/raid1/www/Hosts/bankrupt/TCREUR_Public/040206.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Friday, February 6, 2004, Vol. 5, No. 26
Headlines
F I N L A N D
BENEFON OYJ: Subscription Offer Receipt Period Begins Today
STORA ENSO: Full-year Operating Profit Down 41.9%
I R E L A N D
JSG FUNDING: To Bare Fourth Quarter, Full-year Results Feb. 11
I T A L Y
PARMALAT FINANZIARIA: Government Extends EUR150 Mln Financing
PARMALAT FINANZIARIA: Selling Football Club at Season's End
L U X E M B O U R G
MILLICOM INTERNATIONAL: To Extend Cooperation in Vietnam
S W E D E N
SCANDINAVIAN AIRLINES: Reaches Deal with Striking Workers
U N I T E D K I N G D O M
ADAPTIVE BIOSYSTEMS: Shareholders Opt for Voluntary Liquidation
BRAND HOLDINGS: Falls into Administrative Receivership
BRITISH AIRWAYS: Traffic and Capacity Statistics Improve
BRITISH ENERGY: Offers No Explanation for Unusual Share Movement
BRITISH ENERGY: Receives GBP18.3 Mln Settlement from Siemens
BRITISH ENERGY: Declares Common Stock Issuance
CHARTER PLC: Triton to Acquire Stake in Gas Control Equipment
CHINA RED: In Administrative Receivership
DALE JOINERY: Enters Administration
ENODIS PLC: Outlook Revised to Stable Due to Improved Financials
EQUITABLE LIFE: Faces New Call for Policy Compensation
EURODIS ELECTRON: Proposed Equity Issue Underway as Planned
GENERAL INSURANCE: Court Sanctions Scheme of Arrangement
GEORGE WATERSTON: Fellow Printer Rescues Firm from Receivership
INTRINSIC VALUE: Investors to Consider Wind up Proposal Feb. 17
L'ESCAPADE LIMITED: Unsecured Creditors to Meet February 19
MB NUCLEAR: Meeting of Unsecured Creditors February 25
THORNTONS PLC: Buyout Negotiations Fall Through
UNITED BISCUITS: Additional Notes Merits Watch Negative Posting
UNITED BISCUITS: Long-term Ratings Lowered to 'B+'
UNITED BISCUITS: New Chairman Appointed to Help CEO Malcolm
YORKSHIRE GROUP: Hands out Circular on U.S. Unit Partial Sale
*********
=============
F I N L A N D
=============
BENEFON OYJ: Subscription Offer Receipt Period Begins Today
-----------------------------------------------------------
The beginning of the subscription offer receipt period of
Benefon re-organization debt conversion share issue, announced
in the bulletin of January 26, 2004, to be on February 2, 2004,
and which was postponed until Thursday as informed in the
bulletin of February 2, 2004, will be delayed by one more day
due to the finalizing of the details of the listing prospectus
needed in the issue.
The new receipt period of said subscription offers is now from
February 5 until February 18, 2004.
BENEFON OYJ
Jorma Nieminen
Chairman
STORA ENSO: Full-year Operating Profit Down 41.9%
-------------------------------------------------
Fourth Quarter Results
Stora Enso's earnings per share excluding non-recurring items
were EUR0.00 (EUR0.09). Operating profit excluding non-
recurring items was EUR80.5 (EUR139.8) million, which is 42.4%
less than in the previous quarter and 2.7% of sales. Profit
before taxes and minority interests excluding non-recurring
items amounted to EUR7.8 (EUR107.4) million. Non-recurring
items in the operating profit totaled EUR14.5 million due to the
write-down for the expected capital loss on the sale of
forestland in Ontario, Canada. Non-recurring items in net
financial items totalled US$61.1 (EUR54.0) million due to the
provision for the expected losses from the termination of the
U.S. cross-border leasing contracts.
Sales of EUR3,028.8 million were 1.4% higher than the previous
quarter's EUR2,987.4 million. Cash flow from ongoing operations
was EUR579.7 (EUR373.8) million and cash flow after investing
activities EUR190.5 (EUR87.4) million. Cash earnings per share
excluding non-recurring items were EUR0.36 (EUR0.44). Net
financial items were EUR67.7 (EUR23.4) million. Market-related
production curtailments totalled 210,000 tones (170,000 tones).
To see figures: http://bankrupt.com/misc/StoraEnso_Q4.htm
(a) EBITDA: Earnings before Interest, Taxes, Depreciation and
Amortization
(b) Excluding net non-recurring items. Exceptional
transactions, which are not related to normal business
operations, are accounted for as non-recurring items. The
most common non-recurring items are capital gains,
additional write-downs, restructuring provisions and
penalties. The amount of each individual non-recurring item
normally exceeds one cent per share.
(c) EUR54.0 million included in net financial items.
(d) CEPS: Net profit for the period plus depreciation and
amortization or average number of shares
Full Year Results
Full year sales decreased by EUR610.3 million to EUR12,172.3
million, a decline of 4.8%. Operating profit excluding non-
recurring items decreased by EUR388.4 million, or 41.9% to
EUR538.1 million. Earnings per share were EUR0.25 (EUR0.57) and
cash earnings per share EUR1.64 (EUR1.97), both excluding non-
recurring items.
Cash flow from operations totalled EUR1,808.3 (EUR2,083.8)
million, with cash flow after investing activities amounting to
EUR615.0 (EUR1,247.7) million.
Outlook
Commenting on the outlook, Stora Enso's CEO Jukka Harmala said,
"In Europe growing confidence in the economic recovery is
expected to increase demand for advertising-driven paper.
Pressure on prices still persists in magazine paper grades, and
newsprint prices will at best maintain last year's levels.
