/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/030124.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 Friday, January 24, 2003, Vol. 4, No. 17 Headlines * F R A N C E * AIR LIB: European Commission Opens State Aid Proceedings METALEUROP NORD: May Close Noyelles-Godault Factory Soon SCOR: Pursues "Back on Track" Plan for the Year VIVENDI UNIVERSAL: Completes Sale of Stake in Eurotel to Antenna * G E R M A N Y * BANKGESELLSCHAFT BERLIN: Might Lose Potential Acquirers BANKGESELLSCHAFT BERLIN: Pretax Loss Is EUR577 MM - Report DAB BANK: Sells Direct Anlage Bank to Bank Sarasin DEUTSCHE TELEKOM: Drops 2003 Option Allocation for Management HVB GROUP: Moody's Downgrades Financial Strength to C- KINOWELT: Kolmel Brothers Completes Re-purchase Transaction PHILIPP HOLZMANN: To Unload Austrian Subsidiary to Wolff & Muller * S P A I N * AUNA OPERADORES: Reacquires Carlton's 6% Stake in Quiero TV * U K R A I N E * UKRAINAIAN BANK: Fitch Affirms Long-term Rating at 'CCC+' * U N I T E D K I N G D O M * AMEY PLC: Might Receive Bid From Non-UK Company - Source BRITISH ENERGY: Posts Circular on Sale of Bruce Power DUNLOP STANDARD: S&P Lowers Long-term Corporate Credit Rating DUNLOP STANDARD: Says Financial Outlook Remains Positive JAEGER: Coats to Sell Loss-making Chain to Richard Thompson KINGFISHER PLC: Sells Retail Park Portfolio for GBP695 Million MONOTUB INDUSTRIES: Under Members' Voluntary Liquidation RAGE PLC: Complexity of Business Makes Closure Inevitable WHAT EVERYONE: Administrator Plans to Wind Up Business WHAT EVERYONE: Propose Closure to Affect 2500 Jobs Across U.K. =========== F R A N C E =========== AIR LIB: European Commission Opens State Aid Proceedings -------------------------------------------------------- The European Commission is investigating government aid received by French Air Lib to ascertain whether the assistance breaches European competition regulations. According to Le Figaro, the Commission is particularly interested in the EUR30.5 million worth of public aid given to the airline after the bankruptcy filing of Swiss national carrier, Swissair. It is also interested in rescheduled social charges and airport charges worth EUR60 million. A report from AFX also says the commission is investigating the French government's decision to extend rescue aid to the company for a total of 12 months, the government's failure to notify a restructuring plan and the possible existence of other sources of public funding. The French government is due to announce its decision on the new restructuring plan for the troubled airline. It is known that the government earlier rejected the carrier's amended restructuring proposal, as it would effectively require the government to raise EUR120 million worth of outstanding credits to the airline. CONTACT: AIR LIB 42 Rue F. Forest Imm. Le Sommet 97122 Jarry-Baie Mahault Phone: +590-(0)5.90.32.56.00 Fax: +590-(0)5.90.26.64.02 METALEUROP NORD: May Close Noyelles-Godault Factory Soon -------------------------------------------------------- There is a big possibility that Metaleurop SA's lead and zinc smelting plant at Noyelles-Godault will be shut down now that its chairman has announced production will be halted within the next five to eight days. Metaleurop Nord has been producing lead and zinc for over a century now; and the site at Noyelles-Godault is by far the most polluted in the country, including an area of 45 square kilometres heavily contaminated by heavy metals. Cleanup of the site is estimated to cost around EUR150 million. Parent company Metaleurop SA decided to shutter the facility after abandoning restructuring plans for the plant, which are equally costly. There is now widespread indignation at the possibility of the group leaving it to its fate, with the government planning to take action on the matter. The problems started when Metaleurop's German shareholder TUI opposed plans to continue sustaining the production unit's operation through injection of additional funds. Metaleurop Nord's cumulative losses have amounted to an estimated EUR97 million in 2001 and 2002. CONTACT: METALEUROP Maxime ARNAUD Phone: +33 1 42 99 47 73 Mobile: + 33 6 74 93 21 83 Fax: + 33 1 40 75 09 63 E-mail: maxime.arnaud@metaleurop.fr SCOR: Pursues "Back on Track" Plan for the Year ----------------------------------------------- At the motion of Denis Kessler, the Board of Directors has decided to submit a series of proposals to the forthcoming General Meeting of Shareholders to adopt best practice in the field of corporate governance, which will entail a change in the composition of the Board and its procedures. Patrick Thourot is appointed Chief Operating Officer. Jean-Luc Besson is appointed Chief Reserving Actuary and Yvan Besnard is appointed Chief Internal Auditor. The Board approved the decision to raise SCOR's holding in Irish Reinsurance Partners from 42% to 47%. The Board also approved the proposition to sell Commercial Risk Partners, whose activity is now considered non-strategic, and to cease underwriting new business. The Board noted the implementation of the first stages of the Group's reorganization and expressed its encouragement to Denis Kessler and all members of Group personnel to persevere with the "Back on Track" plan. I - Corporate governance to match best practice As mandated by the Board of Directors on November 5, 2002, Allan Chapin, a non-executive Director, presented his proposals aimed at strengthening the Group's corporate governance, with particular reference to the recommendations of the Bouton report in France and to the Sarbanes/Oxley Act in the United States. The Board has acted immediately to apply these; other measures will be laid before the forthcoming General Shareholders' Meeting. Regarding the composition of the Board, the following decisions were adopted: - Non-executive directors to be in the majority; - A wider array of expertise comprising financing and industrial experts; - A more international Board, expanding the proportion of non- French nationals, or Directors with international experience, from 20% today to 50% ultimately; - No shareholder, excepting special provisions, should be represented by more than one Director on the Board. The following decisions were approved regarding Board procedures - New description and new composition of Board Committees The