/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/020904.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 Wednesday, September 4, 2002, Vol. 3, No. 175 Headlines * F R A N C E * FRANCE TELECOM: Globecast Launches in Europe, Africa and M.E. VIVENDI ENVIRONMENT: Moody's Confirms VE's Baa1/Prime-2 Ratings * G E R M A N Y * BABCOCK BORSIG: Subsidiaries to Undergo Insolvency Proceedings CALLAHAN NRW: Ish Unit May Announce Further Job Cuts COMDIRECT BANK: Targets Profit of EUR50 MM in 2004 MET@BOX AG: Multimedia Group Files for Insolvency Again MOBILCOM AG: Schmid Sues France Telecom Over Put Option TELESENS KSCL: Opened Insolvency Proceedings on September 1 * H U N G A R Y * MATAV RT: Appoints New Chief Officer for Residential Business * L U X E M B O U R G * GEMPLUS: Appoints Alex Mandl as New Chief * N E T H E R L A N D S * VERSATEL TELECOM: Administrator Submits Creditors List to Court VERSATEL TELECOM: Moves Closer Towards Debt Swap * P O L A N D * BANCA POPOLARE: Fitch Downgrades Ban's Long-Term Debt Rating BIG BANK: Subsidiary Concludes Agreement on Reporting ELEKTRIM SA: Pulls Out of Life-Saving Restructuring Deal * S P A I N * JAZZTEL P.L.C.: Resolves Market Maker Contract With Merrill Lynch * S W E D E N * LM ERICSSON: Pioneers on Messaging Services at Wireless Village SONG NETWORKS: Delists From Nasdaq; Subsidiary Default on Debt * U N I T E D K I N G D O M * BRITANNIC GROUP: Interim Results Six Months Ending June 30, 2002 BRITANNIC GROUP: Appoints New Group Managing Director CORDIANT COMMUNICATIONS: May Consider Disposal of Some Units INVENSYS PLC: Appoints Senior VP for Project Management KINGFISHER PLC: Wins DIY Day as Castorama Directors Depart PSION PLC: Releases Interim Results Ending June 30, 2002 SCIPHER PLC: Wins Major Project for National Identity Systems VERNALIS GROUP: Announces Frovatriptan Drug Is Highly Effective WIGGINS GROUP: Issues Statement on Payment of Mezzanine Debt =========== F R A N C E =========== FRANCE TELECOM: Globecast Launches in Europe, Africa and M.E. ------------------------------------------------------------- BEUR TV has chosen GlobeCast for Direct-to-Home distribution for its launch across Europe, North Africa and the Middle East, France Telecom said in a statement. GlobeCast's digital distribution platform on HOT BIRD at 13ų E provides instant access to the largest satellite broadcast neighbourhood in the world. World satellite transmission leader GlobeCast today announced that it will begin delivering the first Maghreb television network BEUR TV, The Mediterranean Channel, to Maghreb populations across Europe, North Africa and the Middle East. GlobeCast - a France Telecom(http://www.francetelecom.com/) subsidiary - is the world's largest global provider of satellite transmission and production services for professional broadcast, enterprise and Internet content delivery. The private, advertiser-supported network BEUR TV is to be launched in October 2002 by Nacer Kettane, the founder of the #1 Maghreb radio network in France, BEUR FM. BEUR FM was created in 1992. BEUR TV, The Mediterranean Channel, which was approved by the French broadcast regulatory authority (CSA) in January 2001, will specifically target the 6 million people living in France who are of Maghreb origin and the 68 million people living in the 3 Maghreb countries Algeria, Morocco and Tunisia. The wide satellite coverage will also allow BEUR TV to reach potential audiences elsewhere in Europe and the Middle East. The programs will be mainly French language, with some Arabic language programs during certain day parts. Programs will include news bulletins, games, debates, service information as well as cultural, educational and music programs. To distribute French produced BEUR TV, GlobeCast is providing 24/7 end-to-end channel distribution via its HOT BIRD bouquet at 13ų East, enabling the network to reach a maximum of over 95 million households across the whole of Europe, North Africa and the Middle East. GlobeCast offers BEUR TV uplink from our Continental Gateway in Paris and satellite capacity on HOT BIRD. This Direct-to-Home Ku-band platform provides optimum reception conditions for consumers through the use of small (from 60-180cm) dishes. BEUR TV's sister radio network, BEUR FM has an extremely strong image throughout France and is listened to by more than 8 million in the Maghreb region and the two organizations will work together on promotional events such as concerts, cultural seminars etc. GlobeCast (http://www.globecast.com)is the world's largest provider of end-to-end satellite transmission and production services for all media, encompassing broadcast, enterprise television and Internet content delivery. Services include TV channel distribution; program origination; Internet backbone, streaming, file transfers and content multicasting; studio production and post-production; business television; Direct-to- Home; language conversion; satellite newsgathering; sports programming backhaul; special events mobile production, and audio distribution. The company operates 15 teleports and 18 sales and technical support centres in the world's leading media markets throughout Europe, America, Asia, Australia, the Middle East and Africa, offering complete domestic and global satellite delivery. VIVENDI ENVIRONMENT: Moody's Confirms VE's Baa1/Prime-2 Ratings --------------------------------------------------------------- Moody's Investors Service recently confirmed Vivendi Environnement's Baa1/Prime-2 debt ratings with a negative outlook, a report from the international rating agency says. The confirmed ratings came after the legal closure of the amendment to the indenture of Vivendi Environnement's 2005 convertible bond approved by bondholders on 20 August 2002 removing a cross default clause to Vivendi Universal S.A. The rating action ends Moody's rating review conducted from May 2002, the rating agency adds. Moody's notes that "the rating confirmation reflects VE's successful completion of the removal of any material legal linkages to its main shareholder Vivendi Universal that could lead to any cross default." Moreover, the rating agency says it "understands that any other issues which might have stopped VE being viewed on a purely standalone basis are being addressed. Moody's does not regard these as material and expects that they will be successfully resolved shortly." As emphasized in the rating agency's press release last August 20, 2002, "the negative outlook on the Baa1 long-term rating reflects the uncertainty that continues to surround Vivendi Universal's ongoing strategic review and the implications this may have on VE. Once Vivendi Universal clarifies its strategy and if this has no implication on VE's credit quality, then Moody's would expect to stabilise the long-term rating of VE at Baa1." Vivendi Environnement is headquartered in Paris, France. It is the holding company of one of the world's largest integrated