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/raid1/www/Hosts/bankrupt/TCREUR_Public/040318.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 18, 2004, Vol. 5, No. 55 Headlines D E N M A R K LEGO COMPANY: Books DKK1.4 Billion Full-year Pre-tax Loss F R A N C E BULL SA: Restructuring Aid Undergoes Thorough Anti-trust Review CONSODATA SA: Acxiom Takes over Major European Operations G E R M A N Y INFINEON TECHNOLOGIES: Buys Minority Stake in Dresden Subsidiary G R E E C E OLYMPIC AIRWAYS: E.U. Regulator Probes Alleged State Aid I R E L A N D BULA RESOURCES: Creditor Requests Liquidation BULA RESOURCES: Company Profile I T A L Y PARMALAT FINANZIARIA: Bondi Unveils 2004-2007 Turnaround Plan PARMALAT FINANZIARIA: Details EUR105.8 Million Financing N O R W A Y PETROLEUM GEO-SERVICES: Adopts 'Fresh Start' Accounting PETROLEUM GEO-SERVICES: Unaudited 2003 Net Loss US$814.1 Mln P O L A N D NETIA SA: To Pursue Planned Investment in Dialog WIRTUALNA POLSKA: Future Hangs in Balance R U S S I A DRUZHBA: Under Bankruptcy Supervision Procedure ELECTRO-MACHINE: Buryatiya Court Opens Bankruptcy Proceedings KUZINSKY MECHANICAL: Under Bankruptcy Supervision Procedure LODAUTO: Enters Bankruptcy Supervision Procedure MECHANICAL-REPAIR FACTORY: Under Bankruptcy Supervision POLIFLOCK: Kemerovo Court Appoints Insolvency Manager RYAZAN PUBLISHING: Under Bankruptcy Supervision Procedure TEPLO: Moscow Court Appoints Temporary Insolvency Manager TOKAMAK: Under Bankruptcy Supervision Procedure UST-UDINSKY: Irkutsk Court Appoints Insolvency Manager S W E D E N LM ERICSSON: Narrows Voting Rights Difference of A and B Shares SKANDIA INSURANCE: Bernt Magnusson Endorsed to Chair Board U K R A I N E * Local Banking System Remains Weak, Fitch Says U N I T E D K I N G D O M ARW 2003: Winding up Resolution Passed ASP INTERNATIONAL: National Westminster Bank Appoints Receiver BANCOURT PLC: Meeting of Creditors Set March 23 BANCOURT RISK: Creditors Meeting March 23 BERRY PALMER: Voluntary Winding up Resolution Passed COOLMOVERS LIMITED: Appoints Administrator from Sanderlings LLP CORNERSTONE EQUIPMENT: Final Creditors Meeting April 14 CORUS GROUP: Russian Aluminium Owner Gains Foothold DAWSON INTERNATIONAL: Sells Ballantyne Brand to Charme EASTERN INSURANCE: Final Shareholders Meeting Set April 16 ELECTRA BRANDS: Annual Meeting for Creditors April 15 EXCELL BIOTECH: Intercell Biomedical Acquires Assets FURNISS FOODS: Timely Sale of Business Saves 150 Jobs INEX PLC: Liquidator to Present Winding-up Update April 16 INTERNAL EVENTS: Creditors Meeting Set March 23 JOHN DAVID: Executive Chairman Roger Best Leaves Board JOHNSON FILTRATION: Final Members Meeting Set April 30 LOCKER GROUP: Hires Liquidator from Solomon Hare LONGCROFT CONSULTANCY: Final Session Set April 23 MILTON KEYNES: Winding up Resolutions Passed NETWORK RAIL: MTN Finance PLC First Notes Issue Rated 'AAA' NETWORK RAIL: Reports Best Third-quarter Performance in Years PRATT ELECTRICS: Appoints Administrator from Numerica ROSEBUD BUSINESS: General Meeting Set April 8 SAUNDERS AND GORDON: Creditors Meeting Next Week SEVENOAKS LIMITED: Final Meeting Set April 8 SSL INTERNATIONAL: Sells Wound Management Business to Medlock TIMBERTEC CONTRACTS: Creditors to Meet March 23 TRI-THERM LIMITED: Appoints Administrator YORK & FORD: Royal Bank of Scotland Names Receivers ********* ============= D E N M A R K ============= LEGO COMPANY: Books DKK1.4 Billion Full-year Pre-tax Loss --------------------------------------------------------- The Lego Company Leadership Team, headed by Kjeld Kirk Kristiansen, has just announced its new action plan for the employees of the company. The action plan is designed to secure the company's stable and sustainable growth. Most of the points in the plan will have immediate effect. Kjeld Kirk Kristiansen, Lego Company president and CEO, says: "The key aspects of our action plan are: adjustment of our activities and cost levels, improving our competitive edge, and focus on our core business (play materials). "The Lego Company is experiencing a serious earnings crisis. The company will therefore adjust its costs to a turnover level of DKK9.0 billion. Costs will be cut by DKK700 million but the full effects will not be felt until 2005. Future annual sales growth will be balanced at a level of 35%. Our objective is to achieve a bottom line figure of zero for 2004." Kjeld Kirk Kristiansen continues: "We will be cutting the workforce by up to 500 jobs in our core business by 2006, Approximately one-third of these cuts will be in Denmark. Around 170 layoffs will be implemented within the next few weeks, of these approximately 100 in Denmark." These are the main points in the action plan: (a) A radical reduction in development and production lead times. For example, the time taken from idea to shelf will be cut by 50%; (b) There will be a much stronger orientation towards retail customers, including focus on customer profitability; (c) There will be greater promotional market pressure in conjunction with the trade to drive competitiveness and gain additional in-store placement; (d) More reliable deliveries, including greater flexibility, more accurate sales forecasts, and larger buffer inventories of key products; (e) Focus on classic product lines such as LEGO Duplo/Baby/Quatro, Lego Make & Create, classic play themes, Lego Technic and Lego Mindstorms. The aim is to achieve a stronger portfolio balance between these classic product lines and history based products like for example Bionicle, Lego Star Wars and LEGO Harry Potter. This will regain the volume the company has lost over the past five years; (f) All non-core ventures will be concluded or taken over by license partners, including the development of electronic games; (g) A simplified global location and operations infrastructure based on global HQ in Billund with three regional hubs: North America (Enfield, USA); Europe (Baar, Switzerland); and Asia/Pacific (Tokyo); (h) An integrated European market setup based in Switzerland with centralized administration -- but bringing sales decisions closer to the retailer. The Legoland Parks will not be affected by the action plan. Later in the year the Lego Company will be evaluating the rollout strategy of the company's own brand retail stores. The Lego Company Annual Report for 2003 is now available at http://www.LEGO.com. As stated on January 8 the result was a pre-tax loss of earnings of DKK1.4 billion. CONTACT: EUROPE Charlotte Simonsen Director, Press Relations Phone: (+45) 79 50 65 79 USA Michael McNally Senior Brand Relations Manager, Americas Phone: + 1 860 763 7825 =========== F R A N C E =========== BULL SA: Restructuring Aid Undergoes Thorough Anti-trust Review --------------------------------------------------------------- The European Commission opened an in-depth investigation into aid notified by the French Government in support of the restructuring plan for Bull S.A. France undertakes not to pay this latest restructuring aid before December 31, 2004. The aid will be disbursed only after the rescue aid granted in 2001 and 2002 has been repaid. The aid notified by France in February 2004 will total EUR517 million. In exchange, the French Government is imposing a "better fortunes" clause in the form of payment to the State by Bull of 23.5% of its annual consolidated result before tax for a period of eight years starting from 2005. According to the French authorities, the clause represents a present value of between EUR50 million and EUR60 million. The French authorities intend to pay the new aid on December 31, 2004 at the earliest. The rescue aid granted in 2001 and 2002 will first be reimbursed. It had been approved on November 13, 2002 on condition that the company repays it by June 17, 2003 (see IP/02/1666). However, this deadline was not met. On November 26, 2003 the Commission brought an action before the Court of Justice against France for failure to recover the rescue aid by the agreed date (June 17, 2003). The aid notified by France in February 2004 is part of the financial restructuring of Bull based on a new restructuring plan drawn up in 2002. The plan involves a large reduction in overheads, a cut in staff numbers to 7,800 by the end of 2003 and a refocusing on the company's strengths, namely GCOS proprietary servers, IT services linked to Bull products and the development of a new range of open servers. Apart from the aid, the two main strands of the financial component of the plan are: (a) A 90% reduction in the EUR204 million debt owed to convertible bondholders, combined with an offer to convert their securities into equity or into equity coupled with stock options; (b) A capital increase to be launched on the market and guaranteed to the tune of EUR33 million by a group of investors. The Commission has carried out a preliminary assessment of the aid in the light of the Community guidelines on state aid for rescuing and restructuring firms in difficulty. It will have to look in more detail into the case in order to ascertain whether: (i) The plan guarantees a return to viability, in the light of a financial situation for the company which appears to have been improving for some time; undue distortions of competition are avoided; (ii) The aid is limited to the minimum needed and does not provide the company with surplus cash. Background Bull S.A. is an international group, which operates mainly in the areas of up-market professional servers and specialized computer engineering services. Its turnover in 2003 was EUR1,265 million. In 1999 it was forced to sell assets; since 2001 its finances have deteriorated owing to the stock market crisis affecting technology stocks, the crisis in the Internet sector and the collapse of telecommunications markets. Bull designs and supplies a range of large professional servers based on the proprietary operating system GCOS. It also sells servers using IBM and NEC technology. In addition, it provides its customers with maintenance services directly linked to the servers. CONSODATA SA: Acxiom Takes over Major European Operations --------------------------------------------------------- Turin-based Seat Pagine Gialle, one of the world's leading multi-platform directories companies, has sold its Consodata database unit to Acxiom Corporation, according to Reuters. Seat gave no details in its statement on Tuesday, but to recall the U.S. computer marketing company proposed early in the month to acquire Consodata's businesses in England, France, Spain and Germany for EUR30 million (approximately US$37.5 million). The deal would leave Consodata with only its operations in Italy and the U.S. The Consodata European operations own and operate some of the most comprehensive consumer lifestyle databases in Europe. ============= G E R M A N Y ============= INFINEON TECHNOLOGIES: Buys Minority Stake in Dresden Subsidiary ---------------------------------------------------------------- Infineon Technologies AG (FSE/NYSE: IFX) announced on Tuesday that it will acquire the 13% minority holding in Infineon Technologies SC300 GmbH & Co. KG (SC300 KG) of Leipziger Messe GmbH and SC 300 Beteiligungs GmbH, for approximately EUR278 million. The acquisition will be financed through increasing Infineon's capital by approximately 27 million new shares through a capital increase in kind. Now that the contractual conditions allow Infineon to acquire the minority holdings and the 300mm facilities are fully operational, Infineon will take sole control of SC300 KG. SC300 KG operates one of the world's most advanced semiconductor wafer manufacturing facilities based on 300mm technology. Through the introduction of 300mm technology Infineon has been benefiting from increased productivity and achieved cost savings of approximately 30%. Infineon and the minority shareholders Leipziger Messe GmbH and SC 300 Beteili-gungs GmbH in SC300 KG had agreed by the foundation of SC300 KG on advance profit participation, which affected Infineon's Consolidated Financial Statements since the operations of SC300 KG