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/raid1/www/Hosts/bankrupt/TCREUR_Public/040217.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Tuesday, February 17, 2004, Vol. 5, No. 33 Headlines F R A N C E RHODIA SA: Divests Food Ingredients Business to Danisco RHODIA SA: Reports Sharp Deterioration in 2003 Results SCOR GROUP: Unstable Currency Rate Behind Drop in Premium Income G E R M A N Y ALLIANZ AG: Plans to Issue EUR1 Billion Worth of Bonds EM.TV & MERCHANDISING: Extends Bond Buyback Offer to Feb. 27 HVB GROUP: Sells Brau und Brunnen Stake to Oetker Group INTERSHOP COMMUNICATIONS: FY2003 Net Loss Down to EUR18.6 Mln THYSSENKRUPP AG: First Quarter Pretax Earnings Up I R E L A N D ELAN CORPORATION: Retains 'B-' Ratings Despite Divestments JSG HOLDINGS: Note Issuance Canceled; 'CCC+' Rating Withdrawn I T A L Y PARMALAT FINANZIARIA: ABN AMRO Exposure Limited PARMALAT FINANZIARIA: Tanzi Lawyer Under Investigation N E T H E R L A N D S GETRONICS N.V.: To Publish Annual Results February 23 UPC DISTRIBUTION: Senior Bank Facilities Rated B1 N O R W A Y STOLT OFFSHORE: US$100 Mln Private Placement Closes Successfully R U S S I A GRYAZINSKY LIME: First Bankruptcy Hearing Set April 22 ISKITIMSKY LIME: Placed Under Bankruptcy Supervision MOTOROSTROITEL: Given Ultimatum to Improve Financial Standing NOVOTROITSKY CONCRETE: Declared Bankrupt SELKHOZTEKHNIKA: Court Prescribes Bankruptcy Proceedings TUYMAZINSKY MEDICAL: Falls into Bankruptcy S W I T Z E R L A N D ABB LTD.: To Supply Advanced Drives to Chinese Steel maker VON ROLL: Reports Progress of Financial Restructuring U N I T E D K I N G D O M ADVANCED VEHICLE: Creditors Meeting Set February 20 ALBANY CARS: Appoints Alison Byrne Liquidator BEESON GREGORY: Winding up Resolution Passed BIL CONSULTANTS: Mazars Appointed Liquidator COGGINS WELCH: In Administrative Receivership CORUS GROUP: Ratings Off CreditWatch on Better Market Prospects EGG PLC: Amended Personal Insolvency Rules May Derail Sale Plan ELDRIDGE POPE: First Half May Not Show Recovery, Chairman Says EQUITABLE LIFE: Privy to Much-awaited Report on Demise EUROTUNNEL PLC: Life-saving Plan Gets Encouraging Response HOLLAND LIMITED: Appoints Moore Stephens Joint Administrator HOWARD ANDERSON: Appoints PricewaterhouseCoopers Receivers INVENSYS PLC: Ratings on Watch Negative; Revised Strategy Cited INVESTEC PROPERTY: Voluntary Winding up Resolution Passed K & F DEVELOPMENTS: John David Travers Appointed Liquidator LEEDS UNITED: Standstill Extended as Selloff Talks Continue MAGELLAN COMMUNICATIONS: P&A Partnership Appointed Receivers MARCONI CORPORATION: Details Directors' Interests MEPC LIMITED: Fitch Affirms 'BB/B' Ratings; Outlook Negative RCF PROJECTS: Kerr and Hamblin Appointed Administrators RIPON CARAVANS: Appoints Jackson Jolliffe Cork Liquidator SMALL ICONS: PKF Pannell House Appointed Administrators * Large Companies with Insolvent Balance Sheets ********* =========== F R A N C E =========== RHODIA SA: Divests Food Ingredients Business to Danisco ------------------------------------------------------- Following the receipt of an acceptable offer by the Danish company Danisco, Rhodia (NYSE: RHA) announced that the two companies have entered into exclusive negotiations concerning the sale of Rhodia's food ingredients business. The business includes the cultures, hydrocolloids and food safety products activities. The two parties expect to reach an agreement shortly. The transaction would be finalized during the second quarter of 2004, after consultations have been held with employee representatives and legal authorizations received. The food ingredients business, which has few synergies with other Rhodia businesses, generated sales of EUR211 million in 2003 and includes 860 employees. The divestiture marks the first step in Rhodia's plans to re-focus its business portfolio and will contribute significantly to debt reduction. Rhodia confirms the objective announced October 30 to achieve EUR700 million from divestitures by the end of 2004. About Rhodia Rhodia is one of the world's leading manufacturers of specialty chemicals. Providing a wide range of innovative products and services to the consumer care, food, industrial care, pharmaceuticals, agrochemicals, automotive, electronics and fibers markets, Rhodia offers its customers tailor-made solutions based on the cross-fertilization of technologies, people and expertise. Rhodia subscribes to the principles of Sustainable Development communicating its commitments and performance openly with stakeholders. Rhodia generated net sales of EUR5.5 billion in 2003 and employs 23,000 people worldwide. Rhodia is listed on the Paris and New York stock exchanges. About Danisco Danisco develops and produces food ingredients, sweeteners and sugar. The Group employs approximately 8,000 people in some 40 countries and reported net sales of DKK16.6 billion in 2002/03. Danisco's broad product portfolio includes emulsifiers, stabilizers, flavors and sweeteners such as xylitol and fructose. The majority of these ingredients are produced from natural raw materials and contribute, for instance, to improving the texture in bread, ice cream, yogurt and other products. Danisco is also one of the largest and most efficient sugar producers in Europe. CONTACT: RHODIA Lucia Dumas, Press Relations Phone: 33 1 55 38 45 48 Anne-Laurence de Villepin Phone: 33 1 55 38 40 25 David Klucsik (North America) Phone: 609/860-3616 (Investor Relations) Nicolas Nerot Phone: 33 1 55 38 43 08 RHODIA SA: Reports Sharp Deterioration in 2003 Results ------------------------------------------------------ Rhodia (NYSE:RHA) published its audited annual results for 2003, which was approved February 12 by the Board of Directors. Simplified income statement In millions of euros 2002 2002 Reported Restated (*) 2003 ------------- ------------- --------------------- -------------- 6,617 5,520 Net Sales 5,453 ------------- ------------- --------------------- -------------- 798 624 EBITDA 364 ------------- ------------- --------------------- -------------- 12.1% 11.3% EBITDA/Sales 6.7% ------------- ------------- --------------------- -------------- 351 250 Operating Income -159 ------------- ------------- --------------------- -------------- Net Income, after minorities (before amortization of 43 - goodwill) -749 ------------- ------------- --------------------- -------------- Net Income, after minorities (after amortization of goodwill) - 4 - - 1,351 ------------- -------------- -------------------- -------------- (*) Figures restated to account for divestitures completed in 2002 and at current exchange rates (a) A year marked by a combination of negative factors strongly impacting Group operating performance Rhodia reported Net Sales of EUR5,453 million in 2003, down 17.6% compared with 2002. The decline is due primarily to changes in the Group's structure (-8.8%) following divestitures in 2002 and 2003 and foreign exchange rate effects (-7.8%) caused by the persistent weakness of the U.S. dollar. On the same basis (constant structure and exchange rates), net sales declined 1.2% compared with 2002 due to decreased volumes, particularly in the pharmaceuticals, agrochemicals and textiles markets. In an adverse business environment, price levels remained stable. Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) stood at EUR364 million compared to EUR798 million in 2002. On a comparable basis (constant structure and exchange rates), EBITDA declined to EUR260 million. Eighty percent of this result was from the impact of higher raw material prices with the remainder due to lower volumes and additional restructuring charges. The EBITDA/Sales ratio was 6.7% in 2003, compared to 11.3% in 2002, on a comparable basis (constant structure and exchange rates). The combination of these negative factors reduced the Group's Operating Income to a loss of EUR159 million compared to a positive EUR351 million in 2002. For the year as a whole, the Group's Net Income, after minority interests, stood at a loss of EUR1,351 million compared to a loss of EUR4 million in 2002, due primarily to a write-down of assets of EUR875 million announced at the end of the year. (b) Stability of Group's Total Net Debt In line with its objectives, Rhodia limited capital expenditures to EUR233 million in 2003, compared with EUR374 million in 2002. At the same time, the Group maintained strict control over working capital needs which stood at 14.1% of sales as of December 31, 2003. These efforts partially offset the effect of the strong decline in results on free cash flow, which declined to -EUR51 million at the end of 2003. The Group also re-capitalized a portion of its leasing contracts, amounting to EUR275 million. At the same time, outstanding securitization programs were reduced by EUR208 million. As a result, the Group's Net Financial Debt stood at EUR2,567 million at the end of 2003 compared with EUR2,133 at the end of 2002. Total Net Debt, including off-balance sheet items, remains relatively stable at EUR3,240 million at the end of 2003 (+EUR31 million compared to the end of 2002). (c) Analysis of businesses by Division (i) Pharmaceuticals & Agrochemicals The Division experienced a substantial decline in its business activities in 2003 principally due to a decrease in sales volumes and foreign exchange rate effects. The decrease in volumes is a result of the postponed launch of new pharmaceuticals, expected since July 2002, for which the Pharma Solutions Enterprise supplies intermediates, and by a general weakening in demand for products of the Perfumery, Performance & Agrochemicals Enterprise. (ii) Consumer Care & Food All the businesses of the Division -- with the exception of detergents in Europe and cosmetics -- grew in sales volumes in 2003. The marginal decline in the Division's net sales during the year was due primarily to unfavorable foreign exchange rates linked to the decline in the value of the U.S. dollar. (iii) Industrial Care & Services The Division experienced a slight decline in its results in 2003. This was due primarily to the poor performance of the Silicones business, which experienced higher raw material prices and strong pressure on prices. The Silica Systems and Eco Services Enterprises maintained their growth through their positions in growing markets such as tires and sulfuric acid regeneration. (iv) Automotive, Electronics & Fibers The Division businesses lost ground compared to 2002 affected by the collapse in demand in the downstream polyamide markets, especially during the third quarter, the sharp depreciation of the U.S. dollar against the euro and high raw materials prices. Only the Engineering Plastics Enterprise achieved satisfactory growth in its sales volumes. October 2003 - February 2004: First Steps Achieved With Rhodia Recovery Plan As Rhodia pursues its plan to simplify and streamline the organization announced October 30, 2003, and having signed an agreement for the refinancing of its bank debt in December, Rhodia announced: (a) The signing of an agreement with the U.S. private placement investors for reimbursement of the investment in two stages: one-half, or $145 million, in February, with the balance paid on June 30. Each payment will include the accrued interest and a premium as provided in the notes (see press release issued). (b) The signing of an agreement to negotiate the sale of its Food Ingredients business exclusively with Danisco. The business includes the cultures, hydrocolloids and food safety products activities. (c) The intended sale of its Specialty Phosphates business for which it already has received several expressions of interest from both strategic and financial potential buyers. (d) The signing of an agreement with its unions, which frames, in France, the program for the communication/consultation process as well as the elements of the social plan linked to restructuring. Rhodia Tomorrow A Restructured Group Refocused On Competitive Businesses In Two Pillars: Rhodia intends to develop its Applications Chemistry businesses (a) in which our innovation capabilities and close relationships with our major customers offer the Group solid growth opportunities. With their solid competitive technologies and their tight control over costs, the Specialty Materials & Services businesses (b) will continue to be strong and reliable cash generators. The Group will continue to restructure and reposition its Fine Chemicals businesses (c) to restore their competitiveness and to capitalize on improvements in their markets. Ultimately, the aim is to integrate these businesses into either the Applications Chemistry or Specialty Materials & Services strategic pillars. (d) A Group with a strengthened position in China Rhodia also intends to significantly reinforce its position in China with an objective of generating 10% of its total sales there in the medium term. With a strong industrial and commercial presence already in place, the Group is focusing on the strong growth potential of China's markets as well as the base for lower-cost production that it represents. (e) Outlook 2004 and 2005 will be transition years dedicated to transforming and refocusing the Group in a still uncertain economic environment. By 2006, Rhodia foresees a return to positive net income by a reconfigured Group with expectations for sustained profitability. (a) The four Applications Chemistry enterprises: HPCII, (Home Personal Care & Industrial Ingredients), PPMC (Performance Products for Multifunctional Coatings), RE3S (Rare Earths, Silicones & Silica Systems), and Phosphorus & Performance Derivatives. (b) The three Specialties Materials and Services enterprises: Polyamide, Acetow and Eco Services (c) The two Fine Chemicals enterprises: Pharma Solutions and Perfumery, Performance & Agrochemicals To see financial statements: http://bankrupt.com/misc/Rhodia_2003.htm CONTACTS: RHODIA Press Relations Lucia Dumas Phone: 33-1-55-38-45-48 Anne-Laurence de Villepin Phone: 33-1-55-38-40-25 David Klucsik North America Phone: 609-860-3616 Investor Relations Nicolas Nerot Phone: 33-1-55-38-43-08 SCOR GROUP: Unstable Currency Rate Behind Drop in Premium Income ---------------------------------------------------------------- The SCOR Group reported EUR3,691 million in gross written premiums for 2003, down 26% relative to 2002. This decline would have been 7% at constant exchange rates and on a like-for-like basis (excluding Commercial Risk Partners, SCOR's Bermuda-based subsidiary which stopped writing business in January 2003, and excluding the impact of withdrawal from certain business lines in the United States). Premium income was significantly impacted by currency movements, the reorientation of the underwriting policy in the United States and the cessation of business at CRP (Bermuda). In Non-Life reinsurance (property, large corporate accounts and credit & surety business), premium income totaled EUR2,229 million, down 27% from 2002. This decline stems mainly from the effects of currency movements and the withdrawal in 2003 from certain lines of business in the United States. At constant exchange rates, and excluding these effects, premium income in Non-Life reinsurance was down 16%. In Life & Accident reinsurance, premium income totaled EUR1,462 million. It was down 4% compared to 2002 at current exchange rates, but was up 4% at constant exchange rates. In EUR million 2002 2003 At At Constant Current Exchange rates Non-Life reinsurance 3,060 2,229 -27% -21% Life & Accident reinsurance 1,530 1,462 -4% +4% CRP 426 0 - - Consolidated premium income 5,016 3,691 -26% -20% Premium income excluding CRP and the withdrawal from certain lines of business in the United States 4,250 3,642 -14% -7% SCOR continued to rebalance the geographic mix of its activities. SCOR continued to rebalance the geographic mix of its activities. North America's share of business fell from 43% in 2002 to 27%. Europe's share rose from 42% in 2002 to 52%, and that of Asia-Pacific from 7% in 2002 to 9%. The share of business written in the rest of the world grew from 8% in 2002 to 12%. SCOR focused on short-tail business in 2003 SCOR also favored short-tail business over long-tail business. Short-tail business represented 52% of Non-Life reinsurance writings (property, large corporate accounts, and credit & surety) in 2003 compared with 46% in 2002. Denis Kessler, Group Chairman and Chief Executive Officer, stated: "In 2003, the SCOR Group reduced the volatility of its commitments, by bolstering its reserves, commuting 60% of the CRP portfolio and terminating its exposure to credit derivatives risk. Thanks to its EUR751 million capital increase, SCOR has the means to pursue its underwriting strategy based on achieving a sustainable return to profitability. This policy of risk selection and business reorientation has entailed not underwriting certain contracts and canceling some treaties in order to boost underwriting profitability." 2004 Timetable: February 26, 2004 Presentation of 2004 Renewals April 1, 2004 FY 2003 Results May 18, 2004 2004 1st Quarter Results and General Meeting of Shareholders August 26, 2004 2004 Half-Year Results November 4, 2004 2004 3rd Quarter Results ============= G E R M A N Y ============= ALLIANZ AG: Plans to Issue EUR1 Billion Worth of Bonds ------------------------------------------------------ This transaction marks another step in a series of successful capital markets transactions by Allianz, which announced its intention to issue more hybrid capital when it implemented the capital increase in spring 2003. The joint bookrunners on the issue will be DrKW and Merrill Lynch. The bond will be perpetual, with a first par call at the option of the issuer after ten years. In the event of a non- call the fixed rate of interest payable during the initial ten years will convert to a variable rate and will step up by 100 basis points over the initial credit spread. Bookbuilding, launch and pricing will happen next week following a European road show, subject to market conditions. "The historically low interest environment combined with the high market liquidity provide an excellent opportunity for us to refinance short-term by long-term debt at attractive conditions. In addition, this step allows us to further enhance our capital base," says Stephan Theissing, Head of Corporate Finance of Allianz A.G. EM.TV & MERCHANDISING: Extends Bond Buyback Offer to Feb. 27 ------------------------------------------------------------ EM.TV & Merchandising AG has decided to extend for the last time the acceptance period for the offer made to holders of the EM.TV & Merchandising A.G. EUR400 million 4% convertible bonds of 2000/2005, previously extended until February 13, 2004 at 12:00 a.m., until February 27, 2004 at 12:00 p.m. Central European Winter Time. As of February 12, 2004 nearly 94% of the bondholders (based on the outstanding principal of the convertible bonds) have accepted the offer made by EM.TV & Merchandising AG or have already committed to accept. Due to transaction clearing, the exact acceptance rate will be available in a few days only. EM.TV & Merchandising AG is determined to solicit acceptances of 97.5% in order to avoid undue liquidity problems relating to the repayment of any untendered convertible bonds in 2007. Upon successful completion of the bond restructuring EM.TV will immediately apply for delisting of the convertible bond as contemplated in the offer, being the termination of trading of the convertible bond on the stock exchange. CONTACT: KOMMUNIKATION FUR UNTERNEHMEN GMBH Frank Elsner Phone: ++49-5404-91920 HVB GROUP: Sells Brau und Brunnen Stake to Oetker Group ------------------------------------------------------- HVB Group will sell its equity stake in Dortmund-based Brau und Brunnen A.G. to a financing and investment company of Oetker Group- alcohol segment of the Oetker Group. The contract was signed in Munich. A price of EUR220 million was agreed for the equity holdings of 61.7%, which works out to EUR80 per share. This is part of HVB Group's plan to reduce non-strategic industrial holdings. At the same time this solution rewards Brau und Brunnen's successful restructuring program and creates a basis for a permanently competitive domestic beverages concern. The Oetker Group aims to acquire a qualified majority of over 75% of Brau und Brunnens voting capital. The transaction is contingent on approval from the cartel office. CONTACT: BAYERISCHE HYPO- UND VEREINSBANK AG Presseabteilung Am Tucherpark 16 80538 Munchen Phone: (089) 378-2 58 01/-2 55 12 Fax: (089) 378-2 56 99 Dr. Knut Hansen Phone: 089/378-24644 E-mail: knut.hansen@hvbgroup.com INTERSHOP COMMUNICATIONS: FY2003 Net Loss Down to EUR18.6 Mln ------------------------------------------------------------- Intershop Communications A.G. announced financial results for the fourth quarter and full year 2003, ended December 31, 2003. Revenue totaled EUR4.6 million in the fourth quarter of 2003, as compared to EUR6.5 million in the third quarter of 2003 and EUR12.0 million in the fourth quarter of 2002. License revenue totaled EUR1.5 million in the fourth quarter of 2003, as compared to EUR2.2 million in the third quarter of 2003 and EUR6.5 million in the fourth quarter of 2002. Revenue for the full year of 2003 totaled EUR23.2 million, as compared to EUR45.1 million for the full year of 2002. Total operational cost declined 33% sequentially to EUR7.2 million in the fourth quarter of 2003. Intershop reduced its total annual operational cost in 2003 by 39%, to EUR45.0 million. As a result of the continued reduction in total operational cost and other income in connection with terminating business operations in France, Intershop recorded Euro 0.1 in net income in the fourth quarter of 2003 million or EUR0.00 per share, compared to a net loss of EUR3.8 million or a net loss of EUR0.17 per share in the third quarter of 2003. In comparison, Intershops net loss in the fourth quarter of 2002 was EUR1.0 million or a net loss of EUR0.05 per share. For the full year of 2003, Intershops net loss totaled EUR18.6 million or a net loss of EUR0.90 per share, compared to a net loss of EUR27.6 million or a net loss of EUR1.47 per share for the full year of 2002, a year-over-year reduction of 32%. Total cash including cash, cash equivalents, marketable securities, and restricted cash declined from EUR10.9 million as of September 30, 2003 to EUR8.8 million as of December 31, 2003. Total cash includes freely available cash, which decreased from EUR4.2 million as of September 30, 2003 to EUR2.6 million as of December 31, 2003. Based on a reduced total operational cost base achieved in 2003 and against the backdrop of renewed signs of a recovery in corporate I.T. spending patterns in 2004, the Company expects to break even on an annual net income basis in 2004. Issuer's information/explanatory remarks concerning this ad-hoc announcement: About Intershop Intershop Communications A.G. (Nasdaq: ISHP; Prime Standard: ISH1) is a leading provider of software solutions that help organizations evolve their trading relationships with consumers and business partners online. Founded in 1992, Intershop has a long tradition of driving innovation in e-commerce by automating and simplifying sales and buying processes. Intershop Solutions enable organizations to consolidate and manage unlimited online commerce channels on a single platform. As a result, Intershop customers benefit from reduced operating expenses and competitive advantages in their online sales activities. More than 300 enterprise customers worldwide, including Hewlett- Packard, BMW and Homebase, run Intershop Solutions. Four of the five largest e-commerce sites in Germany rely on Intershop Solutions: Otto, Tchibo, Deutsche Telekom, and Quelle. Intershop is headquartered in Jena, Germany, and has branch offices in the United States, Europe and Asia. More information about Intershop can be found on the Web at http://www.intershop.com CONTACTS: INTERSHOP COMMUNICATIONS Investor Relations Klaus F. Gruendel Phone: +49-3641-50-1307 Fax: +49-3641-50-1002 E-mail: k.gruendel@intershop.com Press Dana Schmidt Phone: +49-3641-50-1000 Fax: +49-3641-50-1002 E-mail: d.schmidt@intershop.com THYSSENKRUPP AG: First Quarter Pretax Earnings Up ------------------------------------------------- ThyssenKrupp [rated Baa3 by Moody's Investors Service] made a good start in fiscal year 2003/2004. After the economically subdued summer months of 2003 the overall economic picture brightened slightly in the further course of the year. Sales remained steady and new orders increased. The Group's earnings before taxes and minority interest reached EUR166 million in the 1st fiscal quarter, compared to EUR141 million in the corresponding prior-year quarter. The highlights for the first three months of fiscal year 2003/2004 were: (a) Order intake was EUR9.6 billion, up 6% from the same quarter a year earlier. Excluding currency effects, i.e. with a constant euro-dollar exchange rate, this represents an increase of 10%. (b) Sales were EUR8.7 billion, level with the corresponding prior-year figure. Excluding currency effects this represents an increase of 4%. (c) Earnings before taxes and minority interest increased to EUR166 million from EUR141 million in the 1st quarter of the prior year. (d) Basic earnings per share were EUR0.18, compared to EUR0.10 a year earlier. (e) Normalized earnings per share amounted to EUR0.18, compared to EUR0.16 a year earlier. (f) The Group's net financial payables amounted to EUR4,533 million on December 31, 2003, EUR318 million more than on September 30, 2003 and EUR311 million less than on December 31, 2002. Chairman of the Executive Board, Prof. Dr. Ekkehard Schulz: "For 2004 ThyssenKrupp expects an improving economic environment. The predicted economic recovery would have a positive impact on ThyssenKrupp's business performance. We forecast sales in the magnitude of roughly EUR38 billion. In terms of normalized earnings before taxes ThyssenKrupp aims to get as close as possible to EUR1 billion. With support from the economy and without major distortions on the currency and raw material markets, we could exceed the EUR1 billion mark this year." ThyssenKrupp is sticking to its target of achieving normalized earnings before taxes of EUR1.5 billion as quickly as possible. The full interim report is available in German and English online at http://www.thyssenkrupp.com. A copy of the full interim report has been submitted to the U.K. Listing Authority, and will shortly be available for inspection at the U.K. Listing Authority's Document Viewing Facility, which is situated at: FINANCIAL SERVICES AUTHORITY 25 The North Colonnade Canary Wharf LONDON, E14 5HS Phone: (0) 20 7676 1000 Short Name: ThyssenKrupp AG Category Code: QRF Sequence Number: 16615 Time of Receipt (offset from UTC): 20040213T065618+0000 ============= I R E L A N D ============= ELAN CORPORATION: Retains 'B-' Ratings Despite Divestments ---------------------------------------------------------- Standard & Poor's Ratings Services said the ratings and outlook on Elan Corp. PLC (B-/Positive/--) are not affected by the company's announcement that it has completed the sale of its European sales and marketing business for $120 million. The completion of the sale as expected marks the conclusion of Elan's divestiture plan, in which the company raised nearly $2 billion. Proceeds from the program, as well as from recent debt and equity issuances, have enabled the company to fund its high R&D expenditures, satisfy debt maturities, and maintain an approximately $1 billion cash cushion. However, Elan still faces $840 million in debt maturities in the near term, and cash flows from operations are expected to remain negative during that time. JSG HOLDINGS: Note Issuance Canceled; 'CCC+' Rating Withdrawn ------------------------------------------------------------- Fitch Ratings has withdrawn its 'CCC+' rating for JSG Holdings plc's proposed EUR250 million senior subordinated notes due 2014. The withdrawal of the rating follows the announcement from Jefferson Smurfit Group that it has cancelled plans to issue the zero coupon notes. The company had planned to use proceeds from the notes to make a payment to the group's shareholders. The transaction would effectively have allowed the shareholders to remove equity from the business by replacing it with a tranche of deeply subordinated debt. The cancellation of the deal appears to signal a distinct lack of appetite from investors for this type of deal, despite recent buoyant conditions in the market. While some recent market spread widening may have played a part in the decision to cancel the offering, Fitch believes that this decision also reflects the reluctance of European high yield investors to finance equity withdrawal, particularly when JSG has yet to demonstrate an ability to generate sufficient cash flow to substantially reduce debt. Leverage remains almost unchanged since the buyout in September 2002. The agency believes that investors have recognized that the risk profile of this type of instrument is more akin to equity than debt. For this type of issue, Fitch would expect that the recovery prospects in any future distress situation would be very limited, given the lack of asset security or guarantees from any of the issuer's subsidiaries, and the deeply subordinated position of the notes in an already highly leveraged capital structure. The new issuance would have had no impact on Fitch's existing ratings for JSG's other debt issues, whose ratings were affirmed last Monday, given the absence of an ability to default on the new notes during the term of its other debt instruments, reflecting the lack of any cash-pay obligation and their deeply subordinated position within the structure. 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: JSG HOLDINGS 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 Media Relations Alex Clelland London Phone: +44 20 7862 4084 ========= I T A L Y ========= PARMALAT FINANZIARIA: ABN AMRO Exposure Limited ----------------------------------------------- In a regulatory filing with the Securities and Exchange Commission, ABN AMRO Holding N.V. says it posted a EUR3,161,000,000 net profit as a result of higher revenues, lower costs and lower provisions compared to 2002. This improvement is broad based, as nearly every Strategic Business Unit -- SBU -- showed an increase in net profit. ABN AMRO discloses that the level of provisions for 2003 came down by more than EUR400,000,000, as all SBUs had lower provisioning levels than in 2002. The biggest decline took place in Wholesale Clients SBU -- WCS -- as provisions in the United States decreased and as risk-weighted assets -- RWA -- came down significantly. For the fourth quarter, provisions increased to EUR323,000,000, due to provisions taken on Parmalat in WCS. ABN AMRO does not expect any material impact by Parmalat on its 2004 results due to the amount of provisioning in the fourth quarter of 2003. (Parmalat Bankruptcy News, Issue No. 5; Bankruptcy Creditors' Service, Inc., 215/945-7000) PARMALAT FINANZIARIA: Tanzi Lawyer Under Investigation ------------------------------------------------------ Michelle Ributti, a lawyer for former Parmalat head Calisto Tanzi, resigned after being dragged into the inquiry in the multi-billion accounting fraud at the dairy food giant. "My colleague has renounced his mandate and now we need to decide what to do," said Fabio Belloni, another lawyer representing Mr. Tanzi. Ributti was formally put under investigation on Thursday after tax police searched his office in Milan, judicial sources said, according to Reuters. The investigation into Parmalat already resulted to the arrest of 10 people, including Mr. Tanzi and two former finance directors of the group. At least 28 are under investigation in Italy. Parmalat said it has EUR14.5 billion (GBP9.8 billion) of debt. ===================== N E T H E R L A N D S ===================== GETRONICS N.V.: To Publish Annual Results February 23 ----------------------------------------------------- Fast closing and auditing processes, resulting from new financial management reporting systems and procedures will enable Getronics to publish its annual results on Monday February 23, 2004, instead of Tuesday March 2. The results will be announced pre-official trading hours of Euronext Amsterdam. An Extraordinary Meeting of Shareholders (EGM) will also be held on the February 23 to seek the required approvals from shareholders for completion of the placing of 100 million ordinary shares, to redeem the EUR250 million nominal value 13% subordinated installment bond due 2008 in full. This EGM will start at 10:30 hrs at the World Trade Center, Strawinskylaan 1, Amsterdam. In the afternoon Getronics intends to organize a press conference. During this presentation Klaas Wagenaar (Chairman and CEO of Getronics) will go into detail on the audited results for 2003. The press conference will be held at World Trade Center Amsterdam starting at 14:00 hrs (CET). About Getronics With approximately 22,000 employees in over 30 countries and preliminary unaudited revenues of approximately EUR2.6 billion in 2003, Getronics is one of the world's leading providers of vendor independent Information and Communication Technology (ICT) solutions and services. Getronics combines the capabilities of the original Dutch company with those of Wang Global, acquired in 1999, and of the systems and services division of Olivetti. Getronics is ranked second worldwide in network and desktop outsourcing and fourth worldwide in network consulting and integration (Source: IDC 2002-2003). Getronics designs, integrates and manages ICT infrastructures and business solutions for many of the world's largest global and local companies and organizations, helping them maximize the value of their information technology investments. Getronics headquarters are in Amsterdam, with regional offices in Boston, Madrid and Singapore. Getronics' shares are traded on Euronext Amsterdam ("GTN"). For further information about Getronics, visit http://www.getronics.com CONTACTS: GETRONICS N.V. Investor Phone: +31 20 586 1982 Fax: +31 20 586 1455 E-mail: investor.relations@getronics.com UPC DISTRIBUTION: Senior Bank Facilities Rated B1 ------------------------------------------------- Moody's Investors Service assigned a B1 rating to the senior bank facilities of UPC Distribution Holding B.V., an indirect subsidiary of United GlobalCom Inc. The outlook for all ratings is stable. The action was done in conjunction with the assigning of senior implied and senior unsecured issuer ratings of B1 and B3, respectively, to United GlobalCom Inc. United GlobalCom is currently in the process of implementing a US$1 billion rights offering, with US$100 million to be used to pay down bank debt and a substantial portion of the remainder likely to be used for future acquisitions. The rating reflects, among others, United GlobalCom's high debt leverage levels, and relatively high expected on-going capital expenditure requirements. But it also factors the company's successful deleveraging (on a debt to operating cash flow basis) efforts over the past two years. Moody's expects that United GlobalCom will continue to improve consolidated operating cash flow. =========== N O R W A Y =========== STOLT OFFSHORE: US$100 Mln Private Placement Closes Successfully ---------------------------------------------------------------- Stolt Offshore S.A. (NasdaqNM: SOSA; Oslo Stock Exchange: STO) announced that the company has closed a financing transaction with European investors through a private placement of 45.5 million new Common Shares at a subscription price of $2.20 per share, resulting in gross proceeds to the Company of approximately $100 million before expenses. Further, the Company expects to raise up to $50 million in a subsequent issue. The net proceeds from these two issues will be used as security for the new bonding facility referred to below, working capital, prepayment of existing debt and/or general corporate purposes. The new Common Shares will not be admitted for listing on the Oslo Stock Exchange until a prospectus has been filed with and approved by the Oslo Stock Exchange, which is expected to occur as soon as practicable. Stolt Offshore has also issued 17 million new Common Shares to Stolt-Nielsen Transportation Group Ltd (SNTG), a subsidiary of Stolt-Nielsen S.A., upon conversion of all outstanding Class B Shares to Common Shares. Furthermore, SNTG has irrevocably undertaken to the Company that it will convert $50 million of subordinated debt owed to it into 22,727,272 new Common Shares at the same subscription price of $2.20 per share. Stolt Offshore has also secured a new bonding facility of $100 million, a condition of the closing of the equity placement, and has reached agreement with its bank syndicate on more appropriate covenants for the remainder of the debt term. Tom Ehret, Chief Executive Officer said, "The receipt of $100 million of new equity and a $100 million bonding facility is an important milestone in Stolt Offshore's financial recovery. The support of our clients as well as our major creditors, led by HSBC, has been an important factor over the past six months and we are pleased to be returning to a more routine operating environment." Stolt Offshore is a leading offshore contractor to the oil and gas industry, specializing in technologically sophisticated deepwater engineering, flowline and pipeline lay, construction, inspection and maintenance services. The Company operates in Europe, the Middle East, West Africa, Asia Pacific, and the Americas CONTACT: STOLT OFFSHORE S.A. Julian Thomson Fiona Harris Phone: (U.S.) +1 877 603 0267 (toll free) Phone: (U.K.) +44 1224 718436 E-mail: julian.thomson@stoltoffshore.com BRUNSWICK GROUP Patrick Handley (U.K.) Tim Payne (U.S.) Phone: (U.K.) +44 207 404 5959 Phone: (U.S.) +1 212 333 3810 E-mails: phandley@brunswickgroup.com tpayne@brunswickgroup.com =========== R U S S I A =========== GRYAZINSKY LIME: First Bankruptcy Hearing Set April 22 ------------------------------------------------------ The Arbitration court in Lipetsk region opened bankruptcy and supervision proceedings on JSC Gryazinsky Lime Plant. T. Kozhenkova has been appointed temporary manager of the company. A hearing will be held at Lipetsk region Arbitration court on April 22, 2004, 2:30 p.m. Creditors of the company are asked to file claims at: 398002, Lipetsk, Ignatyeva str., 29, of.14. ISKITIMSKY LIME: Placed Under Bankruptcy Supervision ---------------------------------------------------- The Arbitration court of Nonosibirsk region resolved the case lodged against JSC Iskitimsky Lime Quarry in December by putting the company under bankruptcy supervision. The court has appointed Y. Erdikov temporary manager of the company. Creditors wanting to file claims are required to submit the necessary documents to: 630039, Novosibirsk, Nikitina str., 114. On May 5, 2004 a court proceeding will be held in relation to the bankruptcy supervision procedure of the company. CONTACT: ISKITIMSKY LIME QUARRY Novosibirsk region Iskitim city Beregovaya str., 1 MOTOROSTROITEL: Given Ultimatum to Improve Financial Standing ------------------------------------------------------------- Russia's Federal Service for Financial Reorganization has given JSC Motorostroitel, one of the major industrial enterprises in Samara region, until April to stabilize its financial position. Failure to do so would mean bankruptcy for the company. JSC Motorostroitel has debts of RUB527 million as of November 1, 2003. Previous years debts were RUB432 million. The company previously sold motors at double-reduced prices to Promtekhresourse company, losing about RUB130 million in turnover. The company's financial standing is further weakened by its practice of recording main profits in the accounts of external companies. NOVOTROITSKY CONCRETE: Declared Bankrupt ---------------------------------------- The Arbitration court in Orenburg region started bankruptcy supervision proceedings on JSC Novotroitsky Concrete Product Plant-1 in December. S. Smirnov, a member of RF Commerce Chamber self-regulated organization of arbitral managers, has been appointed receiver or temporary manager. The court will hear the bankruptcy case on March 31, 2004 at Orenburg city, January 9 str., 64. For additional information, contact the company or its receiver by Mail: 462356, Orenburg region, Novotroitsk city, Orlovskaya str., 6. SELKHOZTEKHNIKA: Court Prescribes Bankruptcy Proceedings -------------------------------------------------------- The Arbitration court of Voronezh region declared Open Joint- stock company, Selkhoztekhnika, insolvent on January 9, 2004. On the same day, the bankruptcy proceedings of the company, which will last 12 months, also started. D. Zakarian has been appointed insolvency manager. Creditors may file their claim until April 7, 2004 at: 394030, Voronezh, Srednemoskovskaya, 12. TUYMAZINSKY MEDICAL: Falls into Bankruptcy ------------------------------------------ State Unitary Enterprise Tuymazinsky medical Glass Plant in Bashkortostan was declared bankrupt January 9, 2004. Korsakov has been appointed insolvency manager. Creditors may file their claims at: 119180, Moskow, 3th Golutvinskiy Lane 10, building 6, or 450005, Ufa city, Post box 86. CONTACT: Korsakov, Insolvency Manager Phone: (095) 792-34-73/74 ===================== S W I T Z E R L A N D ===================== ABB LTD.: To Supply Advanced Drives to Chinese Steel maker ---------------------------------------------------------- ABB, the leading power and automation technology group, said it has received a US$20 million contract from China's Jiangsu Shagang Group Co., Ltd. to supply all drive systems and power supply equipment for a "greenfield" heavy plate rolling mill. The new mill will be built near Shanghai in Jiangsu Province in cooperation with the engineering firm Voest -Alpine Industrieanlagenbau of Austria. "This project continues a long line of achievements for ABB in China's metals industries," said Dinesh Paliwal, head of ABB's Automation Technologies division. "The combination of our core motors and drives technology and metals processing expertise is helping customers across Asia meet their capacity and precision goals." ABB's rolling mill expertise and state-of-the-art drive systems were cited as factors deciding the key project role. Rolling mill operations are characterized by rapidly varying loads, fast changes between driving and braking, and constant torque over a wide speed range, so moving equipment must function with high precision and overload capability. ABB will supply several advanced drives solutions, including two ABB 11.5 MW main motors. Jiangsu Shagang Group is one of China's leading steel producers, and aims to increase annual production capacity for rolled steel to ten million tons by 2005. The new rolling mill is scheduled to produce its first plates in widths up to five meters within 28 months. ABB (http://www.abb.com)is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 120,000 people. VON ROLL: Reports Progress of Financial Restructuring ----------------------------------------------------- Following the financial restructuring of Von Roll and the sale of the Inova group and the Infratec group in 2003, the restructured company has gotten off to a successful fresh start. The adjusted balance sheet indicates an equity ratio of around 35%. Operative restructuring cost burdened the 2003 results. Revenues declined due to the weak circumstances of Von Roll markets. Initial success of the restructuring measures is visible. The company should be able to return to the black figures in 2004, though further substantial efforts to improve will be required. Detailed 2003 results will be presented to the public on March 31, 2004. The General Meeting of shareholders will take place in Zurich on May 26, 2004. The past financial year was extremely turbulent for Von Roll. The deep uncertainty among clients, suppliers and the company's employees regarding the refinancing and divestiture of various divisions considerably impacted on the run of business. The restructuring of Von Roll's balance sheet, which was pivotal to the Group's survival, was concluded in August 2003 with the consent of the bondholders. All stakeholders of the old Von Roll Group contributed considerably through their constructive attitude during the complex financial restructuring process. The remaining Infratec operations were sold off at the end of May, and Von Roll Inova was sold at the end of October. Virtually all the jobs both inside and outside Von Roll remained intact. Initial progress was made in the fall of 2003 in the operational restructuring of Von Roll Isola, focusing on its core business in electrical insulation systems and composite materials. An efficiency drive that is ambitious in terms of both its timeframe and its objectives will entail the streamlining of the organizational structure, substantial and long-term cuts in administrative costs, the adaptation of capacity to the respective market situation, simplified sales procedures, and stepped-up efforts at innovation. For the projects not yet concluded the necessary provisions and impairments have been included in the 2003 financial results. Von Roll's year-end figures are extremely difficult to compare with those from the previous year. Von Roll's consolidation circle changed for good during 2003. Positive developments in the Group's operating results are overlaid by net income from the refinancing operation, the positive and negative consequences of company sales, and provisions and impairments from Von Roll Isola's efficiency drive. The further striking contraction of market volume caused a 17% drop (on a comparable basis) in orders received by Von Roll Isola, to CHF388 million, and prompted a 16% decrease in net sales to CHF390 million. The company's operating loss before special charges and impairments, totaling CHF7 million, The profit after tax inclusive all special charges totals -CHF52 million (compared with -CHF138 million the previous year). Including the debt-equity swaps of the financial restructuring the equity amounts to CHF104 million at the end of 2003. With it the equity ratio equals to 35%. Although it is still extremely difficult to forecast market trends, the situation in Europe would appear to have reached its bottom. In North America the trend is slightly buoyant, while Asia -- especially the Chinese market - is reporting robust growth, albeit from a starting point that remains low. The first month of 2004 started off according to plan. Though it is too soon to expect any rapid, sustained recovery in demand on Von Roll's main markets. The initiated restructuring measures will further improve the results. The management believes that its set objective of attaining a positive result during the current financial year is realistic from its point of view. Additional information on the end-of-year figures for 2003 and on the company's current business situation will be provided at the balance sheet media and analysts' conference to be held in Zurich on March 31, 2004. Von Roll Isola 2002 2003 in millions of in millions of CHF CHF Order intake with third parties 467 388 Sales with third parties 489 390 Backlog with third parties 66 55 Operating result before special charges and impairments - 8 - 7 EBITDA 20 16 Personnel 2,271 2,037 Von Roll Group 2002 2003 in millions of in millions of CHF CHF Order intake with third parties 1,290 818 Sales with third parties 1,253 695 Profit after tax - 138 - 52 Equity 14 104 Equity ratio 2% 35% CONTACTS: VON ROLL GROUP 12 Von Roll Holding AG, 8045 Zurich Corporate Finance: Werner Matzner Phone: +41 1 204 30 80 Fax: +41 1 204 30 64 Corporate Communications Celine Aubry Phone: +41 1 204 30 01 Fax: +41 1 204 30 E-mail: press@vonroll.ch =========================== U N I T E D K I N G D O M =========================== ADVANCED VEHICLE: Creditors Meeting Set February 20 --------------------------------------------------- Notice is hereby given, pursuant to section 98 of the Insolvency Act 1986, that a Meeting of the Creditors of Advanced Vehicle Designs Limited will be held at Century House, Ashley Road Hale, Cheshire WA15 9TG, on February 20, 2004, at 12:00 noon. Creditors who wish to vote at the Meeting must lodge their proxy, together with a full statement of account at the registered office at Century House, Ashley Road, Hale, Cheshire, not later than 12:00 noon on the business day preceding the date of the Meeting. For the purposes of voting, a secured Creditor is required (unless he surrenders his security) to lodge at Milner Boardman & Partners, Century House, Ashley Road, Hale, Cheshire, before the Meeting, a statement giving particulars of his security, the date when it was given and the value at which it is assessed. Notice is further given that a list of the names and addresses of the Company's Creditors may be inspected, free of charge, at Century House, Ashley Road, Hale, Cheshire between 10:00 a.m. and 4:00 p.m. on the two business days preceding the date of the Meeting stated above. By Order of the Board. R. Dixon, Director ALBANY CARS: Appoints Alison Byrne Liquidator --------------------------------------------- At an Extraordinary General Meeting of the Members of Albany Cars Limited, on February 5, 2004 held at The Coach House, Folleigh Lane, Long Ashton, Bristol BS41 9JB, the subjoined Special Resolution for the company's voluntary wind-up was duly passed. Alison Byrne was appointed as liquidator. BEESON GREGORY: Winding up Resolution Passed -------------------------------------------- At an Extraordinary General Meeting of the Beeson Gregory Group Limited, on 27 January 2004, the subjoined Special Resolution to voluntarily wind up the company was passed. The Company assigned Richard Setchim and Tim Walsh of PricewaterhouseCoopers LLP, Plumtree Court, London EC4A 4HT, be and are hereby appointed Joint Liquidators. CONTACT: PricewaterhouseCoopers LLP Plumtree Court, London EC4A 4HT Contacts: Richard Setchim, Liquidator Tim Walsh, Liquidator Phone: [44] (20) 7583 5000 Fax: [44] (20) 7822 4652 Web site: http://www.pwcglobal.com BIL CONSULTANTS: Mazars Appointed Liquidator -------------------------------------------- At an Extraordinary General Meeting of the Bil Consultants (U.K.) Limited, on January 28, 2004, at 20 Collyer Quay 16- 02/03, Tung Centre, Singapore 049319, the subjoined Special Resolution to voluntarily wind up the company was duly passed. David Richard Thorniley and Christopher Rodney Ashurst of Mazars, 24 Bevis Marks, London EC3A 7NR, were appointed by the company as their Joint Liquidators. CONTACT: MAZARS 24 Bevis Marks London EC3A 7NR Contacts: David Richard Thorniley, Liquidator Christopher Rodney Ashurt, Liquidator Phone: (44) 20 73 77 10 00 Fax : (44) 20 73 77 89 31 Web site: http://www.mazars.com COGGINS WELCH: In Administrative Receivership --------------------------------------------- Name of Company: Coggins Welch Limited Nature of Business: Wholesalers, Retailers and Maintenance Engineers of Refrigeration, Air Conditioning and Ancillary Equipment. It employs 50 people. Trade Classification: 15 Date of Appointment: January 29, 2004 Joint Administrative Receivers: Grant Thornton Heron House, Albert Square Manchester M60 8GT Receivers: Leslie Ross Sean Kenneth Croston (IP Nos 7244, 8930) Company Address: Coggins Welch Ltd, Plox Brow, Tarleton, Preston PR4 6HB Phone: 01772 817111 Fax: 01772 817160 / 812323 Web site: http://www.coggins-welch.co.uk CORUS GROUP: Ratings Off CreditWatch on Better Market Prospects --------------------------------------------------------------- As a result of an improving outlook for the global steel industry, Standard & Poor's Ratings Services removed from CreditWatch its 'B' long- and short-term corporate credit, 'B+' secured bank loan, and 'CCC+' senior unsecured debt ratings on U.K.-based steel consortium Corus Group PLC (Corus) and Corus Finance PLC, where they were placed on Oct. 6, 2003. At the same time, the ratings on Corus and the above-mentioned subsidiary were affirmed. The outlook is stable. "Recently announced steel price increases and surcharges should be sufficient to compensate producers for higher input costs (such as for iron ore, scrap, coke, and freight)," said Standard & Poor's credit analyst Tommy Trask. "Furthermore, A weak U.S. dollar and a strong euro should also help Corus, given that it has higher expenses than income in U.S. dollars and vice-versa for euros." Volumes are expected to continue to be weak for the foreseeable future however, and the risk of rising imports into Europe is high given the strong euro. Nevertheless, the recent GBP291 million ($541 million) (net) share placing has improved Corus' liquidity position and given the company more time to carry out the much needed U.K. restructuring program, which aims to restore competitiveness by 2006. The improved market outlook combined with Corus' improved liquidity means that the company has a window of opportunity during which to carry out necessary restructuring and cost- saving initiatives. The key challenge continues to be the restructuring of the loss-making U.K. operations and turning free cash flow from negative to positive. CONTACTS: STANDARD AND POOR'S RATING Analyst E-mail Addresses: tommy_trask@standardandpoors.com olivier_beroud@standardandpoors.com CorporateFinanceEurope@standardandpoors.com EGG PLC: Amended Personal Insolvency Rules May Derail Sale Plan --------------------------------------------------------------- Online bank Egg could suffer the most when personal insolvency rules in the U.K. are loosened, a top City analyst has warned, according to reports. Mark Thomas of Fox-Pitt Kelton said Egg's entire U.K. profits could be wiped out when rules are changed, freeing bankrupts from their liabilities only after 12 months. Another bank that stands vulnerable is Royal Bank of Scotland. Lloyds TSB and Barclays may suffer only as much as 10% of profits. The timing of the change is critical. The bank just recently put itself up for sale. Egg's U.K profits reached GBP56.7 million in the first nine months of 2003. ELDRIDGE POPE: First Half May Not Show Recovery, Chairman Says -------------------------------------------------------------- At Thursday's AGM, Miles Templeman who was appointed Chairman of Eldridge Pope & Co plc on January 6, 2004, provided this update to Shareholders: "Sales and profit levels remain in line with our outlook statement at the time of our prelim statement of December 5, 2003 with trading conditions on the High Street continuing to be difficult. As we stated in December, it is unlikely that the timing of the recovery will show in the first half results but the Board is confident that it has adopted the correct strategy and has taken the necessary steps to restore value to shareholders. "I am still learning about the Company. I am impressed with the quality of the management and the business improvement strategy, which focuses on fundamental retail disciplines, has clearly begun. We will be continuing with this approach and I shall be working with the team with the particular objectives of increasing margins both in food and drink and in optimizing the returns from the Company's total property portfolio." ***** The company is currently exiting underperforming assets. In the last few months it has sold 23 pubs for GBP5.4 million as part of the cost-cutting drive. CONTACT: ELDRIDGE POPE & CO PLC Miles Templeman, Chairman Susan Barratt, Chief Executive Phone: 01305 258195 COLLEGE HILL Justine Warren Matthew Smallwood Phone: 020 7457 2020 EQUITABLE LIFE: Privy to Much-awaited Report on Demise ------------------------------------------------------ Equitable Life senior executives were able to see in advance copies of parts of Lord Penrose's report into the collapse of the insurer. Ruth Kelly, Financial Secretary to the Treasury, said that serving directors of Equitable had received the report to assist the Treasury in its "public function," according to Times Online. Equitable is understood to be advising ministers in their response to the report, the report said. The preview angered policyholder action groups and Opposition MPs, prompting them to suspect the publication of the Penrose report could take longer than expected. The report is set to be made public February 23, when the Parliament recesses. EUROTUNNEL PLC: Life-saving Plan Gets Encouraging Response ---------------------------------------------------------- SNCF, the French national railway, last week suggested it is supporting the efforts of Eurotunnel, the Channel Tunnel operator, to reduce its GBP6.4 billion debt. The railway operator said it would sit on the table with Eurotunnel to discuss the company's proposal to boost the cross- Channel rail market, and lower debt, according to The Times. Loss-making Eurotunnel plans to cut the amount it charges Eurostar and rail freight operators for using the tunnel to increase traffic. But to compensate the fall in revenues from the railways, it wants "significant reduction" in its debt levels and interest payments. Alternatively, it proposes that Eurostar, London and Continental Railways, which is building the high-speed Channel Tunnel Rail Link, and SNCF, could subscribe to a large portion of new shares Eurotunnel will offer in an effort to pay down debt. Eurotunnel has opened negotiations with railway operators, including SNCF, and the British and French Governments. Bechtel Group Inc. may invest GBP900 million (US$1.7 billion), the Independent said on Sunday, without saying where it got the information, according to Bloomberg. London & Continental Railways Ltd., which is 22% owned by San Francisco-based Bechtel, met with officials from Eurotunnel and the U.K.'s Department of Transport last week to discuss the plans, the newspaper said. HOLLAND LIMITED: Appoints Moore Stephens Joint Administrator ------------------------------------------------------------ Name of Company: Holland (Europe) Limited Nature of Business: Manufacture of Truck and Trailer Suspensions Trade Classification: 07 Date of Appointment: January 30, 2004 Joint Administrative Receivers: Moore Stephens Corporate Recovery Beaufort House 94-96 Newhall Street Birmingham B3 1PB Receivers: Roderick Graham Butcher Nigel Price (IP Nos 8834 and 8778) HOWARD ANDERSON: Appoints PricewaterhouseCoopers Receivers ---------------------------------------------------------- Name of Company: Howard Anderson Limited Reg No.: 02479694 Previous Name of Company: Holden and Brooke Limited Nature of Business: Manufacture of Pumps and Compresssors Trade Classification: 07 Date of Appointment of Joint Administrative Receivers: February 2, 2004 Name of Person Appointing the Joint Administrative Receivers: Barclays Bank plc Joint Administrative Receivers: PricewaterhouseCoopers LLP 9 Bond Court, Leeds LS1 2SN Receivers: Ian David Green Michael Horrocks (Office Holder Nos 9045, 8026) INVENSYS PLC: Ratings on Watch Negative; Revised Strategy Cited --------------------------------------------------------------- Standard & Poor's Ratings Services placed its ratings on U.K.- based engineering group Invensys PLC on CreditWatch with negative implications, including its 'BB-' long-term corporate credit rating, following the group's announcement of a revised business strategy and GBP2.7 billion ($5.1 billion) refinancing plan. "The CreditWatch placement reflects that Invensys has broadly curtailed its disposal program and will no longer reduce debt in line with previous expectations," said Standard & Poor's credit analyst Leigh Bailey. "This is expected to negatively affect the group's financial leverage and credit metrics, which are already stretched for the rating, despite the group's raising of new equity as part of the revised plan." Furthermore, the group's decision to retain the appliance and climate controls businesses, which account for about GBP1 billion in annual revenues, represents a major change in Invensys' stated business strategy of concentrating operations on a smaller focused core group based around its production management and rail businesses. The larger group is a diverse range of businesses offering limited synergies, which might prove more operationally challenging to manage. Following the refinancing, Invensys will have total balance sheet debt of about GBP1.85 billion. CONTACTS: STANDARD AND POOR'S RATING ANALYST E-MAIL ADDRESSES leigh_bailey@standardandpoors.com bob_ukiah@standardandpoors.com CorporateFinanceEurope@standardandpoors.com INVESTEC PROPERTY: Voluntary Winding up Resolution Passed --------------------------------------------------------- At an Extraordinary General Meeting of the Investec Property Motorists Services Limited, on January 28, 2004 at 2 Gresham Street, London EC2V 7QP, the following subjoined Special Resolution to wind up the company was passed. Susan Margaret Roscoe of Critchleys was assigned by the company as the liquidator. CONTACT: CRITCHLEYS Greyfriars Court, Paradise Square, Oxford OX1 1BB Contact: Susan Margaret Roscoe, Liquidator Phone: 01865 261100 Fax: 01865 261201 Web site: http://www.critchleys.co.uk K & F DEVELOPMENTS: John David Travers Appointed Liquidator ----------------------------------------------------------- At an Extraordinary General Meeting of the K&F Developments Limited, on January 21, 2004, at Hindsight Tax Partners, 12 The Riverside Studios, Amethyst Road, Newcastle NE4 7YL, the subjoined Resolutions that the company has voluntarily wind up. John David Travers and David Michael Clements of Haines Watts, First Floor, Park House, Park Square West, Leeds LS1 2PS, are appointed by the company as Joint Liquidators. CONTACT: HAINES WATTS First Floor, Park House Park Square West, Leeds LS1 2PS Contacts: John David Travers, Liquidator David Michael Clements, Liquidator Sterling House, 1 Sheepscar Court, Meanwood Road, Leeds, W Yorks LS7 2BB Phone: 0113 398 1100 Fax: 0113 398 1101 E-mail: leeds@hwca.com LEEDS UNITED: Standstill Extended as Selloff Talks Continue ----------------------------------------------------------- The Board of Leeds United plc confirms that its major finance creditors granted an extension to the existing standstill arrangements until 2 p.m. on Friday, 27 February 2004 pending the outcome of negotiations with interested parties, including a Yorkshire based consortium [headed by local businessman Gerald Krasner], and further discussions concerning the longer term restructuring of the Group. On the basis of the current discussions, the Board of the Company re-iterates that it does not believe that there will be any realization of value for shareholders from the offers being contemplated. ***** According to Reuters, Ugandan property tycoon Michael Ezra told a local paper on Sunday he had offered GBP60 million to the company, but was held up on an argument regarding the board's compensation. Leeds owes GBP60 million to American firms Teachers and Metlife and U.K. firm M&G after taking out a 25-year bond securitized against gate receipts. CONACT: LEEDS UNITED Trevor Birch Chief Executive Phone: 0113 367 6000 Neil Robson, Finance Director MAGELLAN COMMUNICATIONS: P&A Partnership Appointed Receivers ------------------------------------------------------------ Name of Company: Magellan Communications Limited Nature of Business: Information Technology Consultants Trade Classification: 7260 Date of Appointment: February 2, 2004 Joint Administrative Receivers: The P&A Partnership 93 Queen Street, Sheffield, S1 1WF Receivers: Brian Stanley Creber John Russell (IP Nos 1062, 5544) MARCONI CORPORATION: Details Directors' Interests ------------------------------------------------- Marconi Corporation plc (London: MONI and Nasdaq:MRCIY) announces that its Remuneration Committee adjusted outstanding options to acquire ordinary shares in the Company for certain of its directors and senior managers, in line with its one for five share consolidation that took effect on September 9, 2003. The Company also announces that it has granted an option to acquire ordinary shares of 25p in the Company to Pavi Binning, chief financial officer, as previously described in the announcement of July 24, 2003 detailing Mr. Binning's appointment. The option was granted under the Marconi Corporation plc Senior Management Share Option Plan. Details of the number of shares over which options are outstanding for directors of the Company after the adjustment and grant referred to above follow: Director Shares of 25p Shares of 5p Total exercise (after (prior to price payable adjustment) adjustment) per exercise P S Binning 1,000,000 - GBP1.00 J F Devaney 600,000 3,000,000 GBP1.00 M J Donovan 2,000,000 10,000,000 Nil M W J Parton 3,500,000 17,500,000 GBP1.00 In addition, the Company announces the acquisition of ordinary shares of 25p in the Company, as detailed below, by Mr. M K Atkinson, Mr. P S Binning, Mr. W K Koepfand, Mr. D F McWilliams, directors of the Company. CONTACTS: MARCONI CORPORATION PRESS Joe Kelly Phone: 0207 306 1771 E-mail: joe.kelly@marconi.com David Beck Phone: 0207 306 1490 E-mail: david.beck@marconi.com INVESTOR Heather Green Phone: 0207 306 1735 E-mail: heather.green@marconi.com MEPC LIMITED: Fitch Affirms 'BB/B' Ratings; Outlook Negative ------------------------------------------------------------ Fitch Ratings affirms U.K. property company MEPC Limited's Senior Unsecured and Short-term ratings at 'BB' and 'B' respectively. The Outlook remains Negative as Fitch is concerned that further funds could be upstreamed from MEPC to its shell holding company, Leconport Estates Ltd (now wholly- owned by Hermes), through a further inter-company GBP200 million facility. Using this route to place disposal proceeds with Leconport further reduces MEPC's own financial flexibility, and would be of utmost concern for bondholders given the immediacy of near- term debt expiries. MEPC's refinance risk over 2004 and 2006 is particularly acute given committed bank debt expiries (facilities of GBP345 million, GBP230 million drawn at September 2003) and the near- dated bonds (2004: GBP46 million; 2006: GBP153 million). Mitigating this risk, Fitch takes comfort from a new GBP350 million facility (maturity September 2007, committed, unsecured, no change of control wording) signed with the BT Pension Scheme (Hermes's owner and largest client). To also help meet principal due, there is also the possibility, much rumored, of selling the Factory Outlet portfolio for around GBP200 million. Currently, bondholders also benefit from both a maximum gearing covenant and a negative pledge clause. However, such group covenants no longer apply when existing bank facilities mature, likewise for the 8.75% 2006 bond's negative pledge, and the 12% 2006 bond's inner limit provisions. The 2032 bond only has the gearing covenant. Indeed, the 2006 bond's negative pledge is weak, as it's wording allows domestic currency secured debt. There is also a restriction on disposals clause. The post-2006 weak-covenanted bondholders are exposed to any detrimental or protective provisions in coexisting funding facilities and their implications for the group after the above-mentioned bond mechanisms fall away. This could dramatically affect MEPC's post-2006 credit rating. Despite this liquidity support attributable to near-dated debt, Fitch has concerns that remaining long-dated unsecured bondholders (particularly the 2032, GBP125 million currently outstanding) are faced with a deteriorating lease term profile (average length of 7.9 years at FYE03 versus 8.9 years at FYE02), as well as weaker bond documentation protection. Furthermore, the coupon on this bond is 10.5% and MEPC's derivatives overlay still incurs costs. Ultimately remaining bondholders are relying on MEPC no longer shrinking its property portfolio and its GBP1.33 billion of deposits lodged with Leconport being available for debt repayment. MEPC's ratings reflect the good overall quality of the assets, stable income from the investment portfolio, diverse tenant base, minimal development exposure and the clearer ownership structure with Hermes as sole shareholder. However, it suffers from insufficient debt serviceability, less diversified exposure to a poor underlying business park market and an asset/liability mismatch in terms of short-term leases and potential rent fluctuations versus remaining long-dated, fixed-coupon debt obligations. MEPC's financial parameters are tighter as assets have been sold, thus property asset cover for unsecured bondholders is now 1.6x. Debt serviceability (Net Interest cover of 0.7x at FY03, excluding interest receivable from Leconport) is still dependent on interest receivable on the Leconport loan to cover expensive cost of funds (due to the aforementioned high coupon and swaps overlay). This may be accentuated in the short term by weak tenant demand, leading to falling rents and extended rent free periods. Gross interest cover is expected to improve as existing rent frees cease and corporate costs are cut. MEPC's current business space vacancy rate is 19% (measured by space) and includes still to-be-let developments (e.g. Chineham Park, Basingstoke; Leavesden Park, Watford). There is however the possibility of a revival in business space take-up in 2004/05 aiding debt serviceability in the future. In addition although the portfolio is concentrated in office business parks, only 12% is located in the market in and around the M25, currently the weakest segment of the business space sector. MEPC had GBP1.07 billion of property assets at January 2004 and an annualized net rent roll of GBP56 million. The portfolio at YE03 was split: Office/Business Park 81%, Factory Outlet Centre 19%. CONTACT: FITCH RATINGS Jean-Pierre Husband London Phone: +44 (0) 20 7417 6304 John Hatton London Phone: +44 (0) 20 7417 4283 MEDIA Alex Clelland London Phone: +44 20 7862 4084 RCF PROJECTS: Kerr and Hamblin Appointed Administrators ------------------------------------------------------- Name of Company: RCF Projects Limited Nature of Business: Engineering and Allied Industries RCF, incorporated in 1982, provides comprehensive stainless steel vessel manufacturing, process equipment and pipework installation service to the food, brewing, beverage, pharmaceutical and chemical and dairy industries and other sectors of industry. Trade Classification: 07 Date of Appointment: February 2, 2004 Joint Administrative Receivers: PFK Pannell House, 159 Charles Street, Leicester LE1 1LD Receivers: Edward T. Kerr Brian J. Hamblin (IP Nos 9020, 2085) Company Address: 1A Salters Way, Wisbach Cambs., U.K PE14 0SH Phone: (44) 1945 580222 Fax: (44) 1945 580444 Web site: http://www.rcf-eng.com RIPON CARAVANS: Appoints Jackson Jolliffe Cork Liquidator --------------------------------------------------------- At an Extraordinary General Meeting of the Members of the Ripon Caravans Limited, on January 27, 2004, at 8 Hillside Road, Pannal, Harrogate, the subjoined Resolution that the Company has voluntarily wind up has been passed. Matthew Colin Bowker of Jacksons Jolliffe Cork, 35 East Parade, Harrogate HG1 5LQ, has been appointed by the Company as Liquidator. CONTACT: JACKSONS JOLLIFFE CORK 35 East Parade, Harrogate HG1 5LQ Contact: Matthew Colin, Liquidator York House, 15 Clifford Street YORK YO1 9RG Phone: 01904 652100 Fax: 01904 635349 Web Site: http://www.jjcork.co.uk SMALL ICONS: PKF Pannell House Appointed Administrators ------------------------------------------------------- There will be a Meeting of the Creditors of Small Icons Limited, formerly PKF Pannell House at 159 Charles Street, Leicester LE1 1LD. While its former company Total Products (Packaging) Limited will have their meeting held on March 1, 2004, at 2:30 p.m., at Regents House, Clinton Avenue, Nottingham NG5 1AZ. Joint Administrators of the company are Brian J. Hamblin and Edward T. Kerr both of PKF Pannell House. CONTACT: PKF PANNELL HOUSE 159 Charles Street, Leicester LE1 1LD Contact: Brian J. Hamblin Edward T. Kerr * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------ -------- AUSTRIA ------- Libro A.G. (111) 174 (182) BELGIUM ------- Real Software REAL (110) 216 (10) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (2,186) DENMARK ------- Elite Shipping (28) 101 19 FRANCE ------ Banque Nationale de Paris Guyane (41) 352 N.A. BSN Glasspack (101) 1,151 179 Bull S.A. BULP (760) 893 (130) Compagnie Francaise de l'Afrique Occidentale (65) 256 21 Cofidur S.A. (5) 102 19 Dollfus-Mieg & Co. DOLP (0) 187 28 European Computer System (110) 682 377 Grande Paroisse S.A. (927) 629 330 Immobiliere Hoteliere (68) 233 29 Pneumatiques Kleber S.A. (34) 480 139 SDR Picardie (135) 413 N.A. Soderag (3) 404 N.A. Sofal S.A. (305) 6,619 N.A. Spie-Batignolles (16) 5,281 75 St Fiacre (FIN) (1) 111 (33) Trouvay Cauvin TRCN (0) 134 10 Usines Chauson (23) 249 35 GERMANY ------- Dortmunder Actien-Brauerei DABG (13) 118 (29) F.A. Guenther & Sohn A.G. GUSG (8) 111 N.A. Kaufring A.G. KAUG (19) 151 (51) Mania Technologi MNI (11) 101 (46) Nordsee A.G. (8) 195 (31) Schaltbau A.G. SLTG (16) 163 20 Vereinigter Baubeschlag-Handel Holding A.G. VBHG (24) 307 (63) ITALY ----- Binda S.p.A. BND (11) 129 (20) Credito Fondiario e Industriale S.p.A. CRF (200) 4,218 N.A. NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 United Pan-Euro Air UPC (5,266) 5,180 (8,730) NORWAY ------ Pan Fish A.S.A. PAN (117) 806 (259) Petroleum-Geo Services PGO (32) 2,963 (5,250) POLAND ------ Animex S.A. (1) 108 (86) Exbud Skanska S.A. EXBUF (9) 315 (330) Mostostal Zabrze (6) 227 (366) Stalexport S.A. (57) 229 (51) RUSSIA ------ Kamchatskenergo 273 (7,870) SPAIN ----- Altos Hornos de Vizcaya S.A. (116) 1,283 (278) Santana Motor S.A. (46) 223 41 Sniace S.A. (11) 128 (24) Tableros de Fibras S.A. TFI (43) 2,107 125 SWITZERLAND ----------- Kaba Holding A.G. KABZN (47) 572 278 UNITED KINGDOM -------------- Abbot Mead Vickers (2) 168 (16) Alldays Plc ALD (120) 252 (202) Amey Plc AMY (49) 932 (47) Bonded Coach Holiday Group Plc (6) 188 (44) Blenheim Group (153) 198 (34) Booker Plc BKRUY (60) 1,298 (8) Bradstock Group BDK (2) 269 5 Brent Walker Group (1,774) 867 (1,157) British Nuclear Fuels Plc (2,627) 36,359 (1,948) British Sky Broadcasting BSY (175) 3,347 (144) Center Parcs (UK) Group Plc (77) 423 (227) Compass Group CPG (668) 2,972 (298) Costain Group COST (34) 329 (12) Dawson Holdings DWSN (29) 142 (29) Easynet Group Plc ESY (12) 332 53 Electrical and Music EMI Industries Group (885) 3,053 (435) Gallaher Group GLH (543) 5,527 68 Gartland Whalley (11) 145 (8) Global Green Tech Group (156) 408 (18) Heath Lambert Fenchurch Group PLC (10) 4,109 (10) HMV Group PLC HMV (211) 762 (66) Intertek Testing Services ITRK (134) 425 67 IPC Media Ltd. (685) 254 16 Lambert Fenchurch Group (1) 1,827 3 Lattice Group (1,290) 12,410 (1,228) Leeds United PLC (73) 144 (29) Manchester City (17) 154 (21) Misys PLC MSY (161) 949 41 Mytravel Group 2,551 (533) Orange PLC ORNGF (594) 2,902 7 Rentokil Initial Plc RTO (1,130) 2,809 (37) Saatchi & Saatchi SSI (119) 705 (41) Seton Healthcare (11) 157 0 Telewest Communication 7,329 (3,770) Yell Group PLC (196) 3,964 289 Each Tuesday edition of the TCR-Europe contains a list of companies with insolvent balance sheets based on the latest publicly available balance sheet available to our editors at the time of publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Larri-Nil Veloso, Ma. Cristina Canson, and 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. 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