/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/040109.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, January 9, 2004, Vol. 5, No. 6 Headlines B E L G I U M SOBELAIR: Files for Creditor Protection F I N L A N D BENEFON OYJ: Puts Workers on Forced Leave to Conserve Cash F R A N C E SYNSTAR FRANCE: Sold at Less than a Quarter of Book Value VIVENDI UNIVERSAL: Regulator Okays Partial Acquisition of Editis G E R M A N Y ALLIANZ AG: Launches EUR25 Million Reverse Convertible on Shares GERLING-KONZERN: Rating Changed to 'B' from 'SD'; Outlook Stable VAN DER: Poised to Sell VDM U.K. Bonds to Zion Bancorporation WESTLB AG: Concludes Disposal of U.K. Brokerage Biz to Lazard I R E L A N D ELAN CORPORATION: Prialt Looks Good in Initial Phase III Trials SCHERING-PLOUGH: Axes Hundreds in West Cork Plant I T A L Y PARMALAT FINANZIARIA: Former CFO Blames Founder for Scandal PARMALAT FINANZIARIA: Charles Piven Files Securities Suit in NY PARMALAT FINANZIARIA: Marc Henzel Launches Securities Suit in NY PARMALAT FINANZIARIA: Banks Queried on Possible Link to Scandal PARMALAT FINANZIARIA: Woes Worry Australian Arm Bankers PARMALAT FINANZIARIA: Indefinitely Suspends Sale of Cookie Biz PARMALAT FINANZIARIA: Small Shareholders in Bergamo File Lawsuit PARMALAT GROUP: SEC Sues Debtors; Seeks US$1.5 Billion in Fines PARMALAT SPA: Sells Entire MCC Stakes to Capitalia RENO DE: Closes EUR80 Million Sale of Barcelona Asset L U X E M B O U R G FINMATICA LUXEMBOURG: 'B+' Rating Assigned to Convertible Notes N E T H E R L A N D S KONINKLIJKE AHOLD: Denies Alleged Accounting Misrepresentations P O L A N D DAEWOO-FSO: Volkswagen Interested in Polish Subsidiary GDYNIA SHIPYARD: Government Ends Talks with Foreign Rescuer U N I T E D K I N G D O M AVECIA PLC: Moody's Lowers Debt Securities to Caa3 COMMUNICATIONS IN BUSINESS: Enters Administrative Receivership DAVID M AARON: Joint Administrators Seek Buyers for Business GOVETT STRATEGIC: Appoints RSM Robson Rhodes Joint Liquidators MG ROVER: December Car Sales 27% Down Year-on-year WALT DISNEY: Reshuffles Board, Enhances Governance Guidelines ********* ============= B E L G I U M ============= SOBELAIR: Files for Creditor Protection --------------------------------------- Troubled Belgian charter airline, Sobelair, formerly owned by now defunct national carrier Sabena, sought bankruptcy protection Wednesday. The Brussels Commercial Court, which received the case, is to decide on the matter within the next 15 days, a report from Expatica said. Should the plan be accepted, Sobelair could continue to operate while it seeks rescuers. In case the court rejects the request, Sobelair may appeal the decision and resubmit its request. The court, however, may also outrightly declare the company bankrupt. Sabena has already received takeover offers for the company. Tour operator TUI/Jetair, the company's largest client submitted an offer Tuesday evening. It's common knowledge that TUI is planning to create its own airline to support its many chartered flights. SN Brussels Airlines and Birdy Airlines are also reportedly interested in Sobelair's activities. Sobelair staff, meanwhile, fear receivers would sell the carrier's three aircraft and use the proceeds to pay outstanding debts, leaving them with nothing. ============= F I N L A N D ============= BENEFON OYJ: Puts Workers on Forced Leave to Conserve Cash ---------------------------------------------------------- The personnel cost cutting measures regarding production operators agreed in the industrial procedure, completed by December 5, 2003, and reported in December 11, 2003, consist of alternating forced leave for the time being. The applied measures touch 35 production workers. CONTACT: BENEFON OYJ Jukka Nieminen, President =========== F R A N C E =========== SYNSTAR FRANCE: Sold at Less than a Quarter of Book Value --------------------------------------------------------- In the announcement on December 2, 2003 of its preliminary results for the year ended September 30, 2003, Synstar disclosed that it was in advanced negotiations to sell its operations in France. Following the Workers' Council giving an opinion on the disposal, Synstar announced Wednesday that it has completed the sale of Synstar France to this subsidiary's management team. Terms of the disposal The consideration for the sale was a cash payment of GBP0.2 million. The net assets at the time of sale were approximately GBP10.0 million. After legal, redundancy and other costs, and the write-off of goodwill through the Group profit and loss account of GBP3.1 million (previously written off to reserves), the sale of Synstar France will result in a loss on disposal of approximately GBP14.5 million. The cash effect of the sale is expected to be an outflow of approximately GBP8.7 million. In addition, a small number of Business Continuity contracts managed by Synstar Belgium but executed in the main by Synstar's French operations will be assigned to the newly independent Synstar France. Benefits of this disposal to Synstar Plc The disposal will bring an immediate and beneficial effect on the operating performance of the Group. Synstar France reported operating losses of GBP3.3 million in the year ended September 30, 2003 and, given the limited scope for business development and cost reduction, a similar scale of loss could have been expected in the current financial year. Synstar France will join the pan-European 'Synstar Business Network' as a financially sound and independent business, and continue as a local delivery partner that uses our processes and is tightly bound into our delivery infrastructure. Background to the disposal Synstar France has been a long-term loss making business. Project and product revenues sales have accounted for over 50% of its revenue streams, areas that economic conditions have hit hard, and the customer base is less well focused. Cost reduction measures have been very difficult to address successfully in France and experience has shown that this is even harder to undertake when the business is part of an international Group. In the year ended September 30, 2003, Synstar France reported turnover of GBP16.4 million (2002: GBP17.1 million) and operating losses of GBP3.3 million (2002: an operating loss of GBP0.9 million). As a result, the Board believes that the sale of Synstar France represents a clean break from a loss-making business that will benefit the Group both in terms of improved operating performance and increased management focus on the Group's continuing operations. CONTACT: SYNSTAR PLC Steve Vaughan/Stephen Gleadle Phone: 01344 662700 FINANCIAL DYNAMICS Edward Bridges/James Melville-Ross/Juliet Clarke Phone: 020 7831 3113 VIVENDI UNIVERSAL: Regulator Okays Partial Acquisition of Editis ---------------------------------------------------------------- The European Commission authorized the French group Lagardere to acquire part of the publishing business of Editis (formerly known as Vivendi Universal Publishing or VUP). The transaction initially notified was for Editis to be taken over in its entirety, but this would have created or strengthened dominant positions on many of the markets making up the French-language book chain, such as those for publishing rights, marketing and distribution services and sales of books to dealers and by wholesalers. Lagardere's decision to retain only part