/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/030321.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, March 21, 2003, Vol. 4, No. 57 Headlines * C Z E C H R E P U B L I C * UNION BANKA: Fails to Convince National Bank, License Revoked * F R A N C E * ALCATEL: Business Systems Plans Restructuring Measures ALSTOM: Receives Another Blow With the Delay of Queen Mary CANAL PLUS: European Union Antitrust Investigation on Hold LAGARDERE MEDIA: Posts Loss Due to Wind Down of Auto Unit VIVENDI UNIVERSAL: Diller Ends Temporary Assignment in VUE * G E R M A N Y * ALLIANZ AG: Announces Changes in Board of Management EM.TV & MERCHANDISING: Disney Chief Expects to Acquire Henson KIRCHMEDIA GMBH: May Be Forced to Offer Mandatory Takeover * I T A L Y * FIAT SPA: RAS Denies Interest in Bidding for Insurance Arm FIAT SPA: Potential Buyers in Deadlock Over Decision to Bid ILVA PALI: Invites Bidders to Purchase Branches of Business WIND: Enel Agrees to Acquire France Teleco's Minority Stake * N E T H E R L A N D S * GETRONICS N.V.: Dutch Court to Issue Ruling Before March 25 KONINKLIJKE AHOLD: Head of Deloitte Has Strong Ties With Ahold KONINKLIJKE AHOLD: 77 US CMBS Deals Unaffected by Exposure KONINKLIJKE AHOLD: Berman DeValerio Files Fraud Lawsuit * S W I T Z E R L A N D * ABB LTD: Appoints John Scriven as New General Counsel * U N I T E D K I N G D O M * BALTIMORE TECHNOLOGIES: Posts Loss Before Tax of GBP65.3 Million BEDE PLC: To Cut Jobs, Focus on Long-Term Value to Continue CHARLES SCHWAB: Pulls Out of U.K. Market, Sells Off Scottish Firm CHELTENHAM TOOLING: Administrators Put Business Up for Sale CORUS GROUP: To Face Lobbying for Revamp From Bondholders CORUS GROUP: Fate of Redcar Could Affect THPA Junior Notes EMI GROUP: Freezes Planned Acquisition of Boosey & Hawkes HP BULMER: Sells Surplus Land For GBP6.1 Million to Jennings INVENSYS PLC: Appoints Macfarlane New Non-Executive Director LAMONT HOLDINGS: Advises Public Regarding Cancellation of Shares MARCONI PLC: Ratings Lowered to 'D' on Failure to Pay PERNOD RICARD: Seeks Buyers for Closed Distilleries ROYAL MAIL: Major Customers Complain Against Alleged Abuses THISTLE HOTELS: Orb Free to Sell Hotels to Other Buyers TXU EUROPE: Requests to Enter Into Information Sharing Deal =========================== C Z E C H R E P U B L I C ============================ UNION BANKA: Fails to Convince National Bank, License Revoked ------------------------------------------------------------- Czech National Bank spokeswoman Alice Frisaufova revealed that CNB has decided to revoke Ostrava-based Union Banka's license after the bank failed to submit a realistic rescue plan that would guarantee a renewal of its payment capacities. The decision, however, is not legitimate yet. Hence, Union Banka will "remain a bank until the decision has come into force," Frisaufova added. An appeal to the decision can be launched by Union Banka within 15 days. According to Union banka chief executive Roman Mentlik, the bank wants to continue to work to meet the objectives of its strategic rescue plan, despite the recent decision of CNB. The bank will continue to operate in the extent allowed by the commercial code. Moreover, Mentlik said the CNB's decision was based on fears that the bank may not be able to withstand a run on deposits. "I think no bank is able to resist a massive attack of clients who want their deposits back," Mentlik added. CNB, Union banka did not prove it had removed shortcomings which made the CNB launch administrative proceedings on February 21 this year. "This fact necessarily makes the CNB conclude that Union banka is still breaking the legal duty to retain its payment capacity," Frisaufova added. =========== F R A N C E =========== ALCATEL: Business Systems Plans Restructuring Measures ------------------------------------------------------ Alcatel Business Systems, a French subsidiary of Alcatel, has notified its workers council that restructuring measures will be required due to the continuing weakness of the worldwide and domestic telecom market. As a result, the cost reduction program will be intensified and staff will be adapted to market conditions. In particular this will lead to 350 redundancies in 2003, impacting all of the company's activities. Alcatel Business Systems employs around 2,700 people. Alcatel Business Systems has proposed to begin negotiations with employee representatives in order to identify the most appropriate solutions and to agree on the methods to be employed. This announcement is part of the restructuring measures recently announced by the Group. About Alcatel Alcatel provides end-to-end communications solutions, enabling carriers, service providers and enterprises to deliver content to any type of user, anywhere in the world. Leveraging its long-term leadership in telecommunications network equipment as well as its expertise in applications and network services, Alcatel enables its customers to focus on optimizing their service offerings and revenue streams. With sales of EURO 16.5 billion in 2002, Alcatel operates in more than 130 countries. ALSTOM: Receives Another Blow With the Delay of Queen Mary ---------------------------------------------------------- Debt-laden French engineering group Alstom was forced to delay the planned float-out ceremony of the Queen Mary II, the world's largest cruise ship. The vessel has to wait for further dredging work in the Loire estuary by the Chantier de l'Atlantique shipyard in St.-Nazaire, where it is being built. The development is deleterious for the company, which is trying to win investor support for a EUR600 million rescue rights issue aimed at halving its EUR5 billion debt by 2005. Patrick Kron, the company's new chief executive, recently announced a disposal program, which includes its once most profitable division. The announcement is alongside his warning of a higher-than-expected loss for 2002. Alstom's marine division, which has St.-Nazaire as the biggest component, would also be on the block were it not for the fact that observers view it as virtually unsaleable, according to the Financial Times. The unit accounts for some 5% of group sales. The Chantier de l'Atlantique is unlikely to remain afloat in its current form even for another 30 months, the report said. The shipping business ran into troubles after the September 11 attack, which saw the market crumble and one of its largest customers, U.S.-based Renaissance Cruises, go bankrupt. Alstom's transaction with Renaissance involves the sale of eight ships, which the company was forced to take back after Renaissance collapsed since the deal was funded by vendor financing. Two of the vessels are still with the company, and are taking up annual maintenance worth EUR4.5 million. Alstom has not received cruise ship orders since September 2001. Its order for this year includes only a EUR72 million yacht and a scientific research vessel. The company is feared to face a gloomy prospect after it completes an order for 5 cruise ships by 2004. The impending war in Iraq is also expected to worsen condition in the cruise ship market. Alstom tried to diversify into liquefied natural gas and military vessels but had little success. A merger of the civilian shipyard with their military counterpart--a strategy copied from the U.K. and Italy--could be an option, but the prospect is still unlikely possible in the short term. CANAL PLUS: European Union Antitrust Investigation on Hold ---------------------------------------------------------- The European Commission has put on hold its investigation on anti-competitive practices that Canal Plus may have committed after recent events suggest it may not have been the case. European antitrust regulators earlier examined the long-term exclusive contracts between U.S. filmmakers and Canal Plus, part of Vivendi Universal. The Commission had suspended the probe after TPS, Canal Plus's main rival, signed a series of contracts with U.S. film studios, according to the Financial Times. This suggests that France's pay-TV market may have indeed been opened up. A spokeswoman for European Competition Commissioner Mario Monti said on Wednesday: "We are re-examining our analysis in the light of recent events in the market." The suspension is "indefinite" which means Canal Plus is likely to escape