/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/030709.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, July 9, 2003, Vol. 4, No. 134 Headlines C Z E C H R E P U B L I C UNION BANKA: Basis for Arbitration a Sham, Say State Officials F I N L A N D SENTERA PLC: Posts Latest Changes in Shareholding G E R M A N Y BERTELSMANN AG: Cancels Plan to Take Over Ullstein-Hein-List BERTELSMANN AG: In Exclusive Talks with AOL Time Till end-July DEUTSCHE BAHN: Reinstates Discount Tickets to Please Customers ENERGIE AG: To Intensify 'Disinvestment' to Stem Earnings Drain GERLING NCM: Full-year 2002 Net Loss Exceeds EUR75 Million MG TECHNOLOGIES: Divests Structural Steel Engineering Business I R E L A N D AER LINGUS: Inks Airport Services Alliance with British Airways I T A L Y FIAT SPA: Moody's Long-term Senior Unsecured Rating Cut to 'Ba3' N E T H E R L A N D S KONINKLIJKE AHOLD: Names Joost Sliepenbeek SVP Controller KONINKLIJKE AHOLD: Authorities Search Zaandam Headquarters KONINKLIJKE AHOLD: Urged to Release Details of Accounting Review NUMICO N.V.: Completes Sale of Pulmoll and Diele to Zertus P O L A N D BANK MILLENNIUM: Posts Subscription Results for A8-series Bonds HUTA STALOWA: Optimistic PLN40 Mln State Aid Will Get Nod UPC POLSKA: Case Summary & 20 Largest Unsecured Creditors S W E D E N SAS GROUP: Traffic Figures for June Reflects Gradual Recovery S W I T Z E R L A N D ABB LTD: Swedish Authority Files Lawsuit Against ABB Building ASCOM: Wins CHF67 Million Contract from City of Montreal SWISS INTERNATIONAL: Chief Open to Possible Sell-off, Merger U N I T E D K I N G D O M AQUILA INC.: Affiliate Defaults on US$250 Million Loan BAE SYSTEMS: Inks MoU with Finmeccanica to Formalize Partnership CAZENOVE: Stock Market Slump Halves Value to GBP546 Million CONVERGENT COMMUNICATIONS: Court Grants Administration Order CORDIANT COMMUNICATIONS: Sells FD International for GBP26 Mln GLAXOSMITHKLINE PLC: Result of Exec. Pay Review Remains Pending HAMLEYS PLC: DC Thomson Sides with Children's Stores in Bid IMPERIAL CHEMICAL: Henkel Eyes U.S. Starch Business, Report Says INVENSYS PLC: Completes US$44 Mln Sale of Teccor to Littelfuse LE MERIDIEN: Saudi Billionaire Takes Part in Rescue Talks SMG PLC: Shares Slide 10% on ABN Amro Downgrade SUNSTREET PRINTING: Cashflow Woes Force Firm to Call Receivers WEST: Finance Director Resigns Following Sale of Last Division ********* =========================== C Z E C H R E P U B L I C =========================== UNION BANKA: Basis for Arbitration a Sham, Say State Officials -------------------------------------------------------------- The Czech National Bank and the country's Finance Ministry refuted the claims being used by Union Banka's majority shareholder, Invesmart, as basis for its arbitration proceeding against the Czech state, the Budapest Business Journal said. The Italian investment company is claiming CZK10 billion in damages for alleged negligence on the part of the Czech National Bank and deliberate withholding of state aid by the Ministry of Finance. Deputy Finance Minister Eduard Janota described the claim against the agency as a lie, while Czech National Bank representatives dismissed the claim as unrealistic. Invesmart CEO Paolo Catalfamo said the national bank should not have approved the plan to take over Union Group, of which Union Banka is a part, since it was aware that it won't be able to deliver its part of the transaction that required granting of state aid to help unwind Union Banka's woes. "We made it clear from the start we'd invest in Union Banka only on condition that we receive state aid, otherwise there'd have been no deal," Mr. Catalfamo said. Invesmart also maintained that the central bank has long been aware of the bank's problems. Czech National Bank banking council member Pavel Racocha, on the other hand, said: "The CNB's role in allowing a company to take over a bank is to ensure the buyer has enough money for the takeover from transparent sources and meets all the necessary conditions for running the bank." "The Czech National Bank is not there to ensure that [a] company is getting a good deal or not. If they don't like the conditions, they don't have to buy the bank and are free to walk away," he added. Deputy Minister Janota also said the support was offered on condition that Invesmart filed the proper documentation; but what was filed was insufficient, so the deal was called off. As to the claim by Invesmart that the central bank erred in forcing the bank into liquidation in May instead of helping it reach a settlement to save the bank, Mr. Racocha said: "The law says that when a bank's license is revoked the Czech National Bank is obliged to file a petition for liquidation... We filed a petition, but it was in the hands of the court, which could have easily ruled against us." Invesmart also argued that the Ministry left it stuck to suffer with Union Banka's woes by bailing out former shareholders, including Vitkovie and Nova Hut. To this Finance Minister Janota said: "Mr. Catalfamo's claim is a lie... The ministry would have no interest in seeing a bank go bankrupt." Mr. Catalfamo said it had consulted two international law firms, Dewey Ballantine and Freshfields Bruckhaus Deringer, regarding a possible arbitration. He said the arbitration lawyers have told him that his case is solid. Dewey Ballantine representatives confirmed involvement, while Freshfield declined to comment as it has not signed any contract with Invesmart, according to the report. Deputy Minister Janota said: "We have nothing to fear from Invesmart... They tried to take over UB without paying for it and there's nothing they can really complain about." ============= F I N L A N D ============= SENTERA PLC: Posts Latest Changes in Shareholding ------------------------------------------------- Sentera plc has received these notices of holding changes in accordance with Chapter 2, Section 9 of the Securities Market Act: (a) The holding of Mican Ltd. in Sentera plc has decreased under 1/20 of Sentera plc's share capital and votes; (b) The holding of Starbrook International Holding B.V. in Sentera plc has decreased under 1/20 of Sentera plc's Share capital and votes; (c) The holding of the funds managed by CapMan Capital Management Oy (Finnventure IV, V and V ET) in Sentera plc has risen above 1/3 of Sentera plc's share capital and votes; (d) The holding of Markku Toivanen in Sentera plc has risen above 1/10 of Sentera plc's share capital and votes; (e) The holding of Ilkka Parssinen in Sentera plc has risen above 1/20 of Sentera plc's share capital and votes; (f) The holding of Jorma Kohonen in Sentera plc has risen above one 1/20 of Sentera plc's share capital and votes; and (g) The holding of Asko Hakonen in Sentera plc has risen above 1/20 of Sentera plc's share capital and votes. The above-specified holding changes are related to the combination of Sentera plc and Solagem Oy. Furthermore, as a related transaction the funds managed by CapMan Capital Management Oy (Finnventure IV, V and V ET) have acquired through a separate share purchases from the majority shareholders of Sentera plc, Mican Ltd and Starbrook International Holding B.V., the shares they have possessed in Sentera plc. The share capital of Sentera plc is a result of the share increase resolved in the Extraordinary Shareholders' meeting on June 18, 2003 amounting to EUR592,122.80. The share capital is divided into 11,842,456 shares with a book-counter value of EUR0.05. The respective share increase was entered into the Trade Register on July 7, 2003. SENTERA PLC Markku Toivanen Deputy Managing Director CONTACT: SENTERA PLC Kari Peltola, Chief Financial Officer Phone: (09) 374 7800 ============= G E R M A N Y ============= BERTELSMANN AG: Cancels Plan to Take Over Ullstein-Hein-List ------------------------------------------------------------ The German publishing giant, Bertelsmann AG, which is currently in merger talks with AOL Time Warner, withdrew plans to takeover all parts of book publisher Ullstein-Hein-List from Axel Springer. German newspaper Frankfurter Allgemeine Zeitung said concerns by the Federal Cartel Office that a takeover would result in a market-dominant position on the domestic paperback-book market prompted Bertelsmann to back off from the offer. However, a new proposal will be given to the cartel office for approval. Under the proposal, Bertelsmann's Random House, which conditionally bought Ullstein-Hein-List in February, will seek to sell all German shares except the Heyne publishing activities. This will leave Bertelsmann no more than a 28% share of the German paperback market, which is less than the 30% threshold the cartel office deems restrictive to competition. Heyne accounted for 60% of the UHL group's EUR158 million turnover in 2002, the newspaper said. The company did not say whether it had a buyer lined up for the other divisions. Approval by the cartel office depends on the sale of these divisions within the year. A recent comment from rating agency Moody's revealed a gloomy outlook for Bertelsmann. BERTELSMANN AG: In Exclusive Talks with AOL Time Till end-July -------------------------------------------------------------- Negotiations regarding the merger of the music businesses of media giants Bertelsmann and AOL Time Warner are proceeding favorably, according to the Telegraph. The German media company and its U.S. rival, which are exploring the merger of BMG and Warner, have agreed to a period of exclusivity that lasts until the end of the month, the report said. The possible deal could usher major changes in the market position of other players in the local industry. Britain's EMI, which currently occupies the third position, could be pushed back to the fourth slot, after the merger reduces the number of major music companies from five to four. EMI itself had sought to merge with Warner Music and BMG in 2000 and, although it insists a deal between the two major competitors won't have significant effect, industry experts believe the British music group will resume talks with Warner if a deal with BMG doesn't materialize. Last month, Moody's said trading environment for Bertelsmann's key activities "remains tough" and its domestic market remains threatened by a further economic downturn. The gloomy outlook loomed even after the operating media and media services company successfully reduced debt burden incurred with the late-2002 acquisition of music company, Zomba, through the disposal of a scientific publishing unit. CONTACT: BERTELSMANN AG Carl-Bertelsmann-Straae 270 33311 Gtersloh Germany Phone: ++49.5241.80-0 Fax: ++49.5241.80-9662 DEUTSCHE BAHN: Reinstates Discount Tickets to Please Customers -------------------------------------------------------------- German national railroad operator, Deutsche Bahn, announced major changes to its ticket selling, including the reintroduction of a card giving a 50% reduction in ticket prices. The decision contradicted Chairman Hartmut Mehdorn's insistence in May that only Bahncard offering 25% discount will continue to be sold, according to Frankfurter Allgemeine Zeitung. Mr. Mehdorn admitted the move follows strong public demand. "The customers wanted it that way," said Mr. Mehdorn as he announced the changes Tuesday last week. The re-offering will take effect on August 1. Deutsche Bahn introduced in December 2002 a complicated discount system that earned the ire of customers, resulting in a sharp decline in rail travel. To contain the slide, Mr. Mehdorn announced a complete overhaul of the pricing system three months ago. He said the reintroduced discount Bahncard is "different [and] better... better for the railroad, definitely: Its price has gone up from EUR140 to EUR200." Despite the warm welcome the new policy has received, some experts believe the earlier mistake has done serious damage to Deutsche Bahn, the report said. ENERGIE AG: To Intensify 'Disinvestment' to Stem Earnings Drain --------------------------------------------------------------- The review of the current situation and the current strategic position of the company by the new Chairman of the Board of Management, Prof. Dr. Utz Claassen, has resulted in new insights into significant potential negative impacts on 2003 earnings. These potential drains on earnings are mostly one-off effects which will only impact liquidity to a limited extent and will not have any lasting operative effects on the core business. They concern, in particular, risks at Salamander, risks relating to Thermoselect, burdens from the investment in Stadtwerke Dusseldorf AG, and various other downward valuations resulting from impairment tests at holdings, provisions for early retirement, and provisions for restructuring measures. In a few cases, the corresponding individual risk is in a three-figure million range. At the moment, an analysis is under way to ascertain how the individual earnings risks will affect the result in terms of quantity and over time. In response to these new insights, the Board of Management will take further direct steps to increase the operational efficiency of the company. In addition, the Board of Management will step up the disinvestment activities of the group. A company-wide freeze on fixed asset investment and new contracts for services has already been initiated. These measures do not, of course, apply to legally stipulated investments or investments in the area of safety. The Board of Management considers the operational outlook for the Company to be basically unchanged; indeed, the measures already taken should favor the medium-term and long-term development of operations. CONTACT: ENBW ENERGIE BADEN-WURTTEMBERG AG Communications Department Durlacher Allee 93 76131 Karlsruhe Phone: +49 (07 21) 63-1 43 20 Fax: +49 (07 21) 63-1 26 72 E-Mail: unternehmenskommunikation@enbw.com GERLING NCM: Full-year 2002 Net Loss Exceeds EUR75 Million ---------------------------------------------------------- German credit insurer Gerling NCM Credit and Finance AG slipped to a full-year net loss as a result of writedowns in stock portfolio and high-risk provisions. The company reported a full-year net loss of EUR75.1 million in contrast to an EUR8.5 million profit in 2001. Yet, the unit's sales increased by 2.4% from EUR1.254 billion to EUR1.282 billion. Parent Gerling-Konzern Versicherungs-Beteiligungs-AG attributed the negative results to writedowns and high-risk provisions for the credit-default-swap business. One-off factors completely erased a possible EUR17 million profit. Gerling Group is selling the unit to a consortium that included Swiss Reinsurance Ltd. and Deutsche Bank AG. Swiss Re stands to own 47.5% of Gerling NCM and Deutsche Bank 35.32% once the transaction is completed. The group also plans to launch an initial public offering of the credit insurer in the medium term, according to Dow Jones. MG TECHNOLOGIES: Divests Structural Steel Engineering Business -------------------------------------------------------------- mg technologies AG sold the group's heavy structural steel engineering business Monday last week. Investors with many years experience in this field have bought the unit. The buyers intend to continue the business as a going concern so that the vast majority of jobs will be secured. In divesting these activities, the mg group is withdrawing from a business that is not one of its core competencies and in the past has suffered heavy losses. mg will report a charge of around EUR20 million for this disposal in the current fiscal year and will book the result arising from existing orders still outstanding. In 2001/2002, the heavy structural steel engineering business generated