of the Editis business satisfied the objections. Editis is currently the leader in the publishing, marketing and distribution of French-language books. Lagardere, via its subsidiary Hachette Livre, is the second player in the market. The group is also active in book retailing, broadcasting and newspaper publishing and distribution. The acquisition of the entire Editis publishing business in the European Union and in Latin America, as planned in the transaction notified to the Commission, would have produced a heavily dominant group with a turnover seven times that of its nearest rival. The Commission's investigation and analysis revealed that the new entity would control access both to the "raw material," i.e. well-known authors, whose sales are the lifeblood of publishers, and to sales outlets, which cannot absorb, let alone promote, more than a limited proportion of the works published each year. In addition the supremacy of the new entity in the more industrialized part of the publishing business marketing, distribution and publishing in pocket format would have resulted in a two-speed industry: on the one hand, dependent publishers left on the sidelines with no alternative but to engage in the riskier business of prospection and creation and, on the other hand, an industrial group integrated along the entire book chain and capable of retaining the best-selling authors and monopolizing most of shelves in bookshops. The transaction prompted serious concern among many other players in the French-language publishing trade, including associations of authors, (large and small) booksellers and readers, as well as independent publishers and wholesalers who were wary of a reduction in supply. Many booksellers also expressed fears that the discounts they are granted might be cut, thus jeopardizing the very existence of certain outlets. In reply to the Commission's concerns, Lagardere has undertaken to sell Editis with the exception of the following assets, which make up around 40% of the total turnover of the company: (a) the Larousse publishing house and all of its business and its publisher's lists; (b) the Dalloz publishing house and all of its business and its publisher's lists; (c) the Dunod publishing house and all of its business and its publisher's lists; (d) the academic lists made up of the publishers' lists of Armand Colin, Sedes and Nathan Universite and the academic journals; (e) the Spanish group Anaya and all of its business and its publisher's lists; (f) the Ivry distribution center. On the basis of these undertakings, the transaction no longer presents any competition problems and can therefore be authorized. It should be pointed out that the Commission detected problems on the French-language publishing sector alone, where the Spanish group Anaya is not present. The assets retained are in sectors where the transaction does not create a dominant position (essentially academic and reference works). The timescale for the sale agreed with Lagardere remains confidential, standard practice in cases where the go-ahead is subject to the sale of assets. As is also the rule, the Commission will have to approve the buyer or buyers of the assets in order to ensure that effective and lasting competition is maintained in the market. ============= G E R M A N Y ============= ALLIANZ AG: Launches EUR25 Million Reverse Convertible on Shares ---------------------------------------------------------------- WestLB AG is issuing a 6% reverse convertible on shares of Allianz AG. The total volume of the issue is EUR25 million. The initial offer price of the reverse convertible on Allianz AG is 100% and it is available in denominations of EUR5,000. Payment date is January 12, 2004. The bonds will be redeemed at the choice of the issuer on July 12, 2004 either at par (scenario A) or by delivery of 57 Allianz AG shares per bond with a principal amount of EUR5,000 (scenario B). In this case the strike price will be EUR87.72 subject to an adjustment according to the terms and conditions of the issue. The reference price for the share is EUR99.85. The bearer bond will be listed on the Dusseldorf, Frankfurt (Smart Trading) and Stuttgart (EUWAX) Stock Exchanges. ***** Analysts are expecting Allianz AG to post a third-quarter pretax profit of between EUR463 million and EUR1.33 billion, or an average of EUR820 million. The positive result, believed to have been driven by a strong performance in property and casualty insurance operations, is the group's second quarterly return to black. Allianz broke even in the second quarter after a EUR3.2 billion loss in the year-earlier period. GERLING-KONZERN: Rating Changed to 'B' from 'SD'; Outlook Stable ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its long-term counterparty credit rating on Germany-based reinsurer Gerling- Konzern Globale Ruckversicherungs-AG (GKG) to 'B' from 'SD' (selective default). The outlook is stable. The rating action represents a reinstatement of the counterparty credit rating on Gerling-Konzern Globale Ruckversicherungs-AG. The rating will be maintained for as long as GKG has public debt outstanding. Gerling-Konzern Globale Ruckversicherungs-AG acts as guarantor for the EUR220 million subordinated notes issued by Gerling Global Finance Alpha B.V. (not rated). The notes are currently rated 'D' and will continue to be rated at this level until such a time as all interest arrears have been settled, despite the fact that the deferral of interest is allowed under the terms and conditions governing the notes. "In Standard & Poor's opinion, Gerling-Konzern Globale Ruckversicherungs-AG currently has the capacity to meet its financial obligations in an orderly fashion. However, adverse business, financial, or economic conditions have the potential to impair this capacity," said Standard & Poor's credit analyst Peter Grant. "Such conditions include a number of risks that may manifest themselves over the long term, including the potential for the emergence of deficiencies in reserves -- particularly in respect of Gerling-Konzern Globale Ruckversicherungs-AG's overseas operations -- as well as the loss of key staff and the execution risk surrounding the planned repatriation of capital from a number of Gerling-Konzern Globale Ruckversicherungs-AG's operating subsidiaries," added Mr. Grant. The outlook is stable since the risk that adverse business, financial, or economic conditions may impair Gerling-Konzern Globale Ruckversicherungs-AG's future ability to meet policyholder obligations is reflected in the rating at its current level. The company's statutory book equity (negative EUR100 million at December 31, 2002) is expected to steadily improve to be positive by the end of 2004, benefiting from the continuation of Gerling-Konzern Globale Ruckversicherungs-AG's active commutation strategy and the anticipated limited deterioration in current loss-reserving levels. Gerling-Konzern Globale Ruckversicherungs-AG's liquidity position would be strengthened by the successful execution of the planned repatriation of capital from its subsidiaries, and from the ultimate sale of the Revios group. VAN DER: Poised to Sell VDM U.K. Bonds to Zion Bancorporation ------------------------------------------------------------- Van der Moolen, specialists, market makers and proprietary traders, has signed an agreement to sell 100% of its