN NV: Announces Completion of Disposal of Cable Activities VERSATEL TELECOM: Expands Product Portfolio With New Services * S W E D E N * SONG NETWORKS: Will Not Make Interest Coupon Payment on August 1 * U N I T E D K I N G D O M * ABERDEEN HIGH: Will File Suit to Recover Investors' Money BALTIMORE TECHNOLOGIES: Pre-announcement of Interim 2002 Results BIG FOOD: Employees Will Decide on Possible Pension Action CARLTON COMMUNICATIONS: Court Says No Liability Over League COMPASS GROUP: Whitbread Eyes Travelodge, Little Chef Operations LONDON CLUBS: Final Results for 52 Weeks Ending March 31, 2002 LONDON CLUBS: Michael Beckett Appointed as Chairman MARCONI PLC: Begins Search for New Chairman NAVAN MINING: Announces Posting of Circular on Secured Credit NTL INCORPORATED: Will Begin Merger Talks With Telewest Soon QSP GROUP: Newground Buys QSP Shares, in Reverse Takeover Talks TELEWEST COMMUNICATIONS: Announces Changes on Board of Directors TELEWEST COMMUNICATION: Carlton Offers GBP55 MM on SMG Shares WORLDCOM INC.: Sales Fall 50% at WorldCom's European Arm ============= B E L G I U M ============= GIB SA: Grocery Retail Operator Sells Lunch Garden to Carestel -------------------------------------------------------------- GIB and Carestel have signed an agreement for the purchase by Carestel of 100 % of the capital of Lunch Garden and it's subsidiary Crock'In, the group announced Friday. This agreement is subject to approval by the relevant competition authorities. Carestel, a Belgian catering & hospitality group, is present in 8 European countries. It operates in 4 business units : the commercial catering, the residences, the hotels and the preparation of fresh meal components. In 2001, net sales reached EUR 231.9 million and operating income EUR 9.0 million. The Carestel group employs some 3000 people. Lunch Garden, Belgian leading self-service restaurant chain, operates 62 restaurants from which 9 are franchised. Crock'In operates 12 sandwichbars from which 1 is franchised. System-wide sales reached EUR 115.1 million in 2001 and operating profit EUR 2.6 million. Lunch Garden and it's subsidiary Crock'In are employing more than 1600 people. This transaction will have a net positif impact of EUR 16.2 million on GIB GROUP's consolidated profit for 2002. =========== F R A N C E =========== ALCATEL: Conducts 3G Multimedia Call on UMTS Network in Malaysia ---------------------------------------------------------------- Alcatel - www.alcatel.com -- announced on August 2 that it has conducted the first voice, data and video communications on the end-to-end UMTS trial system installed in Kuala Lumpur by Alcatel. For the very first time in Malaysia, a UMTS infrastructure network carries not only voice communications in circuit mode but also allows the transfer of data and high-speed video images in packet mode, in full compliance with W-CDMA 3GPP standards. These calls were demonstrated to the media in Kuala Lumpur today. Numerous tests have confirmed the Alcatel Evolium(TM) UMTS infrastructure's quality in the area of high-speed data and video transfers. Whether for videophony calls between two 3G handsets, surfing the Internet (Web Browsing), having on-line access to information, images or videos (Video Streaming and Downloading), or for transmitting video images from a remote Webcam. The Alcatel 3G/UMTS pilot network provides data rates of up to 384 kbit/s. Alcatel installed in Kuala Lumpur its complete Evolium(TM) solution including the UTRAN (UMTS Terrestrial Radio Access Network) radio systems, the Core network; as well as the associated Radio Network Controller (RNC) and a dedicated Application Service platform. The radio systems, which include the UMTS base stations (Node B) are developed and produced by Evolium SAS, the joint venture between Alcatel and Fujitsu. "In 2000, Alcatel provided Malaysia with the first end-to-end GPRS solution. Today, we are proud to bring the real 3G age to Malaysia by conducting the first mobile multimedia call here,'' said John Quaeyhaegens, Country Senior Officer of Alcatel Malaysia. ''3G offers great potential for end-users because of the high bandwidths available for wireless multimedia applications in addition to voice calls. Today's call proves that Alcatel is the only vendor to have 3G networks already operational, which can support the full range of 3G applications." "A recent study by Pyramid Research concluded that there are already 350,000 subscribers in Malaysia that can afford mobile data applications costing between US$10-$20 a month (RM40-75). This makes Malaysia one of the most attractive markets for high- bandwidth services in South East Asia. 3G operators will certainly be looking to the kinds of applications Alcatel has demonstrated today to lure those subscribers and capture that potential," said John Barrett, Asia Pacific Senior Analyst with Pyramid Research. 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. Relying on its leading and comprehensive products and solutions portfolio, stretching from end-to-end optical infrastructures, fixed and mobile networks to broadband access, Alcatel's customers can focus on optimising their service offerings and revenue streams. With sales of EURO 25 billion in 2001 and 99,000 employees, Alcatel operates in more than 130 countries. FRANCE TELECOM: Sells Stellat to Eutelsat for EUR 180MM ------------------------------------------------------- Following approval by Eutelsat shareholders at its General Shareholders meeting last Friday, France Telecom and Eutelsat announce that they have concluded an agreement on the acquisition by Eutelsat of 100% of shares in the Stellat company. Stellat is the company that owns the Stellat 5 satellite launched on July 5. Following the purchase of Europe*Star shareholding in Stellat, the net proceeds of the sale for France Telecom amount to approximately 180 million euros. Based on its original mission, Stellat 5 will provide continuity of services for France Telecom's Telecom 2C satellite. This includes notably the transport of national French broadcasters that will be transferred to the satellite Stellat 5. With the power of Stellat 5 European beams particularly well suited for micro broadcasting services, business TV and high speed Internet access via small terminals, Stellat 5 represents a prime orbital resource for Eutelsat in these growth areas. Giuliano Berretta, CEO of Eutelsat, said: "There were at least four good reasons motivating Eutelsat on the acquisition of Stellat. First, this satellite will strengthen our capacity for video broadcasting in France where an estimated one million homes rely on satellite to receive the French terrestrial channels. "Second, Stellat gives us access to the C-band market, with a substantial payload of 10 transponders providing coverage across the African continent where there is substantial market demand, and also providing connectivity with the Americas. "Thirdly, it will reinforce our broadcasting capacity and in- orbit security over Europe, the Middle East and North Africa, three core markets that represent 80% of our overall turnover. "And finally, the