Board has decided to form 4 committees: - A Risks Committee, to identify major risks facing the Group, and in particular to assess its main technical and financial commitments; - A Strategic Committee; - An Accounts and Audit Committee, henceforth consisting exclusively of independant Directors; - A Compensation and Nominations Committee. - An annual evaluation of the workings of the Board, the principal conclusions of which will figure in the Annual Report. The current Board will close the financial statements for the full year 2002 on Tuesday April 1. All current Board members will resign during the next General Meeting, which will be called upon to elect members of the new Board. II - Appointment of Patrick Thourot as Chief Operating Officer At the motion of Denis Kessler, the Board approved the appointment of Patrick Thourot as Chief Operating Officer. He replaces Serge Osouf who has decided to take up his retirement rights. III - Bolstering Group internal controls - Jean-Luc Besson is appointed Chief Reserving Actuary. This position, announced in the "Back on Track" plan, will report directly to the Chairman. Jean-Luc Besson will be in charge of ensuring consistency of reserving policies within the Group, working with outside actuaries, and will report on his findings to the Board. - Yvan Besnard is appointed Chief Internal Auditor. He too will report directly to the Chairman. On top of a traditional role, he will namely be in charge of ensuring strict enforcement of decisions regarding underwriting and reporting procedures. These appointments will reinforce the following and control of the Group's commitments. IV - Reorganisation of the Group's operating structures The Board was informed that reorganisation of the Group's operating structures, to be presented to the Board on February 28 and announced on March 3, had begun. V - Raise of SCOR's stake in Irish Reinsurance Partners (IRP) SCOR put in an offer to buy a 10% share of IRP. Given that another stakeholder chose to exercise its preemptive rights, SCOR increased its stake by 5%, raising its holding from 42% to 47%. (Pending approval from the Irish Authorities.) By raising its stake in IRP, a retrocession vehicle created by the Group at the end of 2001, SCOR will consolidate a greater proportion of underwriting profits. This initiative is in keeping with the "Back on Track" plan, in which SCOR decided to focus primarily on profitability. VI - Decisions regarding Commercial Risk Partners The Chairman informed the Board that the activity of CRP is henceforth considered non-strategic. The Board was also informed of his decision to cease underwriting new business at CRP. The Chairman put forward the proposal to sell CRP which was approved by the Board. J‚r“me Faure has been entrusted with the sale. The Board was informed that Graham Pewter, Chairman & CEO of CRP, and Fran‡ois Bertrand, Chief Operating Officer and Chief Actuary, have resigned. VII - Employee participation in the success of the "Back on Track" plan The success of the "Back on Track" plan depends on the vitality and skills of SCOR's teams. Pending approval at the forthcoming Shareholders' Meeting, the Board of Directors will establish an innovative stock option plan for all Group employees, in France and abroad, excluding senior executives. The proposed plan is for immediate allocation of: - the equivalent to one month's salary in stock options, - increased by the allocation of an additional half-month's salary in stock options if 2003 ROE exceeds 10%, - completed by the allocation of a further half-month's salary in stock options if 2004 ROE exceeds 12%. This measure is designed to give all employees a stake in the Group's return to profitability, symbolizing the Board's confidence in the quality of SCOR's personnel and in the future of the Group. VIII - Timetable Given the restructuring process and the reorganisation underway, the Board of Directors has set the following timetable of announcements for the coming months: 2002 premium volumes: February 14, 2003 2003 renewals & presentation of the new Group organization chart: March 3, 2003 FY 2002 results: April 2, 2003 General Meeting of Shareholders: May 15, 2003 VIVENDI UNIVERSAL: Completes Sale of Stake in Eurotel to Antenna ---------------------------------------------------------------- Vivendi Universal has completed the sale of its 49% stake in business communications provider Eurotel to Data operator Antenna Hungary, says Europemedia, without mentioning the purchase price. The sell-off follows the unloading of the company's Hungarian telecom division, Telecoms Hungary, to Venture Capital Firms. Media giant Vivendi Universal is selling assets to reduce EUR19 billion of debt load incurred under the management of former chairman Jean-Marie Messier. Eurotel provides communications services to banks, government bodies and corporate clients, offering broadband data transmission and Internet access through its own fiber-optic network in Budapest. The merging of 11 companies into V-fon last year created Vivendi Telecom Hungary Tavkozlesi Szolgaltato Rt. The companies include BakonyTel, DunaTel, EgomCom, KisdunaCom, V-com, V-net and several small Vivendi. The newly merged company had registered capital of HUF20 billion (USD 80.4 million) and a workforce of 1,200. CONTACT: VIVENDI UNIVERSAL 42 avenue de Friedland 75380 Paris Cedex 08, France Phone: +33-1-71-71-10-00 Fax: +33-1-71-71-11-79 Home Page: http://www.vivendiuniversal.com Paris Antoine Lefort Phone: +33 (1).71.71.1180 Alain Delrieu Phone: +33 (1).71.71.1086 New York Anita Larsen Phone: (1)212.572.7082 ============= G E R M A N Y ============= BANKGESELLSCHAFT BERLIN: Might Lose Potential Acquirers ------------------------------------------------------- The Berlin government might lose a potential buyer for Bankgesellschaft Berlin AG if it continues to delay sell-off talks with potential acquirers. U.S. investors Christopher Flowers and Texas Pacific's David Bondermann have threatened to withdraw if the process is further delayed, says Manager Magazine. The ailing German bank has been in search for a new investor to help it through its financial difficulties since October last year. It denied during that time speculations of its insolvency. In September, the Berlin government, through the office of Finance senator Thilo