Van der Moolen U.K. Ltd. subsidiary (VDM Bonds) to Zions Bancorporation (Nasdaq: ZION). The transaction is subject to approval by U.S. and U.K. regulatory authorities; closing is anticipated at the end of March 2004. VDM Bonds was created in 2001 to provide fixed income liquidity in less-than-wholesale transaction sizes to banks and other intermediaries. As it has expanded its customer base and the inventory of bonds for which it offers electronically auctionable markets, its capital requirements have correspondingly increased. Van der Moolen, as a non-bank entity, became concerned that constraints on its ability to underwrite substantial further growth could prevent VDM Bonds from achieving its full potential, and began to explore partnership opportunities for the business in 2003. In the U.S., Zions Bancorporation engages in activities similar to those of VDM Bonds, and in discussion with them it soon became clear that they would be VDM Bonds' ideal partners. Van der Moolen will transfer its interest in VDM Bonds at book value, and in the process reduce its Balance Sheet total significantly. CONTACT: VAN DER MOOLEN Investor Relations/Corporate Communications Phone: +31 (0)20 5356 789 WESTLB AG: Concludes Disposal of U.K. Brokerage Biz to Lazard ------------------------------------------------------------- WestLB AG on Wednesday finalized the transfer of the Panmure stockbroking business to Lazard. The sale of the Panmure business in the U.K. follows the decision of WestLB to concentrate its equity business on large cap pan-European equities. This business currently employs over 200 people with offices in London, New York, Frankfurt and Dusseldorf. Manfred Puffer, member of the Managing Board of WestLB AG, said: "With this move WestLB has positioned itself specifically in the Large Cap European Equities and Equity Derivatives segments and in the M&A field." ***** In March 2003, WestLB restructured its equity business in three independent business units. Since then the pan-European and German equity business, including equity derivatives, has been concentrated in the WestLB Equity Markets business unit. Another unit is responsible for WestLB's M&A business. Panmure U.K. handles the corporate brokerage business in the U.K. market. WestLB Equity Markets conducts international equity sales, trading and research across a range of sectors for Stoxx 200 companies as well as a wide selection of DAX, MDAX, TecDAX and other listed German companies. In addition, WestLB Equity Markets is a leading player in the equity derivatives markets. In the equity capital markets, WestLB was involved in 11 equity market transactions in 2003 with a total deal value in excess of EUR15 billion. ============= I R E L A N D ============= ELAN CORPORATION: Prialt Looks Good in Initial Phase III Trials --------------------------------------------------------------- Irish pharmaceutical giant, Elan, saw its share price advance 57c to EUR5.97 on the ISEQ Wednesday after it said it expects to bring its Prialt(TM) (ziconotide) to market before the first quarter of 2005. A company statement said: "[The] recent Phase III trial for Prialt(TM) (ziconotide) met its primary endpoint in patients with severe chronic pain who had not achieved pain relief with other therapies including intrathecally delivered morphine. In the double-blind, placebo-controlled study, patients taking Prialt achieved statistically significant improvement at Week 3 in the Visual Analog Scale of Pain Intensity (VASPI) score, the most commonly used pain assessment scale for clinical trials. In the company's analysis, the treatment appears to be safe, efficacious, and well tolerated. Based on the positive results, the company expects to file an amendment to its New Drug Application with the U.S. Food and Drug Administration in the second quarter of 2004 and to bring the treatment to market no later than the first quarter of 2005." Prialt is the first in a new class of non-opioid analgesics known as N-type calcium channel blockers, administered intrathecally for the treatment of severe chronic pain. Elan submitted an application for approval for marketing Prialt in the European Union in May 2003. Dr. Lars Ekman, executive vice president and president, Research & Development, Elan, said, "We are very encouraged by these definitive findings with Prialt and believe that this is significant news for patients suffering with severe chronic pain, many of whom are not now adequately treated. This study fulfills the clinical requirement in response to the U.S. Food and Drug Administration 's previous approvable letter, and upon submission, we anticipate a six month review for the amendment to the New Drug Application." The U.S. Food and Drug Administration had previously issued an approvable letter for Prialt, in which the agency had requested additional information. This trial was conducted in response to the U.S. Food and Drug Administration's clinical request and designed with their input, studying 220 patients with severe chronic pain to demonstrate the efficacy and safety of lower doses of Prialt and a slower titration schedule than was used in two previous Phase III studies. In this clinical trial, there were few serious side effects, with an incidence similar to placebo. These data will be presented at a major scientific pain meeting this year. As a non-opioid analgesic for patients with severe chronic pain such as neuropathic pain or pain secondary to cancer, Prialt addresses a significant unmet medical need. About two million patients in the U.S. with chronic pain fail to respond to existing comprehensive treatment. Of these, about 300,000 may be considered as potential candidates for intrathecal treatment, which could include Prialt. In order to make this treatment available to patients during the review process, a Treatment IND to make Prialt available on a limited basis to select pain centers in the United States will begin in the first quarter of 2004. CONTACT: ELAN CORPORATION, PLC Investors Emer Reynolds Phone: 353-1-709-4000 or 800-252-3526 SCHERING-PLOUGH: Axes Hundreds in West Cork Plant ------------------------------------------------- Schering-Plough cut 170 jobs at its pharmaceutical plant near Innishannon in west Cork, according to RTE News. The company employs more than 900 people in the area. The move affects many contract workers who have been with the company for up to two years. It excludes employees at its two plants in Co Wicklow, where 700 people work. Schering-Plough has been one of the most successful multi- nationals operating in Ireland for almost 20 years, but its fortune turned sour after its patent on anti-cancer and anti- viral drugs known generically as 'interferon' ran out. The company's market share for 'interferon' has been halved since. In December, the New Jersey-based parent company announced it would be cutting its wage bill by 10% or US$200 million worldwide. Many U.K. workers hope the remaining cuts involving permanent staff will be achieved through voluntary redundancies. ========= I T A L Y ========= PARMALAT FINANZIARIA: Former CFO Blames Founder for Scandal ----------------------------------------------------------- Parmalat Finanziaria S.p.A.'s former finance chief, Fausto Tonna, pointed to founder Calisto Tanzi as the brains behind the multibillion-euro accounting fraud viewed as Europe's