/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/030203.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, February 3, 2003, Vol. 4, No. 23 Headlines * B E L G I U M * SABENA: Investigators Blame Swiss Airline for Bankruptcy * F R A N C E * ALCATEL: Scanfil Oyj to Acquire Manufacturing Plant in Belgium FRANCE TELECOM: EU Commission to Examine Credit Line in Detail FRANCE TELECOM: Says EU Investigation Is Routine, Necessary PECHINEY: Will Shut Factories to Adjust to Market Trend VIVENDI UNIVERSAL: In Talks With Microsoft Regarding Games Asset * G E R M A N Y * ALLIANZ AG: Confident of Favorable Ruling From Jury BAYER AG: Standard & Poor's Revises Outlook to Negative DEUTSCHE TELEKOM: Enters Nordic Broadband Market Via Carrier 1 * H U N G A R Y * AJKA CRYSTAL: Axes Jobs, Confirms Threat of Closure * I R E L A N D * ELAN CORP: Announces Recovery Plan Update and Lawsuit Settlement ELAN CORP: Announces Sale of Primary Care Franchise King * N E T H E R L A N D S * GETRONICS NV: Extends Invitation to Tender Convertible Bonds JOMED NV: Short-term Financing Negotiations Continuing KLM ROYAL: Settles Suit With Alitalia, Pays EUR175 Million * N O R W A Y * PETROLEUM GEO-SERVICES: Pays 6-5/8% and 7-1/8% Bond Interest * S P A I N * BBVA PRIVANZA: BBVA Decides to Wound Up Unit Without Liquidation * S W E D E N * LM ERICSSON: Injects EUR 300 Million to Sony Joint Venture * S W I T Z E R L A N D * BANQUE CANTONAL: Sues Senior Managers Over Losses CREDIT SUISSE: E-mail Suggesting Cover-Up Now Under Scrutiny * U N I T E D K I N G D O M * ABBEY NATIONAL: Forced to Subsidize Scottish Life Assurance AMEY PLC: Highways Agency Awards Amey Area 13 Contract BAE SYSTEMS: Ministry of Defense Selects BAE Prime Contractor BAE SYSTEMS: Aircraft Contract Fails to Resolve Ratings HARD ROCK: Chief Executive Resigns From Restaurant Chain LAMONT TEXTILES: To Petition the Court for Administrator LIFE-ENERGIES: Probe Results in Wind-Up of Company in High Court MARCONI PLC: Notice of Proposed Schemes of Arrangement NTL INC: Court Extends Interim Relief For Possible Proceedings PICARDY TELEVISION: Scottish Operation in Receivership SPORTS CONNECTION: Sluggish Christmas Sales Forces Receivership ============= B E L G I U M ============= SABENA: Investigators Blame Swiss Airline for Bankruptcy -------------------------------------------------------- The parliamentary commission investigating the bankruptcy of airline Sabena SA says former shareholder Swissair failed to respect its obligations to its subsidiary, subsequently forcing the unit's bankruptcy. Swissair Group holds a 49.5% interest in the Belgian carrier. The state holds the remaining 50.5% stake. According to AFX, a commission member during the presentation of the investigation report said Swissair pressured Sabena to place important orders with Airbus, which exceeded its own needs, without "respecting its financing promises." The commission's report also cited ""the public company culture, the slow decision making processes, the low productivity and the high cost structure," as further causes of the company's collapse. It also alleged that successive Belgian governments have "variable policies" regarding its commitment to the carrier. It also attacked the board of directors, where the Belgian government had its representatives, calling it "passive" particularly with respect to the issue of the Airbus orders. Commission President Raymond Langhendries said a Brussels judge is continuing his investigation of the case. =========== F R A N C E =========== ALCATEL: Scanfil Oyj to Acquire Manufacturing Plant in Belgium -------------------------------------------------------------- Scanfil Oyj, a global contract manufacturer and systems supplier for communication and industrial electronics, and Alcatel announced the asset purchase of Alcatel's component manufacturing facility in Hoboken, Belgium by Scanfil Oyj. The deal includes a supply agreement per which Scanfil Oyj will continue to manufacture for Alcatel. The 250 employees of Alcatel's Hoboken manufacturing plant will be transferred to Scanfil Oyj upon the final closing of the agreement, which is expected to be completed during the second quarter of 2003. This transaction is in line with Alcatel's strategy to focus on its core competencies including R&D, product and solution design and new product integration (NPI), as well as marketing and sales towards telecom and non-telecom service providers around the world. About Scanfil Oyj Scanfil Oyj is a global contract manufacturer and systems supplier for communication and industrial electronics with over 30 years experience in demanding subcontracting and contract manufacturing. Scanfil's pro forma turnover in 2001 was EUR 257,0 million and the personnel totalled about 1,600. For more information, visit Scanfil on the internet: http://www.scanfil.com About Alcatel Alcatel designs, develops and builds innovative and competitive communications networks, enabling carriers, service providers and enterprises to deliver any type of content, such as voice, data and multimedia, to any type of consumer, anywhere in the world. Relying on its leading and comprehensive products and solutions portfolio, stretching from end-to-end optical infrastructures, fixed and mobile networks to broadband access, Alcatel's customers can focus on optimizing their service offerings and revenue streams. With sales of EURO 25 billion in 2001, Alcatel operates in more than 130 countries. FRANCE TELECOM: EU Commission to Examine Credit Line in Detail -------------------------------------------------------------- The European Commission will examine the detail of the mode at which the shareholder's advance in the form of a maximum credit line of EUR9 billion to cover France Telecom's debts was granted to the company. The probe will also cover the business tax scheme applicable to the telecommunications company. The Commission is concerned that both measures might constitute a state aid. The body will launch a formal investigation despite an earlier review of the information presented by France Telecom, so that it could examine in detail the shareholder's advance and the business tax. According to Europemedia, the Commission says it cannot rule out the possibility that the financial measures put in place by the state for France Telecom contain elements of state aid basing on information it now holds. The French authorities opted for a shareholder's advance granted in the form of a credit line not exceeding EUR9 billion after considering that recapitalization of the company, through rights issuance, is not possible in the near future. The advance, which was granted via a public institution, is proposed to carry interest at market rates. CONTACT: FRANCE TELECOM 6, Place d'Alleray 75505 Paris Cedex 15, France Phone: +33-1-44-44-22-22 Fax: +33-1-44-44-95-95 Homepage: http://www.francetelecom.fr Contacts: Thierry Breton, Chairman Michel Combes, Executive Committee, Finance FRANCE TELECOM: Says EU Investigation Is Routine, Necessary ----------------------------------------------------------- The formal investigation procedure opened by the European Commission is a routine and necessary initiative enabling the Commission to carry out its analysis, in the interest of transparency, and give voice to all parties involved. France Telecom believes that, as majority shareholder, the French State's participation in the company's action plan is no different to that of a private investor and does not contain any element of state aid. France Telecom and the French government have been working closely with the European Commission since December 3, 2002, when the French authorities presented a file containing the presentation of the FT2005 plan. France Telecom will continue to provide all the information needed by the Commission to complete its investigation. The opening of an investigation procedure does not prejudge the final decision of the Commission over the nature of the State's participation in the FT2005 plan launched by the new management of France Telecom. CONTACT: FRANCE TELECOM 6, Place d'Alleray 75505 Paris Cedex 15, France Phone: +33-1-44-44-22-22 Fax: +33-1-44-44-95-95 Homepage: http://www.francetelecom.fr