/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020826.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, August 26, 2002, Vol. 3, No. 168 Headlines * B E L G I U M * REAL SOFTWARE: Restructuring Group Announces Results for H1 2002 * F R A N C E * COMPLETEL EUROPE: Shareholders Approve All Proposals at EGM FRANCE TELECOM: Develops Software to Enable Mobile Video Phone VIVENDI UNIVERSAL: Considers Magazine Division Sale VIVENDI UNIVERSAL: Closes Internet Business Unit Scoot Benelux * G E R M A N Y * ADORI AG: Dr Jan B. Rittaler Steps Down From Management Board ADVANCED MEDIEN: Reports Results for First Six Months of 2002 CINQUE: Fashion Group Dismisses Fidarte's Takeover Bid PIXELNET AG: Reports Increase in Losses in Q2 * I R E L A N D * ELAN COPRPORATION: Enters Into Licensing Deal With Watson Pharma * N E T H E R L A N D S * KPN NV: Will Purchase German KPNQwest Network * P O L A N D * ELEKTRIM SA: Will Not Purchase Shares in ET * S W E D E N * LM ERICSSON: Signs License Agreement on Mobile Tech With Huwaei LM ERICSSON: Signs Panama GSM Contract With Cable & Wireless LM ERICSSON: Signs CDMA2000 1X Contract With BellSouth Panama LM ERICSSON: Sells Holdings in Ericsson Panda Mobile Terminals Co * S W I T Z E R L A N D * SWISSAIR GROUP: Restructuring Irregularities Caused Delay * U N I T E D K I N G D O M * AMELCA PLC: Receivers Sell Milk-processing Business BRITISH AIRWAYS: Stake Drops 17% as It Nixes Qantas Rights Issue CELLTALK GROUP: Court Lifts Administration Order CORUS GROUP: Building Systems Acquires Swedish Profiler CUTTY CATERING: Issues Notice of Meeting of Unsecured Creditors ENVIRONMENTAL POLYMERS: Company Profile RAILTRACK GROUP: Holders Approve Network Rail's Proposal PPL THERAPEUTICS: Cloned Pigs Yield Transplantable Organs TELEWEST: Banks Give Go-Ahead for Telewest's Debt Restructuring TELEWEST COMMUNICATIONS: Appoints Luiz as New Finance Director TRITON WELDING: Receivers Order Sale of Engineering Manufacturer ============= B E L G I U M ============= REAL SOFTWARE: Restructuring Group Announces Results for H1 2002 ---------------------------------------------------------------- For the Real Software Group, 2001 was a year of restructuring and redefining strategy. This year, the group's strategy focuses on core activities in continental Europe, where the group aspires to position itself as a solution provider with high profitability, added value for its clients and value creation for its shareholders. The merger of all Belgian core entities (retroactively taking effect as from 1 January 2002) represents a significant step forward in the ongoing creation of a decentralized structure based around four core divisions During the first half of 2002, work continued on the creation of the new organizational model based around the four operating divisions. On 10 June 2002, 15 Belgian core companies were merged with the parent company. This represented a significant step forward in the integration process and the ongoing creation of the group model. This model is based on a decentralized structure in which the Manufacturing & Maintenance, Business & Government, Banking & Insurance and Retail divisions are being assigned across-the- board operational autonomy, underpinned by a lightweight, efficient corporate structure. Non-core company disposal program proceeds according to schedule. The disposal process for non-core companies was continued with the sale of Infoplex Gmbh on February 25, 2002 and the sale of Britannia Software on April 22, 2002. Both companies were removed from the scope of consolidation on 1 January 2002. All non-core activities with a negative cashflow contribution have disappeared from the group. The program for the disposal of the remaining non-core companies (Oriam in France and Oasis in Singapore) is proceeding according to the proposed schedule. In its core activities during the first half of 2002, the group generated a consolidated turnover of EUR89.0 million, compared with EUR 95.3 in the first half of the previous year (down EUR6.3 million). The element of group turnover deriving from system integration weathered the adverse economic climate well, despite the pressure on Internet activities within system integration. It remained very stable, and even showed a slight increase between the first and second quarters of the year. Out of the overall group turnover of EUR 90.6 million, EUR 67.9 million (75%) was generated from software services and bespoke work. The sale of group software products and associated maintenance revenues accounted for turnover of EUR10.4 million (12%). The adverse economic climate was mainly to blame for the slowdown here and in the areas of infrastructure sales and license sales relating to third-party products. Turnover from the sale of third-party licenses and the associated implementation services accounted for EUR 3.1 million (3%). Infrastructure generated turnover of EUR 9.2 m (10%). Out of this group turnover of EUR 90.6 m, EUR 32.5 m (36%) was generated by the Manufacturing & Maintenance division, EUR 28.1 m (31%) by the Business & Government division, followed by the Banking & Insurance division with a turnover of EUR 18.1 m (20%) and the Retail division with a turnover of EUR11.9 million (13%). The proportion of software services and bespoke work in total turnover is highest in the Manufacturing & Maintenance division (93% of total turnover) and the Business & Government division (78% of turnover). Licenses for group software products and associated services revenue is relatively significant in the Banking & Insurance division (18% of turnover) with the products IBSY, Real Portfolio and VarEDocs and the Retail division with Frontstore and Flexpoint (30% of turnover). Within Manufacturing & Maintenance, Rimses, Fimacs and RITS (the textiles application) and related services generate 2% of turnover. Business & Government makes 10% of its turnover from sales and the provision of associated services, relating mainly to Extasy and Odisy (the book-keeping and ERP application). During the first half of 2002, 73.1% of group turnover was generated in Benelux, compared with 69.6% in 2001. This increase is the consequence of the removal of Britannia (UK) from the scope of consolidation on 1 January 2002 and of Real Software UK Ltd, which was removed from the scope of consolidation in the fourth quarter of 2001. In second place comes France, with 17.9% of group turnover, followed by Switzerland, with 5.1% of group turnover. EBIT margin remains strong; positive net ordinary group result The EBIT margin remains solid, despite significant investments in the technical development of the product portfolio and in a marketing campaign, which were fully taken into account in the profit calculation for the first half-year. The group has also regularized its payment obligations with regard to third parties. The liquidity position is now centrally managed and monitored. Cashflow prospects are showing positive development. Out of a total turnover of EUR90.6 million, during the first half of 2002 the group recorded an EBIT of EUR 8.8 million, representing an EBIT margin of 9.7% of turnover. Given the sale of the non-strategic entities Infoplex and Britannia and their removal from the scope of consolidation as of 1 January 2002, this EBIT is almost exclusively generated by the core companies. The EBIT margin of 9.7% in the first half of 2002 is in line with that for the full financial year 2001 (9.6%), and shows a 0.7% improvement on that achieved in the first half of last year (9.0%). The EBIT margin in the second quarter (9.2%) did not reach the level of the first quarter (10.2%), in line with traditional seasonal fluctuations and as a result of the poor economic climate, which has led to a slowdown in sales of group and third- party software licenses and associated maintenance activities. Taking account of the very difficult market conditions and the slight progress in system integration activities, which