/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/000808.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, August 8, 2000, Vol. 1, No. 65 Headlines C Z E C H R E P U B L I C IPB: Interior Ministry's Investigation Halted JIP VETRNI: To Sell Two Subsidiaries, Sell Third JITONA: To Shut Down Plants and Cut 160 Jobs LET KUNOVICE: Ayres Czech Aircraft Unit Under Creditor Pressure LET KUNOVICE: Awaiting Confirmation from Interested Buyer PRAZSKE PIVOVARY: Posts 164 million Crown Net Loss in First Half VITKOVICE: Posts Kc 10.4 bln Net Loss with Three Other Plants G E R M A N Y ADTRANZ: Bombardier Buys Loss Making Rail Business Firm G R E E C E SKARAMANGA SHIPYARD: Gov't Wants to Sell Majority Stake H U N G A R Y MAHART RT: Posts H1 Losses of Ft 450 million I R E L A N D RIVERDEEP: Posts $35m Losses Despite Growth I T A L Y TELEMONTECARLO: Seat to Buy Loss Making TV Company N E T H E R L A N D S BAAN: Top Executives Leaving While Hundreds More Layoffs Expected P O L A N D STATE RAILWAYS: Sign Deals for Loans to Cover Off Mounting Debts COMPENSA ZYCIE: Posts H1 zl. 4.3 Million Loss R U S S I A AEROFLOT: Berezovsky Says Aeroflot Charges Politically Motivated U N I T E D K I N G D O M ABBEY COOL LTD: Notice of creditors meeting ABSOLUTE CONTROL SYSTEMS LTD: Notice of creditors meeting CGNU: Merged Insurance Group will Cut 250 Positions CENTER PARCS: Pierre et Vacances to Buy Holiday Business CENTER PARCS: French Set to Operate CLIVE GROVER LTD: Notice of creditors meeting CONTRACTING SERVICES LTD: Notice of creditors meeting FASTCOM LTD: Notice of creditors meeting GROVE DEVELOPMENTS LTD: Notice of creditors meeting HYDER: Western Power Distribution Expected to Make Bid KVAERNER: Workers Welcome a Buy-out Agreement LIFFE TRADE: System Failure Costs ?20 Billion Loss MCKECHNIE: Agrees to $653m Management Buy-out MERIDIEN HEALTH CARE CENTERS LTD: Notice of creditors meeting NATIONAL HOMECARE LTD: Notice of creditors meeting NUCLEUS CREATIVE SERVICES LTD: Notice of creditors meeting OLYMPIAN HOME IMPROVEMENTS LTD: Notice of creditors meeting R & D SLEIGHTHOLME LTD: Notice of creditors meeting RATBY ENGINEERING LTD: Notice of creditors meeting REACT COMMUNICATIONS LTD: Notice of creditors meeting RISING SUN (BAMFORD) LTD: Notice of creditors meeting TELEWEST COMMUNICATIONS: Reports Pre-tax Loss in Six Months UNILEVER: Splits Operations; Plan Involves Cutting 25,000 jobs WWW RESOURCING LTD: Notice of creditors meeting =========================== C Z E C H R E P U B L I C ============================ IPB: Interior Ministry's Investigation Halted ---------------- CZECH A.M.& MLADA FRONTA August 4, 2000 The District Prosecutor's Office in Prague ordered the suspension of the Interior Ministry's investigation of actions taken when IPB was being placed under forced administration, giving its approval to the measures. Interior Minister Stanislav Gross said he was pleased an independent authority backed his ministry's stance. JIP VETRNI: To Sell Two Subsidiaries, Sell Third -------------------------------------------- CZECH A.M. & HOSPODARSKE NOVINY B2 August 3, 2000 Paper mill JIP Vetrn¡ plans to sell off subsidiaries JIP-Cerepa Cervena Recice and JIP-Pap¡rny Vltavsky Mlyn Loucovice and shut down activities at another, JIP-Pap¡rny Vrane, as part of its restructuring process. Only the parent company in Vetrn¡ is to continue operations. JIP posted a 1999 loss of Kc 68 million on sales of Kc 2.8 billion. JITONA: To Shut Down Plants and Cut 160 Jobs ---------------------- CZECH A.M. & HOSPODARSKE NOVINY B1 August 4, 2000 Jitona will close its plants in Cesky Krumlov and Stary Plzenec later this month, cutting 160 jobs, in order to pay off the rest of its debts. The furniture maker plans to streamline production among its four remaining plants. LET KUNOVICE: Ayres Czech Aircraft Unit Under Creditor Pressure ---------------------- PRAGUE BUSINESS JOURNAL & REUTERS August 4, 2000 Czech state factoring bank Konsolidacni Banka said on Friday it had cancelled a June agreement that allowed U.S. Ayres Corp to continue production at its Czech unit Let Kunovice. Konsolidacni spokesman Jiri Pekarek told Reuters that Ayres had not met part of a contract with Konsolidacni, as it had failed to bring operating capital to Let Kunavice, which owes Konsolidacni several billion crowns. "One reason why we withdrew from the agreement was that Let's management has not been strengthened, and also operating finances were not provided," Pekarek said. Let produces engine-powered aircraft and gliders. It is a key supplier of parts for an order by U.S. shipper FedEx for more than 50 of Ayres' Loadmaster cargo and utility aircraft. Let did not immediately comment on Konsolidacni's action, which could lead to its bankruptcy or change of ownership. Pekarek declined to elaborate on further steps Konsolidacni may take but said that one foreign aircraft producer had already shown interest in Let. He added that Let will be allowed a month to react to Konsolidacni's Friday decision. A source close to the talks told Reuters that Israel Aircraft Industries (IAI) was watching the situation in Let. The U.S. aviation manufacturer Ayres Corp. brought its Loadmaster project to Let after its