were already fully consolidated. The purchase of the minority interest will, therefore, reduce Infineon's financing charges on an ongoing basis. Credit Suisse First Boston is acting as financial advisor to Infineon in connection with the transaction. The investment by Leipziger Messe GmbH and SC 300 Beteiligungs GmbH in SC300 KG was an important factor supporting the successful construction and ramp in operations of the manufacturing facilities. Leipziger Messe GmbH is a company owned by the Federal State of Saxony and by the City of Leipzig. SC 300 Beteiligungs GmbH is a subsidiary of M+W Zander Holding AG, which is the lead company of Jenoptik AG's Clean Systems group. About Infineon Infineon Technologies AG, Munich, Germany, offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. With a global presence, Infineon operates in the U.S. from San Jose, CA; in the Asia-Pacific region from Singapore and in Japan from Tokyo. In fiscal year 2003 (ending September), the company achieved sales of EUR6.15 billion with about 32,300 employees worldwide. Infineon is listed on the DAX index of the Frankfurt Stock Exchange and on the New York Stock Exchange (ticker symbol: IFX). Further information is available at http://www.infineon.com CONTACT: INFINEON TECHNOLOGIES AG Worldwide Headquarters P.O. Box 80 09 49 D-81609 Muenchen Germany Gunter Gaugler Media Relations Contact Phone: +49-89-234-28481 Fax: +49-89-234-28482 E-mail: guenter.gaugler@infineon.com Christoph Liedtke U.S.A. Phone: +1-408 501-6790 Fax: +1-408 501-2424 E-mail: christoph.liedtke@infineon.com Hirotaka Shiroguchi Japan Phone: +81-3-5449-6795 Fax: +81-3-5449-6401 E-mail: hirotaka.shiroguchi@infineon.com Kaye Lim Asia Phone: +65-6840-0689 Fax: +65-6840-0073 E-mail: kaye.lim@infineon.com Investors and Analysts based in Europe please contact: Phone: +49-89-234 26655 E-mail: investor.relations@infineon.com Investors and Analysts based in North America please contact: Phone: +-1-408 501 6800 E-mail: investor.relations@infineon.com =========== G R E E C E =========== OLYMPIC AIRWAYS: E.U. Regulator Probes Alleged State Aid -------------------------------------------------------- The E.U. Commission decided on Tuesday to initiate a formal State aid investigation procedure against Greece concerning Olympic Airways. The Commission has doubts about the arrangements for setting up and privatizing a new company to be known as Olympic Airlines and intends to ensure that no State aid is involved. "It is high time to take action: this is the last chance for Olympic Airways. Unless the privatization process is completed in full conformity with European legislation, the company will have to be placed into liquidation, as was the case with other companies in the competitive air transport market," stated Loyola de Palacio, Vice-President with special responsibility for transport and energy. "I am certain that the Greek Government will cooperate fully with the Commission to avoid the errors which led to this situation." The Commission decided to initiate a formal investigation under Article 88 of the Treaty against Greece since it has doubts as to whether several measures in recent years may be regarded as compatible with the common market. The Commission will assess whether the advantages granted to Olympic Airways constitute new State aid, and in particular the non-payment of tax debt in 2003; the provision of an advance by the Greek State to fund the restructuring and privatization of the company and the non- payment of the airport modernization tax (Spatosimo) charged to passengers. In addition, the Commission intends to verify the conditions under which the Greek State set up at the end of 2003 a new company to be known as Olympic Airlines, which took over the aviation activities of Olympic Airways. The Commission takes the view that all the companies, which belong to the group, are a single undertaking from the point of view of the Community State aid rules. All the assets of Olympic Airways (aero planes, staff), and in future the maintenance and ground handling divisions have been or will be transferred to the new company. It has also taken over the slots, traffic rights and public service obligations of Olympic Airways. Accordingly, the Commission has doubts about the lawfulness of the advantages that Olympic Airlines, as the successor to Olympic Airways, may enjoy, and about the procedure used which does not allow it to assess whether the potential purchaser will pay a fair price. Lastly, the Commission is calling for the formal repeal before December 31, 2004 of several articles of Law 96/1975, establishing an exemption scheme for Olympic Airways, which in its opinion, distorts or threatens to distort competition within the common market. ============= I R E L A N D ============= BULA RESOURCES: Creditor Requests Liquidation --------------------------------------------- The High Court ordered the wind up of exploration firm Bula Resources, according to BizWorld. James Stafford of Friel Stafford accountants has been appointed liquidator. The decision was issued at the request of Computershare Investor Services (Ireland), which is owed EUR200,000 for services provided to the firm over the past six years. CONTACT: FRIEL STAFFORD 44 Fitzwilliam Place, Dublin 2 Phone: +353 - 1 - 661 4066 Fax: +353 - 1 - 661 4145 E-mail: stafford@liquidations.ie COMPUTERSHARE INVESTOR Homepage: http://www-us.computershare.com/contactus/ BULA RESOURCES: Company Profile ------------------------------- NAME: Bula Resources (Holdings) Plc 7 Priory Hall Stillorgan Co. Dublin PHONE: (01) 677 5222 FAX: (01) 677 5106 E-MAIL: info@bularesources.ie WEB SITE: http://www.bularesources.com/ TYPE OF BUSINESS: Bula Resources (Holdings) PLC is an oil and gas exploration and development company based in Dublin Ireland. The company was formed in 1981 and in its early years primarily concentrated on exploration offshore Ireland. The company is now primarily focused on North Africa and the Middle East with several license applications in Libya and Iraq. EXECUTIVES: Albert Reynolds, Non Executive Chairman Dr. Tom Kelly, Chief Executive Officer Omar Issa Yazigi SHAREHOLDERS: NCL INVESTMENTS LIMITED - 7.1% CHAMONIX NOMINEES LIMITED - 3.5% REGISTRARS: COMPUTERSHARE INVESTOR SERVICES (IRELAND) LTD. Heron House Corrig Road Sandyford Ind. Est. Dublin 18 Phone: (01) 216 3100 Fax: (01) 216 3151 AUDITORS: ARTHUR ANDERSEN Arthur Andersen LLP headquarters 33 W. Monroe Chicago, IL 60603 USA Phone: 1 312 580 0033 Fax: 1 312 507 6748 SOLICITORS: MATHESON ORMSBY PRENTICE 30 Herbert Street, Dublin 2, Ireland DX: 2 Dublin Phone: 353 1 619 9000 Fax: 353 1 619 9010 E-mail: mop@mop.ie Homepage: http://www.mop.ie BANKERS: AIB PLC AIB Bankcentre, PO Box 452 Ballsbridge, Dublin 4, Ireland Phone: +353 1 660 0311 Homepage: http://www.aibgroup.com HIBERNIA NATIONAL BANK New Orleans, Louisiana, USA. Homepage: http://www.hibernia.com/ ========= I T A L Y ========= PARMALAT FINANZIARIA: Bondi Unveils 2004-2007 Turnaround Plan ------------------------------------------------------------- Parmalat Finanziaria S.p.A., under Extraordinary Administration, communicates that a meeting between the Company and the Surveillance Committee appointed by the Minister for Productive Activities according to article 45 of Legislative Decree no. 270/1999[1], took place on Tuesday. During the meeting Parmalat's Extraordinary Commissioner, Dr. Enrico Bondi, presented these to the Surveillance Committee: (1) An outline of the developments in the Parmalat Group in recent months; (2) An initial overview of the Parmalat Group's financial debt situation with third parties; (3) An initial overview of the Parmalat Group's 2003 revenues, and EBITDA; (4) An outline Program for the Industrial and Debt Restructuring (the Plan) of the Parmalat Group; (5) The timeline for the presentation of the Plan to the Minister of Productive Activities and for the achievement of a concordat with the Group's creditors; and (6) The current situation and proposed meetings with the Group's major creditors to discuss the Plan. Principal developments affecting the Parmalat Group in recent months The Surveillance Committee was taken through the main developments that have impacted the Parmalat Group in recent months, as: (i) Initial context It is less than three months since the scale and seriousness of the crisis facing the Parmalat Group began to emerge. The Group's situation at the outset of the Extraordinary Administration on December 24, 2003 was characterized by the limited availability of any reliable financial information or documentation, by serious deficiencies in financial controls and in the Group's organizational structures as well as a widespread liquidity crisis. This, notwithstanding, actions have been taken during this period that have created the conditions for the development and presentation of the outline Plan. (ii) Extension of the Extraordinary Administration to other Parmalat Group companies Given their state of insolvency it was decided to extend Parmalat S.p.A.'s Extraordinary Administration status to the controlling company Parmalat Finanziaria S.p.A. as well as other Group companies such as: Eurolat S.p.A., Lactis S.p.A., Parmalat Netherlands BV, Parmalat Finance Corporation BV, Parmalat Capital Netherlands BV, Dairies Holding International BV, Parmalat Soparfi S.A., Olex S.A., Parma Food Corporation BV, Eurofood IFSC Ltd, Contal Srl, Geslat Srl e Parmaengineering Srl. The possibility of extending further the Extraordinary Administration to other minor Group companies is also currently under consideration. (iii) Key steps undertaken to preserve the value of the Parmalat Group in the interests of all creditors From the outset of Parmalat S.p.A.'s Extraordinary Administration (December 24, 2003), the Extraordinary Commissioner and his advisors have acted, where possible, to maintain the integrity of the Group, with the objective of preventing any single creditor action from damaging the interests of creditors as a whole. These efforts have resulted, amongst others, in the following initiatives being undertaken in a number of countries where the Parmalat Group operates. USA In the USA, it was decided to request Chapter 11 bankruptcy protection for the Group's dairy activities with the objective of avoiding operational and financial disruption. This also enabled the business to secure a US$35 million financing package required to cover the short-term requirements of its ongoing business and to create the conditions necessary to explore strategic alternatives for the business' future development. This includes a possible sale in relation to which negotiations are currently in progress with interested parties. Brazil With regard to the Parmalat Group's Brazilian activities, a request was made by Parmalat for the establishment of a local procedure to reach an agreement with the business creditors. Since then, however, the Group's Brazilian activities have been placed under the control of the Brazilian judicial authorities, who have nominated their own Commissioners to run the business. In other countries, the Administration has taken action under local regulations and/or reached agreements with local creditors in order to mitigate, where possible, any negative impact on the Group's businesses and therefore on the value of the relevant companies. (iv) Financing Parmalat S.p.A. has secured from a pool of banks a EUR105.8 million financing that also includes 'privileged' creditor status to the lenders under Italian law. The financing is divided into two tranches: the first for EUR52.4 million is in the form of an overdraft facility. The second tranche of EUR53.4 million is issued against advanced trade receivables. The financing has a 364-day duration and will cover the working capital needs of Parmalat S.p.A. as well as addressing the financing requirements of subsidiaries by way of inter-company loans. Overview of the Group's financial debt situation with third parties The Surveillance Committee was given an initial overview of