Sarrasin, officially granted BGB Capital Partners, a consortium of Texas Pacific Group and former investment banker J. Christopher Flower, and Dallas-based Lone Star to continue evaluating the books of the Berlin state bank in preparation for the acquisition of the company. Lone Star dropped out of bidding in December. A consortium made up of Germany's savings banks and the Norddeutsche Landesbank (NordLB), as well as US financier Wilbur L Ross, also dropped out of bidding in September. Mr. Flowers and Mr. Bondermann denied plans of breaking up the business upon acquisition. They said it is a "long term investment" and that the bank is well positioned with a strong local presence, which can be expanded. Mr. Flowers, however, said it will take five years to achieve a turnaround of the bank. According to the report, the bidders intend to keep Mr. Vetter as chairman of the bank, but they would add one or two new management board members and newly appoint the supervisory board. The city-state of Berlin owns 81% of BGB after a EUR1.7 billion (US1.66 billion) capital increase in 2001. NordLB holds 11%. Berlin is selling the bank to reduce its huge debt, which is estimated close to EUR50 billion. CONTACT: BANKGESELLSCHAFT BERLIN AG Alexanderplatz 2, Postfach 110801 D-10178 Berlin, Germany Phone: +49-30-245-500 Fax: +49-30-245-509 Homepage: http://www.bankgesellschaft.de Contacts: Dieter Feddersen, Chairman, Supervisory Board Norbert Pawlowski, Managing Director TEXAS PACIFIC GROUP 301 Commerce St., Ste. 3300 Fort Worth, TX 76102 Phone: 817-871-4000 Fax: 817-871-4001 Contacts: Jim O'Brien, Chief Executive Officer BANKGESELLSCHAFT BERLIN: Pretax Loss Is EUR577 MM - Report ---------------------------------------------------------- The pretax loss of Bankgesellschaft Berlin AG increased to EUR577 million in 2002 from EUR59 million in 2001, says Wirtschaftswoche, citing internal company documents. But the bank's operating loss after risk provisions in November and December narrowed by EUR44 million year-on-year, the report says. The government is selling the bank in what is said to be the most expensive and politically charged sale in years. In 2001, the city-state injected EUR1.75 billion (US$1.6 billion) in fresh capital to keep the bank from collapsing under the weight of controversial property loans and real estate investments. In a previous TCR-EUR report, Finance Senator Thilo Sarrazin, who is leading the auction, was said to be hopeful that the deal would be closed early this year. Schroder Salomon Smith Barney is advising the government on the sale. Bankgesellschaft Berlin is the parent of several smaller German banks, including Berliner Bank, Berlin Hyp, and Landesbank Berlin, the central bank for Berlin's savings banks. DAB BANK: Sells Direct Anlage Bank to Bank Sarasin -------------------------------------------------- Bank Sarasin & Cie AG acquired the wholly owned unit of German online broker DAB Bank AG, Direct Anlage Bank (Switzerland) AG, for an undisclosed amount. DAB Bank, whose owner HVB reportedly has plans of divesting, recently sold its online broker SelfTrade to rival brokerage agency, Fimatex. The transaction was valued at EUR62 million (US64.9 million) in cash, or 1/20th of the US$1.28 billion (EUR1.22 billion) value it had in 2000. Self Trade is considered as casualty of the current crisis in on- line brokering industry. The failure ends DAB's hope of expanding outside Germany into France, UK, Spain and Italy. DAB disposed of the business in order to prioritize reaching profitability for the year. It closed its Swiss division previously. The group's loss widened to EUR15.4 million in the third quarter of 2002, from EUR12.9 million in the second, and it has since taken steps to cut costs. Following the sale of Swiss and French units, break-even on a pretax level is expected to be achieved for 2003 on a group level, a DAB spokesman said. DAB recently said its pretax results for 2002 will be burdened by some EUR148 million in write-offs, some EUR20 million of which are due to resizing costs in Germany and some EUR125 million resulted from final consolidation effect from the sale of the Swiss and French units. The bank said it will no longer need to depreciate the goodwill for Self Trade amounting to around EUR164 million. DEUTSCHE TELEKOM: Drops 2003 Option Allocation for Management ------------------------------------------------------------- Deutsche Telekom will not issue any options from its 2001 Stock Option Plan (SOP) to the company's Board of Management and managers this year. The Board of Management and the General Committee of the Supervisory Board agree that it would not be appropriate to assign stock options this year in view of the results anticipated for the Group in 2002, the consistent course Deutsche Telekom is on to reduce debt, and the current capital market environment. The Chairman of the Board of Management of Deutsche Telekom, Kai- Uwe Ricke, stressed: "We have successfully implemented or introduced a whole range of measures over the past weeks and months. Absolute priority must now be given to continuing our consolidation policy in order to achieve our debt-reduction goal by the end of 2003. It does not seem appropriate in this situation to issue options to management. The decision on the form in which options are to be issued in the future will depend on the market and company situation in each case." By not allocating options from the SOP, the entire management is sending a clear signal to shareholders. HVB GROUP: Moody's Downgrades Financial Strength to C- ------------------------------------------------------ Moody's Investors Service downgraded Bayerische Hypo- und Vereinsbank's (HVB's) financial strength rating to C- from B-. Its senior unsecured deposit and debt ratings were lowered to A3 from A1. The outlook on long- and short-term debt and deposit ratings and financial strength rating is stable. The following ratings of HVB were downgraded: Bayerische Hypo- und Vereinsbank AG: A1 to A3 Senior long-term debt, issuer and deposit ratings; Aa1 to Aa3 mortgage and Aaa to Aa2 public-sector Pfandbriefe; A2 to Baa1 long-term subordinated debt; A3 to Baa2 subordinated Tier 3; B- to C- bank financial strength rating. The long-term unsecured ratings of various rated subsidiaries were also downgraded as follows: - HVB