satellite's coverage as far as the eastern seaboard of America dovetails with our strategy to build a key orbital neighbourhood for connectivity between the American continent and Europe. This strategy began with the launch of ATLANTIC BIRDT2 to 8 degrees West that will shortly be joined at 12.5 degrees West by ATLANTIC BIRDT1." Jean-Yves Gouiffes, Executive Director, Network Branch of France Telecom, commented: "This sale - the first of those announced last March with regard to our holdings in satellite operators - is part of our policy to focus on our core business as a telecommunications services operator. "France Telecom does not need to be a satellite operator itself in order to continue providing its services to its clients. We shall of course continue to use satellite infrastructure to carry our traffic and develop specific services, in particular via our division France Telecom Long Distance and our subsidiaries, notably via GlobeCast, for which Eutelsat remains a long-standing preferred partner". France Telecom is one of the world's leading telecommunications carriers, with more than 107 million customers on the five continents (220 countries and territories) and consolidated operating revenues of 43 billion euros for 2001 (22.5 billion euros at June 30, 2002). Through its major international brands, including Orange, Wanadoo, Equant and GlobeCast, France Telecom provides businesses, consumers and other carriers with a complete portfolio of solutions that spans local, long-distance and international telephony, wireless, Internet, multimedia, data, broadcast and cable TV services. France Telecom is the second-largest wireless operator and Internet access provider in Europe, and a world leader in telecommunications solutions for multinational corporations. France Telecom (NYSE: FTE) is listed on the Paris and New York stock exchanges. Eutelsat S.A. is one of the world's leading operators of communications satellites. The company provides seamless coverage across four continents, encompassing Europe, the Middle East, Africa, southwest Asia and the eastern seaboard of North and South America. Eutelsat's satellite infrastructure gives it wide flexibility to offer video broadcast services, corporate network solutions, Internet access, and mobile services. From its strategic HOT BIRDO orbital position and other orbital positions, Eutelsat transmits more than 1 200 television and 600 radio stations to 98 million cable or satellite homes. With headquarters in Paris, Eutelsat's workforce comprises 400 people from 24 countries. VIVENDI UNIVERSAL: Merges 11 Vivendi Subsidiaries in Hungary ------------------------------------------------------------ Eleven Vivendi companies in Hungary including BakonyTel, DunaTel, EgomCom, KisdunaCom, V-com, V-net and several small Vivendi units merged into Vivendi Telecom Hungary Kft Budapest Business Journal sources say. The 11 companies merged into V-fon and changed its name to Vivendi Telecom Hungary Tavkozlesi Szolgaltato Rt on Friday. V-fon, V-com and V-net will continue to exist as trademarks, the paper adds. The newly merged company has registered capital of HUF20 billion (USD 80.4 million) and has a workforce of 1,200. VIVENDI UNIVERSAL: Sells Customer Base in Internet Venture ---------------------------------------------------------- Vizzavi, the internet venture owned by Vodafone Group PLC and Vivendi Universal, mulls to divest its customer base to cut on expenditures, the Independent on Sunday reports. Subscribers to Vizzavi's home internet access service in the UK are being transferred to Virgin, while Vizzavi's internet access customers in Portugal and France will be acquired by alternative providers by the end of the year, the paper adds. ============= G E R M A N Y ============= BABCOCK BORSIG: Discusses Restructuring Plan With Roland Berger --------------------------------------------------------------- Insolvent engineering company Babcock Borsig AG management disclosed that the company is to coordinate with Roland Berger, a consultancy firm, regarding a restructuring plan, which will include the creation of a lifeboat company, a report from Borsen- Zeitung and the Financial Times said. Previously, Roland Berger, together with BDO, had come up with a rescue concept for Babcock Borsig but creditor banks refused to finance the plan. The company had to file for insolvency thereafter. The engineering group faced a gap in financing of around EUR800 million in connection with the sale of shipbuilding subsidiary Howaldtswerke-Deutsche Werft (HDW). Meanwhile, it is said that Babcock-Borsig has found a buyer for its cooling tower technology division, in the person of US group SPX Corp. The reported divestment was said to be in line with the company's plan of securing as many of its jobs as possible, the papers said. The SPX would secure 1,325 jobs globally in the company's cooling-towers business, some 400 of them in Germany. The Babcock Borsig group as a whole employs 22,000 people. Babcock's management is definite on its goal of trying to keep the company intact retaining as many employees possible. It has 300 subsidiaries, of which 60 made separate insolvency filings. But it is still uncertain which parts of the group will be absorbed in the new Babcock Borsig, the papers reported. BABCOCK BORSIG: Jenoptik Acquires Babcock's Krantz Unit ------------------------------------------------------- The Jenoptik Group is extending its expertise in the area of technical facility systems. The Jenoptik subsidiary, M+W Zander, is acquiring segments of the technical facility systems unit of the Krantz TKT Group, a subsidiary of Babcock Borsig AG. The Jenoptik Group is strengthening its Clean Systems business division. Effective August 1, 2002, the Jenoptik subsidiary M+W Zander is taking over parts of the technical facility systems unit of the Krantz TKT Group based in Bergisch-Gladbach, Germany, a subsidiary of Babcock Borsig AG of Oberhausen, Germany. Krantz TKT is one of M+W Zander's greatest competitors on the technical facility systems market and as a technical general contractor. In addition to this area of core expertise M+W Zander is acquiring Krantz's clean systems activities and key segments of its research and development unit as well as its ventilation system component production. M+W Zander is provisionally taking on a total of 1,150 employees and a projected sales volume of approximately 300 million euros for the next fiscal year, subject to the approval of the German Federal Cartel Office. With the consolidation of business activities, M+W Zander will not rule out the possibility of personnel-related measures subsequent to the acquisition of the Krantz units. M+W Zander anticipates that some 300 jobs will have to be eliminated. Both parties have agreed to maintain secrecy concerning the amount being paid for the acquisition. The Jenoptik Group will not take advantage of any state aid in the form of guarantees or the like for this acquisition. With the insolvency of Babcock Borsig AG leading to a market adjustment, Jenoptik is taking the opportunity to become the German market