environmental and outsourcing services groups, with turnover of about EUR 29 billion in 2001. ============= G E R M A N Y ============= BABCOCK BORSIG: Subsidiaries to Undergo Insolvency Proceedings -------------------------------------------------------------- Twenty-five companies within the engineering group Babcock Borsig recently started insolvency proceedings, the Financial Times Deutscheland reports. Among the 25 companies, 19 will continue operation under their own management while going through insolvency proceedings, the paper adds. The court rejected only one company's application because of lack of assets. Standard procedures are to be introduced for six companies for which insolvency procedures under own management have been refused. Meanwhile, parent company, Babcock Borsig is set to start insolvency proceedings on Sunday. The group supports a full insolvency declaration that could affect subsidiaries belonging to its core business area. The group will begin announcing redundancies soon. Talks between management and employee representatives regarding a severance plan for those affected are already underway. Creditors have until November 4 to submit claims, the paper says. CALLAHAN NRW: Ish Unit May Announce Further Job Cuts ---------------------------------------------------- German cable TV company, Callahan Nordrhein-Westfalen GmbH, is reported to be planning to cut about 1,000 jobs out of its 1,700 employees in its subsidiary Ish, a report from the Die Welt and Financial Times says. Ish, however, has rejected the report, saying that a new business plan must be completed before it can make a decision. Earlier this year, the company announced 570 job cuts. It is now considering the closure of almost half of its sites, the papers add. The company also aspires to return to profit through cost-cutting measures. Burdened by heavy debts, Callahan NRW filed for insolvency in July this year. It had earlier said none of its subsidiaries would be affected by the insolvency. Previously in July, the Troubled Company Reported said analysts expected Liberty Media to use the insolvency of Callahan Nordrhein-Westfalen GmbH to cheaply acquire main cable-TV unit Ish. Liberty Media Corp. has already expressed interest in Ish GmbH & Co KG, leading analysts to believe that the insolvency filing increases the potential for a takeover, the TCR reported. Callahan is jointly owned by U.S. investor Callahan Associates International LLC, which holds a 55% stake, and Germany' Deutsche Telekom AG, which holds the remaining 45%. COMDIRECT BANK: Targets Profit of EUR50 MM in 2004 -------------------------------------------------- The Supervisory Board of Comdirect Bank AG recently approved an extensive program designed to boost performance. The program focuses on structural cost reductions in Comdirect's core market Germany. The measures will take effect immediately and are intended to achieve a positive result from ordinary activities in Germany this year. The measures will require nonrecurring restructuring expenses of EUR32 million, which will burden the 2002 annual result 2002. The program will ultimately yield significant savings, however, amounting to 44 million euros per year in 2004. The profit target for 2004 is EUR50 million. Contact Information: Reiner Sedat Investor Relations Comdirect Bank AG Telephone: 0049 4106 704 1960 Fax: 0049 4106 704 1969 MET@BOX AG: Multimedia Group Files for Insolvency Again ------------------------------------------------------- German multimedia products company Met@box AG has filed for insolvency for the second time, a report from Die Welt and Financial Times says. The company previously filed for insolvency in November 2001, but pulled out its application because it was able to draw up a recovery plan. According to the company, it had generated funds from financial markets and a sale of assets. In November the Troubled Company Reporter reported that the economics ministry of the German state of Lower Saxony had promised Metabox AG a state guarantee and financial help. The company had to secure an additional loan agreement with its creditors in order to avoid insolvency proceedings. It needed DEM17 million immediately. Unfortunately, the company's measures towards recovery have failed. This left them no choice but to file for insolvency. Met@box AG 's main area of business is the manufacture of IT products, such as Internet set-top boxes for the cable and telecommunications industry. MOBILCOM AG: Schmid Sues France Telecom Over Put Option ------------------------------------------------------- The battle between Gerhard Schmid and France Telecom, two main shareholders in MobilCom, intensified when Mr. Schmid revealed he was suing the French telecom company, a report from the Financial Times says. Mr. Schmid who owns more than 50% of MobilCom filed a suit against France Telecom with a Frankfurt court this week in an attempt to compel the French telecom company to honor the terms of a put option her exercised in March, the daily adds. This development is the latest surrounding the dispute between both shareholders over the terms of France Telecom's possible takeover of MobilCom. France Telecom has indicated it would make an offer for MobilCom once the German company would emerge out of restructuring its debt, the paper says. Mr. Schmid has claimed France Telecom dragged its feet and raised the specter of MobilCom's insolvency in a move to lower its share price. Under German takeover law, a public offer must reflect the target company's average share price over the previous 90 trading days, the daily says. Sources say Mr. Schmid might settle for about EUR14 per share. Additionally, France Telecom, which has to avoid adding MobilCom's debt to its own pile of liabilities, announced that it would postpone the release of its results so it could decide whether to bid for the German operator or let it go bankrupt, the paper says. Previously, France Telecom signed a memorandum of understanding with MobilCom's banks that would remove EUR4.7 billion of the operator's debt from its balance sheet, but the company has made little progress in talks with equipment providers Nokia and Ericsson over vendor loans. Without an offer from France Telecom, MobilCom will have to refinance its bank debt by the end of September, which would tip it into insolvency, leaving the French group vulnerable to lawsuits from MobilCom shareholders, the paper adds. TELESENS KSCL: Opened Insolvency Proceedings on September 1 ----------------------------------------------------------- By virtue of the district court in Cologne, Telesens KSCL AG's insolvency proceedings took effect September 1, 2002. The company's main activities include the developing and distribution of coding, bill pre-processing, bill post-processing and other software systems for the telecommunications industry. When the company became insolvent in June, the group's executive committee