Bank Ireland: Issuer and deposits ratings to A3 from A1. - Bank Austria Creditanstalt AG: To A2 from A1 Senior long-term (non-guaranteed) debt and deposit ratings; A2 to A3 (non- guaranteed) subordinated debt. - Bayerische Hypo- und Vereinsbank AG, Paris Branch: A1 to A3 Senior long-term debt and deposits, - Bayerische Hypo- und Vereinsbank AG, Singapore Branch: A1 to A3 Senior long-term debt; A2 to Baa1 subordinated debt rating. - Bayerische Hypo-und Vereinsbank AG, Hong Kong Branch: A1 to A3 Senior long-term debt; A2 to Baa1 subordinated debt rating. - HypoVereinsbank Overseas Finance N.V.: A1 to A3 Senior long- term debt rating; A2 to Baa1 long-term subordinated debt. - HypoVereinsbank Finance N.V.: A1 to A3 Senior long-term debt rating; A2 to Baa1 long-term subordinated debt. - HVB Banque Luxembourg S.A.: A2 to A3 Issuer rating and deposit ratings; A3 to Baa1 subordinated debt; Baa1 to Baa2 preferred stock rating;. - HVB Funding Trust, II, III, IV, V, VII, VIII...A3 to Baa2 preferred stock rating. -Bayerische Hypotheken-und Wechsel Bank AG: A1 to A3 Senior long- term debt; A2 to Baal subordinated debts; Aa1 to Aa3 mortgage and Aaa to Aa2 public sector Pfandbriefe. The following ratings remain under review for possible downgrade: - HVB Real Estate Bank AG: A1 Senior long-term debt and deposit ratings; Aa1 mortgage and Aaa public-sector Pfandbriefe; A2 long- term subordinated debt; C+ bank financial strength rating; P-1 short-term deposit. - HVB Banque Luxembourg S.A.: A3 Issuer rating and deposit ratings; Baa1 subordinated debt; Baa2 preferred stock rating; P-1 short-term ratings; C+ financial strength rating. - Wuerttembergische Hypothekenbank AG: A2 senior long-term debt and long-term bank deposits; A3 subordinated debt; Aa2 mortgage and Aa1 public-sector Pfandbriefe; P-1 short-term deposit rating; C+ financial strength rating. - Westfaelische Hypothekenbank AG: A2 senior unsecured and long- term bank deposits; A3 subordinated debt; Aa2 mortgage and Aa1 public sector Pfandbriefe. P-1 short-term deposit rating; Bank financial strength rating at C. - Westhyp Finance BV: A2 Senior long-term debt; A3 subordinated debt; P-1 short-term rating. These ratings were not under review are affirmed: - Bayerische Hypo- und Vereinsbank AG: Short-term deposit rating at P-1. - Bayerische Hypo- und Vereinsbank AG, Singapore Branch: Short- term rating at P-1. - Bayerische Hypo- und Vereinsbank AG, Paris Branch: Short-term rating at P-1. - HVB US Finance Inc: P-1 Short-term Ratings - Vereinsbank Finane (Delawar) Inc: P-1 Short-term ratings - HypoVereinsbank Overseas Finance N.V: P-1 short-term ratings - Bank Austria AG: Bank financial strength rating at B-; P-1 short-term deposit rating. - HVB Ireland: Bank financial strength rating at C-; P-1 short- term deposit rating. The rating action, which affected approximately US$365.4 Billion of debt securities, follows the review process initiated in October when the Munich-based company announced unexpected sharp rise in loan loss provisions for the remainder of 2002, along with major restructuring plans. According to the rating agency, "These rating actions reflect Moody's belief that HVB's fundamentals remain structurally affected by the group's persistently weak recurring profitability, especially in the German market." But Moody's noted that HVB seems now committed to more drastic cost reductions, and at such, expects to see improvements in this year. Yet it warned that reducing credit risk concentration remains difficult considering the size of HVB's loan portfolio and the legacy of its lending focus during the last decade. It mentioned that HVB has the largest loan portfolio among all German banks and has exposure to troubled industries and corporates. Moody's further advised that the most difficult hurdle the bank would face is in structurally boosting its revenues in the German market, saying that it will take some time until the bank can restore better profitability. Considering this, the rating agency said the short-term impact on HVB's rating of the planned separation from its mortgage bank subsidiaries should be relatively neutral. Although HVB will benefit from reducing its exposures to the difficult German commercial real estate market, the radical restructuring plans will absorb management attention and could strain HVB's financial resources, it said. Moody's also cautioned that spin-off prompts material uncertainty for the three mortgage bank subsidiaries. Consequently, Moody's is maintaining its review for possible downgrade on these banks' rating. HVB's new ratings and stable outlook continue to reflect HVB Group's position as one of Germany's and Europe's major financial institutions, says the rating agency. HVB is Germany's second largest banking group. As of 31 December 2001, it had consolidated total assets of EUR728 billion. KINOWELT: Kolmel Brothers Completes Re-purchase Transaction ----------------------------------------------------------- Michael and Rainer Kolmel have reacquired Kinowelt, the insolvent German film production and distribution company they previously managed as board members. According to Frankfurter Allgemeine Zeitung, insolvency trustee Wolfgang Ott confirmed the brothers had already paid the acquisition price. German savings bank Sparkasse agreed in October to sell the business to the people who founded it around 19 years ago. It is believed that the brothers bid EUR32 million for the company's core business and that the Sparkasse group has agreed to provide EUR23 million in credit for a possible takeover, the papers add. Mr Ott said that newly founded company Neue Spielfilm Vertriebs- und Marketing GmbH would take over Kinowelt's operations with immediate effectivity. The Kolmel brothers plan to move its headquarters to Leipzig before restructuring the business. Kinowelt filed for insolvency in December 2001 with losses of more than EUR300 million. CONTACT: KINOWELT Infanteriestr. 