total sales of around EUR66 million and incurred losses of approximately EUR16 million. The business employs a staff of roughly 300. The disposal will not affect Claus Queck GmbH, Duren, which has been operating successfully in the structural steel engineering business for many years. This company, which employs a staff of roughly 100, has consistently been generating strong earnings on sales of approximately EUR30 million. ============= I R E L A N D ============= AER LINGUS: Inks Airport Services Alliance with British Airways --------------------------------------------------------------- Ireland's national airline, Aer Lingus, has moved its flights from Terminal 1 to Terminal 2 Eurohub at Birmingham International Airport, the Birmingham Post reported. According to the report, British Airways' ground services division will now handle the Irish airline's five daily Birmingham-to-Dublin flights. This includes a ground handling agreement that covers customer services, check-in and baggage handling services. Birmingham Post said a ticketing agreement is also being negotiated, which seeks to enable Aer Lingus customers to buy or change tickets at the British Airways ticket desk. British Airways' head of ground operations Paul Gaiger said: "Aer Lingus' decision to use our ground handling services is most welcome, especially in the current trading climate." He added the move is also more convenient for all customers, and opens more connection opportunities for travelers. Aer Lingus' station manager at Birmingham said: "I am confident our customers will enjoy the convenience and the excellent facilities of the T2 Eurohub Terminal." The national airline has been struggling from the global economic slowdown, industrial unrest, decline in tourism, stiff transatlantic competition and rising fuel prices even before the September 11 attack. The tragedy only worsened its situation, leading it to post a EUR52 million- loss in 2001. In an effort to remain sustainable, Aer Lingus slashed its costs by EUR235 million as part of an emergency rescue package that also saw it decide to enter the low-cost sector. ========= I T A L Y ========= FIAT SPA: Moody's Long-term Senior Unsecured Rating Cut to 'Ba3' ---------------------------------------------------------------- Moody's Investors Service downgraded Fiat SpA's long-term senior unsecured ratings to 'Ba3' from 'Ba1', reflecting continued cash consumption at its auto division, and negative outlook for its operating performance. The rating agency expects operating performance under Fiat's recently published restructuring plan to remain negative throughout 2003 and 2004. This could deteriorate the group's liquidity situation and likely prevent it from increasing financial flexibility in the short to medium term, Moody's said. The outlook for the ratings is negative, reflecting a need for the company to successfully complete its planned asset disposals and financing transactions. It also reflects the execution risks surrounding its restructuring program. Under its strategic plan, Fiat plans to undertake organizational adjustments, significant headcount reductions outside Italy, improvements in the group's cost structure, and increased R&D efforts and substantial investments in the product range across the Fiat Auto, Iveco and CNH franchises. Moody's says the success of these hinges on the structural improvements in the group's cost situation and customers' acceptance of the products it plans to introduce in the future. Moody's believes the deterioration in the value of Fiat's brand name and the competitive market environment could be the major challenges the company has to face. These are in addition to problems regarding its liquidity situation. Including operational cash consumption, and debt maturities within 12 months, the rating agency estimates Fiat's total cash needs to reach EUR10.9 billion. Moody's also assigned a 'Ba3' senior implied rating to Fiat. The outlook for the rating is negative. Fiat's Non-Prime short-term debt rating was not included in the rating review and remains unchanged. The rating actions conclude the rating review initiated in May. The ratings downgraded to 'Ba3' from 'Ba1' are for: (a) Fiat Finance & Trade Ltd.: senior unsecured medium-term notes and bonds (b) Fiat Finance Canada Ltd.: senior unsecured medium-term notes and bonds (c) Fiat Finance Luxembourg S.A.: senior unsecured convertible notes (d) Fiat Finance North America Inc.: senior unsecured medium- term notes and bonds. ===================== N E T H E R L A N D S ===================== KONINKLIJKE AHOLD: Names Joost Sliepenbeek SVP Controller --------------------------------------------------------- The Ahold (NYSE:AHO) (Other OTC:AHODF) corporate executive board appointed Joost Sliepenbeek as Senior Vice President Controller, effective July 7, 2003. Sliepenbeek is currently chief financial officer at Albert Heijn. He joined Ahold in January 1994 as Director Corporate Mergers & Acquisitions and was appointed Controller at Ahold Institutional Food Supply -- now Deli XL -- in September 1996 before being named Executive Vice President and Chief Financial Officer at Albert Heijn on May 1, 1999. Succeeding Sliepenbeek as Albert Heijn Chief Financial Officer is Chris Dik, currently Logistics Director. Dik's appointment is also effective July 7, 2003. He in turn is succeeded by Johan Boeijenga, who until recently was Country Manager of Ahold's Indonesian operation. Standard & Poor's Ratings Services recently lowered its long-term corporate credit rating on Netherlands-based food retailer and food service distributor Ahold Koninklijke N.V. to 'BB-' from 'BB+', following the announcement by the group that accounting irregularities at its U.S. Foodservice arm were materially larger than expected. In addition, the senior unsecured debt ratings on Ahold were lowered to 'B+' from 'BB+', reflecting structural subordination. At the same time, Standard & Poor's affirmed its 'B' short-term rating on the group. KONINKLIJKE AHOLD: Authorities Search Zaandam Headquarters ---------------------------------------------------------- Ahold announced on Monday that the Public Prosecutor in Amsterdam is conducting a criminal investigation regarding Ahold. In the course of this investigation, a search has been conducted in Ahold's corporate headquarters in Zaandam on July 5, 2003. Ahold has given its full cooperation to this investigation and is cooperating fully with the Dutch Public Prosecutor, as it has been doing and will continue to do with the U.S. Securities and Exchange Commission and the U.S. Department of Justice in connection with their ongoing investigations. Ahold deems it inappropriate to give any further information concerning these investigations while their outcomes are pending. Citing a company spokesman, the Telegraph said the investigation focused on the possible "falsification of documents" and the "publication of possible false figures in company reports." The suspicion arose from so-called "side letters" discussing alleged secret deals in relation to the consolidation of its joint ventures in Sweden and Norway, Brazil, Guatemala and Argentina. Ahold handed the letters over to the prosecutor's office in April. CONTACT: ROYAL AHOLD Corporate Communications Phone: +31.75.659.57.20 KONINKLIJKE AHOLD: Urged to Release Details of Accounting Review ---------------------------------------------------------------- Argentine supermarket chain, Disco S.A., informed the Argentine stock exchange that it has requested more information from its troubled parent, Dutch retail giant Royal Ahold NV, regarding the results of its accounting review, says Dow Jones. The parent, which completed Tuesday a company-wide internal probe into accounting regularities, announced it had uncovered a total of around EUR970 million in