/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/040414.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, April 14, 2004, Vol. 5, No. 73 Headlines F I N L A N D M-REAL CORPORATION: Adopts Corporate Governance 'Best Practice' F R A N C E RHODIA SA: Working Capital Falls 61%; Drop Surprises Analysts RHODIA SA: Offers Shares, Bonds to Raise EUR1 Bln Fresh Capital I T A L Y ALITALIA: Adopts New Approach in Selling Layoff Plan to Workers ALITALIA: Woes Main Agenda of Ministers' Meeting Tomorrow L U X E M B O U R G STOLT OFFSHORE: Corners US$120 Million North Sea Contracts R U S S I A AGRO-ZAPCHAST: Kursk Court Appoints Insolvency Manager AMUR-ELECTRO: Declared Insolvent BIKINSKY TIMBER: Deadline for Submission of Claims Set June 1 CENTRAL RESEARCH: Succumbs to Bankruptcy KOTLASS AVIATION: Selling Assets for RUB16 Million MAGMA: Magadan Court Confirms State of Insolvency NOVY TORYAL-SELCHOZCHIMIYA: Declared Insolvent PUR-NEFTE-GAZ: Under Bankruptcy Supervision Procedure RAYCHICHINSKY MEAT-PACKING: Proofs of Claim Deadline June 1 RAZINSKY TIMBER: Ordered to Undergo Bankruptcy Procedure RMG COMPANY: Lowers Charter Capital Price ROSTO: Declared Insolvent SANLIT: Creditors Have Until May 5 to File Claims SIB-TEPLO-MASH: Court Hearing Set July 16 U N I T E D K I N G D O M ABELL LIMITED: Shareholders Okay Voluntary Winding-up ADDSPACE HOLDINGS: Bank of Scotland Appoints PwC Receiver ADZ ONLINE: Creditors Meeting Set April 20 ANGLO EUROPEAN: Creditors to Meet April 22 AVG ADVANCED: Meeting of Creditors Set April 27 A-Z BUILDING: Creditors Set Meeting April 20 BEL ALP: Hires Liquidator from Hacker Young and Partners COLTRAN LIMITED: Bank of Scotland Appoints PwC Receiver DART SCAFFOLDING: Calls in Liquidator DOCKWELL DEVELOPMENTS: Appoints Begbies Traynor Liquidator DORSET TRAVEL: Hires Liquidator EAS PRINT: Hires Liquidator from Haslers ELDON CONSTRUCTION: Appoints Bartfields Limited Liquidator EUROTUNNEL SA: Creditors Warn New Board -- Show Results or Else EUROTUNNEL SA: Fitch Affirms Debt Ratings EUROTUNNEL SA: S&P Keeps Ratings on CreditWatch Negative EUROTUNNEL SA: Drill Used in Constructing Tunnel Auctioned GRATONA PROPERTIES: Winding up Resolution Passed J K M ENGINEERING: Shareholders Okay Winding-up of Business MAYFLOWER CORPORATION: Ex-CEO Can't Believe Sudden Twist of Fate M J MITCHELL: Calls in Liquidator VAUXHALL PRESSINGS: Principal Creditor Brings in Receivers ********* ============= F I N L A N D ============= M-REAL CORPORATION: Adopts Corporate Governance 'Best Practice' --------------------------------------------------------------- In accordance with the new Helsinki Exchanges recommendation on Corporate Governance, M-real Corporation's Board of Directors has set up an Audit Committee, a Compensation Committee and a Nomination Committee. Each committee will assist the Board of Directors in preparing matters within its own area of responsibility. The Board has furthermore confirmed written rules of procedure for the committees. The Audit Committee assesses the company's financial reporting and accounting methods as well as financial statement and other financial information published by the company in order to ensure that this information is balanced, transparent and correct. The members of the Audit Committee are Asmo Kalpala (chairman), CEO of Tapiola Group; Kim Gran, President of Nokian Tyres plc; and Erkki Karmila, Executive Vice President of Nordic Investment Bank. The Compensation Committee assists the Board of Directors in matters related to senior management's terms of employment and remuneration. The purpose of the committee is to set guidelines for the senior management's terms of employment and to prepare the company's compensation systems. The members of the Compensation Committee are Antti Oksanen (chairman), President of Metsaliitto Group; Erkki Karmila, Executive Vice President of Nordic Investment Bank; and Arimo Uusitalo, Titular Farming Counsellor. The Nomination Committee prepares the proposal to the Annual General Meeting of the Board of Directors composition. It also prepares matters concerning the Board of Directors remuneration and names candidates for the new slate of directors. The members of the Nomination Committee are Arimo Uusitalo (chairman), Titular Farming Counsellor; Runar Lillandt, Titular Farming Counsellor; and Antti Tanskanen, CEO of the OP Bank Group. The Board of Directors elects the members of the committees from among its number for one year at a time. CONTACT: Jouko M. Jaakkola, President and CEO Phone: +358 10 469 4118 Nina Kuulusa, Vice President, Board Secretary Phone: +358 10 469 4322 =========== F R A N C E =========== RHODIA SA: Working Capital Falls 61%; Drop Surprises Analysts ------------------------------------------------------------- The working capital of French specialty chemicals company, Rhodia S.A., continued to drop in the first quarter, according to Bloomberg News. A combination of debt repayments and higher capital requirements squeezed Rhodia's working capital to EUR300 million, a 61% drop from EUR766 million at the end of 2003. Company spokesman, Jean-Christophe Huertas, says EUR149 million of the amount was used to pay half of Rhodia's US$290 million U.S. private placement and penalties for breaching debt agreements on February 20. Rising capital requirements used up EUR317 million of liquid cash. Rhodia, which has been loss-making for three years and does not expect to become profitable for another two years, has seen its working capital eroded last year. According to Bloomberg, the chemical maker had EUR357 million of working capital on its balance sheet at the end of September 2003, EUR340 million at the end of June and EUR360 million at the end of 2002. The latest drop seriously jeopardizes its planned fundraising to avoid defaulting on debt due as early as this year. The company has hired BNP Paribas S.A., Goldman Sachs Group Inc. and Bear Stearns & Co. to start marketing bonds this week in Paris and London. "This [drop] will be one of the many questions they have to address in presentations to investors [this] week," Bloomberg quoted Gregoire Pesques, who helps oversee more than US$34 billion in debt at SG Asset Management, including Rhodia bonds due in 2005. "There seems to be no