19, Haus 6 D-80797 Mnchen Phone: 0 89/3 07 96-85 00 Fax: 0 89/3 07 96-80 00 E-Mail: info@kinowelt.de Homepage: http://www.kinowelt-video.de Contacts: Dr. Jerry Payne, Managing Director PHILIPP HOLZMANN: To Unload Austrian Subsidiary to Wolff & Muller ----------------------------------------------------------------- Wolff & Muller will acquire the Austrian subsidiary of insolvent German construction group, Philipp Holzmann, says Frankfurter Allgemeine Zeitung. The purchase price was undisclosed. Philipp Holzmann filed for insolvency in March after a frantic last-ditch attempt to broker a rescue plan failed, two years after its dramatic 1999 rescue orchestrated by Chancellor Gerhard Schroeder. The company had 164 units before the filing. In October, the company's insolvency administrator Ottmar Hermann awarded German liquidation specialists Perlick & Partner the contract to auction the German building group's assets. Perlick & Partner is to auction 6,500 items of economic assets, including machinery and containers in three parts. The net proceeds of the auction are to be transferred to the administrator. Ast Holzmann, the Austrian subsidiary, has a turnover of approximately EUR172 million at the close of the last financial year. It has reduced its workforce by roughly 250 over the last few months. It operates in Austria, Poland, Hungary, and the Czech Republic. Eastern European construction activities account for roughly a quarter of the company's annual turnover. CONTACT: PHILIPP HOLZMANN Taunusanlage 1 60299 Frankfurt, Germany Phone: +49-69-2-62-1 Fax: +49-69-2-62-433 Home Page: http://www.philipp-holzmann.de ========= S P A I N ========= AUNA OPERADORES: Reacquires Carlton's 6% Stake in Quiero TV ----------------------------------------------------------- Auna Operadores de Telecomunicaciones SA was forced to buy Carlton Communications PLC's 6 percent stake in its liquidated digital broadcaster Quiero TV for over EUR7.3 million. Without citing a source, La Gaceta de los Negocios said Auna returned the amount Carlton paid for the Quiero TV stake with interest, as the U.K. broadcaster had an option to sell the holding if the project failed. Auna also recently acquired the 18% stake of Catalan producer Media Park and is expected to acquire the remaining 27% of the defunct digital TV platform, mainly owned by regional savings banks and Grupo Planeta unit Sofisclave 98. The acquisitions effectively increased Auna's stake in the television company to 73%. In an earlier report of TCR-EUR, the Spanish company was expected to present a loss of EUR500 million for the full-year to December 31 in a scheduled press conference together with an announcement of the creation of a new business unit Auna Grandes Clientes, whose aim is to obtain a 16% share of the market for large telecommunication clients in 2007. Auna groups the telecom assets of its shareholders: Spanish energy firms Endesa (30%) and Uni›n El,ctrica Fenosa (19%), and Santander Central Hispano (SCH, 24%). It includes Spain's fixed-line provider Retevision--in place for official replacement during the press conference--as well as mobile carrier Amena, and ISP eresMas. It has consolidated its cable operations (Madritel, Menta, Able, Supercable Andalucia, and Telecom Canarias) as Aunacable and it is combining them with Retevision. Earlier losses of the company have forced the closure of its 49%- owned Quiero TV unit. CONTACT: AUNA OPERADORES DE TELECOMUNICACIONES Paseo de la Castellana, 83-85 28046 Madrid, Spain Phone: +34-91-202-41-00 Fax: +34-91-202-51-71 Home Page: http://www.auna.com Contact: Luis A. Salazar-Simpson Bos, Chairman Miguel Iraburu Elizondo, Managing Director Carlos Lopez Casas, Finance Director ============= U K R A I N E ============= UKRAINAIAN BANK: Fitch Affirms Long-term Rating at 'CCC+' --------------------------------------------------------- Fitch Ratings has affirmed the Long-term 'CCC+', Short-term 'C', Individual 'D' and Support '5T' ratings of First Ukrainian International Bank. The Outlook for the Long-term rating is Positive. While recognizing the improved credit risk procedures and more conservative risk appetite of the bank, the international rating agency notes that profitability of the bank, which has been under pressure due to competition, is not strong. It also says that the bank's loan book is very concentrated by customer and general loan loss reserves are low. It noted that partly as a result of the lack of suitable lending opportunities, FUIB maintains a significant pool of liquid assets. Fitch also says FUIB's equity/assets ratio was reasonable at end- August 2002. However, this needs to be viewed in the light of a high level of fixed assets the low general loan loss reserve (LLR). Nevertheless, the bank's capital/risk weighted assets ratio, calculated broadly in line with Basle principles, was strong. FUIB was founded in 1991 and has a split head office - one in the industrial city of Donetsk, southeastern Ukraine, and the other in Kiev, the capital. At end-2001, FUIB was one of the ten largest banks in Ukraine by assets, with its main clients operating in the trade, machine building, metallurgical, chemicals and agriculture/food sectors. FUIB currently has ten branches and 38 sub-branches. The International Finance Corporation, the European Bank for Reconstruction and Development and the Deutsche Investitions-und Entwicklungsgesellschaft mbH each own 10% of the bank; and Fortis, following its acquisition of Mees-Pierson, owns 20% of the bank. At end-2002, a further 49% stake was held by Azovstal Trade House, a company with substantial industrial interests, and ultimately controlled by a leading Ukrainian businessman. =========================== U N I T E D K I N G D O M =========================== AMEY PLC: Might Receive Bid From Non-UK Company - Source -------------------------------------------------------- A non-U.K. company seeking entry into the U.K. market for private finance initiative work might bid for support services provider Amey, a large investor in the company told Dow Jones. The investor who chose to remain anonymous said French construction group Vinci SA or Bouygues SA is planning to offer a bid to the U.K.