/raid1/www/Hosts/bankrupt/TCREUR_Public/040423.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
Friday, April 23, 2004, Vol. 5, No. 80
Headlines
D E N M A R K
MAERSK AIR: Significant Write-downs Plunge Carrier into Red
F R A N C E
VIVENDI UNIVERSAL: Settles Dispute with InterActiveCorp
G E R M A N Y
COGNIS GMBH: Raising EUR750 Million from Capital Markets
COGNIS GMBH: Gets 'BB-', Stable Outlook for Refinancing Plan
JENOPTIK AG: Absorbs EUR25.8 Million Net Loss for 2003
JENOPTIK AG: On CreditWatch Negative Due to Dismal Results
H U N G A R Y
PARMALAT HUNGARIA: Obtains HUF500 Million Financing
I R E L A N D
ELAN CORPORATION: Grants Roche License to NanoCrystal Technology
ELAN CORPORATION: To Give Update at Morgan Stanley Conference
I T A L Y
COSAL: Labor Representative to Meet Bankruptcy Trustee April 27
PARMALAT FINANZIARIA: Still Accepting Proofs of Claim
PARMALAT FINANZIARIA: Football Club Seeks Creditor Protection
L U X E M B O U R G
STOLT OFFSHORE: Completes Debt for Equity Swap
N E T H E R L A N D S
ASML N.V.: Books Second Successive Quarterly Profit
HAGEMEYER N.V.: Names R.W.A. de Becker Management Board Chairman
ROYAL SHELL: Fitch Lowers Senior Unsecured Rating to 'AA+'
P O L A N D
KOMPANIA WEGLOWA: Posts PLN38.9 Million First-quarter Profit
R U S S I A
CHERTINSKAYA MINE: Insolvent Status Confirmed
ISKOZH: Deadline for Proofs of Claim May 27
NEVA-CITY: Saint-Petersburg Court Appoints Insolvency Manager
OAO GAZPROM: Fitch Retains 'BB' Rating, Stable Outlook
PRIKAMSKOYE: Declared Insolvent
REM-SEL-STORY: Proofs of Claim Deadline June 8
SEVER-SYNTHESIS: Vologda Court Commences Bankruptcy Proceedings
SHEREGESHSKOYE MINE: Court Appoints Insolvency Manager
SPEZIALIZIROVANNOYE UPRAVLENIYE: Insolvent Status Confirmed
TOROPOVSKY: Bankruptcy Proceeding Begins
URAL METAL: Declared Bankrupt
S W I T Z E R L A N D
ABB LTD.: To Modify $968 Million Convertible Bond
ADECCO SA: Senior Unsecured Rating Downgraded to Ba1
U K R A I N E
AGROHIM: Court Appoints Liquidator
HLIBOROB UKRAINI: Declared Insolvent
LEBEDINSKI RAJSPOZHIVSPILKA: Insolvent Status Confirmed
ORSILMASH: Under Bankruptcy Supervision Procedure
SHID: Under Bankruptcy Supervision Procedure
SIGMA-FENIKS: Declared Insolvent
ZALIZOBETONNIH KONSTRUKTSIJ: Under Bankruptcy Supervision
U N I T E D K I N G D O M
A1 CONSULTANTS: Creditors Meeting Set April 27
ABACUS MAINTENANCE: Creditors to Meet Next Week
ABERDEEN ASSET: Sends Circulars on Property Investment Arm Sale
ACORNCLIFF LIMITED: Winding up Resolutions Passed
CORUS GROUP: Russian Shareholder Drops Board Shake-up Plan
EGG PLC: Narrows First-quarter Pre-tax Loss to GBP4.9 Million
ESTABLISHED HOLDINGS: Hires David Rubin & Partners Liquidator
FELLOWS PLANT: Creditors Meeting Set April 28
FIZZ LIMITED: Meeting of Creditors Set April 28
GERALD STEVENS: Appoints Mazars Administrator
INFINEON TECHNOLOGIES: Maintains Performance in First Half
JCW INVESTMENTS: Shareholders Okay Winding up Resolutions
J D CRANE: Creditors to Meet May 7
KINGSCROFT INSURANCE: Claims Bar Date September 29
LEEDS UNITED: Advisor Severs Ties
LINKGUARD LIMITED: Calls in Liquidator
MAYFLOWER CORPORATION: Sells Turbine Installation Ship
OBSERVICES SECURITY: Creditors Meeting Set May 3
PRO BUILD: Hires Mazars Administrator
SDC COMMUNICATIONS: Appoints Receivers from Kroll Limited
SEVSEN LIMITED: Appoints Liquidator from Harris Lipman
STEEL KING: Hires Rothman Pantall Administrator
*********
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D E N M A R K
=============
MAERSK AIR: Significant Write-downs Plunge Carrier into Red
-----------------------------------------------------------
Maersk Air blamed two extraordinary expenditures for its DKK622
million net loss for 2003. The first was a DKK476 million
write-down of the value of its aircraft, components and spare
parts primarily due to the fall of dollar exchange rate during
the year. The second was DKK246 million in connection with the
sale of Maersk Air Ltd (U.K.).
In addition, the result was affected positively with DKK116
million in connection with the sale of AS Estonian Air and the
affiliated aircraft maintenance company. In addition the result
is positively affected with a net effect of DKK199 million as:
exchange rate adjustment of long-term debt (DKK92 million),
Transfer from accrued profit in connection with sale of aircraft
(DKK63 million), other items (-DKK18 million), net result for
affiliated and associated companies (-DKK40 million) and
deferred tax related to extraordinary items (DKK102 million).
The group's cash flow from the operational activities is
improved to -DKK29 million against -DKK249 million in 2002. The
capital and reserves ultimo 2003 is calculated to DKK531 million
against DKK464 million ultimo 2002.
Maersk Air's President Finn Oelund sees a positive future: "The
last couple of years have not been satisfactory, but now we look
forward. The new strategy of Maersk Air called 'Fly as you
like' has created a new Maersk Air with a sharp and aggressive
profile showing a modern airline with very competitive prices,
own choice of Small, Medium, Large and X-large legroom as well
as the possibility to change and cancel tickets right up to 3
hours before scheduled departure. The number of routes has been
increased and now includes 30 routes from Denmark to 25 major
capitals, exciting towns and holiday resorts in 12 countries in
Europe. In connection with the winter schedule we expect to
present an additional 10 new routes primarily to large European
cities."
A copy of the annual report is available free of charge at
http://bankrupt.com/misc/maersk_air.pdf
CONTACT: MAERSK AIR
Finn Oelund
President director
Phone: +45 3231 4400
Michael Tonnes Jorgensen
Chief Financial Officer
Phone: +45 3231 4747
Web site: http://www.maersk-air.com/en/
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F R A N C E
===========
VIVENDI UNIVERSAL: Settles Dispute with InterActiveCorp
-------------------------------------------------------
Vivendi Universal (Paris Bourse: EX FP; NYSE: V) and
InterActiveCorp (IAC) have agreed on the form of the letters of
credit that would be issued to InterActiveCorp in order to
defease certain covenants pursuant to the Vivendi Universal
Entertainment Partnership Agreement in connection with the
closing of the VUE-NBC transaction. Defeasing these covenants
is a condition to closing the VUE-NBC transaction.
By mutual agreement of Vivendi Universal and IAC, Vivendi
Universal's lawsuit against InterActiveCorp, seeking a
declaratory judgment regarding the letters of credit offered by
VUE, filed on March 16, 2004 and pending before the Court of
Chancery of the State of Delaware, has been stayed until the
closing and will be dismissed after the letters of credit are
issued and accepted at the closing.
CONTACT: VIVENDI UNIVERSAL
Media
Paris
Antoine Lefort
Phone: +33 (0) 1 71 71 11 80
Agnes Vetillart
Phone: +33 (0) 1 71 71 30 82
Alain Delrieu
Phone: +33 (0) 1 71 71 10 86
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G E R M A N Y
=============
COGNIS GMBH: Raising EUR750 Million from Capital Markets
--------------------------------------------------------
Cognis Deutschland GmbH & Co. KG intends to access the debt
capital markets for up to EUR750 million.
ANY SECURITIES THAT MAY BE ISSUED WILL NOT BE REGISTERED UNDER
THE U.S. SECURITIES ACT OF 1933 AND MAY NOT BE OFFERED OR SOLD
IN THE UNITED STATES ABSENT REGISTRATION OR AN APPLICABLE
EXEMPTION FROM REGISTRATION REQUIREMENTS.
Within the United Kingdom, this Announcement is directed only at
persons having professional experience in matters relating to
investments who fall within the definition of "investment
professionals" in Article 19(5) of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2001 (relevant
persons). The investment or investment activity to which this
Announcement relates is only available to and will only be
engaged in with relevant persons and person who receive this
Announcement who are not relevant persons should not rely or act
upon it.
* * *
Cognis is a worldwide supplier of innovative specialty chemicals
and nutritional ingredients. It employs 8,600 people, and has
production sites and service centers in almost 30 countries.
The company has dedicated its activities to a high level of
sustainability and delivers natural source raw materials and
ingredients for food, nutrition and healthcare markets, and the
cosmetics, detergents and cleaners industries. Additionally,
Cognis provides solutions for a number of other industries, such
as coatings and inks, lubricants, textiles and plastics, as well
as agriculture and mining.
Cognis is owned by private equity funds advised by Permira, GS
Capital Partners, and Schroder Ventures Life Sciences. In 2003,
Cognis recorded sales of EUR2.95 billion and an operating profit
before depreciation, amortization and exceptional items (EBITDA
recurring) of EUR312 million.
COGNIS GMBH: Gets 'BB-', Stable Outlook for Refinancing Plan
------------------------------------------------------------
Standard & Poor's Ratings Services on Wednesday assigned its
'BB-' long-term corporate credit rating to Germany-based
specialty chemicals and intermediates manufacturer Cognis GmbH
following an announcement of the group's proposed refinancing.
At the same time, the long-term corporate credit rating on
Cognis Deutschland GmbH & Co. KG was lowered to 'BB-' from 'BB'.
The outlook on both companies is stable.
Cognis Deutschland is a wholly owned direct subsidiary of
Cognis. The ratings are subject to documentation and the final
terms and conditions of the refinancing transaction.
Standard & Poor's also assigned these long-term issue ratings:
(a) A 'BB-' rating to Cognis Deutschland's proposed EUR1.325
billion (US$1.570 billion) of senior secured bank facilities
(including the restructuring and revolving credit
facilities);
(b) A 'B' rating to Cognis Deutschland's proposed EUR300 million
of second-secured debt; and
(c) A 'B' rating to Cognis' proposed EUR445 million of secured
notes.
The existing 'BB' ratings on Cognis Deutschland's outstanding
senior secured bank facilities were affirmed and will be
withdrawn once the new senior secured bank facilities become
available.
"The rating assignments and revisions follow an announcement
that the Cognis group and its equity sponsors intend to
refinance the current capital structure of the group in a
transaction that will significantly increase Cognis' financial
leverage and create negative shareholders' book equity at the
group level," said Standard & Poor's credit analyst Ralf
Kortuem. "In particular, the proposed refinancing package
includes an extraordinary EUR320 million cash dividend payout to
Cognis' owners, and the replacement of more than EUR400 million
of payment-in-kind debt with a cash interest-paying high-yield
bond."