potential fines and penalties. But Canal Plus, together with TPS, may yet face pressure from the European Competition Commission since the formal closure of the investigation has not been signed yet. LAGARDERE MEDIA: Posts Loss Due to Wind Down of Auto Unit --------------------------------------------------------- At its meeting on March 14, 2003, the Supervisory Board reviewed the Full Year 2002 Financial Statements of LAGARDERE SCA. Consolidated Revenue The consolidated revenue for the year 2002 attained EUR13,216 million (compared to 2001 revenue of EUR13,295 million). Lagardere Media revenue rose 5.6% (7.8% on a comparable basis) to EUR8,095 million. This increase comes from the solid performance realized by the "Distribution & Services", "Lagardere Active" and "Book" divisions. Matra Automobile sales declined by 31.4%. The Espace minivan production was phased out in October 2002. In addition to that, the Espace experienced, for the months before, a significant erosion of its market share that is typical for a model that has reached the end of its cycle. Launched at the end of 2001, the new Avantime vehicle has not enjoyed the anticipated commercial success. Volumes delivered in 2002 are materially below expectations -including for the second half despite the entire product range being on the market. Full year 2002 EADS revenue was in line with its target of reaching a level close to 2001. The slight decline came, as expected, from the Airbus branch, which delivered 303 aircrafts versus 325 the year before. Consolidated Operating Income Lagardere Media Operating Income Lagardere Media contributed EUR+385 million of operating income, and grew by 9%. Excluding the additional three months in 2001 (December close instead of a September close historically) of the "Lagardere Active Broadcast" activity ("Radio" and "Audiovisual"), the operating income growth for Lagardere Media is 15.6%. "Hachette Livre" achieved an excellent performance in nearly all the publishing segments in France as well as in the U.K. with its operating income growing by +40%. "Lagardere Active" continued improving its results. Following the return to profitability in 2001, margins increased significantly in 2002. During the second half, the radio business segment benefited from the recovery in the advertising market. Moreover, the losses generated by the "Lagardere Active Broadband" branch (digital activities excluding Radio and Television) were once again significantly reduced. Given its strong internal growth, notably in its national distribution activity (particularly in the U.S. and in Spain) and despite the Virgin Megastore Network related development costs, "Hachette Distribution Services" increased its operating income by nearly 9%. The U.S. advertising market gradually showed signs of recovery in 2002, but was still in decline on a full year basis. Up against this unfavorable economic conditions, "Hachette Filipacchi Medias" managed to increase its operating income margin (9.1% versus 8.7% in 2001), as the result of the continued implementation of the profitability improvement plan. In conclusion, across these globally more difficult markets, the significant increase in operating income of Lagardere Media reflects the intrinsic qualities of its lines of businesses (first class competitive positions, strong internationalisation, balance cyclical and non cyclical activities) and the solid execution of the organic growth and profitability improvement plans. Other activities Operating Income In 2002, LAGARDERE SCA consolidated proportionally the EADS Group Income Statement at 15.10% and its Balance Sheet Statement at 15.07%. The EADS accounts have been restated in order to comply with LAGARDERE SCA French GAAP. Despite a difficult environment, especially for the civil aviation market and the space industry, EADS achieved its operational performance objective, that is an EBIT (Earnings before Interest and Taxes, pre-goodwill amortization and exceptionals) over 1.4 billion euros. In total, the EADS contribution to the LAGARDERE SCA consolidated accounts was EUR+63 million in operating income (compared to EUR+104 million in 2001). This decline derives, as expected, from the Airbus branch, which delivered 303 aircrafts versus 325 the year before. The Automobile segment reported an Operating Income of EUR+7 million (versus EUR+66 million prior year). The automobile Segment faced a steep and strong decline of its activities. This decrease stems from the end of the Espace model (Third generation), which production was stopped in October 2002 and from the commercial failure of the Avantime. At the end of February 2003, the decision was taken to stop the production of the Avantime. The Consolidated Operating Income for 2002 amounts to EUR+440 million (versus EUR+514 million in 2001). Interest Expense The Interest Expense in 2002 was EUR-331 million versus EUR-15 million for 2001. The 2002 figure includes an additional provision for depreciation of the T-Online shares of EUR-278 million before taxes (complementary to the EUR-157 million before taxes 2001 depreciation). The 2001 figure included the gain recorded on the sale of the EADS "Excess Shares" in 2001 (EUR+ 210million). Excluding these non-recurring amounts, the financial expense decreased to EUR-53million (versus EUR-68 million in 2001) primarily as a result of the reduction of the cost of debt. Non-Operating Income (Expense) Non-operating expense of EUR-371 million in 2002 includes EUR-266 million from Matra Automobile for the restructuring operations implemented in 2002 and the exit related costs. It also reflects the impairment of goodwill and other intangibles for EUR-40 million, restructuring charges for EUR-38 million (essentially media activities), and a EUR-21 million EADS contribution. Income Taxes The income tax is a positive EUR143 million in 2002. This reflects a profit of EUR+195 million, related to the reduction in the provision for the capital gains tax accrued following the sale of Club Internet in April 2000. This adjustment is primarily the result of the reduction of the capital gain tax rate to the long-term rate of 20.2%. The original provision was established based on the short-term capital gains tax rate of 36.43%. This tax will come due when the T-Online shares will be sold. It is now certain that the shares will not be sold before end of April 2003 which means that the group will benefit from the reduced capital gains tax rate. Goodwill Amortization And Minority Interests in Net Income do not present any significant variances. Income From Companies (Associates) Consolidated By The Equity Method This line amounts to EUR-33 million versus EUR+77 million in 2001. It includes a depreciation of the MultiThematiques stake for EUR-68 million. The CanalSatellite contribution has increased to EUR+16.5 million (compared to EUR+11 million in 2001 -before non recurring items of EUR+39 million). In summary, the Consolidated Net Loss is EUR-291 million (compared to EUR+616 million Net Income in 2001). To See Tables: http://bankrupt.com/misc/Lagardere.doc Balance Sheet The net bank debt at 2002 year end of EUR1,394 million includes the December 2002 financing of the ongoing Vivendi Universal Publishing assets acquisition of 1.2 billion euros. The net bank debt is to be compared with the Consolidated Net Worth of EUR3,914 million. Dividend The Company's managing partners decided to propose at the General Shareholders Meeting a net dividend of EUR 0.82/share (plus a tax credit of EUR0,41) identical to the prior year distribution. (*) This rate is calculated using comparable accounting periods (January to December 2002 versus January to December 2001). Including the impact of the additional 3 months of activity in 2001 for Lagardere Active Broadcast (Dec. close instead of a Sept. close historically), Lagardere Media published operating income growth is 9%. CONTACT: LAGARDERE MEDIA Investor Relations Alain Lemarchand Phone: 33 1 40 69 18 02 E-mail: alemarchand@lagardere.fr VIVENDI UNIVERSAL: Diller Ends Temporary Assignment in VUE ---------------------------------------------------------- Barry Diller, in full agreement with Vivendi Universal, announced that he is ending his temporary assignment as CEO of Vivendi Universal Entertainment. Jean-Rene Fourtou, Chairman and