/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/040105.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Monday, January 5, 2004, Vol. 5, No. 2 Headlines F R A N C E ALSTOM SA: Fully Implements Financial Rescue Package SUEZ SA: To Redeem 2005 Senior Exchangeable Bonds Next Month G E R M A N Y DRESDNER BANK: Turns over Financial Market Database to Partner I T A L Y PARMALAT FINANZIARIA: Aussie Unit to Continue Paying Suppliers PARMALAT FINANZIARIA: Commissioner Administers Two More Units PARMALAT FINANZIARIA: Former Auditor Denies Any Wrongdoing PARMALAT FINANZIARIA: Raid Recovers Crucial Pieces of Evidence PARMALAT FINANZIARIA: Seven More Linked to Fraud, Arrested PARMALAT SPA: Assures Business Partners of Normal Operations N O R W A Y AKER KVAERNER: To Disposed of Oil, Gas Assets in First Quarter U N I T E D K I N G D O M AMP LIMITED: Execs Snap up HHG Shares to Show Support for Split BALTIMORE TECHNOLOGIES: Replaces Oriel Securities as Stockbroker BIG FOOD: Promises to Keep Londis Operations Separate CHARTCITY LIMITED: Murray Financial Buys Resurge Pubs EQUITABLE LIFE: Chances of Returning to Equities Market Nil HAWTIN PLC: Shareholders Approve Disposal of Spaform Limited INDEPENDENT NEWS: Sells Kent & North West Newspaper Divisions LE MERIDIEN: Lehman Brothers Poised to Snatch Non-U.K. Business PPL THERAPEUTICS: Disposal of the NT Intellectual Property QUEENS MOAT: Seeks Buyers for British, Dutch, German Businesses ROYAL MAIL: Post Office Discontinues Home Insurance Business ROYAL MAIL: Launches Regulated Compensation Scheme VOSS NET: Restructuring via Company Voluntary Arrangement Okayed WEMBLEY PLC: Bid Talks Still On Despite Adverse U.S. Ruling ********* =========== F R A N C E =========== ALSTOM SA: Fully Implements Financial Rescue Package ---------------------------------------------------- French heavy engineering company, Alstom S.A., has fully implemented the financial rescue package designed last summer by completing on December 23, 2003 the issuance of EUR901.3 million convertible bonds. The bonds were listed on the Premier Marche of Euronext Paris on the same day. Dow Jones Newswires, citing the company, said EUR295 million of the issue were subscribed "on a irreducible and reducible basis," the remainder by the financial institutions who guaranteed the issue. The French government also bought subordinated bonds for EUR300 million, the report said. This carries a maturity of 20 years and will be paid back in shares if the European Union Commission approves the package. In addition, the government also bought subordinated bonds worth EUR200 million with a 15-year maturity and subordinated loans for a principal amount of EUR1.5 billion. Prior to this, a rights issue for EUR300 million, reserved for financial institutions, was launched on November 20, the report said. SUEZ SA: To Redeem 2005 Senior Exchangeable Bonds Next Month ------------------------------------------------------------ Suez (previously Suez Lyonnaise des Eaux) gives notice to Bondholders regarding early redemption of the GBP246,601,000 2.5% Senior Exchangeable Bonds due 2005 (ISIN Code FR0000484891) Exchangeable into Ordinary Shares of UMICORE (previously Union Miniere S.A.). Capitalized terms used but not defined in this notice shall have the same meaning given to them in the Offering Circular for the Bonds dated January 12, 2001. In accordance with Condition 4(b)(ii) of the Terms and Conditions of the Bonds, Suez hereby gives you irrevocable notice that all the outstanding Bonds will be redeemed on February 20, 2004 at a redemption price equal to the principal amount of each Bond, together with accrued interest, but excluding the Redemption Date, subject to Condition 5(f)(iii). This provides, inter alia, that if the Bonds are to be redeemed under Condition 4(b) as in the present case, the Exchange Period with respect to such Bonds (during which the holder may elect to have any of his Bonds redeemed by exchange for a Pro Rate Share of the Exchange Property) will terminate at the close of business of Suez on February 13, 2004 which is the seventh day prior to the Redemption date. On the basis of the Redemption Date being February 20, 2004, accrued interest on each Bond of EUR1,000 shall amount to EUR2.54. Under Condition 5 of, and as otherwise provided in, the Terms and Conditions of the Bonds, you have the Exchange Right to have any of your Bonds redeemed by exchange for a Pro Rate Share of the Exchange Property calculated on the Decision Date, subject to Suez's Cash Settlement Rights, by giving an Exchange Notice to the Exchange Agent before termination of the