acquisition in 1998. It planned to combine its production with Let's projects of L420 and L610G planes. LET KUNOVICE: Awaiting Confirmation from Interested Buyer ------------------- CZECH AM August 4, 2000 LET Kunovice says an unnamed company is expected to confirm interest in the aircraft manufacturer within ten days. LET's biggest creditor Konsolidacn¡ Banka says it is preparing a measure in case the interest is unconfirmed, which would have an unspecified impact on employees. LET has been experiencing cash flow problems for several months and is having difficulty paying employees on time. PRAZSKE PIVOVARY: Posts 164 million Crown Net Loss in First Half -------------------------------------- European Investor & Reuters August 4, 2000 Czech brewery Prazske Pivovary said on Friday it had posted a net loss of 164 million crowns ($4.20 million) for the first six months, compared to a net loss of 198 million last year. But the company, which was a part of a June transaction between Bass and Belgium's Interbrew, had increased revenues by eight procent year-on-year to 1.25 billion crowns. The sales were at 1.13 million hectoliters. Prazske Pivovary, the second largest Czech brewery, posted a operating profit of 38 million crowns in the six-month period. It was the first operating profit since September 1998. VITKOVICE: Posts Kc 10.4 bln Net Loss with Three Other Plants ---------------------- CZECH AM LIDOVE NOVINY August 3, 2000 The four north Moravian metallurgy giants - V¡tkovice, Nova Hut, Trinecke Zelezarny and Valcovny Plechu - posted a combined net loss for last year of Kc 16 bln, compared to a 1998 profit of Kc 171 mln. V¡tkovice fared the worst, losing Kc 10.4 bln, with only TZ showing a profit, of Kc 116 mln. ============= G E R M A N Y ============= ADTRANZ: Bombardier Buys Loss Making Rail Business Firm ----------------- THE TIMES August 5, 2000 Bombardier, the Canadian transport equipment maker, has acquired a guaranteed position in the privatisation of London Underground with the $725 million (?480 million) purchase of Adtranz, DaimlerChrysler's rail business. Bombardier and Adtranz are competing to take over the Bakerloo, Central and Victoria lines in a public-private partnership deal. The Government recently shortlisted just two consortiums: Linc, led by Bombardier, and Metronet, headed up by Adtranz. A spokesman for London Underground insisted that the two rolling stock manufacturers were required to keep their bids confidential until the winner is chosen. The takeover of the loss-making Adtranz propels Bombardier into a leading position worldwide in passenger rail transport with revenues of $5.7 billion and 24 manufacturing locations across the globe. Adtranz brings with it cutting-edge European rail technology, such as high-speed electric-powered locomotives. But the German business has been a consistent drain on the auto manufacturer, losing about euro400 million (?240 million) last year. Both Bombardier and Adtranz have operations in the United Kingdom and concern is growing that the German firm's Derby operation may be threatened. =========== G R E E C E =========== SKARAMANGA SHIPYARD: Gov't Wants to Sell Majority Stake ---------------------------- ATHENS NEWS, August 3, 2000 The government wants to privatize more than 51 percent of Skaramanga Shipyard through the sale of staff holdings, Deputy Labor Minister Christos Protopappas said. Speaking after a meeting with the shipyard's union representatives, Protopappas said it would be difficult to sell only a 51 percent stake that belongs to listed ETBAbank, as new buyers were likely to reject the marginal control offered in the deal. Workers currently own 49 percent of Skaramanga, the country's largest shipyard. A union spokesman said his members were not opposed to the scheme. At the same time, they wanted to conduct their own sale negotiations, bypassing ETBAbank. The government decided on Tuesday to privatize the yard early in 2001. ============= H U N G A R Y ============= MAHART RT: Posts H1 Losses of Ft 450 million --------------------------------- HUNGARY A.M. & NV 4 August 4, 2000 Hungarian shipping company Mahart Rt reported losses of Ft 450 million in the first half. The company attributed the loss to increasing fuel costs and the fact that the lower stretches of the Danube are still not navigable. "Although neither of these factors is likely to change in the second half, we still hope to achieve a modest profit through property sales," said general manager Botond Szalma. ============= I R E L A N D ============= RIVERDEEP: Posts $35m Losses Despite Growth ------------------ IRISH INDEPENDENT AUGUST 4, 2000 Irish educational software company Riverdeep has posted a loss of $35m for the year to June, up from $7m the previous year. Shares in the company on the Dublin stock exchange remain unchanged after the news and held their ground at euro 3.50 yesterday. Meanwhile, Riverdeep stock, trading as American Depositary Receipts (ADRs) on Nasdaq, were down over 3.5pc to $18.37 in early trade. They closed later at $18.50. The company also reported that fourth quarter losses were up to $7.2m from $2.6m in the same period of 1999. In stock terms, the net loss for the