Chief Executive Officer of Vivendi Universal, will take over the position. He will work with Ron Meyer, President and Chief Operating Officer of Vivendi Universal Entertainment and his management team, which includes Stacey Snider, Chairman of Universal Pictures Group, Michael Jackson, Chairman of Universal Television Group, and Tom Williams, Chairman and CEO of Universal Parks and Resorts. Jean-Rene Fourtou said: "I would like to thank Barry Diller for his efficient, friendly support over the past few months, which have been a very difficult period for Vivendi Universal." ============= G E R M A N Y ============= ALLIANZ AG: Announces Changes in Board of Management ---------------------------------------------------- In its meeting on March 19, 2003, the Supervisory Board of Allianz AG has appointed Herbert Walter with immediate effect and Jan R. Carendi with effect from May 1, 2003 as members of the Board of Management of Allianz AG. Bernd Fahrholz (55), previously in charge for the department Allianz Dresdner Banking, has asked the Supervisory Board of Allianz AG to be prematurely released from his duties as a member of the Board of Management of Allianz AG. The Supervisory Board has acceded to this request in its meeting on March 19, 2003 and has expressed its gratitude and appreciation to him for his commitment in a difficult market environment. Bernd Fahrholz will also resign from his position as Chairman of the Board of Management of Dresdner Bank AG. It is intended that Herbert Walter (49) will succeed him. The Supervisory Board of Dresdner Bank AG will deal with the respective resolutory suggestions shortly. Herbert Walter has been with Deutsche Bank AG since 1983, most recently as member of the Group Executive Committee of Deutsche Bank and Global Head of Private & Business Clients. Jan R. Carendi (58) is taking on the responsibility for the department Americas from Michael Diekmann (48) effective May 1, 2003. Jan R. Carendi was Vice President and member of the Board of Management of Skandia, Stockholm. Michael Diekmann will become Chairman of the Board of Management of Allianz AG at the end of the Annual General Meeting on April 29, 2003, succeeding Henning Schulte-Noelle. The responsibility for the department Group Human Resources will remain with Michael Diekmann. EM.TV & MERCHANDISING: Disney Chief Expects to Acquire Henson ------------------------------------------------------------- Walt Disney Co. Chief Executive Officer Michael Eisner is hopeful that his company may be close to buying the owner of Muppets characters Jim Henson Co. from EM.TV & Merchandising. This follows the earlier cancellation of an agreement between Germany's EM.TV & Merchandising and Dean Valentine, former head of Viacom Inc.'s UPN television network and Walt Disney Co.'s TV production studio, for the sale of the former's 49.9% stake in Jim Henson Co. Mr. Heisner said during Disney's annual shareholder meeting in Denver that, he "would not be surprised to hear that there would be an announcement soon" about buying Henson. "I would not be surprised that the Walt Disney Co. would be finally culminating years of romance" between the two companies, he added. Mr. Heisner worked on the first muppets special in the 1960s and knew Jim Henson well. Referring to a USD100 million to USD200 million price range suggested in a question from a person in the audience, he commented: "I would be very surprised if it was anywhere near the pricing you were discussing". The Munich-company said last week it was "confident" that it would reach and agreement to sell Henson, the creator of Kermit the Frog and Miss Piggy, by the end of April. EM.TV is in talks with bidders regarding the asset it bought for EUR690 million (US$759.5 million) in 2000, in a bid to steady its finances after an expansion into Formula One car racing under former Chief Executive Officer Thomas Haffa left it with significant debts. The proceeds of the stake sale are expected to help the company pay back a EUR25 million (US$27.5 million) loan to finance a television venture. EM.TV's stock lost 17% of its value this year and is expected to experience another beating after the cancellation of the agreement. The company is now valued at EUR114 million, after shares dropped 55% in the past 12 months. CONTACT: EM.TV & MERCHANDISING Betastrasse 11 D-85774 Unterfohring, Germany Phone: +49-89-995-00-0 Fax: +49-89-995-00-11 Home Page: http://www.em-ag.de KIRCHMEDIA GMBH: May Be Forced to Offer Mandatory Takeover ---------------------------------------------------------- U.S. media billionaire Haim Saban may be forced to buy out minority shareholders in broadcaster ProSiebenSat.1 Media AG after agreeing to buy a controlling stake in Kichmedia. The transaction triggers mandatory takeover offer to all other shareholders under German takeover law. As the investor said he would "consider all options," sources suggested he could try to minimize his bid by asking for an exemption. Saban's lawyers could use the argument that ProSieben's dire situation as the reason for an exemption under the takeover law, sources close to the situation told Reuters. But the German stockmarket watchdog BaFin is expecting a mandatory takeover offer since "The law states that the deciding factor is whether more than 30% of the voting shares are bought," according to Sabine Reimer, spokeswoman for BaFin. But Reimer declined to comment on whether ProSieben could qualify as a restructuring case, according to the report. Saban needs to match the offer he made to KirchMedia or the weighted three-month average share price, whichever is higher, in order to make a full takeover bid. ProSieben's net profit dropped by 80% in 2002 but the company remained in the black. It has EUR754 million $801 million) in debt, but most of that is not maturing before 2005. CONTACT: KIRCHMEDIA GMBH & CO KGAA Rudolf Wallraf RW-Konzept GmbH Phone: +49 (0)9 99562324 Mobile: +49 (0)3 2678888 Hartmut Schultz Hartmut Schultz Kommunikation GmbH Phone: +49 (0)89 99806220 Mobile: +49 (0)170 4332832 SABAN GROUP in Germany: Bernhard Meising Phone: +49 (0)211 5775902 Elisabeth Ramelsberger Phone: +49 (0)211 5775913 Citigate Dewe Rogerson GmbH in USA: Stephanie Pillersdorf Phone: +1 212 687 8080 Citigate Sard Verbinnen ========= I T A L Y ========= FIAT SPA: RAS Denies Interest in Bidding for Insurance Arm ---------------------------------------------------------- The chief executive of Italian insurer RAS SpA, Mario Greco, denied reports that the company is interested in Toro Assicurazioni SpA, Fiat's insurance arm. "We haven't made and we don't plan to make an offer for Toro," Greco said at a press conference presenting the insurer's full- year results. "We are not interested." As part of the company's plan for a EUR5 billion recapitalization of its auto operations, Fiat is selling the insurance arm, and its aerospace arm, Fiat Avio, with hopes to raise EUR3 billion. Fitch last month commented on the planned sales saying, that the disposal of the profitable operations will result in a weaker underlying profit mix, as the group retains interest in underperforming operations. As a result, Fitch downgraded Fiat SpA's Senior Unsecured rating to 'BB+' from 'BBB-' and the company's Short-term rating to 'B' from 'F3'. CONTACT: FIAT SPA 250 Via Nizza 10126 Turin, Italy Phone: +39-011-686-1111 Fax: +39-011-686-3798 Toll Free: 800-804027 Home Page: http://www.fiatgroup.com/e-index.htm Contact: Giovanni Maggiora, Vice President - Investor Relations Phone: +39-011-686-3290 Fax: +39-011-686-3796 E-mail: Investor.relations@geva.flatgroup.com FIAT SPA: Potential Buyers in Deadlock Over Decision to Bid ----------------------------------------------------------- Italian aerospace and defense company Finmeccanica SpA and France's Snecma are in a deadlock over whether to make a joint bid to acquire Fiat Avio, Dow Jones said citing a person close to the matter. It was earlier said that the Italian government, which owns 32% of Finmeccanica, seemed to be backing group to launch a EUR1.5 billion bid for the business. Finmeccanica now is perceived to likely team up with U.S.