leader for technical facility systems through acquisition of segments of the company. The client structure and geographic presence of M+W Zander and Krantz TKT complement each other well. Contact Information: Steffen Schneider Investor Relations Telephone/Fax: +49-3641-652290/3629 DEUTSCHE TELEKOM: Banks Warn Cable Unit Bidders on Unsure Funding ----------------------------------------------------------------- Bankers who lend money for leveraged buyouts have warned Goldman, Sachs & Co. and other bidders for Deutsche Telekom AG's cable business that they may have difficulty getting financing, a report from the Bloomberg said. Deutsche Telekom has received five bids for its TV cable network in the range of EUR2-3 billion. But it is said that many banks have already sold more loans than they want to cable companies. The only precedent for financing at DT's cable business is discouraging. Callahan Nordrhein-Westfalen GmbH, which bought 55 % of Deutsche Telekom's cable network in the German state of North Rhine- Westphalia two years ago, last month filed for insolvency, citing mounting debt, the news outfit said. Other European cable businesses are experiencing difficult times. The five bidders for the cable-television networks are U.S. investment bank Goldman, which may bid jointly with venture- capital investor Primera; Providence Equity Partners Inc. with Apax Partners; CVC Capital Partners and Warburg Pincus; buyout firms Hicks, Muse, Tate & Furst Inc. and BC Partners Ltd., the Bloomberg said. EM.TV Consolidated Media Sector Will Be Strengthened ---------------------------------------------------- Unterfohring-based EM.TV & Merchandising AG will be strengthened with the current process of consolidation of the media sector. This assessment was confirmed by Werner E. Klatten, EM.TV's Chairman of the Management Board since September 2001, at last week's Annual General Meeting in Munich. Commented Klatten: "In the course of 2001 and 2002 to date we reached the turn around point in many fields. What we have to do now is principally to broaden our core businesses of children and young people-oriented rights dealing and merchandising into new genres and older target groups." In implementing these plans, EM.TV will profit from its enhanced strengths - its international network of production and distribution partners, large programme library and approved marketing skills. A milestone in the development of the company was reached in April 2002 with the acquisition of the European marketing rights in merchandising for the FIFA World Cup 2006TM to be held Germany, the biggest and most important merchandising rights in the world. Says Rainer Huther, Member of the Management Board Marketing and Sales: "The acquisition of these rights will accelerate the transformation of EM.TV into a full merchandising agency. We shall cover the whole value chain from market research through the advising of licensees and licensing of rights to the production of selected merchandising products. In addition, we have an opportunity to co-operate with blue-chip customers such as large retailers more closely than before and strengthen the internationalisation of our business. The basis for all our investments will be rigorous investment appraisal." At the AGM in Munich's International Congress Center (ICM), Werner E. Klatten reaffirmed to shareholders the board's strategic objective: "EM.TV shall become a leading independent and internationally active program company for young target groups." In the current financial year, the further restructuring of the group's investment portfolio is on the agenda. In the upcoming months, a solution will be sought for the remaining holding (16.7 %) in the Formula 1 Group, which is pledged to the Kirch Group's banks. EM.TV remains convinced of the recoverability of the asset. The company's aim is therefore to achieve a significant cash inflow from the asset either in co-operation with the Formula 1 banks or through the courts. A strategic partner or outright sale is being sought for the wholly-owned Jim Henson Company subsidiary. EM.TV has currently no plans to dispose of the shareholdings in Constantin Film AG (16.4 %) or the Tele Munchen Gruppe (45 %). The Management Board assumes an increasing value of the holding in the Tele M�nchen Gruppe as a result of the present market upheavals. EM.TV remains engaged in promising negotiations with the insolvent KirchMedia about an increase in the 50 % holding in the Junior.TV joint venture. EM.TV will play an active part in the current consolidation process in the media sector. Rigorous investment criteria and the group's liquidity situation will of course be prime considerations in this. However, a priority in every measure taken is a return to profitability. The unchanged aim is to report positive earnings before interest and taxes (EBIT) in 2004. The AGM was attended by around 1,500 shareholders. The presence at the beginning of the meeting represented about 51 per cent of the ordinary capital. Contact: Frank Elsner Kommunikation fur Unternehmen GmbH Tel.: + 49 - 54 04 - 91 92 0 Fax: +49 - 54 04 - 91 92 29 mobile: +49 - 170 - 48 15 181 Email: Info@em-ag.de KIRCHMEDIA: U.S. Tycoon Saban Bids EUR2.6 BB for KirchMedia ---------------------------------------------------------- U.S. billionaire, Haim Saban has extended an offer of EUR2.6 billion for KirchMedia assets, making his bid the highest among the bids for the insolvent Germany company, a report from AFX News said. The news outfit said that Saban noted that the Sueddeutsche Zeitung is not seriously interested in buying the KirchMedia assets, which include a 52.5% stake in ProSiebenSAT.1, a film library, and a sports rights business. The French broadcaster TF1 follows behind Saban's lead with an offer of EUR2.2 billion. It is said that the French company may possibly join Saban in the next step of the bidding, the news outfit reported. The four-member consortium led by publisher Axel Springer Verlag with HypoVereinsbank, Heinrich Bauer Verlag and Spiegel-Verlag has offered EUR1.9 billion, the news outfit added. It is also reported that U.S. broadcaster NBC and Hollywood Studio Columbia-TriStar were also serious contenders. It is said that the auction will be narrowed to three candidates in the coming weeks. As of the present, seven bids have been lodged. Earlier, the insolvent KirchMedia announced that it has received seven offers, with a highest bid of EUR2.6 billion. The company disclosed that it expects a final decision on the sale by the end of August or the beginning of September, AFX said. KIRCHGRUPPE: Court Rules in Favor of Kirch ------------------------------------------ A Berlin court ruled in favor of Leo Kirch's KirchGruppe against fellow media giant Axel Springer Verlag AG on Friday over the insolvent company's application asking that Springer be forced to hold an extraordinary shareholders' meeting, a report from Handelsblatt said. The daily added that Leo Kirch's Print Beteiligungs GmbH holds a 40% stake in Springer, making him a major shareholder in Europe's largest newspaper publisher. But Kirch, whose