reason to explain this sharp decline." Rhodia's 6 percent bonds that mature in 2006 dropped 2.3 percent to 95.5 percent of face value last week, according to Bloomberg. The yield spread with French government debt of a similar maturity widened to 6.48 percentage points from 4.99 Tuesday last week. Rhodia is planning to raise at least EUR1.07 billion by selling shares and bonds to avoid a cash crisis next year. Last week, the company sold shares at a discount to existing investors in hopes of raising at least EUR471 million. It offered existing shareholders one right for every share they hold and two of the preferential subscription rights will allow holders to subscribe for five new shares. The bond issue will account for EUR600 million of the fundraising scheme and will be sold via a private placement in the form of euro- and U.S. dollar-denominated bonds. The company had more than EUR3 billion in debt at the end of last year, including off-balance-sheet liabilities. RHODIA SA: Offers Shares, Bonds to Raise EUR1 Bln Fresh Capital --------------------------------------------------------------- Rhodia S.A. on April 6 launched its capital hike initiative consisting of EUR471 million in preferential subscription rights for existing shareholders and a bond issue worth at least EUR600 million. The rights issue will be subscribed by Aventis, pro rata share to its current 15.3% ownership stake in Rhodia. The remainder is underwritten by a banking syndicate. The issue will allow existing Rhodia shareholders to subscribe for five new shares for each two existing shares, creating an aggregate of 448,272,970 new shares. The subscription price was fixed at EUR1.05 per share. The subscription period will last for two weeks from Tuesday, April 13 to Monday, April 26, 2004 inclusive. The preferential subscription rights will trade only on Euronext Paris during this period. New shares will begin trading on May 7, 2004. The bond issue will be made as an international private placement to institutional investors. The prospectus for the capital increase was filed with the Autorite des marches financiers as No 04-250 on April 6 2004. This prospectus is composed of the Document de reference D.04-0216 of Rhodia Group filed with the Autorite des Marches Financiers on March 8, 2004 and a Note d'Operation, with the following statement: "The Autorite des marches financiers calls attention to (i) the context of the refinancing agreement linked to the Group's indebtedness presented in page 92 and the following and in page 234 and the following of the Document de reference as well as components and consequences of the refinancing agreement comprising notably the related operation and referenced in section 3.1.1, (ii) the other recent events presented in paragraph 3.1.2 and the outlook presented in paragraph 3.2, and (iii) the observations and justification of the auditors presented in paragraph 1.4 among which going concern." Disclaimer This press release does not constitute a public offer to sell securities nor a solicitation of an order to purchase or subscribe to purchase securities in France pursuant to article L. 411-1 of the French Monetary Code. This announcement does not constitute an offer to sell, or a solicitation of offers to purchase or subscribe for, securities in the United States. The securities referred to herein have not been, and will not be, registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This notice is issued pursuant to Rule 135c of the Securities Act of 1933. This communication is for distribution only to persons who (i) are outside the United Kingdom or (ii) have professional experience in matters relating to investments or (iii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc.") of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001, as amended (all such persons together being referred to as "relevant persons"). This communication is only directed at relevant persons and must not be acted on or relied on by persons other than relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons. CONTACT: Anne-Laurence de Villepin, Press Relations Phone: +33 1 55 38 40 25 Nicolas Nerot, Investor Relations Phone: +33 1 55 38 43 08 ========= I T A L Y ========= ALITALIA: Adopts New Approach in Selling Layoff Plan to Workers --------------------------------------------------------------- Alitalia's new director for human resources, Massimo Chieli, is taking a different path in tackling the contentious issue of redundancy, which the carrier must undertake to continue flying. His new strategy hopes to cut the original job losses by 30%, AGI Online said Monday. Based on the original projections of former managing director, Francesco Mengozzi, the redundancies would affect some 1,488 workers assigned in non-core business such as information technology and personnel management. As expected, this layoff scheme, which forms part of the carrier's new industrial plan, met serious resistance from the unions. Mr. Chieli is pursuing a different strategy to make the redundancies easier to swallow. He has proposed a new scheme, one that unions will take part in drafting. "The talks are [now] proceeding quickly and we will start work again straight after Easter to reach an agreement around April 20. We have adopted a radically different approach: Instead of starting from a plan already drawn-up, which anticipated a certain number of redundancies, we preferred to work on how to increase productivity. The redundancies will be quantified according to the agreements that we reach on productivity and flexibility," Mr. Chieli told AGI Online. "In other words the redundancies will be the consequence of the new plan agreed with the unions and not, as happened in the past, the premise of the negotiations. And whatever the sacrifices, they should be divided so as to demonstrate the maximum fairness: directors, pilots, air stewards and group personnel, they should all contribute to a strong growth in productivity. It will be major efficiency and productivity that will make the recovery and development of Alitalia possible," he said. Mr. Chieli did not give a specific figure, but he projected the number of redundancies to drop to 1,200, instead of 1,488 as originally proposed by