As a result, Cognis' previously adequate cash flow protection
measures will weaken significantly, with initial net financial
indebtedness of about EUR1.6 billion at about 4.5x the group's
recurring adjusted LTM EBITDA (including realized cost savings)
of about EUR358 million at March 31, 2004. In addition, Cognis
has relatively high unfunded pension liabilities.
A meaningful reduction of the group's initial net indebtedness
can only be expected from 2006, due to expected limited free
cash flow generation over the next two years as a result of cash
needs for restructuring activity. The ongoing restructuring
program is targeting annual cost savings of about EUR102 million
by the end of 2005.
"Although the potential for debt reduction is limited in the
near term, coverage ratios are expected to improve gradually
owing to the group's restructuring program," said Mr. Kortuem.
"The financial performance of the group's oleochemicals
activities should stabilize in 2004 and no meaningful
acquisitions are expected," he added.
Following the proposed refinancing transaction, Cognis'
liquidity position will be satisfactory, as the group will have
available a large unused revolving credit facility of EUR250
million and a separate restructuring facility of EUR175 million.
CONTACT: STANDARD AND POORS RATING SERVICES
Analyst E-mail Addresses
ralf_kortuem@standardandpoors.com
anne-charlotte_pedersen@standardandpoors.com
olivier_beroud@standardandpoors.com
christine_hoarau@standardandpoors.com
CorporateFinanceEurope@standardandpoors.com
JENOPTIK AG: Absorbs EUR25.8 Million Net Loss for 2003
------------------------------------------------------
Jenoptik Group sales and income are expected to rise in 2004.
The Jenoptik Group (ISIN DE0006229107) completed fiscal year
2003 with EUR1,982.2 million in sales, a year-on-year rise of
25.1% (2002: EUR1,584.5 million). Jenoptik Group income,
however, fell considerably. While operating income within the
Photonics business division met expectations, the Clean Systems
business division's operating income fell well behind
anticipated figures.
Recovery in the semiconductor industry during the second half of
2003 did not yet have a positive effect on Clean Systems income
figures since there were still unused production capacities. In
the third year of the longest sector crisis, M+W Zander did not
succeed in achieving the results of the previous years. One-off
effects also played a role in slowing income, including project
delays due to the SARS epidemic in Asia costing EUR15-20
million, and EUR10 million in restructuring costs. During the
semiconductor crisis, Clean Systems also took on orders from
more traditional industries to make up for the order slowdown in
the electronics sector. These orders, entering accounts in
fiscal year 2003, had lower profit margins, and were thus one of
the main reasons for a coinciding sales increase and income
decrease.
As a result of the above-mentioned effects, the Group EBIT was a
positive EUR7.9 million, but well behind the previous year's
EUR64.8 million and well below expectations. For the first time
in ten years, the Group net income fell below zero to minus
EUR25.8 million (2002: EUR40.3 million). This figure reflects
approximately EUR9 million in one-off costs for corporate
capital measures in addition to the Group's restructuring
expenses. Due to its net loss, the JENOPTIK AG supervisory and
executive boards will recommend to the annual general meeting on
June 9, 2004 that no dividends be issued for fiscal year 2003.
The supervisory board agreed to the executive board's proposal
on the matter at its last meeting on Monday, April 19, 2004.
Order Intake and Order Backlog Up from 2002
The Jenoptik Group order intake and order backlog developed
strongly in 2003, again surpassing the figures recorded in 2002.
Order intake rose 3.1% to EUR2.21 billion (2002: EUR2.14
billion) while order backlog increased 4.8% to EUR2.51 billion
(2002: EUR2.39 billion). The Jenoptik Group has again received
an increasing number of electronics orders since autumn 2003, a
trend continuing on into fiscal year 2004. The Group's current
order backlog has thus improved strongly in its composition from
2003, since a greater portion of orders derive from the high-
margin electronics engineering sector.
Bond Issue and Capital Increase Improve Group Financial Position
The Jenoptik Group improved its financial position with both a
cash capital increase and a corporate bond issue in autumn 2003,
receiving nearly EUR200 million in gross proceeds from the two
capital measures. The capital increase contributed roughly
EUR50 million to Jenoptik's shareholders' equity. This figure
fell, however, to EUR396.9 million for 2003 (2002: EUR430.6
million) due to the net loss, dividend payments for fiscal year
2002 and goodwill offsets. As in previous years, goodwill
obtained with newly acquired companies was not capitalized but
immediately set off against shareholders' equity.
The Jenoptik Group used the EUR150 million from its bond issue
to redeem a large amount of its short-term debt, thus shifting a
greater portion of the Group's total liabilities towards long-
term debt, which accounted for 86% of the Group's total debt at
the end of 2003. As of December 31, 2003, net debt had risen by
EUR56.5 million to EUR126.3 million (December 31, 2002: EUR69.8
million). This primarily reflects a high level of prepayments
for facility engineering projects in the Clean Systems business
division, the dividend payments for 2002, as well as investments
and acquisitions.
Acquisitions strengthen the Photonics business division in 2003.
The Jenoptik Group strengthened its Photonics business division
with two acquisitions in December 2003. Lechmotoren GmbH will
serve to enhance the Electromechanical Systems business area's
range of products and distribution network, while Wahl optoparts
GmbH will bring its production of plastic optical components to
the Electro-Optics business area, a technology that will
complement Electro-Optics well.
The Clean Systems business division concentrated more closely on
integrating activities acquired in 2001 and 2002, a period of
rapid expansion for the division's Facility Engineering and
Facility Management business areas. In 2003, the division
completed the process of integrating Krantz TKT segments into
the Facility Engineering business area, as well as D.I.B.
Gesellschaft fur Standortbetreiberdienste into the Facility
Management business area. These acquisitions will contribute to
the success of the Jenoptik Group in fiscal year 2004.
Photonics Achieves 2003 Objectives
Despite the difficult economic situation, the Photonics business
division completed fiscal year 2003 with considerable success.
Division sales rose 5.2% to EUR282.1 million (EUR268.2 million),
buoyed both by Jena-Optronik GmbH, which was included in
consolidation for the first time (2002: at equity), and by the
business area's traffic safety and laser materials processing
units.
The Photonics operating income of EUR26.6 million nearly matched
the previous year's figure (2002: EUR27.6 million). The EBIT
margin, operating income as a percentage of sales, came to 9.4%,
right in the middle of the 9-10% range projected at the
beginning of the year.
The Photonics business division saw an increase both in order
intake and order backlog in 2003. Order intake amounted to
EUR328.1 million, an increase of 31% from 2002 (EUR250.9
million). The division's order backlog increased 14.9% to
EUR368.9 million at the end of the year (2002: EUR321.1
million). This order growth chiefly reflects new long-term
major orders, in the Electro-Optics business areas within the
scope of the long-term cooperation with Spectra-Physics of the
United States, and a long-term major order in the
Electromechanical Systems business area for the delivery of
trolley-lift systems for the Airbus A380.
Clean Systems Business Division Noticeably Affected by
Semiconductor Crisis in 2003
The Clean Systems business division achieved EUR1.7 billion in
sales in 2003 (2002: EUR1.3 billion). The 29.4% drop was,
however, less than originally expected, as the result of sales
shifts in major Asian projects due to the SARS epidemic.
Despite these delays, the Facility Engineering business area saw
its sales increase to EUR1.3 billion (2002: EUR1.0 billion),
while the Facility Management business area's sales shot up to
EUR397.1 million (2002: EUR332.7 million).
Facility Management's EUR13.4 million in operating income
constituted a further increase from the previous year's strong
figure (2002: EUR9.4 million), with income growth outpacing
sales growth. Facility Engineering, on the other hand, reported
a negative operating income of EUR11.4 million (2002: +EUR15.2
million) for the first time in ten years due to the reasons
listed above in connection with the Group's income figures. The
business area was primarily affected by the protracted
semiconductor crisis and low-margin projects for more
traditional industrial sectors in Germany.
Clean Systems order intake remained nearly constant year-on-year
at EUR1,870.3 million (2002: EUR1.879.5 million). Order backlog
increased slightly to EUR2.140.3 million even despite high sales
figures (2002: EUR2.073.3 million).
The Facility Engineering business area predominated the
division's order intake at EUR1.448.8 million (2002: EUR1.516.7
million). Its order intake rose with particular rapidity
beginning with the resurgence of the semiconductor industry in
autumn 2003. The business area received the Group's largest
order ever in November 2003, a EUR380-million contract to
engineer and construct AMD's new chip factory in Dresden. Order
backlog rose accordingly to EUR1.490.7 million as of December
31, 2003 (2002: EUR1.462.3 million). The portion of orders from
the higher-margin electronics industry was much higher in 2003
than had been the case in 2002.
Order intake in the Facility Management business area rose 14.7%
to EUR438.9 million in 2003, with the largest and most important
order received from Deutsche Bank AG. Order backlog in the
business area also increased to EUR651.3 million (2002: EUR615.5
million).
Outlook: Jenoptik Group Sales and Earnings to Rise in 2004
Jenoptik sales are expected to rise again in both business
divisions, easily surpassing EUR2 billion in total. In 2004,
the Jenoptik net income is expected to return to positive
figures, with a projected group EBIT of between EUR45 million
and EUR60 million.
The Clean Systems business division plans between EUR1.8 billion
and EUR1.9 billion in sales for 2004, a rise of 6-12%, despite
the German facility engineering industry's increasing
selectiveness when it comes to placing new orders. The above
figures presuppose that all projects enter accounting on time.
The Clean Systems sales projections are strengthened by a strong
order intake in the first quarter of the current fiscal year,
higher than in any other quarter ever before, according to
preliminary calculations. The division sales growth derives
primarily from the electronics and flat-panel industries. Only
a few days ago, M+W Zander received the largest flat-panel order
to date from AU Optronics of Taiwan. The Clean Systems' high
electronics order intake and its restructuring program, now
continuing into 2004, will allow the division to return to
figures last seen before the semiconductor crisis. The Facility
Engineering EBIT margin is expected to lie between 1.5 and 2.5%,
while the Facility Management EBIT margin should rise to between
3% and 3.5%. Facility Management also plans for gradual organic
sales growth.
In 2004, the Photonics business division will continue its
strategy of expanding and linking its technology know-how along
the photonics chain as well as cooperating with solid partners
towards achieving high sales figures for its technology-
intensive components and systems. Photonics plans over EUR350
million in sales for 2004, an increase of well over 20%. A
Photonics EBIT margin of between 9 and 10% is also expected.
Within the Electro-Optics business area, the optics unit expects
a particularly strong sales increase. In particular Wahl
optoparts GmbH, included for the first time in 2004, and the
Optics unit for semiconductor equipment manufacturers are
expected to contribute to the sales increase. Hillos GmbH, a
Jenoptik-Hilti joint venture, will also play a role in Photonics
sales growth.
Electromechanical Systems business area sales are expected to
increase to EUR112-118 million in 2004 with the support of the
newly acquired Lechmotoren GmbH. Seventy percent of
Electromechanical Systems business area 2004 sales have already
been secured with long-term orders.
