/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/040211.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, February 11, 2004, Vol. 5, No. 29 Headlines F R A N C E ALSTOM SA: Secures EUR207 MM Worth of Contract from Govt G E R M A N Y SGL CARBON: S&P Removes 'B' Long-term Rating from Watch Negative G R E E C E ROYAL OLYMPIC: Court Sets February 12 Deadline for Rehab Plan ROYAL OLYMPIC: South African Creditors Auction Olympia Countess I R E L A N D JSG HOLDINGS: Fitch Rates EUR250 Million Senior Sub-notes 'CCC+' I T A L Y FIAT SPA: Sells Majority Stake in Fiat Engineering FIAT SPA: Names Antonio Bene Chief Executive of R&D Unit PARMALAT CAPITAL: Bondi Wants Current Liquidators Replaced L U X E M B O U R G VINTAGE CAPITAL: Two Floating-rate Notes Lowered to Junk Level N E T H E R L A N D S GETRONICS N.V.: S&P Ups Long-term Rating to 'B+' ISPAT GROUP: Ratings Off Watch on Improved Market Prospects VENDEX KBB: 'BB+' Ratings on CreditWatch Due to Possible Buyout N O R W A Y STOLT OFFSHORE: To Hold Conference Call Next Week R U S S I A NIKELSTROY: Declared Insolvent OAO IZHMASH-MOTO: Public Auction of Assets Set March 9 TUMENSKIYE AVIALINII: Court Declares Carrier Insolvent VOSTOKSPETSENERGO: Bankruptcy Proceedings to Start April 20 YANTAR: Under Bankruptcy Supervision for Nonpayment of Debt ZAPSIBGAZPROM NORTH: Starts Bankruptcy Proceedings ZLATOUSTOVSKY METALLURGICHESKY: Under Bankruptcy Supervision S W E D E N SCANDINAVIAN AIRLINE: Snowflake to Fly to 21 Destinations U N I T E D K I N G D O M ADVANCED SPECIALISED: In Administrative Receivership CANARY WHARF: Leases South Colonnade Building to Reuters CANARY WHARF: Posts Supplemental Offer Documentation EUROTUNNEL PLC: Operating Profit Down 18% to EUR170 Million EUROTUNNEL PLC: Chairman Bares Life-saving Galaxie Project EUROTUNNEL PLC: Senior Debt, Notes Ratings on CreditWatch FURNISS FOODS: Falls into Administrative Receivership GLEDHILL OF OSSETT: Grant Thorton Appointed Receivers HOLLINGER INC.: Board Suggests Acceptance of Press Holdings' Bid LYDFORD PRECISION: Creditors Meeting Set February 16 READY CREDIT: Appoints Joint Administrative Receivers SPRINGWOOD PLC: In Administrative Receivership SPRINGWOOD PLC: Company Profile TA KING: Appoints Administrative Receiver STEELS ENGINEERING: In Administrative Receivership TDA TRANSITIONS: Calls in Joint Administrative Receivers THORNTONS PLC: To Discuss Interim Results with Analyst Feb. 24 WESTPOINT FOODS: Bank of Scotland Calls in Receivers ********* =========== F R A N C E =========== ALSTOM SA: Secures EUR207 MM Worth of Contract from Govt --------------------------------------------------------- Societe Nationale des Chemins de Fer (SNCF), France's national railway, has awarded Alstom two orders worth EUR207 million. Locomotives for passenger service in the Paris region In a contract worth EUR170 million, Alstom will supply SNCF with 60 electric locomotives. They are scheduled to begin passenger service in the Ile de France region around Paris in the spring of 2006. From Alstom's PRIMA family and similar to the 210 freight locomotives that Alstom is currently delivering to the SNCF, the locomotives have been adapted for the requirements of passenger service in Ile de France. Alstom will assemble the locomotives at its site in Belfort, France, with components coming from Alstom sites in Tarbes, Villeurbanne, Le Creusot and Ornans. Renovation of regional trains The second order is for the renovation of regional trains worth EUR48 million awarded to an Alstom-led consortium. Alstom's share of the contract is EUR37 million. The renovation includes the installation of air-conditioning in the trains, which are called Z2 by SNCF, and a new design of the interior and passenger amenities. Alstom will lead the project and supply the major equipment. Alstom's consortium partner, Cannes La Bocca Industries, will carry out the renovation work for 20 trains in its facilities. Alstom will also supply SNCF with equipment for the renovation of 51 trains that the SNCF will carry out in its own workshops. Delivery of the renovated trains and of the equipment for the renovation to be carried out by SNCF is scheduled to be completed by March 2008. "As a long-standing partner of SNCF, Alstom shares its commitment to continuous improvement of service for its passengers," said Philippe Mellier, president of ALSTOM Transport. "The new PRIMA locomotives will join an Ile de France fleet that already includes nearly 400 double-deck passenger trains in service that Alstom has delivered. For the renovation project, Alstom will put into place an industrial plan that has proved successful in a program for renovation of other French regional trains." CONTACT: ALSTOM S.A. Investor Relations E. Chatelain Phone: 01 47 55 25 78 E-mail: investor.relations@chq.alstom.com ============= G E R M A N Y ============= SGL CARBON: S&P Removes 'B' Long-term Rating from Watch Negative ---------------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'B' long-term corporate credit rating on Germany-based SGL Carbon AG, one of the world's two leading players in the production of graphite electrodes for the electric arc furnace steel-making industry, and removed the rating from CreditWatch -- where it was placed on January 23, 2004 -- following the successful completion of SGL's rights issue and debt refinancing. The outlook is stable. At the same time, Standard & Poor's also affirmed its 'CCC+' long-term rating on SGL Carbon Luxembourg S.A.'s EUR270 million subordinated notes due 2012, and its 'B' long-term rating on SGL Carbon LLC's $116 million senior secured bank loan due 2009. The subordinated notes are rated two notches below the corporate credit rating because of structural and legal subordination vis- a-vis the senior secured lenders and some trade creditors. Following the successful completion of SGL Carbon's right issue and debt refinancing it will not face any significant debt amortization until 2009. The rating on the company continues to reflect SGL's weak profitability track record, exposure to the cyclical steel industry, expansion into potentially high-growth and high-risk industries, and very weak financial profile. Positive rating factors continue to include a strong market position in graphite electrodes and related industries, as well as good geographical diversification. SGL is expected to focus on cash-flow generation and debt repayment. Capital expenditures are expected to remain at or less than EUR54 million per year, and no further acquisitions are factored into the ratings. =========== G R E E C E =========== ROYAL OLYMPIC: Court Sets February 12 Deadline for Rehab Plan ------------------------------------------------------------- Royal Olympic Cruise Lines (Nasdaq: ROCLF) announced that the Greek court administering the section 45 proceeding regarding its subsidiaries has allowed the company an extension until Thursday, February 12, 2004, to reach agreement on a plan of restructuring with the holders of at least 51% of outstanding obligations. The company is in negotiations with its major creditor, Fortis Bank, which holds more than 51% of the total obligations. In addition the company announced that it has put all administrative staff in Greece on unpaid leave pending the outcome of the court ruling and discussions with financial institutions and various creditors. ROYAL OLYMPIC: South African Creditors Auction Olympia Countess --------------------------------------------------------------- Royal Olympia Cruise Lines Inc. (Nasdaq: ROCLF) announced that its ship Olympia Countess, which had been seized by creditors in Durban, South Africa, in December 2003, has been sold at auction under the auspices of South African courts. It is not expected that the company will receive any proceeds from this auction. Auction proceeds will be used to pay certain creditor debts. The company has also been notified by NASDAQ that it is in non- compliance with two of the Exchanges' Marketplace Rules. The company has 90 days to bring the company's minimum market value of publicly held shares to $5 million for a minimum of 10 consecutive days; and 180 days to bring its share price to the $1.00 level for ten consecutive days in order to bring itself back into compliance. SOURCE ROYAL OLYMPIA CRUISE LINES INC. James R. Lawrence Phone: +1-203-406-0106, ext. 13 ============= I R E L A N D ============= JSG HOLDINGS: Fitch Rates EUR250 Million Senior Sub-notes 'CCC+' ---------------------------------------------------------------- Fitch Ratings assigned a 'CCC+' rating to JSG Holdings plc's new EUR250 million senior subordinated notes due 2014. JSG Holdings plc is the newly formed intermediate holding company of the Jefferson Smurfit group (Smurfit or the group). The new issuance has no impact on the agency's existing ratings of the group's various debt instruments, whose ratings are affirmed as detailed below. Fitch notes that the structure of the new zero-coupon notes is such that their issuance does not change either the default probability or the recovery prospects of any of the group's existing debt instruments. This is because the notes will be subordinated to all existing liabilities within