Mr. Mengozzi. Meanwhile, he emphasized that the layoff plan is not a cure-all solution to Alitalia's woes. "To end this crisis, we must resolve three key elements, those being: a new shared industrial plan, a strong increase in productivity and flexibility, and the intervention of the government to support the whole sector with those measures we have indicated as requirements of the system. And on the subject of employment, the requirements of the system are translated into income support tools [like lay-offs] necessary to manage, without trauma, the eventual redundancies," AGI Online quoted Mr. Chieli. ALITALIA: Woes Main Agenda of Ministers' Meeting Tomorrow --------------------------------------------------------- Key government officials will meet on Thursday to consider measures to help the ailing airline industry, Business Day said Tuesday. Welfare Minister Roberto Maroni told the paper the meeting will be attended by Prime Minister Silvio Berlusconi, Deputy Prime Minister Gianfranco Fini, Economy Minister Giulio Tremonti, Transport Minister Pietro Lunardi and himself. He said the conversation will center on Alitalia, the country's flag carrier that employs 21,000 and is 62.39%-owned by the government. "We will talk about it during the meeting on the 15th and I believe there will be important developments," Business Day quoted Mr. Maroni. "The role of the government is not to await the slow agony of Alitalia." In a separate report, news agency Ansa said the government is considering lowering landing and fuel fees by EUR300-400 million. In addition, it will also help the industry cut 2,000- 2,500 workers -- 1,500 from Alitalia -- by pushing for early retirement and introducing temporary unemployment schemes and training. =================== L U X E M B O U R G =================== STOLT OFFSHORE: Corners US$120 Million North Sea Contracts ---------------------------------------------------------- Stolt Offshore S.A. (Nasdaq: SOSA; Oslo Stock Exchange: STO), announced that it had received contract awards and Letters of Intent totaling approximately US$120 million from various customers operating in the North Sea. In the U.K. sector of the North Sea, BP has awarded Stolt Offshore two contracts totaling US$12.4 million for construction and installation of the gas import/export system for Clair Phase 1 and the tie-in of the Clair oil export and gas import/export pipeline systems. BP has also awarded Stolt Offshore a contract, valued at approximately US$19.3 million, for the design and construction of an 18-inch hot-tap into the 36-inch BP Forties Pipeline System. Stolt Offshore has been issued with a Letter of Intent for the engineering, procurement, installation and commissioning of a 29km 12-inch pipeline system, in the Southern sector of the North Sea. This work is valued at approximately US$31.4 million. A Letter of Intent has also been received from Paladin for the installation of a new 10-inch, 8.5km water injection line between the Montrose and Arbroath platforms in the UKCS. This work is valued at US$9.3 million. The German oil company Wintershall Noordzee B.V. has awarded Stolt Offshore a US$12.5 million contract for the installation of the 8-inch, 13.5km pipeline and services umbilical between the Q5-A subsea completion and the platform at Q8-B in the Dutch sector of the North Sea. In the Norwegian sector of the North Sea, Stolt Offshore has been awarded an US$11.5 million contract from Statoil for installation work on the Aasgard field, and a Letter of Intent for the design, fabrication and installation of a 16-inch gas riser system at the Visund platform, a project valued at US$8.3 million. In addition, Conoco Phillips has contracted the EPIC Joint Venture (a Joint Venture between Stolt Offshore and Subsea 7) for subsea construction work associated with the Ekofisk Area Growth and 2/4 A Pipeline Replacement projects. Stolt Offshore's share of this contract will be approximately US$15.5 million. Oeyvind Mikaelsen, Vice President, Northern Europe and Canada Region of Stolt Offshore, said, "These six contract awards and three Letters of Intent confirm our leading position in the North Sea where we continue our successful delivery of technically demanding, subsea construction projects. Despite its maturity, the North Sea remains a resilient and valuable market for Stolt Offshore." Stolt Offshore is a leading offshore contractor to the oil and gas industry, specializing in technologically sophisticated deepwater engineering, flowline and pipeline lay, construction, inspection and maintenance services. The Company operates in Europe, the Middle East, West Africa, Asia Pacific, and the Americas. CONTACTS: REGISTERED OFFICES 26, rue Louvigny, Luxembourg PRINCIPAL EXECUTIVE OFFICES Stolt Offshore M.S. Ltd. Dolphin House, Windmill Road, Sunbury-on-Thames, Middlesex TW16 7HT England Phone: (+44) (0)1932-773-700 Web site: http://www.stoltoffshore.com STOLT OFFSHORE S.A. Julian Thomson Fiona Harris Phone: (U.K.) +44 1224 718436 Phone: (U.S.) +1 877 603 0267 (toll free) E-mail: julian.thomson@stoltoffshore.com BRUNSWICK GROUP Patrick Handley (UK) / Tim Payne (US) Phone: (U.K.) +44 207 404 5959 Phone: (U.S.) +1 212 333 3810 E-mails: phandley@brunswickgroup.com tpayne@brunswickgroup.com =========== R U S S I A =========== AGRO-ZAPCHAST: Kursk Court Appoints Insolvency Manager ------------------------------------------------------ The Arbitration Court of Kursk region commenced bankruptcy supervision procedure on agriculture spare parts company, OJSC Kursk-Agro-Zapchast. The case is docketed as A35-1239/04. Mrs. Antonina Malysheva (Moscow) has been appointed temporary insolvency manager. Creditors have until May 1, 2004 to submit their proofs of claim to the temporary insolvency manager at: 305000, Russia, Kursk, Radischeva str.25-21. A hearing will take place on July 16, 2004 at the Arbitration Court of Kursk region. CONTACT: AGRO-ZAPCHAST Russia, Kursk, Magistralny prosp.34 Mrs. Antonina Malysheva, temporary insolvency manager 305000, Russia, Kursk, Radischeva str.25-21 Phone: (0712) 56-04-76 AMUR-ELECTRO: Declared Insolvent -------------------------------- The Arbitration Court of Amur region declared electro-device factory, OJSC Amur-Electro-Pribor, insolvent and introduced