requested a petition for insolvency on June 18, 2002 at the district court in Cologne. The court appointed attorney Hans Hans-Gerd H. Jauch as the provisional insolvency manager. The business operations of Telesens KSCL AG were terminated before the opening of the insolvency procedure. Claims of the insolvency creditors will be announced shortly according to the 174 insolvency order (InsO). Creditors are requested to communicate with the insolvency manager immediately. Contact Information: Rechtsanwalt Hans-Gerd H. Jauch als Insolvenzverwalter der Telesens KSCL AG Sachsenring 81 50677 Cologne Tel.: +49 221 33660-36 Fax: +49 221 33660-85 E-Mail: insosekr@goerg.de ============= H U N G A R Y ============= MATAV RT: Appoints New Chief Officer for Residential Business ------------------------------------------------------------- Matav RT appointed Christopher Mattheisen as the new chief officer for its residential service line business, effective September 1, a report from Budapest Business Journal says. Forty-one year old Mr. Mattheisen used to work in the U.K as the business, trading and marketing director at BT Cellnet. Prior to that, he directed the commercial and marketing activities of MediaOne's mobile communications subsidiaries in London, the journal reports. He also worked as Westel Rt's marketing and sales director and was also the marketing officer of U.S. WEST International, mainly involved in the launch of Hungarian, Polish and Czech mobile carriers, the journal says. Mr. Mattheisen holds degrees in economics and finance from Indiana University Bloomington and from Columbia University in New York City. =================== L U X E M B O U R G =================== GEMPLUS: Appoints Alex Mandl as New Chief ----------------------------------------- Gemplus International SA (http://www.gemplus.com)announced the appointment of Alex Mandl as Chief Executive Officer of Gemplus. Alex will take up this appointment on Monday, September 9. From 1996 through to 2001 Alex was Chairman and CEO of Teligent Inc, which built local digital microwave networks to serve businesses across the US. Between 1991 and 1996, Alex worked at AT&T, becoming President and COO, with overall responsibility for directing the company's long distance, wireless and local communications services, in addition to its Direct TV, credit card and Internet business. Prior to joining AT&T Alex spent four years as President and CEO of Sea-Land Services, Inc., the world's largest provider of ocean transport and distribution services. Alex currently serves as a director on a number of corporate and not-for-profit boards, including those of Dell Computers and Pfizer. Dominique Vignon, Chairman of Gemplus said: "We are delighted to welcome Alex Mandl as our new Chief Executive Officer. His skills and experience are outstanding and position him to lead Gemplus forward, build upon all that the business has achieved this year and take advantage of the substantial opportunities we see in the growing global smart card industry. His broad base of experience will allow him to directly and rapidly contribute across a number of our major markets, including telecoms and security." Alex Mandl said: "I will be in Gemenos next week and look forward to meeting everyone. I also look forward to leading Gemplus to secure its full potential in the fast moving smart card marketplace. I will be totally committed to that aim on behalf of our customers, employees and shareholders alike. I am helped enormously by the significant achievements of Ron Mackintosh and the whole management and employee team this year. There is much to be done; but Gemplus has a great platform from which to work." Gemplus helps its clients offer an exceptional range of portable, personalized solutions that bring security and convenience to people's lives. These include mobile Internet access, inter- operable banking facilities, e-commerce, and a wealth of other applications. Gemplus is the only completely dedicated, truly global player in the Smart Card industry, with the largest R&D team, unrivalled experience, and an outstanding track record of technological innovation. In 2001, Gemplus was the worldwide smart card leader in both revenue and total smart card shipments (source: Gartner- Dataquest, Frost and Sullivan, BNP Paribas). Gemplus was also awarded Frost and Sullivan's 2002 Market Value Award for its exceptional performance. Its revenue in 2001 was 1.023 Billion Euros. It operates in 37 countries throughout the world and had 2001 revenues of 1.023 billion euros. Contact Information: Yves Guillaumot Investor Relations Telephone: +33 (0)4 42 36 52 98 Email: yves.guillaumot@gemplus.com ===================== N E T H E R L A N D S ===================== VERSATEL TELECOM: Administrator Submits Creditors List to Court --------------------------------------------------------------- Versatel Telecom International N.V. announced its Administrator, Mr. A. Deterink, deposited on August 30, 2002, at the district court of Amsterdam, the preliminary list of accepted and disputed claims in the Dutch suspension of payments procedure, available free of charge during the 7 days prior to the day on which the consultation and voting on the Dutch plan of composition (het Akkoord) will take place (September 9, 2002). The Administrator received claims from creditors amounting to over EUR 1.3 billion, representing more than 80% of the total debt outstanding. Versatel Telecom International N.V. received proxy's from creditors, representing over 99% of the registered and accepted claims, to vote in favour on the Dutch plan of composition (het Akkoord). Versatel Telecom International N.V., based in Amsterdam, is a communications network operator and 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 81,000 business customers and 1,168 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 under the symbol "VRSA". News and information are available at http://www.versatel.com. Contact Information: AJ Sauer Investor Relations & Corporate Finance Manager Telephone : +31-20-750-1231 E-mail: aj.sauer@versatel.nl VERSATEL TELECOM: Moves Closer Towards Debt Swap ------------------------------------------------ Debt-burdened Versatel recently disclosed significant progress in a critical debt-for-equity swap, a report from the Financial Times says. The company revealed that its creditors have already announced their support, holding more than EUR1.3 billion representing more than 80% of its total outstanding debt, the paper adds. Versatel, which filed for protection from its creditors in June, had required support from those holding 75% to allow Dutch and US courts to force support from bondholders opposed to the restructuring, the paper says. The company plans to swap EUR1.7 billion of high-yield bonds into shares and cash, to reduce its debt and emerge with EUR100 million in cash and a EUR150 million of credit facility, the daily says. Previously, Versatel had wanted to complete the plan by the end of the month that would see it through to positive cash flow in early 2004, the paper says. The company's financial woes were caused by a failed strategy, over-expansion and investor wariness, the paper adds. =========== P O L A N D =========== BANCA POPOLARE: Fitch Downgrades Ban's Long-Term Debt Rating ------------------------------------------------------------ International rating agency Fitch Ratings has downgraded Banca Popolare Commercio e Industria's long-term rating to 'BBB+' from 'A-' and its individual rating to 'C/D' from 'C', a report from the rating agency says. Moreover, the short-term and support ratings have been affirmed at 'F2' and '4' respectively. The agency has assigned a stable outlook for the long-term rating. Fitch says, "the rating action reflects BPCI's weak operating profitability. Its revenues fell sharply during 1H02 as lower interest rates reduced earnings from the group's plentiful liquidity. Despite an improvement in second quarter 2002, and the prospect that the group's earnings in 2H02 are likely to improve, BPCI will still report a meager level of operating profit for the full year. New management has introduced various policies that should benefit the bank's income from second half 2002. In addition, the disposal of a majority stake in the underperforming Internet subsidiary, OnBanca, should enhance BPCI's operating profits." Fitch further notes that "in the longer term, BPCI's management plans to raise profitability to reach 9% RoE in 2006, by keeping costs close to their 2001 level while improving productivity. Meanwhile, costs are absorbing a large portion of revenues and, according to the group's plans, operating profit is scheduled to rise only gradually. Management expects cost and revenue synergies from the acquisition of Banca Carime to double the group's expected 2002 full year operating profit in 2004, albeit to a low level. At the same time, the outlook for economic growth remains muted and could be a further obstacle to improvement. While operating profit remains depressed, the bank is potentially vulnerable to unexpected shocks." Moreover, Fitch says it is "reassured by both the good asset quality in the group, and the level of capital adequacy. By issuing fresh capital now, and as a result of other measures already agreed, management expects to report a Tier 1 ratio of 7% by end-2002, which Fitch regards as satisfactory." "The agency also appreciates the steps identified by management as necessary to improve the structure and profitability of the bank. These are in the process of being implemented and include the sale of Onbanca, a bancassurance agreement, the raising of fresh capital and the reduction in tax on goodwill. The integration of Carime is continuing successfully." BIG BANK: Subsidiary Concludes Agreement on Reporting ----------------------------------------------------- The Management Board of BIG Bank GDANSKI S.A. announced that on September 3, 2002 BEL Leasing Sp. z o.o. and ACCON Sp.z o.o., both Bank subsidiaries, concluded an agreement under which BEL will manage the record keeping and reporting for ACCON. The agreement includes a monthly payment of PLN 85 400 gross by ACCON, and total liabilities for the 5-year period is PLN 5 124 000 gross. ELEKTRIM SA: Pulls Out of Life-Saving Restructuring Deal -------------------------------------------------------- Elektrim returned to the brink of bankruptcy early this week when it pulled out of a life-saving debt restructuring deal because it fears it could not make payments on time, a report from the Warsaw Business Journal says. Early in July, the company signed a deal with creditors to restructure defaulted bonds. The deal, which was brokered with the help of BRE Bank, expected that Elektrim could pay back EUR100 million of the debt by September, and another EUR100 million in December, the paper says. "In the light of present market conditions we cannot in good faith carry out the previously agreed conditions of debt restructuring because of the difficulties in selling our key assets," the company said in a statement. Elektrim had planned to issue new bonds and BRE Bank was supposed to purchase EUR100 million of the new bonds from the creditors, securing them with Elektrim's 49% stake in Elektrim Telekomunikacja (ET), a joint venture with France's Vivendi that controls Eastern Europe's largest mobile operator PTC, the paper says. However last month, Elektrim, whose market value lowered to USD50 million from a peak of USD1.5 billion during Europe's telecoms boom two years ago, said it failed to reach a deal with BRE on the sale of its ET stake. Elektrim also considered selling its stake in power group PAK and cable television operator Aster City but a market slump cut valuations of its assets, the paper says. ========= S P A I N ========= JAZZTEL P.L.C.: Resolves Market Maker Contract With Merrill Lynch ----------------------------------------------------------------- Jazztel Plc hereby communicates that Jazztel and Merrill Lynch Capital Markets, S.A., S.V.B. have agreed to resolve the ""Market Maker Contract"", undersigned between the parties on December 27 2000. Given the high volumes the Jazztel stock is experiencing since its listing on the Spanish Stock Exchanges, the parties consider the role of a Market Maker is currently not needed in order to assure sufficient liquidity. =========== S W E D E N =========== LM ERICSSON: Pioneers on Messaging Services at Wireless Village --------------------------------------------------------------- LM Ericsson (http://www.ericsson.com/)announced the world's first commercial deployment of a Wireless Village based Instant Messaging and Presence Services (IMPS) solution to a mobile operator. As a leader of advanced mobile messaging solutions, Ericsson is announcing both the availability and the first commercial deployment of its new Instant Messaging and Presence Services Solution (IMPS 2.0), based on the open standards of Wireless Village. This solution enables users to view other users' presence, send and receive Instant Messages and join community chats on their mobile handset. Ericsson's ongoing support of Wireless Village standardization work and delivery of IMPS 2.0 server and client products is further proof of Ericsson's commitment to open standards in the telecommunications industry. By deploying Ericsson's IMPS solution based on open standards, mobile operators can resolve the interoperability issue of today's proprietary instant messaging systems. Ericsson IMPS allows mobile operators to offer advanced Instant Messaging and Presence Services across handsets, mobile devices and desktop clients - independently of device manufacturer. "Current Instant Messaging services are primarily based on desktop users and incorporate non-interoperable, proprietary protocols," says Jan Lindgren, Vice President, Mobile Internet Solutions, Ericsson. "Ericsson's IMPS bridges the gap between mobile and fixed communities by ensuring messaging interoperability between Instant Messaging services, operators and different device types." Ericsson has already seen strong operator demand for advanced messaging and presence enabled services. Ericsson has been chosen to commercially deploy its end-to-end IMPS 2.0 solution by a European 2/2.5/3G operator. The IMPS service includes advanced handsets with both downloadable and embedded clients for improved user experience. "Our commitment to IMPS solutions further strengthens our leadership position in multimedia messaging, where Ericsson is the clear leader with more than 30 commercial agreements and more than 90 MMS trials at operators' sites worldwide," says Mr. Lindgren. "Integration of IMPS and MMS is an important part of Ericsson's messaging strategy." 