the state of the Group's indebtedness with third parties on the basis of the currently available information. This overview indicates gross financial debt of EUR14.8 billion, of which approximately EUR4.2 billion relates to loans from Italian and international banks, approximately EUR9.4 billion relates to bonds issued via public and private placements and approximately EUR1.2 billion relates to liabilities in connection with derivatives (provisionally calculated on a mark to market basis at the end of 2003), securitization and promissory notes. These numbers are based on preliminary data for the 2003 financial year that are still under review and subject to more detailed investigation, in particular as regards a series of upward and downward adjustments that would bring the total level of financial indebtedness to EUR14.2 billion. Overview of the Group's 2003 revenue and EBITDA The Surveillance Committee was also presented with an initial overview of the Group's 2003 situation at the revenue and EBITDA levels. These are preliminary numbers that are still subject to more detailed verification in light of the work underway on the reconstruction of all the Group companies' balance sheets. From this overview, an aggregate, non-certified figure -- including a series of adjustments to remove the impact of some atypical activities (such as Parma AC) -- of EUR5.8 billion for Group revenues has been established, with an EBITDA figure of approximately EUR0.2 billion. Plan Perimeter The outline Plan covers the operating activities of the Parmalat Group and excludes these companies that are also subject to the Extraordinary Administration procedure: Parmatour S.p.A., Coloniale S.p.A., Hit International S.p.A., Nuova Holding S.p.A. and Hit S.p.A. Separate solutions are being developed for these companies that do not form part of the outline Plan. Details of these will be the subject of future announcements. Outline Plan 2004-2007: Industrial Aspects It is envisaged that the New Parmalat will be an Italian group with a multinational strategy, centrally coordinated, a leaner, more competitive and more efficient business whose primary objective will be the creation of value for its shareholders. The outline Plan aims to position Parmalat as one of the world's leading players in the high added-value foods sector, based on products with a strong nutritional and healthy lifestyle focus. The Group will aim at maintaining and adding leadership positions in certain product categories, based around a number of strong brands targeting high potential markets. The Group intends to concentrate its activity on beverages (milk and fruit juice) and milk related products. This will entail a concentration on 30 brands, 6 of which currently account for some 80% of the Group's sales. This compares with the current figure of 120 brands across the Group. The principal brands will be: (i) The Global brands: Parmalat and Santal; (ii) A number of strong local brands such as: Berna, Lactis and Centrale Latte Roma in Italy; Clesa and Cacaolat in Spain; Astro and Lactantia in Canada; Pauls in Australia; Bonnita In South Africa; La Campina in Venezuela. (iii) A number of new international brands such as: Chef (cream-based sauces), Kyr (probiotic products); Sensational Soy (soya-based drinks). With regard to the Group's geographic presence the intention is to concentrate activities on those countries with high potential in the chosen product categories, characterized by strong demand for health food, a willingness to pay a premium price for Parmalat brands and the availability of leading-edge technology. A review of the Group's geographic portfolio is in progress with the objective of selecting those countries and businesses that meet the above requirements. Those activities considered non-core will be divested. All transactions will be carried out according to transparent procedures aimed at securing maximum value by generating the greatest possible level of interest amongst potential acquirers. The Company intends shortly to appoint an industrial advisor that will have the role of reviewing the outline Plan from a strategic viewpoint. The process is already underway to make this selection. The implementation of this industrial strategy during the Plan period of 2004-2007 is expected to result in the achievement of an EBITDA level in line with that of the Group's major international competitors that currently achieve a margin of approximately 10% on sales. Outline Plan 2004-2007: Debt Restructuring The work carried out to date indicates that continuing the Group's business will be beneficial to creditors. The means by which this benefit will be transferred to the Group's creditors are in an advanced state of development and will be the subject of successive announcements. It is currently envisaged that a debt for equity swap, with creditors receiving shares that would be tradable on a regulated exchange, would likely be the most effective way of achieving the above objective. Whatever the outcome, the chosen mechanisms will also take into account the possibility of maximizing any benefits resulting from legal actions that are currently being considered. The new structure of the Parmalat Group The Plan will entail the rationalization of the Parmalat Group and the creation of robust and efficient corporate control structures, the strengthening of the Group's management and the introduction of international best practice corporate governance standards. Timeline for presentation and approval of the Plan The Extraordinary Commissioner outlined to the Surveillance Committee the timeline objectives for the presentation of the final Plan to the Minister of Productive Activities and for the achievement of a concordat to be voted on by the Group's creditors. The intention is to begin immediately a series of meetings with major creditors, the relevant authorities and trade union bodies to discuss the outline Plan, prior to finalizing the Plan for presentation to the Minister of Productive Activities followed by a concordat to be presented to creditors for their approval. It is expected that the Plan could require approximately two months of discussion, with the aim of presenting it in final version by May/June of this year. This is in line with the 180 day legally binding limit period (which can eventually be extended by a further 90 days) by which the Plan must be presented to the Minister of Productive Activities. From the point at which the Plan is finally presented to the Minister of Productive Activities and to creditors, a period of time is granted to carry out those technical steps necessary for the Plan's approval by the Minister and then for the concordat to be approved by the Group's creditors. Recognition of Creditors The Court of Parma, in co-operation with the Company, is reviewing the means by which creditors can be recognized as such by the companies in Extraordinary Administration. Once defined by the Court, the steps that need to be taken will be communicated in the appropriate way. -------- Footnote [1] The Surveillance Committee is composed of Prof. Massimo Confortini (Chairman), Prof. Daniela Primicerio, Avv. Dario Trevisan, Dr. Guido Rosa, Hon. Giacomo Vizzani. This Committee was appointed according to the Ministerial Decree of 23 February 2004 and its constitution and functions are foreseen under articles 45, 46, and 47 of Legislative Decree no. 270/1999. PARMALAT FINANZIARIA: Details EUR105.8 Million Financing -------------------------------------------------------- Parmalat Finanziaria S.p.A., | Parmalat Finanziaria S.p.A., in under Extraordinary | Amministrazione Straordinaria, Administration communicates | comunica che oggi a Milano e that the contract relating | stato stipulato il contratto to a financing for a total | di finanziamento per of EUR105.8 million in favor | complessivi EUR105.8 milioni of Parmalat S.p.A., under | a favore di Parmalat S.p.A. Extraordinary Administration,| in Amministrazione has been finalized in Milan | Straordinaria. 12-month Loan from 21 Italian Banks The financing, for a maximum | Il finanziamento, di duration of twelve months, | durata massima di 12 mesi, e is divided into two tranches:| suddiviso in due tranche: | -- the first, for an amount | -- la prima di EUR52.4 of EUR52.4 million, is | milioni sara erogata in the form of a current | sotto forma di scoperto account overdraft, and | di conto corrente, | -- the second, for an amount | -- mentre la seconda di of EUR53.4 million, is | EUR53.4 milioni sotto issued against advanced | forma di anticipi su trade receivables. | fatture. | These banks are | Al finanziamento participating in the | partecipano le seguenti financing: | banche: (1) Banca di Roma S.p.A. (2) Banca Intesa S.p.A. (3) Cassa di Risparmio di Parma e Piacenza S.p.A. (4) Sanpaolo IMI S.p.A. (5) Banca Monte dei Paschi di Siena S.p.A. (6) Unicredit Banca d'Impresa S.p.A. (7) Banca Popolare di Lodi Scrl (8) Banca Nazionale del Lavoro S.p.A. (9) Banca Popolare dell'Emilia Romagna S.p.A. (10) Banca Popolare di Bergamo S.p.A. (11) Deutsche Bank S.p.A. (12) Banco di Brescia San Paolo CAB S.p.A. (13) Banca Popolare di Milano Scrl (14) Banca Antoniana Popolare Veneta S.p.A. (15) Banca delle Marche S.p.A. (16) Banca Carige S.p.A. - Cassa di Risparmio di Genova e Imperia (17) Banca Popolare Etruria e Lazio Scrl (18) Banca Monte Parma S.p.A. (19) Banca CR Firenze S.p.A. (20) BIPOP Carire S.p.A. Unicredit Banca d'Impresa | Unicredit Banca d'Impresa S.p.A. is acting as Agent | S.p.A. svolge il ruolo di Banca Bank. | Agente. EUR8,000,000 Funding for Lactis The above financing is in | Il finanziamento di cui addition to that for a total | sopra si aggiunge ai of EUR8 million recently | finanziamenti per complessivi agreed by Lactis S.p.A., | EUR8 milioni recentemente under Extraordinary | stipulati da Lactis S.p.A. in Administration, with these | Amministrazione Straordinaria Banks: | con le seguenti banche: (1) Banco di Brescia San Paolo CAB S.p.A. (2) Banco Popolare di Verona e Novara Scrl (3) Banca Popolare di Bergamo S.p.A. (4) Banca di Bergamo S.p.A. (Parmalat Bankruptcy News, Issue No. 8; Bankruptcy Creditors' Service, Inc., 215/945-7000) =========== N O R W A Y =========== PETROLEUM GEO-SERVICES: Adopts 'Fresh Start' Accounting ------------------------------------------------------- Petroleum Geo-Services ASA (OSE: PGS; OTC: PGEOY) provided an update on the status of its implementation of "fresh start" reporting under U.S. generally accepted accounting principles (U.S. GAAP). The Company also separately announced its unaudited, preliminary results under Norwegian generally accepted accounting principles for the fourth quarter and full year 2003. The Company, which emerged from Chapter 11 on November 5, 2003, will adopt "fresh start" reporting for financial statement purposes, effective November 1, 2003 in accordance with American Institute of Certified Public Accountants Statement of Position No.90-7, "Financial Reporting by Entities in Reorganization under the Bankruptcy Code" (SOP 90-7). Under SOP 90-7, the Company is required to adjust the recorded value of its assets and liabilities to reflect their fair market value as of the date it emerged from Chapter 11. As a result of the Company emerging from Chapter 11 proceedings and adopting "fresh start" reporting, the financial position and results of operations of the reorganized Company will not be comparable to the financial position and results of operations reflected in the historical financial statements of the Company for periods prior to November 2003. Pursuant to SOP 90-7, the Company will value its assets and liabilities at fair market value with any shortfalls or excesses in such values, as compared to the reorganization value of the Company discussed below, being reflected as goodwill or downward adjustments to long-term assets, respectively. The Company has completed unaudited, preliminary estimates of the fair market value of its assets and liabilities as of the date of emergence from Chapter 