are responsible for 75% of group turnover, this result was achieved through cost-control exercises and the first synergies produced by the group's integration and the implementation of the new organizational model. During the first half, the group invested in a development framework which will enable it to further standardize and optimize future system integration and product development activities. The framework will enable system integration projects to be run approximately 30% more efficiently in the future. Likewise, significant investments have been made to adapt the existing product portfolio to the latest technologies and to provide additional functionalities. These investments, which cost EUR 2.3 m, were fully charged to the profit and loss account during the first half. During the first half, a marketing campaign, 'explore the new Real Software', was conducted, the purpose of which was to draw attention to the new group strategy on the group's revised website. The costs of this campaign (EUR 0.2 m) were charged in full to the half's profit and loss account. The merger of 15 Belgian legal entities carried out on 10 June 2002 was the logical sequel to the acquisition of the remaining shares in these strategic subsidiaries, and will lead to the generation of additional operational and financial synergies, taking measurable effect from the second half of this year. As a result of this merger, the cashflow management of all former legal entities has been centralized and brought under the control of the parent company. The group's liquidity position, which from now on will be centrally managed for all Belgian subsidiaries, remains strong, and has put the group in a position to regularize its payments to third parties. After taking account of financial income (EUR 0.366 million), interest and other debt charges (EUR -4.164 million), amounts written off current assets (EUR- 0.074 million), other financial charges (EUR -0.223 million), corporation tax (EUR -2.127 million), minority interests in the group result (EUR 0.324 million) and the share in the result of the companies to which the equity method has been applied (EUR -0.078 million), the outcome is a net ordinary group profit of EUR 2.142 m during the first half of 2002. Of the corporation tax amount of EUR 2.127 million, EUR 1.447 is attributable to the group's foreign entities. The remaining EUR 0.680 million is attributable to the Belgian entities, and relates mainly to joint ventures, which remained outside the scope of the merger. Today, the Real Software Group has 1661 employees, compared with 1744 on 30 June 2001 (based on the companies within the scope of consolidation at present). Extraordinary results mainly due to the sale of non-strategic entities and to exceptional depreciation of consolidated goodwill related to the group's internet activities. Finally, with regard to the extraordinary result, we can report that the sale of the non-strategic companies Infoplex and Britannia and their removal from the scope of consolidation as from 1 January 2002 as well as the exceptional depreciation of consolidated goodwill related to the group's internet activities, largely account for the positive extraordinary result of EUR 0,658 million. This means that the process of disposing of non-strategic holdings, one of the central programs in the restructuring plan, is at an advanced stage. The program is being pursued further for the remaining non-strategic entities (Oriam in France and Oasis in Singapore). After taking account of the extraordinary results (EUR 0,658 million) and the ordinary depreciation of goodwill (EUR 4.840 million), the first half of 2002 saw a net group result of EUR - 2,0 million. Continued reinforcement of capital and reserves During the first half, the capital and reserves stricto sensu were reinforced by a further EUR 3.6 million by three (3) capital increases. These capital increases led to the issue of 1,148,802 new shares. On June 30, 2002, the company's capital was represented by 25,389,142 shares. Two capital increases related to the exercise of warrants that had been issued by the company on 30 April 1997, as a result of which 481,590 and 233,980 new Real Software shares were created on 26 March 2002 and 8 May 2002 respectively. In a third capital increase on 30 April 2002, the company acquired an additional 110 shares (4.7%) in its Luxembourg subsidiary Real Solutions SA, as a result of which it controls 99.13% of Real Solutions either directly or indirectly. This operation was effected by means of a contribution in kind of 110 Real Solutions shares, which had been controlled by a number of key managers of the subsidiary, in exchange for the creation of 433,232 new Real Software shares. As at 30 June 2002, the capital and reserves in the extended definition, i.e. the capital and reserves stricto sensu adjusted for subordinated loans, came to EUR 75,5 m or 30% of the group's balance-sheet total. New agreement with former shareholders of Airial Conseil makes it possible to avoid further dilution. Real Software still has an outstanding remuneration obligation of EUR 15.5 m towards the former shareholders of Airial Conseil (France); this was payable on June 30, 2002 in cash, shares, or a combination. In June 2002, an agreement was reached with the former shareholders of Airial Conseil, which gives Real Software the option of settling its remaining buyout obligations in cash, but no longer ties it to a deadline. EUR3.5 m was immediately paid in July 2002. For the balance, a flexible arrangement has been devised. This should enable the company to settle the outstanding debt in the longer term as cash becomes available, without additional dilution and without incurring liabilities that might jeopardise the company's cashflow position. Corporate governance During the first half, the principles of corporate governance were further applied during six meetings of the board of directors, three meetings of the audit committee and two meetings of the appointments and compensation committee. Prospects The positive developments in the net ordinary group result before depreciation of goodwill and extraordinary results in the first half of 2002, put the group in a position to maintain the previously announced upwards adjustment in the profit forecast for 2002. Allowing for a traditionally weaker third quarter and a traditionally strong fourth quarter, the group confirms that, barring exceptional outside circumstances, it is expecting to generate a net ordinary group profit before depreciation of goodwill of approximately EUR 3.5 m for 2002 as a whole, as previously announced. The group also expects that its EBIT margin should improve in line with the set targets if there is a revival in economic activity, due to the increased share of software licenses in the product portfolio and additional synergies that will be achieved through further integration. A copy of the company balance sheet and income statement may be viewed at: http://bankrupt.com/misc/real.pdf =========== F R A N C E =========== COMPLETEL EUROPE: Shareholders Approve All Proposals at EGM ----------------------------------------------------------- The Company announces that at the Extraordinary General Meeting of its Shareholders held Thursday, the shareholders approved all of the proposals in support of Completel's previously announced recapitalization plan. These proposals include, among other things, a 670-to-one reverse split to Completel's ordinary shares intended to normalize the post-recapitalization trading in Completel's ordinary shares and the amendment of Completel's articles of association necessary to effect the recapitalization. Completel's recapitalization is still subject to the final sanction of the Dutch bankruptcy court of the Akkoord composition plan proposed by Completel, on which an initial confirmation hearing was held today, August 21, 2002. The Company believes that, upon the completion of its