largest, Reuters reports. The scandal erupted over two weeks ago after executives revealed an initial EUR4 billion gap in its accounts, forcing the company to seek creditor protection. Now investors believe that the gap could exceed EUR10 billion (US$12.7 billion). Mr. Tanzi has admitted to diverting about EUR500 million from the Company, in particular to family tourism companies, but denied he knew how it was done. He has also said the accounting gap could be as big as EUR8 billion, Reuters reports. Mr. Tonna was taken from prison for more questioning by public prosecutors in Parma, the northern Italian city close to Parmalat Finanziaria S.p.A.'s headquarters. Mr. Tonna allegedly helped build a web of offshore holding companies with fictitious assets to cover the financial gap at the main office in Italy. A judicial source told Reuters that former chief financial officer, during his interrogation, had insisted he was only carrying out Mr. Tanzi's instructions. Eight others are currently detained for questioning, but no additional charges have been brought. Giovanni Bonici, the former head of Parmalat Venezuela told Reuters his attorney was negotiating the terms of his return to Italy from Venezuela. He has denied participation in the scandal. Prosecutors are trying to piece together where the missing money went and whether anything is left. They have contacted foreign banks for information. In the United States, the Securities and Exchange Commission, Manhattan District Attorney Robert Morgenthau and the U.S. Attorney's office in Manhattan are participating in the probe, a source familiar with the situation told Reuters over the weekend. These authorities are probing the participation of U.S. banks, which helped manage the sale of about EUR8 billion worth of Parmalat bonds between 1997 and 2002. Over US$1.5 billion worth of Parmalat bonds were purchased by U.S. investors. Bank of America (BAC) is believed to have organized private placements of some US$500 million of Parmalat bonds since 1997 and has been involved in structuring other business for the group. The bank told Reuters it was cooperating with regulators and "other authorities." A source close to the probe told Reuters on Monday that seized documents showed cash had been pumped into AC Parma, one of Italy's top soccer clubs owned by Parmalat, and more money was missing from a tourism business than previously feared. "We get a surprise with every company we look at," he said. "There was systematic falsification and there are cracks all over the place." Italy market regulator, Consob, has already asked a Parma court to nullify the Company's 2002 accounts, which show a net profit of EUR252 million, after the group failed to comply with accounting standards. Additionally, Parmalat's government- appointed administrator, Enrico Bondi, is expected to ask Italian banks soon for new loans that news reports have pegged at between EUR50 million and EUR100 million. "It is likely that meetings with bankers will take place over the course of this week," a source familiar with the matter told Reuters after Mr. Bondi met restructuring advisers Mediobanca (MDBI) and Lazard (LAZ.UL). He said work was progressing well. PARMALAT FINANZIARIA: Charles Piven Files Securities Suit in NY --------------------------------------------------------------- The Law Offices Of Charles J. Piven, P.A. initiated a securities class action, in the United States District Court for the Southern District of New York, on behalf of those who purchased securities (including stock, bonds and notes) of Parmalat Finanziaria, S.p.A. between January 5, 1999 and December 29, 2003, inclusive. The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the Class Period which statements had the effect of artificially inflating the market price of the Company's securities. For more information, contact Charles J. Piven, by Mail: The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202, by Phone: 410/986-0036, or by E-mail: hoffman@pivenlaw.com PARMALAT FINANZIARIA: Marc Henzel Launches Securities Suit in NY ---------------------------------------------------------------- The Law Offices of Marc S. Henzel initiated a securities class action in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Parmalat Finanziaria S.p.A. (OTC:PARAF.PK Milan:PRF IM) and its subsidiaries during the period between January 5, 1999 and December 29, 2003. The complaint charges certain of Parmalat's senior insiders and its legal, accounting and financial advisors with violations of the Securities Exchange Act of 1934. Parmalat is an international food and dairy company. The complaint alleges that Parmalat's senior insiders, together with Parmalat's legal, accounting and financial advisors, concocted a massive scheme whereby they overstated Parmalat's reported profits and assets for more than a decade. The alleged scheme involved the creation of bogus bank accounts, the use of forged financial records and the manipulation of Parmalat's balance sheet and income statement via fictitious investment assets and sham transactions, and was designed to and did allow defendants to divert approximately $1 billion to themselves and/or to companies controlled by them via professional fees and clandestine asset transfers and enabled Parmalat to raise more than $5 billion from unsuspecting investors from the sale of newly issued securities. The fraudulent scheme began to unravel in the fourth quarter of 2003, when, contrary to defendants' Class Period representations that Parmalat was experiencing strong growth in net operating profit and had a healthy balance sheet, it was disclosed that: (1) almost 40% of Parmalat's entire asset base, purportedly held in a bank account at Bank of America, did not exist; (2) Parmalat had been declared insolvent; (3) the $625 million of Parmalat's cash purportedly invested in a liquid investment fund in the Cayman Islands could not be retrieved; (4) defendants had manipulated the Company's income statements and balance sheet for more than a decade by using off-shore shell companies, special purpose entities, forged documents and sham transactions; and (5) at least eight Parmalat senior insiders, auditors and lawyers, including certain of the defendants, had been taken into custody for the perpetration of this multi- billion dollar fraud. As the magnitude of the fraud began to reach the market, the complaint alleges that defendants attempted to destroy evidence and/or ordered their subordinates to destroy evidence of the fraudulent scheme in an effort to evade liability for their participation in one of the most shocking corporate scandals ever to afflict the public financial markets. The revelations of defendants' misconduct caused the price of Parmalat stock to plunge 95% before trading was suspended on December 29, 2003. For more details, contact Marc S. Henzel by Mail: 273 Montgomery Ave., Suite 202, Bala Cynwyd, PA 19004 by Phone: 610-660-8000 or 888-643-6735 by Fax: 610-660-8080 or by E-mail: mhenzel182@aol.com PARMALAT FINANZIARIA: Banks Queried on Possible Link to Scandal --------------------------------------------------------------- Italian prosecutors investigating the Parmalat fraud scandal met representatives of Citigroup and Deutsche Bank on Wednesday, Reuters reports. The investigators are establishing how a EUR10 million gap in Parmalat's