11 through the use of third party appraisers and consultants to value its intangible assets, floating production, storage and offloading units (FPSOs) and seismic vessels. The reorganization value, estimated at US$1.5 billion, was previously disclosed in connection with the Company's Chapter 11 reorganization, and was used as a basis for its plan of reorganization. This reorganization value was determined based on, among other things, various valuation methodologies and projections developed by the Company in connection with the Chapter 11 reorganization. However, it should be emphasized that the reorganization value was determined prior to entering into Chapter 11, and therefore, does not purport to constitute an appraisal or necessarily reflect the current market value of the Company as a whole or of its securities or assets, which current market value (as determined by reference to the trading value of the Company's shares and publicly held debt) is currently higher than such estimated reorganization value. The Company's unaudited, preliminary "fresh start" opening balance sheet is (in US$ thousands): Assets November 1, 2003 Cash and cash equivalents 142,803 Accounts receivable 196,662 Other current assets 56,153 Total current assets 395,618 Multi-client library 429,196 Property and equipment 1,049,153 Oil and gas assets 23,946 Other long-term assets 100,207 Total assets 1,998,120 Liabilities and Shareholders' Equity Short-term debt and current portion of long-term debt and capital lease obligations 29,955 Accounts payable and accrued expenses 221,167 Income taxes payable 46,220 Total current liabilities 297,342 Long-term debt and capital lease obligations 1,197,487 Other long-term liabilities 164,543 Deferred income taxes 10,802 Total liabilities 1,670,174 Shareholders' equity 327,946 Total liabilities and shareholders' equity 1,998,120 Comments Relating to Major Balance Sheet Items The multi-client library has been valued at $429.2 million. Third party valuation experts determined the value of the multi- client library based on discounted expected cash flows for each individual survey. The Company estimated the expected revenue for each survey along with associated direct and indirect selling costs. A variable discount rate (ranging from 13-18%) was used on each survey to compensate for risk factors not considered in estimating future cash flows. Property and equipment has been valued at $1,049.1 million, including these main categories: (i) FPSOs are valued at $710 million, including the value of associated contracts. The FPSOs are included in property and equipment at a value of $678.2 million. Contract values of $31.8 million are classified as intangible assets under other long-term assets. The values of the FPSOs were determined by reference to estimates provided by an independent third party appraiser. (ii) Seismic vessels and equipment are valued at $355.8 million, (net of a $12.8 million downward adjustment representing the amount by which the fair value of assets and liabilities exceeded the reorganization value). The values of the seismic vessels and equipment were determined by reference to estimates provided by an independent third party appraiser. (iii) The Company has revised the estimated depreciable lives of several of its vessels. The depreciable lives of the Company's Ramform seismic acquisition vessels and FPSOs will, under "fresh start" reporting, be reduced from 30 to 25 years from the date of delivery as a new build, except for Petrojarl 1, which will be depreciated over 30 years, due to a substantial refurbishment completed in 2001. Oil and gas assets are valued at $23.9 million. The Company is still considering whether it should record the fair value estimated for oil and gas assets gross of taxes. This could have a significant reclassification effect between oil and gas assets and deferred tax liabilities but will not effect equity. Other long-term assets include the estimated fair value of intangible assets ($68.8 million) including: FPSO related contracts ($31.8 million); existing technology ($31.6 million); and order backlog ($5.4 million). These values were determined by reference to estimates provided by independent third party consultants. The FPSO related contract values were estimated on an income-based approach using discounted cash flow for the valuation of the individual contracts, while existing technology was estimated based on a combination of an income based royalty approach and an avoided cost approach. Debt and capital lease obligations with a nominal value of $1,189.8 million is valued at $1,227.4 million based on estimated market values for the Company's publicly held debt. Other long-term liabilities include an accrual of $46.7 million representing the present value of additional lease payments related to certain defeased financial leases. Such additional rental payments are the consequence of a lower Sterling LIBOR than was assumed at the time the leases were defeased. As preciously disclosed, the Company entered into certain lease structures from 1996 to 1998 relating to Ramforms Challenger, Valiant, Viking, Victory and Vanguard; Petrojarl Foinaven; and production equipment of the Ramform Banff. The Company paid funds to large international banks, and in exchange, these banks assumed liability for making rental payments required under the leases and the lessors legally released the Company as obligor of such rental payments. Accordingly, the Company has not recorded any capital lease obligations or related defeasance funds in its consolidated balance sheets with respect to these leases. This treatment will be re-examined as part of the U.S. GAAP 2002 and 2003 audits and 2001 re-audit. Accounts payable and accrued expenses include an accrual of $40.6 million representing cash to be distributed to holders of the Allowed Class 4 Claims (PGS' former bondholders and bank debt holders) as excess cash under the Company's Modified First Amended Plan of Reorganization dated October 21, 2003. Approximately $18.9 million was distributed in December 2003 and the remaining $22.7 million will be distributed in April 2004. Summary of Changes in Accounting Policies Pursuant to "Fresh Start" Reporting In connection with the Company's adoption of "fresh start" reporting for financial statement purposes, effective November 1, 2003 the Company has changed certain of its accounting policies. The changes described below are not intended to represent a complete description of changes in accounting policies that will affect the Company's future reporting under U.S. GAAP pursuant to "fresh start" reporting. Accounting for steaming and yard stay: The Company previously deferred expenses incurred in connection with steaming and yard stay and recognized such amounts as part of the cost of contracts or multi-client projects, as appropriate. Under "fresh start" reporting such costs will be expensed as incurred. Capitalization of costs into multi-client library: The Company previously capitalized a portion of expenses related to steaming and yard stay, as well as certain overhead costs related to permanent local offices. Under "fresh start" reporting such expenses will not be capitalized, but will be expensed as incurred. The Company estimates that impact of this change in policy will reduce the amounts capitalized by 10% to 20%. Amortization of multi-client library: The Company will continue to base its amortization of the multi-client library on the sales forecast method. Under this method, amortization of a survey's cost is based on the ratio between the cost of a survey and total forecasted sales for such survey. In applying this method the Company will categorize its surveys into three amortization categories with amortization rates of 90%, 75% or 60% of sales amounts. Each category will include surveys where the remaining unamortized cost as a percentage of remaining forecasted sales is less than or equal to the amortization rate applicable to each category. Further, the Company will amend its policy for minimum amortization by reducing the maximum amortization period from 8 to 5 years. Oil and gas assets: The Company previously applied the Full Cost Method in accounting for oil and gas assets. Under "fresh start" reporting oil and gas assets will be accounted for using the Successful Efforts Method. About Petroleum Geo-Services Petroleum Geo-Services is a technologically focused oilfield service company principally involved in geophysical and floating production services. PGS provides a broad range of seismic- and reservoir services, including acquisition, processing, interpretation, and field evaluation. PGS owns and operates four floating production, storage and offloading units (FPSOs). PGS operates on a worldwide basis with headquarters in Oslo, Norway. For more information on Petroleum Geo-Services visit http://www.pgs.com CONTACT: PETROLEUM GEO-SERVICES Sam R. Morrow Svein T. Knudsen Phone: +47 6752 6400 Suzanne M. McLeod Phone: +1 281-589-7935 PETROLEUM GEO-SERVICES: Unaudited 2003 Net Loss US$814.1 Mln ------------------------------------------------------------ Petroleum Geo-Services ASA (OSE: PGS; OTC: PGEOY) announced on Tuesday its unaudited, preliminary results under Norwegian generally accepted accounting principles (Norwegian GAAP) for the fourth quarter and full year 2003. In light of the Company's continuing delays in reporting 2003 results under U.S. generally accepted accounting principles (U.S. GAAP), the unaudited, preliminary Norwegian GAAP information is being released to provide information to investors and to satisfy reporting requirements of the Oslo Stock Exchange. Generally the results for 2003 showed improvement over 2002 in terms of revenues, adjusted EBITDA, as defined, and cash flow post investment, as defined. However, the operating profit and net loss shown below reflects significant impairment charges in both 2003 and 2002, and in Q4 2003. 2003 Highlights Full year 2003 cash flow post investment, as defined, increased to $327.2 million from $209.3 million in 2002 reflecting improved adjusted EBITDA, as defined, and significantly reduced cash investment in multi-client library. For Q4 2003, cash flow post investment, as defined, decreased to $63.7 million from $85.4 million in Q4 2002, due to reduced cash flow from Marine Geophysical partly offset by improved cash flow from Onshore and Pertra. Fourth quarter Marine Geophysical cash flow was negatively affected by lower than anticipated late sales in Brazil and vessels steaming as well as yard stays, partly offset by continued good contract market performance. Fourth quarter 2003 cash flows for Onshore were improved due to improved project management while Pertra cash flows improved due to increased production and higher oil price Summarized unaudited, preliminary results under Norwegian GAAP for the fourth quarter and full-year 2003 are set forth below. This information (including 2002 financial information audited under Norwegian GAAP) is subject to adjustment, and any such adjustment could be material. Accordingly, this information should be read in conjunction with, and is subject to the significant qualifications discussed below. (US$million) Q4 2003 Q4 2002 Full-year Full-year Unaudited Unaudited 2003 2002 Unaudited Audited Revenues 260.5 261.7 1,111.5 992.3 Operating profit (loss) (498.5) 6.1 (629.6) (718.8) Net income (loss) (522.4) (120.7) (814.1) (1,245.7) Adjusted EBITDA, as defined (A) 99.4 127.1 477.7 460.5 CAPEX (B) (24.6) (7.2) (57.4) (60.8) Cash investments in multi-client (C) (11.0) (34.5) (93.0) (190.4) Cash flow post investment (A+B+C) 63.7 85.4 327.2 209.3 Financial Highlights (a) Q4 revenues $260.5 million, comparable with Q4 2002; (b) Full year adjusted EBITDA, as defined, of $477.7 million up $17.2 million from 2002. Q4 adjusted EBITDA, as defined, of $99.4 million, down 22% from Q4 2002 ; (c) Full-year 2003 cash flow post investment, as defined, of $327.2 million, up $117.9 million from 2002. Q4 cash flow post investment, as defined, of $63.7 million, down $21.7 million from Q4 2002; (d) Impairment charges totaling $496.6 million recognized in Q4, in line with "fresh start" reporting under U.S. GAAP as the Company emerged from Chapter 11 proceedings and as announced by the Company on January 23, 2004; (e) Completed financial restructuring and consummated Chapter 11 proceedings November 5, 2003. Interest bearing debt reduced by $1,283 million; (f) Arranged $110 million working capital facility in March 2004; (g) Distributed 1st installment of excess cash of $19.0 million in December 2003; (h) Changes implemented in accounting policies to increase transparency of financial reporting reduces comparability between periods. Q4 Operations (a) Lower cash flow in Marine Geophysical was caused by reduced multi-client late sales, caused by a delay in the announcement of the Brazil 6th licensing round terms, and significant vessel steaming to start new surveys; (b) Onshore showed significant improvement due to improved project management; (c) Production had stable performance on all fields after resolution of Petrojarl Foinaven compressor problem late October 2003; (d) Pertra performing above expectations due to continuing high production volumes and favorable oil prices. Q4 reported adjusted EBITDA, as defined, positively impacted by $13.5 million downward revision of abandonment obligation; (e) Pertra enhanced oil recovery drilling program confirmed substantial reserve additions for the field, which could result in a significant prolongation for the Petrojarl Varg FPSO contract; (f) The production contract for Ramform Banff was significantly amended and improved (subject to approval by Banff and Kyle licenses); (g) Cost-cutting program is on track with substantial cost reductions in Marine Geophysical. CONTACT: PETROLEUM GEO SERVICES Sam R. Morrow Svein T. Knudsen Phone: +47 6752 6400 Suzanne M. McLeod Phone: +1 281-589-7935 =========== P O L A N D =========== NETIA SA: To Pursue Planned Investment in Dialog ------------------------------------------------ Netia Chief Executive Officer Wojciech Madalski considers proposing an equity swap with the owner of rival Dialog should the latter insist on retaining a stake in the telecom it is selling, according to Interfax-Europe. KGHM Polish Copper, which owns Dialog, surprised buyers for the firm when it announced it is not selling its full 100% stake at this time. KGHM vice-president Andrzej Szczepek said the company hoped to first sell a portion to strengthen the asset before selling the whole business. It did not say whether it would sell a majority or a minority stake. Mr. Madalski was puzzled by the move, but confirmed it is willing to satisfy the seller's demand, according to the report. At the same time, he insisted that "a merged entity is the most reasonable solution." Mr. Madalski further said it might consider joining another bidder for its investment in Dialog. A decision on the sale is expected within two months. WIRTUALNA POLSKA: Future Hangs in Balance ----------------------------------------- Wirtualna Polska, Poland's second most popular Web site, will have to see whether it will still continue to exist in the worldwide web on Friday next week. The court is already poised to declare the Internet portal insolvent on March 26. Should shareholders fail to reach an agreement, the company will be dissolved, Warsaw Business Journal said. According to the report, majority of the firm's advertisers have already fled. TCR-Europe earlier reported speculations are rife that America's Yahoo! is planning to launch a Polish language version of its portal in order to win over users of the ailing Wirtualna Polska. =========== R U S S I A =========== DRUZHBA: Under Bankruptcy Supervision Procedure ----------------------------------------------- The Arbitration Court of Perm region has commenced bankruptcy supervision procedure on Closed JSC furniture factory, Druzhba. The case is docketed as A50-2597/2004-E. Mr. Alexandr Nudelman, a member of TP Interregional 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: 614600, Russia, Perm, Dzerzhinky str.17. A hearing will take place on June 16, 2004 at the Arbitration Court of Perm region. CONTACT: DRUZHBA 614600, Russia, Perm, Dzerzhinky str.17 Mr. Alexandr Nudelman, Temporary Insolvency Manager 614600, Russia, Perm, Dzerzhinky str.17 TP 105066, Moscow, Staraya Basmannaya str., 18, build.18 ELECTRO-MACHINE: Buryatiya Court Opens Bankruptcy Proceedings ------------------------------------------------------------- The Arbitration Court of Republic of Buryatiya commenced bankruptcy supervision procedure on OJSC Electro-Machine Building Factory. The case is docketed as A10-6609/03. Mr. Anatoly Kapustin has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to the temporary insolvency manager at: 370042, Russia, Republic of Buryatiya, Ulan-Ude, Tobolskaya str.47, 103. A hearing will take place on April 19, 2004, 2:00 p.m. at the Arbitration Court of Republic of Buryatiya. CONTACT: ELECTRO-MACHINE-BUILDING FACTORY 427430, Russia, Republic of Buryatiya Ulan-Ude, Borsoyeva str.105 Mr. Anatoly Kapustin, Temporary Insolvency Manager 370042, Russia, Republic of Buryatiya Ulan-Ude, Tobolskaya str.47, 103 KUZINSKY MECHANICAL: Under Bankruptcy Supervision Procedure ----------------------------------------------------------- The Arbitration Court of Vologda region commenced bankruptcy supervision procedure on OJSC Kuzinsky Mechanical Factory. The case is docketed as A13-9577/03-17. Mr. Yuri Schubin has been appointed temporary insolvency manager. Creditors have until April 12, 2004 to submit their proofs of claim to the temporary insolvency manager at: 160001, Russia, Vologda, Mir str.34-514. A hearing will take place on May 11, 2004, 11:00 a.m. at the Arbitration Court of Vologda region. CONTACT: KUZINSKY MECHANICAL FACTORY 162340, Russia, Veliky Ustyug Kuzino, Gogol str.2 Mr. Yuri Schubin, Temporary Insolvency Manager 160001, Russia, Vologda, Mir str.34-514 ARBITRATION COURT OF VOLOGDA REGION Russia, Vologda, Gerzen str.1a, Hall 4 LODAUTO: Enters Bankruptcy Supervision Procedure ------------------------------------------------ The Arbitration Court of Saint Petersburg and Leningrad region commenced bankruptcy supervision procedure on OJSC LODauto. The case is docketed as A56-50853/03. Mr. Dmitry Ivanov has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to the temporary insolvency manager at: 191119, Russia, Saint- Petersburg, Marat str.92, office 315. A hearing will take place on June 10, 2004, 11:00 a.m. at the Arbitration Court of Saint Petersburg and Leningrad region. CONTACT: OJSC LODAUTO 187710, Russia, Leningrad region, Lodeynoye pole Internazionalnaya str.1A. Mr. Dmitry Ivanov, Temporary Insolvency Manager 191119, Russia, Saint-Petersburg Marat str.92, office 315 MECHANICAL-REPAIR FACTORY: Under Bankruptcy Supervision ------------------------------------------------------- The Arbitration Court of Kemerovo region commenced bankruptcy supervision procedure on LLC Mechanical-Repair Factory. The case is docketed as A27-17315/2003-4. Mr. Maxim Tersin has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to the temporary insolvency manager at: 660049, Russia, Krasnoyarsk, Lenin str.62A, office 10. A hearing will take place on June 2, 2004, 10:00 a.m. at the Arbitration Court of Kemerovo region. CONTACT: MECHANICAL-REPAIR FACTORY 652619, Russia, Kemerovo region Belovo, Boyevaya str.1 Mr. Maxim Tersin, Temporary Insolvency Manager 660049, Russia, Krasnoyarsk, Lenin str.62A, office 10 POLIFLOCK: Kemerovo Court Appoints Insolvency Manager ----------------------------------------------------- The Arbitration Court of Kemerovo region declared State Industrial Enterprise Poliflock insolvent and introduced bankruptcy proceedings on the company. The case is docketed as A27-12206/2003-4. Mr. Sergey Sergienko, a member of TP Interregional Self-regulated organization of arbitral managers, has been appointed insolvency manager. Creditors have until May 11, 2004 to submit their proofs of claim to the insolvency manager at: 650000, Kemerovo, GlavPochtamp, Post User Box 962 CONTACT: POLIFLOCK 652509, Russia, Kemerovo region Leninsk-Kuznezky, Lapshinovka Mr. Sergey Sergienko, Insolvency Manager 650000, Kemerovo, GlavPochtamp, Post User Box 962 RYAZAN PUBLISHING: Under Bankruptcy Supervision Procedure --------------------------------------------------------- The Arbitration Court of Ryazan region commenced bankruptcy supervision procedure on LLC Publisher House. The case is docketed as A54-305/04-C20. Mr. Igor Ryumin, a member of TP Interregional Self-regulated organization of arbitral managers, has been appointed temporary insolvency manager. Creditors have until April 11, 2004 to submit their proofs of claim to the insolvency manager at: 390044, Russia, Ryazan, Moskovskoye shosse 20, office 37. A hearing will take place on June 24, 2004, 10:30 a.m. at the Arbitration Court of Ryazan region. CONTACT: Mr. Igor Ryumin, Temporary Insolvency Manager 390044, Russia, Ryazan, Moskovskoye shosse 20 Office 37 TEPLO: Moscow Court Appoints Temporary Insolvency Manager --------------------------------------------------------- The Arbitration Court of Moscow region commenced bankruptcy supervision procedure on State Unitary heat power enterprise, Teplo. The case is docketed as A41-K2-3580/04. Ms. Oksana Illarionova, a member of TP Interregional Self-regulated organization of arbitral managers, has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to temporary the insolvency manager at: 142205, Moscow region, Serpuchov, Post User Box 209. A hearing will take place on July 6, 2004, 10:00 a.m. at the Arbitration Court of Moscow region, Hall 440. CONTACT: TEPLO 142293, Russia, Moscow region Serpuchov Area, Bolshoye Gryzlovo Mrs. Oksana Illarionova, Temporary Insolvency Manager 142205, Moscow region, Serpuchov Post User Box 209 Phone: 8(27) 37-52-45 TP Moscow, Polkovaya str.17, build.3 TOKAMAK: Under Bankruptcy Supervision Procedure ----------------------------------------------- The Arbitration Court of Vladimir region has commenced bankruptcy supervision procedure on OJSC Tokamak. The case is docketed as A11-1196/2004-K1-18B. Mr. Alexandr Chernik has been appointed temporary insolvency manager. Creditors have until April 11, 2004 to submit their proofs of claim to the insolvency manager: 660014, Russia, Vladimir, Lakin str.129B, 31. A hearing will take place on July 8, 2004, 1:30 p.m. at the Arbitration Court of Vladimir region. CONTACT: OJSC TOKAMAK 601141, Russia, Vladimir region, Petushki Klyazmenskaya str.34 Mr. Alexandr Chernik, Temporary Insolvency Manager 660014, Russia, Vladimir, Lakin str.129B, 31 UST-UDINSKY: Irkutsk Court Appoints Insolvency Manager ------------------------------------------------------ The Arbitration Court of Irkutsk region declared OJSC cheese- making factory, Ust-Udinsky, insolvent and introduced bankruptcy proceedings on the company. The case is docketed as A19- 12936/02-46-49. Creditors have until May 11, 2004 to submit their proofs of claim to the insolvency manager at: 664009, Russia, Irkutsk, Alpiyskaya str.5, 3. A creditors meeting will take place on May 14, 2004, 9:00 a.m. at the Office of Ust-Uda district administration. CONTACT: UST-UDINSKY Russia, Irkutsk region Ust-Uda Insolvency manager 664009, Russia, Irkutsk, Alpiyskaya str.5, 3 =========== S W E D E N =========== LM ERICSSON: Narrows Voting Rights Difference of A and B Shares --------------------------------------------------------------- The Swedish Securities Council (Aktiemarknadsnamnden) is of the opinion that the work group's proposal is not in conflict with good practice on the Swedish securities market and the proposal is assumed to be of advantage to the company and is thereby in the interest of all shareholders. The proposal was made public on February 19, 2004, and has been prepared by a Work Group consisting of shareholder representatives led by the Chairman of Ericsson, Michael Treschow. The proposal principally states that the difference in voting