/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/040113.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 Tuesday, January 13, 2004, Vol. 5, No. 8 Headlines A U S T R I A ERBER: Insolvent Brandy Maker Split into Three, Sold Separately F R A N C E ALSTOM SA: Completes Sale of T&D Activities to Areva G E R M A N Y BORUSSIA DORTMUND: Liquidity Problems Threaten Existence DRESDNER BANK: Redeems Additional US$8 Million 2008 Notes EM.TV & MERCHANDISING: Bondholders Approve Restructuring Plan GRUNDIG AG: Profitable Business Sold to Cucina Holding H U N G A R Y MALEV HUNGARIAN: Seeks to Save HUF540 Million through Aeroplex MSC HUNGARY: Another 450 Workers to Receive Redundancy Notices I T A L Y GRANT THORTON: Moves to Protect Name, Drops Local Unit from Roll PARMALAT FINANZIARIA: Investigators Grill CEO of Venezuelan Unit PARMALAT FINANZIARIA: Got BRL188 Mln from Brazilian Unit in 2003 PARMALAT FINANZIARIA: Tanzis First to Go in Board Shuffle PARMALAT FINANZIARIA: Capitalia Sets Aside EUR60 Mln for Payout PARMALAT SPA: Remaining Parma A.C. Board Members Quit L U X E M B O U R G MILLICOM INTERNATIONAL: To Issue Senior Convertible PIK Notes N E T H E R L A N D S KONINKLIJKE AHOLD: Sales Hit by Lower Currency Exchange Rates PETROPLUS INTERNATIONAL: Sells Tango Unmanned Petrol Stations ROYAL PHILIPS: Boosted by Increased Demand for Flat-screen TVs U N I T E D K I N G D O M ABBEY NATIONAL: Sells Private Equity Portfolio at Huge Discount ANGLO AMERICAN: Scheme Payment Increases by 5 Points to 85% BRITISH ENERGY: Issues December Output Statement COUNTY BOOKSHOPS: Sells Books at 'Fire sale' Prices EUROTUNNEL PLC: Makes Improvements to Boost Freight Activity INTERTEK GROUP: Work in Nigeria Resumes KINGSWAY INTERNATIONAL: To Install New Board of Trustees Soon LEEDS UNITED: Former Chairman Gets Backing for Bid, Report Says NIMBUS LABORATORIES: Innovation in Soap Product Kills Business SPORTINGBET PLC: To Present Q3 Results to Analysts January 29 WATFORD LEISURE: Non-executive Director Resigns * Large Companies with Insolvent Balance Sheets ********* ============= A U S T R I A ============= ERBER: Insolvent Brandy Maker Split into Three, Sold Separately --------------------------------------------------------------- Insolvent Austrian brandy producer, Erber, was sold for an undisclosed sum to three separate companies, according to just- drinks.com. Austrian Pletzer family holding, drinks retailer, Morandell, and meat products maker Handl bought a third of the company each, the report said. The deal saved all the company's 10 employees. Manfred Pletzer and Mario Morandell have been appointed new chief executives. The responsibilities for the company's domestic and international sales have also been divided between the two of them. The new owners expect to revive the company's sales, expecting EUR3 million in the medium term, and EUR2 million in 2004. Erber filed for insolvency in April 2003 with debts amounting to EUR4 million (US$5.04 million), according to the report. =========== F R A N C E =========== ALSTOM SA: Completes Sale of T&D Activities to Areva ---------------------------------------------------- Alstom and Areva signed a binding agreement for the sale and purchase of ALSTOM's Transmission & Distribution (T&D) businesses on September 26, 2003. Pursuant to the authorizations received from the European Commission and from the U.S. anti-trust authorities, Alstom has now completed the sale of virtually all of its T&D activities to Areva. These transactions cover the sale of businesses in some 40 countries, which represent 95% of ALSTOM's T&D activities. The transfer to Areva of the remaining T&D activities will be progressively completed once the relevant local regulatory and other authorizations are obtained. The enterprise value of EUR950 million has been adjusted, as previously agreed, on the basis of working capital and other cash related movements between signing and completion of the transaction. The provisional estimate of these adjustments is EUR30 million. Alstom has received total net cash proceeds of EUR815 million, and a further EUR105 million has been paid to an escrow account by Areva. The escrowed amount is expected to be released during the first half of calendar year 2004, as the remaining T&D activities are transferred to Areva and the December 31, 2003 audited accounts of T&D are finalized. Pending their transfer to Areva, Alstom will continue to manage its remaining T&D activities in consultation with Areva. CONTACT: ALSTOM S.A. Press relations G. Tourvieille/S. Gagneraud Phone: +33 1 47 55 23 15 E-mail: internet.press@chq.alstom.com Investor relations E. Chatelain Phone: +33 1 47 55 25 33 E-mail: investor.relations@chq.alstom.com ============= G E R M A N Y ============= BORUSSIA DORTMUND: Liquidity Problems Threaten Existence -------------------------------------------------------- The future of Borussia Dortmund, the only German premiere soccer club with a stock exchange listing, looks hazy after a difficult season. Borussia coach Matthias Sammers admitted last month the club is in "the most difficult situations" since January 1993, according to Deutsche Welle. The 2002 league champion failed to qualify for the Champions League, losing the estimated EUR12 million (US$15.3 million) in revenues from the matches. Reports say it is considering borrowing around EUR100 million by issuing debt to support its existence. General manager Michael Meier has admitted Borussia had been talking with an Anglo-American investment group Schechter & Co. for the past year about possibly pursuing the debt issue, but Mr. Meier and Dortmund President Gerd Niebaum denied there was liquidity problem in the