Contacts: Thierry Breton, Chairman Michel Combes, Executive Committee, Finance PECHINEY: Will Shut Factories to Adjust to Market Trend ------------------------------------------------------- Global aluminum and packaging company Pechiney plans to shut factories this year to counter a weak dollar and commodities market. Pechiney President Jean-Pierre Rodier says the restructuring could cost between EUR50 million to EUR70 million and would affect around 600 workers this year. The job cuts will be on top of the roughly 500 jobs slashed in 2001, mainly in Britain, the United States, and Italy. Together with the announcement, Pechiney also revealed a net loss of EUR50 million (US$54 million) for 2002 in comparison with a profit of EUR233 million in 2001. Analysts consider the results satisfactory, though; leading Pechiney shares to rise sharply in midday trade on the Paris stock exchange Thursday. The shares jumped 4.24% to EUR 27.26 in midday Paris trade, while the CAC 40 index of leading shares was up 2.13 percent overall. The company's earnings are sensitive to the currently weak aluminum price, said Mr. Rodier. For instance, a US$100 movement in the price per ton translates to a EUR90 million impact on the annual operating result. The world's fourth largest aluminum group posted an operating profit of EUR 407 million for 2002, down from EUR 549 million a year earlier, on sales of EUR 11.909 billion, up from EUR 11.054 billion. Mr. Rodier did not give a forecast for 2003 results, but said, "continued weakness of the dollar in 2003 will have an impact" on them. CONTACT: PECHINEY 7, place du Chancelier Adenauer 75116 Paris, France Phone: +33-1-56-28-20-00 Fax: +33-1-56-28-33-38 Home Page: http://www.pechiney.com Contact: Investor Relations Contacts: Charles L. Ranunkel Phone: 01 56 28 25 07 Catherine Paupelin Phone: 01 56 28 25 08 Jerome Gaudry Phone: 01 56 28 2523 Fax: 01 56 28 33 38 VIVENDI UNIVERSAL: In Talks With Microsoft Regarding Games Asset ---------------------------------------------------------------- Vivendi Universal and Mircosoft Corp. have been in buyout talks regarding Vivendi's video games business for more than a month now, say sources close to the situation. The statement of investment bank Investec last week, indicating it had received suggestions of advanced talks between the parties regarding Vivendi Univesal Games, also supported the information. According to Reuters, sources close to Vivendi have repeatedly said the company planned to either sell or float all or part of the games division although no deal was imminent. A source said Vivendi is considering selling the games business, as it continues to reduce debt, since the transaction would not face the same complications as a spin-off of its other U.S. entertainment assets. Vivendi Universal Entertainment's Barry Diller and Vivendi Chief Executive Jean-Rene Fourtou, meanwhile, are reportedly holding separate talks regarding the assets. Central in the negotiations is Mr. Diller's claim for US$2 billion needed to cover tax liabilities in case the sell-off is pursued. Analysts say the deal could lessen Microsoft's losses from the Xbox video game console in half, this year. A spokeswoman for Microsoft was not immediately available for comment on Wednesday, while a spokeswoman for Vivendi Universal Games declined comment. According to banking sources, another potential bidder for the asset is said to be no. 1 video game publisher Electronic Arts Inc. But they said Vivendi has not yet hired an investment bank to advise on the sale. CONTACT: VIVENDI UNIVERSAL Headquarters 42 Avenue de Friedland 75380 Paris Cedex 08 France Phone: +33 1 71 71 10 00 Fax: +33 1 71 71 11 79 Contact: Investor Relations E-mail: investor-relations@groupvu.com Daniel Scolan, Executive VP Investor Relations Phone: +33.1.71.71.12.33 E-mail: daniel.scolan@groupvu.com Laurence DANIEL IR Director, Europe Phone: +33.1.71.71.12.33 E-mail: laurence.daniel@groupvu.com Edouard LASSALLE Associate Director, Europe E-mail: edouard.lassalle@groupvu.com MICROSOFT CORP. 1 Microsoft Way Redmond, WA 98052-6399 Phone: 425-882-8080 Fax: 425-936-7329 Home Page: http://www.microsoft.com William H. (Bill) Gates III, Chairman Steven A. Ballmer, CEO and Director ============= G E R M A N Y ============= ALLIANZ AG: Confident of Favorable Ruling From Jury --------------------------------------------------- Allianz AG is confident the jury will conclude that the Sept. 11, 2001 terrorist attack on the World Trade Center --for which it has paid EUR1.5 billion--was a single incident. The company had asked the U.S. federal court to classify the attack as one event, so that it would no longer have to increase its liabilities. But the court rejected the company's bid, at the same time saying that final judgment lies with a jury. "We are also confident that the jury will apply the plain and ordinary meaning of the definition of occurrence included in the Allianz Insurance Company policy and conclude that the terrorist attack of 9/11 was a single occurrence," an Allianz spokesman said. He also said: "We are pleased that Judge Martin held, contrary to the argument of (WTC leaseholder) Silverstein Properties Inc, that the policy issued by the Allianz Insurance Company is the valid and binding contract of insurance governing AIC's coverage of World Trade Center." Allianz posted a EUR2.5-billion third quarter loss. BAYER AG: Standard & Poor's Revises Outlook to Negative ------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Bayer AG and related entities to negative from stable. It also affirmed its ratings on Bayer and related entities, including its 'A+' long-term and 'A-1' short-term corporate credit ratings on the group. Standard & Poor's credit analyst and director Christian Wenk said the outlook revision reflects the challenge of achieving a financial posture commensurate with the current ratings. This is due to a continued global economic downturn in Bayer's chemicals and polymers units, as well as the increased number of legal challenges it is facing over its cholesterol-lowering agent Baycol, Mr. Wenk said. He added, "As a consequence of difficult trading conditions, sales from continuing operations and gross cash flow in the first nine months of 2002 were down and, therefore, debt protection measures in 2002 will have fallen short of previous estimates." The rating agency acknowledges, though, the positive points on the group's debt restructuring program, following the acquisition of Aventis Crop Science for EUR7.25 billion (US$7.87 billion) in early 2002. It says the result is in line with expectations of about EUR10 billion debts at the end of 2002. While the ratings continue to reflect the group's leading global positions in crop protection and polymers, they are still constrained by Bayer's challenge to find an adequate partner for its pharmaceuticals unit. Standard & Poor's noted that Bayer has indicated that it is now more willing to be flexible in its approach to strategic alternatives for its pharmaceuticals unit. The rating agency believes a sale of one of its major units such as its pharmaceuticals business, for example, could virtually eliminate its debt. In addition, the ratings reflect the group's good diversity. Mr. Wenk further commented: "The negative outlook reflects the possibility of a review of the ratings if Bayer does not clearly demonstrate in the near term how it can achieve funds from operations to net debt of 50% on a pension-adjusted basis by 2004 in a challenging economic environment." DEUTSCHE TELEKOM: Enters Nordic Broadband Market Via Carrier 1 -------------------------------------------------------------- Deutsche Telekom, considered as one of Europe's telecom giant, has entered into the Nordic broadband market by acquiring Carrier 1 Nordic, the broadband provider that went bankrupt a year ago. The entry is seen to heighten competition in a market previously dominated only by Telenor/Utfors and Telia International Carrier. Norwegian state-owned telco Telenor acquired Utfors two months ago. Carrier 1 sprang from the collapsed joint venture, Unisource Carrier Service. Unisource's board of directors bought the company, launched it