empire is now largely insolvent, no longer has direct control over the stake since it was used as collateral against a credit from Deutsche Bank. Previously in June, Mr. Kirch had resorted to legal action in an effort to ensure that an extraordinary meeting would be held. The Berlin court's ruling on Friday means that Kirch's action has been successful, the paper said. However, a spokesperson for Springer said that the meeting could not take place before mid-September at the earliest, the daily said. Mr. Kirch's goal in calling for a shareholders' meeting is to win approval from Springer's shareholders regarding his plan to begin investigating Springer's decision in January to exercise EUR767 million put option on shares in broadcaster ProSiebenSat.1 Media - part of Kirch Media. Springer's move to exercise the put-option has been seen as one of the major factors that triggered the Kirch empire's demise, the paper said. Mr. Kirch claims that the move was exercise in order to force him to sell his stake in Springer and rid Friede Springer, the widow of company founder Axel Springer, of an uncomfortable minority shareholder, the paper added. The shareholders in a meeting last June had rejected Kirch's motion, which would have forced Springer to sue its own board and its main shareholder, Friede Springer, for damages, the Handelsblatt said. RECHTEHANDELS GMBH: Kirch Units Enters Insolvency Proceedings ------------------------------------------------------------- Kirch PayTV subsidiaries PayTV Rechtehandels GmbH and Pay TV Rechtehandels GmbH & Co KG recently began insolvency proceedings, the Borsen-Zeitung and the Financial Times said. The appointed insolvency administrator for both units is Joseph Fuchsl. ========= I T A L Y ========= FIAT SPA: Will Sell Half of Teksid Components Unit for EUR460 MM ---------------------------------------------------------------- Beleaguered Italian car maker Fiat SpA has decided to sell the profitable half of its Teksid components unit to private equity investors for EUR460 million in cash and assumed debt, the Financial Times said. The sale of the Teksid components is the second major sale after Fiat's banks imposed a restructuring plan to decrease the company's debt pile and prevent further downgrade of its bonds to junk status, the paper said. But the company's shares and bonds did not escape pressure last week following Fiat's revelation of another huge loss at Fiat Auto, its loss-making unit. Investors have also been increasingly apprehensive that the asset sales won't be enough to help the company's drowning finances, the daily said. Despite a massive profit from the sale of one-third of Ferrari in June, Fiat last Monday reported a second-quarter net loss of EUR34 million, and Fiat Auto had an operating loss of EUR394 million and cash outflow of EUR700 million. The Italian carmaker's shares on Friday plunged 4.3% to EUR9.76, a 17-year-low. The company's bond prices also fell drastically last week, inciting renewed speculations that Fiat's debt rating could be downgraded to junk status, the Financial Times said. ===================== N E T H E R L A N D S ===================== KPN NV: Announces Completion of Disposal of Cable Activities ------------------------------------------------------------ With the sale of Vision Networks Tsjechie BV (Czech Republic) by its wholly owned non-consolidated subsidiary Vision Networks, KPN has completed the disposal of its cable activities except for an immaterial interest in Poland, the group announced Monday. KPN had earlier disposed of its cable interests in the Netherlands, the United Kingdom, France and Germany. The Supervisory Board of Vision Networks has informed shareholder KPN that the Board will cease to exist in September because after the sale of the Czech interest Vision will no longer engage in any substantial activities. From the same date, the assets of Vision Networks will revert to KPN in accordance with provisions made at the time of Vision's establishment. When Vision Networks was established on 1st January 1997, KPN transferred to the new independent company a sum of NLG 1.7 billion (charged to the stockholders' equity of Koninklijke PTT Nederland NV) and for that reason discontinued its consolidation. This transaction eliminated all cable activity risks for KPN. Vision Networks issued a loan to KPN partly from the revenues obtained from the sale of activities (Casema (Holland) and ComTel (UK)). KPN will now obtain full control over Vision Networks and will consolidate the company (including its remaining liabilities) on completion of the sale of the Czech activities. The loan will then cease to exist in the consolidation. Consequently, the external debt on the balance sheet of the KPN Group will decrease by approximately EUR 630 million and stockholders' equity will increase by approximately EUR 700 million. VERSATEL TELECOM: Expands Product Portfolio With New Services ------------------------------------------------------------- Versatel Nederland B.V. - www.versatel.com -- announced August 2 that it has expanded its product portfolio with several new services. As of September 2002, Versatel will offer 2 new telephony products to the business market; ISDN-30 and ISDN-20 connections over regular copper lines. With Extended E1 (2 Mbps) solution, Versatel also will provide advanced fixed connections for both the carrier market as well as medium and large businesses. Additionally, as of 1 August 2002, Versatel will offer an improved solution to the SME market by handling local 6 and 7-digit telephony traffic of its customers via its carrier preselect Business Telephony service. ISDN-30 and ISDN-20 over copper The introduction of these 2 new telephony products is Versatel's response to the growing demand in the market for reliable digital telephone connections. Thanks to new DSL technology, Versatel is able to offer a cost-effective alternative for current ISDN connections. The new product varieties of ISDN-20 and ISDN-30 (over copper) are an important supplement to ISDN-2 connections and the ISDN-30 connections (over optic fiber cable) that Versatel currently offers. Beginning in September, Versatel will add these 2 products to its existing product portfolio with the goal of providing tailor-made telephony solutions to service the entire business market. Extended E1 leased circuit Versatel developed the new Extended E1 product especially for organizations that need transparent fixed connections based on copper. By providing 2 Mbps access connections, Versatel will target the carrier market and other telecom operators as well as medium and large businesses. These transparant 2 Mbps leased circuits will be available from all the central offices that are connected to Versatel's own broadband fiber optic network. This new service is a supplement to Versatel's current leased circuits and contains a service level agreement to guarantee quality and availability. Local telephony traffic via carrier preselect Since 1 August, Versatel has gained access to the local telephony market, which makes it possible to handle local telephony traffic