A copy of these results are available free of charge at
http://bankrupt.com/misc/Jenoptik_2003.pdf
CONTACT: JENOPTIK AG
Markus Wild
Corporate Communications
Phone/Fax: ++49 3641 65 2255/2484
JENOPTIK AG: On CreditWatch Negative Due to Dismal Results
----------------------------------------------------------
Standard & Poor's Ratings Services on Wednesday lowered its
long-term corporate credit rating on Germany-based engineering
group Jenoptik AG to 'B+' from 'BB-' owing to weaker-than-
expected cash flow generation in 2003. At the same time, the
rating on Jenoptik's EUR150 million senior guaranteed bond was
lowered to 'B+' from 'BB-'. Both ratings were placed on
CreditWatch with negative implications.
"The rating action reflects Standard & Poor's view that
Jenoptik's credit protection measures no longer reach the level
required for the previous 'BB-' rating," said Standard & Poor's
credit analyst Eve Greb.
"Furthermore, the group's cash flow generation has been below
our expectations, particularly due to the weak performance of
its Clean Systems division."
The CreditWatch placement reflects our concerns about Jenoptik's
cash flow generation ability in 2004 and beyond, after weak cash
flow disclosure in 2003. In addition, uncertainty remains over
Jenoptik's business and financial profiles, following strategic
changes the company is considering with regard to the Clean
Systems division.
Standard & Poor's will meet with management in the near future
to discuss Jenoptik's business prospects and financial profile
with a view to resolving the CreditWatch status. Any further
downgrade would be limited to one notch.
"Jenoptik's cash flow generation further deteriorated in 2003
compared with 2002, contrary to Standard & Poor's expectation of
some improvement, due to the continued semiconductor crisis and
low-margin projects, which led to a decline in the volume of
factored projects and a reduction of prepayments," said Ms.
Greb. "As of Dec. 31, 2003, funds from operations (FFO) to
lease-adjusted total debt was about 10%, which is no longer in
line with the previous rating."
Although Jenoptik might benefit from some recovery in the
electronics industry, Standard & Poor's does not consider it
likely that the group will reach our previously set pension- and
lease-adjusted FFO-to-total debt ratio target of about 20%-25%
over the business cycle.
CONTACT: STANDARD AND POORS RATING SERVICES
Analyst E-mail Addresses
eve_greb@standardandpoors.com
lars_bjorklund@standardandpoors.com
peter_tuving@standardandpoors.com
=============
H U N G A R Y
=============
PARMALAT HUNGARIA: Obtains HUF500 Million Financing
---------------------------------------------------
Parmalat Hungaria has been granted a loan worth HUF500 million
by a Hungarian bank. Liquidation Commissioner Ferenc Somogyi
told the Budapest Business Journal a formal agreement should be
ready before the end of the week.
The Fejer County Court assigned TM-Line Kft as liquidator of
Parmalat Hungaria last month at the motion of The Dairy Product
Council. The company's failure to answer questions related to
its debt to suppliers within the deadline set by the court
precipitated its liquidation. Reports say the company owes
creditors HUF270 million.
Meanwhile, Parmalat Hungaria remains in dispute with parent,
Parmalat Finanziaria, over brand ownership rights. Mr. Somogyi
said: "I cannot imagine that the brand Parmalat could be taken
away [by the owners] since the Szekesfehervar-based company paid
the costs of its introduction in Hungary."
The Italian parent owns 67% of the local subsidiary, while the
European Bank for Reconstruction and Development holds 32%. The
remaining 1% is owned by Hungarian private investors and local
municipality, Szekesfehervar.
CONTACT: PARMALAT HUNGARIA RT
8000 Szekesfehervar, Seregelyesi ut 127.
Phone: (36-22) 540-100
Fax: (36-22) 540-205
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I R E L A N D
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ELAN CORPORATION: Grants Roche License to NanoCrystal Technology
----------------------------------------------------------------
Elan Pharma International Ltd., a subsidiary of Elan Corporation
plc, announced an agreement to license its proprietary
NanoCrystal(TM) technology to Roche. NanoCrystal technology
can improve the bioavailability of drugs by transforming them
into nanometer-sized particles that can be used to create more
effective and convenient dosage forms such as tablets, capsules,
liquids, and powders. The license agreement will provide Roche
with access to NanoCrystal technology and the rights to apply
the technology to a drug candidate currently in clinical
development.
"We are pleased that we are going to continue to work with Roche
to apply our NanoCrystal technology to the formulation of this
drug candidate," said Paul Breen, executive vice president,
Global Services & Operations, Elan. "For more than 30 years,
Elan has been working to meet the challenges of drug delivery
and enhance the performance of drugs. By addressing poor water
solubility through the use of NanoCrystal technology, Elan
Pharma International Ltd. continues to play a role in furthering
the development of drug candidates. In addition, our technology
can help companies to differentiate their current therapies from
the competition by creating more effective and convenient
treatment options for patients."
In the agreement, Elan will provide Roche with formulation
services and technology in exchange for research revenues,
development milestones and royalties on sales of the product
incorporating or made using NanoCrystal technology.
"We are pleased to bring our 2003 evaluation agreement with Elan
to this next level and are enthusiastic about the potential of
NanoCrystal technology," said Urs Saner, Roche's Head of Pharma
Technical Development. "This agreement further strengthens our
ability to deliver value for patients as we continue to develop
innovative, differentiated medicines."
About Elan's NanoCrystal Technology
NanoCrystal technology may enhance the clinical performance of
poorly water-soluble drugs by transforming them into nanometer-
sized particles. An increasing number of the drug candidates
synthesized each year by pharmaceutical companies are poorly
water-soluble. Many of these potentially innovative drug
candidates are often abandoned because of poor pharmacokinetic
properties including absorption, distribution, metabolism, and
excretion. NanoCrystal technology has the potential to rescue a
significant percentage of these chemical compounds. The drug in
nano-form can be incorporated into common dosage forms,
including tablets, capsules, inhalation devices, sterile forms
for injection, with the potential for substantial improvements
to clinical performance. There are currently two pharmaceutical
products that have been commercialized incorporating NanoCrystal
technology, with several additional product launches anticipated
over the next two years. The NanoCrystal technology is
protected by 85 issued U.S. patents and 48 pending patents.
More information about Elan's NanoCrystal technology is
available at http://www.nanocrystal.com
* * *
Elan Pharma International Ltd. is an indirect wholly owned
subsidiary of Elan Corporation, plc, which is a neuroscience-
based biotechnology company that is focused on discovering,
developing, manufacturing and marketing advanced therapies in
neurology, autoimmune diseases, and severe pain. Elan (NYSE:
ELN) shares trade on the New York, London and Dublin Stock
Exchanges.
CONTACT: ELAN CORPORATION
Investors
Emer Reynolds
Phone: +353-1-709-4000
or 800-252-3526
Media
Anita Kawatra
Phone: 212-407-5755
Or 800-252-3526
ELAN CORPORATION: To Give Update at Morgan Stanley Conference
-------------------------------------------------------------
Elan Corporation, plc announces that it will present at the
Morgan Stanley Second Annual Global Healthcare Unplugged
Conference in Miami, Florida on May 5 at 8:45 a.m. Eastern Time,
1:45 p.m. Greenwich Mean Time. Interested parties may access a
live audio Web cast of the presentation by visiting Elan's Web
site at http://www.elan.comand clicking on the Investor
Relations section, then on the event icon.
* * *
Elan Corporation, plc (senior implied rating confirmed at Caa2
by Moody's) is a neuroscience-based biotechnology company that
is focused on discovering, developing, manufacturing and
marketing advanced therapies in neurology, autoimmune diseases,
and severe pain. Elan (NYSE: ELN) shares trade on the New York,
London and Dublin Stock Exchanges.
CONTACT: ELAN CORPORATION
Investors
Emer Reynolds
Phone: +353-1-709-4000
or 800-252-3526
Media
Anita Kawatra
Phone: 212-407-5755
Or 800-252-3526
=========
I T A L Y
=========
COSAL: Labor Representative to Meet Bankruptcy Trustee April 27
---------------------------------------------------------------
Regional industrial councilor Marina Noe will seek guarantees
that jobs will be protected in the event bankrupt mineral water
company, Cosal, is sold. According to Agence France-Press, she
is set to meet with company trustee, Palermo Morini, on April
27.
Commenting on the sale of the plant, she said: "[F]or the
regional government, the preconditions for whatever passage or
transfer of the 'Pirgo' concession, currently in use at Cosal,
has to be that of re-launching and maintaining job levels."
Cosal, formerly named Ciappazzi di Terme Vigliatore (Messina),
is controlled by the former owner of Parmalat Finanziaria,
Calisto Tanzi.
PARMALAT FINANZIARIA: Still Accepting Proofs of Claim
-----------------------------------------------------
April 20 was the last date for filing of proofs of claim under
the Parmalat S.p.A. Extraordinary Administration procedures.
This deadline, which was indicated in the press release on April
5 and which can be found on the Web site of the Tribunale
(http://web.ltt.it/tribunale/home.ht)was not mandatory.
Requests to file proofs of claim, in practice, will be
considered as being within the deadline until the Parma Court
has completed its verification of the debt of the company. This
verification process will commence on May 19, 2004 and is
expected to require several hearings of the Court after May
19, before it is completed. ([I]t is not possible to project
the date when the process of debt verification will be
concluded.) Once the verification process has been completed,
the Court will declare the closure of the Claim filing procedure
and all the claim forms received after the closure date will be
deemed not filed timely and, if not presented via a legal
advisor, will not be accepted.
Parmalat Finanziaria S.p.A.
in Extraordinary Administration
PARMALAT FINANZIARIA: Football Club Seeks Creditor Protection
-------------------------------------------------------------
Administrators of Parmalat Finanziaria filed creditor protection
for the Italian dairy group's soccer club, Parma, on Wednesday,
a court source told Reuters.
The soccer club is among the assets in line for sale under the
group's rescue plan. Creditor protection is expected to enhance
the club's chances of being sold, as this would mean it could
reclaim assets confiscated from it last month. Italy's tax
collector, Agenzie delle, had earlier confiscated assets
belonging to the club for failure to pay taxes amounting to
EUR54 million.
"When it is given protection from creditors ... Parma regains
control of its own assets and of its own current accounts, which
are frozen at the moment," the court source said.
An extraordinary administration would not affect the club's
membership in the Italian soccer league. Italy's soccer
federation has ruled that even under so-called "extraordinary
administration" the club will not be considered bankrupt, the
report said.
The creditor protection filing will go to Rome. If the petition
is accepted a Parma court may declare the club insolvent after
five days.
===================
L U X E M B O U R G
===================
STOLT OFFSHORE: Completes Debt for Equity Swap
----------------------------------------------
Stolt Offshore S.A. (NasdaqNM: SOSA; Oslo Stock Exchange: STO)
reported that the previously announced debt for equity swap,
under which the Stolt-Nielsen Transportation Group, a wholly
owned subsidiary of Stolt-Nielsen S.A., has subscribed for an
additional 22,727,272 Common Shares in consideration for the
cancellation of US$50 million of subordinated loans to Stolt
Offshore, had been completed. The number of Common Shares
issued is now 161,489,487.