Prices for packaging boards are rather stable, while fine paper
prices seem to be stabilizing at low levels. Demand for wood
products is fairly good, but prices are under pressure. The
weak U.S. dollar and increasing competition will continue to
have an adverse effect on the Group's European operations."
In North America the economy is recovering, but that has only
marginally increased the demand for paper. There are some signs
now that demand is increasing, and this is expected gradually to
affect paper prices during the second half of 2004. In coated
fine paper oversupply persists in the form of imports, mainly
from Asia. Stora Enso North America's results for the first
quarter of 2004 will be negatively impacted by the major
rebuilding of fine paper machine 16 at Wisconsin Rapids.
In China the economy is growing rapidly and boosting the demand
for fine paper and packaging boards.
The Group's intensified savings measures that started in 2003
are proceeding according to plan. The objective remains to keep
the capital expenditure in the 2003-04 periods in line with the
Group's depreciation charges.
Stora Enso's first quarter results will be published on April
28, 2004.
The full-length version of the Stora Enso interim review is
available on the Stora Enso website at
http://www.storaenso.com/investors
CONTACTS: STORA ENSO
Jukka Harmala, Chief Executive Officer
Phone: +358 2046 21404
Bjorn Hagglund, Deputy Chief Executive Officer
Phone: +46 70 528 2785
Esko Makelainen, CFO
Phone: +44 20 7016 3115
Kari Vainio, EVP, Corporate Communications
Phone: +44 7799 348 197
Keith B Russell, SVP, Investor Relations
Phone: +44 7775 788 659
=============
I R E L A N D
=============
JSG FUNDING: To Bare Fourth Quarter, Full-year Results Feb. 11
--------------------------------------------------------------
JSG Funding plc, incorporating Jefferson Smurfit Group, will
release detailed 2003 fourth quarter and full year earnings on
Wednesday, February 11 at 12 p.m. GMT (7 a.m. EST).
The Jefferson Smurfit Group management team will discuss fourth
quarter financial performance with investors on a conference
call scheduled for 3:00 p.m. GMT (10:00 a.m. EST) on that date.
The purpose of the call is to provide investors and analysts
with an overview of the financial results, a perspective on
product market conditions and progress relative to corporate and
financial objectives.
Dial in details are available from K Capital Source on +353 1
631 5520 or smurfit@kcapitalsource.com
*****
Moody's Investors Service recently downgraded the ratings of JSG
Funding by one notch to reflect the company's high financial
leverage and Moody's expectation that the group's debt reduction
will be slower than anticipated.
CONTACT: K CAPITAL SOURCE
Phone: +353 1 631 5500
E-mail: smurfit@kcapitalsource.com
JEFFERSON SMURFIT GROUP
Phone: +353 1 202 7000
=========
I T A L Y
=========
PARMALAT FINANZIARIA: Government Extends EUR150 Mln Financing
-------------------------------------------------------------
Parmalat Finanziaria S.p.A., | Parmalat Finanziaria S.p.A.
under Extraordinary | in Amministrazione
Administration, communicates | Straordinaria comunica che
that Parmalat S.p.A. under | Parmalat S.p.A. in
Extraordinary Administration | Amministrazione Straordinaria
on 21 January 2004 received | ha ricevuto dal Ministero
authorization from the Minister | delle Attivita Produttive, in
of Productive Activities to | data 21 gennaio 2004,
finalize a loan of up to EUR150 | l'autorizzazione a stipulare
million with a group of banks | un prestito fino a 150
that has already been chosen. | milioni di euro con un pool
| di banche gia individuate.
|
The loan is intended to cover | Il prestito e finalizzato a
the operating requirements of | coprire le necessita delle
Parmalat Group companies both | societa del Gruppo in Italia
in Italy and abroad, while a | e all'estero per quanto
definitive plan for the Group's | attiene la gestione corrente,
economic and financial | in attesa della
restructuring is in the process | finalizzazione del piano
of being finalized. | definitivo di
| ristrutturazione economica e
| finanziaria del Gruppo.
|
Banca Popolare di Lodi, | Nell'ambito di questo
which is leading the group of | pool guidato dalla Banca
banks, has already approved its | Popolare di Lodi, la stessa
participation in the | Banca Popolare di Lodi ha gia
transaction for an amount of | deliberato di partecipare con
EUR15 million. This sum will | una quota di 15 milioni di
be made available immediately | euro immediatamente
and the relevant agreement has | disponibili e per i quali e
been signed Wednesday. | stato firmato in data odierna
| il relativo contratto.
(Parmalat Bankruptcy News, Issue No. 4; Bankruptcy Creditors'
Service, Inc., 215/945-7000)
PARMALAT FINANZIARIA: Selling Football Club at Season's End
-----------------------------------------------------------
Parmalat Finanziaria S.p.A., | Parmalat Finanziaria S.p.A.
under Extraordinary | in Amministrazione
Administration, held on Jan. 14 | Straordinaria comunica che in
the Shareholder Meeting of | data odierna si e tenuta
Parma Associazione Calcio | l'Assemblea dei Soci della
S.p.A., a company controlled | S.p.A. Parma Associazione
indirectly through Parmalat | Calcio, societa controllata
S.p.A., also under | indirettamente tramite la
Extraordinary Administration. | Parmalat S.p.A. in
| Amministrazione
Straordinaria.