for its carrier preselect customers with savings of up to 30 percent on voice calls. Previously, this service was only possible with the national and international telephony traffic. Atilla Goltuna, Managing Director of Versatel Nederland, stated: "Versatel continuously develops and implements new technologies in order to service the business market with optimal voice, data and Internet solutions. Versatel's new telephony and leased circuit products illustrates our commitment to providing the entire business market, regardless of the size of the company, with custom-made telecommunication services." Versatel Nederland, part of Versatel Telecom International N.V., is based in Amsterdam. The company is a competitive telecommunications network operator and a leading alternative to the former monopoly telecommunications carriers in our target market of the Benelux and Northwest Germany. Founded in October 1995, the Company holds full telecommunications licenses in The Netherlands, Belgium and Germany and has over 79,000 business customers and 1,267 employees. Versatel operates a facilities-based local access broadband network that uses the latest network technologies to provide business customers with high bandwidth voice, data and Internet services. Versatel is a publicly traded company on Euronext Amsterdam (symbol "VRSA"). Contact Information: AJ Sauer Manager Investor Relations and Corporate Development Telephone: +31-20-750-1231 Email: aj.sauer@versatel.nl Anoeska van Leeuwen Director Corporate Communications Telephone: +31-20-750-1322 Email: anoeska.vanleeuwen@versatel.nl =========== S W E D E N =========== SONG NETWORKS: Will Not Make Interest Coupon Payment on August 1 ---------------------------------------------------------------- Song Networks Holding AB - www.songnetworks.net -- announced on August 1 that its wholly owned subsidiary Song Networks N.V. will not make the interest coupon payment scheduled for August 1 on the EUR175,000,000 12% Senior Notes due 2008. Operations throughout Song Networks are otherwise unaffected at this time. Song Networks plans to issue an update on the restructuring during August. Formerly Tele1 Europe, Song Networks is a data and telecommunications operator with activities in Sweden, Finland, Norway and Denmark. The Company's business concept is to offer the best broadband solution for data communication, internet and voice to businesses in the Nordic region. This means that Song Networks supplies communication solutions that are attractively customized for each corporate customer. Song Networks is currently the only pan Nordic operator investing in local access networks with broadband capacity. The Company has built local access networks in the largest cities in the Nordic region. The access networks, which are linked by a long-distance network is one of the fastest data and internet super-highways in Europe, with an initial capacity for customers of up to one gigabit. The Company was founded in 1995 in Sweden and has approximately 1,000 employees. The head office is located in Stockholm and there are an additional 34 offices located in the Nordic region. Contact Information: Tomas Franzen, CEO Song Networks Holding AB Telephone: +46 8 5631 0111 Mobile: +46 701 810 211 Email: tomas.franzen@songnetworks.net Jenny Moquist Investor Relation Manager Song Networks Holding AB Telephone: +46 8 5631 0219 Mobile: +46 701 810 219 jenny.moquist@songnetworks.net =========================== U N I T E D K I N G D O M =========================== ABERDEEN HIGH: Will File Suit to Recover Investors' Money --------------------------------------------------------- A firm of solicitors is planning to take legal action against a fund manager on behalf of investors in Aberdeen High Income Trust, who lost money when one of its trusts collapsed, a report from IC Wales said. The investors were warned on Monday that it was unlikely they would get any money back after the trust went into receivership, the paper said. However, the paper said that solicitor Leon Kaye plans to file a class action case against Aberdeen High Income Trust to reclaim some cash for investors, many of whom had seen the value of their holding dive by 90% before the receivers were called in, the daily said. The solicitor claims that Aberdeen High Income Trust was a high- risk investment but was not marketed as such. In addition, the trust came under the umbrella of Aberdeen Asset Management, the fund manager and any other holding company could be pursued for compensation as the promoter of the fund, the paper said. An action group of Split was created by Leon Kaye to try to get compensation for people who have lost money in split capital trusts, the IC Wales reported. BALTIMORE TECHNOLOGIES: Pre-announcement of Interim 2002 Results ---------------------------------------------------------------- Baltimore Technologies announced yesterday that it will be reporting interim results for the six months ending June 30, 2002 on September 10, 2002. On that date Baltimore expects to report that it is continuing to trade in-line with expectations, that it has been continuing to make good progress with its restructuring, and continues to reduce its costs of sales through maximizing operational efficiency. Baltimore expects that revenues for the six months ended 30 June 2002 will be reported in the range of GBP21.5 million to GBP22.5 million and that the net cash balance as at June 30, 2002 stood at GBP23.059 million excluding approximately GBP1.0 million still to be received from CGI Limited in connection with the sale of part of Baltimore's shareholding of Baltimore Technologies Japan. Bijan Khezri, Chief Executive of Baltimore Technologies plc commented: 'We have made very real headway in rationalizing the business during this half year, yielding significant cash and heavily reducing the ongoing working capital requirements of the business. Together these two factors have strengthened our financial position enabling us to focus on our core business of authentication, digital signing and authorization technologies, as our technology continues to be a key part in leading government, finance and wireless infrastructure projects.' Baltimore Technologies' products, professional services and solutions solve the fundamental security needs of e-business. Baltimore's e-security technology gives companies the necessary tools to verify the identity of whom they are doing business with and securely manage which resources and information users can access on open networks. Baltimore's products and services are sold directly and through its worldwide partner network, Baltimore TrustedWorld. Baltimore Technologies is a public company, trading on the London Stock Exchange (BLM). BIG FOOD: Employees Will Decide on Possible Pension Action ---------------------------------------------------------- Big Food Group's employees are set to discuss whether to bring proceedings against the company over its decision to close its final salary pension scheme, a report obtained from the Telegraph said. Solicitor Barry Mordsley, who represents 1,000 of the 4,000 employees