rights between the A- and the B-share is changed from 1000:1 to 10:1 and that the A-shareholders will receive a conversion right, for each A-share, which may be transferred or exercised for conversion of one B-share to one A-share. The statement of the Swedish Securities Council means that one of the conditions for completion of the proposal is now fulfilled. The next step is that the proposal will be submitted for resolutions on the general meetings of Investor and Industrivarden. Assuming that the proposal is approved on the general meetings and that a final advance tax ruling on the tax issues is received, stating that the reduction of the differences in voting rights to 10:1 and the conversion from B- to A-shares do not trigger tax liability, the proposal will be submitted for resolution at an extraordinary general meeting in Ericsson. If the proposal is approved at the general meeting in Ericsson, a number of major Swedish holders of B-shares intend to make an offer to purchase conversion rights for SEK1.10 per conversion right. About LM Ericsson Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world. CONTACT: LM ERICSSON Ase Lindskog, Head of Media Relations Communications Phone: +46 8 719 9725; +46 8 719 6992 E-mail: press.relations@ericsson.com SKANDIA INSURANCE: Bernt Magnusson Endorsed to Chair Board ---------------------------------------------------------- Skandia's nominating committee proposes that the Annual General Meeting on 15 April 2004 elect Bernt Magnusson to Skandia's board (new election), and also recommends that he be appointed as Chairman of the Board. Further, the Committee proposes that Bjorn Bjornsson be re-elected to the Board and recommends that he be appointed as Vice Chairman of the Board. Bernt Magnusson has announced that if he is elected to Skandia's board, he will leave Nordea's board. This has also been a condition made by the Nominating Committee for his nomination. The Nominating Committee's recommendations pertaining to other Directors of the Board will be presented at a later date. The Committee's proposal has the support of shareholders representing slightly more than 15% of the shares and votes in Skandia. In a comment, the Nominating Committee notes that Skandia now acquires a very good solution to the chairman issue and that Bernt Magnusson and Bjorn Bjornsson have a very broad and vital base of complementary experience that will benefit Skandia. Bernt Magnusson was born in 1941. He is Chairman of Swedish Match AB and Dyno Nobel ASA, and a director of Nordea Bank AB, Net Insight AB, Volvo Car Corporation, Hoganas AB and Pharmadule AB. He is also an advisor to the European Bank for Reconstruction and Development. Bernt Magnusson has prior experience in Nordstjernan, Nobel and AssiDoman, among other companies. He has also served as chairman of the board of the insurance company, Sirius. Bjorn Bjornsson was born in 1946. He runs a financial consulting business and was elected to Skandia's board at the Annual General Meeting in April 2003. He has been serving as Chairman of the Board since December. Bjorn Bjornsson is a director of Bure Equity, Billerud, JM and Teracom AB, among other companies. His prior experience includes the position as CEO of the asset management company Lancelot, directorship at AssiDoman, among other companies, and reconstruction work for Trustor. CONTACT: SKANDIA INSURANCE Odd Eiken, Executive Vice President, Strategy & Communication Phone: + 46-8-788 28 80 Gunilla Svensson, Press Manager Phone: +46-8-788 42 97 ============= U K R A I N E ============= * Local Banking System Remains Weak, Fitch Says ----------------------------------------------- Fitch Ratings says, in spite of an improving operating environment, the Ukrainian banking sector remains weighed down by a number of significant weaknesses, including low capitalization and profitability and high concentration levels. In a special report entitled "The Ukrainian Banking System," which was published Tuesday, Fitch says the banking sector has grown very rapidly in the past three years, reflecting the improving operating environment in Ukraine and also a rise in public confidence in the banking system. Nevertheless, the sector remains small and over-banked, and the level of intermediation within the economy is low. Fitch notes that the regulatory environment is less than strong and the operating environment, despite having improved, remains challenging. In light of the latter, recent rapid growth in banking sector assets (primarily loans), as well as banks' diversification into new, albeit higher margin lines of business in which they have limited experience (e.g. retail lending), raise a number of concerns, particularly in respect of future asset quality. However, asset quality has benefited from the improving operating environment of late. Fitch also notes that earnings are typically vulnerable, due to banks' reliance on net interest income in a falling interest rate environment, which is compressing margins, and high loan concentration levels. As a result of the latter, even a relatively small number of problem loans could have a very material impact on net interest income and provisions. Diversification of banks' revenue streams and customer bases is therefore important. Nevertheless, Fitch says that some progress has been made in the past three years in terms of the implementation of new banking legislation in Ukraine and the laying of the foundations for a more effective supervisory and regulatory framework. Even so, the effectiveness of its implementation remains to be seen and much still remains to be done in terms of filling gaps in legislation (e.g. corporate governance regulations) and also tightening certain existing prudential regulations. Fitch rates five Ukrainian banks (see http://www.fitchratings.com). CONTACT: FITCH RATINGS Lindsey Liddell James Longsdon, London Phone: +44 (0) 20 7417 4222 Media Relations: Campbell McIlroy, London Phone: +44 20 7417 4327 =========================== U N I T E D K I N G D O M =========================== ARW 2003: Winding up Resolution Passed -------------------------------------- At an Extraordinary General Meeting of the ARW 2003 Limited Company on February 25, 2004 held at 122 Leadenhall Street, London EC3V 4SL, the subjoined Special Resolution to wind up the Company was passed. Nicholas Jenner of PO Box 4001, Pangbourne, Reading RG8 7FN, is hereby appointed Liquidator for the purposes of such winding-up. Creditors must send in their names and addresses, with particulars of their debts or claims, and the names and addresses of their Solicitors (if any), to N Jenner, PO Box 4001, Pangbourne, Reading RG8 7FN on or before April 30, 2004. ASP INTERNATIONAL: National Westminster Bank Appoints Receiver -------------------------------------------------------------- Name of Company: ASP International Limited Reg No 3638415 Nature of Business: Other Non-Ferrous Metal Production Trade Classification: 6 Date of Appointment of Joint Administrative Receivers: March 3, 2004 Name of Person Appointing the Joint Administrative Receivers: National Westminster Bank Plc Joint Administrative Receivers: PKF New Guild House, 45 Great Charles Street, Queensway, Birmingham B3 2LX Receivers: Ian J Gould Brian J Hamblin (Office Holder Nos 7866, 2085) BANCOURT PLC: Meeting of Creditors Set March 23 ----------------------------------------------- There will be a Creditors Meeting of the Bancourt PLC Company on March 23, 2004 at 11:30 a.m. It will be held at the Holiday Inn, Cavershem Bridge, Richfield Avenue, Reading RG1 8BD. Creditors who want to be represented during the Meeting must submit their proxy forms together with their written statement of claim the Company due them at One Bridewell Street, Bristol BS1 2AA not later than 12:00 noon on or before March 22, 2004. A Lovett is the Joint Administrator of the Company. Contact: ERNST & YOUNG LLP One Bridewell Street, Bristol BS1 2AA Contact: A Lovett, Liquidator Phone: +44 [0] 117 981 2050 Fax: +44 [0] 117 981 2051 Web site: http://www.ey.com BANCOURT RISK: Creditors Meeting March 23 ----------------------------------------- Pursuant to section 48 of the Insolvency Act 1986, a Creditors Meeting of the Bancourt Risk Management Limited Company will be on March 23, 2004 at 10:00 a.m. The session will take place at the Holiday Inn, Caversham Bridge, Richfield Avenue, Reading RG1 8BD. Creditors who intend to vote at the Meeting should submit a written statement of their claim the Company due them at One Bridewell Street, Bristol BS1 2AA not later than 12:00 noon on or before March 22, 2004. Copies of the report can be obtained from A Lovett, Joint Administrative Receiver of Ernst & Young LLP. CONTACT: ERNST & YOUNG LLP One Bridewell Street, Bristol BS1 2AA Contact: A Lovett, Liquidator Phone: +44 [0] 117 981 2050 Fax: +44 [0] 117 981 2051 Web site: http://www.ey.com BERRY PALMER: Voluntary Winding up Resolution Passed ---------------------------------------------------- At an Extraordinary General Meeting of the Berry Palmer & Lyle Consultants Limited Company on February 25, 2004 held at 122 Leadenhall Street, London EC3V 4SL, the subjoined Special Resolution to wind up the Company was passed. Nicholas Jenner of PO Box 4001, Pangbourne, Reading RG8 7FN, is appointed Liquidator for the Company. Creditors are required to send on their names and addresses, with particulars of their debts and claims the Company due them and the names and addresses of their Solicitors (if any) to N Jenner, PO Box 4001, Pangbourne, Reading RG8 7FN on or before April 30, 2004. COOLMOVERS LIMITED: Appoints Administrator from Sanderlings LLP --------------------------------------------------------------- Name of Company: Coolmovers Limited Reg No 3754679 Registered Office: 10 Park Plaza, Battlefield Enterprise Park, Shrewsbury SY1 3AF Nature of Business: Freight Transport by Road Trade Classification: 6024 Administration Order made: March 8, 2004 Administrator: SANDERLINGS LLP Sanderling House, Springbrook Lane, Earlswood, Solihull B94 5SG Contact: A Fender (Office Holder No 6898) CORNERSTONE EQUIPMENT: Final Creditors Meeting April 14 ------------------------------------------------------- Name of Companies: Cornerstone Equipment Limited Cow Proofings Limited Duco Technology Limited A Final General Meeting of these Companies will be on April 14, 2004 at 10:30 a.m., 11:00 a.m., and 11:30 a.m. respectively. It will be held at the offices of Ernst & Young LLP, One Bridewell Street, Bristol BS1 2AA. The purpose of the Meeting is to lay down the account before the Creditors, how the winding-up of each Company has been conducted and how the Company's properties were disposed. CONTACT: ERNST & YOUNG LLP One Bridewell Street, Bristol BS1 2AA Contact: I Best, Liquidator Phone: +44 [0] 117 981 2050 Fax: +44 [0] 117 981 2051 Web site: http://www.ey.com CORUS GROUP: Russian Aluminium Owner Gains Foothold --------------------------------------------------- Metals magnate, Oleg Deripaska, is expected to bring added pressure to Anglo-Dutch steel producer Corus with his acquisition of a stake in the company, according to the Financial Times. David Geovanis, managing director of Basic Element which manages some of Mr. Deripaska's business interests, confirmed the Russian entrepreneur has a stake in Corus, but would not say how big it is. It is believed to be less than 3%. Mr. Derispaska owns 75% of Russian Aluminium. He has close business links with Alisher Usmanov, another metals tycoon who owns 11.03% of Corus. Mr. Usmanov has been pushing for a seat in the board and, according to Mr. Geovanis, he was encouraging other investors to buy stakes in Corus in order to gain support. Mr. Usmanov would not comment on the statement, the report said. With the influence acquired, Mr. Usmanov and Mr. Geovanis might propose to integrate some of the company's steel-making operations with Russian activities that they control, the report said. Mr. Derispaska's company might even take an interest in cooperating with, or even