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. Ericsson's IMPS 2.0 is a mobile centric Instant Messaging and Presence Services solution, giving mobile and desktop users a more advanced real-time communication experience that offers superior usability combined with the added dimension of presence. Users can check on the on-line presence of contacts, manage their own presence information, send and receive instant messages, participate in group-chats and create own communities, regardless of device and network. Ericsson's IMPS server is based on a modular architecture with open protocols and interfaces and industry standard components with carrier-grade infrastructure. To satisfy the immediate need for mobile Instant Messaging solution and enable fast adoption, the IMPS 2.0 includes, not only embedded and downloadable clients, but also support for legacy clients. This will allow operators to deploy the solution in existing networks and to existing subscribers. Founded by Ericsson, Motorola, and Nokia, Wireless Village, the mobile Instant Messaging and Presence Services (IMPS) initiative, was formed in April 2001 to define and promote a set of universal specifications for mobile instant messaging and presence services. The specifications will be used for exchanging messages and presence information between mobile devices, mobile services and Internet-based instant messaging services, all interoperable and leveraging existing Internet technologies. Through its Supporters, the Wireless Village (http://www.wireless-village.org)initiative is building a vibrant community of users, mobile operators and global business partners where Internet and wireless domains converge. The IEEE Industry Standards and Technology Organization (IEEE-ISTO) provides day-to-day administrative support to the Wireless Village initiative. New members have the opportunity to comment and make contributions to the specification, participate in interoperability events and attend quarterly face-to-face board meetings. SONG NETWORKS: Delists From Nasdaq; Subsidiary Default on Debt -------------------------------------------------------------- Song Networks Holding AB announced that the voluntary delisting of its ADRs from the Nasdaq National Market became effective at the start of trading on Thursday, August 29, 2002. Song Networks decided to delist from Nasdaq as the present ownership and market situation does not justify the costs related to the listing. Song Networks intends to maintain its listing on the Stockholmsborsen. Song Networks further announced that its wholly owned subsidiary Song Networks N.V. did not make the interest coupon payment on August 30, 2002 on the EUR175,000,000 12% Senior Notes due 2008, originally scheduled for August 1. August 30, 2002 was the last date for making such interest payment under the relevant note indenture before such failure constitutes an Event of Default, which would give rise to potential acceleration of the senior bonds. Operations throughout Song Networks remain otherwise unaffected at this time. Song Networks expects to complete a restructuring, conclude the Extraordinary General Meeting and the akkoord process in the Netherlands before the end of October. About Song Networks, formerly Tele1 Europe, 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. 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. For further information, please visit our website at http://www.songnetworks.net Contact Information: Song Networks Holding ABJenny Moquist Investor Relation Telephone: +46 8 5631 0219 Mobile: +46 701 810 219 E-mail: jenny.moquist@songnetworks.net =========================== U N I T E D K I N G D O M =========================== BRITANNIC GROUP: Interim Results Six Months Ending June 30, 2002 ---------------------------------------------------------------- Financial Results - Achieved operating profit for period of GBP52 million. - Shareholder funds of GBP1.3 billion. - Interim dividend maintained at 18.5p per share. - Free asset ratio of 9.5%. - Organic strategy centred on asset gathering, primarily building on the provision of asset management services and niche retirement products. - Prudent capital management. - Cost control to maximise cash earnings and margins. Board - Appointment of Bryan Portman as Group Managing Director. Harold Cottam, Chairman of Britannic Group, commented: 'Britannic's results reflect both the strategic actions taken by the Group and the impact of the depressed equity markets coupled with the tough economic and trading environment in which we operate. 'Retail investment, life and pensions sales volumes were broadly level, reflecting closure of Britannic Assurance's direct sales force last year and the parallel growth of its partnership channels. Britannic Asset Management's retail sales held up well and, its wholesale new business includes sales from its recently acquired international division. Britannic Retirement Solutions continues to show very rapid growth with first half sales almost equalling the whole of last year's. Britannic Money's sales were deliberately held down as the business continues its focus on margin and high lending quality. 'At the operating profit level, the results are dominated by the reduced investment returns on Shareholders Retained Capital (SRC) and the absence of the GBP13 million exceptional benefit to Britannic Assurance's financial results in the same period last year. These more than account for the reduction in operating profit from GBP80 million to GBP52 million and mask the falling losses in Britannic Retirement Solutions despite its high growth and the substantial fall in Britannic Money's losses. Both these businesses remain on track for break even in 2003. 