under the scheme, revealed that he and his barrister are planning to meet with representatives of his clients on Friday, the daily reported. He further noted that if they would come up with a decision, its very possible that they would take action against the company and its trustees. The exact nature of the action taken would be determined in the meeting, the paper added. The Big Food Group, which closed the scheme at the end of last month, owns the frozen food chain Iceland and Booker cash and carry shops. Only 10 days ago Bill Grimsey, the chief executive who took over in January 2001, issued his fourth profits warning since taking charge. A Big Food spokesperson said that the company hadn't received any impending writ yet, the Telegraph said. CARLTON COMMUNICATIONS: Court Says No Liability Over League ----------------------------------------------------------- Carlton Communications Plc and Granada plc welcome the judgment given on August 1 in the High Court declaring that neither Carlton nor Granada have any liability to The Football League Limited in connection with the broadcast rights contract between The Football League and ONdigital. Contact Information: Susan Donovan Granada plc Telephone: 020 7737 8719 John Rudofsky Carlton Communications Plc Telephone: 020 7663 6363 COMPASS GROUP: Whitbread Eyes Travelodge, Little Chef Operations ---------------------------------------------------------------- Travel Inn owner Whitbread is considered the first suitor for Compass's Travelodge and Little Chef operations, the Guardian said. Whitbread's better performing divisions are budget hotels, and the addition of 220 Travelodges and 400 Little Chefs is thought to be an attractive prospect, the paper said. However, it is said that it will be unlikely for Whitbread's chief executive David Thomas to pay a premium for the two brands. And if he were to buy the 660 properties, he would convert them to operate under the Travel Inn's name, the daily added. Another possible bidder, Six Continents, owner the Holiday Inn brand, is also not expected to come up with a premium bid for similar reasons as Whitbread's, the paper said. Compass and Whitbread are said to be on the initial stage of negotiations. It is said that Whitbread may not emerge as the favourite among bidders during the bidding proper, the paper said. Other possible bidders are said to be more likely to pay a full price for the two brands. Nikko Principal Investments, owner of Roadchef, is said to pursue a bid, the daily reported. Some of the prospective suitors are French hotels firm Accor, which has declared its intention to expand in the British market; and Scottish & Newcastle, which owns the Premier Lodge chain, the Guardian said. LONDON CLUBS: Final Results for 52 Weeks Ending March 31, 2002 --------------------------------------------------------------- HIGHLIGHTS * Debt facilities extended until June 2004 * Strategic review to be undertaken to reduce gearing and take advantage of proposed industry deregulation * Group turnover of GBP152.5m (2001: GBP151.6m) * Group operating profit, excluding Aladdin write-off, of GBP0.2m (2001: GBP19.2m) * Results affected by bad debt provision, non-recurring pre- opening and start-up costs and professional fees * Promising current trading across all the Group's casinos other than Taba * Brighton casino opened on schedule in February 2002 Contact Information: Luke Morton / Billy Clegg Bell Pottinger Financial Tel: 020 7861 3881 / 3867 Chairman's review I am pleased to report that, following lengthy discussions, the Company has reached agreement with its lenders. This provides GBP15 million of additional working capital and extends the availability of its debt facilities until June 2004. The last ten months have been a difficult period for the Company, following the filing for Chapter 11 by Aladdin Gaming. Whilst our London operations have recovered from the poor first half, the uncertainty arising from the ongoing negotiations with the lenders has inevitably affected our business and the morale within the Company. We are now facing a new challenge. The Company has committed to its lenders to undertake a strategic review of the options available and to significantly reduce leverage and position the Company to take advantage of the opportunities anticipated from the deregulation process. The continuing support of our lenders through this process places the Group in a significantly stronger position. Financial results Group turnover for the year ended 31 March 2002 was GBP152.5 million (2001: GBP151.6 million). Group operating profit excluding the impact of the Aladdin write off was GBP0.2 million (2001: GBP19.2 million). This decline in profitability was due primarily to the high level of outstanding debts in London and non-recurring pre-opening and start up costs associated with the regional casinos and South African operations. Unfortunately, we have also been obliged to incur substantial professional fees and other costs in connection with the refinancing negotiations. As indicated last year, full provision has been made against amounts carried in the Group's balance sheet for the Aladdin investment. London casinos In December we indicated that the cash drop in our London casinos in the first half of the year had been at record levels and, in the initial months of the second half of the year, business levels had remained buoyant. This trend continued during the remainder of the year, but with an improved win percentage. However, our two top-end casinos, Les Ambassadeurs and 50 St James, continued to experience levels of outstanding debts significantly higher than the previous year. In the middle market, trading at the Rendezvous, which derives much of its business from the Middle East, was slightly disappointing. The Palm Beach, which had been substantially refurbished during the last 12 months, re-established itself by the end of the year but on a slower trend than we had anticipated. At the lower end of the market, The Sportsman produced another good performance and The Golden Nugget generated both a record win and profit for the Group. Regional casinos The Rendezvous Casino in Southend, which opened in 2001, enjoyed good levels of activity throughout the year, although its profitability was depressed by non-recurring pre-opening costs. The Group's second regional casino in Brighton opened on schedule in February 2002 and did not therefore impact materially on the financial year. Overseas In Egypt, trading at our Cairo casino improved considerably on the previous year, resulting in an increased contribution to the Group. The casino in Taba continued to be affected by the uncertainties existing in the Middle East. The Emerald Safari Resort and Casino in South Africa opened fully in May 2001 and although the casino operation continued to perform reasonably well after its relocation to the permanent premises, the other activities in the resort, and in particular the hotel and catering operations, have taken time to settle down. The casino market in Gauteng Province has remained buoyant and the Emerald Safari Resort has now