accounts came about and will focus on the role of the banks on the fiasco. These banks lent to Parmalat, sold its bonds and advised it on offshore units that are now at the core of the scandal. Deutsche Bank representatives, who met with investigators in Parma, were asked about a EUR350 million- Parmalat bond underwriting in September, according to a Reuters source. "Only their bond role was discussed," the source said. Separately, a Citigroup lawyer has suggested to a Milan magistrate a possible meeting with bank executives, a judicial source told Reuters. Citigroup helped set up a special vehicle called Black Hole that handled loans among Parmalat units. Investigators will also examine financial difficulties at Parmatour, a tourism company owned by the Tanzi family. Parmatour has a EUR2-2.5 billion hole in its accounts -- a claim the company has denied. The investigation on Parmatour was confirmed by an investigative source, Reuters added. Parmalat founder, Calisto Tanzi, who is currently jailed along with former chairman and a partner of Grant Thornton's Italian affiliate, admitted he had channeled some EUR500 million Parmalat funds to sustain Parmatour. Prosecutors say intra-group loans were used by an inner circle of Parmalat managers to divert cash away from the group, according to the report. PARMALAT FINANZIARIA: Woes Worry Australian Arm Bankers ------------------------------------------------------- The fiasco at bankrupt Italian dairy group Parmalat threatens to cut the net worth of its Australian arm, according to Dow Jones. With Parmalat's bonds now valued at zero, Parmalat Pacific could lose AU$145 million in assets, the report said. The prospect worries the local firm's bankers, whose exposure in the company totals AUS$300 million. These banks, whose loans to Parmalat Pacific are guaranteed by the Italian parent, include National Australia Bank, ANZ Bank and Commonwealth Bank. But according to the report, a spokesman assured the firm Parmalat's Australian assets still exceed total liabilities even if the Italian Parmalat's bonds are now worthless. PARMALAT FINANZIARIA: Indefinitely Suspends Sale of Cookie Biz -------------------------------------------------------------- Italian dairy food group Parmalat has put on hold plans to sell its U.S. cookie business pending resolution of the financial crisis that is currently shaking the company. Citing sources close to the situation, Reuters said there are no definite plans when or whether the sale of Archway and Mother's cookie brands would be pushed through. Deutsche Bank was previously hired to manage the sale of the brands. Parmalat's Australian operation, meanwhile, has attracted the interest of Australian dairy firm National Foods. Australia's largest fresh milk producer expressed its interest in the business despite Parmalat Australia's statement that the company is stable and not for sale at the moment. The Australia assets could fetch up to AU$410 million (US$315.5 million), local analysts said, according to the report. PARMALAT FINANZIARIA: Small Shareholders in Bergamo File Lawsuit ---------------------------------------------------------------- Lawsuits seeking to recover lost investments in Italian dairy food group Parmalat were forwarded to the Milan Attorney Office, according to Agenzia Giornalistica Italia. Bergamo's Federconsumatori received dozens of phone calls relating to the case, said Umberto Dolci. The new suits were all made by elderly shareholders, and involve sums between EUR20,000 and EUR30,000. According to Mr. Dolci: "Our assistance in the Parmalat crack only regards elderly people for the time being." Confartigianato's Transport section president Elio Cavalli, meanwhile, has asked the government for measures to protect the industry from the Parmalat crisis. Until now, 300 companies have undergone losses amounting to almost EUR80 million, he said. He warned that these companies might not be able to deliver milk they are supposed to distribute should there be no positive response from the government, or from Parmalat special commissioner Enrico Bondi, whom he said he had approached for a meeting. PARMALAT GROUP: SEC Sues Debtors; Seeks US$1.5 Billion in Fines --------------------------------------------------------------- The Securities and Exchange Commission accuses Parmalat Finanziaria S.p.A. and its subsidiaries of violating the anti- fraud provisions of the Securities Act of 1933. The Commission asks the U.S. District Court for the Southern District of New York to enjoin Parmalat from committing further violations of the federal securities laws and compel Parmalat to pay a substantial civil monetary penalty. Corriere della Sera, citing an unnamed SEC official, says the Commission may seek up to $1,500,000,000 in fines. Allison C. Rosenstock, Esq., counsel for the Securities and Exchange Commission, explains that, from August through November 2003, Parmalat offered debt securities in the United States while engaging in one of the largest and most brazen corporate financial frauds in history. As Parmalat acknowledged in a press release dated December 19, 2003, the assets in its 2002 audited financial statements were overstated by at least EUR3,950,000,000 -- $4,900,000,000 at current exchange rates. During 2003, Parmalat also falsely stated to prospective U.S. bond and note investors to have used its "excess cash balances" -- which actually did not exist -- to repurchase corporate debt securities worth EUR2,900,000,000 -- $3,600,000,000 -- when in fact it had not repurchased those debt obligations and they remained outstanding. During the previous five years, Parmalat induced U.S. investors to purchase bonds and notes totaling $1,500,000,000. In August 1996, Parmalat sponsored an offering of American Depositary Receipts in the United States, with Citibank, N.A. as depositary. Parmalat actively participated in the establishment of the ADR program. Ms. Rosenstock contends that Parmalat knew, or was reckless in not knowing, that its consolidated accounts for the fiscal year ending December 31, 2002, and for the periods commencing the first quarter 2003 through the third quarter 2003, inclusive, contained material misstatements and omissions. Unless restrained and enjoined by the Court, Ms. Rosenstock says that Parmalat will continue to engage in, transactions, acts, practices, and courses of business that violate Section 17(a) (Fraudulent Interstate Transactions) of the Securities Act [15 U.S.C. Section 77q(a)]. Under Section 17(a): "It shall be unlawful for any person in the offer or sale of any securities or any security-based swap agreement (as defined in section 206B of the Gramm-Leach-Bliley Act [15 USCS Section 78c note]) by the use of any means or instruments of transportation or communication in interstate commerce or by use of the mails, directly or indirectly -- 1. to employ any device, scheme, or artifice to defraud; or 2. to obtain money or property by means of any untrue statement of a material fact or any omission to state a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or 3. to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser. Admissions by Former Management On December 9, 2003, Calisto Tanzi, then Parmalat's Chairman and Chief Executive Officer, and his son Stefano Tanzi, a senior Parmalat executive, met with representatives from a New York City-based