the group and will have no impact on the group's cash flow, and that their maturity falls beyond the maturities of all existing debt instruments. The impact on the group's various existing creditors is therefore immaterial, given the absence of an ability to default on the new notes, reflecting the lack of any cash-pay obligation and their deeply subordinated position within the structure. However, from a qualitative perspective, the agency notes that the use of the proceeds of the new notes is to make a payment to the group's shareholders, with the issuer, JSG Holdings plc, lending the net proceeds of the offering to its newly incorporated parent company, JSG Packaging Limited, which in turn will make the disbursement to shareholders. This transaction effectively allows the shareholders, including private equity sponsors Madison Dearborn, to withdraw equity from the business by substituting a tranche of subordinated debt. Given the already highly leveraged capital structure, with total debt/EBITDA at approximately 6x estimated FY03 EBITDA, and the cyclicality of the industry in which Smurfit operates, this is viewed as a less than positive signal in the context of the shareholders' commitment to the group. JSG Holdings plc was incorporated in January 2004, as an Irish plc, and has as its only asset its 100% ownership of the stock of Jefferson Smurfit Group Limited, the current parent of JSG Funding plc, which is the issuer of the existing 9 5/8% senior notes due 2012, the 10 1/8% senior notes due 2012 and the 15.5% subordinated notes due 2013 (the existing notes). The new notes will be general senior unsecured obligations of JSG Holdings plc. They will not be guaranteed by any of the issuer's subsidiaries and will thus be effectively subordinated to all of the existing and future indebtedness and other liabilities and preferred stock, if any, of the issuer's subsidiaries. This includes indebtedness under the existing senior credit facilities and the existing notes. The new issuance and the incorporation of the issuer and its new parent do not represent a change of control under the indentures of the existing notes, nor a breach in their covenants. The agency's existing ratings of instruments within the group's capital structure are: JSG Acquisitions -- Senior Unsecured 'B+'; JSG Acquisitions -- senior secured credit facilities 'BB'; JSG Funding plc -- senior notes 'B'; and JSG Funding plc -- junior notes 'B-' (B minus). At present, the Outlook for all ratings is Stable. CONTACT: FITCH RATINGS Marianela Gutierrez-Portillo, London Phone: +44 (0) 20 7417 3536 Daragh Murphy Phone: +44 (0) 20 7417 6344 Tony Stringer Phone: +44 (0) 20 7417 6332 ========= I T A L Y ========= FIAT SPA: Sells Majority Stake in Fiat Engineering -------------------------------------------------- Fiat sold 70% of Fiat Engineering to Maire Holding. The Di Amato family owns Maire Holding; the company's stockholder base also includes businessmen Alberto Gianni and Mario Resca. The purchase was concluded on the basis of a 100% equity value equal to EUR115 million. The 70% interest that was sold generates a gain of approximately EUR54 million at the consolidated level for the Fiat Group. Both parties have reserved for themselves put/call options to be exercised within the next three years for the remaining 30% interest. UBM (Unicredito Italiano Group) acted as Fiat's financial advisor. Turin, February 7, 2004 FIAT SPA: Names Antonio Bene Chief Executive of R&D Unit -------------------------------------------------------- Antonio Bene was appointed Chief Executive Officer of Elasis, a Fiat Group company headquartered in Pomigliano d'Arco (Naples) that carries out Research and Development activities in the field of automotive engineering. After having been at the helm of Tofas (the Turkish based joint venture between the Koc Group and Fiat Auto) for two years, Mr. Bene returned to Italy and replaced Domenico Martorana, who had been Chief Executive Officer of Elasis since its creation. Fiat thanks Domenico Martorana for his important professional contribution in many years of fruitful cooperation. Turin, February 4, 2004 PARMALAT CAPITAL: Bondi Wants Current Liquidators Replaced ---------------------------------------------------------- Enrico Bondi, in his role as the Parmalat S.p.A. Extraordinary Administrator, objects to the appointment of Gordon I. MacRae and James Cleaver as joint provisional liquidators for Parmalat Capital Finance Limited. Mr. Bondi, through Parmalat's Cayman Islands counsel, Turner & Roulstone, asks the Grand Court of the Cayman Islands to replace Messrs. MacRae and Mr. Cleaver with: (1) Russell Smith of PricewaterhouseCoopers, P.O. Box 219GT, Strathvale House, 90 North Church Street, George Town, Grand Cayman, Cayman Islands; and (2) Glen Trenouth of BDO Cayman. Mr. Bondi explains that PwC is fully involved in the worldwide investigation of the Parmalat Group and, therefore, has a global understanding of all of Parmalat Group's affairs. Mr. Bondi points out that it will be far more efficient, timely, and cost- effective for PwC to undertake the provisional liquidation of Parmalat Capital than for Ernst & Young Ltd. to do so. BDO will step in where there are decisions or parts of the process where an apparent conflict for PwC could arise. "PwC and I will be conducting investigations of the Company's affairs as part of our overall review of the Group's activities, and accordingly for Ernst & Young to repeat this work, without access to the full resources and information that PwC and I have as a result of our roles, would simply involve duplication and additional cost," Mr. Bondi tells the Cayman Court. Mr. Bondi contends that Messrs. MacRae and Cleaver, Ernst & Young directors in the Cayman Islands, are affiliated with a minority group of Parmalat creditors or noteholders represented by Ernst & Young in the United States. Ernst & Young, therefore, does not and could not represent the interests of majority of Parmalat creditors, including the creditors of Parmalat Capital Finance Limited. Based on unaudited financial statements as of September 30, 2003, four Parmalat subsidiaries -- Parmalat Finance Corporation BV, Parmalat Participacoes do Brasil, Parmalat Netherland BV and Olex S.A. make up more than 85% of the creditors of Parmalat Capital. Mr. Bondi further notes that Ernst & Young has been uncooperative with PwC. Accordingly, it is unlikely that PwC in tandem with Ernst & Young will be efficient. (Parmalat Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., 215/945-7000) =================== L U X E M B O U R G =================== VINTAGE CAPITAL: Two Floating-rate Notes Lowered to Junk Level -------------------------------------------------------------- Fitch Ratings downgraded Vintage Capital S.A.'s floating-rate notes as: Class A2 to 'BB' from 'AA+'; Class B to 'CC' from 'BB+', and Class C to 'C' from 'CCC'. At the same time Fitch has affirmed Class A1 notes at 'AA+' and removed all Classes from Rating Watch Negative. In December 2000, Vintage Capital S.A., a special purpose vehicle with limited liability incorporated under the laws of Luxembourg, acquired a bond portfolio originated by Banca Monte dei Paschi di Siena and a credit default swap portfolio originated by Bank of America. These acquisitions were financed by issuing EUR198 million floating-rate notes. The bond portfolio contains asset-backed securities, corporate, financial institution and sovereign debt. The credit default swap portfolio references corporates in Europe and North America. The final maturity date of the transaction is in December 2010. Fitch has reviewed the performance of this transaction in detail as a result of receiving two credit event notices since the last review. To date there have been three credit events in the credit default swap portfolio, the latest of which is Parmalat S.p.A. Two of these have already been settled and the credit protection payments have fully exhausted the reserve fund and resulted in a write-down of the unrated Class D notes. The loss on Parmalat is expected to be determined within two months. This will result in a further write-down of the Class D notes. The severity of the downgrade of the notes is primarily due to the underperformance of the collateral portfolio. Nine assets rated investment grade at closing have now either defaulted or are rated 'CCC'. Given these circumstances, the timing difference of repayments between the Class A1 and A2 notes has resulted in a sharp divergence in their respective credit quality. It should also be noted that at two most recent payment dates, the balance of the Class D notes was overstated and consequently these noteholders were overpaid. Fitch has received assurances that investor reports will be restated and action will be taken to correct the error. This error is not a factor in the downgrade of the notes. Deal information and historical performance data for this transaction is available on Fitch Ratings' Web site: http://www.fitchratings.com CONTACT: FITCH RATINGS Stefan Bund, London Phone: +44 (0) 20 7417 4334 John Feeney Phone: +44 (0) 20 7862 4049 ===================== N E T H E R L A N D S ===================== GETRONICS N.V.: S&P Ups Long-term Rating to 'B+' ------------------------------------------------ Standard & Poor's Ratings Services raised its long-term corporate credit rating on Dutch IT services group Getronics N.V. to 'B+' from 'B', and removed the rating from CreditWatch, where it had been placed on January 16, 2004. The outlook is positive. "The ratings action reflects Getronics' planned equity increase of EUR240 million, which, subject to shareholders' approval, will be implemented on February 27, 2003, and used to retire the company's subordinated, EUR250 million, 13% installment bond due in 2008," said Standard & Poor's credit analyst Patrice Cochelin. It also takes into account Getronics' better than expected unaudited figures for fourth-quarter 2003, notably preliminary EBIT before goodwill amortization and exceptionals of A?37 million (significantly up from EUR11 million posted for fourth- quarter 2002) and EUR420 million in cash and equivalents at Dec. 31, 2003 (up from EUR295 million a year earlier). The ratings on Getronics continue to reflect the company's low profitability in the currently soft IT-services market, and the need to fund ongoing restructuring costs. These factors are offset, however, by Getronics' strong market position in network and desktop-management services, particularly in Europe; solid client base; and significantly enhanced liquidity. "It is possible that the ratings on Getronics could be further raised, by one notch, if the company continues to improve its profitability and restores its free cash flow generation capacity while maintaining an appropriate liquidity position," added Mr. Cochelin. ISPAT GROUP: Ratings Off Watch on Improved Market Prospects ----------------------------------------------------------- Standard & Poor's Ratings Services said that as a result of stronger liquidity and the improving outlook for the steel industry, it has removed from CreditWatch its ratings on Dutch- registered steel consortium Ispat International N.V. (Ispat) and its subsidiaries Ispat Inland Inc., Ispat Europe Group S.A., and Ispat Mexicana S.A. de C.V., where they were placed on October 6, 2003. At the same time, the ratings on Ispat and the above- mentioned subsidiaries were affirmed, including the 'B-' long- term corporate credit rating on Ispat. The outlook is stable. The ratings on Ispat Sidbec Inc. remain on CreditWatch with negative implications, where they were placed on October 6, 2003, due to the company's near-term refinancing risk. A refinancing or amendment to extend the amortization schedule would likely lead to resolution of the CreditWatch status on Ispat Sidbec. "The rating action on Ispat follows an improved global market outlook for steel, good cash flow generation and improved liquidity, and the more favorable environment in which to address refinancing risks," said Standard & Poor's credit analyst Tommy Trask. A significant reduction in working capital in the second half of 2003 has improved the liquidity position of Ispat, despite high capital expenditures on the relining of the group's biggest furnace and extraordinary pension contributions at Ispat Inland. Despite weak profitability and high capital expenditures, Ispat generated $65 million of free cash flow in 2003. Liquidity will continue to be tight in 2004, given a further $111.5 million of pension contributions at Ispat Inland. The favorable high-yield market and improving outlook for the steel industry should allow Ispat to address refinancing issues at Ispat Inland. The outlook for the global steel industry is improving with rising steel prices offsetting higher input costs. This should help Ispat Inland, given that it sources a significant share of iron ore and coke from captive sources or under long-term contracts. The European market remains tough, however, with weak demand and a high risk of rising imports given the strength of the euro. Management's immediate challenge is to address refinancing and liquidity risks, in particular at Ispat Sidbec and Ispat Inland. Given that the steel market outlook is improving, after two difficult years, liquidity and refinancing risk continue to be the key focus of the ratings. VENDEX KBB: 'BB+' Ratings on CreditWatch Due to Possible Buyout --------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB+' long-term corporate credit and 'BB-' senior unsecured debt ratings on leading Dutch nonfood retailer Koninklijke Vendex KBB N.V. on CreditWatch with negative implications, following the group's recent announcement that it might be bought out by a private equity house. "There is no certainty that the process will result in an offer for Vendex KBB but if the deal does go through, it would likely result in an increase in the group's leverage, which could lead to lower ratings," said Standard & Poor's credit analyst Hugues de la Presle. "If Vendex KBB was not bought out, however, and the group continues to maintain its current business positions and credit metrics, the ratings would be affirmed." The ratings on Vendex KBB continue to be supported by the significant diversity and leading positions of the group's department stores, and "do-it-yourself", fashion, and electrical goods operations. The group's operating performance is, however, currently under pressure given the weak consumer spending in The Netherlands, which is compounded at the group's V&D department store chain by internal issues. The group had about EUR874 million ($1,103 million) of total debt outstanding at July 31, 2003. The resolution of the CreditWatch placement will depend on whether an offer for Vendex KBB by a private equity house is made, and what the implications in terms of leverage of any such offer are. =========== N O R W A Y =========== STOLT OFFSHORE: To Hold Conference Call Next Week ------------------------------------------------- Stolt Offshore S.A. (Nasdaq NM: SOSA; Oslo Stock Exchange: STO) will release its fourth quarter and full year 2003 results on Wednesday February 18, 2004. A conference call will be held to discuss the earnings and review business operations on Wednesday February 18, 2004 at 2.00 p.m. GMT. Participating in the conference call will be: (a) Tom Ehret- Chief Executive Officer (b) Stuart Jackson - Chief Financial Officer From 12 noon GMT the following information will be available on the Stolt Offshore website, http://www.stoltoffshore.com: (a) A copy of the fourth quarter and full year 2003 results press release (b) A copy of a presentation to be reviewed on the earnings call (c) Indepth video interviews with Tom Ehret, CEO and Stuart Jackson, CFO - also available in audio and transcript. This item will also be accessible on http://www.cantos.com. Conference Call Information Lines will open 10 minutes prior to conference call Date: Wednesday February 18, 2004 Time: 2 p.m. GMT Freephone Dial In Numbers: UK: 0800 953 0938 USA: 1 866 389 9773 Norway: 800 16533 France: 0805 110 466 Italy: 800 783 256 Netherlands: 0800 023 4993 International Dial In: +44 1452 569 113 Reservation No: 986420 Replay Facility details This facility is available from 5 p.m. GMT Wednesday February 18, 2004, until 5 p.m. GMT Wednesday February 25, 2004 Freephone Dial in Numbers: Dialing from the UK: 0800 953 1533 Dialing from the US: 1866 276 1167 International Dial In: +44 1452 55 00 00 Passcode: 986420 # Alternatively a live Web cast and a playback facility will be available on the Company's Web site http://www.stoltoffshore.com Stolt Offshore's net loss for 2003 is expected to be between $400 million and $450 million. This figure reflects project losses, asset writedowns, non-recurring restructuring charges and provisions resulting from a more conservative view being adopted in respect of revenue recognition. This latter point, taken together with current negotiations with clients on 2003 receivables, accounts for the range in estimated losses. CONTACT: STOLT OFFSHORE M.S. LIMITED Julian Thomson Group Manager, Communications and Investor Relations Phone: +44 1224 718436 +1 877 603 0267 (US toll free) E-mail: julian.thomson@stoltoffshore.com =========== R U S S I A =========== NIKELSTROY: Declared Insolvent ------------------------------ The Arbitration Court of Murmanskaya Oblast, in an order dated December 11, 2003 on the case No. 42-4040/03-7, declared insolvent "Nikelstroy" (Closed corporation). Bankruptcy Proceedings thereto has been started. Closing of the register of creditor demands is on April 7, 2004. Nikelstroy is based in 2"A", Metallurgov Av., Monchegorsk, 184500 Murmanskaya Oblast. OAO IZHMASH-MOTO: Public Auction of Assets Set March 9 ------------------------------------------------------ The bankruptcy administrator of OAO "Izhmash-Moto," a public limited company announced there will be an open tender for the assets of the company in an auction on March 9, 2004. Up for bidding are: RUB31.984 million worth of bills of exchange (LOT1); 96,188 pieces of registered equities of OAO "Izhmash- Auto" (public limited company) (LOT2); 2,878,400 pieces of registered equities of OAO "Avtomobilniye Komponenti IZHMASH (public limited company). The lot starting price is RUB287.840 million (approximately US$10 