recapitalization, its cash balances, together with the anticipated cash flow from its restructured operations, will provide it with sufficient capital to fully fund its business to cash flow breakeven. CompleTel Europe NV's main operations specialize in the research and development of a fiber optic communications infrastructure in Western Europe. The group also provides telecommunications & internet related services to clients such as internet service providers as well as commercial & governmental end-users. CompleTel Europe has operations in France, Germany & United Kingdom. The company became listed on the Nasdaq National Market and Paris Stock Exchange on 30 March 2000. FRANCE TELECOM: Develops Software to Enable Mobile Video Phone -------------------------------------------------------------- France Telecom (http://www.francetelecom.com/)researchers have developed an unprecedented software application that transforms PDAs equipped with a miniature camera into full-fledged mobile videophone devices. This means users can set up a wireless video contact between two pocket PCs, such as a PDA (Personal Digital Assistant). This world premier makes it possible for the first time to easily establish direct connections between two people at remote locations without any wiring. Sound is now enhanced with video: the speaker is displayed on the screen and converses with the same audio quality as a conventional phone call. The call can be preceded by transmission of personal information, such as a business card, multimedia animation, logo, etc. This data is displayed on a Web page to identify the caller before the called party answers. Users can also show callers where they are by pointing the PDA camera around them. This breakthrough makes costly add-on equipment unnecessary. The new France Telecom application, known as "eConf", gives PDAs the processing power needed for this type of functionality despite the limited resources inherent to these handheld devices. "eConf" is compatible with all communications standards. The application currently runs with the WiFi (802.11b) wireless networking specification. It enables transparent service continuity with wireless networking standards. The software opens up a host of promising consumer applications, such as videophone contacts with family and friends (grandparents will love getting videophone calls from their grandchildren!). Most importantly, the new technology harbors major potential for use in business environments, enhancing the content that can be exchanged on wireless corporate LANs, for example. Video-enhanced on-the-move communications will save time and heighten efficiency thanks to an extremely user-friendly, practical interface. Among the almost infinite list of examples of possible applications are: - a real estate agent visiting an apartment able to instantly show the new listing to colleagues via their PC or a videoconference room. - doctors guiding emergency rescue personnel providing first aid at the scene of an accident. - a repair technician can ask for advice if a difficult problem is encountered on the road. - or journalists sending live images of events as they unfold, right from the palms of their hand! "Thanks to this handheld operating system we're already moving towards the inevitable merging of today's wireless handsets and PDAs," says Patrick Boissonade, project manager at France Telecom R&D. “The 100-percent software functioning of new- generation mobile devices marks a considerable advance towards offering multimedia services at low costs via an efficient and ubiquitous interface. This opens up tremendous opportunities for the future." Trials will begin in October at several France Telecom research facilities. Full-scale tests under real conditions will be carried out in 2003 (pending requisite regulatory approvals) in order to identify new types of mobile videophone services. France Telecom R&D, the France Telecom group's research and development center, drives innovation for all group units in France and worldwide. The center anticipates technological revolutions and paradigm shifts in usage. The center focuses on innovation that provides customers with best-in-class communications solutions, paving the way for technologies that will become ubiquitous in the future. The performance of France Telecom R&D makes it Europe's leading telecom research and development center. VIVENDI UNIVERSAL: Considers Magazine Division Sale --------------------------------------------------- Debt-laden media empire Vivendi Universal considers adding to its growing list of possible disposal its Express-Expansion magazine division, a report from Business Scotsman says. Citing reports, the Business Scotsman adds that the decision is not part of the company's plan to sell GBP6.3 billion worth of assets to cut its GBP12 billion debt burden. Express-Expansion owns 16 magazines, including L'Express, the French equivalent of Time, and L'Expansion, a monthly economic and financial affairs magazine. According to the Business Scotsman, the media empire has already put up for sale its Houghton Mifflin educational publishing business. The possible disposal of Express-Expansion magazine will upset the French political establishment. The paper adds that the responsibility now lies on newly appointed chief executive Jean-Rene Fourtou to balance the need for quick asset sales to meet pressing debt payment deadlines with the sensitivities of the French political and business hierarchy, which will not allow Vivendi's French operations to fall into foreign hands. But Mr. Fourtou has already diminished some concerns by its announcement to put up for sale its pay TV network Canal Plus. The company's French division, however, would be retained, the paper says. Among the potential buyers for Vivendi's L'Express are left-wing French daily Le Monde and the Dassault arms group, the largest shareholder in Le Figaro, the right-leaning daily newspaper, the Business Scotsman says. VIVENDI UNIVERSAL: Closes Internet Business Unit Scoot Benelux -------------------------------------------------------------- Troubled media empire Vivendi Universal will shut down its Internet business directory arm Scoot Benelux, a report from news agency Europe Media says. The news outfit adds that Vivendi has been aiming to sell Scoot Europe's whole unit. But branches in the Netherlands and Belgium failed to attract a buyer. The Internet business directory unit has 145 employees in Belgium and 60 in Netherlands of whom 30 will be retained. Scoot Benelux said trade unions and Vivendi have already reached an agreement regarding redundancy packages, the Europe Media reports. ============= G E R M A N Y ============= ADORI AG: Dr Jan B. Rittaler Steps Down From Management Board ------------------------------------------------------------- Die to holding differing views on the future positioning of the company, Dr Jan B. Rittaler is leaving the Management Board of ADORI AG, based in Regensburg, with immediate effect and by mutual agreement. In the face of forthcoming decisions on the new positioning of ADORI AG it proved impossible to arrive at a uniform view in the Supervisory and Management Board on vital questions affecting the future alignment of the company. The Supervisory Board would like to thank Dr Rittaler for his above-average hard work and the numerous suggestions he has given the company on major projects during the short time in which he has worked for it. The Supervisory Board Contact Information: Christine Meier Corporate Communications ADORI AG Straubinger Stra�e 81 D-93055 Regensburg Telephone: ++49-(0)941-7088-447 Facsimile: ++49-(0)941-7088-499 E-mail: ir@adori.de ADVANCED MEDIEN: Reports Results for First Six Months of 2002 ------------------------------------------------------------- In the first six months of fiscal year 2002, Advanced Medien AG recorded revenues of EUR 11.0 million. This compares to revenues of EUR 8.3 million for the same period last