private equity and financial advisory firm regarding a possible leveraged buyout of Parmalat. During that meeting, in response to a comment by one of the Tanzis about liquidity problems at Parmalat, one of the New York firm's representatives noted that Parmalat's financial statements showed that the company had a large amount of cash. In response, Stefano Tanzi stated that the cash was not there, and that Parmalat really had only EUR500,000,000 in cash. Later, Luciano Del Soldato, then Parmalat's Chief Financial Officer, joined the meeting. During a discussion of Parmalat's outstanding debt, Mr. Del Soldato stated that Parmalat's debt was actually EUR10,000,000,000, much higher than the balance sheet showed. Mr. Del Soldato indicated that the balance sheet was incorrect because Parmalat had not repurchased EUR2,900,000,000 of Parmalat bonds. The balance sheet falsely reflected that the bonds had been repurchased. Based on these revelations, the New York firm's representatives offered to send members of the firm's restructuring group to meet with the Tanzis. The following day, representatives of the firm's restructuring group met with the Tanzis, and informed them that Parmalat needed to publicly disclose the facts disclosed to the New York firm if that firm were to continue to have any involvement. When it became clear that the Tanzis were unwilling to do so, the New York firm's representatives terminated their discussions with Parmalat. The 2003 Note Offering and Previous Sales of Notes From 1998 through 2002, Parmalat and certain of its top managers and directors, including Calisto Tanzi and its then Chief Financial Officer Fausto Tonna, actively marketed and sold nearly $1,500,000,000 in notes and bonds to U.S. investors. To offer and sell these debt securities, Parmalat participated in numerous road shows in the United States, and on numerous occasions held due diligence meetings for U.S. buyers of the bonds at its headquarters near Parma, Italy. In August 2003 and continuing through November 2003, Parmalat fraudulently offered $100,000,000 of unsecured Senior Guaranteed Notes to U.S. investors by materially overstating its assets and materially understating its liabilities. The attempted $100,000,000 note offering failed after Parmalat's auditors raised questions about certain Parmalat accounts. Equity Securities Sold in the U.S. An ADR is a receipt issued by a depositary bank and represents a specified amount of a foreign security that has been deposited with a foreign branch or agent of the depositary, known as the custodian. The holder of an ADR is not the title owner of the underlying shares. The title owner of the underlying shares is either the depositary, the custodian, or their agent. The depositary provides stock transfer services such as issuing and canceling ADRs, maintaining a register of holders, and distributing dividends in U.S. dollars. It is the receipts of deposit, rather than the actual securities of the issuer, that are traded in the U.S. markets. ADRs are tradable in the same manner as any other registered American security, may be listed on any of the major exchanges in the United States or traded over the counter, and are subject to the U.S. federal securities laws. Parmalat sponsors its ADR program, meaning that Parmalat actively participated in the establishment of the ADR program and agreed to various terms concerning the ADRs, and to the rights and obligations of the parties involved -- Parmalat, Citibank, and the owners of the ADRs. Citibank, the depositary for Parmalat's ADRs, provides transfer services. Parmalat's ADRs were originally privately placed in the U.S. on August 9, 1996. The ADRs are traded on the over-the-counter market in a 20:1 ratio -- 20 Parmalat shares per ADR -- and quoted in the "Pink Sheets." On December 19, 2003, the price of Parmalat's ADRs closed at 40 cents, down 85 cents -- or 68% -- from the previous close, on volume of 16,070 ADRs traded. Their price had fluctuated between $3.4 and $1.10 over the past year. Before December 19, 2003, the price of Parmalat ADRs had been artificially inflated by materially false and misleading statements. As of the end of 2002, Parmalat purportedly held EUR3,950,000,000 worth of cash and marketable securities in an account at Bank of America in New York City held by its subsidiary Bonlat Financing Corporation. Bonlat is wholly owned by Parmalat and incorporated in the Cayman Islands. Bonlat's 2002 financial statements were certified by Bonlat's auditors based upon a false confirmation that Bonlat held these assets at Bank of America. The accounts and assets did not exist and the purported confirmation had been forged. These non-existent assets are reflected on Bonlat's 2002 books and records and, in turn, in Parmalat's 2002 consolidated financial statements, as well as in its consolidated financial statements as at June 30, 2003, which were provided to U.S. investors to whom Parmalat offered notes in August through November 2003. In addition to grossly overstating the amount of the liquid assets in its 2002 and June 30, 2003 financial statements provided to U.S. investors, Parmalat provided those investors in August 2003 with a private placement memorandum that contained numerous material misstatements about the company's financial condition. The memorandum falsely states: "Liquidity is high with significant cash and marketable securities balances. . ." Commissione Nazionale per la Societa e la Borsa -- Consob -- the public authority responsible for regulating the Italian securities market, is assisting the SEC in its continuing investigation. (Parmalat Bankruptcy News, Issue No. 2; Bankruptcy Creditors' Service, Inc., 215/945-7000) PARMALAT SPA: Sells Entire MCC Stakes to Capitalia -------------------------------------------------- Parmalat Finanziaria S.p.A., under extraordinary administration, communicates that its subsidiary company Parmalat S.p.A., also under extraordinary administration has sold to Capitalia its entire holding of 1.5% of the capital of MCC S.p.A. held by the same Parmalat S.p.A., for a consideration of EUR22 million. This transaction has been carried out with the specific authorization of the Ministry of Productive Activities in agreement with the Ministry of Agriculture and Forestry. RENO DE: Closes EUR80 Million Sale of Barcelona Asset ----------------------------------------------------- Reno De Medici [Standard & Poor's 'BB' long-term corporate credit rating] announces that on the evening of December 23, 2003 the closing of the sale transaction took place for the real estate business situated in PRAT (Barcelona), bringing in EUR50 million in cash. The transaction, for a total value of EUR80 million, also provides for a deferred payment of EUR30 million. The EUR30 million deferred payment is supported by a first demand guarantee granted on the same date by BANESTO. CONTACT: RENO DE MEDICI S.P.A. Mario Del Cane Phone: 02/979601 E-mail: investor.relations@renodemedici.it Bonaparte 48 Alessandro Iozzia Phone: 02/8800971 Fax: 02/72010530 E-mail: Alessandro.iozzia@bonaparte48.com Filippo.turchetti@bonaparte48.com =================== L U X E M B O U R G =================== FINMATICA LUXEMBOURG: 'B+' Rating Assigned to Convertible Notes --------------------------------------------------------------- Fitch Ratings assigned Finmatica Luxembourg S.A.'s