year represents $1.62 per ADS compared to $0.44 per ADS for the end of last year. Despite the losses, Riverdeep recorded unprecedented revenue growth. Revenue was up to $8.3m for the year from $363,000 in 1999. Total revenue for the fourth quarter increased to $1.7m, compared to ?238,000 in the same period of 1999. The adjusted net loss for the quarter, excluding non-cash charges for stock compensation and amortisation, was $6.3m or $0.23 per ADS. ``The fourth quarter was our biggest yet in terms of new business as we reported a 33pc increase in total contract value over last quarter,'' said Riverdeep chief executive Barry O'Callaghan. And the number of subscribers to Riverdeep's online educational products jumped 28pc during the fourth quarter compared to 708,000 at the end of March last representing revenue per new subscriber up to $9.32, a 47pc increase over the previous quarter. ``Furthermore, our migration to a subscription based model from a licence based model is essentially complete and average revenue per new subscriber continues to increase dramatically,'' he said. Total contract value for the quarter was up 33pc to $5.2m, compared with $3.9m in the third period of the year. ``During the fourth quarter we entered into a number of strategic alliances and licensing agreements with several high profile companies including AOL, iMind Education Systems and Highwired.com which will greatly enhance our market position and visibility as well as increasing our overall educational package,'' said Mr O'Callaghan. Earlier this week IBM took a 14pc stake in Riverdeep in a stock- for-assets deal valued at $85m which sees Riverdeep acquire the educational assets of the Edmark Corporation from the US giant. Riverdeep was founded in 1995 and is jointly headquartered in Dublin, Ireland and Massachusetts. ========= I T A L Y ========= TELEMONTECARLO: Seat to Buy Loss Making TV Company -------------------------- August 4,2000 Seat, Italy's leading directories publisher, was poised to announce that it had taken control of Telemontecarlo, a television company that owns two national channels, according to Financial Times. It is said that the two companies were finalising contractual details on Friday in Milan. Telemontecarlo is thought to be losing about L60bn (E31m, $28m) annually on turnover of L140bn . The move towards the conclusion of Seat's takeover of Telemontecarlo followed Thursday's announcement by Telecom Italia that it had increased its stake in Seat to 29.9 per cent and would be launching an offer for the directories publisher. Italy's competition authority gave its go-ahead to the takeover on 27 July, accordingly. Telecom Italia's shareholders will meet to approve the operation, which will be followed by the spin-off of the telecommunications group's Tin.it internet subsidiary and its merger with Seat, on 10 August. Tin.it is Italy's biggest internet service provider and its combination with Seat will dominate Italy's internet market. There has been speculation that the directories group is acquiring at least 60 per cent in a deal that values Telemontecarlo at about L1,500bn, Financial Times said. ===================== N E T H E R L A N D S ===================== BAAN: Top Executives Leaving While Hundreds More Layoffs Expected ------------------------------- THE WALL STREET JOURNAL August 7, 2000 Six top executives are leaving Baan Co. as part of the reorganization under way now that Invensys PLC has taken control of the ailing software maker. Some of the posts they leave will be filled by a new management team pulled together by Laurens van der Tang, Baan's chief technology officer, who will become the unit's president when Invensys folds the company into its services and software division. The six departing executives will be followed by 700 to 800 employees whose jobs will be eliminated, a spokesman said. British industrial-controls maker Invensys has won 72% of Baan shares with the 762-million-euro ($690.8 million) takeover bid it launched June 2. It has extended the offer to Aug. 29, although it will take complete control of the company after Aug. 18. At a shareholder meeting that day, Invensys plans to formally approve its proposal to liquidate Baan, buy its assets and pay any remaining outside shareholders 2.85 euros a share, the same price as its takeover offer. The Amsterdam stock exchange removed Baan from its blue-chip AEX Index Friday. Trading in Baan shares will cease when Invensys completes the liquidation, the stock exchange said. The departing executives include two especially highly regarded managers: Mike Shinya, executive vice president of world-wide sales, and Katrina Roche, chief marketing officer. Mr. Shinya said he isn't sure when or where he will take a new job when he leaves at the end of August. "I have two or three opportunities that are active, but I haven't decided if I should take some time off," he said. Ms. Roche, who is known for a slick marketing style and who became a key lieutenant to Chief Executive Pierre Everaert in Baan's dying days, couldn't be reached for comment. People who know her well said she has been receiving offers from software and investment companies for months. A Baan spokesman