year. These revenues are essentially due to the consolidated revenues of the subsidiary U.F.O. Unified Film Organization L.L.C., which accounts for approximately 90% of all revenues (previous year: 40%). The remaining 10 % (previous year: 60%) were due to proceeds from motion pictures released in theaters last year and individual licenses for video and DVD. The decline in revenues in the second quarter of 2002 from EUR 7.6 million to EUR 5.1 million is primarily due to low revenues in the licensing segment. Earnings before interest, taxes, depreciation and amortization (EBITDA) according to IAS in the second quarter were EUR 3.8 million (previous year: EUR 1.4 million). This results in an EBITDA of EUR 8.3 million for the first six months of 2002 as compared to a negative EBITDA of minus EUR 0.3 million for the same period last year. Due to film amortization at U.F.O., the amortization of film assets increased from EUR 7.2 million to EUR 10.3 million. As a result, earnings before interest and taxes (EBIT) according to IAS for the first six months were negative at minus EUR 2.3 million (previous year: minus EUR 7.9 million). In the second quarter alone, the EBIT was minus EUR 1.3 million as compared to minus EUR 4.9 million for the same period last year. The net loss for the second quarter of 2002 amounted to EUR 2.1 million, compared to a net loss of EUR 5.3 million for the same period last year. As a result, the net loss in the first six months was reduced further to EUR 3.3 million. This compares to a net loss of EUR 8.4 million for the first six months of 2001. As of June 30, 2002, the undiluted loss per share thus was EUR 0.19 as compared to a loss per share of EUR 0.48 for the same period last year. The detailed interim report on the first six months of 2002 will be available for download at http://www.advanced-medien.defrom August 28, 2002. Key figures in KEuro IAS 30.06.2002 30.06.2001 Revenues 10,963 8,318 EBITDA 8,297 -314 EBIT -2,337 -7,869 Financial Result -1,004 -548 EBT -3,341 -8,452 Res.f.ordin.operations -3,341 -8,452 Loss for the period -3,343 -8,453 Loss per share in Euro 0.19 0.48 CINQUE: Fashion Group Dismisses Fidarte's Takeover Bid ------------------------------------------------------ Insolvent German fashion group Cinque, rejected a takeover bid from Swiss investor group Fidarte, Financial Times Deutschland reports. The paper says that Cinque dismissed the offer following Fidarte's failure to provide with suitable plans. The fashion group will now operate with different partners. Fidarte was due to take over the business at the beginning of August, with a fee of around EUR5.5 million agreed between the two. It is said the company failed to come up with a first installment of EUR2.9 million on Monday at the latest, the paper adds. On Wednesday, Fidarte dismissed Cinque's claims and instead said that its head Ivan Merlini had left the company. Cinque's latest turnover figure was EUR45 million, the paper says. PIXELNET AG: Reports Increase in Losses in Q2 --------------------------------------------- Following a difficult first quarter with a net loss for the year of EUR 7.8m, PixelNet AG, currently in the ongoing insolvency proceedings, increases net loss in the second quarter. The main figures are as follows: Item At 30 June At 30 June Change in % Remarks 2002 2001 EUR000 EUR000 Turnover 89,017 105,512 -15.6 In 2001 including turnover of PHOTO PORST 1 Jan - 18 Feb EBITD -2,459 539 -456.2 EBIT -19,207 -2,303 -734.0 EBT -21,624 -2,620 -725.3 NOPAT -50,058 -2,620 -18,106.1 (NOPAT= net operating profit after tax) Following the insolvency petitions by PixelNet subsidiaries PHOTO PORST AG and ORWO Media GmbH, these holdings had to be revalued. Extraordinary depreciation amounting to EUR 14.1m was carried out. In addition, the deferred taxes amounting to EUR 28.3m were reversed, as the planning assumptions on which they were based are now out of reach. The negative goodwill of EUR 20.6m was released effective to income. Discussions began this week with the nine respondents to the invitation for bids, which expired on 10 August. A second designated sponsor was found in Concord Effekten AG. Orders for analogue and digital developing and printing continue to be processed to the usual high standard. ============= I R E L A N D ============= ELAN COPRPORATION: Enters Into Licensing Deal With Watson Pharma ---------------------------------------------------------------- Elan Corporation, plc announces that it has entered into a licensing agreement with Watson Pharmaceuticals, Inc. for exclusive marketing rights to 30 mg and 60 mg dosage strengths of its extended-release nifedipine (nifedipine ER) tablets in the United States. Nifedipine ER is the generic version of Bayer AG's Adalat CC product and is indicated for the treatment of hypertension. Financial details of the transaction were not disclosed. "This agreement represents an important step in leveraging value from Elan's drug delivery products and implementing our asset divestiture program" commented Garo Armen, Ph.D., chairman of Elan. "Under the terms of this agreement, Elan will receive an up-front payment upon Watson's launch of nifedipine ER in addition to ongoing manufacturing payments from Watson." The agreement enables Elan to bring its nifedipine ER 30 mg and 60 mg products to the market through Watson, and satisfies Elan's settlement with the U.S. Federal Trade Commission (FTC) announced on June 27, 2002, reflected in an Agreement Containing Consent Order (Consent Agreement). Elan will continue to manufacture and supply Biovail Corporation with nifedipine ER 30 mg for distribution through its distributor Teva Pharmaceuticals. When Biovail is able to manufacture its own nifedipine ER 30 mg (or until May 31, 2003, whichever comes first), Elan will stop supplying Biovail with the drug. Thus, consumers of nifedipine ER will continue to benefit from competition under the new arrangement contained in the FTC Consent Agreement, as they had under the existing arrangement. Elan is focused on the discovery, development, manufacturing, selling and marketing of novel therapeutic products in neurology, pain management and autoimmune diseases. Elan shares trade on the New York, London and Dublin Stock Exchanges. CONTACT information: Investor Relations: U.S. Jack Howarth Telephone: 212/407-5740 or 800/252-3526 Europe Emer Reynolds Telephone: 353-1-709-4000 or 00800-28352600 ===================== N E T H E R L A N D S ===================== KPN NV: Will Purchase German KPNQwest Network --------------------------------------------- KPN has reached an agreement with the receivers of KPNQwest Germany regarding the purchase of the German part of KPNQwest Euro Rings, including connections to neighboring countries. The deal concerns a 3,500 kilometer fiberglass cable network. KPN will take on 55 of the 118 employees in Germany. No purchase amount has been disclosed, however. At the end of July, KPN took over the Dutch part of the KPNQwest Euro Rings and also the Network Operations Centre (NOC) in The Hague. KPN is still holding talks with the local receivers in Belgium and the United Kingdom on parts of the network in those countries. =========== P O L A N D =========== ELEKTRIM SA: Will Not Purchase Shares in ET ------------------------------------------- Speculations have emerged that the BRE Bank and Eastbridge consortium will not buy Elektrim's shares in Elektrim Telekomunikacja (ET), the Warsaw Business Journal reports. The consortium's exclusive negotiations rights over the shares expire in a few days on August 26. Some observers conjecture that Elektrim bondholders are willing to pay up to PLN1.2 billion for the shares. Elektrim might decide to try and sell its shares in another one of its companies, PAK, a group of three power stations, the daily says. But PAK's privatization contract that Elektrim signed states that the shares cannot be sold until 2005. Elektrim could seek to negotiate the issue