'As stated at the time of publishing our full year results for 2001, we are maintaining our interim dividend at 18.5p per share. Looking ahead, future dividends will reflect market conditions, the smoothed return from the SRC and the prospects for ongoing operating earnings. In the light of current equity market conditions, the SRC return for the half year has been set at GBP23 million (GBP45 million annualised) and future transfers will be set with due regard to prevailing market conditions at the time 'On July 17th, we announced that it was not possible to achieve full value for Shareholders by pursuing scale at this time through transactional activity. Britannic will therefore continue to concentrate its strategic efforts on asset gathering, building on the provision of asset management services and serving the niche retirement market. These are well represented by the strengths of Britannic Asset Management and by the success of Britannic Retirement Solutions in serving the 'at retirement' market with its specialist products. 'This strategy will continue to be accompanied by prudent capital management, maximization of cash earnings and cost savings through eliminating unprofitable elements of our business. In line with this policy, we have today taken action to close the remaining unprofitable elements of distribution at Britannic Assurance. This will reduce Britannic Assurance's existing cost base by a further GBP10 million at a one off cost of around GBP8 million, and will unfortunately result in the loss of approximately 200 jobs. 'Britannic has a free asset ratio of 9.5% at 30 June, 2002, well in line with the other stronger offices in the sector. This coupled with our strategic focus, enables Britannic to build on the strengths of our businesses in their particular markets. 'We are also very pleased to confirm that Bryan Portman, who has been our Group Finance Director since June, 2001 is today appointed Group Managing Director. This follows completion of an extensive executive search and evaluation process. An executive search is now in place to recruit a new Group Finance Director and, in the meantime, Bryan's previous finance responsibilities have been delegated to his team under Britannic's Group Finance Manager.' A copy of the group's latest profit and loss and balance sheet statements may be viewed at: http://bankrupt.com/misc/britannic.pdf BRITANNIC GROUP: Appoints New Group Managing Director ----------------------------------------------------- The Board of Britannic Group announced the appointment of Bryan Portman, currently Britannic's Group Finance Director, to the role of Group Managing Director with effect from September 3, 2002. Bryan's responsibilities as Finance Director are being assumed by Britannic's Group Interim Finance Manager while a search for a new Group Finance Director is completed. Harold Cottam will continue as executive Chairman of Britannic Group. Commenting, Harold Cottam, said: "We are delighted to welcome Bryan as Britannic's Group Managing Director. His skills and experience, and his knowledge of Britannic, suit him ideally to the role. It is also a pleasure to make this appointment as the conclusion of a comprehensive, independently managed search process." Bryan Portman joined Britannic Group on June 28, 2001, as Group Finance Director. He has wide business experience, both within and outside the financial services industry. He initially worked for Coopers and Lybrand both in the UK and Overseas. He then joined Courtaulds plc before moving on to the Argyll Group ( now Safeway Group) where he held a variety of financial and corporate development roles. This was a period of rapid development for Argyll, both in the food and drinks industry, which culminated in the acquisition of Safeway in 1987. Bryan then moved into financial services when he was appointed Chief Executive of Hill Samuel Life and later Hill Samuel Investment Services Group, both subsidiaries of TSB Group. Subsequently, Bryan was Chief Executive of Old Mutual Life Assurance (UK) Limited, until its eventual sale to Century Life. A graduate from Manchester Business School with a Masters Degree in Business Administration with Distinction, Bryan is a Fellow of the Association of Chartered Certified Accountants and the Institute of Chartered Secretaries and Administrators. CORDIANT COMMUNICATIONS: May Consider Disposal of Some Units ------------------------------------------------------------ Cordiant Communications Group Plc is likely to plan the disposal of some units amidst the gloom hovering over the advertising industry worldwide, a report from Bloomberg says. Cordiant has already considered selling all or part of its 77% stake in Scholz & Friends AG, a German ad agency, for an estimated 5 euros per share. The shares closed at 2.45 euros on Monday, the news agency says. Scholz & Friends has attracted interest from WPP Group Plc in the past. WPP however, has not yet offered a price and any takeover by it would mean the departure of Scholz's senior executives, the news agency adds. Bloomberg further reports that Cordiant also holds a 25% stake in Zenith Optimedia Group, with Publicis Groupe SA of France owning the rest. Publicis will have to buy the stake for at least USD75 million once Cordiant decides to sell its stake at the end of 2003. INVENSYS PLC: Appoints Senior VP for Project Management ------------------------------------------------------- Invensys plc, a global leader in production technology and energy management, announced the appointment of Jim Siler as Senior Vice President, Project Management with effect from September 1, 2002. Jim joins Invensys from Alstom Power in Switzerland, where he has been Managing Director, Global Projects. Previously, Jim spent seven years at ABB's power division based in Germany as Senior Vice President, Project Division and in a variety of other senior project management roles. Jim was responsible for a number of significant projects while at ABB, including building plants in Bahrain during the Gulf War and turnkey projects for power stations in Asia, South America, the Middle East and Europe. From 1994-1996, Jim founded and led his own successful project management consultancy, Caden International. Jim built the business before selling it in 1996 to his management colleagues. Jim also has 24 years' experience in General Electric, where he held a variety of international project engineering and management roles. CEO, Rick Haythornthwaite said: "I am delighted to have attracted Jim to Invensys. His track record in project management is outstanding and his leadership will play a vital role in delivering successful project results and establishing a project and leadership culture, leading to improved customer satisfaction. Our appointment of Jim concludes our recruitment of leaders for our four Performance Improvement initiatives, which are key to implementing our strategy - Project Management, Lean Supply Chain, Customer Development and Services - and also completes the new Executive Team announced in February." Invensys plc, the international production technology and energy Management Group specialises in helping customers to improve their efficiency, performance and profitability. Our Production Management businesses work closely with customers