-based The Carlyle Group, although the latter is reported to have withdrawn its bid. A person close to the situation, however said, it is yet "too early to say" that the private equity fund has altogether left its offer that is said to value the Fiat unit at EUR1.8 billion. General Electric is also seen as potential bidder for the business. Fiat has said it plans to sell Fiat Avio by June 30, but people close to the company say a deal is expected much sooner. The industrial group is selling the avionics unit to raise cash needed to recapitalize its loss-making auto unit, Fiat Auto. CONTACT: FIAT SPA 250 Via Nizza 10126 Turin, Italy Phone: +39-011-686-1111 Fax: +39-011-686-3798 Toll Free: 800-804027 Home Page: http://www.fiatgroup.com/e-index.htm Contact: Giovanni Maggiora, Vice President - Investor Relations Phone: +39-011-686-3290 Fax: +39-011-686-3796 E-mail: Investor.relations@geva.flatgroup.com ILVA PALI: Invites Bidders to Purchase Branches of Business ----------------------------------------------------------- Invitation to private negotiation for the purchase of branches of business The Extraordinary Commissary of Ilva Pali Dalmine SpA, in Extraordinary Administration, referring to the sale of the following branches of business: -- Poles Department -- Minor construction Department; * considering that the companies, which - pursuant to the sale procedure - have been admitted to present an offer for the taking over of one or both of the branches of business, have not presented any offer pursuant to the regulation on time; that, however, considerable interest has been shown in the purchase of the above-mentioned branches of business ** informs that he has been authorized by the Ministry of Productive Activities to carry out, by private negotiation, the sale procedure for the individuation of the best offer for the branches of business, with license to consider even possible offers which contain re-organization plans of the productive places. *** invites parties interested in the purchase of one or both of the branches of business to contact directly the Extraordinary Commissary: Phone + 39 06 4203321; Fax +39 06 4288673 to obtain the documentation related to the branches of business and to the sale procedure. The sale procedure by private negotiation shall be selected on the basis of a discretional evaluation made by the Procedure bodies, in accordance with the aims of the Procedure of the Extraordinary Administration. WIND: Enel Agrees to Acquire France Teleco's Minority Stake ----------------------------------------------------------- Italy's largest electricity company, Enel, plans to buy France Telecom's 26.7% stake in their joint venture, Wind, for EUR1.5 billion (US$1.59 billion). The price is below the EUR3 billion to EUR5 billion the French company had expected for the telecommunications company just over a year ago. Proceeds of the transaction, which would end the French company's six-year-old involvement in the Italian telecom market, will be used for trimming down France Telecom's EUR68 billion debt. The deal would free Enel from a commitment contained in a shareholders' pact with the French group, to float part of Wind this year, although Enel is expected to proceed with the planned initial public offering of about 25% of Wind. Wind is Italy's second-largest telecom group after Telecom Italia. As of last June, Wind had about 26 million customers in Italy, including up to 11 million Internet users, 7.75 million mobile telephone customers and 7.2m fixed-network users. France Telecom and Deutsche Telekom founded Wind as a joint venture in 1997. But Deutsche Telekom pulled out of the business in 2000. Shareholders pumped in EUR235 million to the telecom company last October after it posted a EUR327 million loss in the first half of 2002. ===================== N E T H E R L A N D S ===================== GETRONICS N.V.: Dutch Court to Issue Ruling Before March 25 ----------------------------------------------------------- A Dutch court in charged of the case brought by Getronics bondholders against the company said it is due to decide over the case before March 25. The bondholders who claimed they represent 20% of total outstanding bond capital of the company are demanding that they be provided with detailed information on Getronic's plans to save the business. They were asking the court to fine Getronics EUR1 million a day on failure to provide the information. On Monday, TCR-Europe said the newly appointed executives at Getronics are considering inviting other companies to invest in the debt-laden company and selling some parts of the assets. The company in a statement said it is taking time to review all its financial options, as there is still no immediate pressure for it to take drastic actions. Although it admitted the need for more funding in the future, whether or not the debt-for- equity swap is completed. CONTACT: GETRONICS N.V. Getronics Investor Relations Phone: +31 20 586 1964 Fax: +31 20 586 1455 E-mail: investor.relations@getronics.com KONINKLIJKE AHOLD: Head of Deloitte Has Strong Ties With Ahold -------------------------------------------------------------- Ahold and accounting firm Deloitte Touche Tohmatsu were firmly bound by the role of the head of Deloitte in the grocery chain, the Financial Times said. U.S. officials are currently investigating accounting irregularities that transforms into a US$500 million black hole in the books of the Dutch retailer. Jim Copeland, global chief executive of Deloitte since 1999, works mainly as the firm's advisory partner with Ahold. He served in such capacity during 2001 and 2002. His important role in Ahold makes him an unlikely resource person for US officials investigating the accounting irregularities at the company. He was not, however, suspected of any wrongdoing in the accounting errors under investigation. Deloitte, Ahold's auditor for 30 years, said Mr. Copeland "had no direct involvement in any of the Ahold audits". Mr. Copeland plans to retire in June. Ahold says earnings for 2001 and 2002 may have been overstated by in excess of $500 million, mainly because of the accounting irregularities at US Foodservice. Deloitte is cooperating with Ahold probes launched by the Securities and Exchange Commission, the chief US financial regulator, and the US Department of Justice. KONINKLIJKE AHOLD: 77 US CMBS Deals Unaffected by Exposure ---------------------------------------------------------- As a result of Fitch Ratings' recent downgrade of Koninklijke Ahold N.V. to 'BB-', Rating Watch Negative from 'BBB-', the U.S. commercial mortgage-backed securities group has reviewed its exposure to Ahold in approximately 77 US CMBS deals, including three credit tenant lease transactions. Of these deals, nine have exposure to Ahold in excess of 5% of its respective transaction balance. The transactions with exposure greater than 5% are listed at the bottom of this press release. Although Fitch recently downgraded Ahold, it does not plan to downgrade any of the US CMBS transactions in which subsidiaries of Ahold are tenants at properties securing loans within the transactions. 'There is no need to downgrade due to the diversity of the deals accompanied with the credit enhancement provided by the most subordinate tranches,' said Lauren Cerda, Director, Fitch Ratings. 