club. Reports also say the club could incur losses of EUR25 million this season. What's unfortunate is, it can't count either on sporting success to help it this year due to a number of injuries suffered by key players. Borussia listed on the stock market in October 2000; buyers of its shares have lost around 70% of their investment, the report said. DRESDNER BANK: Redeems Additional US$8 Million 2008 Notes --------------------------------------------------------- Further to an announcement made by the Issuer on October 1, 2003, the Issuer wishes to advise that on October 15, 2003 Dresdner Bank AG bought back a further US$8 million of the Notes. The issuance size has therefore been reduced to US$16 million. ***** Dresdner Bank said in October that, further to the issuance of the US$32,000,000 Financial Basket Credit Linked Notes due January 2008 on January 16, 2003 and on September 26, 2003, Dresdner Bank AG bought back US$8 million of the Notes. The issuance size has therefore been reduced to US$24 million. CONTACT: DRESDNER KLEINWORT WASSERSTEIN Axel Peter Phone: + 49 69 713 14127 EM.TV & MERCHANDISING: Bondholders Approve Restructuring Plan ------------------------------------------------------------- Holders of the EM.TV & Merchandising AG EUR400 million 4% convertible bonds of 2000/2005, approved Friday, with immediate effect, resolutions stipulating: (a) Reduction of the annual interest due on the convertible bonds between February 16, 2003 and February 15, 2006 to 0%. (b) Postponement of the redemption date provided in section 3, para.1 of the terms of the convertible bonds to January 9, 2007. (c) Waiver of interest accrued under the terms of the convertible bonds between the previous interest payment date and the date of the bondholder meeting, and waiver of all termination rights or any other rights potentially arising from the restructuring of the convertible bonds, or the preparation thereof. The resolutions are subject to a condition subsequent that the restructuring of the convertible bonds does not take place. About 75% of the bondholders were present at the meeting; more than 97% of the bondholders present approved the resolutions. CONTACT: EM.TV & MERCHANDISING AG Sabine Lais Phone: +49/ 89/ 99 500 461 GRUNDIG AG: Profitable Business Sold to Cucina Holding ------------------------------------------------------ Induc AG, Baldham at Munich, through its subsidiary Cucina Holding GmbH, has acquired 100% of the outstanding shares of Grundig Business Systems GmbH on December 23, 2003. The company was purchased from Dr. Siegfried Beck, liquidator of the insolvent Grundig AG. Originally, Grundig Business Systems was a business unit of Grundig AG before it became transformed into a separate legal entity in 2001. Unlike Grundig AG, Grundig Business Systems was at no point in time insolvent. The company employs some 185 employees in Bayreuth, Fuerth and several international subsidiaries. Grundig Business Systems is market leader in the field of professional dictation systems in Germany, U.K., Scandinavia and Benelux and an important player in the remaining European markets. Its strong market position is based on the "Steno- Technologie" developed by Grundig and will be continued by its digital dictation systems. Dictation systems of Grundig Business Systems are developed and produced in Germany. Customer orientation and rapid market response are making Grundig Business Systems as first choice for managers, in doctors' practices and hospitals, law firms, for tax advisors, auditors, journalists and amongst all others, who appreciate professional and innovative technology products. INDUC AG acquires as majority investor midsize ("mittelstandische") companies in special situations and grants specialized management services to its portfolio companies. Objective is always to continue the business and to ensure a value-oriented development. Acquired companies are actively supported by the interdisciplinary Induc Management Team, which has many years of executive management experience in various industries. Induc AG acquires Grundig Business Systems GmbH in order to continue the business successfully, actively support its management and further develop the company. Dipl. Ing. Juergen Rilling (35) and Dr. Frank Toefflinger (43) have been appointed as managing directors. Juergen Rilling holds a masters degree in both, mechanical engineering and business administration. He worked before as a top management consultant and was responsible for corporate development within an international group. Dr. rer. pol. Frank Toefflinger is lawyer, founder of INDUC AG and has a broad and long-term international experience in managing midsize ("mittelstandische") companies, in the field of restructuring of corporations and in the M&A business. Liquidator Dr. Siegfried Beck is pleased with the sale of Grundig Business Systems. He said: "We have reached another important milestone. We succeeded in creating a good basis for saving jobs and the location. I am convinced that INDUC AG will take over Grundig Business Systems with overwhelming force and will put the company on the right track for a successful future." CONTACT: INDUC AG Juergen Rilling Dr. Frank Toefflinger INDUC AG Wankstrabe 25 85598 Baldham at Munich Phone: +49 8106-995838-0 Fax: 49 8106-995837-9 E-mail: info@induc.de Homepage: http://www.induc.de ============= H U N G A R Y ============= MALEV HUNGARIAN: Seeks to Save HUF540 Million through Aeroplex -------------------------------------------------------------- Aeroplex Kft, the aircraft servicing company of Malev Hungarian Airlines will be restructured under its parent company's effort to save cost, Budapest