with the Treasury Ministry that owns a 50% stake in PAK. However, once Elektrim sells its shares in ET and PAK the future of the concern could be called into question, the paper reports. =========== S W E D E N =========== LM ERICSSON: Signs License Agreement on Mobile Tech With Huwaei --------------------------------------------------------------- Ericsson, the world leader and pioneer in 2G, 2.5G and 3G mobile technology, concludes a worldwide patent license agreement with Huawei Technologies, the leading Chinese vendor for communications equipment and network solutions for telecom carriers in fixed, mobile and data communications networks. Under the terms of the worldwide, royalty-bearing agreement, Ericsson has granted Huawei Technologies a non-exclusive, non- transferable license under Ericsson's patent portfolio for the WCDMA/UMTS mobile telephony standard. This allows Huawei Technologies to develop, manufacture and sell infrastructure as well as subscriber equipment using the leading mobile technology from Ericsson. In return, Huawei Technologies provides running royalty payments, as well as a reciprocal license to Ericsson. The execution of yet another WCDMA patent license agreement confirms Ericsson's leadership with respect to its WCDMA patent portfolio in standards essential and implementation patents. Ericsson's intellectual property rights portfolio is exceptionally strong and is required by any company developing 3G products. Ericsson has the industry's strongest R&D commitment with well over 10,000 granted patents worldwide in the telecom field. "This agreement further demonstrates Ericsson's commitment to fully support, and co-operate with local Chinese vendors in order to accelerate the development of 3G Mobile telephony and facilitate the market growth in China. This will create new opportunities for both the local Chinese industry and Ericsson, and further leverages on Ericsson's technology leadership and patent portfolio. Ericsson is promoting 3G in China and is showing the way to the rest of the industry by granting a license under terms to encourage competitive accumulated royalty rate for WCDMA," says Torbj"rn Nilsson, Senior Vice President, Marketing and Strategic Business Development. Ericsson is shaping the future of Mobile and Broadband Internet communication through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication in the world. Established in 1988, Huawei Technologies (www.huawei.com) is a high-tech enterprise which specializes in research and development (R&D), production and marketing of communications equipment, providing customized network solutions for telecom carriers in optical, fixed, mobile and data communications networks. Huawei's customers include China Telecom, China Mobile, China Unicom, China Netcom as well as Thai AIS, South Korea Telecom, SingTel, Hutchison Global Crossing, PCCW, Telemar (Brazil), etc. LM ERICSSON: Signs Panama GSM Contract With Cable & Wireless ------------------------------------------------------------ Cable & Wireless selects Ericsson (http://www.ericsson.com)as the sole supplier of equipment and services for deployment of a GSM/GPRS 800 MHz network in Panama. Cable & Wireless will be the first operator in Panama to offer GSM services, and the first operator outside the United States to deploy GSM in the 800 MHz band. "We are proud to continue our position as sole supplier of wireless systems to Cable & Wireless in Panama, having deployed their TDMA network and now migrating their network to GSM/GPRS," said Bert Nordberg, Vice President and General Manager, Ericsson Systems. "This contract is an important milestone in our strong, long-term relationship with Cable & Wireless, one of the world's leading global telecommunications operators." With this contract Ericsson will provide GPRS, Mobile Internet Enabling Proxy (MIEP), an Intelligent Network (IN) with Mobile Virtual Private Network (MVPN) and Flexible Number Register (FNR), which enables the subscriber to use the old TDMA phone number in the new GSM network. "Ericsson's unparalleled global experience in deploying GSM/GPRS networks and services, as well as Ericsson Mobility World's broad network of application and content developers, will be a great benefit to us in delivering a compelling and localized offering for the Panamanian market," said Jose Miguel Garcia, President, Cable & Wireless Panama. Additionally, as a part of the strategic agreement with Cable & Wireless, Ericsson will supply a range of services to facilitate the launch of the network, including business consulting, initial network design and installation, engineering, testing and RF design and optimization services. Beyond delivering a turnkey network, Ericsson will provide consultative services to support Cable & Wireless in developing, deploying and marketing the most appropriate and attractive voice and data services for the Panamanian market. The first test calls on the network have already been successfully completed, and commercial launch is expected in the fourth quarter of 2002. 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. Cable & Wireless is one of the main global Telecommunications companies. During 130 years it has renewed itself to adopt the latest technological developments to satisfy its customer's needs. Cable & Wireless operates in more than 30 countries, through two well-financed divisions: Cable & Wireless Global and Cable & Wireless Regional. LM ERICSSON: Signs CDMA2000 1X Contract With BellSouth Panama ------------------------------------------------------------- Ericsson (http://www.ericsson.com)signs a turnkey, sole supplier contract with BellSouth's affiliate in Panama to supply an end- to-end CDMA2000 1X overlay of the operator's existing nationwide TDMA network in that country, including network equipment, services and Sony Ericsson handsets. "Ericsson and BellSouth have a long-standing history and we are very happy to have been selected to provide our leading CDMA2000 1X solution in Panama," said �ke Persson, president of Ericsson Mobile Systems CDMA. Ericsson's CDMA2000 solution will enable BellSouth Panama to reduce costs through decreased space requirements, deployment flexibility, simplified site acquisition and leasing, decreased construction costs and lower power consumption. Ericsson's CDMA2000 solution will also allow BellSouth Panama to reuse existing TDMA network components, ensuring a smooth migration to 3G. The compact design and high performance characteristics of Ericsson's CDMA2000 1X solution offers significant savings in both capital and operating expenses for BellSouth Panama. Deployment will begin immediately. Ericsson will deploy its industry-leading total CDMA2000 solution including: the radio base station (RBS) 1127; base station controller (BSC) 1120; AXE810 Mobile Switching Center (MSC); Packet Core Network (PCN); Home Location Register (HLR); TEMS(TM) CellSight performance management system; and the Sony Ericsson T206 CDMA2000 handset, as well as network rollout. 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. About Ericsson CDMA Systems (http://www.ericsson.se) Ericsson's total CDMA2000 solution, which includes infrastructure, applications, devices, services and proven market expertise, is optimized for delivering advanced data solutions. Developed by the industry's premier CDMA experts, Ericsson's true 3G CDMA2000 solution offers operators unique performance and cost-saving advantages by leveraging the full strength of Ericsson's expertise in wireless, IP/datacom and Mobile Internet technologies. Ericsson's CDMA2000 solution, based on innovative product design, global platforms and open standards, provides the flexibility operators need to succeed in an always-evolving wireless market. LM ERICSSON: Sells Holdings in Ericsson Panda Mobile Terminals Co ----------------------------------------------------------------- Ericsson (http://www.ericsson.com)and Microcell S.A. completes the transaction whereby Microcell takes over Ericsson's majority holdings in the former joint venture Ericsson Panda Mobile Terminals Co. Ltd. in Nanjing, China. The restructuring will enable Ericsson to streamline its production facilities and enable a more efficient utilization of resources through only one facility focusing on the mobile phone manufacturing in Beijing, China. 