established itself as a popular destination offering a wide variety of leisure and entertainment facilities. During the year, and in particular following the events of 11 September, the Group decided not to pursue the development of its proposed casino in the Bahamas. Current trading Trading in the Group's London casinos in the first few months of the new financial year has been satisfactory, with business levels in excess of those experienced in the same period in the previous year. The incidence of new outstanding debts has declined to a level in line with our normal experience and we are confident that the residual balance of debts incurred last year will be recovered in the current financial year. In the regions, our Southend casino has now firmly established itself in the market place and the Brighton casino, despite having only been opened for some 5 months, already looks promising. The development of the Group's other two proposed casinos, in Northampton and Manchester, has been delayed and they are now scheduled to be opened in the early part of the next financial year. Whilst it is now the winter season in South Africa, the Emerald Safari Resort and Casino is experiencing much improved levels of business compared to last year, which augurs well for its prospects during the South African spring and summer months. Our casino in Cairo continues to trade very successfully and at a much higher level than the previous year although, because of its location, our Taba operation has remained depressed. The Group's Middle Eastern operations will serve to insulate us against any reductions in the level of business derived in London from the Middle East. Chairmanship and employees It remains for me to say, at the conclusion of my temporary period as Chairman, that a disproportionate amount of senior management time and energy has, over the last year, been devoted to resolving the Group's position with its various lenders. It is very clear that the underlying business has inevitably suffered as a result, and the Board and the Company's Senior Management look forward to concentrating on the day-to-day running of the business, under the enthusiasm and energy of my successor, Michael Beckett. Finally, I would wish, as always, to record the appreciation of the Board for the efforts and commitment of all of the Group's employees, during what has been an extremely difficult period for the Group. The group's profit and loss statement and balance sheet accounts may be viewed at: http://bankrupt.com/misc/london.pdf LONDON CLUBS: Michael Beckett Appointed as Chairman --------------------------------------------------- London Clubs International plc announced last week the appointment to the Board of Michael Beckett as Non-executive Chairman with immediate effect. Ron Hobbs, who has been fulfilling the role of Chairman on a temporary basis, will continue as a Non-executive Director. Mr Beckett is currently Non-executive Chairman of Clarkson PLC and Watts Blake Bearne & Co PLC and is also a non-executive director of BPB PLC and Queens Moat Houses PLC. During the previous five years, he has also been a director of Greycoat PLC. There are no other disclosures to be made under paragraph 16.4 of the Listing Rules. Contact Information: Luke Morton / Billy Clegg Bell Pottinger Financial Telephone: 020 7861 3881 / 3867 MARCONI PLC: Begins Search for New Chairman ------------------------------------------- Marconi Plc is set to search for a new chairman to replace Mr. Derek Bonham who will step down from his post after the completion of the company's restructuring, the Independent reported. Marconi is set to reach a debt-for-equity deal later this year. The completion of the deal will leave its banks, among which are HSBC and Barclays, with over 50% of the equity, the paper said. Mr. Bonham had indicated his decision to leave the company and is currently taking part of the search for the new chairman. The search is said to have started just recently and no information has been disclosed regarding what sort of calibre of executive Marconi is looking for, the paper said. But Marconi, a source said, is quick to stop rumors that its managing director Mr. Muke Parton or its finance director Mr. Steve Hare would also be quitting, the paper added. The company has been trying to break off bankruptcy since it started facing financial woes after sales collapsed forcing it to fire thousands of staff. It has GBP4.3 billion of debt including bank borrowings of about GBP2.2 billion, the paper said. At the end of April, the company said it had ring-fenced about GBP850 million of its then GBP1.4 billion cash pile, which is sitting in a safe bank account and which will go toward the restructuring. Marconi amassed its huge debt mountain when its former bosses embarked on a multibillion-pound spending spree to turn GEC, a traditional industrial conglomerate into Marconi, a New Economy player. In order to decrease its debt pil, the new management has been selling off-core divisions that play no part in its core activity. Last Friday it agreed to the GBP400 million sale of its Italian communications business to Finmeccanica, the Italian defence giant. Under the terms of the debt-for-equity deal, shareholders will eventually receive almost nothing. After the deal will be completed, bondholders who have bought Marconi debt in return for annual coupon payments, will own the remainder of the company. Marconi owes it bondholders about GBP2 billion. Bondholders are on an equal footing with the banks in terms of creditor status, the Independent said. NAVAN MINING: Announces Posting of Circular on Secured Credit ------------------------------------------------------------- Navan announces that on Friday it posted a circular to shareholders regarding an equity credit line facility with GEM Global Yield Fund Limited (GEM) and proposed amendments to its share option schemes. Navan announced on April 30, 2002 its preliminary statement of results for the year ended December 31, 2001. This announcement provided a summary of the refinancing of the Company and its subsidiaries which took place during the period from December 2001 to February 2002. As a part of this refinancing, the Company agreed in principle the terms of a GBP7 million equity credit line facility with GEM as described in a second supplementary prospectus to shareholders dated February 11, 2002. The formal subscription agreement (the "Subscription Agreement") was entered into by the Company, GEM and GEM Investment Advisers, Inc. on July 29, 2002 and is for a basic term of 3 years. Shareholder approval for the Subscription Agreement is being sought in order that shares issued to GEM pursuant to drawdowns by the Company under this facility will be deemed 'issues for cash' under the respective Listing Rules of the UK Listing Authority and the Irish Stock Exchange. A full description of the facility is contained in the circular. Following the refinancing referred to above, Mr. Laurence Marsland was appointed Chief Executive of the Group on February 27, 2002 and was offered a remuneration package which included 4,292,052 