in order to drive up performance of their production assets, maximize the return on investments in production technologies and remove cost and cash from their whole supply chain. The Division includes Foxboro, Wonderware, Triconex, APV, Eurotherm and Baan and addresses the oil, gas and chemicals, food, beverage and personal healthcare, and discrete and hybrid manufacturing sectors. Our Energy Management businesses actively work with clients involved in the supply, measurement and consumption of energy, using innovative technologies to reduce costs and waste and improve the efficiency, reliability and security of power supply. The Division includes Energy Management Solutions, Appliance and Climate Controls, Global Services, Metering Systems, Powerware and Home Control Systems and focuses on markets connected with power and energy infrastructure for industrial, commercial and residential buildings. Invensys operates in over 80 countries, with its headquarters in London, England. KINGFISHER PLC: Wins DIY Day as Castorama Directors Depart ---------------------------------------------------------- Five directors of Castorama's board led by its chairman Jean Hugues-Loyez left the company with a GBP100 million share as Kingfisher got control of the French DIY company for the first time since it purchased a 55% stake four years ago, a report from the Independent says. Mr. Loyez, who led an unsuccessful battle against Kingfisher's GBP3.2 billion takeover of French DIY Castorama, left the company with four other directors and with a share worth GBP100 million to be divided among them. Personally, Mr. Loyez is expected to get a GBP25 million for his stake in the business, the daily adds. Kingfisher's outgoing chief executive Sir Geoff Mulcahy was appointed chairman of the Castorama. He is expected to start meetings with the second tier of Castorama management soon, the paper reports. Kingfisher, which raised GBP2 billion through a 1-for-1 rights issue at 155p a share, formally launched its Eu67-a-share offer for Castorama last Sunday, the paper reports. The daily says now that it has taken over Castorama, Kingfisher's main focus will be to integrate the French DIY chain with B&Q, as well as implement cost savings measures. The company will step up restructuring, as it will see the demerger of its French electrical business. It prefers to float the business on the Paris bourse, the paper reports. The shares have jumped since the success of its GBP2 billion rights issue, priced at 155p per share. Meanwhile, Kingfisher is still searching for Sir Geoff's replacement on the board. An appointment is expected to be unveiled within the next few months, the Independent says. PSION PLC: Releases Interim Results Ending June 30, 2002 -------------------------------------------------------- Psion PLC, the mobile solutions computing company, announces interim results for the six months to June 30, 2002. Six months Six months to 30.6.02 to 30.6.02 (unaudited) (unaudited) Turnover GBP70.8m GBP100.5m Operating profit + GBP2.2m (GBP6.4m) Profit before tax (GBP15.4m) (GBP54.4m) Adjusted EPS + (0.9p) (3.2p) EPS (3.7p) (13.1p) Dividend nil nil + Before goodwill and exceptionals Operational Highlights --- The Group has a strong balance sheet. It generated cash from its operating activities and had net cash (including current asset investments) at June 30, 2002 of GBP26.0m. --- Psion Teklogix is now the major operating company of the Group. It performed well in difficult markets, reflecting reduced corporate IT spending, particularly in North America. Gross margins and pre-tax profit improved and the company generated GBP7.1m in cash. --- Psion Digital continues to be wound down --- Modest investment in new software activities related to the future programmable cell phone market --- Symbian shareholders secured additional funding for the company in January 2002; Siemens became shareholders in April 2002 and contributed further funds. --- First volume Symbian-based products entering the market - including the Nokia 7650 David Potter, Chairman of Psion, said: "Management expects that enterprise markets in information logistics will continue to be difficult during the second half of the year. While we are not at this point seeing any improvement in market conditions, Psion Teklogix, for the full year, is expected to be profitable and cash generative, with revenues expected to be flat or marginally ahead of the prior year". "Symbian has made good progress in the first half, but it will continue to carry heavy costs as it brings its program forward. It expects to see increasing revenues during the second half of the year. However, the markets that Symbian is addressing are nascent ones and the scale of revenue required to generate profits is not likely to be seen until annual volumes of between fifteen and twenty million units are reached." Psion focuses on providing mobile data and corporate network solutions. Psion has a well-earned reputation for technology innovation and leadership. Chairman David Potter founded Psion in 1980. It is now one of Europe's leading technology companies with a history of pioneering new markets for digital products. Psion PLC's (http://www.psion.com)strategy focuses on industrial and enterprise markets through Psion Teklogix and on its strategic investment in Symbian. Psion Teklogix is the main division of the Psion Group. It is a provider of industrial wireless data communications systems, integration services and product support and maintenance for customers throughout the world, in particular in Europe and North America. Psion Teklogix develops, designs, manufactures, markets and supports real-time logistics systems in the industrial space. Psion Teklogix's products focus on providing real-time data collection and communication solutions to major companies worldwide. There are currently more than 15,000 Psion Teklogix systems installed in 50 countries worldwide. Psion is also the largest shareholder in Symbian, a joint venture company owned by Psion, Ericsson, Motorola, Matsushita, Nokia, Siemens and Sony Ericsson. Symbian's (http://www.symbian.com)objective is to develop and market its platform technology as the industry standard for the next generation of Smartphones and Communicators. SCIPHER PLC: Wins Major Project for National Identity Systems ------------------------------------------------------------- Scipher plc (http://www.scipher.com)the technology development and licensing company, announced that it won a major project to supply a secure identification system for the management of foreign workers and cross border traders in Nigeria. The agreement is with Contec Global Limited, a Nigerian company specialising in facilities management and security systems, operating under contract from the Government of the Federal Republic of Nigeria. The project is expected to result in sales of up to GBP5.0 million over two years. Additional recurring