/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 * * *