confirmed that the others set to leave are Charles Callahan, vice president, global consulting; Peter Aird, executive vice president, customer support and education; Giovanni Bindoni, president, Europe, Middle East and Africa; and Tom Erickson, president, Asian-Pacific. Mr. Everaert will become chairman of the Baan supervisory board. Robert Goudie, general counsel, plans to go on sabbatical and might return to Baan, people familiar with the matter said. In a conference call with employees last week, Mr. van der Tang acknowledged the reorganization would be painful. He also introduced a new management team made up of four employees from Baan's offices in the Netherlands. Paul Daly, president, Americas, will continue in that post. =========== P O L A N D =========== STATE RAILWAYS: Sign Deals for Loans to Cover Off Mounting Debts ------------------------------- POLAND A.M. & PULS BIZNESU August 3, 2000 Polish State Railways (PKP) is on Aug. 9 expected to sign a deal for a loan of zl. 300 million from a consortium of local banks. Unlike previous ones, the latest loan is guaranteed not by the government but by the European Bank for Reconstruction and Development (EBRD). PKP in September will target another group of lenders to provide it with a further loan of zl. 1.5 billion. The loans will be used to pay off arrears to the Social Insurance Company (ZUS). In the first six months of this year, PKP liabilities have soared to zl. 6.28 billion of which zl. 1.94 billion are debts that are due. PKP further owes zl. 218 million in unpaid value-added tax (VAT) to the Treasury. PKP president Krzysztof Celinski is confident that a lot of banks will be willing to lend his company more money as the ambitious restructuring plan approved by the Sejm guarantees good times ahead. COMPENSA ZYCIE: Posts H1 zl. 4.3 Million Loss ---------------------- POLAND AM PRAWO I GOSPODARKA August 2, 2000 Compensa Zycie insurance company whose majority shareholder is Hamburg Mannheimer Versicherungs AG, posted zl. 4.3 million in losses in the first half of 2000. The company called the loss, which tripled compared to last year, planned investment costs. =========== R U S S I A =========== AEROFLOT: Berezovsky Says Aeroflot Charges Politically Motivated ------------------- EUROPEAN INVESTOR & REUTERS August 2, 2000 Russian tycoon Boris Berezovsky protested his innocence on Wednesday of alleged embezzlement from state airline Aeroflot , calling it a "political case" set up by former Prime Minister Yevgeny Primakov. Russian prosecutors are investigating possible fraud at the airline, involving the alleged skimming off of funds through two Swiss companies. "As for the Aeroflot affair, it was just set up by the former Prime Minister Mr Primakov and it was a pure political case," Berezovsky said on a phone-in programme on CNN television. "I just didn't commit any economic crimes and my people didn't commit any economic crimes in Switzerland," he told a questioner, speaking through an English interpreter. Russian special prosecutor Nikolai Volkov said in Berne last week that he had received papers from Swiss authorities which would allow him to decide in September whether to press charges. The investigation centres on allegations that money from Aeroflot was skimmed off through two Lausanne-based companies, Forus Services SA and Andava SA. Both have denied wrongdoing. Berezovsky, one of a group of powerful Russian businessmen dubbed "oligarchs", has had interests ranging from car dealing to television and has also been linked to oil companies and airlines. He did not say why Primakov, who was prime minister from September 1998 to May 1999, would have wished to start legal proceedings against him. Berezovsky, who was close to former President Boris Yeltsin but has quarrelled with current president Vladimir Putin, said Putin was not out to destroy his business empire but his attempt to centralise power was "the way to a totalitarian regime". "I don't have any impression that the president is trying to fight with the business which I created," he said. "I only think the president is trying to demonstrate...that there is a strong power in Russia now. "But the way he is doing this, I just have a lot of doubts about this. I think that this is a mistaken way... Strength and power is not in the process of centralising." Putin has sought to curb the powers of Russia's regional governors. Berezovsky, who dramatically resigned his seat in parliament last month, said hundreds of people in his constituency who had not even voted for him had urged him not to quit because "now we understand that what you are doing is what we need". Berezovsky said he resigned because he felt the State Duma -- the lower house -- was now "the government of the president". =========================== U N I T E D K I N G D O M =========================== ABBEY COOL LTD: Notice of creditors meeting --------------------- Company Name: Abbey Cool Ltd IA 1986 Section: 48 Creditors Meeting Time: 10.30 am Meeting date: 02/08/00 Meeting address: Beneficial Building 28 Paradise Circus Meeting City Code: Birmingham B1 2BJ Authorised by: T Mitchell Joint Administrative Receiver Last day for proxy: 01/08/00 Proxy address: Beneficial Building 28 Paradise Circus Birmingham B1 2BJ Liquidators: Firm Name: BDO Stoy Hayward Address: Beneficial Building 28 Paradise Circus Birmingham B1 2BJ ABSOLUTE CONTROL SYSTEMS LTD: Notice of creditors meeting --------------------- Company Name: Absolute Control Systems Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.45 am Meeting date: 02/08/00 Meeting address: 41 Kingston Street Meeting City Code: Cambridge CB1 2NU Authorised by: B Taylor Director 03/07/00 Liquidators: Philip A Beck Firm Name: P A Beck Address: 41 Kingston Street Cambridge CB1 2NU CGNU: Merged Insurance Group will Cut 250 Positions ---------------- NEWS NOW August 7,2000 CGNU, the merged insurance group, will make up to 250 people redundant when it closes its global risk business. The group announced the closure of the business last week as part of a review of operations after the merger of Norwich Union and CGU, but only detailed the job losses on Sunday. The review also led to the sale of some international businesses, but the global risk division - which advises large companies on complex general insurance needs - was the only one targeted for closure. "We have made it very clear that we will not sustain areas of business where we are not making a profit," CGNU said. It is believed the division has been lossmaking for several years, although the company refused to confirm the losses. CGNU said it would try to find alternative jobs for employees as the business is closed down. Staff and corporate clients were briefed on the decision last week, before the company unveiled operating profits down ?53m at ?800m for the first half of the year. CENTER PARCS: Pierre et Vacances to Buy Holiday Business --------------------------------- August 4,2000 Financial Times reported that Pierre et Vacances, the French holiday company, has emerged as the favourite bidder for the Center Parcs holiday business being sold by Scottish & Newcastle, the brewing and leisure group. The company, which is being backed by Deutsche Bank's private equity division, is understood to be one of two final bidders for the business that was put up for sale in February. London & Regional Properties is also understood to have made it through to the final round, but industry sources have indicated that Pierre et Vacances is S&N's favoured buyer. Both are understood to have submitted bids between ?670m and ?700m, lower than analysts' estimates of up to ?800m. CVC Capital, which had also been in the running, appears to have been outbid. Accordingly, Pierre et Vacances is thought to be attracted to Center Parcs because of its spread across five European countries. There are five parks in the Netherlands, three in the UK, two in Belgium, two in France and one in Germany. The sale of Center Parcs suffered a setback in May after a fire at one of its Dutch sites destroyed the swimming complex, several shops, restaurants and the bowling alley. The market for UK holiday centres, such as Center Parcs and Butlin's has been static, accounting for about 9 per cent of holidays taken in the UK - unchanged since 1994, according to Mintel, the market research group. Center Parcs is being advised by Morgan Stanley Dean Witter, Financial Times said. CENTER PARCS: French Set to Operate -------------------------- August 5,2000 DEUTSCHE Bank's private equity arm, DB Capital Partners, has teamed up with Pierre & Vacances, the French holiday company, in its bid for Scottish & Newcastle's Center Parcs division, which is worth between ?670 million and ?700 million ,the Financial Times said. DB Capital, which is expected to be named as the preferred bidder next week, is understood to have fended off bids from a management buyout team backed by CVC Capital Partners and Landal GreenParks, a Dutch holiday group controlled by WestLB, the German bank. The French group, which claims to be Europe's leading holiday rentals company, already has a similar product to Center Parcs called Gran Dorado. It acquired Gran Dorado, a Dutch group, in April for euro100.6 million (?60.4 million), citing its intention to continue expanding outside France. The deal would be the largest to date for DB Capital, which was acquired by Deutsche Bank as part of last year's purchase of Bankers Trust. DB sprang to prominence in February when it teamed up with Cinven, Paribas, Danone and Hicks, Muse, Tate & Furst to buy United Biscuits for ?1.3 billion. The market reacted with disappointment to the price mooted for Center Parcs, which compares with a book value of ?822 million, sending the already depressed share price a further 2p lower to 454«p, accordingly. CLIVE GROVER LTD: Notice of creditors meeting --------------------- Company Name: Clive Grover Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.30 am Meeting date: 02/08/00 Meeting address: 5 Park Court Pyrford Road Meeting City Code: West Byfleet KT14 6SD Authorised by: C Ellis Director 03/07/00 Last day for proxy: 01/08/00 Proxy address: 5 Park Court Pyrford Road West Byfleet KT17 6SD Liquidators: Firm Name: Gibson Hewitt Address: 5 Park Court Pyrford Road West Byfleet KT17 6SD CONTRACTING SERVICES LTD: Notice of creditors meeting --------------------- Company Name: Contracting