'Generally, the grocer's stores are located within in-fill locations and have larger floor plates which would be attractive to another grocery store operator.' If the credit rating deteriorates further, Fitch will take a closer look at each store's configuration, market and sales performance and determine the stores' viability and ultimate rating implication on the respective transaction. Ahold is one of the largest grocery retail operators in the US. Grocery chains operated by the company include Stop and Shop, Giant, Tops, BI-LO and Bruno's. On Feb. 28, 2003, Fitch downgraded Ahold to 'BB-' Rating Watch Negative due, in part, to accounting irregularities in the U.S. Foodservices division, a tightening of the group's liquidity and new funding that worsens the position of parent bondholders. U.S. food retail continues to be a core area of operations even as competition increases and consumer demand weakens. The deals with exposure to Ahold are as follows: -- Vornado 2000-VNO - 11 Properties, 38.5%; -- KRT Origination Corp. - KRTOC - Two properties, 14.4%; -- GS Mortgage Securities Corp. II - 1996 PL - 11 loans, 13.2%; -- Prudential Mortgage Capital II - PMCC2 2000-C1 - Three properties, 10.4%; -- Chase Commercial Mortgage Securities Corp. - CCMSC 1996-1 - Three loans, 9.1%; -- J.P. Morgan Commercial Mortgage Finance - JPMC 1995-C1 - One loan, 8.8%; -- Morgan Stanley Capital I - MSC 1998-XL2 - Two loans, 8.5%; -- Nationslink Funding Corp. - NLFC 1999-LTL1 - Four loans, 6.9%; and, -- J.P. Morgan Chase Commercial Mortgage Securities - JPMCC 2002-FL1 - One loan, 5.6%. KONINKLIJKE AHOLD: Berman DeValerio Files Fraud Lawsuit ------------------------------------------------------- Investors have filed a securities fraud lawsuit against Koninklijke Ahold N.V. and two former officers, accusing the company of issuing false and misleading financial statements to the public, Berman DeValerio Pease Tabacco Burt & Pucillo said. The complaint was filed March 3 in the U.S. District Court for the Southern District of New York. Plaintiffs seek damages for violations of federal securities laws on behalf of all investors who bought Ahold securities from March 6, 2001 through and including February 21, 2003 (the Class Period). Berman DeValerio has represented investors in class actions for over 20 years. To review the complaint and learn more about becoming a lead plaintiff, please visit the firm's website at www.bermanesq.com The lawsuit claims that Ahold and its officers issued false and misleading financial statements that misrepresented the company's true revenue and earnings, causing its securities to trade at artificially inflated prices. Ahold stunned investors on February 24, 2003 when it announced that: (i) the company's U.S. Foodservice subsidiary had materially overstated its income by close to $500 million by improperly including higher promotional allowances, provided by suppliers to promote their products, than the company actually received in payment; (ii) the company's Disco subsidiary had engaged in certain transactions that were possibly illegal and were improperly accounted for; and (iii) the company's historical financial statements would be restated to proportionally consolidate, under Dutch GAAP and U.S. GAAP, several of the company's joint ventures. Moreover, the company also revealed that its CEO and CFO had resigned and that the company's independent auditors had suspended their fiscal year 2002 audit pending completion of the investigations into the foregoing accounting irregularities. As a result of this news, the price of Ahold ADRs fell $6.53 per share, or more than 61%, to close at $4.16, on heaving volume. On February 26, 2003, it was announced that the U.S. Securities and Exchange Commission and the U.S. Attorney's Office were investigating Ahold. If you purchased Ahold securities during the period March 6, 2001 through and including February 21, 2003, you may wish to contact the following attorney at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests. Julie A. Richmond, Esq. One Liberty Square Boston, MA 02109 (800) 516-9926 or (617) 542-8300 law@bermanesq.com If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than April 28, 2003. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time. Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm consists of 33 attorneys in Boston, San Francisco, and West Palm Beach, Florida. CONTACT: BERMAN DEVALERIO PEASE TABACCO BURT & PUCILLO Julie A. Richmond, Esq. Phone: (800) 516-9926 or Phone: (617) 542-8300 ===================== S W I T Z E R L A N D ===================== ABB LTD: Appoints John Scriven as New General Counsel ----------------------------------------------------- After a distinguished 25-year career with Brown Boveri and ABB, Beat Hess, ABB's general counsel and secretary to the Board, has accepted an offer to join the Royal Dutch Shell Group of Companies as Group Legal Director, with group-wide executive responsibility for Shell's global legal function, effective June 16, 2003, ABB said. On behalf of the Board of Directors and the ABB Group Executive Committee, J�rgen Dormann, ABB chairman and CEO, thanked Hess for his many years of loyalty and outstanding contributions to the ABB Group. Hess, 54, was instrumental in the merger between ASEA of Sweden and Brown Boveri of Switzerland in 1988, and has since been in charge of the Group's legal and compliance matters. In the past ten months, Hess has focused his time and efforts on resolving the asbestos-related exposure of Combustion Engineering, a U.S. subsidiary of ABB, and he said today he would continue to bring the related legal proceedings towards a successful conclusion. "Thanks to the dedicated drive by Beat and his team, today we are more confident than ever that we will reach final closure of the asbestos problem in a timely manner," Dormann said. Dormann said Hess's successor will be John Graham Scriven, previously general counsel and secretary to the Board of the Dow Chemical Company in the United States and currently of counsel with the Homburger law firm in Zurich. Scriven, 60, has been working closely with Hess on the asbestos issue in the past several months. ABB (http://www.abb.com)is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in more than 100 countries and employs about 139,000 people. =========================== U N I T E D K I N G D O M =========================== BALTIMORE TECHNOLOGIES: Posts Loss Before Tax of GBP65.3 Million ---------------------------------------------------------------- Financial Highlights for 2002 -- Total revenues for the full year, including discontinued operations were GBP35.0 million (2001: GBP70.4 million). -- Revenues from continuing operations amounted to o26.5 million during 2002 (2001: GBP33.6 million) and GBP12.98 million during H2 2002 (H2 2001: GBP13.08 million). -- Gross Margin was 54% (2001:53%). -- Operating expenses before exceptional items were GBP59.6 million (2001: GBP258.9million) representing a decrease of 77% from 2001. -- LBITDA * of GBP22.4 million (2001: GBP86.2 million) representing a decrease of 74%. -- Net operating expense as represented by LBITDAE * has been reduced to approximately GBP1.1million per month during H2 2002 (H2 2001: GBP5.1 million per month) representing an improvement of 78% over the previous year. -- Loss before Tax GBP65.3 million (2001: GBP659.7 million). -- Cash balance of GBP17.9 million at year-end (2001: GBP21.2 million) with GBP2-3million still to come in relation with 2002 divestments and no outstanding bank debt other than a o300,000 mortgage. As part of the planned headcount reductions, headcount was 295 as at December 31, 2002 (December 2001:885) and at the end of February was 274. To See Financial Highlights: http://bankrupt.com/misc/Financial_Highlights.pdf Bijan Khezri, Chief Executive Officer of Baltimore Technologies commented: 'We have successfully revitalised and strengthened our core business, reinvigorated our employee base, invested in promising new product categories, reinforced partnerships and laid the foundation for an increasingly productive operational infrastructure. We continue to win some of the industry's most significant and high profile transactions worldwide. Today, our challenge is to grow revenues rather than to drive profitability through cost reduction. The overall market environment remains uncertain, difficult to predict and slow-moving causing a lengthening of the sales cycle.' * please see reconciliation of LBITDA/LBITDAE below About Baltimore Technologies Baltimore Technologies' products, services and solutions solve the fundamental security and trust needs of e-business. Baltimore's e-security technology gives companies the necessary tools to verify the identity of who they are doing business with and securely manage which resources and information users can access on open networks. Many of the world's leading organizations use Baltimore's e-security technology to conduct business more efficiently and cost effectively over the Internet and wireless networks. Baltimore also offers worldwide support for its authorisation management and public key-based authentication systems. Baltimore's products and services are sold directly and through its worldwide partner network, Baltimore TrustedWorld. Baltimore Technologies is a public company, principally trading on London (BLM). For more information on Baltimore Technologies please visit http://www.baltimore.com Finacial Statements: http://bankrupt.com/misc/Balance_Sheet.pdf http://bankrupt.com/misc/Profit_and_Loss.pdf http://bankrupt.com/misc/Cash_flow.pdf CONTACT: SMITHFIELD FINANCIAL Andrew Hey Phone: 020 7903 0676 Nick Bastin Phone: 020 7903 0633 BEDE PLC: To Cut Jobs, Focus on Long-Term Value to Continue ----------------------------------------------------------- Bede plc, a global provider of X-ray technology solutions for materials analysis, on Wednesday announced ten job losses at its Durham facility, representing a reduction of approximately 12.5% in the Group's U.K. workforce and bringing the global headcount for the Group to 98 from 117 at the end of 2002. Bede has already reduced annualized costs by GBP1.8 million since June 2002 through a focus on tighter control, operational efficiency and discretionary costs. The reduction in manufacturing and support staff will bring the total annualised Group overhead to GBP5 million and will additionally reduce annualized direct labor costs by 43% (GBP0.13 million). Dr Neil Loxley, Chief Executive of Bede plc commented: 'Bede has continued to reduce costs in the short-term due to the prolonged uncertainty in the global economy, and particularly difficult conditions in our primary semiconductor market. This cost reduction will enable the Group to best manage the short-term uncertainty without affecting our ability to service existing customers and deliver growth from new customers. 'Bede continues to focus on enhancing the long-term value of the Group through maintaining recent improvements in the sales organization and finishing on schedule both the program of product development for its core semiconductor market and the entry into new chemical and pharmaceutical markets, which we fully expect to drive future revenue growth. We have continued to receive orders from new clients and current trading is proceeding in line with expectations, with a book to bill for the year to date of over 1.0.' ***** Last year, Bede posted a turnover of GBP3.1 million (2001: GBP3.1 million), operating loss (pre depreciation, amortisation, exceptionals) of GBP1.5 million (2001: GBP0.3 million), and loss before tax ( pre exceptionals ) of GBP1.7m (2001 : 0.1m) for six months ended June 30, 2002. CONTACT: BEDE PLC Neil Loxley, Chief Executive Phone: +44 (0) 191 332 4700 E-mail: neil.loxley@bede.co.uk Home Page: http://www.bede.com CHARLES SCHWAB: Pulls Out of U.K. Market, Sells Off Scottish Firm ----------------------------------------------------------------- The online stockbroker Charles Schwab is selling its 50% stake in its Scottish partnership to co-owner TD Waterhouse after a downbeat overall performance. Glasgow-based securities firm Aitken Campbell, which Schwab and TD Waterhouse acquired from Abbey National in May 2001, is being offloaded by Charles Schwab to boost its net income in the first three months of the year. News reports cited that Schwab, which began its U.K. retrenchment earlier this year when it sold Charles Schwab Europe to U.K. bank Barclays, said: "Given our shift globally to a focus on our U.S. dollar business, the market-making business in the U.K. securities is no longer a strategic fit." However, Schwab will retain a presence in the U.K. by opening a US dollar office in London later this year. Schwab's chief financial officer previously noted that profits in the first quarter of the year would be below analysts' expectations. A sale would increase the company's net income by USD10 million, Schwab said without disclosing financial details. According to BBC News, Schwab has been hit hard by the global economic slowdown following the terrorist attacks on September 11. The number one U.S. discount stockbroker experienced a severe slump in customer stock trading as investors decided to hold onto their money instead of investing it in the stock market. Last week, Schwab reported sharply lower trading volumes and warned that first-quarter earnings would be below estimates. CHELTENHAM TOOLING: Administrators Put Business Up for Sale ----------------------------------------------------------- The joint administrators, Philip Gorman of Hazlewoods and Andrew Stoneman and Jason Godefroy of Menzies Corporate Restructuring, offer for sale as a going concern the business and assets of Cheltenham Tooling Company Limited. -- High volume metal stampings for the automotive and marine industry -- Fluid form pressings for the aerospace industry -- Total turnover of circa GBP3.5 million per annum -- Highest number of fluid presses in the UK -- Prestigious blue chip customer base -- Highly skilled staff and experienced management team -- Excellent opportunity to overcome barriers of entry into sector -- Early offers invited For further information please view the company's website at http://www.ctool.com,and for an information pack, which will be released on signature of a Confidentiality Agreement, please contact Richard Dade of Hazlewoods. CONTACT: HAZLEWOODS Windsor House, Bayshill road Cheltenham Gloucestershire, GL50 3AT Contact: Richard Dade Phone: 01242 250009 Fax: 01242 584 263 E-mail: rbd@hazlewoods.co.uk Homepage: http://www.hazlewoods.co.uk/corpfin or CHELTENHAM TOOLING COMPANY LIMITED Swindon Road, Cheltenham, Gloucestershire, GL51 9NB United Kingdom Phone: 00-44-(0)1242 527681 Fax: 00-44-(0)1242 227258 CORUS GROUP: To Face Lobbying for Revamp From Bondholders --------------------------------------------------------- A group of Corus bondholders is planning to hold a conference call on Tuesday to discuss "matters of current mutual concern." It is understood that the bondholders will lobby to restructure the deeply divided steel group. According to investment banking boutique Houlihan Lokey Howard & Zukin and law firm Cadwalader Wickersham & Taft, a number of bondholders had requested them to arrange a conference call next week. Houlihan is one of the world's largest advisers in helping companies to restructure their debt and equity, while Cadwalader has advised Eurotunnel and Atlantic Telecom over their debt restructuring. The conference call is open to all bondholders of Corus's UK operations, including holders of the group's sterling and euro- denominated bonds, secured and unsecured, due between 2006 and 2016. A spokesman at Houlihan declined to comment on the precise topics to be discussed during the call, however, the recruitment of the two firms suggests what the bondholders are up to. Troubled Corus Group was created from the merger between the old British Steel group and its Dutch rival Hoogovens four years ago. It was critically divided over the sale of its aluminum businesses, Corus Nederland BV, with pressure coming from some of its Netherlands executives to reverse the merger. The supervisory board of the profitable side of the business said it would prefer severing ties with the UK arm rather than part with the aluminum business, according to The Times. The proceeds of the aluminum sale would have provided the capacity to finance the measures needed to reduce capacity in the UK. The Dutch side of the group recently succeeded in blocking the GBP543-million (US$861.4 million) sale, prompting chief executive Tony Pedder to resign from his post. A spokesman for Corus has said he was "completely unaware of the proposed call". CORUS GROUP: Fate of Redcar Could Affect THPA Junior Notes ---------------------------------------------------------- Fitch Ratings, the international rating agency, says in a new report that the ratings on the junior tranches of the THPA Finance Limited securitisation could be adversely affected should Corus plc announce the closure of its Redcar plant. Were cash flow derived from THPA's dedicated Redcar Ore Terminal to be lost, certain triggers in the THPA deal could be breached which, if unremedied, could lead to senior noteholders taking protective action to the detriment of junior bondholders, the agency notes. THPA is a whole business securitisation of the assets and operations of the Tees and Hartlepool Port Authority in north east England. Issued debt totals GBP300 million. Corus' Redcar steel processing plant is adjunct to the Teesport, where Corus' dedicated Redcar Ore Terminal contributes circa. GBP3.6m to the port group's EBITDA (currently 10% of its annualised EBITDA of GBP36.5m). Fitch notes reports that Corus' management is focussed on