-based company. He said either of the two is positioned to realize the value from Amey's toll road construction business. The report says neither Vinci nor Bouygues' road construction arm, Colas, was available for official comment. But spokespersons for both companies denied knowledge of any interest in Amey. The investor considers Amey a quality business "at the ground level." The company's order book worth is around GBP5.5 billion, excluding its one-third share in the Tube Lines Ltd. public private partnership for redeveloping the London Underground. The investor said Amey's reputation for delivering value for money in PFI projects is also beneficial for construction companies looking to bid for future toll road projects in the U.K. Amey's tool road business is valued between GBP50 million and GBP100 million. But potential acquirers must be ready to take on debt of around GBP200 million. They can acquire option to take a one-third share of the Tube Lines project in exchange for GBP60 million financing which they need to raise before the end of June. The investor estimated the "equity value" of Amey, including assets such as its order book, at roughly GBP200 million. Shares in Amey went down more than 90% in 2002 as investors gradually lose confidence in the company. The drop in share value resulted to the resignation of Chief Executive Brian Staples on December 31. Two finance directors of the company also departed from the company's board, further aggravating the situation. The company issued several profit warnings and changed its accounting for contract bidding costs. The latter turned an underlying profit of GBP55 million in 2001 into a GBP18.3 million loss. CONTACT: Anthony Cardew, CardewChancery Phone: 020 7930 0777 BRITISH ENERGY: Posts Circular on Sale of Bruce Power ----------------------------------------------------- Proposed Disposal of interests in the Bruce Group and Notice of Extraordinary General Meeting Schroder Salomon Smith Barney is acting for British Energy and no one else in connection with the proposals outlined in this document, and will not be responsible to any other person for providing the protections afforded to clients of Schroder Salomon Smith Barney or for providing advice in relation to such proposals. Your attention is drawn to the letter from the Chairman of British Energy which is set out on pages 3 to 10 of this document and which recommends you to vote in favour of the proposed Disposal. Notice of an Extraordinary General Meeting of British Energy, to be held at The Murrayfield Stadium Conference Centre, Edinburgh EH12 5PJ at 11.00 am on 10 February 2003, is set out at the end of this document. Whether or not you intend to be present at the meeting, please complete and return the enclosed Form of Proxy for use at the meeting as soon as possible and in any event so as to be received by the Company's registrars, Lloyds TSB Registrars, SEA 9441, The Causeway, Worthing BN99 6ED, no later than 11.00 am, on 8 February 2003, being 48 hours before the time appointed for the holding of the meeting. View details of the full Circular: http://bankrupt.com/misc/britishenergy.htm DUNLOP STANDARD: S&P Lowers Long-term Corporate Credit Rating ------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit ratings on Dunlop Standard Aerospace Holdings PLC to 'B' from 'B+'. It also downgraded its senior unsecured debt rating on Dunlop's US$225 million notes due May 15, 2009, to 'CCC+' from 'B-'. The outlook is negative. The rating actions reflect that the downturn in the group's commercial aerospace markets in 2002 has been greater than expected. Standard & Poor's credit analyst Leigh Bailey says, "uncertainty over the timing of recovery is expected to slow any improvement in the group's very aggressive credit profile and could place pressure on compliance with financial covenants in 2003." The ratings highlight Dunlop's position as a relatively small supplier with a large amount of debt. It has very limited flexibility due to a challenging debt amortization program and limited headroom on financial covenants. Its free cash flows were negative GBP10.8 million (US$17.4 million) in the nine months to Sept. 30, 2002. The company's limited headroom within its financial covenants could be in risk of a break in the event that conditions deteriorate further, the rating agency cautioned. But despite limited headroom, S&P noted that Dunlop was fully compliant with covenants at Sept. 30, 2002. Mr. Bailey says S&P predicts prolonged downturn in commercial aerospace, and is worried that the group's challenging debt maturity profile, "may prove to be onerous in the current trading environment." The group's debt maturity profile includes debt amortizations totaling about GBP23.5 million in 2003. The negative outlook reflects Dunlop's exposure to the depressed commercial aerospace sector, the group's heavy debt burden, and the likelihood that market conditions will remain depressed over the medium term. DUNLOP STANDARD: Says Financial Outlook Remains Positive -------------------------------------------------------- Dunlop Standard Aerospace Holdings plc stated Wednesday that its financial outlook remains positive despite the recent adjustment of its long-term corporate credit ratings by Standard & Poor's. David Shaw, Chief Executive Officer commented, "Dunlop Standard believes that our mix of aftermarket and military business is relatively sheltered from current trends in the large commercial aircraft markets. We expect our 2003 performance to benefit from continued strength in both the Regional and Military aircraft markets." In addition, Mr. Shaw advised, "Doughty Hanson, as a majority shareholder, remains very committed to the business. Doughty Hanson has invested over 160 million pounds in Dunlop Standard, which includes 5 million pounds of new preferred share capital in September 2002, and they have made a further commitment of an additional 5 million pounds of new preferred share capital by 30th June 2003 to fund ongoing growth programs." David Unruh, Chief Financial Officer, added, "Under the terms of our current financing agreement, in 1998 Dunlop Standard was required to use derivatives and other hedging devices to fix our initial interest rates until November 2002. These hedging devices resulted in an 8.5 million pound financing cost in 2002, which will not be incurred in 2003. Additionally, 2002 capital expenditures included approximately 15 million pounds for our new CF34 program. This major new program was fully operational by the fourth quarter of 2002, and no similar major new program expenditure is planned for 2003. We expect a significant improvement in 2003 cash flow as a result of these items. Our principal repayments due in 2003 and 2004 are roughly the same as the repayments made in 2002." David Shaw also confirmed, "We believe that we have