Services Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.00 am Meeting date: 02/08/00 Meeting address: Peat House 1 Waterloo Way Meeting City Code: Leicester Authorised by: M E Harrison Director 13/07/00 Liquidators: Firm Name: KPMG Address: St Nicholas House Park Row Nottingham NG1 6FQ FASTCOM LTD: Notice of creditors meeting --------------------- Company Name: Fastcom Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.15 am Meeting date: 02/08/00 Meeting address: 41 Kingston Street Meeting City Code: Cambridge CB1 2NU Authorised by: N Batchford Director 03/07/00 Liquidators: Philip A Beck Firm Name: P A Beck Address: 41 Kingston Street Cambridge CB1 2NU GROVE DEVELOPMENTS LTD: Notice of creditors meeting --------------------- Company Name: Grove Developments Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.30 am Meeting date: 02/08/00 Meeting address: Downs Court Business Centre 29 The Downs Meeting City Code: Altrincham Authorised by: J M Howcraft Director 26/06/00 Liquidators: Nola Barber Firm Name: Lines Henry Address: 27 The Downs Altrincham WA14 2QD HYDER: Western Power Distribution Expected to Make Bid ------------------------------ August 4 2000 The board of Hyder, the troubled Welsh multi-utility, was expected on Friday evening to recommend a ?526m ($789m) offer from Western Power Distribution, a US joint venture, in the latest twist of a four-month takeover battle for the company, Financial Times reported. Stephen Byers, UK Trade and Industry Secretary, on Thursday removed the last main regulatory obstacle for the WPD bid by deciding not to call for an investigation by the Competition Commission into WPD's plans for Hyder's water business. WPD's 340p a share offer is worth ?31m more than a rival offer from Nomura, the Japanese investment bank. At the close of trading on the London Stock Exchange, Hyder's shares stood at 355p in anticipation of a continuing battle between the two companies. The recommendation by the Hyder board will be the first time it has backed a bid by WPD. It had previously twice approved bids from Nomura worth 260p then 320p a share, and twice reversed that decision to a "do nothing" stance as WPD came back with higher offers, Financial Times Said. KVAERNER: Workers Welcome a Buy-out Agreement ---------------------------------- AUGUST 5,2000 Kvaerner Energy, an engineering plant at the former John Brown shipyard on the Clyde, would have closed if the buy-out company, Newco, had failed, with the loss of 250 jobs. But Kvaerner has announced it has signed a letter of intent with Newco, led by the plant's former marketing director Bob Hepburn, which should lead to the Clydebank plant's sale being concluded in around a month, according to ANANOVA. Paul Emberley, spokesman for Kvaerner, said: "We have signed a letter of intent with Newco for them to take the remaining business at Kvaerner Energy. The is the first stage in the agreement. It is a quantum leap in getting this far but clearly we have more to do." Unions predicted workers who had been laid off over the last 18 months, as plans to dispose of the plant progressed, may get their jobs back through the deal. Jim Moohan, senior engineering organiser at GMB Scotland, said: "It is great news that over 300 skilled jobs at this plant have been saved by the deal. "The last 15 months have seen a tremendous struggle to secure the future of the plant. The workforce has shown strength of character and co-operated through the process. We are absolutely delighted, because we were a matter of days away from announcing a run-down of the plant and closure by Christmas, which would obviously have been a disaster. It's tremendous news. "I would hope to sit down fairly soon with the management and discuss the jobs situation. The people at Newco have experience of Kvaerner and John Brown Engineering - they have the knowledge and understanding of what is required to ensure the future of the site." Plans for the plant to be sold to Manchester-based firm Texas had collapsed in June of this year after six months of intensive talks and Kvaerner had predicted closure if a new buyer could not be found. Mr Hepburn's firm Newco - an interim name - began talks shortly after the Texas deal fell through and is understood to be preparing to lay more staff off temporarily until the order book is refilled, ANANOVA reported. LIFFE TRADE: System Failure Costs ?20 Billion Loss -------------------------------- August 5 2000 News Now report that a computer crash yesterday cost Liffe, the London futures and derivatives exchange, more than ?20 billion worth of business - just two days after the exchange announced that electronic trading will replace its open outcry system in November. Difficulties were reported at about 4pm by several hundred of the 12,000 traders who use the market. The exchange said it closed LiffeConnect, the computer trading system, for about 40 minutes to trace the fault. A Liffe spokeswoman said: "Our traders experienced problems accessing the market so we shut down." She added that the fault had not been located and experts would be working over the weekend to find it. One trader claimed, however, that the problem was more significant than Liffe would admit. Lewis Findlay, managing director of Cantor Index, the spread betting firm, said: "The system shut down at 3.48pm and came back up at 4.55pm. The Footsie was accessible again from 5pm while the last market to open up was the sterling/Swiss at 5.02." He added that the problem was particularly severe as the system was down at the close of the FTSE 100 index, which is used to fix the price for futures contracts. Liffe announced on Wednesday that its remaining open outcry traders, known for their brightly coloured jackets, would finally leave the floor on November 24. MCKECHNIE: Agrees to $653m Management Buy-out ------------------- FINANCIAL TIMES August 6,2000 The growing trend for quoted companies to quit the stock market was reinforced on Sunday as McKechnie, the aerospace and engineering company, agreed a ?434m ($653m) management buy-out. Cinven, the venture capital group backing the deal, is going ahead with the transaction despite McKechnie's poor trading performance. In Sunday's announcement the company revealed that profits in the year to July would be below market expectations. The news should placate some institutions who felt the takeover price of 400p a share was too low. Last week an institutional fund manager was understood to have met the board to discuss the offer, concerned the company was being sold too cheaply. However, Sunday's deal is said to have initial support from 32 per cent of McKechnie's institutional shareholders. The 400p cash offer represents a 26 per cent premium over the 317«p in May before McKechnie announced it was in talks. On Friday McKechnie's shares closed at 371p. The management buy-out is being led by Andrew Walker, chief executive, and Stuart Moberley, finance director. The directors decided to go private after a three-year programme to boost profits - and consequently the share price - by changing focus. McKechnie sold its low-margin consumer goods business in October and has since focused on aerospace products, engineered plastics and fasteners. In spite of the changed strategy, the shares were trading as low as 223p in March, having fallen from more than 500p late last year. It is believed McKechnie chose to go private only after considering three other approaches. One insider said: "The first party just looked, the second looked but didn't make an offer and the third just offered a silly price." Vanni Treves, McKechnie's chairman, said that, given current trading, the independent directors had decided unanimously to recommend the offer. Pre-tax profits to July 31 would not be more than ?50m, against ?59m last year. Richard Munton, a director of Cinven, said an exit would be sought in three to five years. It is understood McKechnie is likely to dispose of its engineered plastics division. BlueAzure, a company formed for the management buy-out, is being advised by Morgan Stanley Dean Witter and the debt financing has been jointly arranged and underwritten by MSDW, Deutsche Bank and UBS Warburg. McKechnie was advised by Schroder Salomon Smith Barney and Cazenove. MERIDIEN HEALTH CARE CENTERS LTD: Notice of creditors meeting --------------------- Company Name: Meridien Health Care Centres Ltd IA 1986 Section: 48 Creditors Meeting Time: 10.00 am Meeting date: 02/08/00 Meeting address: Posthouse Taunton Deane Gate Avenue Meeting City Code: Taunton TA1 2UA Authorised by: P A Revill Joint Administrative Receiver 18/07/00 Last day for proxy: 01/08/00 Proxy address: 93 Queen Street Sheffield S1 1WF Liquidators: Firm Name: Poppleton & Appleby Address: 93 Queen Street Sheffield S1 1WF NATIONAL HOMECARE LTD: Notice of creditors meeting --------------------- Company Name: National Homecare Ltd IA 1986 Section: 48 Creditors Meeting Time: 02.30 pm Meeting date: 02/08/00 Meeting address: Birmingham Grand Moathouse Hotel Colmore Row Meeting City Code: Birmingham B3 2DA Authorised by: W R Tacon Joint Administrative Receiver 17/07/00 Last day for proxy: 01/08/00 Proxy address: One Colmore Row Birmingham B3 2DB Liquidators: Firm Name: Ernst & Young Address: One Colmore Row Birmingham B3 2DB NUCLEUS CREATIVE SERVICES LTD: Notice of creditors meeting --------------------- Company Name: Nucleus Creative Services Ltd IA 1986 Section: 95 Creditors Meeting Time: 10.30 am Meeting date: 02/08/00 Meeting address: St Anthonys Hospital London Road Meeting City Code: North Cheam Authorised by: R L H Knight Liquidator 13/07/00 Liquidators: Firm Name: Morgan Insolvency Address: The White Cottage 19 West Street Epsom KT18 7BS OLYMPIAN HOME IMPROVEMENTS LTD: Notice of creditors meeting --------------------- Company Name: Olympian Home Improvements Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.30 am Meeting date: 02/08/00 Meeting address: Customs House 9-10 Hampshire Terrace Meeting City Code: Portsmouth PO1 2QF Authorised by: E Tzikakis Director 17/07/00 Liquidators: Philip A Roberts Firm Name: Address: Customs House 9-10 Hampshire Terrace Portsmouth PO1 2QF R & D SLEIGHTHOLME LTD: Notice of creditors meeting --------------------- Company Name: R & D Sleightholme Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.30 am Meeting date: 02/08/00 Meeting address: 75 Harborne Road Meeting City Code: Birmingham Authorised by: M