wrong accounting. This included some EUR8 million related to problematic accounting at Disco. Disco's acting Vice President Jesus Fernandez de Gabriel said in a filing to the bourse that the Company has asked Ahold for some "reports related to that announcement, with the aim of knowing the adjustments and modifications that it should carry out" to its accounts. He also asked for "suggestions...to identify the new controls and procedures that should be applied" to prevent a repetition of errors. Local press reports also added that, besides the inflation of earnings, Ahold also found imprecise documentation and a lack of internal controls at the Argentine unit. Disco reported losses of ARS1.76 billion ($1=ARS2.795) in the first nine months of 2002, amid a 10.9% contraction in Argentina's economy. NUMICO N.V.: Completes Sale of Pulmoll and Diele to Zertus ---------------------------------------------------------- Royal Numico N.V. announces that it has completed the sale of the brands and the production facilities related to Pulmoll and Diele to Zertus GmbH, a German specialty food producing company. The transaction was expected complete July 7, 2003, subject to customary regulatory approvals. Pulmoll and Diele are brand names used for a range of throat care products with EUR14 million in sales and a positive contribution to EBITA in 2002. The divestment of this non-core asset is in line with Numico's strategic objective to become a high-growth, high-margin specialized nutrition company by focusing on core activities Baby Food, Clinical Nutrition and General Nutrition Co. The debt-laden food group posted a loss of EUR1.64 billion in 2002 after writing down the value of Rexall and General Nutrition Co. stores. It bought General Nutrition Co. for US$2.5 billion in 1999. =========== P O L A N D =========== BANK MILLENNIUM: Posts Subscription Results for A8-series Bonds --------------------------------------------------------------- The Management Board of Bank Millennium S.A., based in Warsaw, recently posted these information on the subscription results of its A8-series bonds: Date of opening of subscription: 2 June 2003. Date of closing of subscription: 30 June 2003. Date of allotment: 7.07.2003. The subscription covered 2 million A8-series Bonds including: (a) In Small Investors Tranche 500,000 series A8-series Bonds; (b) In Large Investors Tranche 500,000 A8-series Bonds; (c) In Directed Tranche 1 million A8-series Bonds. These volumes of A8-series Bonds offered in the individual tranches take into account the shift between tranches as notified in the current report of June 5, 2003. Subscription orders for A8-series Bonds were not reduced. In the Subscription the number of A8-series Bonds was subscribed for validly 698,540 including: (a) In Small Investors Tranche 77,410 Series A8 Bonds; (b) In Big Investors Tranche 79,870 Series A8 Bonds; (c) In Directed Tranche 541,260 Series A8 Bonds. In the Subscription for A8-series Bonds the Management Board of the Bank allotted 698,540 A8-series Bonds including: (a) In Small Investors Tranche 77,410 Series A8 Bonds; (b) In Big Investors Tranche 79,870 Series A8 Bonds; (c) In Directed Tranche 541,260 Series A8 Bonds. A8-series Bonds offered in individual tranches were purchased on individual subscription days at these prices: Date of subscription Small Large Directed Tranche Investors Investors Tranche Tranche 02-06-2003 98.207 98.104 97.846 03-06-2003 98.216 98.113 97.857 04-06-2003 98.225 98.122 97.867 05-06-2003 98.234 98.132 97.878 06-06-2003 98.243 98.141 97.889 09-06-2003 98.270 98.170 97.921 10-06-2003 98.279 98.180 97.932 11-06-2003 98.288 98.189 97.943 12-06-2003 98.297 98.199 97.953 13-06-2003 98.306 98.208 97.964 16-06-2003 98.333 98.237 97.997 17-06-2003 98.342 98.246 98.007 18-06-2003 98.351 98.256 98.018 20-06-2003 98.369 98.275 98.040 23-06-2003 98.396 98.303 98.072 24-06-2003 98.405 98.313 98.083 25-06-2003 98.414 98.322 98.094 26-06-2003 98.423 98.332 98.105 27-06-2003 98.432 98.341 98.115 30-06-2003 98.459 98.370 98.148 In the Subscription valid subscriptions for A8-series Bonds were made by 960 persons: (a) In Small Investors Tranche 511 persons; (b) In Large Investors Tranche 130 persons; (c) In Directed Tranche 319 persons. In the Subscription A8-series Bonds were allotted to 960 persons including: (a) In Small Investors Tranche 511 persons; (b) In Large Investors Tranche 130 persons; (c) In Directed Tranche 319 persons. The Bank did not sign agreements for a service or investment sub-issue regarding A8-series Bonds. The value of the subscription conducted for A8-series Bonds totaled PLN68.452.325.01. The issue of A8-series Bonds is conducted in an issue program, therefore it is not possible to specify the amount of total cost of issue of A8-series Bonds. The cost of issue of all series of bonds offered in the bond issue program shall be stated after completion of the issue of all series of bonds offered in the bond issue program. The issue of A8-series Bonds is conducted in an issue program. Therefore, it is not possible to specify the average cost of conducting the subscription for A8-series Bonds per one A8-series Bond. The Average cost of conducting the subscription for bonds offered in the bond issue program per single bond shall be stated after completion of the issue of all series of bonds offered in the bond issue program. HUTA STALOWA: Optimistic PLN40 Mln State Aid Will Get Nod --------------------------------------------------------- Huta Stalowa Wola expects its application for a much-needed public support to move according to plan and that it could receive the funding by end of July. Warsaw Business Journal cited company spokesman Zbigniew Nita telling Intefax: "The procedures have already been concluded; so everything seems to be ready for the provision of this support... We hope that the accomplishment of the process is just a matter of a few signatures and that we'll obtain the aid by the end of the month." The producer of heavy machinery and vehicles for the construction and defense industries is due to receive a PLN40 million public support from Poland's state-run Industrial Development Agency, which helps out troubled companies. Huta Stalowa Wola said, without the money needed to buy necessary components for production orders already taken, the company would likely shut down. It plans to increase sales revenues by 20% in 2003 after securing the financial backing. Huta Stalowa Wola is currently restructuring its mill with a view towards reducing its workforce by 550 from the current 3,100, and by 1,400 in the entire group, which has a total of 9,600 workers. UPC POLSKA: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------- Debtor: UPC Polska, Inc. 4643 Ulster Street Suite 1300 Denver, Colorado 80237 fka Polstar Holdings, Inc. fka @ Entertainment, Inc. Bankruptcy Case No.: 03-14358 Type of Business: The Debtor, an affiliate of United Pan-Europe Communications N.V., is a holding company which owns various direct and indirect subsidiaries which own and operate one of the largest cable television systems in Poland. Chapter 11 Petition Date: July 7, 2003 Court: Southern District of New York (Manhattan) Judge: Burton R. Lifland Debtors' Counsel: Ali M.M. Mojdehi, Esq. Baker & McKenzie 101 West Broadway Suite 1200 San Diego, CA 92101 (619) 236-1441 Fax : (619) 236-0429 -and- Ira A. Reid, Esq. Baker & McKenzie 805 Third Avenue New York, NY 10022 Tel: 212-751-5700 Total Assets: $704,000,000 (as of March 31, 2003) Total Debts: $940,000,000 (as of March 31, 2003) Debtor's 20 Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ Deutsche Bank Trust Co. Indenture Trustee $148,900,000 Americas for 2008 Bonds 280 Park Avenue 9th Floor New York, NY 10017 Ted Banica Tel: 212-250-4753 Golden Tree Asset Mgt. 2008 and 2009 Bonds $107,600,000 300 Park Avenue 