share options, 2,500,000 of which were granted on February 27, 2002 at an exercise price of GBP0.20. The Company is now proposing amendments to the Navan Mining Employee Share Option Scheme and the Navan Mining Executives and Senior Managers Capital Growth Scheme. The Directors believe that the changes to the Schemes are necessary given the current circumstances of the Group following the refinancing. The proposed changes to the Executive Scheme will facilitate the full grant of options to Mr. Marsland which the Directors deem necessary to ensure that the appropriate remuneration package is in place for him as Chief Executive Officer of the Group. Further details of the proposed amendments to the Schemes are set out in the circular to shareholders. An extraordinary general meeting has been convened for 10.30 a.m. on August 27, 2002 at which resolutions will be proposed in relation to the matters described above. NTL INCORPORATED: Will Begin Merger Talks With Telewest Soon ------------------------------------------------------------ NTL Inc is seen to start merger discussions with Telewest Communications PLC after Telewest completes debt restructuring, a report from AFX News said. The news outfit reported that Telewest maybe prepared to speed up the discussion following the appointment of its new chief executive Charles Burdick. U.K.-based cable TV operator, NTL is set to emerge from Chapter 11 proceedings by the end of the month. The company sought restructuring under bankruptcy protection after it was burdened by mounting debt from acquisitions. France Telecom owns 18% of NTL, while Cable & Wireless owns 11%. Emerging from Chapter 11 proceedings will allow NTL chief executive Barclay Knapp to begin negotiations with Telewest, the news outfit said. QSP GROUP: Newground Buys QSP Shares, in Reverse Takeover Talks --------------------------------------------------------------- The Administrative Receivers were informed Friday that Newground Limited has purchased shares equaling 14.1% of the issued ordinary shares of QSP Group PLC. The Company went into Administrative Receivership on October 17, 2001. The Administrative Receivers have been advised that Newground are currently in negotiation with a candidate for a reverse takeover of the Company, which would result in the enlarged entity applying for an admission to the Alternative Investment Market. As a result we have therefore requested that the UK Listing Authority cancels the Company's listing on the London Stock Exchange forthwith. Once outline heads of agreement have been reached, the Company will make a further announcement to shareholders. Contact Information: Neale Jackson/Steve Tancock Telephone: 020 7612 9759 John Bick/Simon Rothschild Telephone: 020 7929 5599 TELEWEST COMMUNICATIONS: Announces Changes on Board of Directors ---------------------------------------------------------------- Telewest announced in July that Adam Singer, chief executive, will be leaving the company and has resigned as a director of the board. Charles Burdick, currently the finance director, will become managing director. Cob Stenham, chairman, said: "Given our current financial position, the independent directors believe the company needs a different management style to take the business through its next phase." Interim results for the period ended June 30, 2002 was announced on Thursday August 1. Mr Burdick was appointed group finance director in February 1997. He was acting group finance director from September 1996. Prior to this he was vice president of finance and assistant treasurer at MediaOne Inc. Prior to joining MediaOne in 1990, he worked in treasury and corporate development roles at, inter alia, Time Warner and Carnation International. Contact Information: John Murray/Jane Hardman Telephone: 020 7299 5888 TELEWEST COMMUNICATION: Carlton Offers GBP55 MM on SMG Shares ------------------------------------------------------------- Carlton Communications intends to offer GBP55 million on Telewest's GBP55 million SMG holding, a report on the Scotsman says. The company plans to bid over Telewest's 17% stake in SMG, Carlton executives revealed over the weekend. According to Telewest's newly appointed chief executive, Charles Burdick, the "non core" SMG stake is likely to be divested in the company's effort to cut its GBP5.3 billion liabilities. This report comes as news that proposals in the government's draft communications bill might cut broadcasters' automatic right to have first refusal on renewing their TV franchises. Carlton and ITV rival Granada have been tipped to make a move for Telewest's SMG holding to win control of STV and Grampian TV - SMG's two ITV franchises. Granada has 17 % stake in SMG and may be forced under stockmarket rules to launch a full bid for the company if it increases its holding to more than 29.9 %, making Carlton the City's favourite to mount a bid. The news adds that Carlton has greater advantage under broadcast regulations to take hold of two further ITV franchises without falling foul of competition authorities because it is slightly smaller than Granada. Although the new terms would not come into effect until 2014, the broadcasters claim it would deter investors as it introduces a new element of uncertainty in their future, and damage their investment plans. ITV and Channel Five are both calling for the clause to be revoked before the bill is written into the statute books next year, the reports says. WORLDCOM INC.: Sales Fall 50% at WorldCom's European Arm -------------------------------------------------------- Sales at WorldCom's European operation, WorldCom International have fallen 50% after its U.S. parent filed for Chapter 11, making the chances that it would be put up for sale more possible, a report from the Financial Times said. The extent of the decline was disclosed by Lucy Woods, chief executive of WorldCom International saying the dip of sales was too low than usual. She further said that customers were less willing to sign up with the company. But she is also quick to confirm that the company is still winning some new business and wholesale sales to rival telecoms operators have increased, the paper said. Moreover, Ms. Woods said that she had expected that the company would report "another positive ebitda month" for July. The unit was still aiming to become free cash flow positive by January next year, the paper said. WorldCom's international arm is believed to be consuming cash at around USD500m a year. This has led to widespread speculation that the operations will be sold. Earlier, several private equity houses such as, the Carlyle Group have signified their interest in buying the group's international operations. British Telecom also confirmed its interest in bidding for the European network, the paper said. On Sunday, WorldCom has expressed its commitment to its international arm saying it is a "core" part of its operations and "one of the largest growth drivers" of the group, the Financial Times said. *********** 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. 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