* * *
Stolt Offshore is a leading offshore contractor to the oil and
gas industry, specializing in technologically sophisticated
deepwater engineering, flowline and pipeline lay, construction,
inspection and maintenance services. The Company operates in
Europe, the Middle East, West Africa, Asia Pacific, and the
Americas
CONTACT: STOLT OFFSHORE S.A.
Dolphin House, Windmill Road,
Sunbury-on-Thames, Middlesex
W16 7HT England
Phone: (+44) (0)1932-773-700
Web site: http://www.stoltoffshore.com
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 (U.K.)
Tim Payne (U.S.)
Phone (U.K.): +44 207 404 5959
Phone (U.S.): +1 212 333 3810
E-mails: phandley@brunswickgroup.com
tpayne@brunswickgroup.com
=====================
N E T H E R L A N D S
=====================
ASML N.V.: Books Second Successive Quarterly Profit
---------------------------------------------------
ASML Holding N.V. (ASML) announced its financial results for the
first quarter of 2004. These are the highlights:
(a) Order backlog of 163 lithography systems - 135 new and 28
refurbished systems - valued at EUR1,357 million as of
March 28, 2004.
Q4 2003: 124 systems/EUR993 million value
Q1 2003: 93 systems/EUR889 million value
(b) Total sales of EUR453 million
Q4 2003: Total sales of EUR526 million
Q1 2003: Total sales of EUR318 million
(c) Net profit of EUR21 million
Q4 2003: Net profit of EUR16 million
Q1 2003: Net loss of EUR82 million
(d) Net cash provided from operating and investing activities of
EUR111 million
Q4 2003: Net cash provided of EUR245 million
Q1 2003: Net cash provided of EUR40 million
"ASML continues to seize the upturn. Our financial position
shows the benefits of our commitment to controlling costs and
improving the quality of our earnings. Good results include a
strong backlog and a cash position of EUR1.1 billion," said Doug
Dunn, president and CEO. "Product shipments reflect customers'
urgent need for immediate production capacity. This created a
strong demand for 248 nm systems and 200 mm systems, which
reduced the average selling price. The demand for 248 mm
systems will continue throughout the year. However in the
course of 2004, ASML anticipates that customers will also favor
193 nm systems to begin ramping up capacity at smaller feature
sizes and further expand 300 mm capacity. This will strengthen
the ASP as the year progresses."
"The upturn flickered in Q3 and caught hold in Q4 2003. We've
now seen three quarters of strong orders including this one.
All indications suggest that orders will continue to be strong
in Q2 2004," Mr. Dunn concluded.
Financial Position
In Q1 2004, ASML generated a net profit of EUR21 million or
EUR0.04 per ordinary share. This compares with a Q4 2003 net
profit of EUR16 million or EUR0.03 per ordinary share and a Q1
2003 net loss 82 million or EUR0.17 per ordinary share. ASML
concluded the first three months of 2004 with an additional
EUR124 million in cash and cash equivalents, bringing the total
to EUR1.152 million.
Operations Update
Total sales for Q1 2004 were 58 systems - 42 new and 16
refurbished. Total net sales for Q1 2004 were EUR453 million as
compared with total net sales in Q4 2003 of EUR526 million and
total net sales in Q1 2003 of EUR318 million. In Q1 2004,
revenue from service and field options were EUR65 million
compared with Q4 and Q1 2003 revenues from service and field
options of EUR75 million and EUR63 million respectively.
The Q1 2004 product demand mix favored 248 nm systems over 193
nm systems for both 200 and 300 mm wafer sizes leading to an
average selling price of EUR8.4 million, some 12% lower than the
Q4 2003 average selling price of EUR9.5 million. The average
selling price for new systems in Q1 2003 was EUR9.2 million.
ASML continued to sequentially improve its gross margin to 32%,
an increase from Q4 and Q1 2003 gross margins of 4 and 15
percentage points respectively. A further improvement of 2
percentage points is expected in Q2 2004.
The order backlog comprises 163 lithography systems with
approximately 75% -- with an average selling price of EUR7.6
million -- expected to ship in the next six months. The ASP for
new systems in the backlog is EUR9.6 million, up from the Q4
2003 ASP for new systems in the backlog of EUR9.2 million.
Selling, general and administrative expenses (SG&A) totaled
EUR48 million as compared with EUR46 million in Q4 2003 and
EUR61 million in Q1 2003. Expected 2004 SG&A expenses range
between EUR50-55 million per quarter.
Research and development (R&D) expenditures for Q1 2004 were
EUR70 million net of credit, as compared with EUR76 million net
of credit in Q4 and Q1 2003. Expected 2004 R&D expenses range
between EUR65-70 million per quarter.
As previously announced, ASML modified its restructuring plan in
the Netherlands to reflect stronger market conditions. The
modification resulted in a reversal of EUR8.6 million of pre-tax
restructuring charges being taken in 2003. These one-time gains
are off set with one-time expenses in R&D.
CEO to Retire
CEO Doug Dunn will retire during the course of this year, as
previously announced. The search for his successor progresses
and the company continues to anticipate a smooth transition.
Pre-Recorded Message
A pre-recorded message from ASML CEO Doug Dunn on the financial
results is available at http://www.ASML.com,under Q1 2004
Financial Results. The pre-recorded message is also available
via telephone at +31 70 315 43 00, pass code 007 425#. Both
connections to the message will remain active until April 28,
2004.
Conference Call - New Time
A conference call hosted by ASML CEO Doug Dunn and CFO Peter
Wennink to discuss the 2004 Q1 financial results was held April
21, 2004 at 4:30 p.m. Central European Time/10:30 a.m. Eastern
U.S. Time. A replay of the Web cast is available at
http://www.ASML.comuntil May 21.
* * *
ASML is the world's leading provider of lithography systems for
the semiconductor industry, manufacturing complex machines that
are critical to the production of integrated circuits or chips.
Headquartered in Veldhoven, the Netherlands, ASML is traded on
Euronext Amsterdam and NASDAQ under the symbol ASML. For more
information, visit http://www.asml.com.
CONTACT: ASML HOLDING
Media Contacts
Veldhoven, the Netherlands
Tom McGuire
Phone: +31 40 268 5758
Beth Kitchener
Phone: +31 40 268 2602
Investor Relations Contacts
Tempe, Arizona
Craig DeYoung
Phone: 480-383-4005
Veldhoven, the Netherlands
Franki D'Hoore
Phone: +31 40 268 6494
HAGEMEYER N.V.: Names R.W.A. de Becker Management Board Chairman
----------------------------------------------------------------
The Annual General Meeting of Shareholders of Hagemeyer N.V.
approved the appointment of Messrs B.A.J. Bourigeaud and M.P.M.
de Raad as members of the Supervisory Board, as well as the
appointment of Mr. R.W.A. de Becker as member of the Board of
Management in the position of Chairman.
In addition, it was announced that Mr. W.H.M. Pot will end his
assignment as member of the Board of Management. Since the end
of November 2003, Mr. Pot has provided guidance and expertise in
the management of the financial restructuring, including the
rights issue. His appointment as per January 9, 2004 was
scheduled to last for a maximum of six months. Now that this
assignment has been successfully completed, it has been agreed
that Mr. Pot will leave the Company effective April 30, 2004.
ROYAL SHELL: Fitch Lowers Senior Unsecured Rating to 'AA+'
----------------------------------------------------------
Fitch Ratings downgraded Royal Dutch/Shell Group's (RDS) Senior
Unsecured rating to 'AA+' from 'AAA' and revised the Outlook to
Stable from Negative. The Short-term rating is unchanged at
'F1+'.
The downgrade is predicated on the cumulative occurrence of
negative factors previously identified by Fitch -- managerial
instability and movement, the possibility of financial
penalties, findings supporting shareholder litigation and
further reserve adjustments. These factors were identified when
the agency changed the Outlook on RDS' 'AAA' rating to Negative
on 12 March.
Management change may provide a suitable opportunity to refocus
the business over the longer term, but the unprecedented
wholesale senior management movement of the past three months is
likely to be detrimental to the medium-term overall risk profile
of the business. While future senior management changes are now
considered very unlikely, there remains the possibility that the
ongoing SEC review will draw further relevant and actionable
independent conclusions.
The RDS report released on April 19 describes serious weaknesses
in corporate governance and procedure that could provide
evidence for future investor action and regulatory penalties,
leaving open the prospect of investor litigation and financial
penalties.
The Outlook is Stable rather than Negative because of
uncertainties over the timing and magnitude of any litigation or
penalties, and the expectation that the business will retain
sufficient financial flexibility over the medium term.
Material reserve adjustments have decreased the total reserve to
production ration to c.10 years, considerably below the peer
group average of c.13 years. In addition, the retrospective
adjustment worsens the previously reported cost of finding and
development data, with average replacement levels of c.60%. The
combination of these adjustments, notwithstanding leverage,
indicate that the historic performance of the business in
finding and developing reserves has fallen short of the sector-
leading performance usually associated with the highest credit
rating.
Fitch acknowledges that high oil prices and proceeds from
peripheral asset disposal provide considerable financial
flexibility for the business and this is factored into the
Stable Outlook. Fitch does not expect further findings or
events to be materially detrimental to the credit profile of the
group but will continue to monitor developments over the course
of 2004, in particular with respect to investor litigation.
CONTACT: FITCH RATINGS
Isaac Xenitides
Phone: +44 (0) 20 7417 4300
Graeme Marks
Phone: +44 (0) 207 862 4086
Media Relations
Alex Clelland, London
Phone: +44 20 7862 4084
===========
P O L A N D
===========
KOMPANIA WEGLOWA: Posts PLN38.9 Million First-quarter Profit
------------------------------------------------------------
The rise in international coal prices benefited Kompania Weglowa
in the first quarter. The Polish coal-mining giant posted net
profit of PLN38.9 million during the period. Profit on sales
reached PLN127.2 million, while gross profit climbed to PLN46.4
million, according to Interfax-Europe.
The troubled company's revenue reached PLN2.14 billion due to a
22.1% increase of average coal prices. The prices rose to
PLN152.0 in March 2004 from PLN124.5 a year ago. Total coal
extracted was 14.1 million tons, of which 12.9 million were sold
locally and internationally at a ratio of 70:30.
The company -- formed out of the merger of Bytomska, Rudzka,
Gliwicka, Nadwislanska and Rybnicka in the first quarter last
year -- reported 2003 net loss of PLN687.9 million. It expects
a turnaround this year with net profit of PLN60 million.
Kompania Weglowa has 24 mines and nine servicing companies. It
employs 81,800 people.
===========
R U S S I A
===========
CHERTINSKAYA MINE: Insolvent Status Confirmed
---------------------------------------------
The Arbitration Court of Kemerovo region declared OJSC
Chertinskaya Mine insolvent and introduced bankruptcy
proceedings. The case is docketed as A27-5665/2002-4. Mr. A.
Kovalyev has been appointed insolvency manager. Creditors have
until May 26, 2004 to submit their proofs of claim to the
insolvency manager at: 652623, Russia, Kemero region, Belovo,
Promyshlennaya str.1.
CONTACT: CHERTINSKAYA MINE
652623, Russia, Kemero region, Belovo,
Promyshlennaya str.1
Mr. A. Kovalyev, insolvency manager
652623, Russia, Kemero region, Belovo,
Promyshlennaya str.1
ISKOZH: Deadline for Proofs of Claim May 27
-------------------------------------------
The Arbitration Court of Saint-Petersburg and Leningrad region
declared Tosno factory Iskozh insolvent and introduced
bankruptcy proceedings. The case is docketed as A56-18780/03.