million). Other stocks within LOT3-LOT11 will also be offered. Documents for participation are accepted February 6, 2004 to March 5, 2004. An open tender for production and stock facility of "Izhmash-Moto" will be declared on March 11, 2004. TUMENSKIYE AVIALINII: Court Declares Carrier Insolvent ------------------------------------------------------ The Arbitration Court of Tumenskaya Oblast, in an order dated January 22, 2004 on the case No. 70-77/3-02, declared OAO "Tumenskiye Avialinii" insolvent. Tumenskiye Avialinii (Tumen Airlines) is a public limited company domiciled in "Roschino" airport, 625033, Tumen. Consequently, the one-year bankruptcy proceedings of the debtor is now underway. Creditors may file their claim on or before April 7, 2004. VOSTOKSPETSENERGO: Bankruptcy Proceedings to Start April 20 ----------------------------------------------------------- The Arbitration Court of Irkutskaya Oblast, on January 20, 2004, ordered the commencement of bankruptcy proceedings for "Vostokspetsenergo," a limited liability company. The case has been docketed as case No. 19-338/04-38. Initial proceedings are scheduled for 11:00 a.m., April 20, 2004. Creditor claims are accepted on or before March 7, 2004. CONTACT: VOSTOKSPETSENERGO 11A, Pionerskaya St. P/O 2895, 665717 Bratsk, Irkutskaya Oblast YANTAR: Under Bankruptcy Supervision for Nonpayment of Debt ----------------------------------------------------------- A Regional Arbitration Court in Russia placed Baltic Shipyard "Yantar" under bankruptcy supervision, the first stage towards external administration of the company. OAO "Vneshtorgbank," a public limited company, initiated this procedure due to non- payment of a US$20 million bank loan that "Yantar" received in the mid-90s. OAO "Vneshtorgbank" is highly likely to recover the amount since "Yantar" has a well-defined program for 2004. It is scheduled to complete construction of "Yaroslav Mudry" escort ship. Moreover, the company has obtained a large-scale state order for construction of ships. Supervision procedure will cover only state control over large-scale transactions. Russian Shipbuilding Agency CEO Vladimir Pospelov has suggested an alternative for setting up a Russian Shipbuilding Concern including "Yantar" company. The shipyard will be retained as an integral industrial facility and will continue ongoing activities. Completion of state order will resolve partially the company's indebtedness, but its future remains challenging. ZAPSIBGAZPROM NORTH: Starts Bankruptcy Proceedings -------------------------------------------------- The Arbitration Court of Saint-Petersburg and Leningradskaya Oblast, on December 9, 2003, commenced bankruptcy proceedings for OOO "Zapsibgazprom Northwest" Ltd. The case is docketed as case No. 56-22478/02. Creditors have until April 7, 2004 to file their claims. ZLATOUSTOVSKY METALLURGICHESKY: Under Bankruptcy Supervision ------------------------------------------------------------ The Arbitration Court of Chelyabinskaya Oblast has enforced a bankruptcy supervision procedure on OAO "Zlatoustovsky Metallurgichesky Kombinat," a public limited company. Alexander Shaburov is assigned provisional administrator, an official statement of the company says. Zlatoustovsky Metallurgichesky Kombinat has accounts payable of approximately RUB1.5 billion. The company has been in dispute with "Geolink" group and "Sinara" group for sometime now. In the middle of last year, "Sinara" sold its stake in the company. Thereafter, the company asset was transferred to a newly established group, "Zlatoustovsky Metallurgichesky Zavod." =========== S W E D E N =========== SCANDINAVIAN AIRLINE: Snowflake to Fly to 21 Destinations --------------------------------------------------------- Effective March 28, snowflake will fly on Thursdays and Sundays to a further two destinations from Stockholm. Sales started Saturday, February 7. The destinations are: (a) Bilbao, Spain - tapas, the Guggenheim museum, surfing on Atlantic waves... (b) Olbia, Sardinia - sun, bathing and diving, Italian food, fantastic scenery... "We are continuing to introduce inexpensive, direct flights to new, attractive destinations," says Ludmilla Lindecrantz, head of snowflake, Scandinavian Airlines' low-price alternative. At the same time, the number of flights per week will be increased between Stockholm and: (a) Athens, Greece, to Mondays, Tuesdays, Wednesdays and Fridays (b) Nice, France, to Mondays, Wednesdays, Fridays, Saturdays and Sundays In its summer program, snowflake is also operating Stockholm to/from Alicante, Ankara, Athens, Beirut, Belgrade, Bologna, Budapest, Inverness, Istanbul, Lisbon, Lyons, Malaga, Nice, Palma de Mallorca, Split, Prague, Rome, Valletta and Venice. Bookings can be made simply via http://www.flysnowflake.comor via snowflake's Swedish booking center on Phone number: 0771-66 10 00. One-way tickets booked over the Internet cost from SEK595 including taxes and all charges. A surcharge of SEK25 is added for telephone bookings. Complete travel offering on Swedish site "To assist travelers who want to compose their own trips, partnerships have been established on http://www.flysnowflake.com,"Ludmilla Lindecrantz reports. Snowflake's Swedish website now contains a complete travel offering: inexpensive flights, hotels, car hire and insurance. (a) Using hotels.com, travelers can book hotels with a "lowest- price guarantee" at snowflake destinations and other locations. (b) Europeiska offers cancellation coverage and travel insurance, including policies that complement the protection offered by home insurance. (c) Through Holiday Autos, the market's lowest car-hire prices are offered at all of snowflake's destinations. In addition to the original English version, snowflake's website is now also available in Swedish and a Danish version will be soon be launched. Since operations began in March 2003, the site has had 3.5 million visitors. CONTACT: SNOWFLAKE Ludmilla Lindecrantz, Head Phone: +46 8 797 2694 =========================== U N I T E D K I N G D O M =========================== ADVANCED SPECIALISED: In Administrative Receivership ---------------------------------------------------- Name of Company: Advanced Specialised Production Limited Reg No: 04601758 Nature of Business: Metal Manufacturers Trade Classification: 06 Date of Appointment of Joint Administrative Receivers: January 26, 2004 Name of Person Appointing the Joint Administrative Receivers: Cattles Invoice Finance (Oxford) Limited Joint Administrative Receivers: Smith & Williamson Limited No 1 Bishops Wharf, Walnut Tree Close, Guilford GU1 4RA Receivers: Roger Tulloch Anthony Murphy (Office Holder Nos 9174, 8716) CANARY WHARF: Leases South Colonnade Building to Reuters -------------------------------------------------------- Agreements Signed Canary Wharf Group plc announces that it has signed Agreements for Lease for the pre-let to Reuters of approximately 283,000 sq. ft of space in the building at 30 The South Colonnade, Canary Wharf. Reuters, the global information company, will take over the entire building in the spring of 2005 as their headquarter office. This formal exchange of contracts confirms that Reuters will lease 239,000 sq. ft on a 15-year lease. The additional 44,000 sq. ft will be leased on a separate lease with a 5th year break exercisable upon payment of a 1.5-year rental penalty as well as a further break at the 10th year. After LUL vacates the building Canary Wharf will, at its own expense, carry out upgrades to a value of EUR3 million. As part of the transaction Canary Wharf has granted to Reuters a rent free period of approximately 12 months equal to the value of Category A works and in addition Canary Wharf will agree to take over three of Reuters' leasehold properties. Those properties are expected to represent an exposure equivalent to approximately 2.5 years rent free at 30 The South Colonnade. CWG will also acquire the freeholds of Reuters' current Headquarters at 85 Fleet St and the St. Brides House building at an approximate price of EUR32.5 million with a short leaseback of Reuters Headquarters to the value of approximately EUR1.6 million per annum until they move to Canary Wharf in May 2005. Should Canary Wharf decide to sell the buildings, a profit sharing agreement with Reuters will share the profit achieved over and above acquisition and expense costs. ***** Reuters have been granted a 15-year lease for 239,000 sq. ft that reflects an initial rent across the office space of EUR35 per sq. ft in years 0-5. There is a fixed annual uplift on the office space at years 6-10 to EUR40 per sq. ft. In addition Reuters have been granted a separate lease for 15- years on an additional 44,000 sq. ft with a tenant option to break at the 5th and 10th years that reflects an initial rent across the office space of EUR35 per sq. ft during years 0-5. There is a fixed annual uplift on the office space at years 6-10 to EUR40 per sq. ft. Details of a rental break penalty are given in the text of the announcement. CONTACT: CANARY WHARF GROUP PLC Wendy Timmons Phone: 020 7537 5025 CANARY WHARF: Posts Supplemental Offer Documentation ---------------------------------------------------- Canary Wharf on Monday posted to Canary Wharf Shareholders documentation relating to the increased recommended offer of 275 pence per Canary Wharf Share announced last Thursday. Silvestor is also posting a supplemental AIM document to Canary Wharf Shareholders on the same day. The Independent Committee welcomes the improvement in the terms of the Acquisition, which amounts to a material increase in the value being offered to Canary Wharf Shareholders with higher total consideration, involving an increase in the number of Class B Shares and thus improved liquidity available to Canary Wharf Shareholders who wish to retain an ongoing participation in the future of the Canary Wharf Estate or, if they so elect, the ability for shareholders to receive consideration of 275 pence per share in cash. The Independent Committee believes that the Scheme is capable of being approved at the Shareholder Meetings still scheduled for February 23, 2004 and unanimously recommends that Canary Wharf Shareholders vote in favor of the Acquisition. Commenting on the Acquisition, Stephane Theuriau, a Director of Silvestor, said: "Ours is the only offer in the best interests of shareholders. Shareholders should return their proxies to ensure they get 275 pence per share from Silvestor instead of 270 pence under Brascan's hostile offer." Terms used in this announcement shall have the same meanings given to them in Part 9 of the Scheme Document. CONTACT: MORGAN STANLEY Phone: +44 20 7425 5000 (Financial adviser to Silvestor, Silvestor Holdings, MSREF, Morgan Stanley Real Estate Special Situations Fund II and Princes Gate Investors) ROTHSCHILD Mark Warham Brian Magnus Phone: +44 20 7280 5000 (Financial adviser to Silvestor, Silvestor Holdings and Simon Glick) HOARE GOVETT Alex Midgen Ben Davey Phone: +44 20 7678 8000 (Broker to Silvestor and Silvestor Holdings) TULCHAN COMMUNICATIONS Nigel Mills Ranald McGregor-Smith Phone: +44 20 7353 4200 SMITHFIELD FINANCIAL (Public relations adviser to Silvestor) Andrew Grant Katie Macdonald-Smith Phone: +44 20 7360 4900 (Public relations adviser to Simon Glick) LAZARD John Antcliffe Phone: +44 20 7187 2000 (Financial adviser to the Independent Committee of Canary Wharf) CAZENOVE William Rucker Maxwell James Phone: +44 20 7588 2828 (Financial adviser to the Independent Committee of Canary Wharf and broker to Canary Wharf) BRUNSWICK Duncan Hunter Richard Cotton Phone: +44 20 7404 5959 (Public relations adviser to Canary Wharf) James Bradley Fiona Laffan EUROTUNNEL PLC: Operating Profit Down 18% to EUR170 Million ----------------------------------------------------------- Eurotunnel, operator of the Channel Tunnel, announced its preliminary results for the year-ended December 31, 2003. Richard Shirrefs, Chief Executive, said: "2003 was a tough year with poor market conditions and intense price competition. Our excellent service quality enabled us to strengthen our market share, whilst a constant focus on improving efficiencies in the business enabled us to hold our costs stable. We are also pleased to see the recent improvement in passenger numbers from Eurostar. We reduced our debt by a further EUR155 million, bringing the total debt reduction since the 1998 financial restructuring to EUR1.2 billion. "This time last year we said that Governments, the Railways and Eurotunnel needed to work together to increase traffic. To achieve this, the structural problems of the cross-Channel rail industry, including under-utilization of expensive infrastructure, financial losses of all the operators, and conflicting contractual relationships, need to be addressed. "We have made proposals to the U.K. and French Governments and our industry partners which seek to stimulate growth in rail passenger and rail freight volumes, improve our profitability, and get our financing onto a sensible and sustainable basis once and for all." To see profit and loss account: http://bankrupt.com/misc/Eurotunnel_ProfitandLoss.htm To make a valid comparison between 2003 and 2002 in this analysis, the operating results for 2002 have been restated at the exchange rate used for the preparation of the 2003 results (GBP1=EUR1.435) as set out in the tables. Turnover Operating revenue fell by 5% to EUR566 million. Revenue from Shuttle Services fell by 11% to EUR309 million at constant exchange rates, principally due to the impact of lower average yields from the truck and car businesses, which offset increased carryings in the truck business. Railways revenue increased slightly to EUR232 million as a result of inflation, and remains protected until November 2006 by Minimum Usage Charge payments under the Rail Usage Contract. Revenue of EUR25 million was generated from non-transport activities in 2003, including retail and telecoms revenues, and proceeds of EUR7 million from the sale of land in the U.K. Other income of EUR18 million largely comprised the release of provisions for large-scale maintenance. The increase in this non-cash item offsets increased operating costs during 2003 relating to the mid-life refit of the Shuttle fleet. Operating profit The operating profit of EUR170 million was down 18%. Operating costs were stable at EUR259 million, with increases in insurance premiums and maintenance costs relating to the mid-life refit of the Shuttle fleet offset by cost reductions including lower energy costs. The increase in cost of sales reflects the value of land stocks disposed of during the year. At EUR146 million, depreciation and provisions increased by GBP5 million compared to 2002 as a result of higher Tunnel depreciation charges. Net result The net result before impairment charge was a loss of EUR34 million. Net interest costs in 2003 were EUR318 million, reflecting an average interest rate of 4.9%. The increase compared to 2002 reflects a EUR17 million non-recurring reduction to 2002 interest charges as a result of financial operations concluded during that year. The reduction in 2003 interest charges resulting from debt repurchases, contributed to an underlying improvement of GBP10 million in the interest charge for 2003 compared to 2002. The exceptional profit of EUR115 million comprised the profit arising from three U.K. leasing company acquisitions, and the profit generated from the repurchase of debt at a substantial discount to face value with the cash proceeds of such transactions. The valuation of the Group's assets has been carried out in accordance with IAS36 (equivalent to FRS11), which compares the net book value of assets with the discounted future value of cash flows. The result of this valuation is an impairment charge of EUR1.3 billion. The application of this standard at December 31, 2003 gives rise to a value in use EUR1.3 billion lower than the net book value of assets. This impairment charge reflects lower projected cash flows in the light of the 2003 results and the consequences of these lower projected cash flows on the sustainable level of debt, together with higher market interest rates. The impairment charge recorded in the accounts reduces shareholders funds and will reduce the future depreciation charge by approximately EUR17 million per annum. This impairment charge has no impact on the Group's liquidity position or its loan covenants. The net loss for the year after the impairment charge was EUR1,334 million. To see cash flow statement: http://bankrupt.com/misc/Eurotunnel_Cashflow.htm Cash flow and interest cover Cash flow from operating activities was EUR315 million in 2003. The majority of the reduction compared to 2002 was due to lower Shuttle revenues, with the balance accounted for by exchange rate and working capital movements. Net capital expenditure fell from EUR41 million in 2002 to EUR25 million in 2003, resulting in net cash flow from operating activities after capital expenditure of EUR290 million. Interest cover after capital expenditure (which measures cash flow after capital expenditure as a proportion of the net interest charge due) was 90%. This compares with the 2002 result of 102%, which included a non-recurring benefit of EUR17 million from financial operations. Financial operations Eurotunnel's EUR6.4 billion debt carries an average interest rate of 4.9%. No debt repayments are due before 2006. During 2003, three U.K. leasing companies were acquired, generating EUR25 million in cash. With this cash, together with the cash generated from similar transactions in 2002, Eurotunnel repurchased or repaid EUR155 million of debt. Interest charges were reduced by EUR5 million. Strategic developments Radical restructuring of the cross-Channel rail industry Eurotunnel has made proposals to the U.K. and French Governments and its industry partners, which seek to address the structural problems faced by the cross-Channel rail industry. These proposals are set out in a separate press release. Rail freight traction service Eurotunnel's request for an operator's license in France is being considered by the French Transport Ministry and a decision is expected imminently. Starting in early 2005, Eurotunnel will haul trains between Bale and Dollands Moor on a rail freight corridor linking Milan (Italy), Bale (Switzerland), Metz (France, for connections to Germany and Eastern Europe), Dourges (France), and the Midlands. There is already significant interest from potential customers. The service is expected to comprise five trains per week in each direction on this route from 2005, increasing to 30 trains per week in each direction by 2008. The introduction of this new rail freight service via the Channel Tunnel will reduce journey times by up to one day compared to shipment across the North Sea, and have significant environmental benefits by shifting freight from road to rail. Eurotunnel is actively exploring other rail freight route opportunities. Rail freight terminal Eurotunnel has commenced work on an intermodal rail freight terminal, allowing continental gauge trains to access U.K. markets for the first time. FIRST (Folkestone International Rail Freight Services Terminal), which is expected to open in mid-2005, will be built alongside Eurotunnel's existing tracks on its Folkestone site. This will provide the only access to UK markets for larger continental rail vehicles. The intermodal terminal will initially be able to handle up to four trains per day in each direction. It will be equipped to handle 'piggyback' trailers, high-cube swapbodies and containers on conventional flat wagons. If traffic from these two initial projects develops as currently expected the net contribution would be around GBP13 million per annum, almost doubling the contribution compared to today's rail freight traffic levels. However, these services are also designed to stimulate interest in cross-Channel rail freight and encourage other operators to develop services. This would further increase the overall contribution of rail freight. Concluding, Charles Mackay, Chairman of the Joint Board, said: "Although commentators are increasingly more optimistic about the overall economic prospects for 2004, there are still no signs of improvement in the cross-Channel market. The market remains depressed and price competition is fierce. At this point it is therefore difficult to predict when our shuttle business will pick up again. "We have put forward proposals to address the current structural problems of the cross-Channel rail industry. It took courage, imagination and real political will to build the Channel Tunnel. We need a little more of each to finally get the most out of one of the great engineering triumphs of the 20th century." Eurotunnel manages the infrastructure of the Channel Tunnel and operates accompanied truck shuttle and passenger shuttle (car and coach) services between Folkestone, U.K. and Calais/Coquelles, France. It is market leader for cross-Channel travel. Eurotunnel also earns toll revenue from other train operators (Eurostar for rail passengers, and EWS and SNCF for rail freight) that use the Tunnel. Eurotunnel is quoted in London, Paris and Brussels. To view group financial statements, click http://bankrupt.com/misc/Eurotunnel_GroupResults.htm CONTACT: EUROTUNNEL Xavier Clement Phone: + 33 1 55 27 36 27 EUROTUNNEL PLC: Chairman Bares Life-saving Galaxie Project ---------------------------------------------------------- Message to shareholders from the chairman of the Joint Board, and Chief Executive: A difficult environment Having made good progress until 2002, the Group was hard hit in 2003 by the economic climate and the international political situation, which were particularly unfavorable to the tourism and transport sectors. The ferries, faced with a depressed market and excess capacity, adopted a pricing policy that impacted on average market yields and therefore on the income generated by our primary shuttle business. This more than cancelled out the increased volumes on our truck shuttle service. In spite of this difficult environment, the outstanding quality of our services enabled us to strengthen our position in the market. The sustained effort we have put into increasing productivity allowed us to hold operating costs stable. We were therefore able to limit the reduction in operating profit to 18%, which at GBP170 million is still at a very profitable 30% of our operating revenues of GBP566 million (down 5%). The net loss before impairment charge is limited to GBP34 million thanks to an exceptional profit of GBP115 million from financial operations. We have recorded an impairment charge of GBP1,300 million as explained in the financial analysis. This impairment charge does not impact on the Group's cash position or loan agreements, and reduces the annual depreciation charge by approximately GBP17 million from 2004. During the year, we reduced our debt by a further GBP155 million, bringing the total reduction of debt since the financial restructuring of 1998 to GBP1.2 billion. The average interest rate, at 4.9%, is very low and no loans fall due before 2006. Although commentators are increasingly more optimistic about the overall economic prospects for 2004, there are still no signs of improvement in the cross-Channel market. The market remains depressed and price competition is fierce. At this point it is therefore difficult to predict when our shuttle business will pick up again. Strategic progress At the last Annual General Meetings, we presented three new strategic directions for the next few years to reinforce the existing strategy of developing shuttle revenues, controlling costs and reducing debt. The new strategic initiatives focused on becoming a driving force for rail freight development, acting as a dynamic partner in regional development, and instigating proposals to restructure the cross-Channel rail industry. We made considerable progress in all three areas in 2003. As far as rail freight is concerned, our operator's license will enable us to launch a new cross-Channel service. From early 2005, Eurotunnel will be able to run trains between Basle in Switzerland and Dollands Moor near Ashford in Kent. This is the key sector of the freight corridor linking Milan, Basle, Metz (for connections to Germany and Eastern Europe), Dourges (near Lille) and the industrial and commercial centres of the United Kingdom. Several potential customers have already shown their interest in this service. In addition, we are starting construction of an intermodal freight platform at our Folkestone terminal, which will for the first time allow standard Continental gauge goods trains to access the British market. This new terminal should be operational by 2005; this will then be the only point of entry to the United Kingdom for Continental wagons of this gauge. If the traffic resulting from these two projects develops as we envisage, we can expect the contribution of our rail freight business to double. Moreover, these new services should spark off interest in cross-Channel rail freight and encourage other operators to use the Tunnel. As an active partner in regional development, we are working with local authorities to promote and implement all the economic, cultural and tourist-related initiatives that are likely to increase the attractiveness of Kent and the Nord-Pas de Calais and therefore, in the long term, increase use of the Tunnel. Finally, the most important part of our strategy consists in finding solutions to the structural problems facing the cross- Channel rail industry, and Eurotunnel announced its Galaxie Project. Galaxie Project Eurotunnel has made proposals to the U.K. and French Governments and its industry partners, which seek to address the structural problems faced by the cross-Channel rail industry. The cross-Channel rail industry currently suffers from under- utilization of expensive infrastructure, financial losses and conflicting contractual relationships. In particular the high level of access charges paid by rail companies for the use of the Channel Tunnel is holding back traffic growth. Eurotunnel's current financial structure leaves it with no scope to reduce these charges unilaterally. Eurotunnel has conducted a detailed analysis of the industry for over a year in order to identify solutions for the complex issues underlying the industry's difficulties. The key elements of any solution must include the alignment of the interests of the cross-Channel operators and clear incentives to increase traffic through the Tunnel, within a stable financial structure. Eurotunnel is proposing to significantly reduce access rates for train operators in a manner that will align the incentives of the cross-Channel operators and reduce their costs. This should enable Eurostar to increase its traffic to existing destinations and would assist the introduction of new destinations such as Amsterdam. Lower Tunnel access rates will also considerably increase the size of the economically viable cross-Channel rail freight market. The reduced access rates should therefore be partly compensated for by increased traffic. To achieve these access charge reductions, Eurotunnel requires a more stable financial structure, which would involve a significant reduction in the amount of its debt and interest payments, as well as an extension of debt maturities. Eurotunnel and its advisers have developed a series of detailed proposals to meet these objectives. Eurotunnel now expects constructive engagement with its industrial and financial partners. Eurotunnel is seeking to reach agreement in principle during 2004 with implementation in 2005. However, the issues are complex and there can be no assurance as to the eventual outcome at this stage. ***** Ten years after the opening of the Tunnel, it is clear that our structural problems, which are due to the strictly private- sector funding of the project, an excessively high debt level and insufficient rail traffic, cannot easily be resolved without a comprehensive and innovative approach to the problems faced by all the stakeholders of the cross-Channel rail industry. The Galaxie project gives our shareholders realistic hope of seeing Eurotunnel emerge from its financial difficulties once and for all. By contrast, the unrealistic and often mutually contradictory ideas put forward by certain dissident shareholders do not represent a strategic solution for the future of the company and carry a serious risk that shareholders lose all the value of their investment. Getting the Tunnel built required courage, imagination and real political will. [W]e need a little more of each of these, plus the support of all concerned -- our shareholders and employees, our industrial partners and the authorities -- to turn the greatest civil engineering project of the 20th century into a profitable investment. Charles Mackay, Chairman of the Joint Board Richard Shirrefs, Chief Executive CONTACT: EUROTUNNEL Kevin Charles Phone: + 44 (0) 1303 288728 BRUNSWICK GROUP Giles Croot Phone: + 44 (0) 20 7404 5959 EUROTUNNEL Investor enquiries Xavier Clement Phone: + 33 1 55 27 36 27 EUROTUNNEL PLC: Senior Debt, Notes Ratings on CreditWatch --------------------------------------------------------- Standard & Poor's Ratings Services placed its senior debt ratings on Eurotunnel, as well as related non-guaranteed Fixed- Link Finance's (FLF) Class A, B, and C notes and non-guaranteed FLF 2 notes, on CreditWatch with negative implications. The action follows the uncertainty created by Eurotunnel's announcement of the need for an unspecified debt restructuring, as well as the risk of further downward pressure on shuttle yields. Eurotunnel manages the Channel Tunnel link between the U.K. and France: it provides access for rail passenger and freight services and operates its own truck-, car- and coach-shuttle service. The company's EUR231-million Senior Secured Bank Loan, due in 2012, is rated 'A-'. FLF and FLF2 notes are special purpose vehicles that own Eurotunnel debt. "Although Standard & Poor's had expected the requirement of a debt restructuring of lower-ranking Eurotunnel debt instruments and extension of the debt maturity profile of junior debt, it is unclear whether any future debt restructuring proposals now might affect senior or junior secured debt principal or interest charges," said Standard & Poor's ratings analyst Karl Nietvelt. The intense price competition also continues to be of concern to Standard & Poor's. Additional reductions in shuttle yield are understood to have taken place at the end of last year, and Standard & Poor's will need to evaluate further the extent to which intensifying competitive conditions is likely to put further downward pressure on shuttle revenues for 2004, which had so far not been anticipated. In order to resolve the CreditWatch, Standard & Poor's will need to discuss with management and interested parties the potential impact of future debt restructuring proposals. It is, however, likely that some uncertainty will remain for some time, as the outcome of industry negotiations and debt restructurings are not expected to be known before the end of 2004. FURNISS FOODS: Falls into Administrative Receivership ----------------------------------------------------- Name of Company: Furniss Foods Limited Reg No: 02113077 Nature of Business: Biscuit, Baked Product Manufacturer Furniss foods is an established and progressive food manufacturer within the baked goods sector specializing in biscuits, oat based products and industrial ingredients for other food producers. Incorporated in 1886 as Furniss & Co Limited, Furniss grew from a small family bakers, operated by the founder John Cooper Furniss, servicing customers primarily within the Truro area to become a major player in the gift market throughout the South- West of England, expanding to cover the main seaside resorts by the early 1980's. The Furniss of Cornwall brand is amongst the strongest in its sector and is a familiar gift for both holidaymakers and locals alike. With its forward thinking management team, Furniss has expanded into a further 2 distinct sectors since this time, namely the snacks market under the Cornish Cookie Company brand and into the ingredients sector servicing the major dairy companies. Trade Classification: 1582 Date of Appointment of Joint Administrative Receivers: January 23, 2004 Name of Person Appointing the Joint Administrative Receivers: Bank of Scotland Joint Administrative Receivers: KPMG Corporate Recovery 100 Temple Street, Bristol BS1 6AG Receivers: Richard John Hill Brian Green (Office Holder Nos 8027, 8709) Company Address: Druids Road, Redruth Cornwall TR15 3RW Phone: 01209-215425 Fax: 01209-215176 E-mail: http://www.furniss-foods.co.uk GLEDHILL OF OSSETT: Grant Thorton Appointed Receivers ----------------------------------------------------- Name of Company: Gledhill of Ossett Limited Reg No: 00799950 Nature of Business: Service Station and Car Sales Trade Classification: 19, Motor Vehicles and Petrol Sales Date of Appointment of Joint Administrative Receivers: January 23, 2004 Name of Person Appointing the Joint Administrative Receivers: HSBC Plc Joint Administrative Receivers: Grant Thornton St. Johns Center 110 Albion Street, Leeds LS2 8LA Receivers: Kevin R. Mawer Michael E. G. Saville HOLLINGER INC.: Board Suggests Acceptance of Press Holdings' Bid ---------------------------------------------------------------- Hollinger Inc.'s (TSX: HLG.C; HLG.PR.B; HLG.PR.C) Board of Directors has recommended that the offers by Press Holdings International Limited announced on January 18, 2004, for all of the retractable common shares and Retractable Non-Voting Preference Shares Series III be accepted by the holders of such shares. The Board of Directors is making no recommendation to the holders of the Exchangeable Non-Voting Preference Shares Series II as to whether to accept or reject the Offers by PHIL to purchase all of such shares. The consideration under the Offers is payable in cash on the basis of $8.44 per Common Share, $9.53 per Series II Preference Share and $10.175 per Series III Preference Share. The Offers expire at 8:00 a.m. (Eastern Standard Time) on March 3, 2004 unless extended or withdrawn. Hollinger's Directors' Circular, which will contain these recommendations and the detailed reasons for these recommendations, will be mailed to all shareholders on or about February 10, 2004. The Directors' Circular will also be available on SEDAR (http://www.sedar.com/)and on Hollinger's website (http://www.hollingerinc.com/). As previously announced, the Board of Directors established a committee of independent directors to consider the Offers. The Independent Committee retained Westwind Partners Inc. and Blair Franklin Capital Partners Inc. as its financial advisors to provide the minority shareholders with fairness opinions in respect of the Offers. The report of the Independent Committee, and the fairness opinions of the financial advisors, were considered at a meeting of the Board of Directors. In their opinions, a copy of which will be included in the Directors' Circular, the financial advisors each concluded that the consideration provided in the Offers is fair, from a financial point of view, to the minority holders of Common Shares and Series III Preference Shares. With respect to the Series II Preference Shares, the financial advisors explained that, as of February 5, 2004, the consideration provided in the Offers for such shares was, in their opinion, inadequate, from a financial point of view, as of that day to minority holders of such shares. They stated that their opinions were predicated to a significant extent on the recent rise in the trading price of the shares of Class A common stock of Hollinger International Inc., for which the Series II Preference Shares are exchangeable, as well as fluctuations in the U.S./Canada currency exchange rate. The financial advisors cautioned that, should the trading price of the Class A common stock of International, which closed on the trading day immediately prior to the announcement of the Offers at US$15.52 per share and on February 4, 2004 at US$17.10 per share, decline, the holders of Series II Preference Shares may realize greater value by accepting the Offer for such shares. Of the aggregate consideration being offered pursuant to the Offers for all of the shares of every class of Hollinger, amounting to approximately CDN$425.5 million, the aggregate amount being offered for the Series II Preference Shares is approximately CDN$36.0 million, of which approximately $11.7 million is being offered to the minority holders of such shares. Hollinger's principal asset is its approximately 72.6% voting and 30.3% equity interest in Hollinger International Inc. Hollinger International Inc. is a global newspaper publisher with English-language newspapers in the United States, Great Britain and Israel. Its assets include The Daily Telegraph, The Sunday Telegraph and The Spectator and Apollo magazines in Great Britain, the Chicago Sun-Times and a large number of community newspapers in the Chicago area, The Jerusalem Post and The International Jerusalem Post in Israel, a portfolio of new media investments and a variety of other assets. On June 30, 2003, the company's net capital deficit tops $442 million while working capital deficit is at $398.8 million. LYDFORD PRECISION: Creditors Meeting Set February 16 ---------------------------------------------------- Notice is hereby given pursuant to Paragraph 51 of Schedule B1 of the Insolvency Act 1986, that a Meeting of the Creditors of Lydford Precision will be held at the Quality Hotel, Penn Road, Wolverhampton on February 16, 2004 at 10:00 a.m. for the purposes of considering and, if thought fit, approving the proposals of the Administrators for achieving the aim of the Administration Order, and also to consider establishing and, if thought fit, to appoint a Creditors' Committee. A person authorized under Section 375 of the Companies Act 1985 to represent a Corporation must produce to the Chairman of the Meeting a copy of the Resolution from which their authority is derived. The copy Resolution must be under seal of the Corporation, or certified by the Secretary or Director of the Corporation as a true copy. Please note that a Creditor is entitled to vote only if he has delivered to the Administrators not later than 12:00 noon on February 13, 2004 details in writing of the debt claimed to be due from the Company, and the claim has been duly admitted under the provisions of the Insolvency Rules 1986 and there has been lodged with the Administrators any proxy which the Creditor intends to be used on his behalf. A J Galloway, Joint Administrator READY CREDIT: Appoints Joint Administrative Receivers ----------------------------------------------------- Name of Company: Ready Credit Limited Reg No. 4611157 Nature of Business: Credit Provider Trade Classification: 6141 Date of Appointment of Joint Administrative Receivers: January 28, 2004 Name of Person Appointing the Joint Administrative Receivers: Governor and Company of the Bank of Scotland Joint Administrative Receivers: Quay House 110 Quayside, Newcastle upon Tyne NE1 3DX Receivers: Julian Richard Whale Richard Dixon Fleming (Office Holder Nos 7252, 8370) SPRINGWOOD PLC: In Administrative Receivership ---------------------------------------------- Springwood announces that the Company was placed into administrative receivership at the request of the Directors. Mr. Ian Best, Mr. Simon Allport and Mr. Alan Lovett of Ernst & Young LLP have been appointed as joint administrative receivers. The administrative receivers are continuing to trade the business with a view to achieving a sale of the business and assets as a going concern. A further announcement will be made shortly. SPRINGWOOD PLC: Company Profile ------------------------------- NAME: Springwood plc Swithland Hall Swithland Leicestershire LE12 8TD United Kingdom PHONE: (0116) 237 5055 FAX: (0116) 230 2983 WEBSITE: www.springwoodleisure.co.uk/ TYPE OF BUSINESS: Springwood is one of the largest operators of late night entertainment venues in the U.K. It operates the highly successful Zanzibar concept, which are large capacity (2,500+) entertainment complexes providing bar, club and restaurant under the same roof and giving our customers a one- stop late night destination. It owns The Polo Club cafe, Oasis bar and club, Leicester Zanzibar and Cobarna complex. SIC: Leisure and hotels EXECUTIVES: W.H. Gore, Executive Chairman J.J. King, Chief Operations Officer S.R. Mugglestone, Finance Director C.R. Clegg, Managing Director M.J. Marley, Commercial Director A.J. Hall, Non-executive Director J.B. Wagstaff, Non-executive Director NUMBER OF EMPLOYEES: 1,024 (2002) TURNOVER: GBP14.1 million (Interim Report for the Six Months to June 2003) OPERATING LOSS: GBP0.4 million (Interim Report for the Six Months to June 2003) RETAINED LOSS: GBP1.46 m (6 months ended June 30, 2003, unaudited) FIXED ASSETS: GBP74.306 million (6 months ended June 30, 2003, unaudited) CURRENT ASSETS: GBP5.094 million (6 months ended June 30, 2003, unaudited) CURRENT ASSETS BREAKDOWN: Properties held for resale GBP18,000 Stock GBP307,000 Debtors GBP3.779 million Cash at bank GBP990,000 NET CURRENT LIABILITIES: GBP11.730 million To view full result and financials: http://bankrupt.com/misc/Springwood_plc_Interim_Report.htm THE TROUBLE: The company has struggled with poor trading conditions for some time. It was in talks about extending its short-term agreement until February before the filing of administration. BANKERS: LLOYDS TSB BANK PLC Southpoint House Harcourt Way Meridien Business Park Leicester LE3 2WP AUDITORS: GRANT THORNTON Registered Auditors Chartered Accountants 8 West Walk Leicester LE1 7NH SOLICITORS: MOSS SOLICITORS 80 - 81 Woodgate Loughborough Leicestershire LE11 2XE GL50 3PR BPE St James's House St James's Square Cheltenham Gloucestershire FINANCIAL ADVISERS AND BROKERS: GRANT THORNTON CORPORATE FINANCE Grant Thornton House Melton Street Euston Square London NW1 2EP KBC PEEL HUNT LIMITED 111 Old Broad Street London EC2N 1PH REGISTRARS: CAPITA IRG PLC Bourne House 34 Beckenham Road Beckenham Kent BR3 4TU TA KING: Appoints Administrative Receiver ----------------------------------------- Name of Company: Ta King & Son (St Albans) Ltd. Nature of Business: General Construction Trade Classification: 23 Date of Appointment: January 28, 2004 Administrative Receiver: The Atrium Park Street West, Luton, Bedfordshire LU1 3BE Receiver: Martin Dominic Pickard STEELS ENGINEERING: In Administrative Receivership -------------------------------------------------- Name of Company: Steels Engineering Limited Reg No: 02737790 Previous Name of Company: Planrevel Limited-changed September 30, 1992 Nature of Business: Manufacture Metal Structures and Parts Trade Classification: 2811 Date of Appointment of Administrative Receivers: January 28, 2004 Name of Person Appointing the Administrative Receivers: HSBC Bank Plc. Administrative Receivers: PricewaterhouseCoopers LLP 9 Bond Court, Leeds LS1 2SN Receivers: Ian D. Green David M. Walker (Office Holder Nos 9045, 3606) TDA TRANSITIONS: Calls in Joint Administrative Receivers -------------------------------------------------------- Name of Company: TDA Transitions Limited Nature of Business: Human Resources Consultancy Making the most of an original idea TDA began as a customizing training and development business in 1984. It works in the areas of management development, performance management, distance learning creation and motivational programs. Now TDA Transitions Limited has emerged* to continue the evolution of our business, with a focus on supporting people and organizations in the process of change/transition. Trade Classification: 38 Date of Appointment: January 28, 2004 Joint Administrative Receivers: Begbies Traynor Elliot House 151 Deansgate, Manchester M3 3BP Receivers: Stephen L. Conn Gary Bell Company Address: Thameside House 42-52 High Street, Brentford, Middlesex TW8 0BB Phone: 020 8232 1900 Fax: 020 8569 9800 E-mail: (for general purposes) tda@tdatransitions.co.uk THORNTONS PLC: To Discuss Interim Results with Analyst Feb. 24 -------------------------------------------------------------- Thorntons PLC, the specialty retailer and manufacturer of high quality chocolate, toffee and other sweet foods, will be announcing Interim Results for the 28 weeks ended January 10, 2004 on Tuesday, February 24, 2004. An analysts' briefing will be held at 9:00 a.m. at Buchanan Communications, 107 Cheapside, London EC2V 6DN. ***** The Board of Thorntons currently anticipates that trading for the year ending June 26, 2004 will be in line with market expectations. Company sales figures for the 28 weeks ended January 10, 2004 were: total company sales increased by 4.4% to GBP109.3 million; own shop sales increased by 2.4% on an estate virtually unchanged in size at 388 with the number of cafes rising by one to 27; own Shop like-for-like sales for the half-year were +2.5%. CONTACT: BUCHANAN COMMUNICATIONS Phone: 020 7466 5000 Charles Ryland/Catherine Miles WESTPOINT FOODS: Bank of Scotland Calls in Receivers ---------------------------------------------------- Name of Company: Westpoint Foods Limited Reg No: 03284628 Previous Name of Company: Lowthers Food Group Limited Nature of Business: Holding Company Trade Classification: 1582, 1584 and 5224 Date of Appointment of Administrative Receivers: January 23, 2004 Name of Person Appointing the Administrative Receivers: Governor and Company of the Bank of Scotland Administrative Receivers: St. James' Square Manchester M2 6DS Receivers: Brian Green Paul Andrew Flint (Office Holder Nos 8709, 9075) ********* 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 Liv Arcipe, 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 * * *