Business Journal reported Friday. Malev accumulated HUF8.7 billion net losses in the first nine months of 2003, which was mainly due to the company's own capital falling from last year's HUF9.1 billion to HUF355 million. It is aiming to save HUF540 million annually. Aeroplex Kft lost HUF859 million in 2003, but is now expected to break even this year, Chief Financial Officer Viktor Hajso said. According to him, Aeroplex has signed a five-year contract with an unnamed partner for maintenance and hangar service and is expected to sign another similar contract at the end of January. Mr. Hajso is also Malev's head of the technical unit. MSC HUNGARY: Another 450 Workers to Receive Redundancy Notices -------------------------------------------------------------- Footwear manufacturer, MSC Hungary Kft, will axe 450 workers at its cutting and stitching operations in Szombathely, western Hungary, come spring, according to just-style.com. MSC Economic Director Margit Nemeth said the move follows the suspension of footwear upper production due to increased competition from Ukrainian and Indian manufacturers. Despite the redundancies, the company intends to keep production at 1.2 million pairs of shoes annually. MSC Hungary Kft had already axed 1,370 jobs in 2003 when it closed factories in Kormend, Oriszentpeter and Beled due to the industry's overall decline. ========= I T A L Y ========= GRANT THORTON: Moves to Protect Name, Drops Local Unit from Roll ---------------------------------------------------------------- Grant Thornton International announced that it has terminated its relationship with member firm, Grant Thornton S.p.A., in Italy with immediate effect. The decision has been taken by Grant Thornton International during the course of its ongoing internal investigation into Grant Thornton S.p.A. and the Parmalat matter. Said David McDonnell, chief executive of Grant Thornton International: "Our first responsibility is to our clients around the world. They need to be assured of our commitment to maintain the reputation and integrity of Grant Thornton International. As a result of our ongoing investigation it is clear that Grant Thornton S.p.A. will not be able to operate in the foreseeable future in an effective way to protect the reputation of the Grant Thornton International name and the reputation of the other independent firms in the Grant Thornton International network. "Grant Thornton S.p.A. has been unable to provide sufficient assurances or access to the appropriate information and people in an acceptable timeframe. We have lost confidence in Grant Thornton S.p.A. and are therefore acting clearly and decisively to protect our clients and the reputation of all of the other independent firms in the international network." At this stage, Grant Thornton International is not in a position to disclose further details. Grant Thornton International will continue to cooperate with the authorities. The expulsion of Grant Thornton S.p.A. from the Grant Thornton International network of independent member firms is effective immediately. It means: (a) Grant Thornton S.p.A. can no longer operate as part of the international network and cannot hold itself out as having any ongoing connection with Grant Thornton International or other independent Grant Thornton International member firms around the world (b) Grant Thornton S.p.A. must, with immediate effect, cease to use the Grant Thornton name. (c) No further work will be performed by independent Grant Thornton International member firms on behalf of Grant Thornton S.p.A. (d) Grant Thornton International is taking immediate action to provide alternative support for international clients of its other member firms doing business in Italy. CONTACT: GRANT THORNTON INTERNATIONAL Nan Williams, Four Communications plc Phone: +44 870 420 3256 Mobile: +44 7774 741 518 PARMALAT FINANZIARIA: Investigators Grill CEO of Venezuelan Unit ---------------------------------------------------------------- Italian prosecutors started questioning during the weekend the former head of Parmalat's Venezuelan subsidiary, Giovanni Bonici, over his relation to the massive fraud at food group Parmalat, judicial sources said, according to Agence France- Presse. Mr. Bonici, the ninth person implicated in the scandal at the Italian company, turned himself to Italian authorities last week after an international arrest was put out for him. Separately, Luca Sala, a former Bank of America employee, who is also under investigation for his role in the Parmalat affair, claimed in a newspaper interview he and the U.S. bank were "tricked" by Parmalat, according to The Scotsman. He also denied rallying financial markets to support the firm's securities. He condemned the company for its wrongdoings, but admitted: "when you have a client like Parmalat, which is bringing in all that money and has industries around the world, you don't exactly ask them to show you their bank statements." Bank of America is accused of helping Parmalat despite knowledge of its financial problems. The former head of the U.S. bank's Italian corporate finance division also worked as consultant for Parmalat last year. In related developments, Parmalat founder Calisto Tanzi told prosecutors that banks were advised of the company's dire straits long before it crashed under a burgeoning debt-load. He said he had talks with Banca Intesa in meetings with officials of the Italian bank at the beginning of December. It was also during this time that he asked for a loan to redeem bonds due that month. Meanwhile, talks to secure up to EUR100,000,000 or US$126,000,000 in financing from Parmalat's banks, including Banca IMI, Banca Intesa