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. ===================== S W I T Z E R L A N D ===================== SWISSAIR GROUP: Restructuring Irregularities Caused Delay --------------------------------------------------------- The administrator of the Swissair Group, Karl Wuthrich of Wenger Plattner, and his team, makes considerable progress with drawing up an inventory of the Group's assets. However, irregularities discovered in connection with the way in which the 1997 restructuring of the Swissair Group was conducted have caused an unforeseen delay. At that time, the company name of the "old" Swissair was changed to SAirGroup and a "new" Swissair Swiss Air Transport Company Ltd was founded. The assets required for flight operations were transferred from the "old" Swissair to the "new" Swissair as a non-cash capital contribution. There have been a variety of indications recently that the restructuring was not completed properly. There is also some confusion as to which assets are the legal property of the "new" Swissair, and which belong to the SAirGroup (the "old" Swissair). Investigations are underway to clarify the exact situation. Ballot on debt restructuring agreements - full quora not yet achieved Although the ballots on the debt restructuring agreements for SAirGroup, SAirLines and Flightlease AG are still ongoing, a conclusion is imminent. The debt restructuring agreements will be deemed to have been accepted by the creditors if each is approved by more than half of the creditors holding at least two thirds of the voting claims, or a quarter of creditors holding at least three quarters of voting claims. In the case of the SAirGroup, around 80% of creditors with approx. 50% of the claims that are recognized by the company have so far voted in favor. To date there has been no response from the major creditors, in particular. Over the coming weeks, the administrator will seek meetings with these major SAirGroup creditors with the aim of encouraging them to accept the debt restructuring agreement. Where SAirLines and Flightlease AG are concerned, quora (of both creditor numbers and the sum of claims) have now been achieved in terms of the claims recognised by the companies but not, however, if the disputed claims are also taken into account. As a consequence, the administrator will have to assess the voting entitlement of each individual disputed claim in his report to the debt restructuring judge, so that the latter can decide whether or not the statutory quora have been reached. The planned discussions with the major creditors of the SAirGroup and the review of disputed claims in the case of SAirLines and Flightlease AG will delay the administrator's report to the debt restructuring judge. The administrator's reports cannot be expected before mid-September. Contact Information: Administrator's website: www.sachwalter-swissair.ch Filippo Th. Beck Wenger Plattner Telephone: +41 (0)1 914 27 70 Facsimile: +41 (0)1 914 27 88 =========================== U N I T E D K I N G D O M =========================== AMELCA PLC: Receivers Sell Milk-processing Business --------------------------------------------------- amelca plc (In Administrative Receivership) The Joint Administrative Receivers, Bob Maxwell and Andrew Peters, offer for sale the bussines and assets of amelca plc, the Derbyshire-based milk processor and cheese producer. Major features of the business include: - Purpose-built milk and cheese processing facility (opened in April 2002) - Total productioncapacity in excessof 150 million liters per annum - Freehold, nine-acre site, with potentioal for modular expansion of production facilities up to 300 million liters per annum - Full product traceabilitysystem and hogh levels of internal environment control - Excellent communication links with main arterial intrastructure - Existing customer base - Dedicated and skilled workforce Contact Information: Deloitte & Touche 1 Woodborough Road Nottingham NG13FG Chris Farrington Telephone: 0776 9935692 E-mail: cfarrington@deloitte.co.uk Carlton Siddle Telephone: 0781 801 2815 E-mail: csiddle@deloitte.co.uk BRITISH AIRWAYS: Stake Drops 17% as It Nixes Qantas Rights Issue ---------------------------------------------------------------- Cash strapped British Airways stake in Quantas plunges to about 17% following its refusal to join the Australian carrier's GBP286 million rights issue, a report from the Guardian says. Qantas had recently confirmed it is generating capital to fund new aircraft and facilities, and purchase a stake in Air New Zealand, the daily says. The Guardian adds British Airways is in continuous restructuring after posting its worst losses in 20 years in 2001. The group disclosed that its satisfaction with its current shareholding and level of investment in Qantas. In 1995, BA bought a 25% stake in Qantas when Australia's biggest airline was privatized, making it its largest shareholder. Previously, the stake had cost GBP308 million. Now, it is worth GBP560 million, the daily says. When BA shunned a USD450 million equity placement by Qantas, the company saw its stake cut to 21.44%. Now, BA confirmed that it has no plans of purchasing Qantas shares. It still remains Qantas's largest shareholder, the paper adds. BA reported a 62% jump in first-quarter profits to GBP65m this month. CELLTALK GROUP: Court Lifts Administration Order ------------------------------------------------ Following the restructuring arrangement of its subsidiary, Celltalk plc, Celltalk Group plc announces that Celltalk plc has now complied with all necessary documentation and the Court lifts the Administration Order allowing Celltalk plc to trade as normal subject to the agreed payments to the Administrator over the next 24 months. According to the company's statement submitted to the Regulatory News Service of the London Stock Exchange, Celltalk plc needed to secure a new credit card processing facility, which as a prerequisite required a deposit of GBP50,000, as part of the agreement. This has been provided by the executive directors of the Company as a short-term loan, on a normal commercial basis, secured on the assets of Celltalk plc, the statement said. The notice says that Celltalk plc continues to sell mobile phone handsets from its offices in Manchester and although difficult trading conditions for the sector remain, sales of handsets are currently in line with the revised budgets. The audited financial statements for the fifteen-month period ended March 31, 2002 are expected to be published in September. CORUS GROUP: Building Systems Acquires Swedish Profiler ------------------------------------------------------- Corus Building Systems (CBS), part of Corus, the international metal group, announces the purchase of Erik Olsson and soner (EO) of south Sweden. This acquisition will provide CBS with a strong base both to develop its Swedish market for building products and to satisfy a growing pan-Scandinavian customer base. EO, owned by the Olsson family, carries out profiling of steel sheets for roofing and supplies pre-engineered industrial and agricultural buildings. It employs 33 people and has a turnover of EUR15m. Two existing managers of EO will join the CBS management team. Jim Mathieson, Managing Director of CBS said: "I am delighted that we have acquired such a strong company. This complements our existing operations in Norway and Denmark and will give us a powerful advantage in meeting our customers' needs throughout Scandinavia for Corus building products. It also extends our penetration of the Scandinavian builders merchant sector." Corus