on Nasdaq, and carried on the partnership's strategy of building a broadband network across the whole of Europe. Deutsche Telekom is the no.1 telecom company in Europe and one of the largest in the world, behind NTT and AT&T. Deutsche Telekom is still Germany's no.1 fixed-line phone operator, with about 57 million access lines. CONTACT: DEUTSCHE TELEKOM Friedrich-Ebert-Allee 140 53113 Bonn, Germany Phone: +49-228-181-0 Fax: +49-228-181-8872 Home Page: http://www.telekom.de Contact: Hans-Dietrich Winkhaus, Chairman, Supervisory Board Kai-Uwe Ricke, Chairman, Management Board, and CEO ============= H U N G A R Y ============= AJKA CRYSTAL: Axes Jobs, Confirms Threat of Closure --------------------------------------------------- Ajka Crystal, a company which has been producing fine crystal since 1878, will lay off several hundred of its 1,340 employees over the coming weeks. Chief executive officer Zoltan Katzer blamed the dismissals on plummeting revenues and profit of the company, which is under the umbrella of the Fotex group. Katzer added that the schedule of layoffs will depend on how many orders the company will be able to secure at international trade fairs, although the threat of a potential closure is real. According to the Budapest Business Journal, Ajka Crystal exports over 90% of its production. It was badly hit by the economic slowdown in the US, as well as the strengthening forint. Profits have dropped from over FT800 million in 200 and FT50 million in 2002. Ajka Crystal has been keeping the highest level of artistic and up-to-date technical production since it started. They preserve the formal ancient technical and decorative traditions, with that aim to satisfy the extensive wide variety of worldwide demands. CONTACT: AJKA CRYSTAL LTD. Budapest 1026, Palatinusz u. 1. Phone: (361)-326-1522 Fax: (361)-326-0756 Homepage: http://www.ajka-crystal.hu/ ============= I R E L A N D ============= ELAN CORP: Announces Recovery Plan Update and Lawsuit Settlement ---------------------------------------------------------------- Elan Corporation, plc announced Thursday an update of its recovery plan and the settlement of its previously announced lawsuit with Pharma Operating Ltd., a wholly-owned subsidiary of Pharma Marketing Ltd. Highlights - Sale of primary care franchise for gross consideration of US$850 million - Settlement of Pharma Marketing lawsuit - Repurchase of 19% of Elan's Liquid Yield Option Notes at discount of 24% - Fourth quarter, 2002 net mainly non-cash other charges not to exceed US$540 million - Cash balances in excess of US$1 billion - Headcount reduction and asset divestitures ahead of target - Recovery Plan Update - Elan announced the sale of its primary care franchise to King Pharmaceuticals, Inc. for gross consideration of US$850 million. During the fourth quarter of 2002, Elan repurchased approximately 19% of the LYONs at a cost of approximately US$150 million and at a discount of 24% to accreted value at December, 2003. After taking account of this repurchase, the accreted value of the LYONs included in the financial statements was US$792 million at December 31, 2002. Elan expects to record other mainly non-cash charges not to exceed US$540 million for the fourth quarter of 2002, net of gains of approximately US$225 million. Approximately US$320 million of the charges relate to the write-down of investments including approximately US$60 million in relation to EPIL II and EPIL III. The balance primarily relates to the write-down of intangible assets and the impact of the implementation of Elan's recovery plan. This charge is before the expected pre-tax gain of approximately US$370 million on the sale of the primary care franchise, and any write-off related to the purchase of the SonataT royalty rights from Pharma Operating which could amount to up to US$225 million. Cash balances at December 31, 2002 were in excess of US$1 billion. After giving effect to the sale of the primary care franchise and the purchase of the royalty rights to Sonata and PrialtT from Pharma Operating, on a pro-forma basis the cash balance is US$1.4 billion. After including the divestment of the primary care franchise, Elan has achieved its target of raising US$1.5 billion from its asset divestiture program a year ahead of schedule. Elan currently has approximately 3,300 employees, 1,400 less than in July 2002 (including 400 fewer employees that were part of completed asset divestitures) and is ahead of target. After the completion of the sale of the primary care franchise, employee numbers will fall below 2,900. Settlement of Pharma Marketing Lawsuit Elan and Pharma Marketing have agreed that, contingent on closing of the sale of Sonata, Elan will, on the closing date, pay Pharma Operating US$225 million (less royalty payments on all related products paid or due to Pharma Operating from January 1, 2003 to the closing of the sale) to acquire the Pharma Operating royalty rights with respect to Sonata and Prialt. In addition, Elan will have the option to purchase Pharma Operating's royalty rights on the ZonegranT , FrovaT and ZanaflexT products until January 3, 2005, an extension from the earlier date of June 30, 2003. The current purchase option price has been reduced to US$110 million plus 15% per annum from the earlier date of the Sonata sale closing or July 1, 2003, less royalty payments made for periods after the Sonata sale closing. Under the terms of the settlement agreement, Pharma Operating will dismiss, without prejudice, the litigation between the parties filed in the Supreme Court of the State of New York. As previously announced, Elan will release its fourth quarter and full-year 2002 results on February 5, 2003. 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: ELAN CORPORATION PLC Emer Reynolds, Vice President, Investor Relations Lincoln House, Lincoln Place Dublin 2, Ireland Phone: +353-1-709-4000 +353-1-709-4108 ELAN CORP: Announces Sale of Primary Care Franchise King -------------------------------------------------------- - Elan to receive a cash payment of approximately US$650 million on closing including an estimated US$40 million for inventory King to assume Elan's product related payments for Sonata of approximately US$240 million. - Elan may receive up to an additional US$60 million in net milestone payments relating to the development of enhanced formulations of Sonata. - As separately announced Thursday, Elan has acquired from Pharma Operating Ltd. royalty rights to Sonata Elan Corporation, plc announced Thursday it has agreed to sell its primary care franchise (principally its rights to SonataT(zaleplon) and SkelaxinT(metaxalone) and related rights to enhanced formulations of these products) to King Pharmaceuticals, Inc. (NYSE: KG). Under the terms of the agreement, which is subject to Elan's shareholder approval, Elan will receive a cash payment, upon closing, of approximately US$650 million, including an estimated US$40 million payment for Sonata and Skelaxin inventory. King will acquire the inventory from Elan at closing and consequently the US$40 million estimated value may be subject to change. King will assume Elan's product related payments for Sonata of approximately US$240 million. In addition, Elan may earn net milestone payments of up to US$60 million contingent on the achievement of clinical and regulatory milestones relating to the development of enhanced formulations of Sonata. Elan expects to record a pre-tax gain of approximately US$370 million from this transaction, before taking account of any charge related to the purchase of royalty rights attaching to Sonata from Pharma Operating Ltd., a wholly-owned subsidiary of Pharma Marketing Ltd. The Transaction Elan's primary care franchise comprises the U.S. and Puerto Rican rights to Sonata, U.S. and Puerto Rican rights to Skelaxin along with related assets and liabilities, rights to the enhanced formulations of Sonata and Skelaxin, and the U.S. primary care sales team of over 400 employees. Consistent with previous divestment transactions, the primary care employees will be offered the opportunity to continue to contribute to the success of Skelaxin and Sonata as employees of King. As part of the transaction, King will acquire certain intellectual property, regulatory and other assets relating to Sonata directly from Wyeth. These cash proceeds and assumed product related liabilities will bring the total consideration realised and to be realised pursuant to previously announced transactions through the asset divestiture program to over US$1.6 billion. Dr. Garo Armen, chairman of Elan, said "With the sale of our primary care franchise we have exceeded our target of raising US$1.5 billion from the divestiture program, a year ahead of schedule." "This completes the first stage of Elan's recovery plan and allows us to concentrate on our core development pipeline which we expect to start launching in 2004. We will continue to divest non-core businesses and assets to further improve our liquidity; in addition we continue to reduce our costs, streamline our balance sheet, manage our commercial operations and prioritize our pipeline." Dr. Armen continued, "The sale of these assets is consistent with our strategy to divest assets outside of Elan's core therapeutic areas. While the primary care franchise is no longer core to our business, we are pleased to have reached this agreement with King, which is in a strong position to leverage the talents of our primary care team and product portfolio." Drug Delivery Programs Under the terms of the agreement, Elan will also continue its development programs for enhanced formulations of Sonata and Skelaxin using its proprietary drug delivery technologies on behalf of King. This development work will be performed pursuant to formulation development agreements with King. Under the Sonata formulation development agreement, Elan will receive development fees and, if successful, may receive net milestone payments of up to US$60 million (comprising up to US$85 million in clinical, regulatory and sales milestones less up to US$25 million in milestones that Elan is obligated to pay a third party). Elan will manufacture the products under a royalty- bearing license. Elan will also retain the commercialization rights to enhanced formulations utilizing its technology outside the U.S. for both products. Sonata For the first nine-months of 2002, Elan recorded net revenue and gross profit for Sonata of US$72.0 million and US$61.8 million, respectively. The carrying value of the Sonata intangible asset as at December 31, 2002, amounted to US$165.5 million, excluding contingent and potential payments of US$231.2 million. In addition at December 31, 2002, goodwill associated with the primary care franchise amounted to approximately US$40 million. Sonata is a nonbenzodiazepine hypnotic for the short-term treatment of insomnia. Sonata was originally launched by Wyeth in 1999. On December 19, 2001, Elan entered into a strategic alliance with Wyeth pursuant to which it assumed responsibility for the marketing, sales and distribution of Sonata in the United States. Skelaxin For the first nine-months of 2002, Elan recorded net revenue and gross profit for Skelaxin of US$125.5 million and US$103.7 million, respectively. The carrying value of the Skelaxin intangible asset as at December 31, 2002 amounted to US$30.6 million. Skelaxin is approved by the U.S. Food and Drug Administration as an adjunctive treatment for the relief of discomfort associated with acute, painful musculoskeletal conditions. Elan originally acquired Skelaxin through its acquisition of GWC Health, Inc. in 1998. Shareholder Approval To comply with the listing requirements of the Irish Stock Exchange and the U.K. Listing Authority, the transaction is subject to the approval of Elan's shareholders at a special meeting. A circular, setting out in more detail the terms of the proposed transaction and the resolution to be put at the special meeting will be sent to shareholders as soon as practicable. The transaction is also subject to regulatory approvals, third party consents and other customary conditions, and is expected to close before the end of April 2003. Elan was advised on this transaction by Morgan Stanley. About Elan 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: ELAN CORPORATION PLC Emer Reynolds, Vice President, Investor Relations Lincoln House, Lincoln Place Dublin 2, Ireland Phone: +353-1-709-4000 +353-1-709-4108 ===================== N E T H E R L A N D S ===================== GETRONICS NV: Extends Invitation to Tender Convertible Bonds ------------------------------------------------------------ On January 29, 2003, 24.5% of the combined accrued value of the two convertible bonds was tendered for exchange. Getronics extends the invitation to tender. Getronics will hold discussions with the holders of the company's securities, and expects to announce a revised offer on or before February 5, 2003. On 29 January 2003, 24.5% of the combined accrued value of Getronics' two outstanding subordinated convertible bonds due April 2004 and March 2005 (together, the Existing Bonds) had been tendered for exchange. The threshold of 57.5% set out in the invitation to tender, announced on January 10, 2003, has not been met, and the Company has therefore decided to extend the acceptance period. Getronics will hold discussions with the holders of its securities, and expects to announce revised terms for the invitation to tender, based on these discussions, on or before 5 February 2003. Holders of the Existing Bonds who have already tendered their offers to exchange their Existing Bonds may withdraw their original offer to exchange. About Getronics With approximately 25,000 employees in over 30 countries, Getronics is one of the world's leading providers of vendor independent solutions and services to professional users of Information and Communication Technology (ICT). Through consulting, integrating, implementing and managing Infrastructure Solutions and Business Solutions, Getronics helps many of the world's largest global and local organizations to maximize the value of their technology investment and improve interaction with their customers. Getronics' headquarters are in Amsterdam, with regional head offices in Boston and Singapore. Getronics' shares are traded on Euronext Amsterdam. CONTACT: GETRONICS NV Investor Relations Phone: +31 20 586 1964 Fax: +31 20 586 1455 E-mail: investor.relations@getronics.com JOMED NV: Short-term Financing Negotiations Continuing ------------------------------------------------------ JOMED N.V., a medical technology company incorporated in the Netherlands and listed on the SWX Swiss Exchange, is continuing negotiations for a short-term financing for the forthcoming with a undisclosed third party. This includes also a stand-still- agreement with the commercial banks for two months. Announcement of Administrator Last Thursday the parent company, which operates under Dutch law, filed for suspension of payments. For this purpose, two administrators, Rutger Schimmelpenninck and Matthieu Van Sint Truiden, were appointed. Both administrators work for the law firm Houthoff Buruma in Amsterdam and act on behalf of the creditors of the company. As long as JOMED N.V. is protected by the moratorium, the administrators and the Management team jointly head the company. Preliminary KPMG-results KPMG presented first results of their investigation of the accounting policies of JOMED N.V. during a Supervisory Board meeting. The accounting irregularities included the reporting of revenues without underlying transactions (false invoicing), the accounting of revenues which led to a transaction only at a later stage (pre-invoicing) and the incorrect reporting of sale-and- lease-back agreements as revenues. The cornerstones of restated annual financial statement 2001, as well as the corrected figures for the quarterly reporting in 2002, are expected to be known later this week. KPMG found that the accounting irregularities occurred intentionally. Based on current knowledge, four employees of JOMED have been involved in the erroneous bookings. KPMG states that no indication exists for the time being than any member of the Supervisory Board was involved in the above- mentioned accounting irregularities. In addition, no member of the Supervisory Board is known to have been involved in any insider trading. CONTACT: JOMED N.V. Jorgen Peterson, Acting CEO Phone: +46 42 490 6014 KLM ROYAL: Settles Suit With Alitalia, Pays EUR175 Million ---------------------------------------------------------- KLM Royal Dutch Airlines NV will settle the suit over its collapsed joint venture with Alitalia SpA by paying a maximum of EUR175 million. KLM spokesman Jan Christian Hellendoorn said the payment will be made on or before the set date deadline of January 31, which Alitalia set but did not confirm with KLM. The dispute involves a demand from Alitalia for the recovery of a EUR293 million costs it made in the joint venture, and a counterclaim launched by KLM shortly thereafter for the EUR100 million it gave to Alitalia to develop its Milan Malpensa hub. Last month, an arbitration tribunal ruled that KLM must pay Alitalia a net EUR150 million plus interest for settling their obligations after ending the joint venture launched 2 years ago. Under the arbitration, KLM has until the end of February to pay the full sum due. An earlier attempt by KLM to negotiate payment in kind with Alitalia, through possibly providing services at Schiphol airport to the Italian airline, was rejected by the Alitalia group, Mr. Hellendoorn said. All outstanding obligations between the carriers will be settled after the payment is made. CONTACT: KLM ROYAL Contact: Investor Relations Home Page: http://investorrelations.klm.com Phone: 31 20 649 3099 =========== N O R W A Y =========== PETROLEUM GEO-SERVICES: Pays 6-5/8% and 7-1/8% Bond Interest ------------------------------------------------------------ Petroleum Geo-Services ASA (NYSE:PGO) (Oslo:PGS) paid interest on its 6-5/8% Senior Notes due 2008 and its 7-1/8% Senior Notes due 2028. The Company previously announced on December 27, 2002 that it would use the 30 day grace period for payment of interest due December 30, 2002 on these notes. Under the terms of the notes, no default has occurred as the interest payment was made within 30 days of the due date. As reported earlier this month, Fitch Ratings downgraded Petroleum Geo-Services ASA senior unsecured debt rating to 'C' from 'CCC' and downgraded PGO's trust preferred securities to 'C' from 'CCC-'. The ratings have been placed on Ratings Watch Negative. ========= S P A I N ========= BBVA PRIVANZA: BBVA Decides to Wound Up Unit Without Liquidation ---------------------------------------------------------------- BBVA announces that the Extraordinary and Universal Shareholders Meeting of BBVA Privanza Banco, S.A. held Wednesday, resolved the total assignment of the assets and liabilities of the company to the single partner Banco Bilbao Vizcaya Argentaria, S.A. after which said company is to be wound up without liquidation. Likewise, BBVA gives notice that in the meeting of its Board of Directors held yesterday resolved to accept of said assignment of the assets and liabilities of BBVA Privanza Banco, S.A. according the dissolution balance sheet closing December 31, 2002. =========== S W E D E N =========== LM ERICSSON: Injects EUR 300 Million to Sony Joint Venture ---------------------------------------------------------- Sony and Ericsson announced that the two companies have decided to make an additional capital injection to their 50:50 jointly owned Sony Ericsson Mobile Communications, AB. In order to strengthen SEMC's capital structure and support business expansion, Sony and Ericsson have decided that during the quarter ending March 31, 2003, each company will contribute Eur 150 million to SEMC. This capital injection represents the continuing commitment of Sony and Ericsson to the joint venture. SEMC estimates that approximately 115 million units were sold (sell-through) in the total market during the fourth quarter and approximately 395 million during the full year of 2002, compared with approximately 390 million in 2001. SEMC forecasts that total market sales will be approximately 435 million units during 2003, representing year-on-year growth of about 10%. Sony and Ericsson today also announced SEMC's fourth quarter results ended December 31, 2002. Units shipped in the quarter reached 7.1 million, which is 4% higher year-on-year and 42% higher compared to the third quarter. Net sales for the quarter were Eur 1,235 million, representing year-on-year and sequential increases of 18% and 42%, respectively. Income before taxes in the quarter was Eur -77 million and net income was Eur -69 million, which represent year-on-year improvements of Eur 75 million and Eur 70 million, respectively. Note: As a 50:50 joint venture, 50% of SEMC's results are reported by Sony and Ericsson as a joint venture accounted for under the equity method. CONTACT: LM ERICSSON Investors/Analysts Ericsson Investor Relations: Gary Pinkham, Vice President Phone: +46(0)8-719-0000 SONY Investor Relations: Takeshi Sudo, General Manager (Tokyo) Phone: +81(0)3-5448-2180; or Chris Hohman, Senior Manager (London) Phone: +44(0)20-7426-8739 SONY CORPORATION 6-7-35, Kitashinagawa Shinagawa-ku, Tokyo, 141-0001 Japan ===================== S W I T Z E R L A N D ===================== BANQUE CANTONAL: Sues Senior Managers Over Losses ------------------------------------------------- BCV learned Wednesday the findings of the internal investigation into the causes of losses and their late recognition in BCV's balance sheets between 1996 and 2000. The investigation, conducted by Mr Paolo Bernasconi, independent expert appointed by the Bank and the Vaud Cantonal Government (Conseil d'Etat vaudois), also sought to establish responsibility for the situation. The allegations were sufficiently serious for BCV to lodge a criminal complaint, and the affair is now pending before the Canton's Investigating Magistrate. The report's conclusions and related documents were sent to the Swiss Federal Banking Commission (Commission federale des Banques) Wednesday. Most members of the Bank's governing bodies likely to have been implicated in this affair are no longer employed by BCV. As for those still with the Bank, given the seriousness of the allegations and the fact that all members of the Executive Board were aware of the situation at the time (1996-2000), the Board of Directors has acted swiftly to restore a climate of mutual confidence and trust within the Bank. Several senior managers have therefore been given immediate dismissal for justified cause: Mr Pierre Fischer, Vice-President of the Executive Board; Mr Ralph Ziegler, Member of the Executive Board; Mr Bernard Kraehenbuhl, Chief Compliance Officer and ex- Member of the Executive Board. The Board of Directors has also accepted the resignation of Mr Jean Pierre Launaz, the Bank's Secretary General. All necessary measures have been taken to prevent any disruption to the Bank's business operations. Mr. Bernasconi's investigation was limited to the question of possible wrongdoings relating to losses sustained by BCV and delays in recognizing them in the Bank's accounts between 1996 and 2000. However, since this investigation is only a preliminary enquiry, its results provide no indications as to the outcome of the judicial investigation, which will be opened following the criminal complaint BCV filed yesterday. In addition, the findings of the preliminary enquiry allow no conclusions to be drawn as to whether any criminal liability can be imputed in the case. Mr. Bernasconi's internal investigation and the measures taken by the Board have no bearing on either the Bank's financial stability or its upcoming capital increase. The cantonal government continues to stand solidly behind the capital increase, which is to be put before the EGM for formal approval on February 5, 2003. CONTACT: BCV ASSET MANAGEMENT BANQUE CANTONALE VAUDOISE Contact: Michel Aubry Place Saint-Francois 14 P.O. Box 300 CH - 1001 Lausanne Phone: (41 21) 212 25 48 Fax: (41 21) 212 25 79 E-mail: info@bcvam.ch Homepage: www.bcvam.ch CREDIT SUISSE: E-mail Suggesting Cover-Up Now Under Scrutiny ------------------------------------------------------------ An e-mail that appears to relay the order of investment bankers at Credit Suisse First Boston to clean out certain controversial documents relating to the tech sector IPOs is under scrutiny by regulators. The e-mail, which included a reply endorsing the advice from star CSFB technology investment banker Frank Quattrone, reminds the firm's technology bankers to purge certain e-mails and other documents, notably those linked with tech sector IPOs, says the Wall Street Journal. The move is seen as an effort in the part of the company to prepare itself for possible investor lawsuits over IPOs whose stock prices stumbled, people familiar with the matter observed. The report observed that the message was sent just before the first news reports about the regulators' interest in CSFB. The communication, signed by Bill Brady, one of Quattrone's two top deputies, and two other CSFB bankers, said: "With the recent tumble in stock prices, and many deals now trading below issue price, the securities litigation bar is expected to (make) an all-out assault on broken tech IPOs." But CSFB officials claimed the firm sent additional e-mails on December 6 and 7 advising employees to ignore the order. On Credit Suisse Group's Comments on its preliminary financial results this month it says the group had decided to take a pre- tax charge in the fourth quarter of 2002 of USD 450 million (CHF 702 million), or USD 293 million (CHF 456 million) after tax, for Credit Suisse First Boston's private litigation involving research analyst independence, certain IPO allocation practices, Enron and other related litigation. This is in addition to the pre-tax charge of USD 150 million (CHF 234 million), or USD 124 million (CHF 193 million) after tax, for the previously announced agreement in principle with various US regulators involving research analyst independence and the allocation of IPO shares to executive officers. The Group expected a net loss of approximately CHF 1.0 billion for the fourth quarter and a net loss of approximately CHF 3.4 billion for the full year 2002. CONTACT: CREDIT SUISSE ASSET MANAGEMENT Sandrine Mehr Corporate Communications Phone: +41 1 333 4248 =========================== U N I T E D K I N G D O M =========================== ABBEY NATIONAL: Forced to Subsidize Scottish Life Assurance ----------------------------------------------------------- Abbey National revealed it injected a certain amount into Scottish Provident earlier this month to ensure it can meet policyholder payouts and avoid solvency problems. Last year the bank also supported the Scottish life assurance business with two cash injections worth about GBP575 million. The move fueled speculations that the mortgage bank may be forced to cut its dividend by as much as 50% later this year to cover the payments, says the Scotsman. "Tough market conditions and weakening equity values" prompted the cash injection, a spokeswoman for Abbey said. But she assured that the move was in line with the group policy. She further explained: "Capital is typically injected into the life businesses to support new business or to ensure solvency ratios are maintained when the FTSE falls below certain levels." Scottish Provident and Scottish Mutual have a combined workforce of about 3,440 spread across Scotland. More than 2,000 employees are based in Glasgow and roughly 1,000 in Edinburgh. Abbey warned of huge profit warning last June due to losses in wholesale banking. In its trading update in November, it also warned that provisions, goodwill write-downs and changes in accounting for embedded value in its life fund would lead to a full-year loss. The warnings fueled speculation that a bad result is in for its 2002 figures. AMEY PLC: Highways Agency Awards Amey Area 13 Contract ---------------------------------------------------- Amey plc and its partner Mouchel have been awarded the Area 13 Contract (Cumbria and North Lancashire) by the Highways Agency. The contract is projected to be worth GBP150 million based on an annual accepted value of around GBP30 million and will run for five years, commencing 1 July 2003 with an option to extend for a further two years. The optional two-year extension would increase the value to around GBP210 million. This award, which follows recent wins in respect of Highways Areas 1, 6, 9 and 10, means that AmeyMouchel, in which Amey holds a 75% interest, has achieved a 100% success rate in the recent bidding rounds for HA management and maintenance contracts. All these contracts have been awarded on the basis of a rigorous quality and price evaluation with a significant 75/25 weighting towards quality. Mel Ewell, Chief Operating Officer of Amey, said: "We are delighted that the Highways Agency has awarded us another prestigious Managing Agent Contractor contract. Our success rate reflects the synergy of this joint venture and our commitment to the delivery of quality service structures based on the calibre of our resource and our understanding of the Highways Agency's objectives." Highways Agency Area Manager Bob Baldwin said: "I am delighted to be able to continue the successful working relationship that the Highways Agency has developed with AmeyMouchel over the past four years." Area 13's network provides a strategically important service to the North West and is the key highway link between England and Scotland. The Area comprises 660 km (2200 lane km) of road, including major routes such as the M6, M55, A74, A66, A65, A59, A585 and the A590. CONTACT: AMEY PLC Jane Beckley, Group Communications, Phone: 01252 533809 Mobile: 07788 580 591 Anthony Cardew/Nadja Vetter, CardewChancery Phone: 020 7930 0777 Mobile: 07941 340436 BAE SYSTEMS: Ministry of Defense Selects BAE Prime Contractor ------------------------------------------------------------ The U.K. Ministry of Defence has chosen BAE SYSTEMS as the Prime Contractor for the design, development, construction, systems integration and support of the U.K. Royal Navy's two new aircraft carriers, as announced by the Secretary of State for Defense, Geoff Hoon. These two new flagships will be the largest warships ever ordered and ever constructed in the United Kingdom. This will also be the largest single naval procurement, production and support program, which the U.K. has seen in more than 50 years, with an overall government budget of Ao10 billion through a service life of up to 50 years. As a result of the size and complexity of the program, BAE SYSTEMS'' approach throughout the competition has been based on collaboration with key partners in U.K. and U.S. industry. The MOD has chosen the Thales team's carrier concept design, and BAE SYSTEMS welcomes Thales as a key supplier, who will bring many strengths to the program. The approach the MOD is taking in the next stage will capitalize on the significant work done thus far in the competition by both teams. BAE SYSTEMS, Thales and the MOD will now engage in discussions to determine the detail for the structure of the proposed alliance. In parallel, that team will ensure that critical elements of the design work continue to move forward, so that the program remains on schedule. Chris Geoghegan, Chief Operating Officer, BAE SYSTEMS, said "We are delighted that BAE SYSTEMS has been chosen to be Prime Contractor for Britain''s biggest ever warship contract, the next generation Carrier. We will be taking responsibility for the design and integration of the highly complex systems, as well as for the construction and support of a vital British naval system expected to be in service for the next 50 years." "Our task now is to work with the MoD to bring together the best industrial capability Britain can offer. We look forward to working with key suppliers, including Thales, to deliver to the Royal Navy a world class sea system, vital for the protection of our national interest." Nigel Stewart, BAE SYSTEMS Future Carrier Managing Director, said "Our collaborative approach throughout has been consistent, as a project of this size and complexity can only succeed through partnership and collaboration. We have secured robust relationships with industrial partners. We are looking forward to building on our current relationships with Thales and all the other supplier companies, continuing the excellent working relationship we have with the MOD and the Royal Navy customer on this very important program. Key to this team's success will be devising a successful approach to the rest of this program, and the excellence of the major suppliers chosen. "The MOD cited our clear understanding of the programme and our excellent relationship with our U.K. shipbuilding partners as key influencing factors in their decision. We are going to build on those, and the new team's expertise, to form up around the MOD and get on with building these formidable warships for the Royal Navy." BAE SYSTEMS: Aircraft Contract Fails to Resolve Ratings ------------------------------------------------------- Fitch Ratings maintained BAE's Senior Unsecured rating of 'A-' and the Short-term rating of 'F1' on Rating Watch Negative despite the company's acquisition of a lead role in the GBP3 billion UK aircraft carrier contract. While recognizing the positive effects of the contract in the long term, the agency continues to have concerns about the cost overruns on the Nimrod and Astute contracts announced in December 2002 and the impact that these will have on the company's cash flow generation capacity. The rating agency also expresses concern in that although BAE was named as the prime contractor, Thales has secured a major role as the carriers will be built according to their proposed design. It says, "While such collaboration is not unusual for projects of this magnitude, Fitch expects the compromise to present challenges in terms of avoiding cost overruns and delays." The ratings remain on Rating Watch and will only be resolved following the announcement of BAE's fiscal year 2002 preliminary results on February 20, 2003. Fitch says the short-term rating is the most likely to be affected by a resolution of the Watch placement. HARD ROCK: Chief Executive Resigns From Restaurant Chain -------------------------------------------------------- The chief executive of struggling Hard Rock restaurant chain, Peter Beaudrault, resigned from his post almost two years after succeeding into the position. Mr. Beaudrault stepped down from the U.S.-themed chain after sales in the shops plunged in the wake of the September 11 attacks. Sales of souvenirs such as T-shirts and caps slowed down, particularly in Rome and Paris. Orlando-baed Hard Rock has around 110 restaurants worldwide, with seven sites in the U.K., including Leeds, which opened last month. Morton and Isaac Tigrett opened the first Hard Rock Cafe in London in 1971. It serves typical American food, as well as rock music memorabilia and plenty of Hard Rock branded merchandise. Its collection of more than 60,000 items includes clothing, guitars, and photos. Hard Rock also operates a record label with Rhino Records, produces live music events, and owns four resort hotels and three casinos. Hard Rock's operating profits fell nearly GBP10 million lower to GBP14 million in the six months to June 30. Parent company, leisure group Rank, said chief executive Mike Smith would take temporary charge. CONTACT: HARD ROCK CAFE 6100 Old Park Ln. Orlando, FL 32835 Phone: 407-445-7625 Fax: 407-445-9709 Home Page: http://www.hardrock.com Todd Lindsey, Vice President-Finance LAMONT TEXTILES: To Petition the Court for Administrator -------------------------------------------------------- Lamont Holdings subsidiary, Lamont Textiles Ltd, has filed for administration, and has resolved to petition the Court for the appointment of an Administrator "to provide protection" for its business while it seeks to restructure itself. The textiles and fabrics group blamed a shortage of working capital arising from an inability to complete within the anticipated timescale an agreed disposal of BFF Nonwovens Division, and an ongoing delay in the receipt of non-trading cash receipts from an earlier disposal. In a statement to the City, the group said: "The directors are of the opinion that, subject to agreement with its funders, Lamont has a viable future." Although the firm declined to comment further, it said the appointment of an administrator would "protect the activities of both divisions" and that it was in the process of consulting with its bankers and would make a further announcement in due course. Earlier, 265 jobs were under threat in Ballygowan, Newtownards, and Killinchy, following a decision by the textiles group Lamont Holdings to put its carpet and yarn businesses BFF up for sale because of overcapacity in the European market, and the strength of sterling. Lamont completed a GBP28 million restructuring program last summer, but it failed to bring the company back to profitability. An interim pre-tax losses of GBP569,000 for the six months to June 30, against losses of GBP548,000 the year before was reported in September. Following the restructuring, Bill Gleave stepped down from his role as chief executive but continued his involvement in the company as non-executive director. Peter Land and David Lamb, the heads of the two subsidiaries, replaced him as group managing directors. The group, which had debts of EUR16 million last June, also runs Rochdale-based fabric printing business Alexander Drew. CONTACT: LAMONT HOLDINGS PLC Lamont Ho Purdy's La Belfast BT8 6AX Phone: (028) 9049 1111 Fax: (028) 9049 1007 LIFE-ENERGIES: Probe Results in Wind-Up of Company in High Court ---------------------------------------------------------------- Salisbury-based Life-Energies International plc was wound up in the High Court following a DTI investigation on the company's financing in relation to that of another firm engaged in the same line of business. The financing for Life-Energies International and Life-Energies Ltd, which both produce bio-energetic devices in the field of alternative medicine and provide training in their use, has been raised by illegal or fraudulent, says Creditman.biz. A director of the companies, Philip Barker, also reportedly admitted the scheme they used was unlawful. Some shares in Life-Energies International were sold on a "buy one get one free basis," while others were given away to those who bought products from the companies, the report says. Some trade debts had also been paid by means of giving away shares in PLC. The management had hoped for a flotation on the American NASDAQ market of Life-Energies International, but people who subscribed to the shares had been led to believe that the flotation was certain to take place. The money received for any PLC shares sold, at least GBP116,750, was made available to Ltd without the other directors of PLC approving such a loan. In June 2001, Life-Energies International made it appear it is taking over Life-Energies Ltd. by acquiring all shares of the latter for 3 million GBP1 shares in Life-Energies International. Mr. Barker valued the takeover at GBP3 million, calling it a "Rembrandt valuation." But the price tag did not consider that Life-Energies International was both unprofitable and insolvent and the figure was subject to an outside review. According to the report, the takeover largely ignored the requirements of the Companies Act, such as the proper advise to Life-Energies International shareholders. CONTACT: LIFE-ENERGIES INTERNATIONAL PLC The Manor House, 27 South Street Wilton, Wiltshire, SP2 0JU OFFICIAL RECEIVER The Insolvency Service Public Interest Unit PO Box 203 21 Bloomsbury Street London WC1B 3SS Phone: 020 7637 6491 Fax: 020 7637 6390 E-mail: piu.or@insolvency.gsi.gov.uk Public Enquiries: 020-7215 5000 MARCONI PLC: Notice of Proposed Schemes of Arrangement ------------------------------------------------------ On September 19, 2002 in an advertisement placed in The Asian Wallstreet Journal to assist with the finalization of the proposed UK schemes of arrangement of each of Marconi Plc and Marconi Corporation plc, all persons having claims against Plc and/or Corporation, whether actual or contingent, were invited to submit details of their claims to KPMG LLP (Richard Heis and Philip Wallace), 8 Salisbury Square, London EC4Y 8BB, United Kingdom. If you have a claim against Plc and/or Corporation and you have not already provided KPMG with details of your claim, you should do so without delay. As it is currently envisaged that creditors who have established their claims by the effective date of the schemes of arrangement will participate