25th Floor New York, NY 10021 Steven Shapiro Tel: 212-847-3511 Deutsche Bank Trust Co. Intenture Trustee for $89,600,000 Americas 2009 Bonds 280 Park Avenue 9th Floor New York, NY 10017 Ted Banica Tel: 212-250-4753 SISU Capital Limited 2008 and 2009 Bonds $78,100,000 c/o Anthony Princi, Esq. Orrick Herrington & Sutcliffe 666 5th Ave. New York, NY 10022-5303 Tel: 212-506-5155 MacKay Shields LLC 2008 Bonds $50,700,000 9 West 57th Street New York, NY 10019 Ben Renshaw Tel: 215-230-3836 Deutsche Bank 2008 and 2009 Bonds $39,200,000 Winchester House 1 Great Winchester Street London EC2N 2DB, Great Britain Jaime Vieser 011 44 20 7547 3845 Morgan Stanley Investment Series C Bonds $36,001,000 Management 100 Front Street Suite 1100 West Conshohocken, PA 19428 Chad Liu Tel: 610-260-7373 Deutsche Bank Trust Co. Indenture Trustee $21,300,000 Americas for Series C Bonds 280 Park Avenue 9th Floor New York, NY 10017 Ted Banica Tel: 212-250-4753 Royal Bank of Scotland 2008 Bonds $18,200,000 135 Bishop's Gate London, EC2M 3UR Salvatore Lentini Strong High Yield Bond 2008 Bonds $17,350,000 Fund Strong Capital Mgt, Inc 100 Heritage Reserve Menomonee Falls, WI 53051 Michael Schueller Tel: 414-577-7261 Strong Corporate Bond 2009 Bonds $6,700,000 Fund Strong Capital Mgt, Inc 100 Heritage Reserve Menomonee Falls, WI 53051 Michael J. Schueller Tel: 414-577-7261 Reece Communications, Inc. Promissory Note - $6,300,000 1875 Quarry Road Loan balance plus Yardley, PA 19067 F. John Hagele, Esq. Hoyle, Morris, & Kerr LLP One Liberty Place, 49th Floor Philadelphia, PA 19103-7397 Fax: 215-981-5959 Goldman Sachs Int'l 2008 Bonds $4,900,000 Peterborough Court 133 Fleet Street London EC4A 2BB, Great Britain Julian Salisbury 011 44 20 7774 8701 Goldman, Sachs & Co. 2008 Bonds $4,900,000 85 Broad Street 29th Floor New York, NY 10004 Kenneth Glassman 212-357-6088 Strong High Yield Bond 2009 Bonds $4,700,000 Fund Strong Capital Mgt, Inc 100 Heritage reserve Menomonee Falls, WI 53051 Michael J. Schueller Tel: 414-577-7261 Strong High Yield CBO II 2008 Bonds $2,000,000 Strong Capital Management, Inc 100 Heritage Reserve Menomonee Falls, WI 53051 Michael J. Schueller Tel: 414-577-7261 Strong Advisor Bond Fund 2009 Bonds $1,450,000 Strong Capital Mgt, Inc 100 Heritage Reserve Menomonee Falls, WI 53051 Michael J. Schueller Tel: 414-577-7261 Strong Advisor Strategic 2008 Bonds $700,000 Income Fund Strong Capital Mgt, Inc 100 Heritage Reserve Menomonee Falls, WI 53051 Michael J. Schueller Tel: 414-577-7261 (A) Polska Programming Contract Unknown B.V. Drentestraat 24 Amsterdam, Netherlands 1083 HK (A)HBO Communications (UK) Contract Unknown Ltd. PO BOX 583 Maids Moreton, Buckingham MK181TQ England =========== S W E D E N =========== SAS GROUP: Traffic Figures for June Reflects Gradual Recovery ------------------------------------------------------------- SAS Group recently released this latest traffic update: (a) The SAS Group transported a total of 2.9 million passengers in June 2003 versus 3.1 million in 2002, a decrease of 5.3%; (b) Total passenger traffic decreased by 1.2% versus 2002; (c) Overall group passenger load factor decreased by 2.8 p.u to 69.3% for June 2003 versus 2002. Market trends and yield development The traffic development in June is reflecting a gradually improving demand environment compared with the previous months. Traffic on North America has recovered and passenger load factor gradually surpassed 90% in June. Forward bookings for Asian routes are also improving, but from a low level. Traffic in Spanair and Braathens developed positively, up 14.0% and 21.5% respectively, but it must be noted that also these airlines experience a significant pressure on yields. Indications of passenger yield development for Scandinavian Airlines in May indicate a continued pressure as a result of negative mix, a number of sales campaigns and new market initiatives. Yields on the European routes were down 16% in May, affected by the introduction of the new low fare initiative Snowflake (8-9 p.u.) and the holiday pattern in May. Underlying development is similar to previous months. The overall yield development in May is slightly better than the figures reported for the previous months, however the yield pressure for European short haul routes is still significant. Forceful cost measures are under implementation to secure a sustained profitability level in this lower yield environment. Due to the situation with continued weak economies and the general uncertainties, the outlook remains cautious. ===================== S W I T Z E R L A N D ===================== ABB LTD: Swedish Authority Files Lawsuit Against ABB Building ------------------------------------------------------------- The Swedish Competition authority is suing unit of ABB Ltd., the debt-laden engineering group, on suspicions of price cartel. AFX News, citing Dagens Industri, said ABB Building Systems is suspected of conniving with ventilation company Keyvent in anti-competitive behavior in the pattern of business prices. The Swedish authority is demanding Keyvent to pay SEK660,000, and ABB SEK23 million. ABB's potential obligation was cut by 50% after it handed over information on an internal investigation. There is no indication whether ABB itself or its subsidiary will pay the amount in the event that it loses to the Swedish Competition Authority, AFX further said. ABB Ltd. recently sold its Nordic building systems operations to further reduce its debt and strengthen its balance sheet. The company believes the recent issue will not affect its planned disposal, according to the report. ASCOM: Wins CHF67 Million Contract from City of Montreal -------------------------------------------------------- Ascom's Transport Revenue Business Unit has won an important contract from Canada. The transport authority of the city of Montreal has placed an order worth CAD66 million (CHF67 million) for chipcard-based fare collection and access control systems. Ascom Transport Revenue won the public bid against a large field of contenders, thanks among other things to previous successful reference projects: Ascom installed fare collection systems of similar complexity for the public transport networks of Lyon, Paris and Milan. State-of-the-art chipcard-based technologies form the core of the new access control systems as well as the stationary mobile sales and validation terminals for the public transport authority of the city and conurbation of Montreal. Societe de transport de Montreal has awarded the contract to Ascom on behalf of l'Agence metropolitaine de transport, Societe de transport de Laval, Reseau de transport de la Capitale, Reseau de transport de Longueuil as well as the "Conseil intermunicipal de transport de Sorel-Varennes." "This 67-million-franc order is of key importance for Ascom and the Transport Revenue Business Unit," says Juhani Anttila, Chairman and Chief Executive of Ascom. In 2002 Transport Revenue posted revenues of CHF283 million. Successful reference projects worldwide. "This large contract from Canada comes on the heels of similar projects for other major transport companies," explains Riet Cadonau, Head of Ascom Transport Revenue. "The major order from Montreal shows that when it comes to complex projects for fare collection systems in large conurbations, Ascom is the world's Number One choice." In 2002 Transport Revenue introduced a similar project for fare collection in the city and suburbs of Lyon. Other successful reference projects include the RATP public transport authority of Paris, the French railway operator SNCF, the Milan transport authority in Italy and the Swiss Federal Railways SBB. Ascom Transport Revenue is among the world's leading providers of networked revenue collection systems for public transport systems, parking management and toll collection. The company's tailor-made customer solutions are the product of an intelligent combination of proprietary key components and standard modules. About Ascom Ascom is a solution- and service-oriented technology company that holds a leading market position in its selected business areas. Around the world Ascom plans, builds, services and operates secure, high-availability voice and data networks and develops solutions for integrated revenue collection systems. With a service-oriented portfolio and proven technology know-how, Ascom business units offer discerning customers tailor-made integrated solutions right the way along the value chain. Ascom is committed to profitable growth worldwide. Ascom registered shares (ASCN) are listed on the SWX Swiss Exchange in Zurich. SWISS INTERNATIONAL: Chief Open to Possible Sell-off, Merger ------------------------------------------------------------ The chief executive of Swiss International Air Line, Andre Dose, is making his plans to sell or merge the struggling national carrier open to the public. News24.com quoted Mr. Dose saying in an interview with weekly newsmagazine Finanz und Wirtschaft: "It is important that we correct the attitude that Swiss independence is the most important thing ... [because] in the future that can't be the attitude." He confirmed he is in talks with European carriers Lufthansa, British Airways and Air France, as well as with "several other big airlines worldwide" on the possibility of a cooperation deal or a merger. But he declined to comment on the state of the negotiations. Swiss announced last month plans to downsize fleet by a third, and slash more than 3,000 jobs after realizing it would not be able to return to profit as planned in 2003. It blamed the continuing economic instability, the SARS crisis and major changes in European air travel caused by increasing influence of low-cost carriers, for its woes. =========================== U N I T E D K I N G D O M =========================== AQUILA INC.: Affiliate Defaults on US$250 Million Loan ------------------------------------------------------ Aquila, Inc. (ILA) announced that MEP Pleasant Hill, LLC, in which Aquila holds a 50% interest, was unable to refinance or repay US$270 million of construction loans prior to their June 26, 2003 maturity and accordingly has defaulted. The loan proceeds were used to fund the construction of the Aries Power Project, a combined-cycle, gas-fired power plant located near Pleasant Hill, Mo. In response to the default, the lenders have drawn on letters of credit totaling US$37.5 million pledged by Aquila to support the loan. This action was anticipated. The letters of credit were fully cash collateralized and thus this action does not impact Aquila's near-term liquidity. Aquila is exploring alternatives to restructure the project. The project financing is non-recourse to Aquila and as such the default has no impact on Aquila's other credit arrangements or utility operations. The plant will continue to run according to contractual obligations and market needs. Other operating contracts, including tolling agreements for the power generated by Aries, remain current and are not affected by the default. Based in Kansas City, Mo., Aquila operates electricity and natural gas distribution networks serving customers in seven states and in Canada, the United Kingdom and Australia. Aquila also owns and operates power generation assets. More information is available at http://www.aquila.com CONTACT: AQUILA, INC. Investor Contacts: Neala Clark Phone: 816/467-3562 BAE SYSTEMS: Inks MoU with Finmeccanica to Formalize Partnership ---------------------------------------------------------------- BAE Systems plc and Finmeccanica SpA have signed a Memorandum of Understanding to establish Eurosystems, a partnership that would bring together their European defense electronic systems activities. The partnership establishes a Strategic Coordination Committee and three majority-controlled Joint Ventures, each with clear operational control of its business. The Strategic Coordination Committee, formed by senior managers of the shareholders, will facilitate the cooperation and interaction of the joint ventures. The Strategic Coordination Committee will also ensure that the JV strategies support the multi-domain nature of future defense requirements and respond to the demand for highly integrated systems. The three JVs will operate in these areas: (a) A Systems Integration and C4ISR business, to be majority owned and managed by BAE SYSTEMS, with capabilities in C4ISR information systems and sub-systems, combat management systems, land & naval radars and air traffic control systems. The business will be formed from existing activities of AMS (a 50-50 JV of BAE Systems and Finmeccanica) and BAE SYSTEMS C4ISR (less communications). (b) A Communications Systems business, to be majority owned and managed by Finmeccanica, with capabilities in strategic and tactical communication systems, networks and secure systems. The business will be formed from the existing activities of Marconi Selenia Communications and the communications activities of BAE SYSTEMS C4ISR. (c) An Avionics business, to be majority owned and managed by Finmeccanica, with capabilities in sensor systems, airborne radars, mission systems, electro-optics and electronic warfare systems. The business will be formed from activities within BAE SYSTEMS Avionics and Finmeccanica's Galileo Avionica. Having established the principle of a structure and management framework that delivers clear accountability and positions the businesses in line with the needs of the market, the two companies will move into a detailed process of valuation. The formation of the three joint ventures is subject to the parties executing definitive agreements and obtaining all necessary regulatory clearances. The arrangements announced do not affect the interests of BAE Systems and Finmeccanica in MBDA. Richard Evans and Pierfrancesco Guarguaglini, the Chairmen of the respective parent companies, said in a joint statement: "Our companies have shared objectives in a desire to improve their performance in the market, establish businesses that address the trend towards integrated systems and enhance their operational effectiveness. The MOU we have signed provides the framework to achieve these objectives. Much detailed work remains to be done before the new companies are operational but we are confident that we will create companies that will meet our customers' requirements and provide opportunities for profitable growth." CAZENOVE: Stock Market Slump Halves Value to GBP546 Million ----------------------------------------------------------- The decline in equity markets has halved Cazenove's value in only two years after its incorporation. London's most influential stockbroker was valued at GBP546 million on Friday after its first international auction, the Financial Times reported. Of 217.6 million shares in issue, just over 635,000 shares changed hands at 251p, the report said. In contrast, the shares were valued at 500p in April 2001, giving the company an equity value of GBP1.1 billion. The firm had planned to seek a market listing, but opted to establish an internal dealing facility after deciding against the move in January because of weak equity markets. Last week, it emerged that Cazenove's profits before tax and exceptional items for the year to end-April were down 77% to GBP14 million, fueling even more speculations it could consider selling itself. But Chairman David Mayhew and Chief Executive Robert Pickering ruled out a sale saying: "We still think there's value to be created in this business as we are," adding that a stock market listing "remains the goal." The share auctions will continue each week until the end of July, after which they will be held once a week for