Mr. V. Ganzhin has been appointed insolvency manager. Creditors
have until May 27, 2004 to submit their proofs of claim to the
insolvency manager at: 190121, Russia, Saint-Petersburg,
Angliysky prosp.3, office 205.
CONTACT: ISKOZH
187000, Russia, Leningrad region,
Tosno, Oktyabrskaya str.125
Mr. V. Ganzhin, insolvency manager
190121, Russia, Saint-Petersburg,
Angliysky prosp.3, office 205
NEVA-CITY: Saint-Petersburg Court Appoints Insolvency Manager
-------------------------------------------------------------
The Arbitration Court of Saint-Petersburg and Leningrad region
declared corporation Neva-City insolvent and introduced
bankruptcy proceedings. The case is docketed as A56-18957/02.
Mr. A. Kanunnikov has been appointed insolvency manager.
Creditors have until May 26, 2004 to submit their proofs of
claim to the insolvency manager at: 173018, Russia, Novgorod,
Zootechnicheskaya str.6A, Phone 64-98-55.
CONTACT: Mr. A. Kanunnikov, insolvency manager
173018, Russia, Novgorod, Zootechnicheskaya str.6A
Phone: 64-98-55
OAO GAZPROM: Fitch Retains 'BB' Rating, Stable Outlook
------------------------------------------------------
Fitch Ratings affirmed OAO Gazprom's (Gazprom) Senior Unsecured
foreign currency and local currency ratings at 'BB'. The
Outlook is Stable. At the same time the agency affirmed Gaz
Capital S.A.'s US$5 billion loan participation note program,
which relies on a Senior Unsecured liability of Gazprom for
repayment.
Fitch will continue to closely monitor both Gazprom's total
leverage position and operating performance, specifically with
regards to its heavy reliance on natural gas export prices.
CONTACT: FITCH RATINGS
Jeffrey Woodruff, Moscow
Phone: +7-095-956-9986
E-mail: jeffrey.woodruff@fitchratings.co.
Media Relations:
Alex Clelland, London
Phone: +44 20 7862 4084
PRIKAMSKOYE: Declared Insolvent
-------------------------------
The Arbitration Court of Perm region declared CJSC Prikamskoye
insolvent and introduced bankruptcy proceedings. The case is
docketed as A50-20555/2003-B. Mr. A. Zhdanov has been appointed
insolvency manager. Creditors have until June 8, 2004 to submit
their proofs of claim to:
(a) Insolvency manager at: 617000, Russia, Perm region,
Beloborodovo, Polevaya str.16-1
(b) Debtor: 618115, Russia, Perm region, Ochansky district,
Tulumbaicha
(c) The Arbitration Court of Perm region: 619990, Russia, Perm,
Lunacharskogo str.3
CONTACT: PRIKAMSKOYE
618115, Russia, Perm region, Ochansky district,
Tulumbaicha
Mr. A. Zhdanov, insolvency manager
614070, Russia, Perm, Krupskaya str.42-33
The Arbitration Court of Perm region
619990, Russia, Perm, Lunacharskogo str.3
REM-SEL-STORY: Proofs of Claim Deadline June 8
----------------------------------------------
The Arbitration Court of Vologda region declared agro-industrial
building company, LLC Rem-Sel-Story, insolvent and introduced
bankruptcy proceedings. The case is docketed as A13-8052/03-18.
Mr. A. Kondratyev has been appointed insolvency manager.
Creditors have until June 8, 2004 to submit their proofs of
claim to the insolvency manager at: 162600, Russia, Vologda
region, Cherpovez, Borshodskaya str.46.
CONTACT: REM-SEL-STORY
Russia, Vologda, Melioratorov str.21/2
Mr. A. Kondratyev, insolvency manager
162600, Russia, Vologda region, Cherpovez,
Borshodskaya str.46
SEVER-SYNTHESIS: Vologda Court Commences Bankruptcy Proceedings
---------------------------------------------------------------
The Arbitration Court of Vologda region declared KT Sever-
Synthesis and K insolvent and introduced bankruptcy proceedings.
The case is docketed as A13-8048/03-17. Mr. A. Kalachev has
been appointed insolvency manager. Creditors have until June 8,
2004 to submit their proofs of claim to the insolvency manager
at: 160035, Russia, Vologda, Pobeda prosp.55, office 7, Phone
72-41-92.
CONTACT: KT SEVER-SYNTHESIS and K
160035, Russia, Vologda, Kozlenskaya str.42-608
Mr. A. Kalachev, insolvency manager
160035, Russia, Vologda, Pobeda prosp.55,
Office 7
Phone: 72-41-92
SHEREGESHSKOYE MINE: Court Appoints Insolvency Manager
------------------------------------------------------
The Arbitration Court of Kemerovo region declared OJSC
Sheregeshskoye Mine Group insolvent and introduced a 12-month
bankruptcy proceeding. The case is docketed as A27-8668/2003-4.
Mr. A. Avdeyev has been appointed insolvency manager. Creditors
are asked to submit their proofs of claim to the insolvency
manager at: 652971, Russia, Kemero region, Tashtagolsky
district, Sheregesh, Sovetskaya str.1a.
CONTACT: SHEREGESHSKOYE MINE GROUP
652971, Russia, Kemero region, Tashtagolsky district,
Sheregesh, Sovetskaya str.1a
Mr. A. Avdeyev, insolvency manager
652971, Russia, Kemero region, Tashtagolsky district,
Sheregesh, Sovetskaya str.1a
SPEZIALIZIROVANNOYE UPRAVLENIYE: Insolvent Status Confirmed
-----------------------------------------------------------
The Arbitration Court of Perm region declared the specialized
corporation LLC Spezializirovannoye Upravleniye insolvent and
introduced bankruptcy proceedings. The case is docketed as A50-
21054/2003-B. Mr. V. Zabudsky has been appointed insolvency
manager.
Creditors have until June 8, 2004 to submit their proofs of
claim to the:
(a) Insolvency manager at: 618740, Russia, Perm region,
Dobryanka, Energetikov str.15-34
(b) The Arbitration Court of Perm region: 619990, Russia, Perm,
Lunacharskogo str.3
(c) Debtor: 618120, Russia, Perm region, Lysva, Metalistov
str.1
CONTACT: SPEZIALIZIROVANNOYE UPRAVLENIYE
617740, Russia, Perm region, Kungur, S. Razin str.21
Mr. V. Zabudsky, insolvency manager
618740, Russia, Perm region,
Dobryanka, Energetikov str.15-34.
The Arbitration Court of Perm region
619990, Russia, Perm, Lunacharskogo str.3
TOROPOVSKY: Bankruptcy Proceeding Begins
----------------------------------------
The Arbitration Court of Vologda region declared agricultural
industrial complex Toropovsky insolvent and introduced
bankruptcy proceedings. The case is docketed as A13-8214/03-22.
Mr. A. Kondratyev has been appointed insolvency manager.
Creditors have until June 8,2004 to submit their proofs of claim
to the insolvency manager at: 162600, Russia, Vologda region,
Cherpovez, Borshodskaya str.46.
CONTACT: TOROPOVSKY
Russia, Vologda region, Toropovo
Mr. A. Kondratyev, insolvency manager
162600, Russia, Vologda region, Cherpovez,
Borshodskaya str.46
URAL METAL: Declared Bankrupt
-----------------------------
The Arbitration Court of Perm region declared CJSC The Ural
Metal insolvent and introduced bankruptcy proceedings. The case
is docketed as A50-28600/2003-B. Ms. G. Totmyanina (Moscow) has
been appointed insolvency manager. Creditors have until June 8,
2004 to submit their proofs of claim to the insolvency manager
at: 614070, Russia, Perm, Krupskaya str.42-33.
CONTACT: THE URAL METAL
618120, Russia, Perm region, Lysva, Metalistov str.1
Ms. G. Totmyanina, insolvency manager
614070, Russia, Perm, Krupskaya str.42-33
=====================
S W I T Z E R L A N D
=====================
ABB LTD.: To Modify $968 Million Convertible Bond
-------------------------------------------------
ABB said it is calling a bondholder meeting next month to amend
the terms and conditions of the $968 million convertible bond,
issued by ABB International Finance Limited, which is due in
2007.
The proposed amendments would modify the conversion rights
contained in the bonds so that upon conversion bondholders would
receive dollar-denominated American Depositary Shares instead of
Swiss franc-denominated ordinary shares. Each ADS represents
one ordinary share of ABB Ltd.
"The modifications will greatly simplify the accounting
treatment of this bond and remove related volatility from our
financial statements," said Peter Voser, ABB's chief financial
officer. "Removing the volatility factor provides for increased
transparency."
"The changes should leave bondholders in substantially the same
position as they are in today. Moreover, there will be
additional benefits available to them," Voser added.
ABB Ltd. has listed its shares on the New York Stock Exchange
(in the form of ADS) since April 6, 2001.
A notice of meeting was published on Wednesday in the
Luxemburger Wort inviting bondholders to approve the changes at
a meeting in London on May 13, 2004.
An explanatory memorandum providing background information on
the proposals and a voting instruction form are available on the
Internet at http://www.ABBbondvote.com
Barclays Capital, Citigroup Global Markets Limited and Credit
Suisse First Boston (Europe) Limited are advising ABB Ltd. The
bonds have the following identifiers: ISIN Code: XS0147497217
Common Code: 014749721.
ABB (http://www.abb.com)is a leader in power and automation
technologies that enable utility and industry customers to
improve performance while lowering their environmental impact.
The ABB Group of companies operates in around 100 countries and
employs about 115,000 people.
ADECCO SA: Senior Unsecured Rating Downgraded to Ba1
----------------------------------------------------
Moody's Investors Service downgraded the ratings of Adecco after
the personnel services company announced it will postpone
financial reporting.
Adecco deferred the release of its audited full year 2003
results and its results for the first quarter of 2004. The
delay will require the company to seek a covenant waiver under
its EUR580 million, 5-year Syndicated Credit Facility.
Moody's fear that the control issues raised by the audit work
conducted by Adecco's auditors may be more extensive than
anticipated. It is nonetheless confident of the company's
operating fundamentals and liquidity situation.
The rating agency placed the ratings on review for possible
downgrade depending on the company's ability to obtain extension
of its bank credit availability and/or to publish audited
financial statements soon.
The ratings affected by the downgrade are:
(a) Meridian B.V.: Ba1 from Baa3 senior unsecured rating,
domestic currency issue.
(b) Adecco Financial Services (Bermuda) Ltd.: Ba1 from Baa3,
senior unsecured rating.
(c) Olsten Corporation: Ba1 from Baa3, senior unsecured rating
=============
U K R A I N E
=============
AGROHIM: Court Appoints Liquidator
----------------------------------
The Economic Court of Hmelnitski region declared OSC Letichivsk
enterprise Agrohim (code EDRPOU 05491362) insolvent and
introduced bankruptcy proceedings at the factory in March.
Arbitral manager Kovalchuk Irina Ivanivna (license AA 719840
approved February 23, 2004) has been appointed as a
liquidator/insolvency manager.