in an initial distribution, we would encourage creditors who have not already done so to submit details of their claims to KPMG without delay. Your claim should state whether it is against Plc and/or Corporation, the amount and basis on which you are claiming (including details of guarantee(s), security and/or interest entitlements) and your contact details. You should also forward to KPMG LLP any documentation, which you believe supports your claim against either Plc or Corporation. The syndicate banks under the group's main syndicate bank facility and the bondholders under the USD900,000,000 7.75% bonds due 2010, the USD900,000,000 8.375% bonds due 2030, the GBP500,000,000 5.625% bonds due 2005 and the GBP1,000,000,000 6.375% bonds due 2010 are not required to notify KPMG LLP of their claims. If you are a creditor of any company in the Marconi group other than Plc and/or Corporation (but are not a creditor of either Plc or Corp themselves), you are not affected by the proposed restructuring and are not expected to notify KPMG LLP of your claim. It is anticipated that you will be paid in the normal course of business by the relevant Marconi company. Following the results of this exercise to assess the level of claims, all creditors who will be affected by the proposed schemes will, in due course, be notified of the terms of those schemes and of the further steps that will need to be taken by them. If you are unsure of the status of your claim, please contact the KPMG helpline on +44 (0) 20 7694 3007 or fax +44 (0) 20 7694 3004 or email marconischeme@kpmg.co.uk CONTACT: MARCONI PLC Marconi Corporation plc Regents Place, 338 Esuton Road London, United Kingdom NW1 3BT NTL INC: Court Extends Interim Relief For Possible Proceedings -------------------------------------------------------------- Maxcor Financial Inc., the U.S. broker-dealer subsidiary of Maxcor Financial Group Inc., announced Thursday that the United States Bankruptcy Court for the Southern District of New York has issued a new order in the dispute swirling around the settlement of when-issued trading contracts effected in the common stock of NTL Inc. prior to NTL's emergence from bankruptcy on January 10th. The new order, issued yesterday afternoon, extends until 5:00 p.m. on February 5, 2003 - after which time it dissolves - the interim relief granted to Maxcor and other participants in the when-issued market pursuant to the Court's prior order of January 16, 2003. The prior order gave sellers the right to require buyers, subject to a full reservation of rights, to settle their transactions on a 1-for-4 reverse split adjusted basis in order to reflect the three-fourths reduction in capitalization that NTL effected upon its emergence from bankruptcy. Because the prior order was entered on an emergency basis, without the commencement of formal adversary proceedings against all of the parties affected thereby, the new order extends the duration of the interim relief for an additional week to provide parties who wish to seek to continue its provisions on a permanent injunctive basis or to obtain alternative relief a prior opportunity to commence the proceedings necessary to do so before the interim relief ends. The new order states that it should not "be interpreted as suggesting or implying any findings of fact or conclusions of law with respect to any issue," and expressly reserves the rights of all parties. Maxcor stated that it continues to assess its next actions, which may include additional proceedings in the Bankruptcy Court or elsewhere. Although many of Maxcor's counterparties, in accordance with the January 16th order, have settled their when- issued transactions on a split-adjusted basis, others have not. Given that the Court's actions to date expressly reserve the rights of all parties, Maxcor cautioned that it could not currently predict with any certainty the ultimate outcome of the settlement disputes, or whether its previously announced estimate of their possible financial impact will be mitigated. Maxcor Financial Inc. is an SEC-registered broker-dealer, specializing in institutional sales and trading operations in high-yield and distressed debt, municipal bonds, convertible securities and equities. Through its Euro Brokers division, Maxcor is also a leading domestic and international inter-dealer broker specializing in U.S. Treasury and federal agency bonds and repurchase agreements, emerging market debt products and other fixed income securities. Maxcor is a subsidiary of Maxcor Financial Group Inc., www.maxf.com, which employs approximately 500 persons worldwide and maintains principal offices in New York, London and Tokyo. CONTACT: Maxcor - New York Roger Schwed Phone: 212/748-7000 (office) PICARDY TELEVISION: Scottish Operation in Receivership ------------------------------------------------------ Picardy Media Group's Scottish operation was put into receivership after failing to secure new orders for its post- production of television and video services during the Christmas season. The slump in demand deviates from the trend of previous years when work from television commercial advertisers build up towards the holiday season. This left the Glasgow-based company without enough finances to keep its operation, particularly during January to March when the industry is generally hibernating. The company's receivers, Grant Thorton, are selling the business. But it is not yet clear whether the operation would continue to operate as a going concern, says The Herald. Picardy's two Manchester-based subsidiaries, Picardy Media Group (North West) and HM Studios, are thought likely to be sold along with the parent company in any receivership deal, though both remains profitable and are trading normally. The receivers are scheduled to meet the company's 30-manned workforce. Picardy Television was formed in a management buy-out from London-based Trillion Group in 1993. Managing director and majority shareholder Iain Hogg has been running the company for the past five years. CONTACT: GRANT THORTON International 175 West Jackson Boulevard 20th Floor Chicago, IL 60601 Phone: 312.856.0001 Fax: 312.565.4719 Home Page: http://www.grantthornton.com/ SPORTS CONNECTION: Sluggish Christmas Sales Forces Receivership --------------------------------------------------------------- Scotland's largest independent sports retailer, Sports Connection, was forced to give up after being hit by sluggish Christmas sales and a debt pile estimated to stand at almost GBP 25 million. The Glasgow-based chain collapsed into receivership, sparking fears for hundreds of jobs across west and central Scotland. More than 100 jobs have already been cut after the receivers closed 13 of the company's loss-making stores, and it is feared around 600 more jobs could be lost if the rest of the shops close. The branches that have been closed include Argyle Street in Glasgow, Ayr, Cumbernauld, Stirling, Kilmarnock, two in Edinburgh, two in Newcastle and three in Northern Ireland. All other stores have been told to continue trading as normal for the time being. Blair Nimmo, KPMG's head of corporate recovery in Scotland, said the chain had been having difficulties for quite some time due to heavy borrowing and poor trading over the festive period. However, the blow comes just 18 months after bosses said the company had doubled operating profits to more than EUR1 million, with annual turnover rising to EUR40 million by August 2002. Nimmo added: "We are hopeful of concluding a sale of the business quickly, with a view to securing as many jobs as possible. Meanwhile, we will continue to trade the business as normal." Entrepreneur and controlling shareholder Paul Stern formed sports Connection in 1980. CONTACT: SPORTS CONNECTION Sports Connection Online 1 Jubilee Court, Montrose Avenue Hillington Industrial Estate GLASGOW G52 4LB Phone: +44 141 883 6194 Fax: +44 141 891 4221 Homepage: http://www.sportsconnection.co.uk ************* 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, Ma. Cristina Canson, and Laedevee Gonzales, Editors. Copyright 2003. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. 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