Brewster Director 25/07/00 Last day for proxy: 01/08/00 Proxy address: Kensington House 33 Imperial Square Cheltenham GL50 1QZ Liquidators: Firm Name: Findley James Address: Kensington House 33 Imperial Square Cheltenham GL50 1QZ RATBY ENGINEERING LTD: Notice of creditors meeting --------------------- Company Name: Ratby Engineering Ltd Other name: CS Milne IA 1986 Section: 98 Creditors Meeting Time: 03.00 pm Meeting date: 02/08/00 Meeting address: 1 Waterloo Way Meeting City Code: Leicester LE1 6LP Authorised by: M E Jones Director 19/07/00 Last day for proxy: 01/08/00 Proxy address: 1 Waterloo Way Leicester LE1 6LP Liquidators: Firm Name: KPMG Address: 1 Waterloo Way Leicester LE1 6LP REACT COMMUNICATIONS LTD: Notice of creditors meeting --------------------- Company Name: React Communications Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.30 am Meeting date: 02/08/00 Meeting address: The Chase Hotel Higham Lane Meeting City Code: Nuneaton Authorised by: A Galloway Director 20/07/00 Last day for proxy: 01/08/00 Proxy address: Kings Business Centre 90-92 King Edward Road Nuneaton CV11 4BB Liquidators: Firm Name: Pattinsons Address: Kings Business Centre 90-92 King Edward Road Nuneaton CV11 4BB RISING SUN (BAMFORD) LTD: Notice of creditors meeting --------------------- Company Name: Rising Sun (Bamford) Ltd - The IA 1986 Section: 48 Creditors Meeting Time: 10.30 am Meeting date: 02/08/00 Meeting address: 93 Queen Street Meeting City Code: Sheffield S1 1WF Authorised by: P A Revill Joint Administrative Receiver 17/07/00 Last day for proxy: 01/08/00 Proxy address: 93 Queen Street Sheffield S1 1WF Liquidators: Firm Name: Poppleton & Appleby Address: 93 Queen Street Sheffield S1 1WF TELEWEST COMMUNICATIONS: Reports Pre-tax Loss in Six Months ------------------------------------ August 3,2000 BBC News said that Telewest Communications has admitted it will miss its digital television sales targets for this year. The news sent the company's shares - which have already slumped in recent weeks - down 11% to their lowest levels since 1998. They closed on Thursday at 155.75p, down from 175p and far below their peak in March of 563p. The company had hoped to have 500,000 customers signed up by the end of this year. But it said on Thursday it would take an additional three months to achieve its target because of a range of different problems, including a shortage of set-top boxes. Telewest hopes to resume full sales of its digital television service in October and said it was unfazed about the setback. The company has also suffered problems with its internet services. The company said it was planning to cut the monthly cost from ?50 to below ?40 and launch a marketing push in the autumn. Telewest's pre-tax loss in the six months to the end of June rose to ?295.6m from ?263.8m during the same period last year. The deeper losses were largely a result of the company's switch into digital products from analogue. But on a more positive note, revenues rose by 35% to ?514m, with monthly revenues per customer rising 9% to ?37.67. But analysts said they were disappointed by a fall in the company's overall subscriber base.The total number of television subscribers fell by 10,000 during the second quarter to about 1.1m as the company made the change to more digital services, the BBC News reported. UNILEVER: Splits Operations; Plan Involves Cutting 25,000 jobs ------------------------------- August 4 2000 Unilever, the foods and detergent conglomerate, on Friday announced the formation of two global divisions but stuck firmly to its line that the move was not a prelude to splitting into separate companies. In the shake-up Patrick Cescau, finance director, will take charge of the foods division from January 1. Keki Dadiseth, who oversaw the group's review of top organisation this year, is to become home and personal care director. Mr Dadiseth joined the board from Hindustan Lever, the group's Indian subsidiary in May, according to Financial Times. The Anglo-Dutch company said the rationale was to accelerate decision-making and to strengthen the company's ability to harness innovation. "This is not a precursor to a demerger," it added. That plan involves cutting 25,000 jobs, introducing steep growth targets and focusing on 400 key brands. Mr Fitzgerald said: "The business has continued to evolve making this review of our structures timely." WWW RESOURCING LTD: Notice of creditors meeting --------------------- Company Name: WWW Resourcing Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.15 am Meeting date: 02/08/00 Meeting address: 6 Raymond Buildings Grays Inn Meeting City Code: London WC1R 5BP Authorised by: N Levy Director 13/07/00 Last day for proxy: 01/08/00 Proxy address: The Old Exchange 234 Southchurch Road Southend-on-Sea SS1 2EG Liquidators: Mark R Fry Firm Name: Begbies Traynor Address: The Old Exchange 234 Southchurch Road Southend-on- Sea SS1 2EG 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. Lexy Mueller, Mercy Villacastin and Cristina Pernites Editors. Copyright 2000. 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 $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 $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *