/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/040304.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 Thursday, March 4, 2004, Vol. 5, No. 45 Headlines G R E E C E ROYAL OLYMPIA: Greek Court Appoints Administrator over 4 Units I R E L A N D VALENTIA TELECOMMUNICATIONS: Ratings Lowered; Outlook Stable I T A L Y PARMALAT FINANZIARIA: Administrator Forms Creditors Committee PARMALAT FINANZIARIA: Authorities Train Eye on Bank of America UMS UNITED: Sells Italian Business for EUR9 Million N E T H E R L A N D S VILENZO INTERNATIONAL: Market Regulator Suspends Trading N O R W A Y AKER KVAERNER: Splitting into Three Separate Companies R U S S I A GAZOVIK: Declared Insolvent GUSCHINSKY MUKOMOL: Under Bankruptcy Supervision Procedure INCORPORATED CAPITAL: Deadline for Proofs of Claim April 28 KASHIRSKY INTEGRATED: Court Appoints Insolvency Manager KRASNOYARSK: Auction of Properties March 29 NENEZKAYA: Auction of Nenezko-Belarus Shareholding Set March 23 NOVOKUZNEZK INTEGRATED: Under Bankruptcy Supervision Procedure OSKOLNEFTEPRODUCT: Under Bankruptcy Supervision Procedure TULUNSKY: Court Opens Bankruptcy Proceedings TYMENTRANSSTROY: Under Bankruptcy Supervision Procedure WOOD-WORKING: Court Names Alexandr Arendachuk Insolvency Manager S W E D E N LM ERICSSON: Better Financial Standing Merits Outlook Upgrade U N I T E D K I N G D O M ABBEY NATIONAL: Cahoot Hikes Current, Savings Accounts Rates ADVANTAGE CARE: Appoints Tenon Recovery Liquidator AEON BIOTECH: Names Baker Tilly Liquidator AMP LIMITED: Analysts See Biggest Ever Second-half Loss AUSTIN REED: Completes Sale of Sackville Street Property BRITISH AIRWAYS: Wants Incentive Scheme Fine Overturned CAITHNESS HOLDINGS: Names Deloitte & Touche Receiver CARING TOGETHER: Hires Receivers from PricewaterhouseCoopers CCF TRADING: Brings in Administrator from PricewaterhouseCoopers COSMIC GLOBAL: GMAC Commercial Hires Administrative Receivers EGG PLC: Prudential Likely to Shelve Stake Sale EURODIS ELECTRON: Completes EUR51.8 Million Share Issuance HOLLINGER INC.: Barclay Twins Pull out Buyout Offer IMPERIAL CHEMICAL: Quest's Food Ingredients Biz Nets US$365 Mln IMPERIAL CHEMICAL: S&P Retains BBB/Stable/A-2 Ratings INVENSYS PLC: May Announce Disposal of Powerware this Month INVENSYS PLC: Shareholders Approve Refinancing Plan KARRIMOR INTERNATIONAL: Hires Begbies Traynor as Receiver PAUL HODGSON: Creditors Assembly Set March 12 SALE GROUP: In Administrative Receivership WELCOME BREAK: Insolvency Threat Unfounded, Says S&P WHITACRES LIMITED: Administration Order Passed ********* =========== G R E E C E =========== ROYAL OLYMPIA: Greek Court Appoints Administrator over 4 Units -------------------------------------------------------------- Royal Olympia Cruises (Nasdaq: ROCLF) says the Greek Maritime Court of appeal of Piraeus has placed the company's subsidiaries, Elliniki Etairia Diipeirotikon Grammon A.E., Valentine Oceanic Trading Inc., Freewind Shipping Company and Ocean Quest Seacarriers Limited, under administration. The subsidiaries own vessels Odysseus, Triton, World Renaissance and Olympia I. The Court has also appointed an administrator to look after the companies for six months in order to try and find a compromise agreement with creditors. During the administration, which usually runs for six months with a possibility of a three-month extension, the company can continue to operate. The administrator, however, must reach an agreement with creditors within that span and secure a sufficient amount of working capital. The Royal Olympia subsidiaries now in administration have not yet secured this amount. CONTACT: ROYAL OLYMPIA CRUISES James R. Lawrence Phone: +1-203-550-2621 ============= I R E L A N D ============= VALENTIA TELECOMMUNICATIONS: Ratings Lowered; Outlook Stable ------------------------------------------------------------ Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Valentia Telecommunications upc the 100% owner of former incumbent Irish fixed-line telecommunications operator eircom Ltd. to 'BB+' from 'BBB-'. The rating action follows the announcement of a flotation of eircom Group Ltd., the 100% owner of Valentia, and the earlier acceptance by bondholders of Valentia and related entity eircom Funding upc, of a request to allow the Valentia group to pay higher dividends according to an amendment to its bond documentation. In addition, Standard & Poor's removed its ratings on Valentia and related entities from CreditWatch, where they were placed on January 28, 2004. The outlook is stable. At the same time, the ratings on the senior unsecured and senior subordinated notes issued by Valentia and eircom Funding were lowered by two notches to 'BB-' from 'BB+'. The further downward notching of the notes takes into account the structural subordination of these notes to priority obligations at the operating level and refinancing of the current outstanding secured bank loan with a new secured loan. Valentia has obtained from its bondholders consent to pay dividends up to an amount of EBITDA less consolidated interest and EUR350 million on an annual basis. Although more modest dividend payments are possible, Standard & Poor's nevertheless believes that credit protection afforded to bondholders will be weakened over the next nine years. At December 31, 2003, Valentia's lease-adjusted net debt was EUR2.2 billion ($2.7 billion). "The rating actions primarily reflect the change in Valentia's financial policy," said Standard & Poor's credit analyst Michael O'Brien. "Given the group's high leverage and moderate free cash flow expectations over the next few years, and despite some equity proceeds from current owners, the payment of significant dividends is deemed aggressive." Valentia is expected to improve its debt-protection measures over the coming years, however, thus conforming with both its debt-repayment schedules and senior-debt covenants, while paying moderate dividends. The group is also expected to improve its free operating cash flow and continue where possible to improve capital and operating efficiency, mitigating the margin pressure driven by regulatory actions and competition from alternative service providers and fixed-to-mobile substitution. CONTACT: STANDARD AND POORS RATING Analyst E-mail Addresses: michael_obrien@standardandpoors.com leandro_detorreszabala@standardandpoors.com CorporateFinanceEurope@standardandpoors.com ========= I T A L Y ========= PARMALAT FINANZIARIA: Administrator Forms Creditors Committee ------------------------------------------------------------- The Minister of Productive Activities, Antonio Marzano, and Dr. Enrico Bondi, Parmalat CEO and Extraordinary Commissioner, will appoint a nine-member unofficial committee of creditors. Bloomberg News says the committee will consist of eight banks and one bondholder representative. Parmalat and the Industry Ministry will invite four foreign banks and four Italian banks to join the committee. Local papers say this committee will likely include Bank of America, Citigroup, Capitalia and Banca Intesa. Bank of America Corp. and Citigroup, Inc. are two of Parmalat's foreign lenders. In December 2003, Bank of America wrote off $200,000,000 in loans and derivative losses related to Parmalat's collapse. In the fourth quarter of 2004, Citigroup, Inc., also wrote off $242,000,000 in Parmalat loans and securities. Parmalat owes Citigroup more than $300,000,000 in loans. Of the Italian banks, Parmalat owes EUR400,000,000 in debt to Capitalia, and EUR360,000,000 to Banca Intesa S.p.A. Bondholders Disappointed On February 20, 2004, two institutional investors commenced a lawsuit against the Italian government to secure better representation in the Parmalat restructuring, the Financial Times said. Societe Moderne des Terrassements Parisiens and Solotrat filed the lawsuit before an administrative court in Rome, Italy. Societe and Solotrat are privately held construction companies, which bought EUR1,900,000 in Parmalat bonds. The lawsuit demonstrates the growing dissatisfaction among Parmalat bondholders in the case. The Bondholders are disappointed with the limited representation. Parmalat bondholders are owed EUR8 billion or US$10.2 billion in Parmalat bonds -- twice the amount owed to banks. According to reports, the Bondholders may recover 25% to 30% of their investments. Parmalat assets will be distributed to creditors in the form of shares in Parmalat Finanziaria. Limited Access to Documents Mr. Marzano did not indicate whether Parmalat creditors would have access to internal documents and have a role in shaping any restructuring plan or whether the creditors would only advise the management. But in the opinion of Evan Flaschen, Esq. of Bingham McCutchen LLP, "The committee should have a say because creditors own this company." Bingham McCutchen, a U.S. law firm, and Houlihan Lokey, a U.S. financial advisory firm, represent international bondholders who own $3.5 billion in Parmalat debt. "Whether the Italian government will make it run that way or whether it will just be window dressing remains to be seen," Mr. Flaschen says. (Parmalat Bankruptcy News, Issue No. 6; Bankruptcy Creditors' Service, Inc., 215/945-7000) PARMALAT FINANZIARIA: Authorities Train Eye on Bank of America -------------------------------------------------------------- Italian authorities advised Bank of America on Tuesday that the activities of the group and certain former or current employees in Milan are being investigated in connection with Parmalat Finanziaria S.p.A. Bank of America, through certain of its subsidiaries, has provided financial services to Parmalat and its related entities. Previously, on January 8, 2004, Italian authorities identified Luca Sala, a former employee, as a subject of the investigation. Italian authorities advised the company that three additional employees in the Milan office are being investigated, two of whom have already submitted letters of resignation. "Bank of America has provided information to, and continues to cooperate fully with, various governmental entities, including the U.S. SEC and Italian authorities. The company cannot determine at this time the eventual outcome, timing or impact of the investigation or matters related to Parmalat," the bank said in a statement. About Bank of America Bank of America is one of the world's largest financial institutions, serving individual consumers, small businesses and large corporations and institutions with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience for consumers in the United States, serving 1 in 3 American households with 4,200 banking centers, more than 13,100 ATMs and award-winning Internet site with more than seven million active online users. Bank of America is rated the number one Small Business Administration Lender in the United States by the SBA. The company serves clients in 150 countries and has relationships with 94 percent of the U.S. Fortune 500 companies and 76% of the Global Fortune 500. The seventh most profitable company in the United States, Bank of America had US$736 billion in assets, US$414 billion in deposits and a market capitalization of US$115.9 billion at December 31, 2003. Bank of America Corporation stock (ticker: BAC) is listed on the New York Stock Exchange. For more information, please go to http://www.bankofamerica.com UMS UNITED: Sells Italian Business for EUR9 Million --------------------------------------------------- UMS United Medical Systems International AG sells its Italian subsidiaries to the Alliance Medical Group. The decision for the sale has been made in light of a consequent focus on profitable and growing business activities. The free resources will be reallocated to grow other businesses in more dynamic markets, especially in the U.S.A. The volume of this transaction is about EUR9 million. Thereof approximately EUR6 million will be used to repay the debts of the sold entities. The amount of cash generated is approximately EUR3 million. The transaction has a positive impact on the FY2004 expected earnings per share (EPS) excluding Goodwill of 5 Cent. An impairment of goodwill for the sold entities and other transaction related on-time costs will decrease the FY2003 result by approximately EUR2.7 million. Based on unaudited preliminary figures, the loss of FY2003 after these on-time offs will be around EUR2.6 million. Including the Italian activities and without these one-time offs the UMS group has reached break- even level, compared to prior years loss of EUR16.7 million. Revenues 2003 are around EUR62.7 million (prior year: EUR56 million). Based on prior years U.S. Dollar exchange rate, revenues would have been EUR70 million. This is an organic growth of 25%. The preliminary 2003 EPS excluding goodwill is EUR0.29 (prior year: -EUR2.34). The detailed audited figures for 2003 will be published on March 10, 2004. Based on an exchange rate EUR/USD 1.30, without the Italian business UMS is expecting revenues of EUR60 million in 2004, leading to a growth rate of 18% after elimination of exchange rate effects. The EPS target 2004 excluding goodwill is EUR0.50. About UMS International AG UMS International AG offers innovative healthcare concepts in the growth segment of high-tech medicine. UMS pioneered the mobile use of med-tech systems around the world, and markets full-service solutions for hospitals and physicians. The Company's forward-looking concepts include complete service for the customer, from system management through provision of application specialists to operation of diagnostic and therapy centers. The UMS Group employs a staff of around 300, and serves more than 1,000 customers worldwide. CONTACT: UMS UNITED Bernd Humke Phone: (040) 500 177-0 Fax: (040) 500 177-77 E-mail: Bernd.Humke@umsag.com ===================== N E T H E R L A N D S ===================== VILENZO INTERNATIONAL: Market Regulator Suspends Trading -------------------------------------------------------- The Market Supervision of Amsterdam suspended Vilenzo International's securities with an ISIN code of NL0000442309. The Dutch clothing manufacturer recently announced worse-than- expected results for 2003. It posted a net loss of EUR16.2 million for the year compared to net profit of EUR5 million in 2002, mainly because of difficult market conditions, high stock levels and costs related to the restructuring initiated in November last year, the company said. Chief Executive Ruud van Riel resigned afterwards. Wim Slot has been appointed interim head of finances. =========== N O R W A Y =========== AKER KVAERNER: Splitting into Three Separate Companies ------------------------------------------------------ Aker Kvaerner confirmed this week that the company will be broken up into three listed companies in order to protect healthy parts of the company, according to Nettavisen. Under the plan, the oil and gas and engineering and construction operations will be joined into a new company, which will keep the name Aker Kvaerner. Helge Lund will be the chief executive of Aker Kvaerner. The second company will be called Aker Yards and consist of the two merged companies, Aker Yards and Masa Yards. Karl E. Kjelstad will be its chief executive. The other will be named Kvaerner, which will serve as the holding company. It will own a little more than 50% of the two other companies, and will have Kjell Inge Rokke as chief executive. Troubled Kvaerner Philadelphia will be included in the company. Chief Executive Lund explained that the move was to prevent troubles of some operations from affecting other parts of the company. He said: "[With the move] Aker Kvaerner and Aker Yards will be protected from the non-operational problems which have haunted Kvaerner the last eight to ten years." He said Aker Kvaerner will be listed sometime around Easter, while Aker Yards will be listed during the second quarter. Enskilda Securities and Carnegie are allegedly advising the company in the process. They will also assist in the stock exchange introduction, together with DnB Nor Markets, Nordea Securities and Pareto Securities will also assist with the introduction. CONTACT: ENSKILDA SECURITIES ASA Filipstad Brygge 1 P.O. Box 1363 Vika N-0113 Oslo Norway Home Page: http://www.enskilda.no Phone: +47 21 00 85 00 Fax: +47 21 00 89 00 E-mail: info@enskilda.no =========== R U S S I A =========== GAZOVIK: Declared Insolvent --------------------------- The Arbitration Court of Tymen region declared NP Holding Company GAZOVIK insolvent. The case is docketed as A70-5184/3- 03. Erlan Ospanov, a member of TP Siberian self-regulated organization of arbitral managers, has been appointed insolvency manager. Creditors have until April 28, 2004 to submit their proofs of claim to the insolvency manager at: 300600, Russia, Tymen, Melnikayte str. 127A, Yuridicheskaya consultaziya. CONTACT: Erlan Ospanov, Insolvency Manager Russia, Tymen, Melnikayte str.127A, Yuridicheskaya consultaziya GUSCHINSKY MUKOMOL: Under Bankruptcy Supervision Procedure ---------------------------------------------------------- The Arbitration Court of Ulyanovsk region commenced bankruptcy supervision procedure on flour-milling integrated works, private limited company, Guschinsky mukomol. The case is docketed as A72-10167/03-1012-B. L. Sabirova (Kroncheva), a member of TP Self-regulated organization of arbitral managers PSOAU, has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to the temporary insolvency manager at: 432011, Russia, Ulyanovsk-11, Post User's Box 9876. A hearing will take place at 10:00 a.m. on May 6, 2004 at the Arbitration Court of Ulyanovsk region. CONTACT: GUSCHINSKY MUKOMOL Russia, Ulyanovsk region Maynsky Area, Popovka L. Sabirova (Kroncheva), Temporary Insolvency Manager 432011, Russia, Ulyanovsk region Ulyanovsk-11, Post User's Box 9876 INCORPORATED CAPITAL: Deadline for Proofs of Claim April 28 ----------------------------------------------------------- The Arbitration Court of Moscow declared Closed JSC Commercial finance company The Incorporated Capital (TIN7703075852) insolvent. Bankruptcy proceedings were subsequently introduced on the company. The case is docketed as A40-15341/03-71-9B. Alla Podzhio, a member of TP Interregional self-regulated organization of arbitral managers, has been appointed insolvency manager. Creditors have until April 28, 2004 to submit their proofs of claim to the insolvency manager at: 109004, Russia, Moscow, B. Communisticheskaya str.5, build.1, off.408. CONTACT: THE INCORPORATED CAPITAL 119034, Russia, Moscow Gagarinsky per.5, build.1. Alla Podzhio, Insolvency Manager 109004, Russia, Moscow B. Communisticheskaya str.5, build.1, off.408 TP Moscow, Nizhegorodskaya str.32 KASHIRSKY INTEGRATED: Court Appoints Insolvency Manager ------------------------------------------------------- The Arbitration Court of Moscow region commenced bankruptcy supervision procedure on Closed JSC Kashirsky Integrated Poultry farm. The case is docketed as A41-K2-405/04. Anton Bulatov, a member of TP Self-regulated organization of arbitral managers, has been appointed temporary insolvency manager. Creditors have until March 20, 2004 to submit their proofs of claim to the temporary insolvency manager at:109451, Russia, Moscow, Post User's Box 22. A hearing will take place on April 27, 2004 at the Arbitration Court of Moscow region. CONTACT: KASHIRSKY INTEGRATED POULTRY FARM 129366, Russia, Moscow region, Kashirsky Area, Zendikovo Anton Bulatov, Temporary Insolvency Manager 109451, Russia, Moscow Post User's Box 22 TP 109029, Moscow Nizhegorodskaya str.32, build.15 KRASNOYARSK: Auction of Properties March 29 ------------------------------------------- The bidding organizer and insolvency manager of OJSC Krasnoyarsk, manufacturer of rubber technical goods, will re- launch a public auction of the company's properties on March 29, 2004. The auction will be held at 660004, Krasnoyarsk, Tomskaya str.4. The plant's properties are being sold for RUB62,273,307. The portfolio includes real estate priced at RUB51,086,477; equipment worth RUB8,103,800; tools and fitting-out worth RUB2,677,694; and objects of uncompleted construction worth RUB40,655. The prices will be increased by increments of 25%. Preliminary examination of auction conditions, document list for participants, description of lots and reception of biddings are being held at 660004, Krasnoyarsk, Tomskaya str.4, Phone: 7-8- 3912-62-43-07. Bidding application documents will be accepted until 12:00 noon on March 26, 2004. In order to participate in the auction the bidder should transfer deposit (10%) to the settlement account 40702810500330000249 in CJSC AICB Eniseysky Obyedinenny Bank, BIC 040407853, TIN2462000400, correspondent account 30101810700000000853, Recipient: insolvency manager of OJSC Krasnoyarsk plant of rubber technical goods. Deadline is March 26, 2004. The bidding organizer said should there be no sale on the scheduled date, creditors will hold another meeting to facilitate the auction. CONTACT: KRASNOYARSK PLANT OF RUBBER TECHNICAL GOODS 660004, Russia, Krasnoyarsky region, Krasnoyarsk, Tomskaya str.4 Insolvency manager 660004, Russia, Krasnoyarsky region, Krasnoyarsk, Tomskaya str.4, Phone: 7-8-3912-62-43-07 NENEZKAYA: Auction of Nenezko-Belarus Shareholding Set March 23 --------------------------------------------------------------- The bidding organizer of Nenezkaya oil company, Oleg Smirnov, is offering the company's 50% stake in the authorized fund of Nenezko-Belarus oil company. A public bidding for the stake will take place on March 23, 2004. The nominal value of the share is RUB2.03 million. It is being offered at a starting price of RUB2,707,250. Preliminary examination of auction conditions, document list for participants, description of lots and reception of biddings are being done until March 17, 2004 Monday to Friday 10:00-11:00 a.m. local time at Saint-Petersburg, Voronezhskaya str. 92. Bidding documents are accepted until 11:00 a.m. on March 17, 2004. In order to participate in the auction, the bidder should transfer RUB541,450 to the settlement account 40702810603000000433 in FAKB "Rossiysky Capital", Arkhangelsky, BIC 041117759, correspondent account 30101810900000000759, till March 19, 2004. The place of auction is Saint-Petersburg, Naberezhnaya reki Maloy Nevky 14. CONTACT: NENEZKAYA 191123, Saint-Petersburg, Radischeva str.39, off.312 External Insolvency manager Saint-Petersburg, Voronezhskaya str.92, NOVOKUZNEZK INTEGRATED: Under Bankruptcy Supervision Procedure -------------------------------------------------------------- The Arbitration Court of Kemerovo region commenced bankruptcy supervision procedure on Closed JSC Novokuznezk Integrated Poultry farm. The case is docketed as A27-13177/203-4. Dmitry Kucherenko has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to the temporary insolvency manager at: 654079, Russia, Kemerovo region, Novokuznezk, Post User's Box 170. A hearing will take place at 11:00 a.m. on March 31, 2004 at the Arbitration Court of Kemerovo region. CONTACT: NOVOKUZNEZK INTEGRATED POULTRY FARM 654944, Russia, Kemerovo region, Novokuznezk Area, Zagorsky Dmitry Kucherenko, Temporary Insolvency Manager 654079, Russia, Kemerovo region Novokuznezk, Post User's Box 170 OSKOLNEFTEPRODUCT: Under Bankruptcy Supervision Procedure --------------------------------------------------------- The Arbitration Court of Belgorod region commenced bankruptcy supervision procedure on oil company, Private Limited Company OskolNefteProduct. The case is docketed as A08-190/04-2"B". Yuri Razinkov has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to the temporary insolvency manager at: 309518, Russia, Belgorod region, Stary Oskol, mkr. Priborostroitel 54. Phone: 7-8-0725- 337019. CONTACT: OSKOLNEFTEPRODUCT 309518, Russia, Belgorod region, Stary Oskol, mkr. Priborostroitel 54, Yuri Razinkov, Temporary Insolvency Manager 355012, Russia, Belgorod region Stary Oskol, mkr. Priborostroitel 54 Phone: 7-8-0725-337019 TULUNSKY: Court Opens Bankruptcy Proceedings -------------------------------------------- The Arbitration Court of Irkutsk region declared OJSC Butter- making plant Tulunsky(TIN3839000060) insolvent. Consequently, bankruptcy proceedings have been commenced. The case is docketed as A19-21603/03-37. Alexandr Novikov, a member of TP Self-regulated organization of arbitral managers Baykalskaya, has been appointed insolvency manager. Creditors have until March 28, 2004 to submit their proofs of claim to the insolvency manager at: 665253, Russia, Irkutsk region, Tulun, Gidroliznaya str.2, Post User's Box 20. A hearing will take place at 10:00 a.m. on July 21, 2004 at the Arbitration Court of Irkutsk region: Irkutsk, Gagarin bulv. 70. CONTACT: TULUNSKY 665225, Russia Irkutsk region, Tulunsky Area Ikey', Stepanova str.64 Alexandr Novikov, Insolvency Manager 665253, Russia, Irkutsk region Tulun, Gidroliznaya str.2 Post User's Box 20 ARBITRATION COURT OF IRKUTSK REGION Irkutsk, Gagarin bulv.70 liga (Irkutsk, Krasnokazachya str.119) TYMENTRANSSTROY: Under Bankruptcy Supervision Procedure ------------------------------------------------------- The Arbitration Court of Tymen region commenced bankruptcy supervision procedure on Tymen transport building company OJSC TymenTransStroy. The case is docketed as A70-5909/3-2003. Alexandr Pshenichnikov, a member of TP Ural self-regulated organization of arbitral managers, has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to the temporary insolvency manager at: 625048, Russia, Tymen, Kcharkovskaya str.57/2-68. A hearing will take place on April 6, 2004 at the Arbitration Court of Tymen region. CONTACT: TYMENTRANSSTROY 625000, Russia, Tymen region, Tymen, Gerzen str.72, Alexandr Pshenichnikov, Temporary Insolvency Manager 625048, Russia, Tymen region Tymen, Kcharkovskaya str.57/2-68 WOOD-WORKING: Court Names Alexandr Arendachuk Insolvency Manager ---------------------------------------------------------------- The Arbitration Court of Murmansk region commenced bankruptcy supervision procedure on Federal State Unitary Enterprise Wood- working integrated works of the Russian Ministry of Defense. The case is docketed as A42-9935/03-9. Alexandr Arendachuk, a member of TP Russian self-regulated organization of arbitral managers, has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to the temporary insolvency manager at: 183017, Russia, Murmansk, Pozdnyakova str. 4. A hearing will take place at 10:00 a.m. on June 2, 2004 at the Arbitration Court of Murmansk region. CONTACT: WOOD-WORKING INTEGRATED WORKS 183017, Russia, Murmansk, Pozdnyakova str.4 Alexandr Arendachuk, Temporary Insolvency Manager 183017, Russia, Murmansk Pozdnyakova str.4 ARBITRATION COURT OF MURMANSK REGION Russia, Murmansk Knipovicha str.20 TP 127018, Moscow Polkovaya str.17, build.3 =========== S W E D E N =========== LM ERICSSON: Better Financial Standing Merits Outlook Upgrade ------------------------------------------------------------- Fitch Ratings changed the Outlook on Telefonaktiebolaget LM Ericsson's Senior Unsecured rating to Stable from Negative. At the same time, the agency has affirmed the rating at 'BB-'. The Outlook change reflects Ericsson's solid improvement in its 2003 financial performance, the degree to which costs has been reduced, the company's sound liquidity and the early signs of stabilization in its trading environment. The rating reflects the extremely difficult revenue conditions the company has experienced over the past three years, which have resulted in significant losses and a wholesale restructuring of its cost base. Ericsson, nevertheless, is the leader in the supply of mobile network infrastructure with about 30% of the market (including a 40% share of GSM networks). Given that the market for mobile networks may be starting to stabilize, the agency believes Ericsson's cost cutting leaves it in a good position to benefit from any improvement in the trading environment. The company's good liquidity is characterized by cash balances of SEK73.2 billion (EUR7.96 billion) as at 4Q03. Ericsson has been through an extremely turbulent period in the last three years. Pro forma revenues have fallen to what is expected to be at or close to a cyclical low of SEK117 billion in 2003 from a high of SEK222 billion in 2000 -- a cumulative fall of some 47%. Over this period, the company has undertaken significant restructuring. In the fourth quarter the company restored gross margins to above 41% -- a level last seen in 1Q00 at the height of the telecoms boom. Run rate operating expenses have fallen to SEK37 billion as at 4Q03 from a high of SEK88 billion in 1Q01 and are planned to reach SEK33 billion by 3Q04. Headcount has been reduced to 51,600 by 4Q03 from 107,000 and is on target to reach a planned level of 47,000 some time in 2004. While Fitch believes that operating revenues may see some erosion in 2004, this is likely to be largely driven by currency movements given the company's significant exposure to the U.S. dollar. With some growth in underlying revenues (at constant currency) predicted for the year, and significant progress made in the company's cost base restructuring, a sustained return to profitability is increasingly expected. With current cash balances of SEK73.2 billion and a further US$1.6 billion in available bank facilities, liquidity is good. While Ericsson turned net cash positive in 3Q02 (when net cash stood at SEK5.2 billion) following its SEK30 billion rights issue, net cash has grown considerably since that time and stood at SEK27 billion (EUR2.9 billion) at 4Q03. Operating cash flow has been well managed with the company generating savings through working capital gains amounting to SEK27 billion in 2003. Furthermore, Ericsson returned to positive funds from operations (operating cash flow before working capital) in 4Q03 for the first time since the downturn began. Given that working capital benefits are a finite resource, it will be important for the company to sustain a positive cash flow at this level moving into 2004. Bond maturities of C.SEK7.5 billion over the next two years remain cash-covered with the next significant refinancing being approximately EUR1.6 billion of bonds due in 2005. Mobile spending plans are showing tentative signs of recovery, with investment focused on addressing capacity constraints in 2G networks and in the roll-out of 3G. While to date spending on 3G has been based largely on meeting minimum levels of investment needed to meet license obligations, 2004 is expected to see increasing momentum in commercial 3G launches. As the leading provider of mobile infrastructure and the market leader in both GSM and WCDMA networks, Ericsson clearly stands to benefit from any improvement in mobile spending. CONTACT: LM ERICSSON Stuart Reid, London, Phone: +44 (0) 20 7417 4323 Raymond Hill Phone: +44 (0) 20 7417 4314 Media Relations: Alex Clelland, London Phone: +44 20 7862 4084 =========================== U N I T E D K I N G D O M =========================== ABBEY NATIONAL: Cahoot Hikes Current, Savings Accounts Rates ------------------------------------------------------------ Following the Bank of England base rate increase on 5 February 2004, Cahoot will be increasing the interest rate on its savings account by 0.25% AER to 4.35% AER and on its current account by 0.15% AER to 3.60% AER. [1] It will also be maintaining the market-leading rate of 5.9% APR on its fixed-rate loan. Cahoot will be increasing the typical rate on its credit card by 1% APR to 9.3% APR. Despite this move, it is still one of the leading standard rate credit cards on the market. [2] Cahoot is also increasing typical rates on its flexible loan, by 0.3% APR to 7.4% APR, and its overdraft rate, by 1% APR to 9.3% APR, for customers who go over the free GBP250 limit. All these changes will be effective from 4 March 2004 with the exception of the savings account, which will be effective from March 15. Cahoot has always offered competitive rates and has sustained this position since its launch in 2000. It also guarantees that its current account in-credit interest rate will never be more than 0.5% AER below the Bank of England base rate. ---------- Footnotes: [1] The rate change will only affect the lower tier of the current account. The upper tier will be unaffected. [2] Based on U.K. standard rates for credit cards as at March 1, 2004. Source: moneyfacts.co.uk CONTACT: ABBEY NATIONAL Media contact Kirsty Sugrue Phone: 0207 756 4211 E-mail: kirsty.sugrue@abbey.com ADVANTAGE CARE: Appoints Tenon Recovery Liquidator -------------------------------------------------- At an Extraordinary General Meeting of the Advantage Care Limited Company on February 12, 2004 held at Tenon House, Ferryboat Lane, Sunderland SR5 3JN, the subjoined Extraordinary Resolution to wind up the Company was passed. Ian William Kings, of Tenon Recovery, Tenon House, Ferryboat Lane, Sunderland SR5 3JN, was appointed Liquidator for the Company. CONTACT: TENON RECOVERY Tenon House Ferryboat Lane Sunderland SR5 3JN Contact: Ian William Kings, Liquidator Phone: 0191 511 5000 Fax: 0191 511 5001 Web site: http://www.tenongroup.com AEON BIOTECH: Names Baker Tilly Liquidator ------------------------------------------ At an Extraordinary General Meeting of the AEON Biotech Limited Company on February 12, 2004 held at the Baker Tilly, The Clock House, 140 London Road, Guildford, Surrey GU1 1UW, the subjoined Extraordinary Resolutions to wind up the Company were passed. Geoffrey Lambert Carton-Kelly, of Baker Tilly, The Clock House, 140 London Road, Guildford, Surrey GU1 1UW, was appointed the Liquidator of the Company. CONTACT: BAKER TILLY The Clock House 140 London Road, Guilford Surrey GU1 1UW Contact: Geoffrey Lambert Carton-Kelly, Liquidator Phone: 01483 307000 Fax: 01483 569 281 Web site: http://www.bakertilly.co.uk AMP LIMITED: Analysts See Biggest Ever Second-half Loss ------------------------------------------------------- Write-downs in the value of AMP Ltd.'s spun-off U.K. businesses may plunge the life insurer into a record half-year loss, analysts said, according to Bloomberg News. Based on the median estimate of seven analysts surveyed by Bloomberg, the Australian company may record a AU$3.2 billion (US$2.4 billion) loss in the second half, the biggest in its 155-year history. The company reported losses of AU$1.2 billion for the second half last year. AMP spun off its U.K. units after a three-year slump in the FTSE 100 Index. It separated from its Australian operation Pearl Assurance, London Life, NPI and Henderson Global investors into London-based HHG plc. This follows the erosion of the company's capital and the fall of its stock value to more than 75%. AUSTIN REED: Completes Sale of Sackville Street Property -------------------------------------------------------- On February 25, 2004 the Board of Austin Reed Group PLC announced it had exchanged contracts for the sale of the Company's freehold property in Sackville Street, London. The Board announces that the sale is now complete. ***** On February 25, 2004, the Company exchanged contracts with GPE (Sackville Street) Limited, a wholly owned subsidiary of Great Portland Estates plc, for the sale of the Property. The buyer paid GBP10.7 million, with GBP1.1 million payable on exchange and the balance payable on completion. CONTACTS: AUSTIN REED GROUP PLC David Lowbridge, Chief Executive Geoff Gibson, Financial Director Phone: 0207 534 7703 BRITISH AIRWAYS: Wants Incentive Scheme Fine Overturned ------------------------------------------------------- British Airways appealed anew the ruling of the European Union's top court on its controversial incentive scheme for travel agents, according to Reuters. The Court of First Instance last year upheld the EUR6.8 million (GBP4.5 million) fine that the European Commission had imposed on British Airway's reward scheme. The court said the system of giving travel agents higher commission for selling British Airways tickets discourages them from recommending flights suitable for travelers. Thus, it makes it hard for competitors to run profitable routes to Britain. No details were available of the new appeal, but in its first appeal, British Airways had complained, that the Commission's decision was unfair because other large airlines were also adopting similar commission schemes. CAITHNESS HOLDINGS: Names Deloitte & Touche Receiver ---------------------------------------------------- Name of Company: Caithness Holdings Limited Reg No 04212794 Previous Name of Company: Ingleby (1429) Limited Nature of Business: Holdings Company Trade Classification: Glassware Products Date of Appointment of Joint Administrative Receivers: February 19, 2004 Name of Person Appointing the Joint Administrative Receivers: Lloyds TSB plc. Joint Administrative Receivers: DELOITTE & TOUCHE LLP Four Brindley Place, Birmingham B1 2HZ Receivers: Andrew Peters John C Reid (Office Holder Nos 004468, 008311) Phone: +44 (0) 121 632 6000 Fax: +44 (0) 121 695 5678 Web site: http://www.deloitte.com ***** Caithness Glass called in receivers from Deloitte & Touche last month after its owners abandoned it amidst tough market conditions, according to The Scotsman. Royal Worcester & Spode, which acquired the company three years ago for GBP6 million, had given "substantial financial support" to Caithness Glass, but due to the deterioration of the market place it could no longer continue this support, a spokesman for Deloitte & Touche said. CARING TOGETHER: Hires Receivers from PricewaterhouseCoopers ------------------------------------------------------------ Name of Company: Caring Together Limited Nature of Business: Fundraiser Specializing in Payroll Giving Promotions Caring Together is wholly owned by the Cancer Care Foundation (registered charity No. 1051714), providing national fundraising services to over 150 charities throughout the United Kingdom, and others overseas. Trade Classification: 38 Date of Appointment: February 16, 2004 Joint Administrative Receiver: PRICEWATERHOUSECOOPERS LLP Plumtree Court, London EC4A 4HT Receivers: Ian Christopher Oakley Smith Adrian Richard Stanway (IP Nos 1282, 298) Phone: (44) (20) 7583 5000 Fax: (44) (20) 7822 4652 Web site: http://www.pwcglobal.com Company Address: Caring Together Ltd. Middlesex House 29-45 High Street Edgware Middlesex, HA8 7UU Phone: 020 8381 2430 Fax: 020 8381 1238 Web site: http://www.caringtogether.co.uk CCF TRADING: Brings in Administrator from PricewaterhouseCoopers ---------------------------------------------------------------- Name of Company: CCF Trading Limited Nature of Business: Holding Company Trade Classification: 38 Date of Appointment: February 16, 2004 Joint Administrative Receiver: PRICEWATERHOUSECOOPERS LLP Plumtree Court, London EC4A 4HT Receivers: Ian Christopher Oakley Smith Adrian Richard Stanway (IP Nos 1282, 298) Phone: (44) (20) 7583 5000 Fax: (44) (20) 7822 4652 Web site: http://www.pwcglobal.com ***** In November 2003, the Cancer Care Foundation raised concerns about serious mismanagement of the charity and risk to its assets. The accounts revealed that the company generated nearly GBP9 million in 2001, of which the charity only received an extremely small proportion. COSMIC GLOBAL: GMAC Commercial Hires Administrative Receivers ------------------------------------------------------------- Name of Company: Cosmic Global Limited Reg. No: 4678453 Date of Appointment of Joint Administrative Receivers: February 19, 2004 Name of Person Appointing the Joint Administrative Receivers: GMAC Commercial Finance plc. Joint Administrative Receivers: TENON RECOVERY Sherlock House, 73 Baker Street, London W1U 6RD Receivers: Simon Thomas Steve Parker (Office Holder Nos 8920, 8989) EGG PLC: Prudential Likely to Shelve Stake Sale ----------------------------------------------- Investors and analysts expect Britain's second largest insurer, Prudential, to keep its stake in loss-making Internet bank Egg, Reuters said. Prudential had sounded intent on selling its 79% stake in Egg in January, causing the stakes of both companies to go up. "The fall in the price of Egg from a peak of around 190 pence reflects the market's belief that a deal is less likely to be done," Ian McVeigh, fund manager at Jupiter Asset Management, which holds Prudential shares said, according to the report. Last week, Chief Executive Jonathan Bloomer said a sale was not expected any time soon. Last month, sources said at least two bidders had pulled out due to price concerns. A sale of Egg would have given Prudential almost GBP1.3 billion in cash, which it badly needs to expand and alleviate concerns about its capital position, according to analysts. Prudential denies needing the sale to improve its financial standing. EURODIS ELECTRON: Completes EUR51.8 Million Share Issuance ---------------------------------------------------------- Following the passing on March 1, 2004 of the resolutions put to shareholders to effect the Firm Placing and Placing and Open Offer, the Company announces that the Firm Placing and Placing and Open Offer, to raise net proceeds of approximately EUR51.8 million (GBP35.3 million), have been completed. The new ordinary shares were admitted to listing on the Official List of the U.K. Listing Authority and to trading on the London Stock Exchange's main market for listed securities on Tuesday. Dresdner Kleinwort Wasserstein Limited, which is authorized and regulated in the U.K. by the Financial Services Authority, is acting exclusively for Eurodis Electron and for no one else in connection with the Firm Placing and Placing and Open Offer and will not be responsible to anyone other than Eurodis Electron for providing the protections afforded to customers of Dresdner Kleinwort Wasserstein Limited, or for affording advice in relation to the Firm Placing and Placing and Open Offer or any matters referred to in this announcement. CONTACT: EURODIS ELECTRON Douglas Rogers, Chairman Steve Swayne, Chief Executive Phone: 01737 242 464 DRESDNER KLEINWORT WASSERSTEIN Charlie Batten Christopher Baird Phone: 020 7623 8000 HOLLINGER INC.: Barclay Twins Pull out Buyout Offer --------------------------------------------------- David and Frederick Barclay withdrew their offer to buy the majority stake of Conrad Black in Hollinger Inc., the controlling shareholder of Hollinger International. The withdrawal follows the ruling of a U.S. court last week stopping Mr. Black from selling the stake. The decision is a victory for Hollinger International, owner of Britain's biggest- selling broadsheet, The Daily Telegraph, who is also selling the asset separately. The twin brother may therefore still hope to acquire the property by bidding directly to Hollinger International. According to the report, in withdrawing their bid for Mr. Black's holding company, the Barclays also ended their agreement to fund a buy-back of Hollinger Inc. debt. The company said on Tuesday it is no longer selling the debt. Hollinger Inc. missed a US$7.4 million debt payment on Monday. The crisis follows the discovery of unauthorized payments to Mr. Black. IMPERIAL CHEMICAL: Quest's Food Ingredients Biz Nets US$365 Mln --------------------------------------------------------------- Imperial Chemical Industries PLC has agreed to sell the Food Ingredients business of Quest International to Kerry Group plc for US$440 million (GBP238 million) in cash. Net proceeds after tax and other costs will be approximately US$365 million (GBP197 million), and will be used to reduce indebtedness. Completion is expected in the second quarter of 2004, subject to regulatory approvals and employee consultation. The transaction follows a strategic decision to focus efforts in Quest on restoring profitability in its core Flavour and Fragrance businesses. Following completion, further restructuring will take place in Quest in order to eliminate overheads. A detail of this restructuring, which is expected to have a cash cost of the order of US$20 million (GBP11 million), will be announced in due course. The Quest Food Ingredients product portfolio includes emulsifiers, proteins, hydrocolloids, yeast, enzymes and cultures, sold into a variety of end use markets. The business is headquartered in Naarden, the Netherlands, and has nine production sites around the world. It employs some 900 people. For the year ended December 31, 2003 the Quest Food Ingredients business had sales of US$255 million (GBP138 million), operating profit of US$30 million (GBP16 million) and at December 31, 2003 had net operating assets of US$150 million (GBP81 million). The transaction is expected to give rise to a loss after tax of about GBP50 million which will be accounted for as an exceptional item. The loss includes attribution of goodwill previously written off of GBP160 million. IMPERIAL CHEMICAL: S&P Retains BBB/Stable/A-2 Ratings ----------------------------------------------------- Standard & Poor's Ratings Services said on Tuesday its ratings and outlook on U.K.-based Imperial Chemical Industries PLC (ICI; BBB/Stable/A-2) are unaffected by the group's agreement to sell the Food Ingredients business of its Quest division to Ireland- based Kerry Group PLC for $440 million (GBP238 million) in cash. The transaction is expected to close in the second quarter of 2004. Net proceeds after tax and costs are expected to be about GBP200 million and will support ICI in reducing net indebtedness and improving coverage ratios by the end of this year. At December 31, 2003, ICI had net debt of GBP1.3 billion and a total pretax pension scheme deficit of GBP990 million. Following the divestiture, the group's Quest division will only consist of its core Flavour and Fragrances businesses, which generated a trading profit of GBP29 million on sales of GBP553 million in fiscal 2003. Both businesses are currently being restructured following their recently disappointing financial performance. With total sales of about GBP5.7 billion (excluding this disposal), ICI is a worldwide leading manufacturer of specialty chemicals and decorative paints. CONTACT: STANDARD AND POORS RATING SERVICES Analyst E-mail Addresses ralf_kortuem@standardandpoors.com olivier_beroud@standardandpoors.com CorporateFinanceEurope@standardandpoors.com INVENSYS PLC: May Announce Disposal of Powerware this Month ----------------------------------------------------------- Chief Executive Rick Haythornthwaite said the company is close to selling its division that supplies anti-blackout technology to customers, Bloomberg News reports. The sale of Powerware is part of the company's effort to offload non-core business to stay afloat. Mr. Haythornthwaite is focusing on rail signals and factory, appliance and climate controls after a disastrous expansion. He declined to name potential buyer of the business. Mike Davies, head of investor relations, meanwhile, said an accord to sell the division may be reached this month. Lisa Randall, a Lehman Brothers analyst in London, estimates the business to fetch a "respectable" GBP200 million. Powerware had an operating profit of GBP28 million in the 12 months through March last year. Invensys as a whole had a loss of GBP149 million pounds in the six months through September. Its pension deficit stood at GBP816 million. INVENSYS PLC: Shareholders Approve Refinancing Plan --------------------------------------------------- The board of Invensys plc announces that the resolutions which were set out in the notice of the Extraordinary General Meeting included in the prospectus issued by Invensys in relation to the placing and open offer, dated February 5, 2004 were duly passed at the Extraordinary General Meeting held earlier with a greater than 99% vote in favor for each resolution. The new ordinary shares to be issued pursuant to the placing and open offer will be credited as fully paid and will rank pari passu with the new ordinary shares arising on the share capital subdivision (as described in the Prospectus). The placing and open offer remains conditional upon, inter alia, (i) all conditions to the issue of the senior notes (or the bridge facility to be entered into in the event that the Senior Notes are not issued) and the new credit facilities having been satisfied or waived, subject only to Admission (as defined below), and (ii) admission of the new ordinary shares issued pursuant to the placing and open offer to the Official List of the U.K. Listing Authority and to trading on London Stock Exchange plc's market for listed securities. Application has been made to the U.K. Listing Authority and to London Stock Exchange plc for Admission and it is expected that Admission will become effective and dealings will commence at 8:00 a.m. on March 5, 2004. Copies of the resolutions have been submitted to the U.K. Listing Authority and will shortly be available for inspection at the Document Viewing Facility of the Financial Services Authority, 25 The North Colonnade, London E14 5HS. Commenting on the outcome, Rick Haythornthwaite, Chief Executive of Invensys, said: "[Tuesday's] EGM signals the successful completion of the last major step toward the GBP2.7 billion refinancing plan announced last month. The support received from the equity and bond markets -- and most importantly, from customers-further convinces me that Invensys has a strong future. "For the first time since its creation, Invensys will have a solid financial base and the opportunity to manage our businesses from a position of strength. Also for the first time in my tenure, our businesses now have the opportunity of benefiting from improving markets. "The refinancing will enable us to accelerate our plans for operational improvement, to invest for revenue generation and to capitalize on the opportunities presented by recovering markets." CONTACT: INVENSYS PLC Victoria Scarth Mike Davies Phone: +44 (0) 20 7821 2121 CAZENOVE Nick Wiles Edmund Byers Graham Bird Phone: +44 (0) 20 7588 2828 DEUTSCHE BANK Carl Tack David Bugge Charles Foreman Phone: +44 (0) 20 7545 8000 MORGAN STANLEY Simon Robey Philip Apostolides Simon Smith Phone: +44 (0) 20 7425 5000 KARRIMOR INTERNATIONAL: Hires Begbies Traynor as Receiver --------------------------------------------------------- Name of Company: Karrimor International Limited Reg No 00506817 Nature of Business: Wholesale of Clothing and Footwear Trade Classification: 5142 Date of Appointment of Joint Administrative Receivers: February 20, 2004 Other Trading Names used within 12 months preceding Appointment: Adventure Shops Name of Person Appointing the Joint Administrative Receivers: Sportsworld International Limited Joint Administrative Receivers: BEGBIES TRAYNOR Elliot House, 151 Deansgate, Manchester M3 3BP Receivers: Paul Stanley Andrew Dick (Office Holder Nos 008123, 008688) PAUL HODGSON: Creditors Assembly Set March 12 --------------------------------------------- There will be a Creditors Meeting of the Paul Hodgson Transport Limited Company on March 12, 2004 at 10:30 a.m. It will be held at the PricewaterhouseCoopers LLP, 89 Sandyford Road, Newcastle upon Tyne NE99 1PL. Members who wishes to be represented must submit their complete proxy forms and sent it to PricewaterhouseCoopers LLP, 9 Bond Court, Leeds LS1 2SN not later than 12:00 noon on or before March 11, 2004. CONTACT: PRICEWATERHOUSECOOPERS LLP 89 Sandyford Road, Newcastle upon Tyne NE99 1PL Phone: (44) (191) 232 8493 Fax: (44) (191) 261 9490, 230 3091(TLS) Web site: http://www.pwcglobal.com PRICEWATERHOUSECOOPERS LLP 9 Bond Court Leeds LS1 2SN Phone: (44) (113) 289 4000 Fax: (44) (113) 289 4460 Web site: http://www.pwcglobal.com SALE GROUP: In Administrative Receivership ------------------------------------------ Name of Company: Sale Group Limited Nature of Business: Mechanical and Electrical Engineering Trade Classification: 27 Date of Appointment: February 16, 2004 Joint Administrative Receiver: Nicholas Hugh O'Reilly Jonathan Mark Birch (IP Nos 008309, 005328) PO Box 2653, 66 Wigmore Street, London W1A 3RT WELCOME BREAK: Insolvency Threat Unfounded, Says S&P ---------------------------------------------------- Standard & Poor's Ratings Services understands that Investcorp S.A., the equity holder of Welcome Break Group Holdings Ltd., has threatened to file Welcome Break Finance PLC into insolvency proceedings if noteholders do not agree to accept less than full value on the early redemption of its notes. Welcome Break Group is the U.K. based motorway service area operator that originated the Welcome Break Finance securitization. Welcome Break Finance is an SPE that issued GBP376 million secured notes rated by Standard & Poor's. The class A notes, currently rated 'BB', and the class B notes, currently rated 'B', remain on negative outlook where they were placed on August 7, 2003 at the time of a previous offer from Welcome Break Group to purchase rated notes at below par (see ratings list below). When rating the notes issued by Welcome Break Finance, Standard & Poor's applied its bankruptcy-remote criteria to the issuer and has every confidence in the robustness of these criteria. The bankruptcy-remote criteria are designed to enable Standard & Poor's to opine that the risk of involuntary insolvency proceedings as a result of a third-party filing can be considered remote to the rating. One aspect of the bankruptcy-remote criteria is the inclusion of limited recourse provisions limiting the obligations of the issuer (including its debt obligations) such that the issuer's assets would exceed its liabilities. In circumstances such as these, Standard & Poor's expects that any application for an administration order that might be filed against the issuer would be objected to by the appropriate parties. This objection would be premised on the grounds that the issuer is not insolvent. The reason is that the limited recourse provisions of the debt operate to extinguish the claims and limit enforcement of the debt to the available assets of the issuer. In addition, an administration order would be a bad faith filing and a breach of the covenants not to petition for insolvency, included as part of the bankruptcy-remote criteria. Standard & Poor's would expect a court appropriately briefed on these issues in a properly presented and argued case to uphold the limited recourse (including the extinguishments of claims) provisions in the transaction documents, so as to concur that the issuer is not insolvent. As such, Standard & Poor's expects that any petition to file the issuer into insolvency proceedings would be dismissed. Standard & Poor's expectation that appropriate parties would enter an objection to any application for an administration order is further strengthened by the presumption that the directors of the issuer, the noteholders, and their trustee will act so as to preserve the assets of the issuer and the trust, including the right to draw under the liquidity facility, supporting the rated notes. Should an administration order be made against the issuer, the order would act as a draw stop under the liquidity facility thereby removing a significant asset available to the issuer and the noteholders. Since an administration order would have the effect of terminating the liquidity facility, Standard & Poor's would reasonably expect action to be taken to prevent such an order. Lastly, the right of the trustee -- as holder of a floating charge over substantially all of the issuer's assets -- to appoint an administrative receiver, the effect of which would block an administration order filed against the issuer, further enhances the bankruptcy remoteness of the issuer by acting as a disincentive for third parties to attempt to petition the issuer into insolvency. Related media releases, including the August 7, 2003 release entitled "Rating Lowered on U.K. ABS Welcome Break Finance PLC A Notes; Outlook Negative, Off Watch", are available on Ratings Direct, Standard & Poor's Web-based credit analysis system. Alternatively, call one of Standard & Poor's Ratings Desks: London Ratings Desk (44) 20-7176-7400; London Press Office Hotline (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5916; or Moscow (7) 095-783-4017. Members of the media may also contact the European Press Office via e-mail on: media_europe@standardandpoors.com. RATINGS LIST Welcome Break Finance PLC GBP376 Million Secured Notes Class Ratings A1 BB/Negative A2 BB/Negative A3 BB/Negative B B/Negative CONTACT: STANDARD AND POORS RATINGS SERVICES E-mail Addresses apea_koranteng@standardandpoors.com stuart_nelson@standardandpoors.com julie_lynchbridson@standardandpoors.com StructuredFinanceEurope@standardandpoors.com WHITACRES LIMITED: Administration Order Passed ---------------------------------------------- Previous Name of Company: IMCO (272000) Limited Reg No 04004238 Nature of Business: Manufacture Motor Vehicle Bodies etc. Trade Classification: 11 Date of Appointment of Joint Administrators: February 17, 2004 Administrator: PRICEWATERHOUSECOOPERS LLP 9 Bond Court, Leeds LS1 2SN Contact: Ian David Stoke, Joint Administrator Stephen Andrew Ellis, Joint Administrator (Office Holder Nos 0774, 1264) ********* 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 * * *