improving the profitability of its UK operations following the Dutch court ruling preventing the sale of its Netherlands-located aluminium processing subsidiary. Corus' UK Redcar plant has been mentioned as a possible casualty by various commentators recently. Fitch's report runs through various scenarios of reductions in EBITDA should Corus close Redcar and/or related services, the transaction structure's trigger mechanisms, and potential remedies for prospective lower debt service coverage ratios. Currently THPA's debt service coverage ratio ("DSCR") is running at 1.36x, whereas the Loan Event of Default and Note Event of Default trigger is set at 1.25x. Fitch calculates that a loss of the Redcar attributable EBITDA contribution of GBP3.6m could cause the DSCR to fall to 1.21x prior to THPA management's action to mitigate the losses. Under certain scenarios, the transaction structure also allows senior Class A noteholders to take action which would immediately adversely affect subordinated (Class B and Class C) noteholders, and thereby the rating of these tranches of debt. At this stage, Corus has not announced any U.K. closures, and the potential EBITDA reduction has only been quantified by port management in relation to the Redcar Ore Terminal which Corus uses directly. However, Corus may well not continue to use THPA's Steel Terminal for steel movement to and from its Scunthorpe plant (shipments from which can also be served by Associated British Port's Humber operations). Fitch does not believe that THPA would be able to recover such a dramatic drop in profit with new industries or commodities in the medium term. Fitch expects to release a report called "THPA Finance Limited: Its Dependence on Corus" today, which will be available on its website to subscribers at www.fitchresearch.com. CONTACT: FITCH RATINGS John Keane, London, Phone: +44 (0)20 7417 3553 John Hatton, London Phone: +44 (0)20 7417 4283 EMI GROUP: Freezes Planned Acquisition of Boosey & Hawkes --------------------------------------------------------- Major record company EMI Group PLC, which suffered a dramatic slump in its share price during the past three months, reportedly has decided to pull out of a GBP60 million cash bid for Boosey& Hawkes, the music publisher being investigated by the U.S. Internal Revenue Service over an US$8.3 million (GBP5.3 million) cash payment to a pension plan associated with the company. The Times reported that the music giant wants to abandon all talks with Deutsche Bank, the German investment group acting on behalf of Boosey's management. It is believed that EMI's decision was based on protracted difficulties at Boosey, which is also locked in a row with building group Wimpey over the delayed receipt of a deferred consideration for the sale of a property in Edgware, North London. Moreover, the music group is also thought to have come under pressure from institutional investors to freeze acquisition plans to conserve cash since the group itself is facing difficulties. EMI's shares earlier were sent to their lowest level for a decade as credit rating agency Moody's downgraded the company's long- term debt to junk status. TCR-Europe reported that the rating agency is concerned about the ability of the company, and the whole music industry, to curve the problem of music piracy. It is also skeptical that the company will be able to build its own Internet distribution services. Moody's as well doubts the group's capability to support an investment grade rating for the next two years due to these cash flow limiting factors. It predicts a further revenue decline in 2003/2004. EMI Group plc, one of the world's leading music recording and publishing companies is headquartered in London, England. Capitol Records Inc. is its indirectly wholly owned subsidiary. CONTACT: EMI GROUP Siobhan Turner, Investor Relations Phone: +44 20 7667 3234 BRUNSWICK GROUP Patrick Handley Phone: +44 20 7404 5959 HP BULMER: Sells Surplus Land For GBP6.1 Million to Jennings ------------------------------------------------------------ Bulmers announces that it has exchanged contracts for the sale of vacant land forming part of the Moorfields factory site in Hereford to Jennings Holdings Limited. Completion of the sale is conditional on satisfactory planning permission being obtained by Jennings Holdings Limited. The sale price, payable in cash, will be GBP6.125 million subject to adjustment if certain restrictions are imposed or released as a result of the planning process. If planning permission has not been granted by August 31, 2003 then the purchase price of GBP6.125 million will be subject to adjustment to take account of any increase in the open market value of the property but will not be subject to any reduction. As the contract is conditional, the completion date is currently not known, but the company anticipates that completion will take place during 2003. The property is a piece of vacant land, which has no buildings on it. It is not currently being used by the company for any material purpose and does not generate any income. As at April 26, 2002 the property had a book value of GBP2,254,000. The proceeds of the sale will be used to reduce net borrowing. The sale continues the company's strategy of reducing its debt and follows the recent completion of the sale of Bulmer's Australian interests for GBP22.5 million. ***** TCR-Europe reported last year that the company posted GBP1.8 million losses for the six months to November, compared with a profit of GBP6.4 million the previous year. Exceptional charges of GBP31 million included a GBP22 million goodwill write-down on US and South African operations, which have lost out to alcopops. CONTACT: H P BULMER HOLDINGS PLC Richard Pennycook Phone: 01432 352 000 Smithfield Financial John Kiely Phone: 020 7360 4900 INVENSYS PLC: Appoints Macfarlane New Non-Executive Director ------------------------------------------------------------ Invensys plc announces that Andrew Macfarlane has been appointed as a non-Executive Director, with immediate effect. Sir Graham Hearne will retire from the Board on March 31, 2003 and Andrew Macfarlane will then succeed him as Chairman of the Audit Committee. Andrew Macfarlane is Group Finance Director of Land Securities Group plc. He was previously the Chief Financial Officer of the hotels division of Bass (now Six Continents) and prior to this was the Director of Corporate Finance of Bass plc. Sir Graham Hearne is retiring from the Board in order to avoid any potential conflict of interest arising from his Chairmanship of Novar plc, part of whose activities overlap with Invensys. Lord Marshall, Chairman of Invensys plc said: "I welcome the appointment to the Board of Andrew Macfarlane. His appointment, in line with Higgs Report recommendations, will enhance the Board's financial expertise and experience and also brings us valuable sector experience directly relevant to our resource management businesses. I am grateful to Sir Graham for his significant contribution to our Board and his work as Chairman of the Remuneration Committee until 2002 and over the last 12 months as Chairman of the Audit Committee." About Invensys plc Invensys plc is a global leader in production technology and energy management. The group helps customers improve their performance and profitability using innovative services and technologies and a deep understanding of their industries and applications. Invensys Production Management works closely with customers in order to drive up performance of their production assets, maximize their return on investments in production technologies and remove cost and cash from their whole supply chain. The division includes APV, Avantis, Baan, Eurotherm, Foxboro, SIMSCI/Esscor, Triconex and Wonderware. These businesses address process and batch industries -- including oil, gas and chemicals, food, beverage and personal health care -- and the discrete and hybrid manufacturing sectors. Invensys Energy Management works with clients involved in the supply, measurement and consumption of energy and water, to reduce costs and waste and improve the efficiency, reliability and security of power supply. The division includes Energy Services, Appliance Controls, Climate Controls, Global Services, Metering Systems, Powerware and Home Control