four weeks after the release of each set of quarterly results. CONVERGENT COMMUNICATIONS: Court Grants Administration Order ------------------------------------------------------------ The High Court of Justice at Leeds granted an administration order over the company and two of its subsidiaries, including its only trading subsidiary Convergent Telecom Limited on Thursday June 26, 2003. The order was granted following the presentation of a petition by the directors after discussions concerning the sale of Telecoms broke down and creditors seeking payment presented petitions for the winding up of the Company and Telecoms. The order was granted on the grounds that it would be likely to achieve a more advantageous realization of the company's and the two subsidiaries' assets than would be effected on a winding-up. The Court appointed Hunter Kelly and Garry Wilson, both of Ernst & Young LLP, Cloth Hall Court, 14 King Street, Leeds, LS1 2JN to manage the affairs, business and property of the Company and its subsidiaries during the period for which the order is in force. The Administrators are able to announce that agreements were concluded to sell Telecoms field engineering and repair business on June 26, 2003 to Jetdawn Limited a related company to Fone Logistics Limited and its mobile phone customer base to Genesis Communications on June 27, 2003, a division of DSG Retail Limited. The proceeds of these disposals will be insufficient to discharge all the creditor claims and will be used to repay the secured creditor. The remaining business of connecting dealers to the Networks has ceased operations as the Network operators terminated Telecoms service provision license. The administrators are currently exploring the value contained within the AIM listing of the company. However, if they are unable to establish any value from this then there is no prospect of a dividend to unsecured creditors and there will be no return to shareholders. Further announcements will be made in due course with regard to the AIM listing. CORDIANT COMMUNICATIONS: Sells FD International for GBP26 Mln ------------------------------------------------------------- Cordiant has entered into a conditional agreement to sell 100% of FD International, its business communications network, to new legal entities owned and financed principally by funds managed by Advent International, the global private equity firm. The purchase consideration is GBP26.0 million payable in cash at completion. The GBP26.0 million is subject to upwards or downwards adjustment based on a completion statement to be agreed or determined following completion. This transaction represents the final step in Cordiant's stated plan to reduce debt through a program of non-core asset disposals. The net transaction proceeds will be applied to repay borrowings. FD International is a pan-European and North American business communications network focused on developing and implementing strategic communications programs. It provides a range of services to clients including: financial and corporate public relations, investor relations, employee and integration communications, crisis and issues management, media and presentation training and corporate reporting. As well as presence in the U.K., FD International has operations in Ireland, France, Germany, and Greece and through affiliates in Italy and Sweden. In the U.S., FD International has operations in New York, Boston and San Francisco. In the year ended December 31, 2002, FD International generated revenue of GBP33.9 million and profit before tax of GBP3.7 million (after exceptional items). Net assets attributable to FD International as at December 31, 2002 were GBP6.6 million. FD International's synergy with the Bates Group is minimal. FD International has few customer relationships in common with the Bates Group and is independently located and operated. The disposal of FD International is not, therefore, expected to have a material operational impact on any other part of the group. A circular will be sent to shareholders shortly seeking their approval for this transaction at a meeting expected to be held on July 23, 2003, immediately before the meetings convened to consider the proposed acquisition of Cordiant by WPP Group plc. CONTACT: COLLEGE HILL Phone: +44 (0) 20 7457 2020 Alex Sandberg Adrian Duffield GLAXOSMITHKLINE PLC: Result of Exec. Pay Review Remains Pending --------------------------------------------------------------- The review launched into GlaxoSmithKline's controversial remuneration policy is still ongoing, said a spokesman for the pharmaceuticals company. Shareholders rejected the package in May, and though the vote was only advisory, the drug company was forced to hire accountancy firm Deloitte & Touche to overhaul the pay policy. The center of the revolt was the GBP22 million- "golden parachute" due to CEO Jean-Pierre Garnier in case he loses his job. In a recent development, Mr. Garnier is reported to have said he is willing to give up part of the package once he steps down. A GSK spokesman said: "It is a process that is still ongoing. When completed, the review will be looked at by the remuneration committee." The Telegraph quoted GlaxoSmithKline chairman Sir Christopher Hogg saying after the annual meeting he had "genuinely open minds" about the outcome of the review. Speculations circulate among City analysts and shareholder groups that the drug company would eventually replace its two-year rolling contracts for executives with one-year deals. They are also discussing the possibility that Mr. Garnier will give up his rights to share options and long-term incentives. HAMLEYS PLC: DC Thomson Sides with Children's Stores in Bid ----------------------------------------------------------- Dundee publisher DC Thomson has joined the race to acquire up market toy store chain, Hamleys, through its membership in the consortium backing Tim Waterstone's bid. Dutch bank ING confirmed in a stock market statement DC Thomson's involvement in Children's Stores Holdings, Waterstone's bid vehicle, according to The Scotsman. The statement also confirmed the participation of New York-based finance house, Rhone Capital and Barings (Guernsey) Ltd. DC Thomson declined to elaborate on the announcement, according to the report. Mr. Waterstone is bidding against Icelandic retail investment group Baugur. Baugur recently said it had won the support of more than 25% of the target's shares for its increased 254p-per-share bid. The bid topped Mr. Waterstone's offer of 230p per share on Friday. He also previously trumped Baugur's first offer of 226p. IMPERIAL CHEMICAL: Henkel Eyes U.S. Starch Business, Report Says ---------------------------------------------------------------- German consumer goods group, Henkel KgaA, is interested in buying Imperial Chemical's U.S. unit, National Starch and Chemical Company, according to Focus magazine. Henkel is reportedly willing to pay up to EUR2.6 billion (US$2.98 billion) for the acquisition that it expects would boost industrial client base. The company, which analysts say is under pressure to acquire companies to remain competitive, intended to buy German haircare group Wella, but lost to Procter & Gamble. Henkel officials were not immediately available for comment, Reuters said. National Starch and Chemical is a manufacturer of adhesives, specialty synthetic polymers, electronic and engineering materials and natural polymers with annual sales of nearly US$3 billion. INVENSYS PLC: Completes US$44 Mln Sale of Teccor to Littelfuse -------------------------------------------------------------- Invensys plc announces that it has completed the sale of Teccor Electronics to Littelfuse Inc. for US$44 million cash with a future payment of US$5 million contingent upon sales of Teccor products reaching US$107 million