Exchange Period on February 13, 2004 as referred to above. The form of Exchange Notice may be obtained from the Fiscal Agent/Exchange Agent on request. for and behalf of Suez Fiscal Agent and Exchange Agent Banque Generale de Luxemburg ============= G E R M A N Y ============= DRESDNER BANK: Turns over Financial Market Database to Partner -------------------------------------------------------------- Dresdner Bank is handing over to IBM Germany the management, development and running of its financial market information database. In the future, it will call in on demand the data it needs from the database. The two companies signed an agreement to this effect in Frankfurt on December 19, 2003. Along with the database, 24 bank employees will transfer to IBM from February 1, 2004. Joint development The two companies developed the market database jointly in recent years. It collects, archives and analyzes financial information of various kinds and processes it for risk control use by the bank, giving highest priority to data quality assurance. IBM will manage the entire process and operate the database for the bank as a business transformation outsourcing provider. It will also offer the service to other customers. Sustainable cost savings For Dresdner Bank selling the market database is a proof for the competitiveness of this product and the underlying processes. At the same time, this is in line with the "New Dresdner" future program, which aims at focusing the bank on their core competencies. "With IBM handling process management and running the database, Dresdner Bank will be able to achieve sustainable cost savings with constant quality and an assured supply of all the relevant market data whilst keeping our own know-how in risk valuation and management," said Otto Steinmetz, Dresdner Bank Director in charge of risk management. Offer to other companies IBM will offer the market database services to other companies, too. The target group for this quality-assured financial market data includes universal and investment banks and insurers, asset managers, and corporate groups. "Buying in market data of this kind is interesting not just because it costs less than an in-house solution but because of the higher quality of the data provided. That should be of interest for all banks and insurers for whom the new service will provide more and better data," said Norbert Dick, IBM's managing director worldwide of business with the Allianz Group. Independent market research institutes such as Risk Water, Iverson or the TowerGroup estimated the market volume for reference data in Europe at around US$1.3 billion in 2001 and likely to grow further. Especially with Basel II and Solvency II in mind, around 25 percent of banks are considering either outsourcing or buying in these services, the market research surveys report. ========= I T A L Y ========= PARMALAT FINANZIARIA: Aussie Unit to Continue Paying Suppliers -------------------------------------------------------------- Queensland dairy farmers are confident it will still be business as usual in Australia despite the woes of Parmalat Finanziaria S.p.A., which owns local brand Pauls Ltd., The Advertiser said last week. Parmalat Australia Managing Director David Lord recently wrote dairy farmers, assuring them the woes of its Italian parent won't affect the company's ability to pay local suppliers. Headquartered in Brisbane, Parmalat is one of Queensland's two major milk processors and employs 800 people in Australia. Queensland dairy farmer Pat Rowley, chairman of the 430-strong farmer bargaining group, Premium Milk Ltd, told The Advertiser dairy farmers had negotiated supply contracts to 2007 and a price contract to the end of 2004 with Parmalat. "We got our cheque last month and we will next month. We are not dependent on the parent body," The Advertiser quoted him as saying. If Parmalat do collapse, he is confident National Foods will pick up the pieces. National Foods, along with eight others, is among those who have expressed interest in taking over the local Parmalat should the turmoil at the Italian parent spills over to local operations. There are reports that some farmers in Italy and Brazil have not been paid for their milk, The Advertiser said. PARMALAT FINANZIARIA: Commissioner Administers Two More Units ------------------------------------------------------------- Parmalat Finanziaria S.p.A. communicates that Dr. Enrico Bondi, Extraordinary Commissioner of its subsidiary company Parmalat S.p.A., has requested that the Minister of Productive Activities admit Parmalat Finanziaria S.p.A., Eurolat Spa e Lactis Spa to the Extraordinary Administration procedure referred to under Article 3, section 3 of Legislative Decree no. 347 of December 23, 2003. This request has been accepted and Dr. Bondi has been named Extraordinary Commissioner for the above three companies. On December 24, 2003, the subsidiary company Parmalat S.p.A. was placed under Extraordinary Administration by Decree from the Minister of Productive Activities in accordance with the same Legislative Decree no. 347 of December 23, 2003, which relates to urgent measures for the restructuring of major companies. Dr. Bondi was appointed Extraordinary Commissioner for the Company on the same date. PARMALAT FINANZIARIA: Former Auditor Denies Any Wrongdoing ---------------------------------------------------------- Grant Thornton, the accounting firm that audited Parmalat's books from 1990 to 1999, denied last week it helped the Italian group tamper with its accounts, which is now the centerpiece of a widening fraud investigation. Jailed founder and former chairman, Calisto Tanzi, recently admitted misappropriating some EUR500 million in corporate funds in a span of eight years, which means the accounting firm was still connected to Parmalat at the time Mr. Tanzi began siphoning off money from the group. According to The Telegraph, Deloitte & Touche took over the auditing chores in 2000, but Grant Thornton remained the auditor of Bonlat Financing Corporation, a Parmalat subsidiary that was supposed to have US$4 billion in the bank. Authorities have since declared the amount a ghost account. Grant Thornton insists it was tricked into signing off the 2002 accounts of Bonlat Financing Corporation. Its umbrella organization, Grant Thornton International, is now conducting an internal inquiry to determine the extent of the firm's involvement in the scandal, which is reminiscent of Andersen's involvement in Enron's accounting fraud scandal. "We are reviewing whether any other Grant Thornton firm is doing or ever did any work for Parmalat," an unnamed spokesman told The Telegraph. Just like Andersen, the erstwhile No.5 accounting firm that collapsed two years ago, Grant Thornton International comprises a loose association of 110 country firms, each of which is a separate legal entity, The Telegraph said. PARMALAT FINANZIARIA: Raid Recovers Crucial Pieces of Evidence -------------------------------------------------------------- Italian and U.S. authorities are now studying documents police recovered during a raid of a shell company near the headquarters of Parmalat, the Financial Times said Thursday last week. Investigators are currently broadening their search for the missing EUR8-10 billion in corporate funds, some EUR500 million of which founder Calisto Tanzi had already admitted to have misappropriated. The scandal broke when Bank of America disclosed a few weeks ago that an account supposedly containing EUR3.95 billion in the name of Bonlat, a Cayman Islands subsidiary, was a forgery. According to the Financial Times, the documents recovered from shell company, Dpa, could provide a breakthrough in the investigation, as they contain the "accounting structure" of all the companies in Parmalat. Earlier, initial investigations into the Cayman Island subsidiary were hindered by lack of documents widely believed to have been destroyed long ago. Prosecutors have formally requested the cooperation of banks in the U.S., South America and Italy, which they believe had ties with the collapsed milk empire of Mr. Tanzi. PARMALAT FINANZIARIA: Seven More Linked to Fraud, Arrested ---------------------------------------------------------- Seven more people were arrested last week by authorities in connection to the large-scale fraud uncovered at Italy's No.8 conglomerate, Parmalat Finanziaria S.p.A. According to The Financial Times, the seven were Lorenzo Penca, Maurizio Bianchi, chairman and partner of Grant Thornton's Italian affiliate, respectively; former CFOs Fausto Tonna and Luciano Del Soldato; Gianpaolo Zini, an external Parmalat lawyer; and Parmalat accountants, Gianfranco Bocchi and Claudio Pessina. The arrest follows that of founder and former chairman, Calisto Tanzi, who has admitted to misappropriating over EUR500 million in company funds while being interrogated by authorities inside his cell in Milan's San Vittore prison early last week. He said most of the money went to Parmatour, a family-controlled leisure and travel business. The paper said the other officials now in custody will undergo similar interrogations and charges should be filed shortly. On Tuesday, Mr. Tanzi requested that he be held under house arrest, but Milan magistrate, Guido Salvini denied his petition. Under Italian law, the report said, a suspect can be held in custody if prosecuting magistrates believe he could flee the country or tamper with evidence. The judge added he was "unconvinced" by Mr. Tanzi's account of his trip to Ecuador before Christmas, and his claim to have no overseas accounts. Also last week, Parmalat court-appointed administrator, Enrico Bondi, began taking steps to recover any profits made by individuals or institutions involved in the fraud. As administrator he possesses "sweeping powers," according to the Financial Times, which include seeking damages and retrieving company funds that might have been pocketed by Mr. Tanzi, other executives or institutions proven to have had a hand in the fraud. "People close to the company said that Mr. Bondi and his assistants were still quantifying the amount of missing funds -- conservatively put at EUR7 billion to EUR10 billion -- and assessing whether they would be able to retrieve any of the money," the Financial Times said. "We still want to know where the money came from, where it went, how it got there and how much of it, if any, is retrievable," the paper quoted one person familiar with the case. Meanwhile, the Financial Times said the company's main creditor banks are still willing to extend new loans to the beleaguered group. At least one overseas unit based in Brazil is facing legal actions for failing to pay local suppliers. Under an emergency government decree passed last week, new bank loans "will be the first credit to be reimbursed," according to the Financial Times. PARMALAT SPA: Assures Business Partners of Normal Operations ------------------------------------------------------------ Parmalat S.p.A., having entered into extraordinary administration, is carrying out as normal its business activities, guaranteeing the continuity of existing relationships with industry operators. Specifically, Parmalat S.p.A. intends to act to preserve the value of the Company and its brands, also reassuring farmers with regard to payments for raw materials. =========== N O R W A Y =========== AKER KVAERNER: To Disposed of Oil, Gas Assets in First Quarter -------------------------------------------------------------- The Aker Kvaerner Group is currently undertaking an internal global legal restructuring of, inter alia, its Oil and Gas and Engineering and Construction assets. The restructuring is aimed at simplifying and improving the alignment of the Group's legal and operational structures. As part of that restructuring, Aker Kvaerner PLC has entered into agreements with other companies within the Group for the disposal of its Oil and Gas assets. Final completion of such disposals is expected to take place within the first quarter of 2004. All transaction values relating to the disposals by the Company will be verified by an independent third party, and are being conducted in accordance with the requirements of the restrictions and covenants contained in the Company's listed debt securities. =========================== U N I T E D K I N G D O M =========================== AMP LIMITED: Execs Snap up HHG Shares to Show Support for Split --------------------------------------------------------------- Investors continued to snatch shares of HHG from the market last week, encouraged by news that directors of AMP Limited, its Australian parent, have raised their stakes in the demerged unit, The Advertiser said. According to the report, AMP CEO Andrew Mohl has spent AU$200,000 buying HHG shares since listing on the Australian market on December 23. He had reportedly bought 220,000 shares at 91c each in an acquisition spree described by a spokeswoman as "a vote of confidence" in HHG. HHG directors have also trooped to the market, buying hundreds of thousands of shares on the London Stock Exchange. They include new HHG CEO Roger Yates, who bought 250,000 shares at 37p (91c), spending a total of AU$227,500 on December 23. HHG Chairman Malcolm Bates also bought 100,000 shares at 37p apiece while fellow directors Peter Costain and Sir William Wells also snapped up 100,000 shares at the same price, The Advertiser said. Listed at 88c barely two weeks ago, the shares closed 7.6% higher at 99c Thursday last week. This represents a bonus for institutional investors, who had paid 72c for their shares. The gains also represent an additional windfall for directors, who prior to the demerger were collectively paid AU$38 million in so-called retention bonuses. Mr. Mohl had defended the use of the bonuses when they emerged in October, saying the loss of key executives could have derailed the demerger of AMP and its British operations, the report said. The retention package includes a AU$2.25 million one-off payment to Mr. Mohl and AU$2.75 million for Mr. Yates. Mr. Mohl's share purchases take his total holding in HHG to 478,799 shares, worth AU$474,011 at Thursday's closing price, according to the report. Mr. Yates' purchases take his holdings in HHG to 400,692 shares. BALTIMORE TECHNOLOGIES: Replaces Oriel Securities as Stockbroker ---------------------------------------------------------------- The former darling of the tech industry, Baltimore Technologies, has changed stock brokers, the Financial Times reported Friday. Oriel Securities will now handle the chore, replacing Arbuthnot. Baltimore, whose share register is dominated by private, rather than institutional, investors, disposed of its last operating business in November. It later announced that its options included returning cash to shareholders through liquidation or investing in a new business, possibly through a reverse takeover. The company also told shareholders that, assuming completion of disposals, it had pro-forma net cash of GBP26 million as of June 30. This amount, however, has since fallen, as Baltimore cleaned up its complex corporate structure and legal, tax and property liabilities. During its heyday, the company's market value exceeded GBP7 billion. BIG FOOD: Promises to Keep Londis Operations Separate ----------------------------------------------------- U.K.'s Big Food Group intensified its charmed offensive for Londis by outlining speculative plans in the event that it succeeds in taking over the convenience retailer. According to The Telegraph, the frozen food to cash and carry company, which has made a GBP40.3 million informal bid for Londis, plans to manage the firm as a separate company. Big Food claims the offer will give a better deal to nearly 2,000 small shareholders of the group than that being offered by rival Musgrave. "We are eager to put our business case to Londis shareholders so they know the facts about how we anticipate working with them if we are successful," Big Food Chief Executive Bill Grimsey said. Irish retailer Musgrave made a GBP40 million bid for Londis earlier this month. However, it later emerged that half the purchase price would be paid to four Londis directors and each of the company's small shareholders would receive GBP10,000. The offer was eventually withdrawn. Londis recently hired accountants KPMG after a number of other retailers expressed an interest in bidding. CHARTCITY LIMITED: Murray Financial Buys Resurge Pubs ----------------------------------------------------- Further to the announcement on December 29, 2003 where it was reported that Murray Financial Corporation PLC had acquired the share capital of Chartcity Limited from Resurge plc, the Directors of MFC, with the exception of Messrs. Constable and Rowland (who by nature of their position as directors of both parties to the transaction are considered related parties and have therefore abstained from any decisions relating to the transaction), can confirm, having consulted ARM Corporate Finance Limited, the Company's newly appointed nominated adviser, that the terms of the acquisition are fair and reasonable insofar as its shareholders are concerned. ***** Chartcity operates a group of seven pubs trading in London and the south of England under the name The Front Room. Resurge acquired the pubs out of receivership in October for GBP1.5 million, of which some GBP390,000 was drawn. CONTACT: Philip Reid, Chairman Phone: 07789 555544 Alan MacKenzie ARM Corporate Finance Limited Phone: 020 7512 0191 EQUITABLE LIFE: Chances of Returning to Equities Market Nil ----------------------------------------------------------- Equitable Life Chief Executive Charles Thomson has lost all hope to restore the finances of the stricken insurer despite the recent upturn in investment returns, The Telegraph reported Thursday. Mr. Thomson, who had been optimistic that Equitable Life's strong hold on the market could be reinstated, said "the economic downturn, particularly over the past couple of years, has really taken that possibility very substantially away." Equitable Life was brought to its knees by guaranteed annuity rate (GAR) promises in 2000. It has been forced to switch so heavily into fixed-interest securities to cover future liabilities that its GBP11.6 billion fund has had no exposure to equities since the start of 2003, subsequently preventing it to participate in returns from rising stock markets. A spokesman for the society said: "We have made it clear to policyholders that the with-profits fund is now a fixed-rate fund with little current prospect of it returning to equities." Meanwhile, Equitable's 385,000 policyholders are awaiting publication of Lord Penrose's report on an inquiry into the society's near-collapse. The report is under seal at the moment, as the Treasury has yet to check for legal problems before publishing. Policyholders are pinning their hopes on findings of regulatory failure that could lead to government compensation. Mr. Thomson however doused such hopes, saying even if there may be grounds to pursue the regulator on behalf of policyholders, it "may be something of a long shot because the legal hurdles are very high indeed." According to The Telegraph, if the report has found evidence of regulatory failure, the Treasury will also try to block compensation by arguing that policyholders who left the society before 1999 often enjoyed over-inflated returns. However, there remain still several hundred policyholders who poured in GBP4.5 billion new premiums into the society after 1999. These people claim they were not warned about the society's GAR difficulties, even though the authorities were aware of them by this time. HAWTIN PLC: Shareholders Approve Disposal of Spaform Limited ------------------------------------------------------------ The Board of Hawtin PLC is pleased to announce that the resolutions approving the disposal of Spaform Limited was passed unanimously at an extraordinary general meeting of Ordinary Shareholders held earlier today (December 31). ***** Hawtin announced the proposed disposal of Spaform to GW745 Limited for a gross cash sum of GBP4,000,000 on December 8, 2003. The proceeds of the Disposal will in the first instance be used to meet expenses of the Disposal, estimated to be some GBP100,000. The balance of the proceeds will be used to repay Group borrowings and to establish cash resources available for future property investment. INDEPENDENT NEWS: Sells Kent & North West Newspaper Divisions ------------------------------------------------------------- Independent News & Media PLC announces the completion of the sale by Independent News and Media Limited of its Kent and North West newspaper operations. This follows the exercise by Archant Regional Limited, on December 29, 2003, of a call option granted to it pursuant to an option agreement entered into on December 11, 2003 and announced on that day. CONTACT: Mark Edwards Buchanan Communications (London) Phone: +44.20.7466.5000 Elaine O'Mahoney Murray Consultants (Dublin) Phone: 00 353 86 8143938 LE MERIDIEN: Lehman Brothers Poised to Snatch Non-U.K. Business --------------------------------------------------------------- U.S. investment bank Lehman Brothers is close to taking over the non-U.K. businesses of troubled hotel operator, Le Meridien, the Financial Times said recently. The deal with the bank, which has offered roughly GBP750 million (UK$1.3 billion) to buy Le Meridien's senior debt from a 14-bank lending consortium, could be completed as early as tomorrow. If successful, it will bring to a close the deal that has been in the works since 2001. Lehman partly funded the GBP200 million slice of mezzanine financing extended to Le Meridien. With this latest deal, it could have the legal right to wrest ownership from its partners, the paper said. "As part of its agreement to provide mezzanine finance in 2001, (Lehman) secured pre-emption rights over the senior debt in order to protect its investment should the deal prove sour," the Financial Times said. Since encountering difficulty early last year, the 14-bank consortium has been running the operations of the hotel group. In December, the consortium signaled it was looking for a new investor when it made several boardroom changes. Le Meridien was sold by Compass to Numora's principal finance group, then headed by Guy Hands, in a deal worth about GBP1.9 billion in 2001. Not long after, the company encountered rough waters, which was exacerbated by the travel and tourism downturn caused by the terrorist attacks in September 2001. The group's equity holders are Mr. Hands; a team at Royal Bank of Scotland; Alchemy, the private equity group; Abbey National Treasury; and Juergen Bartels, the hotelier. They are estimated to have lost most of their GBP368 million investment in the business. PPL THERAPEUTICS: Disposal of the NT Intellectual Property ---------------------------------------------------------- PPL announces that it's subsidiary, PPL Therapeutics (Scotland) Limited, has entered into unconditional agreements to dispose of its in-licensed rights to the Roslin Institute's nuclear transfer patents and the related know-how to Exeter Life Sciences, Inc. The consideration of US$1.35 million (GBP0.76 million), which is payable in cash, has been received from Exeter on December 31, 2003. The NT intellectual property was used by PPL to create cloned sheep, but has not been used in its product development programs. PPL had fully expensed the costs associated with developing the NT intellectual property; as such the net book value of the NT intellectual property at 30 June 2003 was nil. Therefore, the sale of the NT intellectual property gives rise to an estimated gain on disposal of GBP0.76 million. The proceeds receivable of GBP0.76 million less tax and selling expenses will be used to supplement PPL's existing cash resources with a view to maximizing short-term value for shareholders. PPL will continue to provide further updates to shareholders at the appropriate time. CONTACT: Chris Greig, Chairman Adam Christie, Business Development Director PPL Therapeutics plc Phone: 0131 440 4777 Alistair Mackinnon-Musson Philip Dennis Hudson Sandler Phone: 020 7796 4133 Email: ppl@hspr.co.uk QUEENS MOAT: Seeks Buyers for British, Dutch, German Businesses --------------------------------------------------------------- Bidding for the regional hotels of Queens Moat Houses could start rolling soon, as the struggling hotels group has started looking for prospective buyers for its British, Dutch and German businesses, as part of an ongoing strategic review. According to the Financial Times, Morgan Stanley has distributed "teaser" documents to private equity groups, property investment firms and other hotel operators that are expected to indicate their valuation estimates within the next month if they are interested. Queens Moat is struggling with some GBP640 million of debt amid a difficult hotel climate in three of its regions and is currently conducting a strategic review alongside talks to renegotiate the debt with its bankers. It said a possible disposal of some or all of its businesses was only one of the options being considered as part of its review and no decisions would be made until the review process was completed. ROYAL MAIL: Post Office Discontinues Home Insurance Business ------------------------------------------------------------ Post Office Ltd announced on December 30, 2003 that it will be withdrawing its home insurance policy from the market on December 31, 2003. However, existing Post Office home insurance customers will still be covered for the duration of their policy. A pilot to offer an improved home insurance policy has been running at selected locations throughout the autumn. "We are continually reviewing our products to ensure they best meet the needs of our customers and the pilot will be evaluated in the New Year," explained Gordon Steele, Sales and Marketing Director, Post Office Ltd. "In the meantime, existing home insurance customers can continue to pay their policy installments in any of our branches and can rest assured that if the worst happens, any claim will be dealt with swiftly." CONTACT: POST OFFICE LTD 148 Old Street London EC1V 9HQ Homepage: http://www.postoffice.co.uk ROYAL MAIL: Launches Regulated Compensation Scheme -------------------------------------------------- Royal Mail's regulated compensation scheme for items delayed in the post comes fully into force from January 1, 2004. The company has already implemented most of the new arrangements (from October 6, 2003) in line with regulator Postcomm's determination. Royal Mail is one of the few postal companies in the world to pay compensation for delay to mail. From October 6, 2003 the scheme has given customers 12 times the cost of First Class postage for First Class letters that arrive more than four working days after posting and for Second Class letters that arrive more than six working days after posting. The compensation is GBP3.36 worth of postage in a book of First Class stamps. Customers need to provide evidence of delay. Business customers will get refunds on their postage bills if Royal Mail does not meet regulatory performance targets at the end of the financial year. They will receive 0.1 per cent refund (up to a maximum of five per cent) on their postage bills for each 0.1 per cent that Royal Mail is below targeted performance on relevant services, subject to a minimum failure of one per cent. The compensation will cover delay to business customers' mail, as appropriate, for the whole of the financial year 03/04. From January 1, 2004 the other elements of the mandatory scheme will be introduced. These are: (a) that in exceptional circumstances and with additional evidence of delay customers can claim GBP5 for delays as above. (b) for First and Second Class letters (and Standard parcels from April 2004) that arrive more than nine working days after their due delivery date, customers will be able to claim GBP10. Again this will only apply in exceptional circumstances and when customers provide additional evidence. (c) Additional compensation for delay will also be available for Royal Mail's Special Delivery 12:00 Next Day service, this is over and above the standard compensation for delay of fee refund if the item is not delivered by its guaranteed delivery time. Customers will be entitled to GBP5 compensation if their item is not delivered within 24 hours of the guaranteed delivery time (working days only) and GBP10 if it arrives 7 working days or more after the guaranteed day. This is in addition to the current compensation for the service (refund of postage costs). Royal Mail's Special Delivery services already include additional loss and consequential loss compensation options for customers to buy. For claims of lost mail compensation arrangements are unchanged and customers will receive up to GBP28, 100 times the cost of basic First Class postage on evidence of market value. Minimum compensation for stamped and metered mail and standard parcels was introduced from October 6 03 and is 12 times the price of a First Class stamp (GBP3.36). Customers requiring additional compensation cover have a range of Special Delivery service options with consequential loss compensation available up to GBP10,000. CONTACT: ROYAL MAIL 148 Old Street LONDON EC1V 9HQ Homepage: http://www.royalmail.com VOSS NET: Restructuring via Company Voluntary Arrangement Okayed ---------------------------------------------------------------- At the Extraordinary General Meeting held on December 30, 2003 all resolutions were passed. Accordingly every ordinary share of 1p is now to be re-issued as a new ordinary share of 0.01p. The reorganization took effect after the close of business on December 30, 2003 and trading in the new ordinary shares of 0.01p each commenced on December 31, 2003. The Company issued 165,000 ordinary shares of 1p each as a result of the exercise of warrants for an exercise consideration of GBP1,650. Following finalization of the Company Voluntary Arrangements for Voss Net plc, Voss Net (UK) Limited and Voss Net Training Limited, 27,415,670 ordinary shares of 1p each have been issued to satisfy the Voss Net group's obligations to creditors, and a further 1,000,000 ordinary shares of 1p each have been issued to satisfy a further creditor. In summary, the Company has issued 28,580,670 ordinary shares of 1p each thereby increasing the number of issued ordinary shares to 62,538,866. Application has been made for the 28,580,670 ordinary shares to be admitted to trading on AIM in their new denomination of 0.01p ordinary shares and dealings are expected to commence on January 6, 2004. WEMBLEY PLC: Bid Talks Still On Despite Adverse U.S. Ruling ----------------------------------------------------------- Troubled gaming club Wembley Plc said potential bid talks were unaffected by U.S. state regulators' recent decision to approve only four months of racing at its Lincoln Park site, the Financial Times reported Sunday. According to a Wembley representative, the ruling "should not have any impact on Wembley evaluating proposals which are being put to them by other operators." This was backed by the company, as it said it had chosen not to put out a stock exchange announcement because the latest U.S. ruling was not "material" and had "no impact in the slot operations in Rhode Island." There are worries, however, that Wembley would suffer as greyhound racing is normally all year round as opposed to the four months granted to the group. Approval is an essential part of the company's right to operate gambling slot machines that are the key to the group's revenue, the report said. Wembley plc stands to pay US$11 million -- US$500,000 for each of the 22 indictments issued by a Rhode Island district court -- in relation to bribery charges brought against it. It is noted that while dog racing in Rhode Island represents a small proportion of Wembley's overall turnover, it must hold the license to be able to operate the gambling machines that make the bulk of profits. ********* 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., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland 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 * * *