bankruptcy proceedings on the company. The case is docketed as A04-4442/03-10/119B. Mr. M. Praskov, a member of TP Self- regulated organization of arbitral managers, Sodeystviye, has been appointed insolvency manager. Creditors have until June 1, 2004 to submit their proofs of claim to the insolvency manager at: Russia, Blagoveschensk, Studencheskaya str.34/33. CONTACT: AMUR-ELECTRO-PRIBOR Russia, Blagoveschensk, Zavodskaya str.154 Mr. M. Praskov, insolvency manager Russia, Blagoveschensk, Studencheskaya str.34/33 BIKINSKY TIMBER: Deadline for Submission of Claims Set June 1 ------------------------------------------------------------- The Arbitration Court of Kchabarovsk region declared state enterprise, Bikinsky Timber-Converting Factory, insolvent and introduced bankruptcy proceedings on the company. The case is docketed as A73-5602/2003-9. Mr. Konstan Podskrebyshev, a member of TP Self-regulated organization of arbitral managers, has been appointed insolvency manager. Creditors have until June 1, 2004 to submit their proofs of claim to the insolvency manager at: Russia, Kchabarovsk region, Bikin, Zavodskaya str.1. CONTACT: Mr. Konstan Podskrebyshev, insolvency manager Russia, Kchabarovsk region, Bikin, Zavodskaya str.1 CENTRAL RESEARCH: Succumbs to Bankruptcy ---------------------------------------- The Arbitration Court of Saint-Petersburg and Leningrad region has commenced bankruptcy supervision procedure on federal state unitary enterprise, The Central Research Diesel Institute. The case is docketed as A56-1012/04. Mr. Andrey Zech has been appointed temporary insolvency manager. Creditors have until May 1, 2004 to submit their proofs of claim to the temporary insolvency manager at: 199053, Russia, Saint- Petersburg, 1st Line of Vasilyevsky Ostrov, 48/30. A hearing will take place on June 21, 2004, 11:00 a.m. at the Arbitration Court of Saint-Petersburg and Leningrad region. CONTACT: THE CENTRAL RESEARCH DIESEL INSTITUTE 196158, Russia, Saint-Petersburg, Moscowskoye shosse, 25, corp.1 Mr. Andrey Zech, temporary insolvency manager 199053, Russia, Saint-Petersburg, 1st Line of Vasilyevsky Ostrov, 48/30, Phone/Fax: (812) 323-6308 KOTLASS AVIATION: Selling Assets for RUB16 Million -------------------------------------------------- The Kotlass Aviation Enterprise will have a public auction on May 5, 2004, 10:00 a.m. at the Archangelsk region, Kotlass, Airport, Main office. The starting is set at RUB16,000,000, inclusive of VAT. Price will be increased by increments of RUB200,000. Interested parties must submit documents together with an initial deposit worth 20% of the starting bidding price to Kotlass Aviation Enterprise account not later than 3:00 p.m., April 30, 2004. CONTACT: KOTLASS AVIATION ENTERPRISE Russia, Archangelsk region, Kotlass, Airport MAGMA: Magadan Court Confirms State of Insolvency ------------------------------------------------- The Arbitration Court of Magadan region declared OJSC Airline Magma insolvent and introduced bankruptcy proceedings on the company. The case is docketed as A37-2072B/03-6/8. Mr. A. Terlyakov, a member of TP Self-regulated organization of arbitral managers, has been appointed insolvency manager. Creditors have until June 1, 2004 to submit their proofs of claim to the insolvency manager at: (685000, Russia, Magadan, Main Post Office, Post User Box 58) and to the Arbitration Court of Magadan region (685000, Russia, Magadan, K. Marks str.62). CONTACT: MAGMA 685018, Russia, Magadan, 56 km Mr. A. Terlyakov, insolvency manager 685000, Russia, Magadan, Main Post Office, Post User Box 58 Arbitration Court of Magadan region 685000, Russia, Magadan, K. Marks str.62 NOVY TORYAL-SELCHOZCHIMIYA: Declared Insolvent ---------------------------------------------- The Arbitration Court of Republic of Mary-El declared agriculture chemical company, Novy Toryal-Selchozchimiya, insolvent and introduced bankruptcy proceedings on the factory. The case is docketed as A38-11/25-03. Mr. Shamil Minkin, a member of TP Privolzhskaya' self-regulated organization of arbitral managers, has been appointed insolvency manager. Creditors have until June 1, 2004 to submit their proofs of claim to the insolvency manager at: 424015, Russia, Republic of Mary-El, Lenin prosp.40. CONTACT: NOVY TORYAL-SELCHOZCHIMIYA 425430, Russia, Republic of Mary-El, Novy Toryal, Kochoznaya str.61 Mr. Shamil Minkin, insolvency manager 424015, Russia, Republic of Mary-El, Lenin prosp.40 Phone: (8362) 12-64-31 Fax: (8362) 12-95-65 PUR-NEFTE-GAZ: Under Bankruptcy Supervision Procedure ----------------------------------------------------- The Arbitration Court of Yamalo-Nenezky autonomous region commenced bankruptcy supervision procedure on OJSC chisel company, Pur-Nefte-Gaz-Geologiya. The case is docketed as A81- 719/1690b-04. Mr. Vladimir Naumov has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to the temporary insolvency manager at: 101000, Russia, Moscow, Mospochtamt, Post User Box 433. A hearing will take place on June 28, 2004, 9:00 a.m. at the Arbitration Court of Yamalo- Nenezky autonomous region. CONTACT: PUR-NEFTE-GAZ-GEOLOGIYA 629850, Russia, Tymen region, Yamalo-Nenezky autonomous region, Purovsky Area, Tarko-Sale, Geologov str.6 Mr. Vladimir Naumov, temporary insolvency manager 101000, Russia, Moscow, Mospochtamt, Post User Box 433 Phone: (095) 937-66-86 RAYCHICHINSKY MEAT-PACKING: Proofs of Claim Deadline June 1 ----------------------------------------------------------- The Arbitration Court of Amur region declared OJSC Raychichinsky Meat-Packing Plant insolvent and introduced bankruptcy proceedings on the company. The case is docketed as A04-673/04- 10/43. Mr. V. Kchabarov, a member of TP Self-regulated organization of arbitral managers, Sodeystviye, has been appointed insolvency manager. Creditors have until June 1, 2004 to submit their proofs of claim to the insolvency manager at: Russia, Amur region, Blagoveschensk, Lenin str.189. CONTACT: Mr. V. Kchabarov, insolvency manager Russia, Amur region, Blagoveschensk, Lenin str.189 RAZINSKY TIMBER: Ordered to Undergo Bankruptcy Procedure -------------------------------------------------------- The Arbitration Court of Nizhny-Novgorod region commenced bankruptcy supervision procedure on OJSC Razinsky Timber- Converting