Agrohim holds account 26003207445 with APPB "Aval", MFO 315966.
CONTACT: AGROHIM
31500, Ukraine
Hmelnitski region, vct. Letichiv
50-richya Zhovtnya str., 105
Mrs. Kovalchuk Irina Ivanivna
Liquidator/Insolvency Manager
Ukraine, Hmelnitski
Teatralna str., 54, office 307, 309
HLIBOROB UKRAINI: Declared Insolvent
------------------------------------
The Economic Court of Vinnicya region declared LLC Hliborob
Ukraini (code EDRPOU 03734903) insolvent and introduced
bankruptcy proceedings at the factory in March. The case is
docketed as 5/250-04. Mr. Drezhenkov P. O. has been appointed
as a liquidator/insolvency manager.
Creditors have until May 15, 2004 to submit proofs of claim.
HLIBOROB UKRAINI holds account 26003301130525 with JSB
Prominvestbank Berdichiv branch, MFO 311357.
CONTACT: HLIBOROB UKRAINI LLC
22081, Ukraine
Vinnicya region
Hmelnitski district, Kustivtsi
Mr. Drezhenkov P. O., Liquidator
22000, Ukraine, Hmilnik, Kotsubinskogo lane, 5
ECONOMIC COURT OF VINNICYA REGION
21100, Ukraine, Vinnicya, Hmelnitske Shosse, 7
LEBEDINSKI RAJSPOZHIVSPILKA: Insolvent Status Confirmed
-------------------------------------------------------
The Economic Court of Sumi region declared Lebedinski Bread
Integrated Plant of SP Lebedinski Rajspozhivspilka (code EDRPOU
01733526 insolvent and introduced bankruptcy proceedings at the
factory on April 5, 2004. The case is docketed as 12/107.
Arbitral manager Mr. Babenko Eduard Vadimovich (license AA487826
approved as of April 20, 2003) has been appointed as a
liquidator/insolvency manager.
LEBEDINSKI RAJSPOZHIVSPILKA holds account 260053695 with SOD
APPB Aval, MFO 337483.
CONTACT: LEBEDINSKI RAJSPOZHIVSPILKA
42200, Ukraine
Sumi region, Lebedin, Vokzalna str., 5
Mr. Babenko Eduard, Liquidator/Insolvency Manager
04114, Ukraine, Kyiv
Polupanova str., 14,. 2nd floor
Phone/fax: 464-15-81, 464-15-85
ECONOMIC COURT OF SUMI REGION
40477, Ukraine
Sumi, Ribalko str., 2
ORSILMASH: Under Bankruptcy Supervision Procedure
-------------------------------------------------
The Economic Court of Zaporizhya region commenced bankruptcy
supervision procedure on OJSC Orsilmash (code EDRPOU 00238173)
in March. The case is docketed as 20-34/21-13. Arbitral
manager Mr. Vasilenko Roman Viktorovich (license AA 419242
approved as of October 21, 2002) has been appointed as a
Temporary Insolvency Manager.
Creditors have until May 16, 2004 to submit proofs of claim.
Orsilmash holds account 26007280074001 with ZRU CB Privatbank of
Zaporizhya, MFO 313399.
CONTACT: OJSC ORSILMASH
70502, Ukraine, Zaporizhya region
Orihiv, Ovcharenko str., 2
Mr. Vasilenko Roman, Temporary Insolvency Manager
69002, Ukraine, Zaporizhya
Chervonogvardijska str., 40,. Office 6
Phone: 8 (0612) 13-74-96.
ECONOMIC COURT OF ZAPORIZHYA REGION
69001, Ukraine, Zaporizhya, Shaumyana str., 4
SHID: Under Bankruptcy Supervision Procedure
-------------------------------------------
The Economic Court of Lugansk region commenced bankruptcy
supervision procedure on OJSC Lugansk Plant Shid (code EDRPOU
02969047) in March. The case is docketed as 11/18b. Arbitral
manager Mr. Ostrovski Vadim Anatoliyovich (license AA 250229
approved as of January 14, 2002) has been appointed as a
temporary insolvency manager.
Creditors have until May 15, 2004 to submit proofs of claim.
Shid holds account 260003000209 with JSB USB of Lugansk,
Leninski branch, MFO 304364.
CONTACT: SHID
91020, Ukraine, Lugansk, Rudneva str., 123
Mr. Ostrovski Vadim Anatoliyovich
Temporary Insolvency Manager
91000, Ukraine, Lugansk, Geroi VVV square., 2/32
ECONOMIC COURT OF LUGANSK REGION
91000, Ukraine, Lugansk, Geroiv VVV square., 3a
SIGMA-FENIKS: Declared Insolvent
--------------------------------
The Economic Court of Kyiv declared Sigma-Feniks LLC (code
EDRPOU 30973740) insolvent and introduced bankruptcy proceedings
at the factory in March. The case is docketed as 24/175-b.
Arbitral manager Mr. Lagutin Viktor Mihajlovich (license AA
249507 approved as of November 27, 2001) has been appointed as a
liquidator/insolvency manager.
CONTACT: SIGMA - FENIKS LLC
Ukraine, Kyiv, Horiva str., 24
Mr. Lagutin Viktor, Liquidator/Insolvency Manager
Phone/: (0472) 64-84-88;
Mobile: 8-050-464-04-34, 8-067-260-33-26
ZALIZOBETONNIH KONSTRUKTSIJ: Under Bankruptcy Supervision
---------------------------------------------------------
The Economic Court of Donetsk region commenced bankruptcy
supervision procedure on Collective Enterprise Donetsk Ferro-
Concrete Products Factory Zalizobetonnih Konstruktsij (code
EDRPOU 01235171) in March. The case is docketed as 15/48B.
Arbitral manager Mr. Haragirlo S. V. has been appointed as a
temporary insolvency manager.
On March 9, 2004 moratorium on creditors' claims was entered.
Creditors have until May 16, 2004 to submit their proofs of
claim.
Zalizobetonnih Konstruktsij holds account 26002301610694 with
PIB of Donetsk, Kujbishev branch, MFO 334408.
CONTACT: ZALIZOBETONNIH KONSTRUKTSIJ
83060, Ukraine, Donetsk, Sahtari Donbasu str., 1
Mr. Haragirlo S. V., Temporary Insolvency Manager
04114, Ukraine, Donetsk region, Makiivka,
Panchenko str., 11, DVAT Trest "Makiivvuglebud"
ECONOMIC COURT OF DONETSK REGION
83048, Ukraine, Donetsk, Artema str., 157
===========================
U N I T E D K I N G D O M
===========================
A1 CONSULTANTS: Creditors Meeting Set April 27
-----------------------------------------------
There will be a Creditors Meeting of the A1 Consultants Limited
Company on April 27, 2004 at 11:30 a.m. It will be held at the
offices of Singla & Co., 12 Devereux Court, Strand, London WC2R
3JL.
Creditors who want to be represented at the Meeting may appoint
proxies. Proxy forms must be submitted together with written
debt claims at Singla & Co., 12 Devereux Court, Strand, London
WC2R 3JL not later than 12:00 noon, April 26, 2004.
CONTACT: SINGLA & CO.
12 Devereux Court, Strand,
London WC2r 3JL
ABACUS MAINTENANCE: Creditors to Meet Next Week
-----------------------------------------------
There will be a Creditors Meeting of the Abacus Maintenance
Services Limited Company on April 28, 2004 at 11:00 a.m. It
will be held at the Russell room at The George Hotel, The High
Street, Crawley, West Sussex RH10 1BS.
Creditors who want to be represented at the Meeting may appoint
proxies. Proxy forms must be submitted with written debt claims
at Moore Stephens, Victory House, Admiralty Place, Chatham
Maritime, Kent ME4 4QU not later than 12:00 noon, April 27,
2004.
CONTACT: MOORE STEPHENS
Victory House
Admiralty Place, Chatham Maritime,
Kent ME4 4QU
ABERDEEN ASSET: Sends Circulars on Property Investment Arm Sale
---------------------------------------------------------------
Further to the announcement made on April 5, 2004 regarding the
proposed disposal of the entire issued share capital of each of
Aberdeen Property Investors International Limited (APII) and
Aberdeen Property Investors Limited (API) to Arlington
Securities Limited and Arlington Investment Management Limited,
respectively, a circular containing details of the disposal is
being posted to AAM shareholders. The circular contains a
notice convening an Extraordinary General Meeting of AAM for
10:00 a.m. on Friday, May 14, 2004 at which shareholder approval
for the disposal will be sought.
Copies of the Circular have been submitted to the U.K. Listing
Authority and will shortly be available for inspection at the
U.K. Listing Authority's Document Viewing Facility, which is
situated at:
Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
Phone: 020 7066 1000
Intelli Corporate Finance Limited, which is authorized and
regulated in the United Kingdom by the Financial Services
Authority, is acting for Aberdeen and no-one else in connection
with the transaction and will not be responsible to anyone other
than Aberdeen for providing the protections afforded to the
customers of Intelli Corporate Finance Limited or for giving
advice in relation to the transaction.
CONTACT: GAVIN ANDERSON & COMPANY
Martin Gilbert
Phone: 020 7463 6000
Mark Lunn
Phone: 020 7554 1400
INTELLI CORPORATE FINANCE
Gordon Neilly
Phone: 020 7653 6300
ACORNCLIFF LIMITED: Winding up Resolutions Passed
-------------------------------------------------
At an Extraordinary General Meeting of Acorncliff Limited on
March 30, 2004 held at Tarleton House, 112A-116 Chorley New
Road, Bolton BL1 4DH, the Special and Ordinary Resolutions to
wind up the Company were passed. Andrew David Rosler of Ideal
Corporate Solutions Limited, Tarleton House, 112A-116 Chorley
New Road, Bolton BL1 4DH has been appointed Liquidator for the
purpose of winding-up.
CONTACT: IDEAL CORPORATE SOLUTIONS LIMITED
Tarleton House
112A-116 Chorley New Road,
Bolton BL1 4DH
Contact:
Andrew David Rosler, Liquidator
CORUS GROUP: Russian Shareholder Drops Board Shake-up Plan
----------------------------------------------------------
Gallagher Holdings, the investment group controlled by Russian
metals executive Alisher Usmanov, did not push through with its
plan to nominate a representative at Corus' board.
Mr. Usmanov, 13.4% shareholder in the company, wanted to put Aad
van der Velden, a former steel manager at Corus, to influence
the management of the Anglo-Dutch steelmaker. But he dropped
the plan the night before the company's annual meeting
yesterday.
According to The Telegraph, Gallagher said: "We have held
extensive consultations with other Corus shareholders, some of
whom have indicated that, while they are supportive of the
proposal in principle, they would prefer to have more time to
assess the merits of Mr. Van der Velden's candidacy."
The withdrawal, though, does not mean the group has changed its
opinion of the way the company is run. Gallagher said it
continues to have "strong concerns" on the company's
performance, according to Bloomberg News.
EGG PLC: Narrows First-quarter Pre-tax Loss to GBP4.9 Million
-------------------------------------------------------------
"In the U.K. Egg has had a solid start to the year. First
quarter profits were GBP15 million and we added a further
148,000 net new customers. Unsecured lending balances continued
to grow strongly, with record personal loan drawdowns of GBP563
million in the period. Total balances outstanding on credit
cards and personal loans are now over GBP5 billion.
In France, as previously reported, we are managing discretionary
expenditure tightly as we await the conclusion of the ongoing
process whereby Prudential is considering proposals for its
shareholding in Egg. As a result losses in France for the
quarter reduced to GBP16 million."
Paul Gratton, CEO, Egg plc
Highlights:
Analysis of Group Profit and Loss Account:
Q1 2004 Q1 2003
GBPm GBPm
Egg UK Operating Profit 15.2 17.3
Egg France Operating Loss (15.8) (23.9)
Other International - (2.3)
Subsidiaries/Associates/JV's (0.7) (1.6)
Transaction Costs (1.3) -
Restructuring Costs (2.3) (5.2)
Group Loss before Tax (4.9) (15.7)
Group
(a) Group operating income up 26% to GBP120.3 million (Q1 2003:
GBP95.2 million)
(b) Group loss before tax of GBP4.9 million (Q1 2003: GBP15.7
million)
(c) Group loss per share was 0.7p (Q1 2003: 2.2p)
(d) Total group assets of GBP11.2 billion (Q1 2003: GBP10.5
billion)
U.K.
(a) Egg U.K. delivered an operating profit of GBP15.2 million
(Q1 2003: GBP17.3 million)
(b) 148,000 net new customers acquired in the first quarter (Q1
2003: 165,000)
(c) Unsecured lending balances grew by GBP238 million (Q1 2003:
GBP200 million) leading to quarter end balances of GBP5.0
billion (31 March 2003: GBP3.5 billion)
(d) Strong sales growth in personal loans with drawdowns of
GBP563 million, up 164% on Q1 2003 (GBP213 million).
(e) Credit quality remains strong and benchmarks continue to
show Egg's card portfolio significantly outperforming
industry norms.
France
(a) Operating loss of GBP15.8 million (EUR23.2 million) for Q1
reduced from GBP19.6 million (EUR27.6 million) in Q4 2003.
(b) Card balances growing to EUR186 million, up 9% on Q4 2003
(c) 71,000 cards in issue with 85% of card balances now
revolving
Chief Executive Paul Gratton said:
"The U.K. business has performed solidly in the first quarter.
Profits were GBP15 million and we have grown our customer base
by a further 148,000.
"Within unsecured lending in the U.K. we have seen net lending
growth of GBP238 million this quarter which is encouraging
compared to the GBP200 million growth in the same period last
year. Total balances now exceed GBP5 billion with credit cards
contributing GBP3 billion and personal loans GBP2 billion. We
continue to successfully cross sell personal loans into our
credit card customer base which has helped Egg to grow unsecured
lending balances in a traditionally quiet period for the card
market.
"The U.K. operating profit of GBP15 million was in line with
internal forecasts. Revenues grew almost 6% compared to Q4 2003
and 24% compared to the same period last year. Net interest
income growth has slowed as expected this quarter given the
margin pressures created by base rate increases. We expect
revenues to grow strongly again over the rest of the year as
card balances grow. Credit quality remains good and provision
levels reflect the continuing growth in the unsecured lending
portfolio, the stage in life cycle of the card and loan books
and the increasing proportion of personal loans in the book.
The bad debt charge for Q1 was 2.4% of average assets, in line
with our plans, and as we outlined within our preliminary
results we expect the charge to stay at this level for the rest
of 2004.
"In Egg France, as previously reported, our search for a
strategic partner has been superseded by Prudential considering
proposals for its shareholding in Egg. In the meantime we are
managing discretionary expenditure tightly as we wait the
conclusion of this process. This is reflected in the reduction
in quarterly losses from GBP20 million to GBP16 million."
To see full copy of results free of charge:
http://bankrupt.com/misc/Egg_Q12004.htm
CONTACT: EGG PLC
Media
Egg Press Office (main number)
Phone: 020 7526 2600
Emma Byrne
Phone: 020 7526 2565
Mobile: 07775 657 241
Analysts / Investors
Kieran Coleman
Phone: 020 7526 2648
Mobile: 07711 717 358
ESTABLISHED HOLDINGS: Hires David Rubin & Partners Liquidator
-------------------------------------------------------------
At an Extraordinary Meeting of the Members of the Established
Holdings Limited Company on April 7, 2004 held at 3 Bishopsgate,
London EC2N 3AB, the Special and Extraordinary Resolutions to
wind up the Company were passed. Asher Miller of David Rubin &
Partners, 1st Floor, 26-28 Bedford Row, London WC1R 4HE has been
appointed Liquidator for the purpose of such winding-up.
CONTACT: DAVID RUBIN & PARTNERS
1st Floor
26-28 Bedford Row,
London WC1R 4HE
Contact:
Asher Miller, Liquidator
FELLOWS PLANT: Creditors Meeting Set April 28
---------------------------------------------
There will be a Creditors Meeting of the Fellows Plant Hire
Limited Company on April 28, 2004 at 12:00 noon. It will be
held at 32 High Street, Manchester M4 1QD.
Creditors who want to be represented at the Meeting may appoint
proxies. Proxy forms must be submitted at Poppleton & Appleby,
32 High Street, Manchester M4 1QD not later than 12:00 noon,
April 27, 2004.
CONTACT: POPPLETON & APPLEBY
32 High Street, Manchester M4 1QD
Contact:
S J Wainwright, Joint Administrative Receiver
S Lord, Joint Administrative Receiver
FIZZ LIMITED: Meeting of Creditors Set April 28
-----------------------------------------------
There will be a Creditors Meeting of the Fizz (Underwear)
Limited Company on April 28, 2004 at 10:00 a.m. It will be held
at The Strathdon, Derby Road, Nottingham NG1 5FT.
Creditors who want to be represented at the Meeting may appoint
proxies. Proxy forms must be submitted together with written
debt claims at HKM Harlow Khandia Mistry, The Old Mill, 9 Soar
Lane, Leicester LE3 5DE not later than 12:00 noon, April 27,
2004.
CONTACT: HKM HARLOW KHANDIA MISTRY
The Old Mill
9 Soar Lane,
Leicester LE3 5DE
Contact:
Kirankumar Mistry, Joint Administrator
John Phillip Walter Harlow, Joint Administrator
GERALD STEVENS: Appoints Mazars Administrator
---------------------------------------------
Name of Company: Gerald Stevens Limited
Nature of Business: Retailer of Fitted Kitchens
Registered Office of Company:
7 Saint Petersgate, Stockport, Cheshire SK1 1EB
Trade Classification: Division 4: 22
Date of Appointment: April 15, 2004
Joint Administrative Receiver: MAZARS
Regent House, Heaton Lane,
Stockport SK4 1BS
Receiver:
T A Askham
(IP No 007905)
MAZARS
Gelderd Road, Gildersome,
Leeds LS27 7JN
Receiver:
P Charlton
(IP No 5838)
INFINEON TECHNOLOGIES: Maintains Performance in First Half
----------------------------------------------------------
Highlights of Second Quarter and 1st Half-Year Results for
Fiscal Year 2004:
(a) Infineon achieved higher revenues and maintained profit
level of previous quarter
(b) On a sequential basis, revenues of EUR1.671 million improved
by 3%, net income of EUR39 million increased by 15%, and
EBIT was consistent at EUR71 million
(c) Record sales in Automotive & Industrial; EBIT margins of
Secure Mobile Solutions improved based on productivity
measures and a better product mix in the security business;
significant volume growth more than offsets price decline in
Memory Products
(d) Continued solid gross cash position of EUR2.9 billion and
positive free cash flow of EUR53 million
(e) Management Board retains focus on growth, technology and
cost leadership: implementation of strategic goals on track
Infineon Technologies AG (FSE/NYSE: IFX), one of the world's
leading semiconductor manufacturers announced results for its
second quarter and first half of fiscal year 2004, ended March
31, 2004. In the second quarter, the company had revenues of
EUR1.671 billion, an increase of 3% sequentially and 13% year-
on-year. The sequential growth was mainly achieved through a
further increase in revenues from the Automotive & Industrial
business group, and higher sales volume for Memory Products.
The year-on-year increase also reflected significantly improved
Secure Mobile Solutions revenues. Sequential quarterly revenue
improved despite continued price decline in some product
segments, and the negative impact of the weakening U.S. dollar
exchange rate.
"In the second quarter, Infineon's business continued to develop
positively," said Max Dietrich Kley, acting CEO of Infineon
Technologies AG. "Business performance not only improved
because of the overall strong customer demand but also because
of improved productivity. By achieving this result, we have
reached another milestone on our path towards profitable growth.
We are confident that by executing on our strategic plan,
further progress can be shown during the remainder of this
fiscal year."
Earnings
Net income in the second quarter increased to EUR39 million,
compared to EUR34 million in the previous quarter, and a net
loss of EUR328 million in the second quarter of the last fiscal
year. Quarterly EBIT (Earnings Before Interest and Taxes) of
EUR71 million was comparable to the EUR70 million in the
previous quarter, and showed a substantial improvement from the
loss of EUR221 million in the second quarter of the last fiscal
year. The sequential quarterly earnings increase in Secure
Mobile Solutions and Corporate & Reconciliation offset lower
earnings in Memory Products and Other Operating Segments. The
reversal in Corporate & Reconciliation of a EUR32 million
provision for licenses which are no longer required due to a
favorable ruling in a legal proceeding, was substantially offset
by increased impairment charges, higher restructuring costs and
increased provisions for license and legal matters. The year-
on-year increase reflected reduced losses in Wireline
Communications, and significantly improved profitability for
Memory Products and Secure Mobile Solutions.
Basic and diluted earnings per share were consistent at EUR0.05
for the second and first quarter, and reflect a significant
year-on-year improvement from a loss per share of EUR0.45.
Expenses
Expenditures for Research and Development in the second quarter
totaled EUR304 million, or 18% of sales, increasing from EUR276
million, or 17% of sales, sequentially. The increase in
absolute terms mainly reflects increased development efforts in
the Memory Products and Automotive & Industrial segment.
Expenses for SG&A (Selling, General & Administrative) amounted
to EUR176 million, or 11% of total revenues, compared to EUR174
million, or 11% of total revenues in the previous quarter,
reflecting the company's continuing focus on cost control.
Liquidity
Infineon's gross cash position, representing cash and cash
equivalents, marketable securities and restricted cash, amounted
to EUR2.9 billion, increasing sequentially from EUR2.8 billion.
Free cash flow, representing cash from operating and investing
activities excluding purchases or sales of marketable
securities, significantly improved to EUR53 million, up
sequentially from negative EUR63 million in the previous
quarter. The improvements in both gross cash position and free
cash flow primarily reflect higher operating cash flows compared
to the previous quarter.
Regional development and Employee Data
Revenues outside Europe constituted 58% of total revenues, up
from 57% in the previous quarter. Sales in North America were
22% of total revenues, up sequentially from 20%. Sales in the
Asian market represented 35% of total revenues.
As of March 31, 2004, Infineon had approximately 33,600
employees worldwide, including approximately 6,500 engaged in
Research and Development.
Results for First Half of Fiscal Year 2004
Total revenues for the first half of fiscal year 2004 were
EUR3.29 billion, up 13% from EUR2.93 billion in the same period
last year. Net income for the first half of this fiscal year
amounted to EUR73 million, compared to a net loss of EUR368
million year-on-year. EBIT for the first half of this fiscal
year increased to EUR141 million, a significant improvement over
the EBIT loss of EUR250 million in the first half of the last
fiscal year.
To see full copy of financial results free of charge:
http://bankrupt.com/misc/InfineonH12004.pdf
CONTACT: INFINEON TECHNOLOGIES AG
Media Relations
Phone: +49 (0) 89 234 28480
Fax: +49 (0) 89 234 28482
E-mail: media.relations@infineon.com
Web site: http://www.infineon.com/news/
JCW INVESTMENTS: Shareholders Okay Winding up Resolutions
---------------------------------------------------------
At an Extraordinary General Meeting of the JCW Investments
Company on April 7, 2004 held at the offices of Volaw Trust &
Corporate Services Limited, PO Box 415, Templar House, Don Road,
St Helier, Jersey JE4 8WH, the Special and Ordinary Resolutions
to wind up the Company were passed. Stephen Goderski of
Geoffrey Martin & Co, 8-12 Brook Street, London W1K 5BU has been
appointed Liquidator of the Company for the purpose of the
voluntary winding-up.
CONTACT: GEOFFREY MARTIN & CO
8-12 Brook Street,
London W1K 5BU
Contact:
Stephen Goderski, Liquidator
J D CRANE: Creditors to Meet May 7
----------------------------------
There will be a Creditors Meeting of the J D Crane Group Limited
Company on May 7, 2004 at 10:00 a.m. It will be held at the
Millennium Hotel, George Square, Glasgow G2 1RR.
Creditors who want to be represented at the Meeting may appoint
proxies. Proxy forms must be submitted at Deloitte & Touche
LLP, Lomond House, 9 George Square, Glasgow G2 1QQ not later
than 12:00 noon, May 6, 2004.
CONTACT: DELOITTE & TOUCHE
Lomond House
9 George Square,
Glasgow G2 1QQ
Contact:
J C Reid, Joint Administrative Receiver
J B Stephen, Joint Administrative Receiver
KINGSCROFT INSURANCE: Claims Bar Date September 29
--------------------------------------------------
Kingscroft Insurance Company Limited
Walbrook Insurance Company Limited
El Paso Insurance Company Limited
Lime Street Insurance Company Limited
Mutual Reinsurance Company Limited
(together the KWELM Companies)
NOTICE UNDER THE SCHEME
Notice is hereby given that following approval of an Amending
Scheme of Arrangement dated 5th December 2003 (the Scheme) by
the requisite majorities of the KWELM Companies' Scheme
Creditors under Section 425 of the Companies Act 1985 of Great
Britain and, in respect of Mutual Reinsurance Company Limited
only, Section 999 of the Companies Act 1981 of Bermuda,
sanctioned by the English and Bermudian Courts and the making of
permanent injunction orders (Section 304 Orders) under Section
304 of the United States Bankruptcy Code by the U.S. Bankruptcy
Court, the provisions of the Scheme became effective on 2nd
April 2004 (the Amending Scheme Effective Date).
The Bar Date for the purposes of the Scheme is 11:59 p.m.
Greenwich Mean Time on 29th September 2004. Unless they have
agreed the quantum of their claim with the Scheme Administrators
under Part 2 of the Scheme before the Bar Date, Scheme Creditors
MUST submit a Claim Form and full Supporting Information to the
Scheme Administrators in accordance with Part 9 of the Scheme,
so as to be received by them before the Bar Date. Scheme
Creditors who do not make such a submission before the Bar Date
will not be entitled to receive any payments under the Scheme in
respect of Scheme Claims, which are not already established at
the Amending Scheme Effective Date.
The rates of interest to be used by the Scheme Administrators in
determining the net present value of future Scheme Claims
(including outstanding losses and IBNR) in accordance with the
Estimation Methodology based on the U.S. Treasury bond yields
published in the Financial Times on 2nd April 2004, range from
1.0% to 5.3% for claims which would become payable in 2004 to
2022 (or later years) respectively. A schedule of the rates of
interest applicable to each year from 2004 to 2022 and beyond is
available in the "Documents" tab of the KWELM Web site
http://www.kwelm.comor in hard copy from the KWELM Creditor
Helpdesk at John Stow House, 18 Bevis Marks, London EC3A 7JB,
United Kingdom or by e-mail from creditor.helpdesk@kwelm.com.
If you are a Scheme Creditor or believe yourself to be a Scheme
Creditor of any of the KWELM Companies and have not received by
7th May a letter dated 20th April 2004, including a notice in
the form of this advertisement please contact the Scheme
Administrators as soon as possible by e-mail at
scheme.admninistrator@kwelm.com or in writing to the Scheme
Administrators at John Stow House, 18 Bevis Marks, London, EC3A
7JB, United Kingdom.
By the Section 304 Orders, the Scheme has full force and effect
under United States law and is binding on and enforceable
against all Scheme Creditors in the United States that have
claims against the KWELM Companies, which claims are covered by,
or afforded treatment under the Scheme. Specifically, pursuant
to the Section 304 Orders, Scheme Creditors are restrained from
taking actions against the KWELM Companies, and parties are
enjoined from relinquishing or disposing of property of the
KWELM Companies, except as explicitly provided in the Scheme.
You are hereby given notice of these Orders, copies of which are
available from http://www.kwelm.com.
For communication purposes, the Scheme permits the Scheme
Administrators to treat those acting on behalf of Scheme
Creditors in the ordinary course (Representatives) as being
fully authorized to represent the Scheme Creditor concerned.
Accordingly, unless informed by the relevant Scheme Creditor in
writing to the contrary, where the Scheme Administrators have
previously been authorized by a Scheme Creditor to make payments
to Representatives or others they intend to correspond with and
make payments under the Scheme to those other parties.
If you have any queries in connection with this Notice please
contact the KWELM Creditor Helpdesk at the above address.
Copies of the documents referred to above are also available at
http://www.kwelm.com.
Christopher John Hughes
Ian Douglas Barker Bond
Scheme Administrators of the KWELM Companies
20th April 2004
LEEDS UNITED: Advisor Severs Ties
---------------------------------
Geoffrey Richmond has resigned as advisor of troubled football
club Leeds United, according to reports.
Leeds United announced his departure citing "health and personal
reasons" for the decision. The move has the support of the
board, the statement from Elland Road said.
Following his exit, board director and Geoffrey's son David
Richmond will take charge of all contract and transfer enquiries
involving Leeds players.
Mr. Richmond played a big role in the sale of the consortium
last month to Adulant Force Limited last month, but fans are
critical of his involvement in light of his decision to take
Bradford City, where he was former chairman, into
administration.
CONTACT: LEEDS UNITED
Trevor Birch Chief Executive
Phone: 0113 367 6000
Neil Robson Finance Director
Phone: 0113 367 6000
LINKGUARD LIMITED: Calls in Liquidator
--------------------------------------
At an Extraordinary General Meeting of the Members of the
Linkguard Limited Company on April 2, 2004 held at 29 Queen
Anne's Gate, London SW1H 9BU, the Special and Ordinary
Resolutions to wind up the Company were passed. John Arthur
Kirkpatrick has been appointed Liquidator for the purpose of
such winding-up.
MAYFLOWER CORPORATION: Sells Turbine Installation Ship
------------------------------------------------------
A management buy-out team financed by Japanese bank, Mizuho
International, bought Mayflower Resolutions' wind turbine
installation ship for only GBP12 million, says the Telegraph.
It is believed administrators agreed to sell the asset at the
knock-down price in desperation to find money to save the
remaining business of Mayflower, bus maker TranBus.
According to Nick Dargan, Deloitte & Touche administrator: "the
management buyout was the most viable option" to keep "the
business' key asset, the Mayflower Resolution vessel, remains in
the renewable energy sector and that the jobs of the remaining
employees are protected".
The ship was built for a cost of $95 million (GBP53 million).
It is able to lay underwater cables as well as install turbines.
It is unique as it can install up to 10 turbines without going
back to port.
So far, the 14,000-ton ship has completed only one contract
having been delivered only in February.
OBSERVICES SECURITY: Creditors Meeting Set May 3
------------------------------------------------
There will be a Creditors Meeting of the Observices Security
Group Limited Company on May 3, 2004 at 10:00 a.m. It will be
held at the offices of Rothman Pantall, 26-27 Oxendon Street,
London SW1Y 4EP.
Creditors who want to be represented at the Meeting may appoint
proxies. Proxy forms must be submitted together with written
debt claims at 26-27 Oxendon Street, London SW1Y 4EP not later
than 12:00 noon, May 2, 2004.
CONTACT: ROTHMAN PANTALL
26-27 Oxendon Street,
London SW1Y 4EP
Contact:
R D Smailes, Joint Administrator
PRO BUILD: Hires Mazars Administrator
-------------------------------------
Name of Company: Pro Build Shopfitters Limited
Nature of Business: Shopfitters
Registered Office of Company:
Unit 6, Hurstfield Industrial Estate, Hurst Street, Stockport,
Cheshire SK5 7BB
Trade Classification: Division 2: 11
Date of Appointment: April 15, 2004
Joint Administrative Receiver: MAZARS
Regent House, Heaton Lane,
Stockport SK4 1BS
Receiver:
T A Askham
(IP No 007905)
MAZARS
Gelderd Road, Gildersome,
Leeds LS27 7JN
Receiver:
P Charlton
(IP No 5838)
SDC COMMUNICATIONS: Appoints Receivers from Kroll Limited
---------------------------------------------------------
Name of Company: SDC Communications Limited
Nature of Business: Other Business Activities
Trade Classification: 7487
Date of Appointment: April 13, 2004
Joint Administrative Receiver: KROLL LIMITED
Aspect Court,
4 Temple Row,
Birmingham B2 5HG
Receivers:
G S Johal
A J Wolstenholme
(IP Nos 5770, 8995)
SEVSEN LIMITED: Appoints Liquidator from Harris Lipman
------------------------------------------------------
At an Extraordinary General Meeting of the Members of the Sevsen
Limited Company on April 2, 2004 held at the offices of Harris
Lipman, 2 Mountview Court, 310 Friern Barnet Lane, Whetstone,
London N20 0YZ, the Special and Ordinary Resolutions to wind up
the Company were passed. Martin J Atkins of Harris Lipman, 2
Mountview Court, 310 Friern Barnet Lane, Whetstone, London N20
0YZ has been appointed Liquidator for the purpose of such
winding-up.
CONTACT: HARRIS LIPMAN
2 Mountview Court
310 Friern Barnet Lane, Whetstone,
London N20 0YZ
Contact:
Martin J Atkins, Liquidator
STEEL KING: Hires Rothman Pantall Administrator
-----------------------------------------------
Name of Company: Steel King Limited
Nature of Business: Retail and Wholesale Footwear
Trade Classification: 13 Wholesale of Textiles and Clothing
Date of Appointment: April 6, 2004
Joint Administrative Receiver: ROTHMAN PANTALL
26-27 Oxendon Street,
London SW1Y 4EP
Receivers:
Robert Smailes
Stephen Ryman
(IP Nos 4731, 8975)
*********
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.
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