buying, Corus' small aluminum business, it added. DAWSON INTERNATIONAL: Sells Ballantyne Brand to Charme ------------------------------------------------------ Dawson International, one of the world's leading cashmere businesses, on Tuesday announced the sale of its premium cashmere brand, Ballantyne. The business is being sold to Charme Investments SCA, a Luxembourg based private equity company, Alfredo Canessa, Ballantyne's existing chairman and Massimo Alba, Ballantyne's existing creative director for GBP14.55 million. The deal is subject to shareholder approval and is expected to complete within the next three weeks. Commenting on the sale, Dawson International chairman, Mike Hartley said: "The move is a crucial step in the restructuring and refinancing of the Dawson International group. The Board of Directors believes that the sale of Ballantyne, along with the planned capital raising exercise and loan restructuring, will provide a sound basis to move towards restoring the continuing group's profitability. "The new owners have the financial resources to put substantial investment into the global development of the Ballantyne brand and are committed to accelerate its commercial and creative transformation under the leadership of Alfredo Canessa and Massimo Alba. The Board of Dawson believes that the sale is in the best interests of the future profitability of the Ballantyne business, the brand, its employees and Dawson's shareholders." Ballantyne's manufacturing operations in Innerleithen and Galashiels in Scotland and their related employees will transfer to the new owners. CONTACT: DAWSON INTERNATIONAL Mike Hartley, chairman Phone: 01577 867000 Mobile: 07711 734631 Press Inquiries: Gordon Beattie, Beattie Communications Phone: 07768 588163 EASTERN INSURANCE: Final Shareholders Meeting Set April 16 ---------------------------------------------------------- There will be a Final General Meeting of the Eastern Insurance & Reinsurance Limited Company on April 16, 2004 at 10:15 a.m. It will be held at 180 Strand, London WC2R 1WL. A Shareholder entitled to attend and vote at the Meetings may appoint a proxy. ELECTRA BRANDS: Annual Meeting for Creditors April 15 ----------------------------------------------------- Pursuant to section 93 and 94 of the Insolvency Act 1986, a General Meeting of the Electra Brands Limited Company will be held on April 15, 2004 at 10:00 a.m. It will be held at Deloitte & Touche LLP, 1 City Square, Leeds LS1 2A. The purpose of the Meeting is to disposed of the statement of account for the period of the Liquidation and approves the books, accounts as well as the Company's documents. A Member entitled to attend and vote at the Meeting may appoint a proxy to attend and vote instead of him or her. CONTACT: DELOITTE & TOUCH� LLP 1 City Square, Leeds LS1 2A Contact: A M Martin, Joint Liquidator EXCELL BIOTECH: Intercell Biomedical Acquires Assets ---------------------------------------------------- Joint Receivers, Blair Nimmo and Gary Fraser, from KPMG Corporate Recovery on Tuesday announced the sale of the assets of Excell Biotech Ltd. to Intercell Biomedical Ltd., a subsidiary of Austrian-based Intercell AG, for an undisclosed sum. The sale of Excell, which manufactures and distributes biotechnology products to the pharmaceutical industry, secures 24 local jobs. Intercell AG, Excell's largest customer will use the facility as part of its in-house development programs. Blair Nimmo, head of KPMG Corporate Recovery in Scotland said: "We are happy to report the going concern sale of Excell Biotech to Intercell Biomedical, saving important biotechnology jobs in Scotland." Alexander von Gabain, Intercell's Chief Executive Officer commented: "This acquisition is strategically very important to us as it provides an excellent manufacturing base for our new vaccines. Scotland has a vibrant science community and an excellent reputation for the quality of its research and production which was a big incentive for Intercell to expand its operation to Edinburgh." Excell Biotech, which had turnover of GBP4.4 million at December 2003, was founded in 1997 and bought by Canadian group, Qbiogene S.A. in 2001. Having experienced a period of difficult trading conditions, the business went into receivership on February 5 with the loss of 23 staff. CONTACT: EXCEL BIOTECH Wilma Littlejohn, PR Manager Scotland Phone: 0131 527 6818 Mobile: 07789 922521 E-mail: wilma.littlejohn@kpmg.co.uk FURNISS FOODS: Timely Sale of Business Saves 150 Jobs ----------------------------------------------------- The joint administrative receivers of Redruth-based Furniss Foods Limited announced that a buyer has been secured for the business. A Manchester-based consortium, with the assistance of local funding, has purchased the assets of the company, which manufactures speciality biscuits and other baked products. The sale will result in the transfer of 150 jobs to the company going forward. Ian Connell, for the new owners, said: "Furniss has an outstanding local reputation in the South West, supplying quality products to quality customers, backed by quality suppliers. A committed, loyal and skilled workforce will ensure that Furniss expands into the future." Commenting on the sale, Richard Hill, KPMG Corporate Recovery partner and joint administrative receiver said: "We are pleased to announce the sale of this long-established Cornish company. It is always very satisfying to see a business involved in local manufacturing survive and I wish it every success under its new ownership." Notes to Editors Richard Hill and Brian Green of KPMG Corporate Recovery were appointed joint administrative receivers of Furniss Foods Limited on January 23, 2004. About KPMG KPMG Corporate Recovery has over 500 professional staff in 22 offices around the U.K. and provides two distinct types of service: advice and assistance to insolvent companies and individuals, their creditors, and their other stakeholders (known as Insolvency Services); and restructuring advice to companies who are under performing or experiencing liquidity problems (known as Restructuring Services). CONTACT: KPMG Rachael Halliday, PR manager Phone: 0117 905 4373 Mobile: 07747 102909 E-mail: rachael.halliday@kpmg.co.uk INEX PLC: Liquidator to Present Winding-up Update April 16 ---------------------------------------------------------- A Meeting of the Inex PLC Company will be on April 16, 2004 at 10:15 a.m. It will be held at Sanderlings, Sanderling House, Springbrook Lane, Earlswood, solihull B94 5SG. The purpose of the Meeting is to lay down the account before the Creditors, how the winding-up of the Company has been conducted and how the Company's property was disposed. Proxies to be used at the Meeting must be lodged to A Fender the Liquidator of the Company at Sanderlings, Sanderling House, Springbrook Lane, Earlswood, Solihull B94 5SG, not later than 12:00 noon on or before April 15, 2004. INTERNAL EVENTS: Creditors Meeting Set March 23 ----------------------------------------------- There will be a Creditors Meeting of the Internal Events Limited Company (trading as Firefly) on March 23, 2004 at 2:00 p.m. It will be held at the offices of Hacker Young & Partners, St Alphage House, 2 Fore Street, London EC2Y 5DH. Creditors who wish to be represented at the Meeting must submit the complete proxy form including the details of the claim the Company due them at Hacker Young & Partners, St Alphage House, 2 Fore Street, London EC2Y 5DH not later than 12:00 noon on or before March 22, 2004. Andrew Andronikou and Ladislav Hornan of Hacker & Young are appointed Joint Administrator for the Company. CONTACT: HACKER YOUNG & PARTNERS St Alphage House, 2 Fore Street, London EC2Y 5DH Joint Administrators: Andrew Andronikou Ladislav Hornan JOHN DAVID: Executive Chairman Roger Best Leaves Board ------------------------------------------------------ The John David Group Plc announces that Roger Best resigned as Executive Chairman and as a Director of the Group by mutual agreement. Roger Best was a non-executive Director from January 2002 and then became Executive Chairman in May 2003. During his period as Chairman, Mr. Best, together with management, put in place a plan to return the business to significantly higher profitability and the Group has made progress towards this. John Wardle, non-executive Director, commented, "We thank Roger for his contribution as Executive Chairman and for leading the turnaround during a challenging time for the business." Roger Best is succeeded as Executive Chairman, with immediate effect, by Peter Cowgill who was previously Finance Director of the Group between 1996 and 2001. Peter Cowgill contributed significantly to one of the most successful trading periods in the Group's history. In respect of Peter Cowgill, there are no additional matters to be disclosed pursuant to paragraphs 6.F.2 (b) to (g) of the Listing Rules. Peter Cowgill's first major task will be to lead the Board in considering all strategic options for the Group. As previously reported, the results for the year ended 31 January 2004 will be at the lower end of market expectations. The Group is pleased to report that trading in the first six weeks of the new financial year has been encouraging and in line with the Board's expectations. ***** John David finance director, Malcolm Blackhurst, resigned in October as the company unveiled losses of GBP5.6 million at the half-year. The group denied the exit of Mr. Blackhurst is due to the poor performance of the business. The resignation did not surprise some analysts, according to the Telegraph. One said: "The company has had a pretty torrid 18 months and he has had enough of making poor announcements to the City, although the issue at John David is operational not financial." John David Group made two profit warnings before reporting the GBP5.6 million-loss in the six months to the end of July due to exceptional costs of GBP4.5 million, including a GBP3 million- loss on the disposal of fixed assets. CONTACT: THE JOHN DAVID GROUP PLC Phone: 0161 767 1000 Roger Best (Executive Chairman) HOGARTH PARTNERSHIP LIMITED Phone: 0207 357 9477 Andrew Jaques Tom Leatherbarrow JOHNSON FILTRATION: Final Members Meeting Set April 30 ------------------------------------------------------ There will be a Final Meeting of the Members of the Johnson Filtration Systems Limited Company on April 30, 2004 at 10:30 a.m. It will be held at the offices of Grant Thornton, Byron House, Cambridge Business Park, Cowley road, Cambridge CB4 0WZ. The purpose of the Meeting is to lie down the account before the Creditors how the winding-up of the Company has been conducted and how the Company's property was disposed. A Member entitled to attend and vote at the Meeting may appoint a proxy in his place. It is not necessary for the proxy to be a Member. Proxy forms must be returned to the offices of Grant Thornton, Byron House, Cambridge Business Park, Cowley Road, Cambridge CB4 0WZ, not later than 12:00 noon on or before April 29, 2004. CONTACT: GRANT THORNTON Byron House, Canbridge Business Park, Cowley Road, Cambridge CB4 0WZ Contact: I S Carr, Liquidator Phone: 01223 225600 Fax: 01223 225619 Web site: http://www.grant-thornton.co.uk LOCKER GROUP: Hires Liquidator from Solomon Hare ------------------------------------------------ Name of Companies: Locker Group PLC Locker Holdings Limited Locker Industries (Holdings) Limited Locker Investments Limited Locker Europe Limited Warrington Perforators Limited At an Extraordinary General Meeting of these Companies on March 2, 2004 held at the offices of Cobbetts Solicitors, Ship Canal House, King Street, Manchester, that the Resolutions to wind up these Companies were passed. Mr. Peter W Engel, of Solomon Hare LLP, Oakfield House, Oakfield Grove, Clifton, Bristol BS8 2BN, is appointed Liquidator of these Companies. Creditors must send details in writing of any claim against the Companies to the Liquidator on or before April 2, 2004. No further public advertisement of invitation to prove debts will be