Factory. The case is docketed as A43-3062/04-33-71. Mr. Vyacheslav Samsonov, a member of TP Self-regulated organization of arbitral managers, DELO, has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to the insolvency manager at: 603029, Russia, Nizhny-Novgorod region, Pamirskaya str.11. CONTACT: RAZINSKY TIMBER-CONVERTING FACTORY 607830, Nizhny-Novgorod region, Lukoyanovsky Area, Stepan Razin, Zheleznodorozhnaya str.11 Mr. Vyacheslav Samsonov, insolvency manager 603029, Russia, Nizhny-Novgorod region, Pamirskaya str.11 RMG COMPANY: Lowers Charter Capital Price ----------------------------------------- Notice is given to all Creditors of the LLC RMG Company that on March 30, 2004 the establishment has made the decision to reduce its charter capital price to RUB5,215,412,000 (US$182,997,000). CONTACT: RMG COMPANY 107031, Russia, Moscow, Petrovka str.17, build.1 ROSTO: Declared Insolvent ------------------------- The Arbitration Court of Kchabarovsk region declared Noudo Komsomolsk-Na-Amure Otsh Rosto insolvent and introduced bankruptcy proceedings on the company. The case is docketed as A73-9815/2001-23B. Mr. Konstantin Poskpebyshev, a member of TP Russian Self-regulated organization of arbitral managers in Far East Federal District, has been appointed insolvency manager. Creditors have until June 1, 2004 to submit their proofs of claim to the insolvency manager at: 681000, Russia, Kchabarovsk region, Komsomolsk-na-Amure, Kirov str.2. CONTACT: ROSTO 681000, Russia, Kchabarovsk region, Komsomolsk-na-Amure, Kirov str.2 Mr. Konstantin Poskpebyshev, insolvency manager 681000, Russia, Kchabarovsk region, Komsomolsk-na-Amure, Kirov str.2 SANLIT: Creditors Have Until May 5 to File Claims ------------------------------------------------- The Arbitration Court of Saint-Petersburg and Leningrad region declared OJSC Sanlit insolvent and introduced bankruptcy proceedings on the company. The case is docketed as A56- 16447/03. Mr. Alexandr Polyakov has been appointed insolvency manager. Creditors have until May 5, 2004 to submit their proofs of claim to the insolvency manager at: 196655, Russia, Saint-Petersburg, Kolpino, Severnaya str.12. CONTACT: SANLIT 196655, Russia, Saint-Petersburg, Kolpino, Severnaya str.12 Mr. Alexandr Polyakov, insolvency manager 196655, Russia, Saint-Petersburg, Kolpino, Severnaya str.12 SIB-TEPLO-MASH: Court Hearing Set July 16 ----------------------------------------- The Arbitration Court of Irkutsk region commenced bankruptcy supervision procedure on power company, OJSC Sib-Teplo-Mash. The case is docketed as A19-3604/04-37. Mr. Alexandr Sarkisov has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to the temporary insolvency manager at: 196084, Russia, Saint- Petersburg, Post User Box 241. A hearing will take place on July 16, 2004, 10:30 a.m. at the Arbitration Court of Irkutsk region. CONTACT: SIB-TEPLO-MASH 665703, Russia, Irkutsk region, Bratsk-3 Mr. Alexandr Sarkisov, temporary insolvency manager 196084, Russia, Saint-Petersburg, Post User Box 241 Arbitration Court of Irkutsk region 664025, Russia, Irkutsk, Gagarin bulvar 70, hall 305a =========================== U N I T E D K I N G D O M =========================== ABELL LIMITED: Shareholders Okay Voluntary Winding-up ----------------------------------------------------- At an Extraordinary General Meeting of the Members of the Abell Bros. (Contracts) Limited Company on March 31, 2004 held at Baker Tilly City Plaza, Temple Row, Birmingham B2 5AF, the Special Resolutions to wind up the Company were passed. Richard Paul Rendle and Guy Edward Brooke Mander of Baker Tilly, City Plaza, Temple Row, Birmingham B2 5AF have been appointed as Joint Liquidators for the purpose of such winding-up. CONTACT: BAKER TILLY City Plaza, Temple Row, Birmingham B2 5AF Contact: Richard Paul Rendle, Liquidator Guy Edward Brooke Mander, Liquidator ADDSPACE HOLDINGS: Bank of Scotland Appoints PwC Receiver --------------------------------------------------------- Name of Company: Addspace Holdings Limited Reg No 04132537 Previous Name of Company: Law 2246 Limited Nature of Business: Holding Company Trade Classification: 09 Manufacturer of Timber and Furniture Date of Appointment of Joint Administrative Receivers: March 30, 2004 Name of Person Appointing the Joint Administrative Receivers: Bank of Scotland Joint Administrative Receivers: PRICEWATERHOUSECOOPERS LLP Benson House, 33 Wellington Street, Leeds LS1 4JP Receivers: Ian David Green Toby Scott Underwood (Office Holder Nos 9045, 9270) ADZ ONLINE: Creditors Meeting Set April 20 ------------------------------------------ There will be a Creditors Meeting of the Adz Online Limited Company on April 20, 2004 at 3:00 p.m. It will be held at Langley House, Park Road, East Finchley, London N2 8EX. Creditors who wish to vote at the Meeting must submit written details of their debt claims at Langley & Partners, Langley House, Park Road, East Finchley, London N2 8EX not later than 12:00 noon April 19, 2004. CONTACT: LANGLEY & PARTNERS Langley House, Park Road, East Finchley, London N2 8EX ANGLO EUROPEAN: Creditors to Meet April 22 ------------------------------------------ There will be a Creditors Meeting of the Anglo European Catering Equipment Limited Company on April 22, 2004 at 10:30 a.m. It will be held at Carter Clark, Meridian House, 62 Station Road, North Chingford, London E4 7BA. Creditors who wish to be represented at the Meeting may appoint proxies. Proxy forms should be submitted together with written details of the debt claims at Meridian House, 62 Station Road, North Chingford, London E4 7BA not later than 12:00 noon April 21, 2004. AVG ADVANCED: Meeting of Creditors Set April 27 ----------------------------------------------- There will be a Creditors Meeting of the AVG Advanced Gas Services Limited Company on April 27, 2004 at 11:15 a.m. It will be held at Sussex House, 8-10 Homesdale Road, Bromley, Kent BR2 9LZ. A list of names and addresses of the Company's Creditors will be available for inspection free of charge at Sussex House, 8-10 Homesdale Road, Bromley, Kent BR2 9LZ on April 25 and 26, 2004 A-Z BUILDING: Creditors Set Meeting April 20 -------------------------------------------- Pursuant to section 98 of the Insolvency Act 1986, a Meeting of