S.p.A., Capitalia S.p.A. and Unicredito S.p.A., are currently ongoing. The funds will be used to support Parmalat's operating costs, including payment for wages and suppliers. PARMALAT FINANZIARIA: Got BRL188 Mln from Brazilian Unit in 2003 ---------------------------------------------------------------- Suppliers of Parmalat Brazil now know why the company failed to pay its obligations last year: it diverted funds to help its ailing Italian parent, Folha de S. Paulo newspaper said recently. The second biggest milk buyer in the country, Parmalat Brazil reportedly transferred BRL188 million to the Italian dairy group through its private Brazilian controlling company, Parmalat Participacoes, which doesn't publish accounts. The data was taken from Parmalat Brasil's balance sheet for the year ending September 30, 2003. Accordingly, Parmalat Brazil also paid BRL10 million to Parmalat units in Argentina, Uruguay, Colombia and Ecuador in 2003. "As a result the company (Parmalat Brasil) was unable to pay debts owed to local suppliers," the report said. Parmalat pledged to pay its local suppliers by mid-January. Parmalat Brazil's president will be off to Italy this week to urge that no cash be transferred from Brazil to help cover Parmalat's losses, the report said citing Brazil's Agriculture Minister Roberto Rodrigues. PARMALAT FINANZIARIA: Tanzis First to Go in Board Shuffle --------------------------------------------------------- A total management overhaul is set to happen at collapsed Italian food group, Parmalat, this week, the Telegraph said, citing unnamed sources. Enrico Bondi, the turnaround expert, who also became the chief executive of the company when founder Calisto Tanzi resigned from the company, is expected to purge the board as he tries to put order in the scandal-hit group. The source said: "Bondi has kept a number of people on at the company to get as much information out of them as possible, but we will now begin to see him clearing out the old guard and starting the clean-up." The shakeup will see Stefano Tanzi, the son of the founder leave first. He has already been ousted from the company's football club, Parma FC, but continues to sit on the board of Parmalat S.p.A. and its parent company, Parmalat Finanziaria. Mr. Tanzi's sister Francesca, head of the family-run tourism firm Parmatour, could also be forced out, according to the report. Their father was arrested in December for fraudulent activities, including siphoning off up to EUR500 million into companies controlled by his private family interests. The senior Mr. Tanzi remains uncharged yet. PARMALAT FINANZIARIA: Capitalia Sets Aside EUR60 Mln for Payout --------------------------------------------------------------- Capitalia, the Italian bank with the largest lending exposure to Parmalat, plans to reimburse its retail clients' investment in Parmalat bonds, according to the Financial Times. Parmalat investors are estimated to have lost EUR10 billion from in investments in bonds, shares and derivatives tied to Parmalat. Matteo Arpe, Capitalia's chief executive, said the move should not be understood as "an admission of guilt," rather as an act of responsibility towards clients. Capitalia stands to spend between EUR40 million to EUR60 million (US$51 million-EUR60 million) to reimburse investors. He said the bank will recover the money used in this payout through legal actions. Aside from Capitalia, other Italian banks such as Intesa and Sanpaolo are also considering reimbursing their clients, the report said. Capitalia's lending exposure to Parmalat stands at EUR393 million. PARMALAT SPA: Remaining Parma A.C. Board Members Quit ----------------------------------------------------- Parmalat Finanziaria S.p.A., under Extraordinary Administration, communicates that the shareholder meeting of Parma Associazione Calcio S.p.A. -- an indirect subsidiary owned via Parmalat S.p.A., also under Extraordinary Administration -- took place Friday. The Board of Directors of Parma A. C. S.p.A. noted that, in light of recent events involving the Parmalat Group, a number of aspects relating to the company's financial accounts for the year ended June 30, 2003 and its economic and financial situation as at September 30, 2003, are still under review. Therefore the Board of Directors of Parma A. C. S.p.A. has asked that the shareholder meeting suspend any decision in this regard until these reviews have been completed. The shareholder meeting resolved to resume its work on January 14, 2004. During the meeting Stefano Tanzi and Paolo Tanzi presented their resignations as Board Members to take effect at the conclusion of the shareholder meeting of January 14, 2004. Fabio Arpe, Giorgio Scaccaglia and Fausto Tonna had previously resigned as Board Members of Parma A. C. S.p.A. As a result, the Board of Directors of Parma A. C. S.p.A. has ceased to exist. =================== L U X E M B O U R G =================== MILLICOM INTERNATIONAL: To Issue Senior Convertible PIK Notes ------------------------------------------------------------- Millicom International Cellular S.A. announces that on January 8, 2004, it filed a preliminary registration statement on Form F-3 with the U.S. Securities and Exchange Commission in respect of its 2% Senior Convertible PIK Notes due 2006 and the shares of Millicom common stock issuable upon conversion of the Notes for resale. Millicom will not receive any proceeds from the resale of the Notes or underlying common stock by such holders. The registration statement has not yet been reviewed by the SEC and, accordingly, the information in the registration statement is not yet complete and may be changed. Prior to the effectiveness of the registration statement, the Notes and the common stock issuable upon conversion of the Notes may not be offered, sold or otherwise transferred except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933, as amended and applicable state securities laws. The Notes were originally issued in May 2003 in an exchange offer and consent solicitation transaction exempt from the registration requirements of the Securities Act. The registration statement was filed to comply with Millicom's obligations under the indenture governing the Notes. CONTACT: MILLICOM INTERNATIONAL CELLULAR S.A., Luxembourg Marc Beuls President and Chief Executive Officer Phone: +352 27 759 101 SHARED VALUE LTD. London Andrew Best Investor Relations Phone: +44 20 7321 5022 ===================== N E T H E R L A N D S ===================== KONINKLIJKE AHOLD: Sales Hit by Lower Currency Exchange Rates ------------------------------------------------------------- (a) Consolidated 2003 sales amounted to EUR56.1 billion, a decline of 10.5% compared to previous year; sales excluding currency impact increased by 2.7% (b) Consolidated 4Q sales amounted to EUR12.7 billion, a decline of 10.8% compared to the same quarter in previous year; sales excluding currency impact increased by 0.7% (c) Consolidated 2003 results expected to be presented on April 19, 2004 Ahold announced Friday consolidated net sales for 2003 (52 weeks through December 28, 2003) of EUR56.1 billion, a decline of 10.5% compared to EUR62.7 billion generated in 2002. The overall impact of acquisitions and divestments on net sales growth in 2003 was 0.7% positive. In the fourth quarter (12 weeks through December 28, 2003), sales amounted to EUR12.7 billion, a 10.8% decrease over the EUR14.3 billion generated in the same quarter in 2002. The overall impact of acquisitions and divestments on net sales growth in the fourth quarter was negative 1.4%. Sales were significantly impacted by lower currency exchange rates, in particular that of the U.S. Dollar; sales excluding currency impact increased by 2.7% in 2003 and 0.7% in the fourth quarter. The sales numbers presented in this press release are preliminary and unaudited. To view full report: http://bankrupt.com/misc/Ahold_2003_Sales.pdf CONTACT: KONINKLIJKE AHOLD N.V. Albert Heijnweg 1, Zaandam P.O. Box 3050, 1500 HB Zaandam The Netherlands Phone: +31 (0)75 659 5720 Fax: +31 (0)75 659 8302 Homepage: http://www.ahold.com PETROPLUS INTERNATIONAL: Sells Tango Unmanned Petrol Stations ------------------------------------------------------------- Petroplus International N.V. and Kuwait Petroleum Nederland B.V., a subsidiary of Kuwait Petroleum Corporation, have signed a Memorandum of Understanding regarding the sale of Tango, under which Petroplus has given Kuwait Petroleum exclusivity for a limited period. During this period both parties will aim to reach agreement on the final terms of the sale. Marc Schroder, Director of Tango, said, "We are looking forward to working with our new shareholder in further expanding the Tango brand. I am convinced that Kuwait Petroleum will allow us to grow even more rapidly and serve even more customers with our concept of quality fuel at the lowest prices." Formal completion of the transaction shall be subject to obtaining regulatory approval from the relevant competition authorities. CONTACT: PETROPLUS INTERNATIONAL P.O. Box 85002 3009 MA Rotterdam The Netherlands Phone: +31 (0)10 242 5900 Fax: +31 (0)10 242 6052 E-mail: IR@petroplus.nl Website: Home Page: http://www.petroplusinternational.com Investor Relations Martijn Schuttevaer Phone: + 31 10 242 5900 ING Financial Advisor to Petroplus James Lawrie Phone: + 31 20 563 8537 Kuwait Petroleum: Business Communications Guy Gogne Phone: + 32 32 413 300 ROYAL PHILIPS: Boosted by Increased Demand for Flat-screen TVs -------------------------------------------------------------- Royal Philips Electronics experienced increased demand for consumer electronics, particularly flat-screen televisions, during the holiday season, Chief Executive Gerard Kleisterlee said. This is as the Consumer Electronics Association predicts that U.S. electronics manufacturer's sales to retailers and other resellers will increase by 5% to US$101 billion this year. The group said, further, the 2004 sales increase will accelerate from a 2% rise to US$96.3 billion in 2003. Philips is "on track" to report a profit for the fourth quarter, Mr. Kleisterlee told Bloomberg News in an interview during Consumer Electronics Show in Las Vegas. The company will report earnings on February 10. But he also said they face challenge in fighting off rivals that "try to boost sales by competing on price in an industry where profit margins are already thin." The company is currently trying to cut cost to revive earnings hurt by competition from Asian electronic makers, lower chip sales, and drop in dollar against the euro. It is aiming at raising operating margin in the consumer electronics unit to 2% to 2.5%, and cutting cost at its electronics business by EUR400 million. =========================== U N I T E D K I N G D O M =========================== ABBEY NATIONAL: Sells Private Equity Portfolio at Huge Discount --------------------------------------------------------------- Abbey National sold its stakes in 41 private equity funds and direct shareholdings in 16 unquoted European firms to Coller Capital's International Partners IV fund. The company refused to disclose the sale price ahead of the reporting of its full- year results next month, but it is understood the private equity portfolio was divested for only EUR350 million, including a GBP165 million secured loan note. The purchase price is GBP59 million lower than the value of the funds in Abbey's balance sheet at the end of September, after provisions and prior capital returns; and less than half of the GBP748 million Abbey National invested as part of its venture into wholesale banking. The division racked up bad debts that resulted to the resignation of Abbey Chief Executive Ian Harley, and a first-time loss of GBP984 million for the company in 2002. Abbey National is currently unwinding its wholesale banking business to focus on retail financial services. The move forced the company to record another GBP144 million loss in the first half of 2003. ANGLO AMERICAN: Scheme Payment Increases by 5 Points to 85% ----------------------------------------------------------- The Joint Scheme Administrators of Anglo American Insurance Company (Anglo), Tony McMahon and John Wardrop, partners in KPMG Insurance Solutions, have increased the Scheme Payment Percentage to creditors from 80 to 85%, one of the highest Scheme Payment Percentages for any insolvent London Market insurance company. This is the second increase in the Scheme Payment Percentage within a year, following the increase from 60 to 80 per cent in February 2003. Asset realizations now total in excess of US$300 million. Over US$160 million has now been distributed to creditors and it is estimated that a further $15 million will be distributed in the course of 2004. Tony McMahon commented: "We are very pleased to announce a further increase in Anglo's payment percentage to 85%, which now makes it the highest payment percentage of all London market insurance companies subject to insolvency proceedings. This increase has been made possible by our continued success in realizing Anglo's assets and establishing its liabilities and our commitment to distributing these assets to creditors as soon as possible. "It is hoped that a final distribution may be made to creditors within the next two years which means that both the level of payments and the timescale to final distribution contrast very favorably with those in many other insolvent schemes." CONTACT: KPMG Judith Dow Corporate Communications Phone: 020 7694 8584 BRITISH ENERGY: Issues December Output Statement ------------------------------------------------ A summary of net output from British Energy's U.K. power stations in December is given in the table below, together with comparative data for the previous financial year: 2002/03 2003/04 December Year to Date December Year to Date Load Load Load Load Output Factor Output Factor Output Factor Output Factor (TWh) (%) (TWh) (%) (TWh) (%) (TWh) (%) Nuclear 5.91 83 45.93 73 5.18 73 47.99 76 Coal 0.85 59 3.80 30 0.91 63 4.77 37 Nuclear Planned Outages (a) Low load refueling was carried out on both reactors at Torness and on one reactor each at Hunterston B and Heysham 2. (b) A refueling outage was completed on one reactor each at Dungeness B and Hartlepool. Unplanned Outages (a) Both units at Heysham 1 remained shutdown following the failure of a seawater cooling pipe. We believe that the outage on both units is likely to continue into mid-February 2004 as previously advised. AmerGen (a) The sale of British Energy's 50% interest in AmerGen to Exelon was completed on December 22. The annual output from AmerGen up to December 21 was 14.1 TWh. CONTACT: BRITISH ENERGY Andrew Dowler Phone: 0207 831 3113 (Media Enquiries) Paul Heward Phone: 01355 262 201 (Investor Relations) COUNTY BOOKSHOPS: Sells Books at 'Fire sale' Prices --------------------------------------------------- Following the appointment of administrators to County Bookshops Ltd, a sale has been launched at the chain's remaining 43 County Bookshops and GPB1 Book Box stores, allowing local customers to snap up quality books at bargain prices. Books with a price tag of GPB20 are now being sold for less than GPB5, with many top best sellers and specialized titles at even lower prices. Richard Hill, joint administrator and KPMG Corporate Recovery partner, commented: "We are hoping to sell the remaining stores of County Bookshops Ltd as a going concern. As part of this process we need to ensure that as much stock as possible has been sold, to make the company as attractive as possible to a potential buyer, which is why we have instigated the huge discounts across all stock lines." The sale is currently effective in the following shops throughout the U.K.: GPB1 Book Box BLACKPOOL - 31 Corporation Street, Blackpool BOGNOR REGIS - 40 London Road, Bognor Regis BRADFORD - 27 Broadway, Bradford ELLESMERE PORT - 41 Mercer Walk, Ellesmere Walk, Ellesmere Port HARLOW - Unit 2, The Harvey Center, Harlow HARTLEPOOL - Unit 86, Middleton Grange Shopping Center, Hartlepool LINCOLN - 2 Cornhill Pavement, Cornhill, Lincoln LONG EATON - 16 Market Place, Long Eaton ROTHERHAM - Unit 15, College Walk, Rotherham SLOUGH - Unit 29, The Observatory Shopping Centre, Slough STOCKTON - 1A Castlegate Shopping Centre, Stockton SWINDON - 8 Havelock Square, Swindon TAMWORTH - Unit 8, 12 Ankerside, Tamworth TORQUAY - Unit 3, Fleet Walk Shopping Centre, Torquay County Bookshops ALDERSHOT - 17/18 High Walk, Aldershot BASILDON - Unit 12, Eastgate Centre, Basildon BATH - 3 Burton Street, Bath BLACKBURN - 10 Lord Street, Blackburn BROMLEY - 46 The Glades, Bromley CHELMSFORD - Unit 23, High Chelmer Shopping Centre, Chelmsford CHESTER - 26 Eastgate Street, Chester DERBY - 6 Crown Walk, Derby DONCASTER - 30/32 West Mall, Frenchgate Shopping Centre, Doncaster HATFIELD - Unit 12, The Galleria, Hatfield HEMEL HEMPSTEAD - Unit 40, The Marlows Shopping Centre, Hemel Hempstead HOUNSLOW - Unit 26, The Treaty Centre, Hounslow HULL - 49/50 Whitefriargate, Hull LAKESIDE - 204 Thurrock, Lakeside Shopping Centre, West Thurrock LEICESTER - 6/7 Charles Mall, Haymarket Shopping Centre, Leicester MANCHESTER - Unit 53, Halle Square, Lower Mall, Arndale Centre, Manchester MEADOWHALL - 37 High Street, Meadowhall Centre, Sheffield MERRY HILL - L47, Merry Hill Centre, Dudley NOTTINGHAM - 41B Broad Walk, Broadmarsh Centre, Nottingham NOTTINGHAM - 145/146 Broad Walk, Nottingham PLYMOUTH - 38 New George Street, Plymouth READING - 42/43 Broad Street Mall, Reading RUNCORN - 46 Forest Walk, Halton Lea Shopping Centre, Runcorn SOLIHULL - Unit 11, Poplar Way Precinct, Solihull TRAFFORD CENTRE - Unit 80, Upper Floor, The Trafford Centre, Manchester WARRINGTON - 33 Old Market Place, Golden Square, Warrington WATFORD - Unit 27, The Harlequin Centre, Watford WELLINGBOROUGH - 14/15 Corn Lane, Wellingborough WORCESTER - 75 High Street, Worcester ***** Richard Hill and David Crawshaw were appointed joint administrators to County Bookshops Ltd. December 29, 2003. CONTACT: KPMG Rachael Halliday, PR manager Phone: 0117 905 4373 Mobile: 07747 102909 E-mail: rachael.halliday@kpmg.co.uk EUROTUNNEL PLC: Makes Improvements to Boost Freight Activity ------------------------------------------------------------ Eurotunnel, the deeply indebted operator of the Eurostar rail service, is on a frenzied drive to boost its finances. The Observer said on Sunday the board has approved a GBP5 million- scheme to improve Eurotunnel's freight services, with the goal set on encouraging new business into the GBP10 billion- tunnel. The latest scheme includes building the first terminal in Britain big enough for European trains. The terminal would be an attractive alternative to rail freight users who have to switch to lorries in France, cross the Channel by rail or ferry, and continue the journey in England, where bigger Continental rail containers cannot fit under the smaller tunnels and bridges. Another solution to the company's woes is to encourage development in northern France to stimulate demand for commuter services to London and Kent. The terminal, at Folkstone, in Kent, near the mouth of the tunnel, will mean trains from Europe will not have to unload on to ferries for the crossing from France to the U.K. Eurotunnel has debts of GBP6 billion and faces a further significant fall in income at the end of 2006 when an agreement by the U.K. and French governments to guarantee a minimum income from rail services ends. It is expected to announce that income fell in all four quarters last year. INTERTEK GROUP: Work in Nigeria Resumes --------------------------------------- Intertek, the global testing, inspection and certification company, announces that within the FTS division the suspension of the Nigerian contract reported in our pre-close trading statement on December 2, 2003 has been lifted. It is expected work will be restored to normal levels by the start of February. The longer-term future of this contract remains uncertain and the restructuring of the division will continue. The next update to the market will be when we report Preliminary Results on March 8, 2004. About Intertek Intertek is a leading international testing, inspection and certification organization which assesses customers' products and commodities against a wide range of safety, regulatory, quality and performance standards and in some cases, certifies the management systems of customers. Intertek has over 270 laboratories with more than 11,000 people around the world and is increasingly undertaking outsourced testing work for its customers. CONTACT: INTERTEK GROUP Aston Swift, Treasurer and Investor Relations Phone: +44 (0) 20 7396 3400 E-mail: aston.swift@intertek.com TULCHAN COMMUNICATIONS Katie Macdonald-Smith Phone: +44 (0) 20 7353 4200 E-mail: kmacdonald-smith@tulchangroup.com Home Page: http://www.intertek.com KINGSWAY INTERNATIONAL: To Install New Board of Trustees Soon ------------------------------------------------------------- Finbarr O'Connell, KPMG Corporate Recovery Partner and the interim manager of KICC said: "The interim managers are ready to put in place a new board of trustees to take over the running of KICC. The trustees have all been approved by KICC. "We are waiting for a number of key meetings to take place to ratify the board. We welcome this development after a year of working with KICC, having overcome many difficult issues along the way. We are hopeful that we can now proceed as quickly as possible to bring this matter to a swift conclusion for which we rely on the support of KICC, its members and its new trustees." ***** Interim Manager, Finbarr O'Connell, was appointed to KICC under an Order issued by the Charity Commissioners on November 27, 2002. CONTACT: KMPG Judith Dow, KPMG Corporate Communications Phone: 0207 694 8584 Mobile: 07786 197718 E-mail: judith.dow@kpmg.co.uk KPMG Press Office Phone: 0207 694 8773 LEEDS UNITED: Former Chairman Gets Backing for Bid, Report Says --------------------------------------------------------------- Retail entrepreneur Philip Green has reportedly agreed to support Allan Leighton's bid for troubled Premiership football club Leeds United, according to BizWorld. The former deputy chairman of Leeds plans to offer no more than 5p per share, or GBP20 million for the cash-strapped club. He has until January 19 to offer a full bid, though he and Chief Executive Trevor Birch may ask the creditors to extend the deadline. With the rival offer from former Leeds chairman Professor John McKenzie still unclear, Mr. Leighton's proposal appears to be the next possible solution for the club, observers say. Leeds United is saddled with GBP80 million in debt. NIMBUS LABORATORIES: Innovation in Soap Product Kills Business -------------------------------------------------------------- A total of 69 blind and partially sighted workers are likely to lose their jobs when the soap factory they work for closes on March 26, Ananova news agency reported. Nimbus laboratories, the Northampton-based soap factory that employs blind and disabled workers, is being forced to close because of the fall in demand for bar soaps. Managing Director Keith Percival was quoted as saying: "People just don't use soap any more. If you look around almost everyone uses liquid soap, not the traditional bars." He said an attempt to branch out into liquid soap was deemed unsuccessful because they "just can't be competitive enough." Nimbus makes a wide range of toiletries under its own brand as well as products for major high street chains such as Boots and Sainsbury's. CONTACT: NIMBUS LABORATORIES LTD Lower Farm Road Moulton Park Industrial Estate Northampton NN3 6XF United Kingdom Phone: (01604) 646411 Fax: (01604) 647375 Homepage: http://www.nimbus-labs.co.uk SPORTINGBET PLC: To Present Q3 Results to Analysts January 29 ------------------------------------------------------------- Sportingbet Plc will be announcing its third quarter and cumulative results for the nine months ended December 31, 2003 on Thursday January 29, 2004. There will be a presentation for analysts at Dresdner Kleinwort Wasserstein, 20 Fenchurch Street, London EC3 at 09.00. CONTACT: SPORTINGBET PLC Andrew McIver Phone: 020 7251 7260 IR Focus Neville Harris Phone: 020 7861 3894 (analysts) SMITHFIELD George Hudson Phone: 020 7903 0669 (press) WATFORD LEISURE: Non-executive Director Resigns ----------------------------------------------- Watford Leisure announces that Michael Sherwood has resigned his position as non-executive director of the Company and its subsidiary Watford Association Football Club Limited with effect from January 10, 2004. ***** The company said in December its loss for the year was GBP10.3 million (2002: GBP6.9 million loss) based on turnover of GBP8.7 million (2002: 16.8 million). The decrease in revenues in the year was due primarily to the end of its entitlement to Premier League parachute payments and the loss of income from the ITV Digital Television contract. * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------ -------- AUSTRIA ------- Libro AG (111) 174 (182) BELGIUM ------- Real Software REAL (110) 216 (10) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (2,186) DENMARK ------- Elite Shipping (28) 101 19 FRANCE ------ Banque Nationale de Paris Guyane (41) 352 N.A. BSN Glasspack (101) 1,151 179 Bull S.A. BULP (760) 893 (130) Compagnie des Machines Bull (116) 136 (20) Compagnie Francaise de l'Afrique Occidentale (65) 256 21 Cofidur S.A. (5) 102 19 Dollfus-Mieg & Co. DOLP (0) 187 28 European Computer System (110) 682 377 Grande Paroisse S.A. (927) 629 330 Pneumatiques Kleber S.A. (34) 480 139 SDR Picardie (135) 413 N.A. Soderag (3) 404 N.A. Sofal S.A. (305) 6,619 N.A. Spie-Batignolles (16) 5,281 75 St Fiacre (FIN) (1) 111 (33) Trouvay Cauvin TRCN (0) 134 10 Usines Chauson (23) 249 35 GERMANY ------- Dortmunder Actien-Brauerei DABG (13) 118 (29) F.A. Guenther & Sohn AG GUSG (8) 111 N.A. Kaufring AG KAUG (19) 151 (51) Nordsee AG (8) 195 (31) Schaltbau AG SLTG (16) 163 20 Vereinigter Baubeschlag-Handel Holding AG VBHG (24) 307 (63) ITALY ----- Binda S.p.A. BND (11) 129 (20) CIRIO FINANZIARI CBDI (422) 1,583 (396) Credito Fondiario e Industriale S.p.A. CRF (200) 4,218 N.A. Lazio S.p.A. (57) 495 (330) NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 NORWAY ------ Pan Fish ASA PAN (117) 806 (259) Petroleum-Geo Services PGO (32) 2,963 (5,250) POLAND ------ Animex S.A. (1) 108 (86) Exbud Skanska S.A. EXBUF (9) 315 (330) Mostostal Zabrze (6) 227 (366) Stalexport S.A. (57) 229 (51) SPAIN ----- Altos Hornos de Vizcaya S.A. (116) 1,283 (278) Santana Motor S.A. (46) 223 41 Sniace S.A. (11) 128 (24) Tableros de Fibras S.A. TFI (43) 2,107 125 SWITZERLAND ----------- Kaba Holding AG KABZN (47) 572 278 UNITED KINGDOM -------------- Abbot Mead Vickers (2) 168 (16) Alldays Plc ALD (120) 252 (202) Amey Plc AMY (49) 932 (47) Bonded Coach Holiday Group Plc (6) 188 (44) Blenheim Group (153) 198 (34) Booker Plc BKRUY (60) 1,298 (8) Bradstock Group BDK (2) 269 5 Brent Walker Group (1,774) 867 (1,157) British Energy BGY (5,342) 3,438 229 British Nuclear Fuels Plc (2,627) 36,359 1,948 British Sky Broadcasting BSY (175) 3,347 (144) Center Parcs (UK) Group Plc (77) 423 (227) Compass Group CPG (668) 2,972 (298) Costain Group COST (34) 329 (12) Dawson Holdings DWSN (29) 142 (29) Easynet Group Plc ESY (12) 332 53 Electrical and Music EMI Industries Group (885) 3,053 (435) Euromoney Institutional ERM (122) 167 (2) Gallaher Group GLH (543) 5,527 68 Gartland Whalley (11) 145 (8) Global Green Tech Group (156) 408 (18) Heath Lambert Fenchurch Group PLC (10) 4,109 (10) HMV Group PLC HMV (211) 762 (66) Intertek Testing Services ITRK (134) 425 67 IPC Media Ltd. (685) 254 16 Lambert Fenchurch Group (1) 1,827 3 Lattice Group (1,290) 12,410 (1,228) Leeds United PLC (73) 144 (29) Manchester City (17) 154 (21) Misys PLC MSY (161) 949 41 Orange PLC ORNGF (594) 2,902 7 Regus PLC RGU (46) 367 (60) Rentokil Initial Plc RTO (1,130) 2,809 (37) Saatchi & Saatchi SSI (119) 705 (41) Seton Healthcare (11) 157 0 Yell Group PLC (196) 3,964 289 Each Tuesday edition of the TCR-Europe contains a list of companies with insolvent balance sheets based on the latest publicly available balance sheet available to our editors at the time of publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* 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. * * * End of Transmission * * *