Building Systems manufactures metal building products for covering walls and roofs, as well as a number of other specialist building products. Many of these products are well known brands in the construction industry, such as Catnic and Kalzip. It has the widest geographical coverage of any such building products group in Europe, and its businesses have market-leading positions. CUTTY CATERING: Issues Notice of Meeting of Unsecured Creditors --------------------------------------------------------------- Cutty Catering Specialists Limited (In Administrative Receivership) Notice is hereby given pursuant to Section 48(2) of the Insolvency Act1986, that a meeting of the unsecured creditors of the above-named company will be held at The Barbican Center, Silk Street, London EC2Y 8DS on September 3, 2002 at 3:00 pm for the purpose of having laid before it a copy of the report prepared by the Joint Administrative Receivers under section 48 of the said Act. The meeting may, if it thinks fit, establish a creditors' committee to exercise the functions conferred on it, by, or under the Act. Creditors are only entitled to vote if: (a) They have delivered to us at the offices of RSM Robson Rhodes, 186 City Road, London EC1V 2NU, no later than 12:00 hours on the business day before the meeting, written details of the debts they claim to be due, and the claim has been duly admitted under the provisions of the Insolvency Rules 1986; and (b) There had been lodged with us any proxy which the creditor intends to use on his behalf. Date: August 1, 2002 Simon Peter Bower Michael John Hore and Geoffrey Paul Rowley Joint Administrative Receivers ENVIRONMENTAL POLYMERS: Company Profile --------------------------------------- Name: Environmental Polymers Group PLC 4 Cranford Court Hardwick Grange, Woolston Warrington WA1 4RX, United Kingdom Telephone: (01925) 859 300 Facsimile: (01925) 859 311 E-mail : info@epgplc.com Web site: http://www.epgplc.com/ SIC: Chemicals Manufacturing Employees: 24 Pre-tax Loss: GBP2.6 million/US$3.9 million (2001) Total Assets: GBP9.8 million/US$14.9 million (2001) Total Liabilities: GBP1.5 million/US$2.3 million (2001) Type of Business: The group manufactures biodegradable and non-toxic plastic in the form of an extrudable pellet, which dissolves in water in a controlled manner after use. Trigger Event: Environmental Polymers Group PLC has been incurring mounting losses for three consecutive years. In 1999, the company posted GBP1.10 million in pre-tax losses. The group revealed GBP1.71 million in pre-tax results in 2000 and reported another GBP2.56 million deficit in 2001. Despite implementing costs-cutting measures this year, the delay in achieving sales caused a funding crisis to a point where the company is unable continue operating its business unless additional funding can be secured or a strategic partnership concluded. As a result, Environmental Polymers Group PLC's directors decided that its principal subsidiary Environmental Polymers Limited petition the court to place EPL in administration. The court ordered the appointment of administrators to EPL on August 9. Chairman: R H C Nichols Operations Director: G Whitchurch Total Shares in Issue: 74.82 million 5p ordinary shares Major Shareholders: Chase Nominees Ltd 8.78% Clydesdale Bank Noms Ltd 5.74% Caledonian General Inv Ltd 4.79% Sharelink Nominees Ltd 3.35% Bankers: Barclays Bank PLC Financial Advisers: Altium Capital Ltd Stockbrokers: W H Ireland Ltd Auditors: Baker Tilly Law Firms: Irwin Mitchell Financial PR Advisers: Biddicks RAILTRACK GROUP: Holders Approve Network Rail's Proposal -------------------------------------------------------- Network Rail Limited announces that in relation to the progress on the acquisition of Railtrack PLC (in railway administration), Holders of the remaining classes of Railtrack Bonds voted in favor of the resolution setting out Network Rail's proposals for early redemption and variation of the duration of standstill arrangements. According to Network rail, the results agreed upon in the meeting were as follows: - The GBP350,000,000 5.875% bonds due 2009 reached quorum with 23,764 votes cast and the percentage of total number of votes cast which were in favor was 100%. - The GBP100,679,000 9.625% bonds due 2016 reached quorum with 7,311 votes cast and the percentage of total number of votes cast which were in favor was 100%. Ian McAllister heads Network Rail as chairman, commenting on the holders' approval, he says: 'We have outlined our detailed plans to deliver safe, reliable and efficient rail infrastructure, and are eager to begin implementing them. ' Network rail reports that Railtrack Bonds and Medium Term Notes comprise the following: GBP135,531,000 9.125% Bonds due 2006 GBP350,000,000 5.875% Bonds due 2009 GBP100,679,000 9.625% Bonds due 2016 GBP300,000,000 7.375% Bonds due 2022 GBP250,000,000 5.875% Bonds due 2028 GBP400,000,000 3.50% Exchangeable Bonds due 2009 EUR 11,500,000 Index-Linked Notes due 2009 issued under the Railtrack Euro Medium Term Note Program PPL THERAPEUTICS: Cloned Pigs Yield Transplantable Organs ---------------------------------------------------------- Biopharmaceutical group PPL Therapeutics Plc (http://www.ppl- therapeutics.com), in the application of transgenic technologies, announces that the company was able to produce the World's first double gene 'knock-out' piglets through PPL's proprietary gene targeting technology and nuclear transfer (cloning), a notice posted on the Regulatory News Service of the London Stock Exhange says. Earlier this year, the statement further says that PPL announced the birth of the pigs in which a single copy of the alpha 1,3 galactosyl transferase (GT) gene had been knocked out - the single 'knock-out' pigs. This development is an extension of that work. Four healthy piglets were born at PPL Therapeutics Inc, USA on July 25, 2002 and continue to do well. A fifth piglet died shortly after birth of unknown causes. "The gene that has been double 'knocked-out' in these pigs is responsible for making an enzyme that adds a sugar to the surface of pig cells which is recognized by the human immune system as foreign," the notice adds. "This pig sugar (alpha 1,3 galactose) triggers an immune response in the human patient, leading to hyperacute rejection of the transplanted organ or cell within minutes," the announcement says. Therefore, the ability to 'knock-out' both copies of the gene becomes a vital step to produce pigs with organs and cells that can be used in humans, the notice says. "Because both copies of the gene have been inactivated, tissues from these pigs have been shown to be completely devoid of the pig sugar that cause the hyperacute rejection to take place," the announcement explains. As announced earlier in the year, PPL is in the process of 'spinning out' its regenerative medicine program (xenografts and stem cells), of which the knock-out pig program is part, in order to focus its resources on its lead protein products, recAAT for hereditary emphysema, Fibrin 1, and BSSL. It is also the Board's belief that the resources required to bring a product to market in the area of regenerative medicine will be significant and beyond the current resources of PPL. The announcement Thursday, however, recognizes another key milestone for PPL in the area of xenotransplantation and demonstrates the company's leading-edge position in this rapidly developing field. The company intends to have completed the spin-out by the end of the year. As part of PPL's ongoing collaboration with the University of Pittsburgh's Thomas E. Starzl Transplant Institute, organs and cells from these double knock-out pigs will be used in pivotal transplantation studies aimed at testing for elimination of hyperacute rejection and long term survival of these xenografts. The 'knock-out' work was carried out by PPL Therapeutics Inc, PPL's US subsidiary located in Blacksburg, Virginia, and was partly supported by an ATP Grant