the Creditors of A-Z Building Solutions Limited Company will be on April 20, 2004 at 2:30 p.m. It will be held at 30 Reading Road South, Fleet, Hampshire GU52 7QL. Creditors who want to vote at the Meeting must submit written debt claims at the offices of Rendell Thompson, 30 Reading Road South, Fleet, Hampshire GU52 7QL not later than 12:00 noon April 19, 2004. BEL ALP: Hires Liquidator from Hacker Young and Partners -------------------------------------------------------- At an Extraordinary General Meeting of the Members of the Bel Alp Hotel Limited Company on March 31, 2004 held at the offices of Hacker Young and Partners, St James Building, 79 Oxford Street, Manchester M1 6HT, the Extraordinary and Special Resolutions to wind up the Company were passed. R E C Cook of Hacker Young and Partners, St James Building, 79 Oxford Street, Manchester M1 6HT has been appointed as Liquidator of the Company for the purpose of such winding-up. CONTACT: HACKER YOUNG AND PARTNERS St James Building, 79 Oxford Street, Manchester M1 6HT Contact: R E C Cook, Liquidator COLTRAN LIMITED: Bank of Scotland Appoints PwC Receiver ------------------------------------------------------- Name of Company: Coltran Limited Reg No 00538942 Nature of Business: Manufacturer of Other Furniture Trade Classification: 09 Manufacturer of Timber and Furniture Date of Appointment of Joint Administrative Receivers: March 30, 2004 Name of Person Appointing the Joint Administrative Receivers: Bank of Scotland Joint Administrative Receivers: PRICEWATERHOUSECOOPERS LLP Benson House, 33 Wellington Street, Leeds LS1 4JP Receivers: Ian D Green Toby Scott Underwood (Office Holder Nos 9045, 9270) DART SCAFFOLDING: Calls in Liquidator ------------------------------------- At an Extraordinary General Meeting of the Dart Scaffolding Limited Company on April 1, 2004 held at Trad House, Pelican Wharf, Imperial Street, London E3 3ED, the Special and Ordinary Resolutions to wind up the Company were passed. Richard A J Hooper of Haslers, Johnston House, 8 Johnston Road, Woodford Green, Essex IG8 0XA has been appointed Liquidator of the Company. CONTACT: HASLERS Johnston House, 8 Johnston Road, Woodford Green, Essex IG8 0XA Contact: Richard A J Hoopers, Liquidator DOCKWELL DEVELOPMENTS: Appoints Begbies Traynor Liquidator ---------------------------------------------------------- At an Extraordinary General Meeting of the Dockwell Developments Limited Company on March 29, 2004 held at The Bonnington Hotel, 92 Southampton Row, London WC1B 4BH, the subjoined Special Resolution to wind up the Company was passed. David Paul Hudson of Begbies Traynor, The Old Exchange, 234 Southchurch Road, Southend-on-Sea, Essex SS1 2EG has been appointed Liquidator for the purpose of such winding-up. CONTACT: BEGBIES TRAYNOR The Old Exchange, 234 Southchurch Road, South-on-Sea, Essex SS1 2EG Contact: David Paul Hudson, Liquidator DORSET TRAVEL: Hires Liquidator ------------------------------- At an Extraordinary General Meeting of the Dorset Travel Services Limited Company on March 22, 2004 held at Mallard Road, Bournemouth, Dorset BH8 9PN, the subjoined Resolution to wind up the Company was passed. Iain John Allan of Smith & Williamson Limited has been appointed Liquidator of the Company for the purpose of such winding-up. EAS PRINT: Hires Liquidator from Haslers ---------------------------------------- At an Extraordinary General Meeting of the EAS Print Technologies Limited Company on April 1, 2004 held at Johnston House, 8 Johnston Road, Woodford Green, Essex IG8 0XA, the Special and Ordinary Resolutions to wind up the Company were passed. Richard A J Hooper of Haslers, Johnston House, 8 Johnston Road, Woodford Green, Essex IG8 0XA has been appointed Liquidator of the Company. CONTACT: HASLERS Johnston House, 8 Johnston Road, Woodford Green, Essex IG8 0XA Contact: Richard A J Hooper, Liquidator ELDON CONSTRUCTION: Appoints Bartfields Limited Liquidator ---------------------------------------------------------- At an Extraordinary General Meeting of the Eldon Construction Limited Company on April 13, 2004 held at 3 Owlet Grange, Hamsterley Mill, Rowlands Gill, Tyne and Wear NE39 1BH, the subjoined Special Resolution to wind up the Company was passed. Gerald Maurice Krasner of Bartfields (UK) Limited, Burley House, 12 Clarendon Road, Leeds LS2 9NF has been appointed Liquidator for the purpose of such winding-up. CONTACT: BARTFIELDS (U.K.) LIMITED Burley House, 12 Clarendon Road, Leeds LS2 9NF Contact: Gerald Maurice Krasner, Liquidator EUROTUNNEL SA: Creditors Warn New Board -- Show Results or Else --------------------------------------------------------------- After taking over management of Eurotunnel S.A. last week, the new directors are now facing an ultimatum: Show results in three months. This deadline was set by creditors, not the shareholders who masterminded the coup that successfully sacked the entire board at the AGM Wednesday. Expatica.com says an ad-hoc committee of Eurotunnel creditors is ready to take over operations should the current board fail. James Vaux, a managing director at Rothschild, an investment bank appointed to advise the lenders, told the news portal this committee holds a significant proportion of the channel operator's debt. "We are watching the performance very carefully," one unnamed banker was quoted by the Sunday Telegraph, according to Expatica.com. "This is a seriously dangerous piece of kit and if there is the slightest hint that it is not being run correctly then the creditors will step in." Eurotunnel's lenders include HSBC, the European Investment Bank and Merrill Lynch. They will meet the new directors this week for the first time. The new management team is headed by Jacques Maillot, former chairman of French tour operator Nouvelles Frontieres. Pierre Cardo, a lawmaker for the French ruling right-wing UMP party, is also one of the new directors. "Enforcement of security is something we won't do lightly because none of the banks particularly wants to end up running a tunnel," another banker told the Sunday Telegraph. "What has changed is that before Eurotunnel had a management team that was talking the same language as us, but the new board hasn't got a plan. And unless they change their spots