given. It should be noted that the Directors of each Company have made a Statutory Declaration that they have made a full inquiry into the affairs of the Companies and that they are of the opinion that the Companies will be able to pay its debts in full within a period of twelve months from the commencement of the winding-up. CONTACT: SOLOMON HARE LLP Oakfield House, Oakfield Grove, Clifton, Bristol BS8 2BN Contact: Mr. Peter W Engel, Liquidator LONGCROFT CONSULTANCY: Final Session Set April 23 ------------------------------------------------- There will be a Final Meeting of the Longcroft Consultancy Limited Company on April 23, 2004 at 11:00 a.m. It will be held at Benedict Mackenzie, 113 Leigh Road, Eastleigh, Hampshire SO50 9DS. The purpose of the Meeting is to lie down the account before the Creditors how the winding-up of the Company has been conducted and how the Company's property was disposed. A Member entitled to attend and vote at the above Meeting may appoint a proxy in his place. Proxy forms must be lodged with the Liquidator at his office at Benedict Mackenzie, 113 Leigh Road, Eastleigh, Hampshire SO50 9DS, not later than 12:00 noon on or before April 22, 2004. MILTON KEYNES: Winding up Resolutions Passed -------------------------------------------- At an Extraordinary General Meeting of the Milton Keynes Process Limited Company on February 27, 2004 held at Kears Group Ltd, Claremont, High Street, Lydney, Gloucestershire GL15 5DX, the subjoined Special Resolutions to wind up the Company were passed. Brian Green and John Paul Bateman, of St James' Square, Manchester M2 6DS, are appointed Joint Liquidators for the purpose of such winding-up of the Company. Contact: Brian Green John Paul Bateman St James' Square, Manchester M2 6DS NETWORK RAIL: MTN Finance PLC First Notes Issue Rated 'AAA' ----------------------------------------------------------- Standard & Poor's Ratings Services said it assigned its 'AAA' long-term senior secured debt rating to the GBP2.25 billion ($4.1 billion) 4.875% notes due March 2009 issued by U.K.-based rail financing company Network Rail MTN Finance PLC (senior secured debt 'AAA'). The issue forms part of Network Rail MTN Finance's GBP10 billion MTN program. Issuance under the program is administered by Network Rail Infrastructure Ltd. The rating on the MTN program is based on the credit enhancement provided by the Strategic Rail Authority (SRA; AAA/Stable/A-1+) and its ability to meet its contractual obligations in a timely manner in all circumstances. It is also based on the value of the SRA facility in the form of a term loan facility, the MTN Support Facility, of up to GBP10 billion and a direct agreement. "A key factor supporting the rating is the SRA's ability to fund potentially significant amounts of maturing notes on a timely basis and outstanding amounts (principal and others) under the program," said Standard & Poor's Infrastructure Finance credit analyst Magdalena Richardson. Network Rail MTN Finance will on lend the proceeds to Network Rail Infrastructure Ltd. Network Rail Infrastructure Ltd will use the funds to refinance GBP7 billion of its GBP9 billion existing debt under its bridge facility and provide funding towards its GBP3 billion of working capital. For full details of the program, see "Postsale: Network Rail MTN Finance PLC", published on March 12, 2004, on RatingsDirect, Standard & Poor's Web-based credit analysis system. RATINGS LIST Network Rail MTN Finance PLC GBP2.25 billion senior secured notes 'AAA' CONTACT: STANDARD AND POORS RATING SERVICES Analyst E-mail Addresses magdalena_richardson@standardandpoors.com craig_jamieson@standardandpoors.com mike_wilkins@standardandpoors.com InfrastructureEurope@standardandpoors.com NETWORK RAIL: Reports Best Third-quarter Performance in Years ------------------------------------------------------------- Following the publication of the SRA's 'Rail Trends', which show a very significant improvement in train punctuality during the final quarter of 2003, Network Rail is pleased to announce its own performance for that period. Network Rail delay minutes reduced by 24% in the final three months of 2003, contributing to the overall improvement in punctuality for rail passengers. Performance for the quarter was the best for four years. Network Rail's efforts mean that delay minutes were at their lowest level for this quarter since before the crash at Hatfield (October 17, 2000). Total delay minutes for October to December 2003 were 3.3 million compared to 4.4 million in the same period the previous year and 7.9 million in 2000. What's more, Network Rail's share of total delays also fell over the three months. The company was responsible for some 46.5% of rail delays, with external factors (suicides, lineside fires, bridge strikes) causing over 6% of delays and the remainder attributable to the train operating companies. Delays per incident, which had risen stubbornly for almost four years, showed a sustained drop, with infrastructure causes down by some 16%. Rail Trends-2 Iain Coucher, Network Rail's Deputy Chief Executive, said: "We said when we took control of the infrastructure that we would deliver tangible improvements in performance within 18 months. There is now irrefutable evidence that we are delivering on that promise. These are the best last quarter figures since before Hatfield, and whilst we realize there is a long way to go, we are starting to deliver significant improvements for passengers." CONTACT: NETWORK RAIL Press Office Phone: 020 7557 8292 / 3 PRATT ELECTRICS: Appoints Administrator from Numerica ----------------------------------------------------- Name of Company: Pratt Electrics Limited Nature of Business: Installation Electrical Wiring etc Trade Classification: 27-Electrical and Plumbing Date of Appointment: March 3, 2004 Joint Administrative Receiver: NUMERICA PO Box 2653, 66 Wigmore Street, London W1A 3RT Receivers: Nicholas Hugh O'Reilly Jonathan Mark Birch (IP Nos 008309 and 005328) ROSEBUD BUSINESS: General Meeting Set April 8 --------------------------------------------- There will be a General Meeting of the Members of the Rosebud Business Solutions Limited Company on April 8, 2004 at 10:15 a.m. It will be held at 1 Gray's Inn Square, Gray's Inn, London WC1R 5AA. The purpose of the Meeting is to lie down the account before the Creditors how the winding-up of the Company has been conducted and how the Company's property was disposed. Members who are entitled to attend and vote at the Meeting may appoint a proxy or proxies to attend and vote on their behalf. SAUNDERS AND GORDON: Creditors Meeting Next Week ------------------------------------------------ There will be a Creditors Meeting of the Saunders and Gordon Sound Studios Limited Company on March 24, 2004 at 2:30 p.m. It will be held at Grange Langham Court Hotel, 31-35 Langham Street, London W1N 5RE. Creditors who wish to vote at the Meeting must submit a written statement of claims the Company due them at Menzies Corporate Restructuring, 17-19 Foley Street, London W1W 6DW not later than 12:00 noon on or before March 23, 2004. P Clark is the Company's Joint Administrative Receiver. CONTACT: MENZIES CORPORATE RESTRUCTURING 17-19 Foley Street, London W1W 6DW Contact: P Clark, Joint Administrative Receiver SEVENOAKS LIMITED: Final Meeting Set April 8 -------------------------------------------- There will be a Final General Meeting of the Members of the Sevenoaks (Retail) Limited Company on April 8, 2004 at 10:00 a.m. It will be held at the offices of the Rothman Pantall & Co, Clarevill House, 26-27 Oxendon Street, London SW1Y 4EP. Any Member entitled to attend and vote at the Meeting is entitled to appoint a proxy. SSL INTERNATIONAL: Sells Wound Management Business to Medlock ------------------------------------------------------------- SSL International plc, the manufacturer and distributor of healthcare products, announced that it has exchanged conditional contracts with a newly formed company, Medlock Medical Limited, which is principally owned by a fund advised by Apax Partners, for the disposal of its wound management business. Completion of the transaction is expected on March 31. Cash proceeds on completion of this disposal will be GBP55 million, GBP5 million being held in escrow pending determination of pre-emption rights granted to Ladenburg BV when the Betadine antiseptics brand was purchased by SSL in the early 1990s. Net cash proceeds will be used to reduce group borrowings. SSL's wound management business is engaged in the manufacture, marketing and sale of wound management products in the areas of compression therapy, dermatology, advanced wound management, antiseptics and orthopaedics. The business holds a number of leading brands, including Tubigrip, Tubifast and Normasol. SSL was advised on the disposal by a team from KPMG Corporate Finance, led by partner Frank Herlihy. Commenting on the disposal, Garry Watts, Group Finance Director from SSL, said, "The sale of the U.K. wound management business takes us a step closer to repositioning SSL as a focused consumer company. KPMG Corporate Finance has been instrumental in achieving this and we have been pleased with the advice and support they have given us in concluding this deal." Frank Herlihy, partner, healthcare and life sciences team at KPMG Corporate Finance, said, "Following on from the recent divestment of the Marigold Industrial gloves business, the sale of the wound management business, famous for the Tubigrip bandage, is a clear indication of SSL's strategy to focus on its consumer division building on its Durex and Scholl brands." The KPMG team comprised partners Frank Herlihy and Bob Bigley, and managers Mark Fowler, Emma Bullock and Nick Dodd. Alison Legg, partner with KPMG Transaction Services, provided vendor due diligence services to SSL. Neal Shepherd and Polly Owen from DLA provided legal advice to SSL, while Graham White from Linklaters advised Apax Partners. CONTACT: KPMG Kate Ryder PR Manager KPMG Corporate Finance Phone: 020 7311 8807 / 07867 536567 E-mail: kate.ryder@kpmg.co.uk TIMBERTEC CONTRACTS: Creditors to Meet March 23 ----------------------------------------------- Pursuant to section 48 of the Insolvency Act 1986 a Creditors Meeting of the Timbertec Contracts Limited Company will be on March 23, 2004 at 10:30 a.m. The get-together will be at the Holiday Inn, Caversham Bridge, Richfield Avenue, Reading RG1 8BD. Creditors who wish to vote at the Meeting must submit a written statement of claim the Company due them at One Bridewell Street, Bristol BS1 2AA not later than 12:00 noon on or before March 22, 2004. A Lovett is the Joint Administrative Receiver of the Company. CONTACT: ERNST & YOUNG LLP One Bridewell Street, Bristol BS1 2AA Contact: A Lovett, Liquidator Phone: +44 [0] 117 981 2050 Fax: +44 [0] 117 981 2051 Web site: http://www.ey.com TRI-THERM LIMITED: Appoints Administrator ----------------------------------------- Name of Company: Tri-Therm (TC) Limited Nature of Business: Refrigeration Engineers Trade Classification: 2-07 Date of Appointment: March 5, 2004 Administrative Receiver: Peter George Byatt (IP No 8277) 82 East Hill, Colchester, Essex CO1 2QW YORK & FORD: Royal Bank of Scotland Names Receivers --------------------------------------------------- Name of Company: York & Ford Paper (Southern) Limited Reg No 01060547 Previous Name of Company: 3P Paper Limited Nature of Business: Paper Manufacturers and Distributors Trade Classification: 21120 Date of Appointment of Administrative Receivers: March 3, 2004 Name of Person Appointing the Administrative Receivers: The Royal Bank of Scotland Invoice Discounting Limited Administrative Receivers: PRICEWATERHOUSECOOPERS LLP Donington Court, Pegasus Business Park, Castle Donington, East Midlands DE74 2UZ Receivers: Stuart David Maddison Robert Jonathan Hunt (Office Holder Nos 1338, 8597) Phone: [44] (1509) 604 000 Fax: [44] (1509) 604 010 Web site: http://www.pwcglobal.com ********* 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 * * *