EUR55 million equity linked bonds due in January 2008 a 'B+' Senior Unsecured rating. The payment of the principal, interest and redemption amount in respect of the bonds, issued by this special purpose vehicle, are unconditionally and irrevocably guaranteed by Finmatica S.p.A. (Finmatica, rated 'B+'). The rating Outlook is Stable. The bonds are offered exclusively to institutional investors. At maturity, the bonds will be redeemed at their principal amount, plus accrued and unpaid interest, if any. The offering has been structured in two tranches of EUR22 million (A bond) and EUR33 million (B bond) each. The bonds will bear interest at the rate of between 4.75% and 5.25% per annum on a semi annual basis. The issuer has an early redemption option as from January 2005. Bondholders may redeem from March 2004 (A bond) or May 2005 (B bond). An early redemption clause for the B bond also applies in case of change of control or full early redemption of the EUR100 million guaranteed notes due 2005 issued by Finmatica International Finance B.V. and guaranteed by Finmatica. The bonds rank pari passu among themselves and at least pari passu with all other present and future unsecured obligations to be issued. Terms and conditions also include standard events of default, but no financial covenants or triggers. The funds raised will be used by Finmatica to repay short-term debt or refinance the outstanding EUR100 million bond. Finmatica Luxembourg S.A. is a wholly-owned subsidiary of Finmatica and is incorporated as a societe anonyme under Luxembourg law. The purpose of the company is to act as a finance vehicle for the Finmatica group. Finmatica is a quoted Italian independent software vendor. Share float currently stands at 44% with key shareholder being Pierluigi Crudele, the company's founder, which directly and indirectly holds 56%. Revenues stem from its finance (53% of FY02 revenues), B2B/supply chain management (27%), security (15%) and others (5%) sectors. ===================== N E T H E R L A N D S ===================== KONINKLIJKE AHOLD: Denies Alleged Accounting Misrepresentations --------------------------------------------------------------- Dutch retailer Royal Ahold said, claims that its accounts dating as far as 1998 are flawed, are unfounded. The VEB (Association of Dutch Stockholders) had summoned the company to appear before the Enterprise Chamber of the Amsterdam Court of Appeals regarding its previous accounts. The group said annual accounts for fiscal years 1998, 1999, 2000, 2001 and 2002 should be nullified and Ahold should be ordered to restate its accounts and related annual reports for such periods. The company said it intends to "vigorously oppose" the allegation. =========== P O L A N D =========== DAEWOO-FSO: Volkswagen Interested in Polish Subsidiary ------------------------------------------------------ The possibility that Volkswagen and ailing Zeran-based car manufacturer Daewoo-FSO might enter into a business deal in the future was brought up after a recent visit of a representative of Volkswagen in the plant. According to Warsaw Business Journal, the German company's representative said: "I think that it is possible for the VW group to produce its cars here in Zeran. Besides the German market, we are also thinking about Seat and Skoda. By the end of January I will recommend that our German headquarters send out technical and financial experts to make feasibility studies." Mr. Malachowski said the Warsaw factory facility has a lot to offer with its strategic location, new production facilities and well-trained technical personnel. The promising news, however, did not stop the Polish government from seeking other plans for the carmaker. Daewoo-FSO representatives continue to hold negotiations with Britain's MG Rover. GDYNIA SHIPYARD: Government Ends Talks with Foreign Rescuer ----------------------------------------------------------- European Shipbuilding Limited, a multinational company, has been cut off from a possible collaboration with Gdynia Shipyard. The firm had promised to support the restructuring process of the ailing shipyard, but talks fell through. Dariusz Adamski, a member of supervisory board at GS and the head of the company's Solidarity union, said the prospective bidder had promised to raise US$100 million to finance current orders and repay its liabilities to employees. According to rumors, the deal was cut short to accommodate the Industrial Development Agency's plan to purchase a stake in the shipyard from Kredyt Bank. Mr. Adamski said: "The government would [now] have to grant a guarantee from the Export Credit Insurance Corporation worth US$250 million. The project was presented during a meeting with Economy Minister Jerzy Hausner in late September 2003." =========================== U N I T E D K I N G D O M =========================== AVECIA PLC: Moody's Lowers Debt Securities to Caa3 -------------------------------------------------- Moody's Investors Service downgraded the ratings on Avecia Group, a holding company for a diversified specialty chemicals group, due to concerns regarding the company's financial health. It lowered the company's debt securities to Caa3 from Caa1 and Avecia's senior implied rating to Caa1 from B2. At the same time, the rating agency lowered the ratings on the bank debt securities to B3 from B1 and the preferred stock rating to Ca from Caa2. The outlook on all ratings is negative. Ratings affected include: (a) The rating for the US$540 million in senior notes of Avecia Group PLC lowered to Caa3 from Caa1 (b) The senior implied rating for Avecia Group PLC lowered to Caa1 from B2 (c) The rating assigned to the bank debt facilities for Avecia Investments Ltd lowered to B3 from B1 (d) The senior unsecured issuer rating for Avecia Group PLC lowered to Caa3 from Caa1 (e) The preferred stock rating on the US$45 million PIK Preference shares for Avecia Group PLC lowered to Ca from Caa2 Moody's said the action reflects Avecia's further weakening credit profile, the uncertainty regarding the group's financing strategy and the increased risk for bondholders, the difficulty for the company to meet its obligations to banks and bondholders without reliance on asset disposals or re-negotiation, the limited liquidity available to the group, and its very weak performance. Avecia has a very high leverage with a LTM Net debt/EBITDA of 6.7x. The figure is expected to have further weakened at the end of 2003. COMMUNICATIONS IN BUSINESS: Enters Administrative Receivership -------------------------------------------------------------- Nature of business: Advertising Trade classification: SIC 92 Date of appointment of Joint Administrative Receivers: December 31, 2003 Name of appointer: The Bank of Scotland Geoffrey Paul Rowley and Michael Jonathan Christopher Oldham Joint Administrative Receivers (office holder nos. 8919 and 7817) of RSM Robson Rhodes LLP, 186 City Road, London EC1V 2NU DAVID M AARON: Joint Administrators Seek Buyers for Business ------------------------------------------------------------ At the request of the directors, Finbarr O'Connell and Richard Heis, KPMG Corporate Recovery Partners, were appointed joint administrators to David M Aaron (Personal Financial Planners) Limited, trading as the David Aaron Partnership, an independent financial advisory business based in Woburn Sands near Milton Keynes, on December 22, 2003. Finbarr O'Connell, joint administrator and KPMG Corporate Recovery Partner said: "Our priority is to seek a buyer for this business which has a contact list of approximately 150,000, and so far, we have received interest from a number of parties. We hope to be able to draw up a short-list of potential purchasers within the next one to two weeks. "Any client who feels they may have a claim against the company are advised to write to us at the address below, outlining the details of their claims. "The David Aaron Partnership sold financial products to some 30,000 clients on behalf of product providers. The relationship between clients of David Aaron and product providers remain unaffected by the administration process." Potential claimants should write to: Ros Kitley or Tony Oakley KPMG Corporate Recovery 8 Salisbury Square London EC4Y 8BB CONTACT: KPMG Judith Dow Corporate Communications Phone: 0207 694 8584 Mobile: 07786 197718 E-mail: judith.dow@kpmg.co.uk KPMG Press Office: 0207 694 8773 GOVETT STRATEGIC: Appoints RSM Robson Rhodes Joint Liquidators -------------------------------------------------------------- In accordance with rule 4.106 of the Insolvency Rules 1986 notice is hereby given that Simon Peter Bower and Michael John Hore of RSM Robson Rhodes, 186 City Road, London EC1V 2NU were appointed Joint Liquidators of Govett Strategic Trust PLC by the members on December 22, 2003. Notice is hereby given that the creditors of Govett Strategic Trust PLC are required on or before January 31, 2004 to send their names and addresses, with particulars of their debts and claims to the undersigned Simon Peter Bower and Michael john Hore of RSM Robson Rhodes, 186 City Road, London EC1V 2NU the Joint Liquidators of the company, and if so required by notice in writing from the Joint Liquidators either personally or by their solicitors, to come in and prove their debts or claims at such time and place as shall be specified in such notice and in default thereof they will be excluded from the benefit of any distribution made before such debts are proven. Simon Peter Bower and Michael John Hore Joint Liquidators MG ROVER: December Car Sales 27% Down Year-on-year -------------------------------------------------- MG Rover sold 27% fewer cars in December compared to year-ago figures, data from the Society of Motor Manufacturers and Traders show, according to The Telegraph. The company's car sales in Britain was 6,000, down from 8,146 in the same period a year earlier. In November, sales figure dropped by a third. During the past month, MG Rover directors privately warned unions bad publicity was threatening the company's business. But Rod Ramsay, Rover's sales operations director, ruled out this was a consideration when people buy MG Rover cars. MG Rover hit headlines when The Telegraph revealed that its directors had made millions at a time when the company is losing. Mr. Ramsay said: "Primarily [customers] look to the product and the service that dealers can provide with them," according to the report. He attributed the large discrepancy between the sales data to a large fleet sale in December 2002. Car dealers, on the other hand, are split on whether the issues affected sales. WALT DISNEY: Reshuffles Board, Enhances Governance Guidelines ------------------------------------------------------------- The Walt Disney Company (NYSE: DIS) Board of Directors voted unanimously to enhance the company's corporate governance guidelines, including the adoption of strengthened standards relating to the independence of directors, and then performed its annual review of director independence. The guidelines meet or exceed newly adopted New York Stock Exchange requirements and are available in the Corporate Governance section of the company's Investor Relations Web site, http://www.disney.com/investors/. The board also re-elected Senator George Mitchell to a second term as presiding director, modified the charter of the Governance and Nominating committee, adopted a Code of Conduct and Business Ethics for Directors and reconstituted the membership of key board committees. In addition, the board formally welcomed two new independent members, Aylwin Lewis, President, Chief Multibranding and Operating Officer of YUM! Brands, Inc., and John Chen, chairman, CEO and president of Sybase, Inc.; both of whom were elected in 2003. Following amendment of the governance guidelines, the board conducted its annual review of director independence, taking into account directors' relationships with the company or with members of senior management. As a result, the board determined that under the new guidelines, all directors are independent except Michael Eisner, Disney chairman and CEO; Robert Iger, Disney president and COO; and John Bryson. Eisner and Iger are considered inside directors because of their employment as senior executives of the company. Bryson is considered a non- independent outside director for the first time because the level of business between the company and an entity of which his wife is an executive officer exceeded in fiscal year 2003 the financial threshold established by the newly amended guidelines. In taking these actions, the Disney board was advised by Ira Millstein, Esq. of Weil, Gotshal & Manges LLP, a leading authority on corporate governance. The board also took action to re-elect Senator George Mitchell as Presiding Director for 2004-05. In that capacity, he will continue to chair executive board sessions of independent and non-management directors and perform other tasks set forth in the governance guidelines or requested by the Board. Later this month, the board will nominate a slate of directors to stand for election at the company's annual meeting of shareholders in March. The annual meeting will be held on March 3, 2004 in Philadelphia. Directors Thomas Murphy and Raymond Watson will retire at the expiration of their present terms in March. The company's directors also took action to reconstitute the Audit, Compensation and Governance and Nominating committees in accordance with the principles in the company's corporate governance guidelines. Effective immediately, the committee memberships are: Audit Robert Matschullat (Chair) John Chen Monica Lozano Leo O'Donovan, S.J. Compensation Judith Estrin (Chair) Robert Matschullat Leo O'Donovan, S.J. Governance and Nominating Monica Lozano (Chair) Judith Estrin Aylwin Lewis The board also gave final approval to revisions of the charter of the Governance and Nominating Committee intended to ensure its compliance with applicable regulatory requirements. The board had earlier approved revisions to the charters of the Compensation and Audit committees. Finally, the board adopted a Code of Business Conduct and Ethics for Directors. The Code is intended in part to implement requirements of the New York Stock Exchange's recently revised listing standards as well as the requirements of the Sarbanes-Oxley Act of 2002. The revised charters and the Code will be made available through the corporate governance section of the company's Investor Relations web site shortly. Separately, the board also confirmed its intent to add another independent member over the next 6 -12 months. ********* 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. 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