revenue of up to GBP2.0 million per year is expected for document re-issuing and ongoing system development. The system has been designed to manage foreign nationals that live and work in Nigeria. These individuals will be issued with cards and identity books that are protected by Scipher's `DeedMark' machine-readable security seal, which provides each identity book with a permanent and unique identity. In addition, the books carry the fingerprint of their legal bearer stored as a 2-D bar code. Scipher's fingerprint verification product, `Verid', is used to authenticate the individual holding the identity book so as to prevent counterfeit or other fraudulent use. The identity book will be checked at all border crossings and also during spot-checks within Nigeria using Scipher's bespoke reading equipment to verify that the presented book is genuine. Also, the bearer's fingerprint is scanned and crosschecked with the bar code on the identity book to ascertain that the correct person is using it. The system provides a secure audit trail for all identity books issued and uses some of the elements designed for the successful National Health Service smart card system that Scipher is presently rolling out across England. Dr Ken Gray, Chairman of Scipher said: 'Our Secure Identification business, TSSI, is increasingly being recognised as a leading provider of specialist high-security products and systems. This is another major systems win based on what is clearly our world- leading fingerprint and secure magnetic technology.' VERNALIS GROUP: Announces Frovatriptan Drug Is Highly Effective --------------------------------------------------------------- Vernalis Group plc announced the successful outcome of a large multi-centre study that demonstrated the significant benefits of using frovatriptan, its newly marketed anti-migraine treatment, in the prophylaxis (prevention) of menstrually-associated migraine headaches. The double-blind, placebo-controlled crossover trial was conducted at 36 clinics in the United States and involved over 500 menstrual migraine sufferers. On average, women in the trial had suffered between 11 and 12 menstrual migraine attacks over the previous 12 months and had a 12-year history of menstrually- associated migraine. Patients were evaluated over three menstrual cycles over the course of which each patient received all three dose regimens, placebo, 2.5mg frovatriptan and 5mg frovatriptan, in randomised order. During each cycle they took the treatment for a total of six days commencing before the predicted onset of their headache. The headline results showed that both dose levels of frovatriptan were highly effective in reducing the incidence, severity, and duration of menstrually-associated migraines compared to placebo. A total of 52% of patients were completely headache-free during the six-day period when they took 5mg frovatriptan daily, and 41% were headache-free at a daily dose of 2.5mg, compared to only 26% when they took placebo. These differences were highly statistically significant (p<0.0001). In addition, there were statistically significant reductions in the severity of the attacks and in the duration of headaches, and a concomitant decrease in patients' functional impairment. Frovatriptan was well tolerated during the trial and the adverse event profile was similar to that previously seen with single doses of frovatriptan. Around 16% of women suffer from migraines and recent studies suggest that as many as 50% of female migraineurs report that menstruation is a trigger for their migraine attacks (MacGregor et al.). One possible explanation is that the hormonal changes which are believed to be the trigger for menstrually-associated migraine continue over a number of days. Commenting on the results, Dr John Hutchison, Vernalis's Chief Medical Officer said "We already know that frovatriptan is effective as an acute treatment for migraine, and the results of this study confirm our belief that, with its 26-hour half-life in blood, it could also be ideally suited for use as a prophylactic treatment for menstrual migraine. We will be conducting further clinical studies to develop this new indication and to realise the enormous potential benefits of this breakthrough for menstrual migraine sufferers." Robert Mansfield, Chief Executive of Vernalis, said "These exciting data on Menstrual migraine add an entirely new dimension for frovatriptan. The fact that frovatriptan has the longest half-life clearly differentiates it in the class of triptan drugs. We are very pleased with the progress and the feedback from the frovatriptan launch in the US." Dr Anne MacGregor Director of the City of London Migraine Clinic, commented "This is a very positive set of results in this population with menstrually-associated migraine. Existing treatments do not work as well in menstrual migraine attacks, and there is a real need for effective and specific prophylactic treatments." Dr Arthur Elkind, Director of the Elkind Headache Center in New York, said "The data from this trial look most impressive and we can look forward to confirmation of the results in future studies. A number of my patients were eager to continue with frovatriptan as a preventative treatment once they had completed the trial." Frovatriptan, a 5-HT1B/D agonist, was developed by Vernalis and is already approved in the US and the European Union for the acute treatment of migraine. Vernalis is an integrated biopharmaceutical company that discovers, develops and commercialises drugs to treat central nervous system diseases, obesity and related disorders. The Company is internationally recognised for its expertise in the field of serotonin, a key neurotransmitter involved in neurological, psychiatric and eating disorders. The Vernalis portfolio includes programs targeting sexual dysfunction, obesity, diabetes, Parkinson's disease, depression and anxiety. Vernalis shares trade on the London Stock Exchange (VER) and the website is located at http://www.vernalis.com. Contact Information: Robert Mansfield Chief Executive Officer UK Telephone: (0)118 977 3133 John Hutchison Chief Medical Officer UK Telephone: (0)118 977 3133 WIGGINS GROUP: Issues Statement on Payment of Mezzanine Debt ------------------------------------------------------------ Wiggins Group plc, the airport owner and property developer, announced that after discussions with its mezzanine lenders, it has agreed with them to pay GBP1.5m as a partial repayment of the facility from the proceeds of the sale of land at Fairfield Park instead of the GBP3m previously announced. Additionally, it has been agreed that the repayment of the balance of the facilities, including interest fees, will be made by March 13, 2003 instead of December 2002 and January 2003 as previously announced. It remains the priority of the Board to repay all mezzanine debt. ************ 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 * * *