they are not people we can do business with." Eurotunnel's debt is estimated to reach EUR9 billion (US$11 billion). EUROTUNNEL SA: Fitch Affirms Debt Ratings ----------------------------------------- Fitch Ratings said on April 8 the French rebel shareholders' successful vote on April 7 to change Eurotunnel's management board has no immediate impact on the ratings of Eurotunnel- related debt instruments, whose ratings are affirmed. "This is a Pyrrhic victory for the Eurotunnel shareholders. If necessary, and at the first opportunity, Eurotunnel's debt holders will take up their right to put in place different management that will focus on servicing its debt to the detriment of equity," said John Hatton, a Managing Director of Corporate Finance at Fitch Ratings. "At this stage, Eurotunnel debt creditors have to wait and see, after the new management is better informed, whether they will proceed with their vote- winning intentions or conclude that the previous management's strategy was, indeed, the best under the circumstances." Eurotunnel shareholders have replaced the management, which they thought was too debt-focused. New management will find a planeload of financing documentation which conditions the company into remunerating its debtholders first and equity last, in line with standard capital structures. There is also a spectrum of debt and hybrid instruments totaling a nominal value of GBP6.5 billion before one arrives at the bottom of the pile to find equity. Just as shareholders have catapulted in their preferred management, through Eurotunnel's financing documents its debt creditors have the ability to supersede this management with a mechanism called "Substitution" whereby, upon an designated event of default, entities already in existence for this purpose can take control of running the business and cash receipts will be used foremost for debt service. It is acknowledged that Substitution is untested and has a few hoops to get through, but it was specifically set-up to fulfill this purpose. If new management pulls the trigger of an event of default, either because interest on certain tiers of debt is not paid or because sufficient creditors find a reason to call one, the Substitution mechanism can be enacted. If not forced before - and various debtholders (and alliances thereof) can hasten the process - one key date for a possible payment default is as far away as 2007 when debt amortizations become burdensome, cash reserves may be exhausted, and changes under the existing rail usage contract are expected to reduce profit considerably. Upon Substitution, a different cash waterfall for Eurotunnel's tiers of debt would operate. It cannot be assumed that the new management will deliberately stop servicing Eurotunnel's main debt. After it has realized the nuances of Eurotunnel's financing arrangements, including the value locked-up in FLF1 (for example), and assuming that these contractual agreements are honored by the relevant jurisdictions, it may well change its initial strategies which would be likely to result in debt creditors taking control of the company to the immediate detriment of shareholders. Indeed, it is extraordinary that this had not been realized before. If management has a strategy that improves profits for the group, then both debt and equity can reap, and will probably be asked to share, the benefits. Fitch affirms the ratings of the various Eurotunnel-related FLF1 and FLF2 financings as per its rating action commentary of 23 February 2004. Until the details of a restructuring of Eurotunnel's debt are known, further rating action would be premature. The Eurotunnel-related instruments include the unwrapped tranches of debt issued by Fixed-Link Finance B.V. (FLF1): GBP200m Class A1 notes due 2025 - 'BBB'; EUR103m Class A2 notes due 2025 - 'BBB'; GBP0.05m Class B1 notes due 2025 - 'BB'; EUR135m Class B2 notes due 2025 - 'BB'; EUR142m Class C2 notes due 2025 - 'B+' and the MBIA-wrapped GBP232m Class G1 notes due 2025 and EUR365 million Class G2 notes due 2025 rated 'AAA'. Fitch's undisclosed ratings of Eurotunnel's underlying junior debt (Tier 1, Tier 2 and Tier 3) form the collateral for the FLF1 notes. Fixed-Link Finance 2 B.V.'s (FLF2) unwrapped GBP120 million Class A notes due 2026 are rated 'BBB-' (BBB minus), and the GBP620m guaranteed notes due 2027/28 (wrapped by MBIA) are rated 'AAA'. CONTACT: MEDIA RELATIONS Alex Clelland (London) Phone: +44 20 7862 4084 EUROTUNNEL SA: S&P Keeps Ratings on CreditWatch Negative -------------------------------------------------------- Standard & Poor's Ratings Services said its senior secured debt ratings on Eurotunnel S.A., as well as on related non-guaranteed Fixed-Link Finance's (FLF) Class A, B, and C notes and non- guaranteed FLF 2 notes, remain on CreditWatch with negative implications following Wednesday's vote by a majority of shareholders to change management. The ratings had been placed on CreditWatch on February 9, 2004, following the announcement of unspecified debt restructuring and concerns over intensifying competition in the cross-Channel market. Eurotunnel manages the Channel Tunnel link between the U.K. and France. It provides access for rail passenger and freight services and operates its own truck-, car- and coach-shuttle service. The company's GBP231 million Senior Secured Bank Loan is rated 'A-', while GBP740 million of FLF2 notes (of which the GBP120 million non-guaranteed) are rated 'BBB-'. The structured FLF notes, however, are part of a special purpose vehicle that owns part of Eurotunnel's junior debt. Eurotunnel had GBP6.4 billion total debt at year-end 2003. The CreditWatch placement will be resolved after Standard & Poor's has discussed Eurotunnel's future strategy for improving its underlying business fundamentals with the new management, and has ascertained management's stance towards debt restructuring. It is possible that all rated debt could be downgraded, should the risk of non-timely payment increase as a result of the debt restructuring discussions. "The appointment of the new management has increased the unpredictability of upcoming debt restructuring and has added uncertainty and delays to Eurotunnel's strategic direction. In Standard & Poor's view, the new management is likely to take a more aggressive stance towards creditors in the forthcoming debt restructuring discussions," said Standard & Poor's credit analyst Karl Nietvelt. The heightened risk of confrontation with creditors could ultimately lead to the latter taking control of operations through their substitution rights. Management's intention to improve operating results either through cost efficiencies or by raising tariffs could be challenging. In Standard & Poor's view, there is very limited scope for either, as Eurotunnel's operating base consists largely of fixed costs, while tariff increases are very difficult to implement in light of the highly competitive operating environment. Negotiations on debt restructuring have yet to start. No information is available at this stage as to what debt could be affected, although Standard & Poor's expects that write-offs would first be taken on Eurotunnel's subordinate debt instruments and potentially part of junior Tier 3 debt. Any non-payment or partial write-off on any debt tranche would result in the rating on the debt concerned being lowered to 'D', or default. Debt restructuring could be a lengthy process, and of more immediate concern to Standard & Poor's is the intensified competition in the cross-Channel market from ferry companies and resulting price pressures. The risk of any further material weakening of operating performance, future liquidity, and cash flows may be reassessed after first-quarter 2004 results are known. CONTACT: STANDARD AND POORS RATING SERVICES Analyst E-mail Addresses karl_nietvelt@standardandpoors.com magdalena_richardson@standardandpoors.com jan-willem_plantagie@standardandpoors.com InfrastructureFinanceEurope@standardandpoors.com EUROTUNNEL SA: Drill Used in Constructing Tunnel Auctioned ---------------------------------------------------------- The auction of the boring machine used to construct the Channel Tunnel finally went to the highest bidder on Monday after encountering a minor glitch last week. E-bay, the online auction portal, on Sunday had to remove or cancel all but 59 offers after receiving hoax bids of up to GBP10 million, BBC News says. The 580-ton drill that "removed a half million cubic meters of chalk and soil in creating the Eurotunnel route" went for GBP39,999 to a bidder using the name steddenem, BBC says. The auction closed on Monday at 1715 BST with a total number of 65 bids. The money raised will be shared between three charities chosen by staff from Eurotunnel S.A., the company that operates the underground rail link. The charities are MacMillan Nurses, Demelza House Hospice and Pilgrim's Hospice. Promotional aids called the drill "a prized relic from the greatest construction achievement of the 20th century." GRATONA PROPERTIES: Winding up Resolution Passed ------------------------------------------------ At an Extraordinary General Meeting of the Members of the Gratona Properties Limited Company on March 31, 2004 held at 58- 60 Berners Street, London W1T 3JS, the Special Resolution to wind up the Company was passed. Leslie Serlui of 58-60 Berners Street, London W1T 3JS has been appointed Liquidator for the purpose of such winding-up. J K M ENGINEERING: Shareholders Okay Winding-up of Business ----------------------------------------------------------- At an Extraordinary General Meeting of the Members of the J K M Engineering Limited Company on March 31, 2004 held at 35 Westgate, Huddersfield HD1 1PA, the Special Resolution to wind up the Company was passed. Andrew Hartley Wilkinson of Wilkinson & Co, 68 Thorpe Lane, Almondbury, Huddersfield HD5 8UF has been appointed Liquidator of the Company for the purpose of the voluntary winding-up. CONTACT: WILKINSON & CO 68 Thorpe Lane, Almondbury, Hudersfield HD5 8UF Contact: Andrew Hartley Wilkinson, Liquidator MAYFLOWER CORPORATION: Ex-CEO Can't Believe Sudden Twist of Fate ---------------------------------------------------------------- After 30 years in the business of bus-making, the former chief executive of Mayflower Corporation now greatly regrets the company's fall. John Simpson, who built the company to what it is now, remains shocked at the firm's sudden demise. Mayflower was placed in administration by end of March after the bosses failed to find a solution to its financial crisis. It hired Deloitte & Touche as administrator. According to Mr. Simpson, he still does not know the condition of the company's finances as well as its pension schemes for employees, which he believes are under-funded. He said most schemes were under- funded at different times, but that this did not mean they were under-funded when the time came for pensions to be collected. Mayflower, which made single- and double-decker buses used on routes in London and across the U.K., has been in the business for 30 years and has 5,600 employees worldwide. M J MITCHELL: Calls in Liquidator --------------------------------- At an Extraordinary General Meeting of the M J Mitchell Limited Company on March 23, 2004 held at Burr Sugden, 25 Devonshire Street, Keighley BD21 2BQ, the Special Resolution to wind up the Company was passed. Mark N Ranson of Horwath Clark Whitehill (Yorkshire) LLP, North Lane House, 9B North Lane, Headingley, Leeds LS6 3HG has been appointed Liquidator of the Company for the purpose of the voluntary winding-up. CONTACT: HORWATH CLARK WHITEHALL (YORKSHIRE) LLP North Lane House, 9B North Lane, Headingley, Leeds LS6 3HG Contact: Mark N Ranson, Liquidator VAUXHALL PRESSINGS: Principal Creditor Brings in Receivers ---------------------------------------------------------- Name of Company: Vauxhall Pressings Limited Reg No 04395245 Nature of Business: Manufacturer of Motor Vehicle and Engine Parts Trade Classification: 3430 Date of Appointment of Joint Administrative Receivers: April 1, 2004 Name of Person Appointing the Joint Administrative Receivers: Industrial & Corporate Finance Limited Type of Security: Fixed and Floating Charge over the assets of the Company Date of Security: May 20, 2004 Joint Administrative Receivers: KROLL LIMITED 5th Floor, Airedale House, 77 Albion Street, Leeds LS1 5AP Receivers: N A Brackenbury M J Moore (Office Holder Nos 8269, 5562) ********* 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 * * *