sufficient facilities and cash flow generation to fund our existing and new growth programs." Dunlop Standard is a leading integrated supplier of aftermarket parts and services to the global aerospace and defence industry. Dunlop Standard has a diversified portfolio of businesses in Engine Repair & Overhaul, and Design & Manufacturing markets. Dunlop Standard's EBITDA has grown from 60 million pounds when acquired by Doughty Hanson in 1998 to approximately 90 million pounds for the last twelve months ending 30th September 2002. CONTACT: DUNLOP STANDARD AEROSPACE HOLDINGS PLC David Unruh, CFO Phone: +1-204-987-8864 Home Page: http://www.dunlopstandard.com JAEGER: Coats to Sell Loss-making Chain to Richard Thompson ----------------------------------------------------------- A vehicle controlled by entrepreneur Richard Thompson will acquire Jaeger and Viyella fashion business, Britain's oldest retail brand, from thread manufacturing group Coats. The loss-making chain, which Coats Paton bought in 1967, operates nearly 250 shops. It was put up for sale through investment bank HSBC last year for GBP50 to GBP60 million. But Mr. Thompson's offer is thought to involve only a nominal sum, says The Telegraph. "This reflects larger than expected losses from deteriorating trading over the past four months and the fact that some freeholds could be excluded from the sale," the report says. Viyella, whose brand dates back in 1784, has most of its current stores being concessions outlets. Jaeger brands, on the other hand, can be traced back to 1884. According to the report, the brand has been "dogged by a tweedy, middle-aged image." That is why the company hired Bella Freud to create designs for women customers in their 20s. Accountant Lewis Tomalin founded Jaeger to exploit the theory of Stuttgart zoology professor Gustav Jaeger, who thought people would lead healthier lives if they wore clothes made only from animal hair. KINGFISHER PLC: Sells Retail Park Portfolio for GBP695 Million -------------------------------------------------------------- Kingfisher plc on Wednesday announced that its specialist retail property company, Chartwell Land, has sold 15 retail parks, plus a further five retail parks under development, to a consortium composed of Pillar Property plc, Hercules Unit Trust, The Junction Limited Partnership and Morley Fund Management. The deal includes a GBP695 million cash payment on completion. The sale of the portfolio, which is projected to have a book value of GBP557 million at completion with an annual rental income of GBP31 million, will generate an estimated exceptional pre-tax profit of GBP120 million after associated transaction and restructuring costs of around GBP18 million. The sale at GBP695 million, which is subject to a final adjustment in respect of work in progress on two of the sites currently under development, represents a surplus of GBP345 million over the original œ332 million cost of acquiring the portfolio. Kingfisher expects to pay tax of around GBP55 million on this transaction. Kingfisher's Chairman Francis Mackay said: 'This sale takes advantage of the current market demand for quality retail property and will be earnings neutral in the year to 31 January 2004. The proceeds of the sale will be used to reduce Kingfisher's debt thereby strengthening the Group's balance sheet. It is another step forward in Kingfisher's strategic transformation into an international pure-play home improvement retailer' Kingfisher continues to retain some GBP2 billion of property, of which around GBP800 million is in the UK, mainly occupied by B&Q. Credit Suisse First Boston and C B Hillier Parker advised Kingfisher. UBS Warburg provided strategic advice to Chartwell Land. Kingfisher is Europe's leading home improvement retailer and is ranked number three in the world. The Company operates more than 600 home improvement stores in 12 countries and enjoys market- leading positions in the U.K., France, Poland and Taiwan. Sales for the Home Improvement sector for the year to 2 February 2002 were more than GBP5.8 billion, with retail profit in excess of GVP430 million. Kingfisher also has a strategic alliance with Hornbach, Germany's leading big box home improvement retailer, which operates 99 stores across Europe. Kingfisher's Electrical & Furniture business operates more than 830 stores in nine countries. It is Europe's third largest electricals retailing business by sales and number two by retail profit. As well as holding the leading position in France with Darty and BUT and the number two position in the U.K. with Comet, Kingfisher also enjoys leading positions in Belgium and in the Czech and Slovak Republics. Sales for the year to 2 February 2002 were more than GBP3.7 billion, with retail profit of GBP184 million. On 17 January 2003, Kingfisher announced the sale of its German electricals business, which operates 185 stores in Germany and Austria under the ProMarkt and Foto-Radio Wegert brands. CONTACT: KINGFISHER PLC Phone: +44 (0) 20 7724 7749 Ian Harding, Director of Financial Communications Phone: +44 (0) 20 7725 4889 Frederique Lepelletier, Head of IR, Continental Europe Phone: +33 (0) 1 42 27 7634 Jonathan Miller, Head of Corporate Comms, UK Phone: +44 (0) 20 7725 5713 Graham Fairbank, Head of Corporate Comms, France Phone: +33 (0) 1 43 18 52 26 The Maitland Consultancy Duncan Campbell-Smith, Phone: +44 (0) 20 7379 5151 MONOTUB INDUSTRIES: Under Members' Voluntary Liquidation -------------------------------------------------------- The Board of Monotub Industries plc resolved to put the company in members' voluntary liquidation during its extraordinary general meeting held Wednesday. The company has requested cancellation of admission of the ordinary shares of 5p each in the capital of the company from AIM. The cancellation will take effect from January 23, 2003. Monotub announced last month of the existence of a resolution to place the company in members' voluntary liquidation when it advised the public on the contract to sell its intellectual property, tooling, and certain other assets to Titan Washing Machine Limited. In a statement, the company says its cash assets after the discharge of the final creditors and contractual obligations represent less than 0.5 p per share. It adds that if Titan Limited is successful, the deferred consideration could represent a significant inflow of cash to the company. Under this procedure the company continues but does not trade and a Liquidator is appointed who is tasked with the agreement and settlement of any remaining creditor claims, handling of the cash that is received and distributing it to shareholders pro rata to their shareholding. The Board have put in place arrangements such that the liquidation and company registrar running costs of the Members' Voluntary Liquidation should not exceed o15,000 plus VAT and disbursements per annum on average, which means that the current resources provide at least three years during which the success or otherwise of Titan Limited in exploiting the Titan will become apparent. If and when the company receives any cash from the deferred consideration, this can be distributed to shareholders as a capital distribution up to the paid-up capital of the Company of GBP12 million. To see Monotub Industries' Financial Results: http://bankrupt.com/misc/Monotub.htm CONTACT: MONOTUB INDUSTRIES PLC Ian Green, Chairman James Hayward, Finance Director Phone: 020 7632 5910 RAGE PLC: Complexity of Business Makes Closure Inevitable --------------------------------------------------------- Video games company Rage was closed down after its receivers failed to prepare the company ready for sell-off as a going concern. The receivers admitted it was difficult to unwind the complex network of intellectual property rights upon which the business was built. Bank of Scotland, the company's bankers, appointed receivers over the assets and undertaking of the company following withdrawal of the group's banking facilities. According to the Herald, Hunter Kelly, of receiver Ernst & Young, said it was regrettable that complex legal issues had made it all but impossible to sell the business as a going concern. Mr. Kelly said, increasing complications posed by the number of license holders and owners of intellectual property contained within the games "made it illegal to hand over or give access to the information to interested parties." It had been hoped that some of Rage's video games licenses, and its four production studios, could have been sold to sustain the company. Following close down, individual Rage titles will now be sold on a game-by-game basis. The Liverpool-based company was in dire need of rescue after Bank of Scotland restricted its access to a GBP6-million overdraft facility, which was provided following a sharp fall in the company's share price. The company's woes, which started last year, stemmed from a failed expansion from developing games into publishing its own titles. Rage was forced to enter into negotiations with its bankers last March when its GBP15 million credit line from an outside investor was blocked by the sharp fall in share price. Rage now has only 17 employees. Its closure is expected to make 145 workers redundant. CONTACT: RAGE PLC Martins Bldg., Waters St. Liverpool L2 3SP, United Kingdom Phone: +44-0151 237 2200 Fax: +44-0151 237 2201 Home Page: http://www.rage.co.uk Contacts: Thomas John Blackburn Roberts, Chairman Paul J. Finnegan, Executive Deputy Chairman John Andrew Schorah, Managing Director BANK OF SCOTLAND Canada House 65-68 St. Stephen's Green, Dublin 2. Phone: 01 408 3500 Fax: 01 671 7797 Swift Code: EQUBIE2D E-mail: info@bankofscotland.ie Home Page: http://www.bankofscotland.ie ERNST & YOUNG INTERNATIONAL 5 Times Square New York, NY 10036 Phone: 212-773-3000 Fax: 212-773-6350 Home Page: http://www.eyi.com WHAT EVERYONE: Administrator Plans to Wind Up Business ------------------------------------------------------ The court-appointed administrator of What Everyone Wants plans to wind up the 31-year-old discount retail chain that collapsed amidst a fiercely competitive cut-price sector. Tom Burton, of Ernst & Young, resorted to the decision after failing to attract an offer of more than GBP10 million for the company. He had earlier hoped to sell the business "within days rather than weeks." According to The Herald, Mr. Burton said he could get more for creditors by selling off the company's stock and assets piecemeal, disclosing that the stock had a retail value of around GBP27 million. He reportedly received acquisition interests from retailers concerning the leases on the 130 stores. The transactions, individually or in chunks, is estimated to fetch around GBP5 million. After expenses, the disposals might net between GBP5 million and GBP10 million for creditors. The Glasgow-based business was put into administration in December after its South African owner, Tegaro, refused to help revive the business. Annual losses in the company reached GBP18 million. The company was worth GBP46 million when its founder Gerald and Vera Weisfeld sold it to Philip Green in 1991. Gerald Weisfeld was blamed for the company's troubles on recent management of the group by Brown & Jackson. The latter initiated numerous boardroom changes and took the chain downmarket in an effort to save it. CONTACT: ERNST & YOUNG INTERNATIONAL 5 Times Square New York, NY 10036 Phone: 212-773-3000 Fax: 212-773-6350 Home Page: http://www.eyi.com WHAT EVERYONE: Propose Closure to Affect 2500 Jobs Across U.K. -------------------------------------------------------------- The closure of 130 stores of What Everyone Wants in case the plan for its wind up goes through will lead to the loss of 2500 jobs across the U.K., including 700 in Scotland where it has 29 stores. Under the plan Tom Burton, of Ernst & Young, says the stores would continue to trade until shelves were clear, and process should be completed in around eight weeks. Employees of the retailer will then be given guaranteed statutory redundancy payments. It is known that assets of a money purchase pension scheme run for staff were held separately. The retail chain collapsed amidst a competitive cut-price sector that saw rival stores like Matalan operating big stores on out- of-town sites with low rents. Mr. Burton dropped efforts to find a buyer for the chain, which made operating losses of GBP18 million last year. The closure of the stores is understood to mean the disappearance from Britain's high streets of a well-known name founded 31 years ago. ************* 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. 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