Systems. These businesses focus on markets connected with power and energy infrastructure for industrial, commercial and residential buildings. The company also serves the specialised rail, wind-power and electronic manufacturing (power components) markets through Invensys Rail Systems, Hansen Transmissions and Lambda, respectively, in its development division. Invensys operates in more than 60 countries, with its headquarters in London. CONTACT: INVENSYS PLC Duncan Bonfield Phone: +44 (0) 20 7821 3529 BRUNSWICK Phone: +44 (0) 20 7404 5959 Ben Brewerton LAMONT HOLDINGS: Advises Public Regarding Cancellation of Shares ---------------------------------------------------------------- Following the company's announcement on February 6, 2003, Lamont Holdings plc is in Receivership and it is no longer appropriate for the Company to maintain a market for its shares on AIM. After discussion with the Joint Receivers to the company, Mr Tom Keenan and Mr Bill Dawson of Deloitte & Touche, the Company has requested cancellation of the company's shares from AIM. Cancellation is expected to take place on March 26, 2003. ***** Earlier, Lamont Holdings subsidiary Lamont Textiles, filed for administration and resolved to petition the court for the appointment of an Administrator "to provide protection" for its business while it seeks to restructure itself. Lamont completed a GBP28 million restructuring program last summer, but it failed to bring the company back to profitability. An interim pre-tax losses of GBP569,000 for the six months to June 30, against losses of GBP548,000 the year before was reported in September. The textiles and fabrics group blamed a shortage of working capital and an ongoing delay in the receipt of non-trading cash receipts from an asset disposal, according to a report of TCR- Europe. MARCONI PLC: Ratings Lowered to 'D' on Failure to Pay ----------------------------------------------------- Standard & Poor's Ratings Services said it lowered its long- and short-term corporate credit ratings on U.K.-based telecommunications equipment provider Marconi PLC to 'D' from 'CC' and 'C', respectively. At the same time, it lowered its senior unsecured debt ratings on its guaranteed related entity Marconi Corp. PLC to 'D' from 'C'. All ratings were removed from CreditWatch, where they were placed on March 18, 2003. The rating action affects approximately $3 billion of bond debt outstanding. "The downgrade follows Marconi's failure to meet a coupon payment due March 17, 2003, on its Yankee bonds, and the subsequent announcement by the group on March 18, 2003, that, pending the outcome of the Schemes of Arrangement filed with the High Court yesterday, the group does not intend to make payments in respect of bond obligations, either in whole or in part," said Standard & Poor's credit analyst Leandro de Torres Zabala. PERNOD RICARD: Seeks Buyers for Closed Distilleries --------------------------------------------------- Owner of whiskey maker Chivas Brothers Pernord Ricard is currently seeking buyers for any of the four Highland distilleries, which the company closed last October so that it could focus resources on its key malts, such as Glenlivet. These Speyside distilleries include Allt A'Bhainne, Braeval - formerly known as Braes of Glenlivet - Benriach and Caperdonich. They all supply Scotch for the group's blends. George Nectoux, chairman and chief executive of Paisley-based Chivas, revealed that the French drinks giant had received approaches for individual distilleries, but they have fallen short of expectations. A sale could be concluded on the condition that the "price was convenient," he added, all the while emphasizing that no talks were active. Meanwhile, the Scotsman reported that the group has posted a 15% rise in 2002 net profit to 413 million (GBP280 million), buoyed by the brands it acquired from Seagram at the end of 2001. Joint managing director of Pernod Ricard Pierre Pringuet declined to give guidance on the group's performance for this year, saying it was too soon to assess whether a U.S. boycott of French goods, sparked by president Jacques Chirac's opposition to war against Iraq, would hit sales. "To date, we haven't seen any clear signs of a boycott of our products," he said. Prenguet added that a downturn in retail sales of Martell cognac or Chivas Regal premium blended whiskey would take time to affect orders the company received from wholesalers. ROYAL MAIL: Major Customers Complain Against Alleged Abuses ----------------------------------------------------------- Major customers of Royal Mail are complaining about alleged abuses committed by the courier using its dominant position in the business mail market. Speaking in behalf of disgruntled customers, Postwatch, the consumer watchdog for Royal Mail, submitted a super-complaint against the company to the Office of Fair Trading. A spokesman for Postwatch confirmed the fact, and disclosed that customers include "major household names" who wanted to remain unnamed as they had to deal with Royal Mail everyday. The complainants alleged that they have to sign contracts with Royal Mail that allows the monopoly to change the terms of its letter delivery with very little notice and no consultation. The OFT has 90 days to reply to the complaint, which is one of the first under the Enterprise Act 2002. A Royal Mail spokesperson, who said the organization had very little notice of the filing said, "We will be studying the submission." CONTACT: ROYAL MAIL GROUP PLC 148 Old St. London EC1V 9HQ, United Kingdom Phone: +44-20-7250-2888 Fax: +44-20-7250-2244 Homepage: http://www.royalmailgroup.com Contacts: Neville Bain, Chairman John Roberts, Chief Executive and Director THISTLE HOTELS: Orb Free to Sell Hotels to Other Buyers ------------------------------------------------------- Orb Estates'37 Thistle branded hotels are up for grabs after the British company's exclusive sell-off negotiations with Reit Asset Management expired Monday. Orb and Reit, which is reportedly willing to pay about GBP700 million for the hotels, failed to come up with a deal, The Deal cited a person familiar with the auction as saying. Independent estimates for Morgan Stanley, Orb's creditor, values the portfolio at about GBP830 million. A source close to the talks said Orb was at offering the assets to other potential buyers during the exclusive period. Orb is reportedly trying to hasten the sale in order to pay a number of creditors. It has put other assets for sale, its Seafield logistics company and Poole Pottery businesses. Thistle Hotels, meanwhile, is trying to fend off a GBP300 million bid from Singaporean company BIL International, which owns 46% of the company. The shareholder is which is offering 30% less per share than the hotel operator's initial public offer price seven years ago. New York-based private equity firm Blackstone Group has indicated it is not interested in the hotels Neither Orb nor Reit are using outside financial advisers for their talks. Thistle's financial advisers are Merrill Lynch & Co. and Deutsche Bank AG. HSBC Investment Banking is advising BIL. CONTACT: THISTLE HOTELS PLC Phone: 020 7895 2304 Ian Burke, Chief Executive Officer TXU EUROPE: Requests to Enter Into Information Sharing Deal ----------------------------------------------------------- The Joint Administrators of TXU Europe Group Plc (in administration), TXU (UK) limited (in administration) and TXU Europe Energy Trading Limited (in administration) hereby give notice of their application to the High Court that they do enter, alternatively that they be at liberty to enter, in to an Information Sharing Agreement with the Joint Administrators of TXU Europe Limited (in administration), TXU Acquisitions Limited (in administration) and the Energy Group Limited (in administration). The application was heard at the Royal Courts of Justice on Tuesday at March 18, 2003 at 10.30 a.m. CONTACT: Simon Edel Ernst & Young LLP Becket House, 1 Lambeth Palace Road, London SE1 7EU Phone: +44 (0) 20 7951 2000 ************* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Trenton, NJ USA, and Beard Group, Inc., Washington, DC USA. Kimberly MacAdam, Larri-Nil Veloso, Ma. Cristina Canson, and Laedevee Gonzales, Editors. Copyright 2003. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *