/raid1/www/Hosts/bankrupt/TCREUR_Public/040107.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, January 7, 2004, Vol. 5, No. 4


                            Headlines

F R A N C E

RHODIA SA: Senior Subordinated Debt Rating Lowered to Caa1


G E R M A N Y

COMMERZBANK AG: To Discontinue Employees Pension Scheme in 2005


I R E L A N D

ELWINBROOK LIMITED: Creditors Have Until April 12 to File Claims


I T A L Y

PARMALAT FINANZIARIA: Banespa Searches for Leads on Missing Fund
SNIA: Demerger of Profitable Unit Results in 57% Share Slide


L U X E M B O U R G

MILLICOM INTERNATIONAL: Retires 13 1/2% and 11% Senior Notes


N E T H E R L A N D S

GETRONICS N.V.: Seals Sale of Pluz to Specialist Computer
KLM ROYAL: E.U. Commission Reviews Proposed Air France Tie-up


P O L A N D

NETIA SA: Management Board Member to Resign February


S W I T Z E R L A N D

CLARIANT AG: Concludes Sale of Cellulose Ethers to Japanese Firm
WRC RENAND: Stake of Controlling Family Whittled Down


U N I T E D   K I N G D O M

ARIA EVENTS: Full-time Workers Cry Foul, Demand Pay for December
BALLAST PLC: DTI Junks Plea for Independent Probe into Collapse
BLACK SEA: High Court Sanctions Scheme of Arrangement
CORUS PLC: No Longer in 'Perilous State,' Says ABN Amro
ENERGIS PLC: Schedules Scheme Creditors Meeting January 27

EQUITABLE LIFE: Treasury Pledges to Release Penrose Report Soon
HIBERNIA FOODS: Jobs at Oakesway Dessert Factory Saved
HIBERNIA FOODS: Stockton-on-Tees, Bridlington Sites Sold
KWELM COMPANIES: Scheme Creditors' Meeting Set January 29
MARCONI CORPORATION: Sells U.S. Subsidiary for US$240 Million

ROYAL & SUNALLIANCE: Names George Culmer Chief Financial Officer
SKYEPHARMA PLC: Expects 2003 Revenues to Fall Below FY2002
SKYEPHARMA PLC: Fails to Seal 2003 Product Collaboration Deals
SKYEPHARMA PLC: To Shake up Research and Development Operations
STENMAR GROUP: Project Cost Overruns Lead to Receivership
TELEWEST COMMUNICATIONS: Nears Final Stage of Restructuring
WATERSTON & SONS: Receivers Offer Business for Sale


                            *********


===========
F R A N C E
===========


RHODIA SA: Senior Subordinated Debt Rating Lowered to Caa1
----------------------------------------------------------
Moody's Investors Service lowered the Senior Implied rating of
Rhodia S.A. from B1 to B2, and the senior unsecured and senior
subordinated debt ratings to B3 from B2 and Caa1 from B3,
respectively.  The outlook for the ratings remains negative.

Moody's said the action reflects "the deterioration in the
group's liquidity that could result from the US$250 million
private placement prepayment and significant related prepayment
penalties in addition to the reduction in size of the bank
facilities."  An early repayment of the facility could be
triggered as the private placement is subject to certain
financial covenants that would likely be breached in February.
It also reflects the conditionality of the newly agreed medium
term line of credit expiring March 2006.  Rhodia was able to
successfully adjust covenants and establish new line of credit
of EUR758 million maturing March 31, 2006. It further reflects
challenges regarding the success of the contemplated EUR300
million capital increase and the disposal program being
undertaken by Rhodia.

Moody's also considers the substantially higher cash costs
associated with the increased interest margin and fees paid to
the banks regarding the new medium term line of credit and the
covenant waiver acceptance for the action.  Lastly, Moody's
mentions the relatively high severity of loss expectations for
bondholders, particularly the subordinated noteholders, which
rank junior in the capital structure, as the reason for the
downgrade.


=============
G E R M A N Y
=============


COMMERZBANK AG: To Discontinue Employees Pension Scheme in 2005
---------------------------------------------------------------
Commerzbank AG, Germany's third-largest bank, is planning to
cancel the employee pension schemes for its 26,000 staff
beginning 2005 in an effort to save millions of euros a year at
a time of difficult economic conditions, the Financial Times
said.

According to the report, the bank is expected to tell employees
soon that entitlements to pension schemes can only be claimed
this year until January 2005.  No new contributions will be made
to existing members after the company scheme closes its doors to
new entrants, although it will continue to contribute to the
state scheme for its workers.  Commerzbank is the first German
bank to express plans to scrap the scheme, according to the
paper.

Frankfurt bankers say the move is a way of making the bank "more
attractive" to potential buyers as the German government pushes
for local mergers to ward off "internationally operating
raiders."  "Unpredictable" pension provisions are considered
discouraging factors for merger plans, they say.  Commerzbank
made a EUR2.3 billion (US$2.9 billion) writedown in November
that led to a net loss for the three months to September.


=============
I R E L A N D
=============


ELWINBROOK LIMITED: Creditors Have Until April 12 to File Claims
----------------------------------------------------------------
The Creditors of Elwinbrook Limited (In Liquidation) are
required on or before the 12th day of April 2004 to send their
names and addresses and particulars of their solicitors, if any,
to Mr. J.W.R. Jackson of KPMG, Chartered Accountants, 1 Stokes
Place, Dublin 2, the Official Liquidator of the said Company and
if so required by notice in writing from the Official
Liquidator, are to file such affidavits in proof of claims as
they may be advised and to attend at such time and place as
shall be specified in such notice or, in default thereof, they
will be excluded from any distribution made before such debts or
claims are proved.

Tuesday the 27th of April 2004 at 11 o'clock in the forenoon at
the Examiner's Office, 15-24 Phoenix Street, Smithfield, Dublin
7, has been appointed for hearing and adjudicating upon the said
debts and claims.

Brendan O'Sullivan
Assistant Examiner


=========
I T A L Y
=========


PARMALAT FINANZIARIA: Banespa Searches for Leads on Missing Fund
----------------------------------------------------------------
Santander Central Hispano, Spain's largest bank, is expected to
join the search for the more than EUR8 billion (US$10 billion)
fund missing from Parmalat's accounts.  According to the
Financial Times, Italian magistrates are seeking to question
Santander Central on the whereabouts of some US$250 million of
Parmalat funds deposited at one of the bank's subsidiaries in
the Cayman Islands.  Authorities, however, had not yet contacted
the bank, which until now has not been implicated in relation to
the missing amount.

Santander Central Hispano's Brazilian bank, Banespa, underwrite
equity issues for Parmalat in Brazil, among other transactions.
Parmalat Brazil had placed US$250 million with Santander Central
Hispano in the Cayman Islands following a US$500 million bond
issue, bankers said.  According to Santander Central Hispano,
the deposit was collateral for a loan to Parmalat Brazil.

Bankers believe Parmalat transferred the funds out of its
Santander account in the Cayman Islands in 2001, according to
the report.  To establish facts, Santander Central Hispano is
understood to be checking its electronic transfer records.
Santander Hispano did not specify how much it had lent to
Parmalat Brazil, but said it followed its "conservative risk
criteria" when it lent the money both to the Italian Parmalat
and its Brazilian unit.


SNIA: Demerger of Profitable Unit Results in 57% Share Slide
------------------------------------------------------------
Sorin, the medical technology unit of Snia, was demerged from
the loss-making Italian conglomerate last week.  Snia
distributed three shares in Sorin for every five Snia shares
held in Milan's first flotation of 2004, and cancelled three in
every five Snia shares.

The transaction, which was aimed at freeing up the value of
Sorin's profitable business, sent Snia's shares down 57% at the
start of the week.  The fall was greater than expected.  Snia's
shares were suspended after falling from EUR2.02 to EUR0.43
following the share cancellation.

Snia is involved in nylon and fine chemicals businesses.  It
also has a portfolio of real estate.  It is currently
restructuring the chemical and synthetic fiber activities to
survive an environment where demand is low, oil-based raw
material costs are high, and competition against cheap Asian
imports are strong.

Snia's effort to generate a positive return on equity saw the
sell-off of its agrochemicals, packaging film, energy and rayon
textile units earlier.


===================
L U X E M B O U R G
===================


MILLICOM INTERNATIONAL: Retires 13 1/2% and 11% Senior Notes
------------------------------------------------------------
Millicom International Cellular S.A. (Nasdaq: MICC) announced
Monday that, by the end of 2003, it had retired its remaining 13
1/2 Senior Subordinated Notes due 2006 and 11% Senior Notes due
2006.

The remaining US$137 million of the 13 1/2 Senior Subordinated
Notes due 2006 was repaid on December 29, 2003, following the
earlier repayment of US$395 million of the 11% Senior Notes due
2006 in the first half of December 2003.

An improved liquidity position and reduced leverage as a result
of the completion of the company's exchange offer and subsequent
issuance of 5% mandatory exchangeable bonds that will help
retire approximately US$167 million of 11% senior notes led
Moody's to upgrade its ratings on Millicom International
Cellular S.A.

CONTACT:  Marc Beuls, President and Chief Executive Officer
          Phone: +352 27 759 101

          Andrew Best
          Phone: +44 20 7321 5022
          Investor Relations
          Shared Value Ltd, London


=====================
N E T H E R L A N D S
=====================


GETRONICS N.V.: Seals Sale of Pluz to Specialist Computer
---------------------------------------------------------
Referring to a press release dated October 16, 2003, Getronics
N.V. [rated by Moody's B2 senior implied; Caa1 senior
subordinated bond debts], and Hagemeyer N.V. announced Monday
they have finalized the sale of their value add business-to-
business hardware distributor, Pluz, to Specialist Computer
Holdings PLC.

Pluz was formed in 2001 after merging Getronics' distribution
subsidiary Datelcom with Hagemeyer's Codis activities.  Pluz is
one of the key players in the Netherlands in hardware
distribution activities to Value Added Resellers and System
Integrators.

Fortis Bank has acted as financial advisor to Getronics and
Hagemeyer in respect of the divestment of Pluz and Greenberg
Traurig and Stibbe as legal advisors to Getronics and Hagemeyer,
respectively.

About Getronics

With 23,000 employees in over 30 countries and forecast revenues
of circa EU 2.7 billion in 2003, Getronics is one of the world's
leading providers of vendor independent Information and
Communication Technology (ICT) solutions and services.
Getronics today combines the capabilities of the original Dutch
company with those of Wang Global, acquired in 1999, and of the
systems and services division of Olivetti.  Getronics is ranked
second worldwide in network and desktop outsourcing and fourth
worldwide in network consulting and integration (Source: IDC
2002-2003).

Getronics designs, integrates and manages ICT infrastructures
and business solutions for many of the world's largest global
and local companies and organizations, helping them maximize the
value of their information technology investments.  Getronics
headquarters are in Amsterdam, with regional offices in Boston
and Singapore.  Getronics' shares are traded on Euronext
Amsterdam. For further information, visit
http://www.getronics.com


KLM ROYAL: E.U. Commission Reviews Proposed Air France Tie-up
-------------------------------------------------------------
The European Commission has launched a review for possible
breach of antitrust and competition rules on the proposed EUR3.4
billion merger between Air France Group and KLM Royal Dutch
Airlines, according to Reuters.

The probe could take months, with the initial review extended by
weeks if the authorities discover competition problems.
Interested parties have also been asked to submit any comments
on the KLM-Air France tie-up within 10 days starting December
30.

KLM spokesman Bart Koster said the airline has filed all of the
possible documentation needed and is now awaiting for any more
requests from the commission.  He added: "We have filed
documentation with both the U.S. Department of Justice and the
Department of Transportation."

The transaction roused demand for competition inquiry as it
stands to create the world's biggest airline in terms of
revenue.  The U.S. authorities are also conducting an
investigation and are at a "similar stage [of the process] as
with the European regulators."

KLM Royal started negotiating with Air France regarding the tie-
up and a possible entry into the latter's SkyTeam alliance late
August 2003.  The Amsterdam-based carrier reported a EUR416
million ($470 million) loss for the year ended March.


===========
P O L A N D
===========


NETIA SA: Management Board Member to Resign February
----------------------------------------------------
Netia S.A. (WSE:NET), Poland's largest alternative provider of
fixed-line telecommunications services, has been informed by Ms.
Elizabeth McElroy, a member of Netia's Management Board, about
her plans to leave the Company at the end of February 2004.
Until that time Ms. Elizabeth McElroy will continue to hold her
current position of Chief Commercial Officer.

                              *****

Netia Holdings announced unaudited consolidated financial
results for the first quarter 2003 with a net loss of PLN80.3
million (US$19.8 million), a year-on-year decrease of 67%
achieved due to improved operating results and lower financial
expense following the financial restructuring.

CONTACT:  NETIA SA
          Anna Kuchnio, Investor Relations
          Phone: +48-22-330-2061


=====================
S W I T Z E R L A N D
=====================


CLARIANT AG: Concludes Sale of Cellulose Ethers to Japanese Firm
----------------------------------------------------------------
Clariant announced Monday that the sale of the Cellulose Ethers
business unit to the Japanese company Shin-Etsu Chemical Co.
Ltd. was completed as planned at the end of last year.  The
relevant competition authorities have given the green light for
the transaction.  The sale of the business unit for a price of
EUR241 million (or about CHF370 million) includes the production
facilities in Wiesbaden, Germany and the Tylose brand.

The Cellulose Ethers business unit was part of Clariant's
Functional Chemicals division and employs about 500 people.
Cellulose Ethers generated sales of EUR187 million in fiscal
2002.

The completion of the transaction on schedule marks a first
important step in the implementation of Clariant's divestment
program announced at the semi-annual media conference on August
5, 2003.


WRC RENAND: Stake of Controlling Family Whittled Down
-----------------------------------------------------
WRC Renand S.A. sold 35,000 ordinary shares last month as part
of the liquidation of the Swiss company.  According to AFX,
10,000 ordinary shares in Renand were sold for 38 pence apiece
on December 4.  A further 25,000 shares were disposed of at 35.5
pence each on December 5.

The transactions reduced Director JMBT Wheatley's 46% holdings
in Renand to 19.93%, or 6,265,000 shares.  Director DMDA
Wheatley, who held 20% of Renand, now holds 2,139,760 shares,
representing 6.47 %.  JMBT Wheatley and DMDA Wheatley together
with GFMT Wheatley hold 255,000 shares in a family trust.


===========================
U N I T E D   K I N G D O M
===========================


ARIA EVENTS: Full-time Workers Cry Foul, Demand Pay for December
----------------------------------------------------------------
The backroom employees of Aria Events Management & Aria Ice
Limited are planning to pursue their claims against the company
for unpaid wages when it abruptly closed last month,
IcTeesside.co.uk said.

The six full-time office staff of the company, which manages the
temporary ice rinks at Middlesbrough, Darlington and Stockton,
were told they no longer have jobs on the afternoon of Christmas
day as the firm had stopped trading.  The workers said, prior to
the notice, all part-time ice rink staff were paid, but none of
the office staff received salary for working in December.  They
said they were due to be paid December 19, but were told to
receive the money next week only to be sent home at 1 p.m. on
Christmas.  They were owed GBP800 each.


BALLAST PLC: DTI Junks Plea for Independent Probe into Collapse
---------------------------------------------------------------
The Department of Trade and Industry dismissed calls for a
stand-alone inquiry into the collapse of building group Ballast,
according to The Herald.

Ballast was put into financial uncertainty after its Dutch
parent, Ballast Nedam, pulled financial support for the British
PFI operator.  The failure left a GBP43 million schools PPP
project without a contractor, and several sub-contractors at a
loss for millions of pounds.

The sub-contractors asked for an urgent inquiry after reports
emerged that the U.K. arm had been seeking insolvency advice two
months before its parent filed for administration in October.
But the Department of Trade and Industry said it is content to
await the outcome of the report of Deloitte & Touche, the
administrator, before deciding if further investigation should
be launched.  It also said it had no jurisdiction over the
parent company.

Kenny Walters, of Rutherglen builder VB Contractors, has
indicated his group is willing to pursue the matter with the
East Lothian Council and Innovate East Lothian, the consortium
contracted to deliver the project.  According to him, the
consortium should release the most recent monthly drawdown of
GBP2.9 million, which he claimed was withheld.  It must be used
to pay some of the estimated GBP6.8 million in debt, he said.

Mr. Walters added: "We are looking at some form of legal
dispute. At the end of the day, the client is a public sector
body and the question is whether they have failed in their duty
of care."


BLACK SEA: High Court Sanctions Scheme of Arrangement
-----------------------------------------------------
Notice is hereby given that by an Order dated December 8, 2003
made in the High Court of Justice in England and Wales in the
matter of Black Sea and Baltic General Insurance Company Limited
a scheme of arrangement pursuant to section 425 of the Companies
Act 1985 between the Company and its Scheme Creditors (as
defined in the Scheme), which was at meetings held on December
2, 2003 in London, voted on and approved by the requisite
majorities of each class of Scheme Creditors, was sanctioned.
An office copy of the court Order sanctioning the Scheme was
delivered to the Registrar of Companies for registration on
December 23, 2003.  The Effective Date of the Scheme is
therefore December 23, 2003.

Dan Schwarzmann and Nigel Rackham, partner and director
respectively in the United Kingdom firm of
PricewaterhouseCoopers LLP, are the Joint Scheme Administrators
responsible for implementing the Scheme.  Anybody believing to
be a Scheme Creditor who has not received notice of the
Effective Date of the Scheme, should contact the Joint Scheme
Administrators at the address below.

Claim Forms containing the Company's estimates of Scheme Claims
have been sent to all known Scheme Creditors.  Blank Claim Forms
are also available upon request to the Scheme Administrators at
the address below.  Scheme Creditors have until the Bar Date,
which is March 1, 2004, to submit and confirm details of their
claims by returning the Claim Forms with, in the case of Claim
forms which have been amended, appropriate supporting
documentation.  Anyone believing to be a Scheme Creditor who
does not return their Claim Form before the Bar Date will not,
although bound by the Scheme, participate in Scheme
distributions.  The Joint Scheme Administrators are not required
to take account of any Claim Forms, or to admit claims, of which
they receive notification after the Bar Date.

It is requested that Claim Forms are returned or submitted to
the Joint Scheme Administrators, Black Sea and Baltic General
Insurance Company Limited, c/o PRO Insurance Solutions Limited,
One Great TowerStreet, London EC3R 5AH, United Kingdom, fax
number +44 (0) 20 7623 3318, telephone number +44 (0) 20 7283
2918, e-mail pro_bsbhelpline@pro-ltd.co.uk

All other enquiries should be addressed to the Joint Scheme
Administrators at the above address.


CORUS PLC: No Longer in 'Perilous State,' Says ABN Amro
-------------------------------------------------------
Dutch bank ABN Amro sees troubled steel maker Corus to be in
"better shape than it has been for the past few years,"
according to The Scotsman.  The remark sent shares in the Anglo-
Dutch company up 8%.

The bank added: "It's not in the same perilous state as it was a
year ago.  Selling assets is still a possibility, but its not
needed so desperately as in the past."

Corus was forced to shed 10,000 jobs to gain better footing
after sustaining severe losses.  It also placed shares, raising
GBP307 million in the process.

ABN revised its 2004 and 2005 full-year loss forecasts for the
company by GBP30 million each year, to GBP146 million and GBP79

million respectively.


ENERGIS PLC: Schedules Scheme Creditors Meeting January 27
----------------------------------------------------------
Notice is hereby given that, by an order dated December 8, 2003
made in the High Court of Justice in the matter of Energis plc
(in administration), a meeting was ordered to be summoned of
Scheme Creditors (as defined in the scheme of arrangement
hereinafter mentioned) of the Company for the purpose of
considering and, if thought fit, agreeing to a scheme of
arrangement proposed to be made between the Company and its'
Scheme Creditors pursuant to section 425 of the Companies Act
1985.

The meeting will be held on January 27, 2004 at the Barbican
Centre, Silk Street, London EC2Y SDS, United Kingdom at 12 noon.

The chairman of the meeting will address Scheme Creditors
generally on the Scheme and on issues relevant to voting at the
commencement of the meeting.

Scheme Creditors who do not hold interests in the Notes may
attend and vote at the meeting either in person or by proxy and
are, in any event, requested to complete a form of proxy and
return it to the Administrators of the Company by post, by air
mail or by hand delivery at:

      Ernst & Young LLP,
      1 More London Place, London
      SEt 2AF, United Kingdom

      or by fax to +44 (0) 20 7951 9998,

in each case marked for the attention of Margaret Elizabeth
Mills and Michael David Rollings, before 5 p.m. on January 23,
2004, although if not so returned, it may be handed in between
10 a.m. and 12 noon on the day of the meeting at the place fixed
for it.

The Scheme Creditors with respect to the Notes issued by the
Company for the purposes of voting at the meeting are the
Noteholders.  Any Noteholder who wishes to attend and vote at
the meeting, either in person or by proxy, should ensure that an
Account Holder Letter in respect of the Notes to which he is
entitled is delivered on his behalf and that the voting section
is completed appropriately and, in any event, in accordance with
the instructions printed on it.

A duly completed Account Holder Letter must be delivered to
Bondholder Communications Group Inc online at
http://www.bondcom.com/energisor by prepaid first class post,
air mall or hand delivery to

     Bondholder Communications Group Inc.
     Prince Rupert House, 64 Queen Street
     3rd Floor, London EC4R 1AD, United Kingdom

     or by fax to +44 (0) 20 7067 9239,

in each case marked for the attention of Elaine Peterson, before
5 p.m. on January 23, 2004, although if not so returned, it may
be handed in between 10 a.m. and 12 noon on the day of the
Scheme Meeting at the place fixed for it.

In addition, the Notes identified in the Account Holder Letter
must be "blocked" with the clearing system to which they are
credited on or before 5 p.m. (local time in the place of the
clearing system) on the business day prior to the date on which
the Account Holder Letter is delivered to Bondholder
Communications Group Inc. or, if handed in on the day of the
meeting, with effect from or before 5 p.m. (local time in the
place of the clearing system) on the business day immediately
prior to the day fixed for the meeting.  The Account Holder
Letter provides information about the "blocking" of Notes.

Each Scheme Creditor or his proxy will be required to register
his attendance at the meeting prior to Its commencement.
Registration will commence at 10am.

The Scheme is proposed between the Company and its Scheme
Creditors (being creditors in respect of any claim arising out
of a liability to which the Company is subject at the date of
the Scheme or to which it may become subject thereafter by
reason of an obligation incurred before that date, except any
claim which would have been preferential in a liquidation of the
Company or a claim in respect of the costs or expenses of the
Scheme both of which will be payable in full).

The proposed Scheme and a copy of the statement required
pursuant to Section 426 of the Companies Act 1985, together with
a form of proxy for use at the meeting by Scheme Creditors with
Scheme Claims arising other than with respect to the Notes or an
Account Holder Letter to enable Noteholders to vote at the
meeting as a Scheme Creditor as appropriate, and a registration
form will be circulated to known Scheme Creditors (including
Noteholders) as well as certain other persons with interests in
Notes.  Copies of these documents, as well as forms of proxy,
Account Holder Letters and registration forms, may be obtained
shortly by attending at, or on written application to,

     Bondholder Communications Group Inc.
     Prince Rupert House, 64 Queen Street, 3rd Floor
     London EC4R 1AD. United Kingdom
     (attention: Elaine Peterson)

     or

     Ernst & Young LLP
     1 More London Place, London SEt 2AF
     United Kingdom
    (attention: Margaret Mills and Michael Rollings).

By the order, the High Court of Justice has appointed Margaret
Elizabeth Mills, one of the Company's joint administrators or,
failing her, the other joint administrator, being Michael David
Rollings to act as chairman of the meetings and has directed the
chairman to report the results of the meetings to the Court.

The Scheme will be subject to the subsequent sanction of the
High Court of Justice in England.  Terms used in this notice,
which are not defined, shall have the meaning given to them in
the Scheme.  Unless provided otherwise, times stated in this
notice are London time.

CONTACT:  Clifford Chance Limited Liability Partnership
          10 Upper Bank Street
          London E14 5JJ
          United Kingdom
          Ref: JGM/M4904/00025/PLH

          Solicitors to Margaret Elizabeth Mills
          Michael David Rollings, Administrators of the Company


EQUITABLE LIFE: Treasury Pledges to Release Penrose Report Soon
---------------------------------------------------------------
Equitable Life's 385,000 policyholders may not immediately
receive Lord Penrose's report on an inquiry into the society's
near-collapse, but they are glad they may be able to read it
unabridged.

The Guardian cited financial secretary Ruth Kelly making it
clear that, subject to the discussions of the department, its
legal advisers and a "limited number" of people at the Financial
Services Authority regarding the contents of the report, "it is
the Treasury's intention to publish the report in full as soon
as possible."

The Penrose report commissioned by the Treasury in August 2001
was delivered on December 23.  Policyholders are likely to get a
copy of the report later this month.

This development contrasts with what Ms. Kelly said two months
ago that parts of the report, which the Treasury had yet to see,
may be subject to "legal confidentiality restrictions."

Paul Braithwaite, the general secretary of Equitable Members'
Action Group commented on the recent news: "I believe that
Penrose will find there was material regulatory failure, and
this should lead to government compensation for all of those who
lost out."


HIBERNIA FOODS: Jobs at Oakesway Dessert Factory Saved
------------------------------------------------------
Freshbake Foods has completed the takeover of Hibernia Foods'
Hartlepool-based Oakesway dessert factory, according to the
Evening Gazette.

Operating from Salford, Freshbake Foods bought the plant for an
undisclosed sum last week, saving 390 jobs at the site.  It
began running the site Monday, and is looking forward to
restructuring the operation.  It expects to save most of the
jobs in the process, the report said.

Meanwhile, exclusive talks are continuing between prospective
buyers and administrators KPMG regarding the future of the
remaining 950 jobs at Hibernia Foods' factories in Stockton and
Bridlington.  Hibernia Foods' business is currently being broken
up after efforts to sell the entire company as a going concern
failed.  The Dublin-based company went into administration last
October saddled with GBP17.5 million in debts.


HIBERNIA FOODS: Stockton-on-Tees, Bridlington Sites Sold
--------------------------------------------------------
The joint administrative receivers of Hibernia Foods Limited
announced the sale, as a going concern, of the frozen desserts
business based at Stockton-on-Tees.  The sale was concluded on
January 2, 2004 to Country Style Foods Limited, a Leeds-based
manufacturer of frozen foods.

However, following extensive negotiations with a number of
interested parties, the administrative receivers have been
unable to conclude a sale of the Bridlington factory, which
predominantly manufactures frozen desserts under the Sara Lee
brand.  Consequently, the workforce of 500 who have been laid
off since before Christmas, have been made redundant.

Myles Halley, joint administrative receiver said:

"The sale of the Hibernia business at Stockton is good news for
the 400 employees.

"But, despite extensive efforts and negotiations with a number
of interested parties over the last two months, we are unable to
conclude a sale of the Bridlington business, and we have taken
the difficult decision to close the factory down and make the
employees redundant."

In addition, the administrative receivers have also had to make
a further 35 employees redundant at the group's York head
office.

Since their appointment on October 24, 2003, the joint
administrative receivers have sold Hibernia's Chilled Foods
(Birmingham) and Ready Meals (Brenda Road, Hartlepool and
Bristol) businesses on December 15, 2003 and the frozen desserts
business based in Oakesway, Hartlepool was sold on December 24,
2003.  In total, approximately 1200 jobs have been saved as a
result of these going concern sales.

                              *****

The six subsidiaries of Hibernia Foods Holdings (U.K.) Limited
include Hibernia Brands Limited, Majestic Food Group Limited,
Hibernia Holdings Limited, Hibernia Chilled Foods Limited,
Hibernia Foods Limited, Hibernia Foods Bakeries Limited.

CONTACT:  KPMG
          Corporate Communications
          Katy Broomhead
          Phone: 0161 246 4623/07775 708917
          Email: katy.broomhead@kpmg.co.uk

          KPMG Press Office
          Phone: 0207 694 8773


KWELM COMPANIES: Scheme Creditors' Meeting Set January 29
---------------------------------------------------------
KINGSCROFT INSURANCE COMPANY LIMITED (formerly Kraft Insurance
Company Limited, Dart and Kraft Insurance Company Limited and
Dart Insurance Company Limited)

WALBROOK INSURANCE COMPANY LIMITED

EL PASO INSURANCE COMPANY LIMITED

LIME STREET INSURANCE COMPANY LIMITED (formerly Louisville
Insurance Company Limited)

MUTUAL REINSURANCE COMPANY LIMITED

(all the above companies being subject to a scheme of
arrangement, which became effective on December 15, 1993, with
their respective Scheme Creditors pursuant to Section 425 of the
Companies Act 1985 of Great Britain and, in addition, in respect
of Mutual Reinsurance Company Limited only, Section 99 of the
Companies Act 1981 of Bermuda)

Notice is hereby given that, by an Order dated November 28, 2003
made in the High Court of Justice of England and Wakes in the
matter of Kingscroft Insurance Company Limited, Walbrook
Insurance Company Limited, El Paso Insurance company Limited,
Lime Street Insurance Company and Mutual Reinsurance Company
Limited and in the matter of the Companies Act 1985 of Great
Britain, and by an Order dated the 2nd day of December 2003 made
in the Supreme Court of Bermuda in the matter of Mutual
Reinsurance Company Limited and in the matter of the Companies
Act 1981 of Bermuda, separate meetings were ordered to he
summoned of the Scheme Creditors (as defined in the Amending
Scheme hereinafter mentioned) of each of the KWELM Companies for
the purpose of considering and, if thought appropriate approving
(with or without modification) an Amending Scheme of Arrangement
proposed to be made between the KWELM Companies and their
respective Scheme Creditors pursuant to section 425 of the
Companies Act 1985 of Great Britain and, in addition, in
relation to Mutual Re only, section 99 of the Companies Act 1981
of Bermuda.  The purpose of the Amending Scheme is to amend
certain provisions of a Scheme of Arrangement dated September 8,
1993 that took effect from December 15, 1993 between the KWELM
Companies and their respective Scheme Creditors.

The Scheme Creditors referred to herein are:

(a) Protected Scheme Creditors (being Scheme Creditors whose
claims are eligible for protection under the applicable
provisions of the Policyholders Protection Act 1975 by the
Financial Services Compensation Scheme Limited); and

(b) General Scheme Creditors (being any other Scheme Creditors),

Such Meetings will be held at The Chartered Insurance Institute,
20 Aldermanbury, London, FC2V 7HY, United Kingdom on the 29th
day of January 2004 at the times mentioned below, namely:

(1) the chairman of the Meetings will address Scheme Creditors
generally on the Amending Scheme and on issues relevant to
voting at the commencement of the first Meeting at 2:00 p.m.

(2) in the case of General Scheme Creditors:

(a) the Meeting of Kingscroft Insurance Company limited at 2:00
p.m.;

(b) the Meeting of Walbrook Insurance Company Limited at 2:05
p.m. (or as soon thereafter as the preceding Meeting shall have
concluded or adjourned);

(c) the Meeting of El Paso Insurance Company Limited at 2:10
p.m. (or as soon thereafter as the preceding Meeting shall have
concluded or adjourned);

(d) the Meeting of Mutual Reinsurance Company Limited at 2:15
p.m. (or as soon thereafter as the preceding Meeting shall have
concluded or adjourned);

(e) the Meeting of Mutual Reinsurance Company Limited at 2:20
p.m., (or as soon thereafter as the preceding Meeting shall have
concluded or adjourned); and

(3) in the case of the Protected Scheme Creditors:

(a) the Meeting of Kingscroft Insurance Company Limited at 2:25
p.m. (or as soon thereafter as the preceding Meeting shall have
concluded or adjourned);

(b) the Meeting of Walbrook Insurance Company Limited at 2:30
p.m. (or as soon thereafter as the preceding Meeting shall have
concluded or adjourned);

(c) the Meeting of El Paso Insurance Company Limited at 2:35
p.m. (or as soon thereafter as the preceding Meeting shall have
concluded or adjourned);

(d) the meeting of Lime Street Insurance Company Limited at 2:40
p.m. (or as soon thereafter as the preceding Meeting shall have
concluded or adjourned); and

(e) the Meeting of Mutual Reinsurance Company Limited at 2:45
p.m. (or as soon thereafter as the preceding Meeting shall have
concluded or adjourned);

A copy of the said Amending Scheme, a copy of the Explanatory
Statement, prepared in connection with the Amending Scheme under
section 426 of the Companies Act and, in addition, in relation
to Mutual. Re, section 100 of the Bermudan Companies Act and the
Form of Proxy (including Claims Table) for use at the Meetings
can be downloaded; from http://www.kwelm.comAlternatively,
copies of those documents can be obtained from the Creditor Help
Desk by telephone on +44 (0) 20 7645 4991, fax +44 (0) 870 600
7588 or entail creditor.helpdes@kwelm.com or by post from the
Scheme Administrators:

CJ HUGHES and IDB BOND Scheme Administrators of the KWELM
Companies John Stow House,18 Bevis Marks, London, EC3A 7JB,
United Kingdom

Scheme Creditors may attend and vote in person (or, if a
corporation, by a duly authorized representative) at such of the
Meetings as they are entitled to attend.  Alternatively they may
appoint another person, whether a scheme Creditor or not, as
their proxy to attend and vote in their place.

In any event, whether or not Scheme Creditors are intending to
be present at any Meeting in person, they are requested to
complete the Form of Proxy in accordance with the instructions
contained therein and with pages 4, 5, 21, 22 46 47 and 81 to 85
of the Scheme Document and return it to, the Scheme
Administrators of the KWELM Companies at the address indicated
above by 6:00 p.m., (Greenwich Mean Time) on January 28, 2004.
If not so returned, Forms of proxy will be accepted at any time
prior to the commencement of the Meetings (and may be handed in
no earlier than 12.30 p.m. on the day of the Meetings and at the
place fixed for them).

The chairman of the Meetings will accept faxed Forms of proxy
received before 6:00 p.m. (Greenwich Mean Time) on January 28,
2004 on +44 (0) 870 600 7587, if legible, subject to receipt of
the original within 7 days of the Meetings.

Each scheme Creditor or his proxy will be required to register
his attendance as he is entitled to attend to its commencement.
Registration will commence at 12.30 p.m. on the day of the
Meetings.

The Amending Scheme is proposed between the KWELM Companies and
their respective Scheme Creditors (being creditors in respect of
any claim arising out of a liability to which the KWELM
Companies were subject at September 8 1993 (the date of the
Original Scheme) or to which they became subject thereafter, by
reason of an obligation incurred before that date) but excepting
any claim which would have been preferential in a liquidation of
the KWELM Companies or a claim m respect to the costs of or
expenses of the original Scheme or Amending Scheme which will be
payable in full.

By the said Orders, the courts have appointed Christopher John
Hughes or, failing him, Ian Douglas Barker Bond or, failing him
Christopher Glenn Reynolds to act as chairman of the Meetings
and has directed the chairman to report the results thereof to
the respective courts.

The said Amending Scheme will be subject to the subsequent
sanction of the respective courts.

DATED the 5th day of December 2003

Cadwalader, Wickersham & Taft LLP, 265 Strand, London WC2R 1 BH,
United Kingdom

Appleby Spurting & Kempe, Canon's Court, 22 Victoria Street,
Hamilton HM 12, Bermuda

Solicitors to IDB Bond and CJ Hughes, Scheme Administrators of
the Scheme Companies


MARCONI CORPORATION: Sells U.S. Subsidiary for US$240 Million
-------------------------------------------------------------
Advanced Fiber Communications (R), Inc. [AFC (R)] (Nasdaq: AFCI)
announced the signing of a definitive agreement pursuant to
which Advanced Fiber Communications will acquire North American
Access, a business unit of Marconi Communications, Inc., a
subsidiary of Marconi Corporation plc (London: MONI and Nasdaq:
MRCIY).  The proposed transaction supports Advanced Fiber
Communications' business strategy to expand its optical access
portfolio, and enhance its ability to serve the demands and
requirements of large telecommunications carriers.

Under the terms of the agreement, Advanced Fiber Communications'
subsidiary will acquire North American Access for US$240 million
in cash and will purchase the assets of North American Access'
business.  The transaction encompasses North American Access'
Bedford, Texas facility and its employees.  Completion of the
transaction, which is subject to regulatory review and other
customary closing conditions, is expected to occur in the first
quarter of 2004.

"This acquisition brings together two companies with long
histories of success within the highly competitive access
networking market," said John Schofield, chairman, president and
CEO at Advanced Fiber Communications.  "Collectively, Advanced
Fiber Communications and North American Access possess a
significant deployed base of field-proven broadband access
solutions.  We view the product lines from both companies to be
complementary and intend to continue and enhance both to best
serve a broad customer base."

Commenting on the transaction, Mike Parton, chief executive of
Marconi Corporation plc, said: "We are delighted with this
transaction, which is in line with our previously stated
strategy to sell our North American Access business.  The
transaction will provide business continuity to the employees
and customers of our North American Access activity.  The
purchase price reflects the business' strong technological
heritage, solid customer base and significant operational
performance improvements achieved over the last 12 months.  The
cash proceeds will enable us to continue to reduce group debt
and the associated interest payments."

The addition of North American Access' product portfolio
enhances Advanced Fiber Communications' ability to deliver a
more robust suite of fiber-based access network solutions.
North American Access is an established provider of fiber-access
solutions to regional Bell operating companies and large North
American incumbent local exchange carriers.  The business
possesses the most widely deployed fiber-centric architectures
in North America, with over four million lines of capacity and
over one million deployed lines.

"Over the past year, North American Access' leadership team
successfully streamlined its business and demonstrated the
ability to regain and sustain profitability," added Mr.
Schofield.  "Based on the current profile of the business, we
expect this acquisition to be accretive to Advanced Fiber
Communications' earnings and cash flow in 2004, excluding
acquisition-related charges."

Citigroup Global Markets acted as exclusive financial adviser to
Advanced Fiber Communications, with respect to this transaction.


ROYAL & SUNALLIANCE: Names George Culmer Chief Financial Officer
----------------------------------------------------------------
Royal & Sun Alliance Insurance Group plc appointed George Culmer
as Chief Financial Officer, subject to regulatory approval.  He
will also become a main board director of Royal & Sun Alliance
Insurance Group plc.

Mr. Culmer, 41, is currently Head of Capital Management at
Zurich Financial Services, based in Zurich.  He was previously
Chief Financial Officer at Zurich's U.K. operations.  He has
worked at Zurich since 2000 and prior to that was at Prudential
from 1991.  He qualified as a Chartered Accountant with Coopers
& Lybrand in 1988.

Andy Haste, Group Chief Executive of Royal & SunAlliance, said:
"We are delighted that George will be joining the team.  George
has extensive experience in the general insurance industry and
of major change management programs.  His successful track
record and proven ability to take the tough decisions that bring
about change mean that he is ideally suited to join Royal &
SunAlliance."

Mr. Culmer was appointed Head of Capital Management at Zurich
Financial Services in 2003.  He served as Chief Financial
Officer of UKISA between 2002 and 2003 and as Chief Financial
Officer of Zurich's U.K. non-life business between 2000 and
2002.

At Prudential, Mr. Culmer was Group Financial Controller between
1997 and 2000, Head of Investor Relations between 1995 and 1998
and worked in analysis and strategy between 1991 and 1995.

He worked at Coopers & Lybrand in London and Auckland, New
Zealand between 1985 and 1991.  He was educated at Downing
College, Cambridge and is married with three sons.  His salary
will be GBP380,000 and will be employed on a standard 12-month
contract.  He will receive options equivalent to his first
year's salary on arrival.


SKYEPHARMA PLC: Expects 2003 Revenues to Fall Below FY2002
----------------------------------------------------------
SkyePharma PLC (Nasdaq: SKYE; LSE: SKP) said in its Trading
Update for the year ending December 31, 2003 that as a result of
delays in concluding a number of key deals in 2003, revenues for
the year will be substantially below the GBP85 million to GBP100
million range indicated at the time of the Interim Results in
September and below the GBP70 million achieved in 2002.

Milestone payments remain a major source of our revenues, and
this shortfall primarily arises because several key deals that
we had expected to conclude in 2003 are still in negotiation,
with finalization now expected in early 2004.  With revenues
below our budgeted revenue target, coupled with greater than
expected research and development costs (arising from delays to
completion of agreements involving the transfer of costs to the
partner), the Company now expects to report a loss for the
second half of 2003 albeit less than the loss we reported for
the first half.

A number of key deals, potentially involving total milestone
payments of up to US$200 million and double-digit royalty
income, remain in advanced stage negotiation with multiple
potential partners.  We remain confident that these agreements
can be concluded on satisfactory or better terms in the current
year.  This would have a correspondingly positive impact on the
profit already budgeted for 2004 (which assumed these agreements
were signed in 2003).

The company expects to have cash balances of approximately GBP20
million at December 31, 2003, marginally lower than as at June
30, 2003, with debt levels marginally higher than as at June 30,
2003.  However cash should increase substantially in 2004 as the
above deals are concluded.


SKYEPHARMA PLC: Fails to Seal 2003 Product Collaboration Deals
--------------------------------------------------------------
SkyePharma PLC (Nasdaq: SKYE; LSE: SKP) said in its Trading
Update for the year ending December 31, 2003 that during the
second half of 2003, the company signed several new product
collaboration deals.  Announced is a further technology license
deal in the pulmonary area that was signed with GlaxoSmithKline
at the end of 2003.  However, discussions to finalize the major
deals that we had expected to be concluded by December 31 remain
ongoing.  A signed term sheet is in place for one transaction,
which we would anticipate closing within the next few weeks.

In addition one of our pipeline products, due to be filed for
approval with the FDA in March, is currently under advanced
review by several potential licensees.  Our largest licensing
opportunity is a package of products in the pulmonary field, for
which we are also in advanced discussions with a number of
parties.  A major clinical study published in November suggests
a substantial increase in the potential commercial value of the
bronchodilator formoterol, both alone and in combination with an
inhaled steroid.  Our own combination with the steroid
fluticasone is making very satisfactory progress in clinical
development, with a Phase I trial now completed.

We believe that these factors have significantly raised the
value of our inhaled product range and support our stance that
the Company should refrain from entering any collaboration that
undervalues this part of our product pipeline.  The Company is
so convinced of the potential value of this particular product
opportunity that we have already rejected terms including
milestones of up to US$90 million and double-digit royalty
returns.  We remain confident that we will be able to finalize a
deal with an appropriate partner in the first quarter of 2004.

While every effort was made to bring these deals to completion
on appropriate terms by the 2003 year-end, the Company strongly
believes that it is in shareholders' best interests to conclude
the best deal possible for these critical products.

Unfortunately the time required for due diligence and the final
stages of negotiations does not always accommodate the
constraints imposed by a year-end date.  Indeed, this
restriction has proved a significant impediment to obtaining the
deal terms we feel that our products warrant.  We remain
confident that this is only a delay and expect to conclude these
agreements in early 2004.


SKYEPHARMA PLC: To Shake up Research and Development Operations
---------------------------------------------------------------
Outlook for 2004

Turning to the current year, we see the outlook as very positive
for Skyepharma.  Revenues and cash will be improved by the
finalization of the deals referred to above that are currently
under discussion, augmented by anticipated milestone payments
from deals agreed in prior years.  As important, we expect a
further significant increase in our royalty income, which is
becoming an increasingly dominant factor in our revenues and,
importantly, also in our profits.  We had already budgeted a
profit for 2004 (assuming the agreements still in negotiation
were signed in 2003) and deferral of those agreements to the
current year would therefore have a correspondingly positive
impact.

With the completion of the development phase of our growth, we
are further reorganizing our R&D operations and some other
business functions in order to align the development base with
our projected future R&D activities.  Regrettably this will mean
some redundancies but we expect to emerge from this
reorganization in a leaner and fitter form.  This will involve a
one-off cash cost of approximately GBP3.5 million and some
associated non-cash asset write-offs.  These will be taken as
exceptional charges in both 2003 and 2004 as appropriate.
Thereafter shareholders should expect to see growth in operating
profits more closely aligned with the future growth in royalty
income that we expect, generated by products such as
DepoMorphineTM.

Commenting on the Trading Update, Chief Executive Michael Ashton
said: "We are disappointed that we have not been able to meet
the ambitious target we set ourselves in April of revenue growth
in excess of 40%.  On the positive side, royalty income should
more than triple for the full year after increasing fourfold in
2002, fulfilling our expectations.  With our main royalty-
earning products Paxil(R) CR and Xatral(R) OD/UroXatral(R)
likely to be joined in 2004 by Foradil(R) CertiHaler and
DepoMorphineTM, we expect this gratifying trend to continue in
the current year.  We cannot stress sufficiently that rising
income from royalties is the key to future sustainable profit
growth for SkyePharma.  At our present stage of development,
revenues and profitability are still largely dependent on the
level and timing of milestone payments, which by their nature
are very difficult to predict.  While we are striving to become
consistently profitable, it would clearly not be in
shareholders' best interests to enter into new agreements with
milestone payments that would produce current profitability if
those upfront payments did not reflect the value of our
investment or came at the expense of future royalty streams.

"With our increasing royalty share, the deals currently under
negotiation and an improved cost base, I am excited by the
prospects for 2004.

"I can also report that the Company has been in discussion with
our partner GlaxoSmithKline over the royalty rate we receive on
sales of Paxil(R)? CR. Legal advice received by SkyePharma leads
us to believe that we are entitled to a substantial increase in
the royalty rate from the date of entry of generic paroxetine in
the U.S. market.  If we are unable to reach agreement on this
issue, there is an arbitration procedure in place."

The Company intends to publish its full-year results for 2003 at
the end of March.

SkyePharma PLC develops pharmaceutical products benefiting from
world-leading drug delivery technologies that provide easier-to-
use and more effective drug formulations.  There are now nine
approved products incorporating three of SkyePharma's five
technologies in the areas of oral, injectable, inhaled and
topical delivery, supported by advanced solubilisation
capabilities.  For more information, visit
http://www.skyepharma.com


STENMAR GROUP: Project Cost Overruns Lead to Receivership
---------------------------------------------------------
The last remaining commercial diving training center in the U.K.
has gone into receivership, according to Divernet.

The Stenmar Group, which owns the Fort William Underwater
Center, and 9>90 diving magazine, filed for receivership after
incurring heavy costs in relation to the building of Ocean
Frontier, a world-class aquarium showing sealife, diving and
underwater technology.

Receivers made redundant the company's 20 staff, retaining only
fifty employees to ensure the firm continues trading until it
emerges from insolvency.

The turn of events suggests Stenmar is highly unlikely to keep
its promise to 9>90 magazine subscribers it would honor
subscriptions undelivered when the publication stopped in 2003.
Stenmar's managing director Don McGregor had assured clients
they would receive copies when the magazine resumes publication
in January 2004.

Managers at Stenmar told Divernet that the publication had been
losing money and that the staff had been dismissed for
'mismanagement.'   The staff is contesting the allegation, and
is planning to take legal action over the dismissals.


TELEWEST COMMUNICATIONS: Nears Final Stage of Restructuring
-----------------------------------------------------------
Telewest Communications plc (Telewest) is in the last stages of
the planned financial restructuring of its balance sheet to be
effected through the issuance of common stock in a new Delaware
holding company, Telewest Global, Inc. in exchange for
cancellation of all of the notes issued by Telewest and its
wholly-owned subsidiary, Telewest Finance (Jersey) Limited
(Telewest Jersey) and certain other connected claims.  It is
anticipated that the financial restructuring will be implemented
by (amongst other things) schemes of arrangement to be promoted
by both companies.  The liabilities compromised by the schemes
of arrangement will include claims arising out of or in
connection with the Notes, a guarantee given by Telewest of the
Telewest Jersey Notes and an inter-company loan from Telewest
Jersey to Telewest by which the proceeds of the Telewest Jersey
Notes were loaned to Telewest.

It is anticipated that the schemes of arrangement will each
include a "bar date," which will be a date announced in due
course.  Only Scheme Claims that are notified to Telewest and
Telewest Jersey before the bar date or of which Telewest or
Telewest Jersey are already aware will be capable of being
admitted in the schemes of arrangement.

Telewest and Telewest Jersey are already aware of the Scheme
Claims as to principal and interest of the existing holders of
the Notes, the Guarantee and the Intercompany Loan.

Other Scheme Claims that are not notified to Telewest or
Telewest Jersey (as appropriate) on or before the bar date will
be cancelled on the schemes of arrangement becoming effective
for no consideration.

Creditors with claims other than those described above should
notify Telewest or Telewest Jersey of the existence of such
claims before the bar date. Notifications of claims should be
accompanied with a description of the nature of the claim and
the maximum amount of the claim and should be sent to Clive
Burns (the Company Secretary) by fax on 020 7299 5650 or
registered post to 160 Great Portland Street, London W 1 W 5QA.

Once the bar date has been determined, it will be advertised and
included on Telewest's Web site at http://www.telewest.co.uk.

Further details of the proposed financial restructuring are
available in the Registration Statement on Form S4 filed by
Telewest Global, Inc. with the Securities and Exchange
Commission (the SEC) on November 26, 2003 and can be accessed on
the SEC Web site at http://www.sec.gov.


WATERSTON & SONS: Receivers Offer Business for Sale
---------------------------------------------------
George Waterston & Sons, the 250-year-old printer, stationer and
wax maker, went into receivership last month, according to The
Scotsman.  Receivers Kroll is currently seeking to break the
company up or sell the separate parts -- the wax business, the
George Street stationery shop and a printing operation -- as a
going concern.

The company was demerged from its security printers division in
June, a move that was expected to keep the operation afloat, but
as Michael Willis, chief operating officer of the security
printers, said "[the printing, stationery and wax businesses]
were run the same way as before and failed after just six
months."

The receivers did not clearly explain the reason for the demise
of George Waterston, but it is believed that the mass departure
of key personnel to set up rival printer Coberg Direct may have
been crucial, according to the report.

Mr. Willis said GBP1 million of savings had been taken out of
the business since the demerger.  The company expects to return
to profit in the first quarter.  George Waterston (Security
Printers) (the demerged business) was considering buying the wax
operation, which now makes sealing wax and employs just five
people, according to Mr. Willis.  George Waterstons' office
products division has already been sold to rival Stewarts in
December.


                            *********


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 2004.  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.


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