EUR20-mil Debt for Equity Swap
The Meeting agreed steps | L'Assemblea dei Soci del
to cover losses resulting from | Parma A.C. ha provveduto a
the economic and financial | coprire le perdite risultanti
situation of the Company as at | dalla situazione patrimoniale
30 September 2003 and to | al 30 settembre 2003 ed a
restore the company's capital | ricostituire il capitale
position to an amount of | sociale fino a 20 milioni di
Euro 20 million through the | euro tramite conversione di
conversion of credits by | crediti da parte della
Parmalat S.p.A., under | Parmalat S.p.A. in
Extraordinary Administration. | Amministrazione
| Straordinaria.
|
Minority shareholders | I Soci di minoranza si
reserved their right to | sono riservati di partecipare
participate in the covering of | alla copertura perdite ed
these losses and in the capital | all'aumento del capitale
increase, as provided for under | sociale nei termini di legge.
the relevant legislation. |
Appointment of New Board & Auditors
Having noted the resignations | L'Assemblea dei Soci,
of Stefano Tanzi, Paolo Tanzi | preso atto delle dimissioni
and Francesca Tanzi, other | di Stefano Tanzi, Paolo Tanzi
resignations already submitted, | e Francesca Tanzi, delle
and of the availability of | altre dimissioni gia
Alessandro also to resign his | presentate nonche della
mandate, the Shareholder | disponibilita Chiesi
Meeting appointed a new Board | a rimettere il mandato di
of Directors consisting of: | Alessandro Chiesi, ha
| provveduto a nominare un
| Consiglio di Amministrazione
| nuovo nelle persone di:
|
-- Enrico Bondi (President), | -- Enrico Bondi,
-- Umberto Tracanella, | Presidente
| -- Umberto Tracanella,
-- Guido Angiolini, and | -- Guido Angiolini, e
-- Luca Baraldi. | -- Luca Baraldi.
|
|
Furthermore, a new Statutory | E' stato quindi nominato
Board of Auditors was | un nuovo Collegio Sindacale,
appointed, replacing the | in luogo di quello dimessosi,
outgoing Board of Auditors, | nelle persone di Angelo
consisting of Angelo | Stimamiglio, Presidente,
Stimamiglio, President, Massimo | Massimo Nuti e Marco
| Ziliotti.
Nuti and Marco Ziliotti. |
PwC Replaces Grant Thornton
Finally, the Shareholder | Infine l'Assemblea ha
Meeting removed Grant Thornton | deliberato la revoca
as auditors to the Company and | dell'incarico di revisione
appointed in its place | del bilancio alla Societa
PricewaterhouseCoopers. | Grant Thornton e ha affidato
| il nuovo incarico di
| revisione
| alla PricewaterhouseCoopers.
Baraldi Appointed as CEO
Following the Shareholder | Successivamente
Meeting, the Board of Directors | all'Assemblea il Consiglio di
met to appoint Luca Baraldi as | Amministrazione si e riunito
Chief Executive Officer of the | ed ha nominato Amministratore
Company. | Delegato il Dott. Luca
| Baraldi.
Board Thanks Football Team
The new Board of Directors | Il nuovo Consiglio del
of Parma Calcio expressed its | Parma Calcio ha espresso
appreciation for the spirit and | grande apprezzamento per lo
approach of the team and its | spirito ed il comportamento
coach, who have shown through | della squadra e del suo
their skill and performance how | allenatore che hanno saputo
to deal with the difficult | affrontare brillantemente il
times facing the Parmalat | momento molto difficile che
Group. In this way they are | il Gruppo Parmalat sta
making their contribution to | attraversando. In tal modo
ensuring continuity for one of | essi contribuiscono ad
the football world's most | assicurare la continuita di
distinguished clubs. | un club che si e distinto nel
| mondo del calcio.
Finanziaria Settles Club Issues
Parmalat Finanziaria S.p.A., | -- Parmalat Finanziaria
under Extraordinary, | S.p.A. in Amministrazione
Administration communicates | Straordinaria, con
that with regard to market | riferimento alle notizie
rumors concerning the fiscal | diffuse questa mattina sulla
status of its subsidiary | posizione fiscale della
company Parma A. C., all | Societa controllata Parma
pending litigation relating to | A. C., comunica che ogni
the period 1 July 1998 - | contenzioso fiscale relativo
30 June 2001, regarding capital | al periodo 1 luglio 1998 -
gains realized on the sale of | 30 giugno 2001, in merito
players, have been resolved via | alle plusvalenze realizzate
the amnesty provided for under | con le cessioni dei
the 2003 year's Financial | giocatori, risulta definito
Legislation. The payment of | attraverso il condono tombale
the first and second | previsto dalla Legge
installments agreed under this | Finanziaria 2003. I pagamenti
amnesty have already taken | della prima e della seconda
place. | rata sono gia avvenuti
| secondo le modalita previste
| dalla medesima legge di
| condono.
|
The company has also | In relazione all'IRAP del
established a balance sheet | periodo d'imposta chiuso al
provision for the "IRAP" | 30 giugno 2002, la societa ha
regional corporation tax due | iscritto in bilancio un fondo
for the period ended 30 June | rischi per imposte.
2002. |
(Parmalat Bankruptcy News, Issue No. 4; Bankruptcy Creditors'
Service, Inc., 215/945-7000)
===================
L U X E M B O U R G
===================
MILLICOM INTERNATIONAL: To Extend Cooperation in Vietnam
--------------------------------------------------------
Millicom International Cellular S.A. (Nasdaq: MICC) announces
that its subsidiary, Comvik International Vietnam, has signed a
Memorandum of Understanding with its partners in Vietnam, VMS (a
subsidiary of the Vietnam Posts and Telecommunications), to
confirm their intention to extend the cooperation for the long-
term. The cooperation will comply with the prevailing
legislation for telecommunication ventures in Vietnam at that
time.
Marc Beuls CEO commented: "This Memorandum of Understanding
confirms that our partners do wish to deepen the relationship
between our two companies. Our cooperation through Comvik is
seen as the most successful BCC in the telecommunications sector
and this has been recognized by the recent Golden Dragon Award
as the "Best Company in the field of Telecommunications" granted
by the Vietnamese Ministry of Planning and Industry, showing the
strong foundations for our future cooperation."
CONTACT: MILLICOM INTERNATIONAL CELLULAR S.A.
Luxembourg
Marc Beuls, Chief Executive Officer
Phone: +352 27 759 327
SHARED VALUE LTD. LONDON
Andrew Best, Investor Relations
Phone: +44 20 7321 5022
Homepage: http://www.millicom.com
===========
S W E D E N
===========
SCANDINAVIAN AIRLINES: Reaches Deal with Striking Workers
---------------------------------------------------------
The Swedish Air Transport Industry Employers' Association and
the Swedish Transport Workers' Union accepted the negotiators
offer regarding the 2003 contract for flight technicians,
mechanics and baggage handlers. Consequently, further planned
strike actions are cancelled against Scandinavian Airlines and
subsidiaries.
For the Scandinavian Airlines Group, the agreement entails a pay
freeze for 2003, in line with Scandinavian Airline's initial and
unconditional demand; however, elements of the planned savings
for 2004 were lost. The contract means that the SAS Group has
now reached agreement on a pay freeze for 2003 with all affected
trade unions in Scandinavia.
Work to further reduce the Group's costs is continuing during
2004 and Scandinavian Airlines will take the measures necessary
to achieve competitiveness on the airline market.
===========================
U N I T E D K I N G D O M
===========================
ADAPTIVE BIOSYSTEMS: Shareholders Opt for Voluntary Liquidation
---------------------------------------------------------------
At an Extraordinary General Meeting of Adaptive Biosystems, duly
convened, and held at the offices of RZQ, 42 New Oxford Street,
London WC1A 1EP, on January 26, 2004, the subjoined
Extraordinary Resolution was duly passed:
"That it has been proved to the satisfaction of this Meeting
that the Company cannot, by reason of its liabilities, continue
its business, and that it is advisable to wind up the same, and
accordingly that the Company be wound up voluntarily, and that
William John Turner and Kevin Anthony Murphy, of RZQ LLP, 42 New
Oxford Street, London WC1A 1EP, are hereby appointed Joint
Liquidators for the purposes of such winding-up and are to act
jointly and severally."
CONTACT: J Bonham-Carter, Chairman
248 Toddington Road
Luton LU4 9DZ
United Kingdom
Phone: +44 (0)1582 597 676
Fax: +44 (0)1582 581 495
BRAND HOLDINGS: Falls into Administrative Receivership
------------------------------------------------------
Name of Company: Brand Holdings Limited
Reg No: 3873919
Previous Name: Hamsard 5070 Limited
Nature of Business: Holding Company
Trade Classification: N/A
Date of Appointment of Administrative Receivers:
January 26, 2004
Name of Person Appointing the Administrative Receivers:
Bank of Scotland.
Joint Administrative Receivers: 100 Barbirolli Square,
Manchester M2 3EY.
Receivers:
S. Allport
G. Wilson
(Office Holder Nos.
8763, 9062)
BRITISH AIRWAYS: Traffic and Capacity Statistics Improve
--------------------------------------------------------
Summary of the headline figures
In January 2004, passenger capacity, measured in Available Seat
Kilometers, was 4.4% above January 2003 and traffic, measured in
Revenue Passenger Kilometers, was higher by 3.5%. This resulted
in a passenger load factor down 0.5 points versus last year, to
69.1%. The increase in traffic comprised a 1.1% increase in
premium traffic and a 3.9% increase in non-premium traffic.
Cargo, measured in Cargo Tone Kilometers, rose by 16.6%.
Overall load factor rose 1 point to 64.8%.
Market conditions
Security issues are having some impact on forward bookings.
Longhaul premium volumes, however, remain above last year's
levels, but shorthaul premium remains weak. Non-premium traffic
volumes remain very sensitive to yield.
Strategic Developments
British Airways set a target of EUR300 million for reduced staff
costs in its business plan for 2004-06. The airline will target
improvements to working practices and seek to introduce more
efficiency to lower unit costs.
British Airways' first regional transatlantic codeshare flights
with American Airlines to and from the U.K. regions opened for
sale. Daily flights from Manchester to New York and Chicago
will now carry both airlines' flight codes. The total number of
codeshare destinations added to the B.A. network so far is 58.
The airline launched a 1,000 million B.A. Miles give away to
customers booking a British Airways business class ticket. The
offer gives all passengers who book a Club Europe or Club World
flight and travel between now and March 27, triple B.A. Miles.
Passengers have to join the British Airways Executive Club to be
eligible for the promotion.
British Airways' chief executive Rod Eddington called for closer
cooperation between governments to tackle terrorist threats.
To see statistics:
http://bankrupt.com/misc/BritishAirways_TrafficStat.htm
February 4, 2004
BRITISH ENERGY: Offers No Explanation for Unusual Share Movement
----------------------------------------------------------------
Shares in British Energy surged 64% or 5.09p higher at 13p in
recent days. The electricity generator denied knowledge of any
explanation for the unusual movement, but The Scotsman noted the
upturn coincided with reports a U.S. hedge fund had been buying
shares in the company.
The reasons behind the action of the unidentified investor
remained a mystery in light of the company's planned debt-for-
equity restructuring. Under the program, British Energy
shareholders are likely to be left with only a fraction of the
company when the reorganization is completed.
Taking into account the share's high time value of 325p in 2000,
the recent share price rise remained negligible, however.
British Energy's market capitalization is just GBP52 million on
Wednesday.
British Energy almost fell into administration in October under
a GBP1.3 billion-debt load.
CONTACT: FINANCIAL DYNAMICS
Andrew Dowler
Phone: 020 7831 3113
BRITISH ENERGY
Paul Heward
Phone: 01355 262201
Home Page: http://www.british-energy.com
BRITISH ENERGY: Receives GBP18.3 Mln Settlement from Siemens
------------------------------------------------------------
British Energy and Siemens have settled long-standing disputes
relating to work done since 1996 by the former Parsons business.
Under the terms of the settlement, Siemens has agreed to pay the
Company GBP18.3 million.
The settlement includes a commitment by the Company and Siemens
to develop a mutually beneficial commercial relationship under a
long-term supply agreement.
CONTACT: FINANCIAL DYNAMICS
Andrew Dowler
Phone: 020 7831 3113
BRITISH ENERGY
Paul Heward
Phone: 01355 262201
Home Page: http://www.british-energy.com
BRITISH ENERGY: Declares Common Stock Issuance
----------------------------------------------
This notification relates to issued common stock of the Company
and is given in fulfillment of the obligations imposed by
sections 198 to 203 of the Companies Act 1985.
We hereby notify you that as at close of business on January 29,
2004, The Goldman Sachs Group, Inc. of 85 Broad Street, New
York, NY 10004, USA, was interested, by attribution only, in a
total of 26,995,345 shares.
Of these 26,995,345 shares:
(a) The interest in 21,080,634 shares arose from the interest
held by Goldman, Sachs & Co., acting as custodian. These
shares are, or will be, registered in the name of Goldman
Sachs Securities (Nominees), Limited.
(b) The interest in 5,059,800 shares arose from the interest
held by Goldman, Sachs & Co. acting as custodian of 67,464
American Depositary Receipts. These American Depository
Receipt's are, or will be, held at the Depositary Trust
Company of New York.
(c) The interest in 824,911 shares arose from a beneficial
interest held by Goldman Sachs International. These
shares are, or will be, registered at CREST in account
CREPTEMP.
(d) The interest in 30,000 shares arose from the beneficial
interest held by Goldman, Sachs & Co. of 400 American
Depositary Receipts. These American Depository Receipt's
are, or will be, held at the Depositary Trust Company of
New York.
CHARTER PLC: Triton to Acquire Stake in Gas Control Equipment
-------------------------------------------------------------
The Board of Charter plc announces the agreed sale of its 50%
interest in Gas Control Equipment A.B. to Triton for an initial
cash purchase consideration of SEK193 million (EUR14 million),
subject to adjustment based on the audited net asset value of
Gas Control Equipment as at December 31, 2003.
This sale of Charter's 50% interest in Gas Control Equipment,
which is held by its subsidiary, Esab A.B., will generate a
profit of approximately EUR6 million over the book value at
December 31, 2003. The remaining 50% interest in Gas Control
Equipment, held by a subsidiary of Linde A.G., is also being
sold to Triton.
Gas Control Equipment is a European group, headquartered in
Malmo, Sweden, specializing in equipment and systems for flow
and pressure control of gases. In the year ended December 31,
2002, Gas Control Equipment generated turnover of SEK822 million
(EUR56 million), however this was not included in Charter's
consolidated turnover since Charter has accounted for Gas
Control Equipment as an associated company. Gas Control
Equipment's profit before taxation was SEK59 million (EUR4
million), of which 50% was included in Charter's consolidated
profit before taxation. As at December 31, 2002 Gas Control
Equipment had net assets of SEK211 million (EUR15 million) of
which 50% was included in Charter's consolidated balance sheet.
Completion of this disposal is expected to occur by February 28,
2004 and is conditional, inter alia, upon obtaining certain
regulatory clearances in Austria and Poland, and upon there
being no material adverse change in Gas Control Equipment in the
period between now and completion.
David Gawler, Chairman and Chief Executive, commenting on the
disposal said:
"I am pleased to announce a significant further step in
Charter's cash generation program with the agreed sale of its
50% interest in Gas Control Equipment for an initial cash
consideration of EUR14 million. Following completion of this
disposal, Charter will have generated some EUR54 million of net
cash proceeds from non-core asset disposals since the renewal of
its syndicated revolving credit facility on July 22, 2003. The
proceeds of this disposal will be utilized to reduce the group's
indebtedness."
Internet users will be able to view this announcement, together
with other information about Charter plc at the company's web
site http://www.charterplc.com
*****
Triton is a European private equity company that mainly invests
in companies in the German-speaking part of Europe and the
Nordic countries. With offices in Frankfurt, Stockholm, and
London, Triton has equity of EUR650 million, which is made
available to Triton by leading European and international
investors.
CONTACT: CHARTER PLC
Andrew Fenwick and Pamela Small
Brunswick
Phone: +44 (0) 20 7404 5959
CHINA RED: In Administrative Receivership
-----------------------------------------
Name of Company: China Red Limited
Reg No: 3122066
Nature of Business: Manufacture of Other Outerwear
Trade Classification: 1822
Trading Name: China Red
Date of Appointment of Joint Administrative Receivers:
January 23, 2004.
Name of Person Appointing the Joint Administrative Receivers:
Euro Sales Finance Plc.
Joint Administrative Receivers: Tenon Recovery
73 Baker Street,
London W1U 6RD
Receivers:
S.R. Thomas
S.D. Burkett-Coltman
(Office Holder Nos. 8920,9181)
DALE JOINERY: Enters Administration
-----------------------------------
Name of Company: Dale Joinery Limited
Reg No: 1455016
Previous Name: Dale Joiners Limited
Nature of Business: Manufacture of Window Frames and Doors
Trade Classification: 09 Manufacture of Timber and Furniture
Date of Appointment of Joint Administrative Receivers:
January 26, 2004
Name of Person Appointing the Joint Administrative Receivers:
Bank of Scotland.
Joint Administrative Receivers: 100 Barbirolli Square,
Manchester M2 3EY
Receivers:
S. Allport
G. Wilson
(Office Holder Nos.
8763 and 9062)
ENODIS PLC: Outlook Revised to Stable Due to Improved Financials
----------------------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on U.K.-
based food service equipment manufacturer Enodis PLC to stable
from negative, reflecting the group's improved financial profile
and operating performance.
At the same time, Standard & Poor's affirmed its 'BB-' long-term
Corporate credit rating on Enodis, and its 'B' subordinated debt
rating on the group's GBP100 million ($184 million) senior notes
due 2012.
Enodis has been able to reduce its leverage and has succeeded in
achieving cost reductions, which enabled the group to stabilize
profitability in challenging markets during financial 2003. At
year-end September 27, 2003, the group reduced its unadjusted
net debt to GBP139.7 million from GBP186.1 million in 2002 and,
through stable cash generation and reduced interest costs, was
able to improve key credit metrics to relatively strong levels
for the ratings.
"Despite a depressed environment, Enodis' performance is
satisfactory and the group's financial risk has decreased given
the significant debt reduction undertaken, focus on cash flow
generation, and efforts to reduce operating costs," said
Standard & Poor's credit analyst Leigh Bailey.
"Operational improvements have helped the group to
satisfactorily offset the effect of very soft market conditions
in its core North American food equipment market."
These improvements have notably included the achievement of a
break-even position at the previously loss-making Kysor Warren
chiller cabinet operation and the stabilization of trading
volumes and improvement in operating performance in Europe and
Asia, which account for 22% of group sales and where the group's
market position is weaker than North America.
Demand is not expected to deteriorate in the group's core
markets and Enodis should achieve sufficient cost reductions to
withstand continuing margin pressure. Market growth will be
modest in the intermediate term as Enodis is highly geared to
capital spending levels in its core U.S. markets, which have not
yet showed signs of recovery. Standard & Poor's expects Enodis
to be able to continue servicing its debt and improving
credit metrics gradually through the amortization of debt
through free cash flow generation.
EQUITABLE LIFE: Faces New Call for Policy Compensation
------------------------------------------------------
Members of the Equitable Late Contributors Action Group, a newly
organized band of policyholders, are calling on Equitable Life
to return up to GBP400 million of their money, reports say.
The group is composed of policyholders who bought insurance
contracts after September 1998, or who made substantial
contributions to their policy after this date, when the board
was advised on the possible extent of its financial troubles.
The policyholders alleged that the society failed to warn
policyholders about the impact of losing its legal battle over
the rights of Guaranteed Annuity Rate policyholders. Equitable
was left with a GBP1.5 billion liability years ago after it lost
a legal battle in the House of Lords over the rights of its
Guaranteed Annuity Rates.
Earlier, around 175 members of the Equitable Late-Joiners Action
Group, a different organization with a similar cause, was given
an undisclosed settlement for the same argument.
The founder of the new group Paul Weir believes the precedence
could open the gateway for more claims to be compensated. But
an Equitable spokesman said: "Having taken legal advice the new
board believes there is no sustainable case for fraud."
Equitable offered 16,000 late joiners, who left the society
before its compromise scheme, compensation of up to 5% in return
for giving up their legal rights. But around only a quarter
have so far responded to the offer, which the action groups
consider too low.
CONTACT: EQUITABLE LATE CONTRIBUTORS ACTION GROUP
Home Page: http://www.elcag.org.uk
EURODIS ELECTRON: Proposed Equity Issue Underway as Planned
-----------------------------------------------------------
On December 8, 2003, the Board of Eurodis Electron PLC announced
that, having reviewed the Group's working capital requirements,
including, inter alia, the working capital requirements of
market growth, it had concluded that it should raise additional
equity in the next three months.
The Board can confirm that it expects shortly to announce a
substantial equity issue, in conjunction with the publication of
its interim results for the six months ended November 30, 2003.
The new equity is expected to complete the refinancing of the
business and should allow the Group to take advantage of the
global upturn in the semiconductor market.
The equity issue will comprise a combination of a Firm Placing
and a Placing and Open Offer and will be at an issue price of 5p
per share. A further announcement will be made shortly.
CONTACTS: EURODIS ELECTRON
Billy Clegg
Zoe Sanders
Phone: 020 7861 3232
GENERAL INSURANCE: Court Sanctions Scheme of Arrangement
--------------------------------------------------------
In the Chancery Division No. 4671 of 2003
Notice is hereby given that, by an order dated December 18, 2003
made in the High Court in the above matter, the scheme of
arrangement dated October 13, 1985 proposed pursuant to section
425 of the Companies Act 1985 between Municipal General
Insurance Limited and its Scheme creditors which was voted on
and approved by Scheme Creditors at the meeting of Scheme
Creditors held on December 5, 2003, was sanctioned. A copy of
the Order was delivered to the Registrar of Companies for
registration on January 15, 2004, and the Scheme accordingly
became effective on that date. The Joint Scheme Administrators
are Jacqueline Stephenson and Graeme Gadsby.
Data Forms will be dispatched to Scheme Creditors shortly. If
you consider you are a creditor of the Company but do not
receive a Data Form by Monday March 1, 2004, please write to the
address below and request one. Scheme Creditors must complete
and return their Data Forms by no later that the deadline
specified in such forms. In any anniversary after the Effective
Date; failure to do so will result in the Scheme Creditor
concerned not being entitled to claim a dividend under the
Scheme.
Should you have any questions regarding this Notice or require a
Data Form, please write: Stephen Kernick
Municipal General Insurance Limited
Friary Court
13/21 High Street, Guilford, GU1 3DG
Fax: +44 (0) 483 303158
E-mail: stephen.kerneck@mgi-ltd.co.uk
GEORGE WATERSTON: Fellow Printer Rescues Firm from Receivership
---------------------------------------------------------------
Montgomery Litho bought the 250-year-old printing firm George
Waterston & Son out of receivership, according to The Scotsman.
The move saved the jobs of five employees in the ancient maker
of sealing wax.
Andrew Montgomery, owner of Montgomery Litho, already has the
200-year-old Edinburgh Press under its portfolio. It also owns
three other printing and book binding firms including Glasgow's
Print People.
George Waterston & Sons was set up in 1752 as a maker of
flambeau candles, but moved into sealing wax after the invention
of gas-powered bulbs hit its core market. The company added a
printers and a stationery shop in the 19th century. The
company's fall into receivership last year follows the demerger
of its security printing arm and the drain of senior staff.
INTRINSIC VALUE: Investors to Consider Wind up Proposal Feb. 17
---------------------------------------------------------------
Rebel shareholder, Laxey Partners, successfully talked off
investment trust Intrinsic Value into liquidation, according to
This is London.
The investment group, owner of a 19.25% stake, last month called
for a meeting this February 17 to decide on the wind up the
GBP20 million trust, claiming Intrinsic was dragging its heels
on a liquidation, the report said.
Intrinsic Chairman James West is unhappy about the decision. He
said the move was taken with regret, and that the timing of
asset disposals would not be appropriate. He is advising
shareholders to vote against the proposal.
Intrinsic, which invests in undervalued small companies, was
founded in 1999 by its current managers entrepreneur Luke
Johnson and Mark Horrocks. Mr. Horrocks will handle the
winding-up.
CONTACT: Isle of Man:
Laxey Partners Limited
Stanley House
7-9 Market Street
Douglas
Isle of Man IMI 2BF
Phone: +44 (0) 1624 629365
Fax: +44 (0) 1624 623819
Home Page: http://www.laxeypartners.com
London Representative Office:
Laxey Partners Limited
28 Chelsea Wharf
Lots Road
London SW 10 0QJ
Phone: +44 (0) 20 7349 6900
Fax: +44 (0) 20 7795 1888
L'ESCAPADE LIMITED: Unsecured Creditors to Meet February 19
-----------------------------------------------------------
Notice is hereby given, pursuant to section 48(c) of the
Insolvency Act 1986, that a Meeting of the unsecured Creditors
of the above-named Company will be held at the offices of Hacker
Young & Partners, St. Alphage House, 2 Fore Street, London EC2Y
5DH, on Thursday February 19, 2004, at 12:30 p.m., for the
purposes of having laid before it a copy of the report prepared
by the Administrative Receiver(s) under the said Act.
The Meeting may, establish a Creditors' Committee to exercise
the functions conferred on Creditors' Committees by or under the
Act. Creditors wishing to vote at the Meeting must lodge with me
at Hacker Young & Partners, St Alphage House, 2 Fore Street,
London EC2Y 5DH, no later than 12:00 noon on the working day
prior to the Meeting, details of the debts they claim to be due
to them by the Company, together with any proxy which the
Creditor intends to be used on his behalf at the Meeting.
A. Andronikou, Joint Administrative Receiver
NOTE:
Creditors whose claims are wholly secured are not entitled to
attend or to be represented at the Meeting.
MB NUCLEAR: Meeting of Unsecured Creditors February 25
------------------------------------------------------
Notice is hereby given, pursuant to section 48(2) of the
Insolvency Act 1986, that a Meeting of the unsecured Creditors
of MB Nuclear Limited will be held at Marriott, Gosforth Park
Hotel, High Gosforth Park, Newcastle Upon Tyne NE3 5HN, on
February 25, 2004, at 11:00 a.m., for the purposes of having
laid before it a copy of the report prepared by the
Administrative Receivers under section 48 of the said Act. The
Meeting may, establish a committee to exercise the functions
conferred on Creditors' committees by or under the Act.
Creditors whose claims are wholly secured are not entitled to
attend or be represented at the Meeting. Other Creditors are
entitled to vote if they have delivered to us at Afton House, 26
West Nile Street, Glasgow G1 2PF, no later than 12:00 noon on
the business day before the day fixed for the Meeting, written
details of the debts they claim to be due to them from the
Company, and the claim has been duly admitted under the
provisions of the Rule 3.11 of the Insolvency Rules 1986; and
there has been lodged with us any proxy which the Creditor
intends to be used on his behalf.
F. J. Gray, Joint Administrative Receiver
THORNTONS PLC: Buyout Negotiations Fall Through
-----------------------------------------------
Further to the announcement on January 22, 2004 that discussions
were continuing with a number of parties, the Independent
Directors of Thorntons (John Thornton and John Jackson) announce
that all such discussions have now been terminated.
In the view of the Independent Directors and their advisers none
of the indicative proposals received from potentially interested
parties represented fair value for shareholders.
The Board of Thorntons currently anticipates that trading for
the year ending June 26, 2004 will be in line with market
expectations.
*****
The group signaled it is looking for a potential buyer in
October when it said it had given permission to chief executive
Peter Burdon and finance director Martin Allen to look at
"potential sources of finance to enable the company to be taken
private." It said at that time it had received several
indications of interest. Private equity group Permira is
believed to be among the prospective bidders. The possible
transaction was valued at almost GBP120 million by Richard
Ratner, a retail analyst at Seymour Pierce.
CONTACT: THORNTONS
John Thornton, Chairman
Phone: 01773 542 339
INGENIOUS CORPORATE FINANCE
Nick Harvey
Phone: 020 7024 3666
ROTHSCHILD
James Fenwick
Phone: 0113 200 1900
BUCHANAN COMMUNICATIONS
Charles Ryland/Catherine Miles
Phone: 020 7466 5000
UNITED BISCUITS: Additional Notes Merits Watch Negative Posting
---------------------------------------------------------------
Fitch Ratings placed United Biscuits Group's ratings on Rating
Watch Negative, following the announcement that it intends to
issue additional senior subordinated notes in an anticipated
principal amount of GBP75 million, net of proceeds.
The agency intends to resolve the impact of the new issuance on
the ratings once it has obtained further details of the intended
use of the proceeds. If the company intends to repay existing
debt with no material change in its overall leverage or
financial profile, the agency would anticipate affirming the
ratings at current levels. If, however, the issuance proceeds
were utilized in such a way that caused a material increase in
the leverage profile then there would be the possibility of a
negative rating action.
The ratings placed on Watch Negative:
(a) United Biscuits Finance plc's GBP120 million 10.75% due
2011 senior notes and EUR160m 10.625% notes due 2011-
rated 'BB-' (BB minus);
(b) Regentrealm Limited's GBP475m senior secured facilities-
rated 'BBB-' (BBB minus), and its Senior Unsecured rating
of 'BB-' (BB minus).
Prior to Wednesday's announcement, the Outlook for all Long-term
ratings was Stable.
CONTACT: FITCH RATINGS
Junaid Jafar
Phone: +44 (0) 20 7417 3499
Giulio Lombardi
Phone: +44 (0) 20 7417 6314
Stefano Podesta
Phone: +44 (0) 20 7417 4316
UNITED BISCUITS: Long-term Ratings Lowered to 'B+'
--------------------------------------------------
Standard & Poor's Ratings Services said it lowered its long-term
corporate credit ratings on U.K.-based biscuits and snacks
manufacturer United Biscuits Finance PLC and its direct
subsidiary Regentrealm Ltd. to 'B+' from 'BB-', following
heightened competition in the group's main U.K. biscuits market.
The outlook is stable.
In addition, Standard & Poor's withdrew its 'B' short-term
corporate credit ratings on UB and Regentrealm at the group's
request.
"Increased competitive pressures in the U.K. biscuits market,
which accounts for about one-half of United Biscuits' profits,
are likely to result in lower profitability for the group in the
coming years," said Standard & Poor's credit analyst Vincent
Allilaire.
Although United Biscuits remains the leading biscuit
manufacturer in the U.K., and enjoys an above-average
profitability in that market, the group's domestic competitive
position has suffered in 2003. This is the result of large
retailers focusing some of their pricing differentiation efforts
on the highly visible branded-biscuits category and also new
product innovations from larger competitors, including new
entrants in the biscuits category. This has prevented United
Biscuits from passing on the higher-than-average raw material
cost increases.
These factors are expected to continue to constrain United
Biscuits' free cash flow generation, which is already hampered
by high restructuring costs, expected higher pension
contributions, and announced increased advertising and marketing
expenses. The group has announced a one-third (GBP11 million)
increase in advertising and marketing expenditures, and an
increase in pension contributions of about GBP10 million to
GBP15 million per year from 2004 onward. Standard & Poor's
estimates that United Biscuits' net debt position at December
31, 2003, was about GBP890 million ($1.6 billion), adjusted for
operating leases and an estimated GBP200 million pre-tax pension
deficit.
"United Biscuit's highly leveraged financial profile is expected
to improve but only gradually," added Mr. Allilaire. "The group
will, however, need to grow its free cash-flow generation over
the medium term, to meet its increasingly demanding amortization
schedule and maintain its liquidity."
UNITED BISCUITS: New Chairman Appointed to Help CEO Malcolm
-----------------------------------------------------------
United Biscuits named David Fish as non-executive chairman,
just-food.com reported citing the Financial Times.
The appointment of Mr. Fish, currently a non-executive director
of Royal Mail Holdings, Tate and Lyle and Christian Salvesen,
follows the company's decision to divide the roles of chairman
and chief executive. The split is expected to help CEO Malcolm
Ritchie to focus on daily operational duties.
Mr. Fish also worked at Mars from 1974 to 2001 in a number of
senior general management positions including president,
Snackfoods Europe and joint president, Masterfoods Europe.
The food company restructured itself after a brutal price war in
the snack-food market. Its banks streamlined GBP500 million of
the firm's GBP1.4 billion debt and removed or loosened several
key covenants in its debt package.
YORKSHIRE GROUP: Hands out Circular on U.S. Unit Partial Sale
-------------------------------------------------------------
Yorkshire announced it had entered into an agreement to dispose
of part of the textile dyes business operated by Yorkshire
Americas, Inc. to DyStar L.P. for a total cash consideration of
US$8.75 million and had agreed the terms of new banking
facilities.
A circular setting out details of the Proposed Disposal and new
banking facilities and giving notice of the extraordinary
general meeting was dispatched to Yorkshire shareholders last
Wednesday.
The circular has been submitted to the U.K. Listing Authority
and is available for inspection at the U.K. Listing Authority's
Document Viewing Facility.
CONTACT: YORKSHIRE GROUP
Andrew Dick, Chief Executive
Jim Perrie, Chief Financial Officer
Malcolm Shilton Company Secretary
Phone: 0113 244 3111
HAWKPOINT PARTNERS LIMITED
Andrew Speirs
Phone: 020 7665 4500
HOGARTH PARTNERSHIP LIMITED
Nick Denton
Phone: 020 7357 9477
*********
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 and Ma. Cristina Canson,
Editors.
Copyright 2004. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use; resale or
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