in 2005. The sale proceeds will be used by Invensys to pay debt. Teccor produces semiconductors and other products for the telecom equipment protection market. It is headquartered in Dallas, Texas with a second assembly operation in Matamoros, Mexico. For the twelve months ended March 31, 2003, the business generated revenues of US$75 million. Net assets, including capitalized goodwill, are approximately US$82 million. The sale of Teccor is consistent with Invensys' previously stated objectives to divest non-core assets as part of its overall plan to improve capital strength and increase strategic focus. Littelfuse Inc is a global leader in providing circuit protection solutions covering computers, telecoms and medical devices. It is also the leading provider of circuit protection for the automotive industry and the third largest producer of power fuses in North America. Rick Haythornthwaite, CEO of Invensys said: "This sale again demonstrates our ability to make rapid progress on our disposal program. As a strategic buyer, Littelfuse provides Teccor and its customers with the surety of a strong future." About Invensys plc Invensys is a global leader in production technology. The group helps customers improve productivity, performance and profitability using innovative services and technologies and a deep understanding of their industries and applications. Invensys Production Management works closely with customers to increase performance of production assets, maximize return on investment in production and data management technologies and remove cost and cash from the supply chain. The division includes APV, Avantis, Eurotherm, Foxboro, IMServ, SimSci-Esscor, Triconex, M&I and Wonderware. These businesses address process and batch industries -- including oil and gas, chemicals, power and utilities, food and beverage, pharmaceuticals and personal health care products, metals and mining -- plus the discrete and hybrid manufacturing sectors. Invensys Rail Systems is a global leader in the design, manufacture, supply, installation, commissioning and maintenance of safety-related rail signaling and control systems as well as a complete range of rail signaling and communications products. The business includes Westinghouse Rail Systems Limited, Dimetronic Signals, Safetran Systems, Burco Services, Westinghouse Signals Australia and Foxboro Transportation. Westinghouse Rail Systems Limited was recently awarded a contract valued at more than GBP850 million (US$1.3 billion) for the renewal of signaling on the London Underground. Invensys also currently serves other market sectors through its Development Division. The businesses in this division are: Appliance Controls, APV Baker, Baan, Climate Controls, Hansen Transmissions, Lambda, Metering Systems, Powerware and Teccor. Invensys is actively seeking to develop these businesses through equity partners or new owners. Invensys operates in more than 60 countries, with its headquarters in London. CONTACT: INVENSYS PLC Phone: +44 (0) 20 7821 3529 Duncan Bonfield Brunswick Phone: +44 (0) 20 7404 5959 Ben Brewerton/Sophie Fitton Homepage: http://www.invensys.com LE MERIDIEN: Saudi Billionaire Takes Part in Rescue Talks --------------------------------------------------------- Hopes that troubled Le Meridien could finally be rescued rise after it emerged that Saudi billionaire Prince Al-Waleed bin Talal is in talks with shareholders regarding the hotel chain's future. The prince is the 11th richest man in the world whose interests include stakes in Canary Wharf and the Four Seasons hotel in London. His negotiations with shareholders, including Terra Firma, the private equity vehicle headed by Guy Hands, and Alchemy Partners, is regarded as a new twist in attempts to secure the future of the operation. Lehman Brothers, the biggest holder of the chain's GBP240 million mezzanine debt, has proposed to inject GBP150 million into the hotel chain, but this has not materialized so far. According to the Telegraph, one source close to the discussions said: "Because Lehman hasn't done that, there is a chink of light for the good prince." Le Meridien's fate became uncertain after reports surfaced it would not be able to pay some GBP20 million in rents owed to Royal Bank of Scotland that came due at the end of June. Lehman Brothers offered a GBP4 million down payment, enabling it to continue rescue talks with creditors for two weeks. SMG PLC: Shares Slide 10% on ABN Amro Downgrade ----------------------------------------------- Debt-laden newspaper publisher, SMG Plc, saw its shares fall to 10% last week, as it fell victim to a broker downgrade on Thursday. Investment bank ABN Amro cut SMG's prospects, citing weak trading conditions in the Scottish media giants' television and radio markets, The Scotsman news agency said. ABN Amro's decision wiped about GBP30 million from the Scots group's market capitalization over the past two days. Following the downgrade, SMG's investors pummeled the shares by 9% and equity dipped a further 1.5%, or 1p, to 73p the next day. A bounce in its stock price, dragged up by the FTSE, saved the firm from heavier losses, the report said. The company, which reported a full-year, pre-tax-loss of GBP16.1 million last year, sold its publishing business to Gannett last month to halve a GBP400 million debt load. CONTACT: SMG PLC Andrew Flanagan, Chief Executive Phone: 0141 300 3300 SUNSTREET PRINTING: Cashflow Woes Force Firm to Call Receivers -------------------------------------------------------------- The 33 staff of Sunstreet Printing Works Ltd., a long-established Yorkshire commercial printing company, was made redundant after directors called in receivers from accounting firm Deloitte & Touche. According to Yorkshire Today news agency, Sunstreet of Keighley experienced cashflow problems that forced the demise of the printing firm. Administrative receiver Angus Martin, a partner at Deloitte & Touche, said the business was being traded as a going concern with a view to a sale. He said: "Our intention is to trade the business for the time being in the hope that a buyer can be found." A sale could save its remaining 80 staff. Sunstreet provides managed print solutions including a Direct Mail capability. A major reorganization, restructuring and financing of the company took place in February and March 2001. CONTACT: SUNSTREET PRINTING WORKS LTD Factory 1 Keighley BD21 5JB Phone: 01535212414 Homepage: http://www.sunstreet.co.uk/ WEST: Finance Director Resigns Following Sale of Last Division -------------------------------------------------------------- In April 2003, West completed the sale of the last division of its operating businesses. As the company no longer has any trading activities, by mutual agreement with Paul Burton, the board has now confirmed his resignation as finance director and company secretary. The secretarial function has been taken over by the company's financial adviser, Ludgate Investments Limited; and, in conjunction with Ludgate, the board of West has been reviewing the Company's position. The company has a deficit and, at present, is unable to pay its debts as and when they fall due. However, the board has been working with Ludgate and with Numis Securities Limited, and expects to be able to raise the necessary funding to offer a cash settlement to its creditors, who consist mostly of the company's present and recent advisers. It is expected that this offer will be made within the next seven days. The company is also disputing a claim for unfair dismissal from an ex-employee. Ludgate and Numis continue to work with the board of West to identify a basis for West to be used as a quoted shell to acquire a suitable business. ********* 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. 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 * * *