from the US Government's National Institute of Standards and Technology (NIST). In addition to these double knock-out pigs, the company has generated more than 60 male and female single gene GT knock-out pigs since the first litter was born in December 2001, demonstrating that this technology is now a reliable and reproducible tool for making very precise genetic changes in these animals. David Ayares, COO and VP of Research at PPL Therapeutics Inc said: 'This advance brings us closer to the promise of a potential solution to the world-wide shortage of organs and cells for transplantation.' Geoff Cook, Chief Executive Officer said: 'This is an important step for PPL demonstrating our leading position in this exciting area. The news will support our efforts in spinning out PPL's regenerative medicine business, that will then enable us to focus on our core protein work.' PPL Therapeutics is a biopharmaceutical company which is one of the world's leaders in the application of transgenic animal technologies to the development and production of human proteins for therapeutic and nutritional applications. PPL's three lead products are Alpha-1-Antitrypsin (AAT), fibrinogen and bile salt stimulated lipase (BSSL). PPL is the only company to offer a wide range of animals for transgenic protein production, including sheep, cows, rabbits and pigs. Xenotransplantation is the transfer of cells, tissues, or organs from one species to another. The fundamental problem with transferring organs between species is rejection by the recipient's immune system. PPL's comprehensive xenograft program relates to both its technology and its Intellectual Property portfolio. In addition to overcoming early hyperacute rejection, the company has also shown proof-of-concept, and has filed patent applications relating to solutions for all aspects of xenograft rejection including delayed xenograft refection, coagulopathy, and chronic T cell mediated rejection. Thus the double 'GT knock-out' pig will serve as the platform for adding up to three more genes, and include a T cell tolerance regime, in order to address all stages of rejection. In addition to its xenograft program, PPL has an advanced stem cell program which holds the promise of providing a human cell- based solution to diabetes, neurological and cardiovascular disease. The company received a second ATP grant from NIST in January 2001 for $2 million to fund its proprietary research on the generation of 'ethical' stem cells. This method involves the de-differentiation of somatic cells to become ES-like cells, and has the advantage that no embryos are created or destroyed at any point in the process. This technology has the potential to provide a solution to the shortage of stem cell lines for therapeutic applications. The first application of this technology could be the testing of insulin-producing islet cells for the treatment of Type I Diabetes from the 'double knock-out' pigs, first in animals, and thereafter in humans. Testing of pig organs (heart and kidney) could follow after the first cell experiments. Human clinical trials could start in two to four years. The US division of PPL also has a 3-year, $3.1 million contract with the US Dept. of Defence for biological warfare countermeasures. As part of this DARPA-funded program, the company is utilising its proprietary cloning and gene targeting technology to inactivate all the cow antibody-producing genes, and replacing them with human equivalents, in order to make large volumes of fully-human polyclonal antibodies, in cattle, as a means of immunising soldiers and civilians against biological warfare pathogens such as anthrax. Contact Information: Geoff Cook Chief Executive Officer PPL Therapeutics plc Telephone: 0131 440 4777 Dr. David Ayares COO and VP of Research PPL Therapeutics Inc Telephone: 001 540 961-5559 Alistair Mackinnon-Musson Philip Dennis Telephone: 020 7796 4133 Email: ppl@hspr.co.uk TELEWEST: Banks Give Go-Ahead for Telewest's Debt Restructuring --------------------------------------------------------------- A consortium of banks gives an all-clear go signal by agreeing to waive its GBP1.8 billion in loans to debt-laden Telewest to overhaul its balance sheet, pushing the company a step closer survival, the Financial Times reports. Telewest required the waivers from a syndicate of 26 banks to start the journey toward a debt-for-equity swap as it unloads itself from its GBP5.3 debt burden, the paper says. The U.K.'s second largest cable operator will now hold talks with bondholders, owed around GBP3.6 billion, for an agreement to swap their debts for shares, the daily adds. According to the daily, the latest development signals more involvement from US tycoon John Malone who is said to be interested in increasing his foothold in UK. Mr. Malone owns Liberty Media, which owns 9% of Telewest's bonds and a further 25% of its equity stake. Telewest's newly appointed managing director Charles Burdick who replaced ousted chief executive Adam Singer, noted that Liberty would "always have a last look" on any restructuring decisions, the daily reports. According to the Financial Times, speculations arose from industry observers regarding the possible merger of Telewest and fellow UK cable operator NTL after both companies emerges from restructuring. Yet even though both Mr. Burdick and Mr. Barclay Knapp of NTL have supported this view, some analysts believe that both companies may still have to face several significant obstacles before a merger is possible, the paper adds. Both Telewest and NTL are suffering from a subscriber drain and have been forced to drastically lower their capital expenditure to cut costs. Talks between the two parties regarding a possible merger failed to proceed. Also, if a merger is to be agreed, it requires a nod of approval from Mr. Malone, the paper says. Telewest had requested shareholders last week to approve the sale of its 17% stake in Scottish Media Group valued at GBP50 million, in order to further reduce cost base. But the company is not facing an immediate liquidity crisis. It has a cash lifeline of GBP341 million that would help it last for a year, the Financial Times says. Schroder Salomon Smith Barney currently advises the company. TELEWEST COMMUNICATIONS: Appoints Luiz as New Finance Director -------------------------------------------------------------- Debt-laden U.K. cable TV group, Telewest Communications Plc names chief operating officer Mr. Mark Luiz as the company's finance director, a report from news outfit AFX News says. Mr. Luiz will assume the post of Mr. Charles Burdick who now acts as managing director of Telewest's after its former chief executive Mr. Adam Singer stepped down last July, the news outfit says. AFX adds that Mr. Luiz's appointment comes amid efforts by the company to restructure its GBP5.3 billion debt through a debt- for-equity swap and reduce its cost base. As Telewest's chief operating officer, Mr. Luiz has led the company's cost-cutting drive. He has been a board member since November 2000, AFX reports. TRITON WELDING: Receivers Order Sale of Engineering Manufacturer ----------------------------------------------------------------- The Joint Administrators Simon Paterson and David Elliott orders the sale of the following business: Triton Welding Limited - Specialists Bridge & General Fabrication - Welding & Engineering Manufacturer The principal assets of the business include: - Two freehold properties and yards in Radstock, Somerset totaling 1,100 square meters - Fully equipped fabricaton workshop and shot blast and spray shop - Skilled workforce - Turnover year end March 2002 GBP2 million Contact Information: Edward Symmons (http://www.edwardsymmons.com) Greg Tytherleigh Telephone: 020 7955 8454 ************ S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam, Larri-Nil Veloso, Maria Lourdes Reyes and Jean Claire Dy, Editors. Copyright 2002. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *