/raid1/www/Hosts/bankrupt/TCREUR_Public/040804.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
E U R O P E
Wednesday, August 4, 2004, Vol. 5, No. 153
Headlines
D E N M A R K
LEGO COMPANY: To Appeal Adverse Ruling in Toy Brick Patent Case
F R A N C E
ALSTOM SA: Raises EUR1.065 Billion in Fresh Capital
EURO DISNEY: Creditors Extend Covenant Waivers Anew
EURO DISNEY: No Deadline Set for Prince to Approve Rescue Plan
PERRIER: Nestle Drops Reorganization Plan; Opts for Brand Sale
RHODIA SA: Results Improve Despite Challenging Environment
VALIANCE FIDUCUIAIRE: UBS Rejects Request for Redundancy Funds
G E R M A N Y
CO.DON AG: Strikes Distribution Deal with Croma in Austria
HEIDELBERGCEMENT AG: Questions Emissions Trading Act in Court
KARSTADTQUELLE: New Chairman Mulls Sale of Karstadt Fitness, DSF
SIEMENS AG: Vows to Improve Results at Mobile Phone Unit
I R E L A N D
UNIFI EUROPE: To Close Letterkeny Plant in October
I T A L Y
APRILIA: Turns Down Ducati; Begins Talks with Piaggio
NAPOLI: Naples Court Commences Bankruptcy Proceedings
PARMALAT FINANZIARIA: Settles U.S. SEC Lawsuit
PARMALAT FINANZIARIA: Chinese Plants Close Shop
POLIGRAFICA FAUSTINO: 1st-half Loss Widens Despite Brisk Sales
N E T H E R L A N D S
GETRONICS N.V.: Performance Improves Despite Hesitant ICT Market
HEAD N.V.: To Discuss Second-quarter Results August 12
LAURUS N.V.: Withdraws Scoubidou Strings from Shelves
ROYAL SHELL: Acknowledges Moody's Confirmation of Ratings
N O R W A Y
PAN FISH: Considers Shelving Fish Farming Plans in Scotland
R U S S I A
ELECTRO TECHNOLOGICAL: Court Sets October 18 Hearing
ETALON-SERVIS: Undergoes Bankruptcy Supervision Procedure
KHIM-ZAVOD-STROY: Creditors Must File Claim Before August 19
KRASNAYA GORA: Court Sets September 28 Hearing
LAYSKY SHIP-REPAIR: Undergoes Bankruptcy Supervision Procedure
MALKINSKY KOOP-ZAGOT-PROM: Bankruptcy Supervision Begins
OKA-OBUV: Deadline for Proofs of Claim August 18
RUSSIAN BANKS: Central Bank Withdraws Licenses of Small Banks
SOLIKAMSKAYA PTITSA: Under Bankruptcy Procedure
VOLOGODSKY FACTORY: Vologda Court Sets November 11 Hearing
VYAZM-AGRO: Under Bankruptcy Supervision
YUKOS OIL: Freed from Fine, But Could Face Additional Tax Claim
S L O V A K R E P U B L I C
SKLOOBAL NEMSOVA: Court Calls off Bankruptcy
U K R A I N E
CHUGUEVAGROSHLYAHBUD: Bankruptcy Proceedings Launched
GOLOPRISTANSKIJ RJAGROBUD: Declared Insolvent
METRON: Bankruptcy Proceedings Begin
PERVOMAJSKIJ RAJAGROPOSTACH: Court Names Liquidator
TARASHAMILKPRODUCT: Kyiv Court Affirms Insolvency
VESNA-K: Proofs of Claim Deadline Expires August 10
VIGOR: Lviv Court Appoints Insolvency Manager
U N I T E D K I N G D O M
AA MUTUAL: Hires Joint Administrators from PwC
ADEPT TECHNOLOGY: Brings in Liquidator from Arrans
AMBER TV: Winding up Resolutions Passed
AZURE INTEGRATION: Calls in Liquidator
BOILER WORKSHOP: Members OK Extraordinary Winding up Resolution
CAVALRY SHEET: Sets Creditors Meeting August 11
EQUITABLE LIFE: Actuaries Accused of Misleading Policyholders
ESSO MARINE: Names Liquidator from Baker Tilly
EXCELPRINT LIMITED: Creditors Meeting Set August 9
GREAT BRITISH: Appoints Begbies Traynor Administrator
G WYATT: Hires Liquidator from Poppleton & Appleby
HALLCO 1019: Hires Joint Liquidators from Baker Tilly
ICP EUROPE: Names Harrisons Administrator
JARVIS PLC: Sells Interest in Ultramast for GBP2.8 Million
NETWORK CELLULAR: Creditors Meeting Set August 9
NETWORK RAIL: Steps Up Effort to Improve Operation
NETWORK RAIL: Welcomes Government's Plan for Railways
PXP INTERNATIONAL: Hires Moore Stephens Liquidator
QUEENS MOAT: Shareholders Vote Against Pre-emption Rights
RIEJU LIMITED: Appoints Joint Administrators from Mazars
SAMOLS ROWSON: Hires Liquidator from Baker Tilly
SHARETREE SYSTEMS: Creditors Meeting Set August 9
S.P. BELL: Names David Ruben & Partners Administrator
S & S OF LEEK: Appoints Joint Administrators from Baker Tilly
STUART INTERIORS: Sets Creditors Meeting August 11
VALLEYHILL LTD.: Administrative Receivers Sell 30 Pubs
WH SMITH: Divests Hodder Headline for GBP223 Million
WH SMITH: Rating Lowered to 'BB-'; Outlook Stable
WINDMILL PROPERTY: Calls in Liquidator
*********
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D E N M A R K
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LEGO COMPANY: To Appeal Adverse Ruling in Toy Brick Patent Case
---------------------------------------------------------------
The Office for Harmonisation in the Internal Market (OHIM) in
Alicante, Spain rendered a first instance decision declaring the
registration of the shape of the LEGO(R) eight-knob brick
invalid upon a request filed by Mega Bloks, Inc., a Canadian
company which also manufactures construction toy elements, and
in particular construction toy bricks that have an identical
appearance to the well-known LEGO bricks. The decision is not
final as an appeal can -- and will -- be filed with the Boards
of Appeal of the OHIM.
The LEGO Company filed its application for the registration of
the three-dimensional trademark consisting of the shape of its
well-known LEGO brick as early as April 1996. The mark was
recognized as being distinctive of the LEGO Company and
registered in October 1999. Shortly after that, Mega Bloks
requested that the registration be declared invalid. It alleged
that the shape for which the trademark protection had been
granted was necessary to achieve the specific function of a
construction toy brick, and that it was incapable of being
recognized by consumers as an indicator of its commercial
origin, but would rather be seen as a toy brick.
"During the proceedings we were able to show that the shape in
question is very widely recognized as being the that of a LEGO
brick, in other words, that consumers clearly associate the
commercial source of such a brick immediately with the company
that makes it, says Poul Hartvig Nielsen, Head of Legal Affairs
of the LEGO Company.
"We have also proven that there is no technical need to use
precisely that shape in order to produce a toy brick that would
interconnect with another in the way the LEGO bricks do, but
that there are plenty of different possibilities to make
interconnecting toy bricks without using the distinctive shape
of the LEGO brick. Nevertheless, on this last point the first
instance cancellation division followed the argument that the
existence of alternative shapes was irrelevant, that the shape
was functional and that it could not therefore be granted
trademark protection."
The LEGO Company is a privately held, family-owned company,
based in Billund, Denmark. The Company is one of the world's
leading manufacturers of play materials for children, employing
approximately 8,000 people globally. The LEGO Company is
committed to the development of children's creative and
imaginative abilities, and its employees are guided by the motto
adopted in the 1930s by the founder Ole Kirk Christiansen: "Only
the best is good enough."
CONTACT: LEGO COMPANY
Corporate Communications
Charlotte Simonsen
Director, Press Relations
Phone: (+45) 79 50 65 79
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F R A N C E
===========
ALSTOM SA: Raises EUR1.065 Billion in Fresh Capital
---------------------------------------------------
French engineering giant Alstom S.A. completed Friday the first
part of its restructuring plan, Les Echos says. Selling new
shares at EUR45 cents apiece, Alstom raised EUR1.065 billion in
fresh capital, which included a EUR185 million subscription from
the French government.
Under its restructuring plan, the government may convert into
shares up to EUR500 million in outstanding loans, provided this
will not raise its stake above 31.5%. The second phase of the
restructuring requires banks to similarly convert EUR635 million
in outstanding loans. This part of the plan remains uncertain,
according Les Echos.
EURO DISNEY: Creditors Extend Covenant Waivers Anew
---------------------------------------------------
Euro Disney S.C.A., operator of Disneyland Resort Paris,
reported Monday that the requisite number of lenders has agreed
to extend the current debt covenant waivers from July 31, 2004
to September 30, 2004. The Walt Disney Company (TWDC) and
Caisse des Depots et Consignations (CDC) have also agreed to
defer through the extended waiver period amounts owed on the
Company's line of credit and previously deferred interest,
respectively.
As previously disclosed on June 29, 2004, the requisite number
of lenders approved an extension of the current debt covenant
waivers to July 31, 2004, to allow all of the lenders sufficient
time to review and approve the Memorandum of Agreement (MOA)
that was signed by the Company, TWDC and the CDC and approved by
the Steering Committee of the Company's other lenders on June 8,
2004.
The MOA requires unanimous lender approval to become effective.
Certain lenders have not provided their approval, which has
resulted in ongoing negotiations between the Company, TWDC and
its lenders regarding the content of the MOA.
If these negotiations are not successful, TWDC and the Company's
lenders would be able to demand payments for amounts owed after
expiration of the extended waiver period, which the Company
would not be able to satisfy.
Commenting on the recent developments, Jeffrey R. Speed, Senior
Vice-President and Chief Financial Officer of Euro Disney S.A.,
said: "While the financial restructuring process is continuing
in order to obtain lender consent, we continue to believe that a
prompt resolution remains in the best interest of all
stakeholders. We are intent on achieving resolution as soon as
possible, thereby allowing the Company's resources to be focused
entirely on profitably growing the business."
Revenues for the Nine Months Ended June 30, 2004
The Company also announced that resort revenues were flat for
the first nine months over the corresponding period of the prior
year despite softness in the European travel and tourism market.
Theme park revenue growth of 4% over the prior year for the nine
months ended June 30, 2004, was offset by the effect of reduced
occupancy in owned and operated hotels as well as a planned
reduction in real estate development. The reduced hotel
occupancy reflects increased capacity from on-site, third-party
hotels that opened last year.
Disneyland Resort Paris total revenues, including its Real
Estate Segment, decreased 1% for the nine months ended June 30,
2004 to EUR740.4 million compared to EUR747.6 million on a pro
forma basis for the corresponding period of the prior year.
(Unaudited) Variation
Nine Months Ending June
30,
Pro Forma1
(EUR in millions) 2004 2003 Amount %
Segment Revenues
Theme Parks 366.1 352.6 13.5 4 %
Hotels and
Disney Village 290.7 307.1 (16.4) (5)%
Other 76.8 75.8 1.0 1 %
Resort Segment 733.6 735.5 (1.9) - %
Real Estate Segment 6.8 12.1 (5.3) (44) %
Total Revenues 740.4 747.6 (7.2) (1) %
---------
Footnote:
[1] Effective from the beginning of fiscal year 2004, the
Company implemented mandatory new accounting rules with respect
to the consolidation of financing companies that are not legally
controlled by the Company. As a result, prior-year revenues
have been presented on a pro forma basis as if this change had
been in effect during the prior year. As-reported revenues for
the nine months ended June 30, 2003 amounted to EUR748.2
million.
Theme park revenues increased 4% over the prior year to reach
EUR366.1 million for the nine months ended June 30, 2004
primarily as a result of higher average spending per guest,
partially offset by slightly lower theme park attendance.
Hotels and Disney Village revenues decreased 5% for the nine
months ended June 30, 2004 to EUR290.7 million, as a result of
lower average hotel occupancy rates, partially offset by
slightly higher average daily guest spending per room.
Revenues generated by the Real Estate Segment were EUR6.8
million, reflecting a decrease versus the prior year of EUR5.3
million, in line with our expectations.
For the quarter ended June 30, 2004, total revenues decreased 3%
to EUR266.6 million from a prior-year pro-forma amount of
EUR275.4 million. Resort Segment revenues decreased 2% to
EUR264.5 million compared to EUR268.6 million in the pro-forma
prior year. Although third quarter theme park revenues
increased 1% reflecting higher average guest spending, theme
park attendance, hotel occupancy and average daily guest
spending per room were below prior-year levels. The third
quarter was also adversely affected versus the prior year by a
reduction in the number of European mid-week holidays in May.
Real Estate Segment revenues decreased EUR4.7 million during the
quarter to EUR2.1 million.
Reduced revenues and higher operating costs, including the
reinstatement of royalties and management fees at their full
contractual rates, increased marketing and sales efforts, as
well as costs associated with the financial restructuring, will
result in a significant increase in the Company's net loss for
the fiscal year ended September 30, 2004 versus the prior year.
At June 30, 2004, the Company had available cash and liquidity
of EUR62.7 million, consisting of EUR20 million of available
cash and cash equivalents (EUR68.4 million in cash and cash
equivalents less EUR48.4 million belonging to the consolidated
financing companies), plus EUR42.7 million of available
liquidity under the TWDC line of credit. Management believes
the Company has sufficient liquidity through the waiver
extension period.
Andre Lacroix, Chairman and Chief Executive Officer of Euro
Disney S.A., said: "Our revenues for the first nine months
reflect a relatively strong performance in an otherwise soft
market for European travel and tourism. We remain confident
concerning the growth potential of Disneyland Resort Paris, the
number one tourist destination in Europe. We are focused on
profitably growing our business through innovative product
development and strong sales and marketing efforts in each of
our core markets. An excellent example of our innovative
product development is the new Lion King Show, which was
launched on June 26. This dynamic stage production has already
begun to delight standing-room only crowds in the Disneyland
Park."
Euro Disney S.C.A. and its subsidiaries operate the Disneyland
Resort Paris which includes: Disneyland Park, Walt Disney
Studios Park, seven themed hotels with approximately 5,800 rooms
(excluding 2,033 additional third-party rooms located on the
site), two convention centers, Disney Village, a dining shopping
and entertainment center, and a 27-hole golf facility. The
Group's operating activities also include the management and
development of the 2,000-hectare site, which currently includes
approximately 1,000 hectares of undeveloped land. Euro Disney
S.C.A.'s shares trade in Paris (SRD), London and Brussels.
CONTACT: EURO DISNEY S.C.A.
Philippe Marie
Corporate Communication
Phone: +331 64 74 59 50
Fax: +331 64 74 59 69
E-mail: philippe.marie@disney.com
Sandra Picard-Rame
Investor Relations
Phone: +331 64 74 56 28
Fax: +331 64 74 56 36
E-mail: sandra.picard@disney.com
Web site: http://www.eurodisney.com
EURO DISNEY: No Deadline Set for Prince to Approve Rescue Plan
--------------------------------------------------------------
Euro Disney Spokesman Peter Boterman says there is no fixed
deadline for Prince al-Waleed bin Talal to join other
shareholders in supporting the company's restructuring plan.
The company has postponed its plan to restructure EUR2.4 billion
of debts a couple of times now. Recently, creditors delayed
until September the deadline for an agreement with lenders, as
some of them have rejected the proposal. The company plans to
increase capital by EUR250 million, claiming with such
refinancing it won't be able to repay its entire debt. In
November, the theme park operator based in France suspended debt
payments to core shareholder, The Walt Disney Co.
According to people close to the prince, he is willing to talk
about the latest debt problems. His attitude towards the plan
is unclear, however.
Euro Disney suffered heavily from the drop in tourism and travel
after the September 11 attacks. The company, though, assured it
has sufficient fund to continue operating until the end of
September.
PERRIER: Nestle Drops Reorganization Plan; Opts for Brand Sale
--------------------------------------------------------------
Nestle will sell its water brand, Perrier, in the coming months,
just-drink.com reports, citing French weekly newspaper Journal
du Dimanche.
It has been previously hoped that the selloff will be called off
upon agreement between the labor union and management regarding
an early retirement package. But last week, Nestle Waters
France said it has decided to cancel an industrial
reorganization at the plant since majority of the labor unions
are opposed to it. The company had hoped to shed 1,047 jobs by
2007 via early retirement.
RHODIA SA: Results Improve Despite Challenging Environment
----------------------------------------------------------
Rhodia S.A. published its results for the second quarter of
2004, which were reviewed July 28 by the Board of Directors.
Highlights for the Period
(1) Continued volumes growth despite a challenging environment
marked by the weakness of the U.S. dollar and the rise in raw
material prices, particularly benzene and its derivatives.
(2) Clear improvement of EBITDA before restructuring costs (+
16.5% compared with the second quarter of 2003 on the same basis
(constant structure and exchange rates), for the third
consecutive quarter.
(2) Implementation, on schedule, of the cost-cutting program
that should generate by 2006 more savings than initially
forecast with restructuring costs slightly under budget.
Signed divestitures of approximately EUR870 million since the
beginning of the year:
(a) Expected proceeds, net of tax and miscellaneous expenses, of
approximately EUR760 million, significantly higher than the
target set for 2004,
(b) EUR344 million cash received as of the end of June.
EUR620 million reduction in Total Net Debt for the second
quarter 2004 and increase in the Group's current liquidity
(including available bank facilities) to EUR778 million as of
the end of June 2004 compared to EUR409 million as of the end of
March 2004, due primarily to proceeds from divestitures and the
capital increase.
Simplified income statement for the second quarter of 2004
In millions of euros
2003 2003
Reported Restated* 2004
1,408 1,349 Net sales 1,411
127 115 EBITDA
(before restructuring costs) 134
9.1% 8.6% EBITDA margin
(before restructuring costs) 9.5%
123 113 EBITDA
(after restructuring costs) 77
8.7% 8.4% EBITDA margin
(after restructuring costs) 5.5%
13 5 Operating income - 35
-87 Net income
(after minorities) 42
---------
Footnote:
* Constant structure and exchange rates
(a) Continued improvement in EBITDA before restructuring costs
In a business environment that remains difficult due in large
part to the persistent weakness of the U.S. dollar and the
continued rise in raw material prices (particularly benzene
derivatives), Rhodia reported Net Sales of EUR1.411 million for
the second quarter of 2004, stable compared with the same period
last year. On the same basis (constant structure and exchange
rates), net sales rose 4.5% compared with the second quarter of
2003.
This volume growth was strongly driven by increased demand,
particularly in Asia and in the United States, in almost all of
the Group's businesses. Rhodia also continues to implement a
strong policy of increasing its selling prices, thereby
generating an additional EUR10 million compared with the second
quarter of 2003. This positive impact, however, was partially
offset by the evolution in the value of the U.S. dollar
(negative translation effect of EUR8 million).
In the second quarter of 2004 the Group actively implemented its
cost reduction program and has generated incremental savings of
EUR38 million since the beginning of the year compared with the
same period in 2003, in line with the EUR103 million target set
for 2004.
For the third consecutive quarter, Earnings Before Interest,
Taxes, Depreciation and Amortization (EBITDA) before
restructuring increased, rising to EUR134 million for the second
quarter of 2004, up 5.5% compared with the same period last
year. On the same basis (constant structure and exchange
rates), EBITDA increased 16.5% compared with the second quarter
of 2003. EBITDA margin before restructuring rose to 9.5% in the
second quarter of 2004, compared to 9.1% in the second quarter
of 2003.
After restructuring costs, EBITDA stood at EUR77 million in the
second quarter of 2004, a 37 % decrease compared with the same
period in 2003 and a 32 % decrease on the same basis (constant
structure and exchange rates), due primarily to the increase in
provisions booked for restructuring charges (EUR54 million).
Restructuring charges also impacted Operating Income, which
stood at a negative -EUR35 million for the second quarter of
2004 compared with a positive EUR13 million for the second
quarter of 2003.
Interest expenses, which rose by a total of EUR45 million in the
second quarter of 2004 compared with the same period in 2003,
stood at EUR82 million. These expenses include interest on
servicing Group debt (EUR50 million) and extraordinary financial
expenses due to the debt restructuring (EUR32 millions). In the
future, extraordinary financial expenses will be amortized until
March 2006 at around EUR10 million per quarter.
Net results (after minority interests) stood at EUR42 million
for the second quarter of 2004 compared with a negative -EUR87
million for the same period in 2003. This improvement reflects
the impact of asset divestitures booked during the second
quarter of this year.
(b) The Group records a significant reduction (EUR620 million)
in its total net debt
The Group continued to maintain tight control over its Capital
Expenditures, which stood at EUR38 million in the second quarter
of 2004. During the second quarter of this year, Working
Capital Requirements returned to a level comparable to last
year. The improvement in the Group's funds from operations
offsets the impact of the cost of the restructuring plan: the
Group's free cash flow stood at -EUR5 million for the second
quarter of 2004.
Net Debt fell by 17.5% compared with the end of March 2004 to
reach a total of EUR2.385 million at the end of June. Total Net
Debt, which includes off-balance sheet items, stood at EUR2.916
million at the end of June 2004, down from EUR3.536 million in
March 2004. This EUR620 million-decrease reflects the impact of
the capital increase as well as the impact of the divestitures
completed during the second quarter.
The Group's current liquidity (including available bank
facilities) increased to EUR778 million in the second quarter of
2004, compared with EUR409 million in the first quarter of this
year.
(c) Substantial progress in implementing recovery plan: focus on
cost-cutting
(i) Consolidation of the Group's medium-term financing -
Completed
With the reimbursement, during the second quarter of this year,
of the second half of the private placement with U.S. investors
and more than 90% of its EMTN program maturing in 2005, the
Group has successfully completed its refinancing plan and
secured its medium-term liquidity.
(ii) Refocusing of the business portfolio - Largely
Completed
During the first six months of the year, Rhodia has received
proceeds of EUR344 million in cash from divestitures. With the
finalization, in the third quarter, of the remaining signed
transactions, Rhodia will have completed divestitures during the
year worth approximately EUR870 million, representing an average
EBITDA multiple of around 10. Net of adjustments for divestment
expenses and taxes, proceeds from divestitures will reach a
total of approximately EUR760 million, substantially greater
than the 700 million euro target set for 2004.
(iii) Streamlining of Group structure and cost-cutting -
Well-advanced
The Group is on schedule with the restructuring plan adopted in
2003 and is making sustained progress. At the end of June 2004,
37% of the "personnel reduction part" of the plan has been
completed (491 employees out of the 1,329 identified worldwide).
In France, with the information/consultation process now
complete, individual departures are beginning.
Rhodia has revised its objectives to account for the impacts of
the divestiture program and now forecasts savings of EUR323
million in 2006 compared to an initial target of EUR298 million.
The Group forecasts restructuring costs below what had been
initially anticipated. Restructuring cash costs should amount
to EUR111 million in 2004 (EUR50 million incurred as of the end
of June 2004), compared with the EUR155 million initially
forecast.
The overall restructuring costs over the next three years should
amount to 325 million compared with EUR335 million initially
budgeted. Restructuring expenses will impact results by EUR150
million in 2004 (of which EUR80 million was accounted for in the
first semester) and approximately EUR100 million in 2005.
Outlook
At the end of June 2004, the Group's performance is in line with
the objectives defined in its recovery plan. Rhodia benefited
from good volumes in almost all of its businesses, from a more
favorable pricing dynamic and from the initial impacts of its
restructuring plans.
In the second half of the year, the business environment is
expected to remain challenging due to high prices for raw
materials and uncertainty on exchange rates. The Group's
operating performance during this period should reflect the
impact of divestitures and seasonal effects on its business
activities noted in previous years, to reach a level lower than
that achieved during the first six months of the year. However,
EBITDA before restructuring for the full year 2004 should
improve compared to 2003, on a constant basis of structure and
exchange rates.
Update of Legal Proceedings
Rhodia offers an update of its principal ongoing legal
proceedings since the publication of its annual report for 2003.
With regard to the settlement involving waste storage at the
former phosphorus manufacturing plant at Silver Bow, Montana,
Rhodia Inc. paid this quarter the US$18 million penalty that was
part of the settlement. The precise terms of the remediation
measures are under study in consultation with the relevant
regulatory authorities.
In connection with the proceeding against Aventis and certain
Rhodia Directors before the Tribunal de Commerce de Paris,
Edouard Stern and Finance and Trading Ltd., a company of which
he is a director, recently withdrew their claims for personal
damages from the Paris court. Finance and Trading has re-filed
this personal damage claim with the Supreme Court of the State
of New York; another shareholder (Lakonia Management Limited)
has joined in this proceeding. They claim damages of
approximately EUR68 million. Rhodia would be a defendant in the
New York proceeding, along with Aventis and certain Rhodia
Directors, but has not yet received official notification.
Financial Statements are available free of charge at:
http://bankrupt.com/misc/Rhodia_Q2004.pdf
CONTACT: RHODIA S.A.
Press Relations
Anne-Laurence de Villepin
Phone: +33 1 55 38 40 25
Investor Relations
Nicolas Nerot
Phone: +33 1 55 38 43 08
VALIANCE FIDUCUIAIRE: UBS Rejects Request for Redundancy Funds
--------------------------------------------------------------
Representatives of Valiance Fiduciaire's trade unions went to
London last week to ask the group's majority shareholder UBS
Private Equity to finance its redundancy plan, Le Monde says.
But the parent company of UBS Private Equity, which controls 80%
of Valiance Fiduciaire, said Friday it is not prepared to
finance any plan drawn up by Valiance's future owner. Last
week, union representatives also took up the matter with the
French finance ministry in Paris and the UBS management in
Switzerland, but came back empty-handed.
Valiance, which employs 3,000 personnel, registered debts worth
EUR94 million while the Valiance group as a whole posted a
turnover of EUR185 million. Valiance Fiduciaire was placed into
receivership on July 26, 2004.
CONTACT: Direction Commerciale France
Phone: 04 72 19 24 60
E-mail: valiance@valiance.fr
Direction de la communication Groupe
Phone: 04 72 19 22 49
Web site: http://www.valiance.fr/index4.php
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G E R M A N Y
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CO.DON AG: Strikes Distribution Deal with Croma in Austria
----------------------------------------------------------
The German biopharmacetical company co.don(R) AG (ISIN
DE0005173603) intends to distribute its product for the
regeneration of intervertebral discs, co.don
chondrotransplant(R) DISC, via the Austrian company Croma Pharma
GmbH. Both companies agreed upon the major issues of a
distribution agreement to be signed as soon as legal details are
clarified. The Management Board of co.don(R) AG expects to
receive the necessary authorization from the Supervisory Board.
Croma Pharma GmbH, Leobendorf, Austria, was founded in 1976 and
became a leading supplier of innovative medical devices and
pharmaceuticals for the Austrian orthopaedic market. With 95
employees the company has EUR23 million sales volume. For
co.don chondrotransplant(R) DISC Croma expects a market
potential of 200 units p.a.
The distribution in Austria via CROMA Pharma GmbH is a result of
the company's new strategy from April 2004, which aims at
complementing co.don's own sales force by international partners
in order to profitably cover European markets.
co.don(R) AG
Management Board
co.don(R) AG is one of the leading enterprises in the area of
Regenerative Medicine/Tissue Engineering. Since 1997, co.don(R)
develops, manufactures and distributes "cell-based" biomedical
products for the regeneration of cartilage, bone and
intervertebral discs. The enterprise is headquartered in
Teltow, near Berlin, Germany. For more information, visit
http://www.codon.de.
* * *
In April, the company said it reduced its annual cash-burn in
2004 by one-third and introduced restructuring measures, thus
ensuring sufficient liquidity until 2005.
CONTACT: CO.DON AG
Natalia Kourakina-Lattner
Director of Corporate Communications
Phone: +49 (0) 3328-434635
Fax: +49 (0) 3328-434649
E-mail: ir@codon.de
HEIDELBERGCEMENT AG: Questions Emissions Trading Act in Court
-------------------------------------------------------------
HeidelbergCement AG has taken legal steps against the German
laws on emissions trading. These laws place a completely
unreasonable burden on the cement industry in Germany. The
Group would like to bring about a decision by the German Federal
Constitutional Court (Bundesverfassungsgericht) regarding the
constitutionality of the Emissions Trading Act this year, i.e.
before the commencement of the first trading period, if
possible.
To this end, HeidelbergCement has instituted legal proceedings
with the competent Administrative Courts (Verwaltungsgerichte)
for locations in Baden-Wurttemberg and Bavaria. The Group
refers to its operating licenses, which were granted for an
indefinite period and which allow the CO2 emissions necessary
for its operation. According to the legislation previously in
force, it is not possible to withdraw or shorten the duration of
these licenses.
However, the Greenhouse Gases Emissions Trading Act
(Treibhausgas-Emissionshandelsgesetz or TEHG) states that the
emissions allowances are to be withdrawn from the plant
operators, with no transitional period or compensation, so that
the Federal Environmental Office (Umweltbundesamt) can
redistribute them based on the allocation plans issued by the
Federal Government. HeidelbergCement would be permanently
committed to the low production levels of the 2000-2002
reference period and thus lose 40-50 % of its licensed plant
capacity with corresponding long-term job effects.
Hans Bauer, Chairman of the Managing Board of HeidelbergCement
and Chairman of the Association of the German Cement Industry,
says that HeidelbergCement fulfils the demanding Group and
industry targets for the reduction of CO2 emissions: "The legal
action is aimed at the excessively burdensome implementation of
this legislation in Germany, which is unacceptable under the
rule of law.
"The energy and capital-intensive cement industry is up against
tough international competition and relies on a comparable
economic environment. HeidelbergCement welcomes emissions
trading. However, with the Federal Government re-equipping and
re-arming this market-economy instrument to make it the Trojan
horse of planned-economy production control, there is an
imminent danger of cement production moving abroad. This makes
no sense for either the economy or the climate."
Bauer asks the Federal Government and the E.U. Commission to
postpone the commencement of emissions trading for a year, in
view of the need for clarification of the constitutional
position and the associated risks for the continued existence of
the trading system, but also in view of the host of issues yet
to be clarified.
* * *
In March, Standard & Poor's Ratings Services revised its outlook
on Germany-based cement producer, HeidelbergCement AG, to stable
from negative, reflecting an expected stabilization of the
group's performance due to a reduction in downward pressure from
the German cement market.
At the same time, the 'BB+' long-term and 'B' short-term
corporate credit ratings, and the ratings on all outstanding
debt of HeidelbergCement and its related entities were affirmed.
"Although HeidelbergCement's performance will likely continue to
be further affected by weak volumes and prices in the German
cement market in the near term, the lowest point seems to have
been reached in 2003," said Standard & Poor's credit analyst Eve
Greb. "In particular, prices appear to be recovering after all
major players in the industry announced price increases over the
past few months, which will likely have a positive effect on
HeidelbergCement's performance from 2004."
KARSTADTQUELLE: New Chairman Mulls Sale of Karstadt Fitness, DSF
----------------------------------------------------------------
German retailer KarstadtQuelle admitted Monday it was holding
talks with potential buyers for its Karstadt Fitness chain of
gyms, Deutsche-Welle says.
In an interview over the weekend, newly appointed KarstadtQuelle
Chairman Christoph Aschenbach told Deutsche-Welle the fitness
unit is no longer part of the company's core business.
Previously owned by U.S.-based 24 Hour Fitness, KarstadtQuelle
acquired the unit just last year.
A spokesman also told the paper separately that the company is
in talks with Starbucks over the terms of its contract covering
the 31 Starbucks outlets in Germany. KarstadtQuelle holds the
local franchise of these coffee chains. The renegotiation was
prompted by its forecast that these outlets will continue to
incur losses until 2007.
The company is also considering selling its 40% stake in cable
sports broadcaster DSF, as part of its restructuring strategy,
according to Deutsche-Welle. KarstadtQuelle acquired DSF in
April 2003. The company, meanwhile, made it clear it would not
sell its shares in travel company Thomas Cook.
SIEMENS AG: Vows to Improve Results at Mobile Phone Unit
--------------------------------------------------------
Siemens AG, Europe's largest electronics and electrical
engineering firm, has decided to turn around its unprofitable
mobile-phone unit rather than turn away from it, Bloomberg News
reports.
Lothar Pauly, who will head Siemens's expanded
telecommunications unit from October told a press conference in
London: "We have three alternatives -- fix, close or sell...We
have decided to go for a fix."
The company's loss from mobile phones more than doubled to EUR88
million (US$106 million) in the quarter through June. This is
mainly due to price competition and costs of switching
production to a new phone series. Mr. Pauly said the loss is
due to "outdated" handset selection, software "deficiencies"
and an imbalanced geographic focus.
Mr. Pauly said management will turn the business around within
18 months. They plan to do this through cost-cutting, doubling
engineering workforce in China, and introducing new handsets.
The company announced at the meeting in London four new phones,
the 65 series, will go on sale on second half of this year.
Andre Jaekel, a London-based analyst at ABN Amro Bank N.V., who
rates the shares "add" affirmed the decision. "It's the most
realistic solution," he said. According to him, a closure will
incur huge costs, and entail thousands of job losses.
CONTACT: SIEMENS AG
Wittelsbacherplatz 2
D-80333 Munich, Germany
Phone: +49-89 636-00
Fax: +49-89 636-52 000
Homepage: http://www.siemens.de
=============
I R E L A N D
=============
UNIFI EUROPE: To Close Letterkeny Plant in October
--------------------------------------------------
Unifi Europe will shut down its plant in Letterkeny after 21
years in the textile business, according to the Bizworld.
The management of the U.S.-owned company confirmed that due to
lack of cost competitiveness they decided to close the plant.
The process, which will affect all its 280 workers, is expected
complete in October. Since last year the yarn company has made
250 redundancies. It cut a further 160 earlier this year.
Unifi Europe started its operation in 1983, employing 800
staffs. It is one of the world's largest producers and
processors of textured yarn. It was at its peak the largest
industrial employer in Letterkeny.
=========
I T A L Y
=========
APRILIA: Turns Down Ducati; Begins Talks with Piaggio
-----------------------------------------------------
Aprilia, the troubled Italian motorcycle and scooter group,
turned down Sunday the offer of Italian motorcycle group Ducati,
La Stampa says.
Ducati, which won a two-week exclusive audience with Aprilia,
had offered to plough EUR50 million into the troubled firm and
create a bad company to takeover its debts. Ducati also
proposed to adopt various measures to reschedule Aprilia's debt,
which include a ten-year extension of a EUR100 million bond and
a debt-to-equity swap. Aprilia's creditor banks, however, are
not willing to take up any stake in the company that has around
EUR350 million of debts.
Aprilia's refusal to accept Ducati's offer opens the way for
another bidder, Piaggio. This rival scooter company is offering
to inject EUR50 million into Aprilia, guarantee its bonds, repay
a EUR30 million bridging loan and take out another EUR70 million
in credit.
Aprilia Chairman Candido Fois, who stepped into the role two
months ago to replace majority owner Ivano Beggio, believes the
two groups can still improve their offers.
NAPOLI: Naples Court Commences Bankruptcy Proceedings
-----------------------------------------------------
A Naples court on Monday declared the Napoli soccer club
bankrupt, Xinhua News Agency says.
The team, which has estimated debts of EUR70 million, was
relegated by the Italian Soccer Federation (FIGC) in July to the
third division from Serie B because of its poor financial
standing. At the time of the bankruptcy declaration, Napoli was
appealing the relegation at an administrative court in Rome.
Monday's ruling effectively makes the appeal moot and academic.
Napoli now has to be re-founded from scratch.
In the 1980's, Napoli was considered one of Italy's best clubs
when Argentine Diego Maradona steered it to league titles in
1987 and 1990, and a UEFA Cup crown. Things turned awry after
Maradona left in 1991. The club was eventually relegated to
Serie B, where it had been the past six seasons.
PARMALAT FINANZIARIA: Settles U.S. SEC Lawsuit
----------------------------------------------
The U.S. Securities and Exchange Commission filed an amended
complaint in its lawsuit against Parmalat Finanziaria S.p.A. in
U.S. District Court in the Southern District of New York. The
amended complaint alleges that the company engaged in one of the
largest financial frauds in history and defrauded U.S.
institutional investors when it sold them more than US$1 billion
in debt securities in a series of private placements between
1997 and 2002. Simultaneously with the filing of the amended
complaint, Parmalat Finanziaria consented to the entry of a
final judgment settling the Commission's action against it. The
settlement is subject to the Court's entry of the proposed
judgment.
The complaint the Commission filed alleges among other things
that:
(a) Parmalat Finanziaria consistently overstated its level of
cash and marketable securities. For example, at year-end
2002, Parmalat Finanziaria overstated its cash and
marketable securities by at least EUR2.4 billion. As of
year-end 2003, Parmalat Finanziaria had overstated its
assets by at least EUR3.95 billion (approximately
US$4.9 billion).
(b) As of September 30, 2003, Parmalat Finanziaria had
understated its reported debt of EUR6.4 billion by at
least EUR7.9 billion. Parmalat Finanziaria used various
tactics to understate its debt, including:
(i) Eliminating approximately EUR3.3 billion of debt held
by one of its nominee entities;
(ii) Recording approximately EUR1 billion of debt as
equity through fictitious loan participation
agreements;
(iii) Removing approximately EUR500 million of liabilities
by falsely describing the sale of certain receivables
as non-recourse, when in fact the company retained an
obligation to ensure that the receivables were
ultimately paid;
(iv) Improperly eliminating approximately EUR300 million
of debt associated with a Brazilian subsidiary during
the sale of the subsidiary;
(v) Mischaracterizing approximately EUR300 million of
bank debt as inter-company debt, thereby inappropriately
eliminating it in consolidation;
(vi) Eliminating approximately EUR200 million of Parmalat
S.p.A. payables as though they had been paid when, in
fact, they had not; and
(v) Not recording a liability of approximately EUR400
million associated with a put option.
(c) Between 1997 and 2003, Parmalat S.p.A. transferred
approximately EUR350 million to various businesses owned
and operated by Tanzi family members.
(d) Parmalat Finanziaria transferred uncollectible and
impaired receivables to "nominee" entities, where their
diminished or nonexistent value was hidden. As a result,
Parmalat Finanziaria carried assets at inflated values
and avoided the negative impact on its income statement
that would have been associated with a proper reserve or
write-off of bad debt.
(e) Parmalat Finanziaria used these same nominee entities to
fabricate non-existent financial operations intended to
offset losses of its operating subsidiaries. For
example, if a subsidiary experienced losses due to
exchange rate fluctuations, the nominee entity would
fabricate foreign exchange contracts to offset the
losses. Similarly, if a subsidiary had exposure due to
interest rate fluctuations, the nominee entity would
fabricate interest rate swaps to curb the exposure.
(f) Parmalat Finanziaria used the nominee entities to
disguise inter-company loans from one subsidiary to
another subsidiary that was experiencing operating
losses. Specifically, a loan from one subsidiary would
be made to another subsidiary operating at a loss. The
recipient then improperly applied the loan proceeds to
offset its expenses and thereby increase the appearance
of profitability. As a result, rather than have a
neutral effect on the consolidated financials, the loan
transaction served to inflate both assets and net income.
(g) Parmalat Finanziaria recorded fictional revenue through
sales by its subsidiaries to controlled nominee entities
at inflated or entirely fictitious amounts. In order to
avoid unwanted scrutiny due to the aging of the
receivables associated with these fictitious or
overstated sales, the related receivables would be
transferred or sold to nominee entities.
In its consent, Parmalat Finanziaria has agreed, without
admitting or denying the allegations of the amended complaint,
to be permanently enjoined from violating Section 10(b) of the
Securities Exchange Act of 1934 and Exchange Act Rule 10b-5, as
well as Section 17(a) of the Securities Act of 1993. In
addition, Parmalat Finanziaria has agreed to adopt changes to
its corporate governance to promote future compliance with the
federal securities laws, including:
(i) Adopting by-laws providing for governance by a
shareholder-elected board of directors, the majority
of whom will be independent and serve finite terms;
(ii) Specifically delineating in the by-laws the duties of
the board of directors;
(iii) Adopting a Code of Conduct governing the duties and
activities of the board of directors;
(iv) Adopting an Insider Dealing Code of Conduct; and
(v) Adopting a Code of Ethics.
The by-laws will also require that the positions of chairman of
the board of directors and managing director be held by two
separate individuals. Parmalat Finanziaria's consent also
provides for the continuing jurisdiction of the U.S. District
Court to enforce its provisions.
The Commission's investigation into federal securities law
violations related to the fraud at Parmalat Finanziaria is
continuing.
A full-text copy of the SEC's revised complaint is available for
free at http://www.sec.gov/litigation/complaints/comp18803.pdf.
(Parmalat Bankruptcy News, Issue No. 25; Bankruptcy Creditors'
Service, Inc., 215/945-7000)
PARMALAT FINANZIARIA: Chinese Plants Close Shop
-----------------------------------------------
Parmalat Finanziaria's plants in Zhaodong City of Heilongjiang
Province and Tianjin Municipality in China have shut down,
according to reports.
"Our mainland production base in Tianjin has stopped production
for two months, and we are conducting an overhaul now while
awaiting instructions from Italy," a Parmalat official told AFX-
Asia.
A joint venture operation with Nanjing Dairy is said to have
stopped running too. The Chinese company is said to have
already taken over the business. Parmalat had injected US$8.5
million in the joint venture and held a 65% stake in it.
POLIGRAFICA FAUSTINO: 1st-half Loss Widens Despite Brisk Sales
--------------------------------------------------------------
Poligrafica San Faustino booked a higher first-half loss
compared to last year, despite a 12% increase in sales, Il Sole
says.
The company's operating profit for the period dropped from
EUR1.58 million in 2003 to EUR1.56 million, pushing gross loss
upwards to EUR.20 million from only EUR.13 million last year.
First-half sales improved to EUR18.6 million. Net debt slightly
dropped from EUR3.76 million at the end of March to EUR3.44
million at the end of June this year.
* * *
The company offers printing, graphics and other Internet
services. Its 900,000 shares, carrying a nominal value of
EUR5.16, is listed on the Nuovo Mercato, a market dedicated to
companies with high growth potential. The Frigoli family holds
56.67% of PSF; the rest of the capital stock is "freely-
negotiable shares."
A copy of the financial statements is available free of charge
at http://bankrupt.com/misc/poligrafica_faustino.pdf.
CONTACT: Poligrafica S. Faustino S.p.A.
Via Valenca, 15
25030 Castrezzato
Brescia Italy
Phone: 030.7049.1
Fax: 030.7049.280
E-mail: info@psf.it
Investor Relations Office
Anna Lambiase
Phone: 030.70491
E-mail: ir@psf.it
Web site: http://www.psf.it/
=====================
N E T H E R L A N D S
=====================
GETRONICS N.V.: Performance Improves Despite Hesitant ICT Market
----------------------------------------------------------------
Highlights of second-quarter and half-year 2004 results:
(a) Improved operational performance achieved in ongoing
business, compared to second-quarter of 2003
(i) Gross margin improved to 17.6% in second-quarter of 2004
compared to 17.0% in second-quarter of 2003
(ii) EBITA increased by 31% to EUR17 million in second-
quarter of 2004, representing 2.8% of revenue (Q2 2003:
EUR13 million, representing 1.9% of revenue, excluding
exceptional items)
(b) Net result of EUR4 million in second-quarter of 2004,
resulting in -EUR12 million for the first half year 2004
(c) EBITA per employee increased by 41% to EUR787 in second-
quarter of 2004 compared to EUR558 in second-quarter of 2003
(d) Net cash of EUR36 million (versus -EUR6 million at 31
December 2003)
(e) The balance sheet was strengthened: the solvency ratio
improved to 30.2% (30 June 2003: 16.7% and 31 December 2003:
15.4%)
(f) Revenue declined due to the Company's focus on the quality
of revenue, its strategy to de-emphasize product revenue,
continuing pricing pressure, and currency impact
(g) Getronics' strategy is to defend and extend its market
share through cost-leadership in its core business of
Network and Desktop Outsourcing (NDOS). The company will
accelerate its moves to provide a higher proportion of
managed services from remote locations
(h) New commercial opportunities increased across the globe in
the second quarter of 2004, but conversion to contracted
revenue is expected to take at least another six to nine
months. This is due to continuing economic uncertainty,
particularly in Western Europe
CEO's Comment
Says Klaas Wagenaar, CEO of Getronics said: "The operational
performance of Getronics continues to improve despite a hesitant
and highly competitive ICT market. Management has control of
the Company's cost structure and we will maintain our efforts to
achieve cost-leadership in our core business of Network and
Desktop Outsourcing. As part of this cost-leadership strategy,
Getronics will accelerate its moves to provide a higher
proportion of managed services from remote locations, such as
Mexico and Hungary.
With a renewed service offering portfolio and go-to-market
model, a continuing focus on cost-effective and flexible global
delivery, and a blue-chip client base that strongly appreciates
our flexible high quality solutions, we believe that we will
achieve further improvements in our operational performance in
line with our EBITA improvement targets".
A full copy of the report is available free of charge at:
http://bankrupt.com/misc/Getronics_Q22004.pdf
* * *
On July 9, 2004, TCR-Europe reported that Standard & Poor's
Ratings Services assigned its 'B+' senior secured debt rating
and a recovery rating of '4' to the new EUR175 million (US$216
million) credit facilities of The Netherlands-based IT services
and products provider Getronics N.V. (B+/Positive/--).
The facilities comprise a EUR100 million revolving credit
facility and a EUR75 million acquisition facility, both maturing
in 2007. The bank loan has been rated 'B+', the same level as
the corporate credit rating on the group because, despite the
loan's secured status, recovery expectations are less than 100%
in the event of default.
CONTACT: GETRONICS N.V.
Media Relations
Phone: +31 20 586 1982
Fax: +31 20 586 1455
E-mail: media@getronics.com
Investor Relations
Phone: +31 20 586 1581
Fax: +31 20 586 1455
E-mail: investor.relations@getronics.com
HEAD N.V.: To Discuss Second-quarter Results August 12
------------------------------------------------------
A conference call to discuss the second-quarter results of Head
N.V. for 2004 will be held on Thursday August 12, 2004 at 15:00
London time.
Head Chairman and CEO Johan Eliasch will host a conference call
on Thursday August 12 2004 at 3:00 p.m. London time (10:00 a.m.
New York). He will be joined by Ralf Bernhart, Chief Financial
Officer and Clare Vincent, Head of Investor Relations. They
will discuss Head's results for the three- and six-month periods
ending 30 June 2004.
A presentation, which will be discussed during the conference
call, will be available on the Investor Relations section of our
Web site (http://www.head.com)prior to the conference call on
the 12 August 2004.
You can join the conference call using these Country Phone
Numbers: U.K. - 0800 953 0937; Europe - +44 1452 569 103; U.S.A.
- 1866 224 2914.
Please note that there will not be an audio link on the web
site. A transcript of the conference call will be posted on the
investor relations section of our Web site. A Replay Service is
also available until August 22 2004, the dial in numbers are:
U.K. - 0800 953 1533; Europe - +44 1452 550 000; U.S.A. - 1866
247 4222; Access Code 1609212#.
About Head
Head N.V. is a leading global manufacturer and marketer of
premium sports equipment.
Head N.V.'s ordinary shares are listed on the New York Stock
Exchange ("HED") and the Vienna Stock Exchange ("HEAD").
Its business is organized into four divisions: Winter Sports,
Racquet Sports, Diving and Licensing. We sell products under
the Head (tennis, squash and racquetball racquets, alpine skis
and ski boots, snowboards, bindings and boots), Penn (tennis and
racquetball balls), Tyrolia (ski bindings), and Mares/Dacor
(diving equipment) brands.
We hold leading positions in all of our product markets and our
products are endorsed by some of the world's top athletes
including Andre Agassi, Marat Safin, Rainer Schuttler and Maria
Riesch.
For more information, please visit http://www.head.com
* * *
In May, Head N.V. announced its results on for the three months
ended 31 March 2004 compared to the three months ended 31 March
2003. It reported that its net revenues increased by 28.3% to
$94.4 million; operating loss before restructuring costs
decreased by US$4.0 million to US$4.4 million; Operating loss
decreased by US$4.2 million to US$4.6 million; and net loss
increased by US$4.5 million to US$14.4 million.
CONTACT: HEAD N.V.
Clare Vincent
Investor Relations
Phone: +44 207 499 7800
Fax: +44 207 629 4399
E-mail: htmcv@aol.com
Ralf Bernhart
Chief Financial Officer
Phone: +43 1 70 179 354
Fax: +43 1 707 8940
LAURUS N.V.: Withdraws Scoubidou Strings from Shelves
-----------------------------------------------------
Pending the findings of research by the Netherlands Food and
Consumer Products Safety Authority into the release of harmful
substances by Scoubidou strings, Laurus N.V. announces that the
product has been withdrawn from sale at its Edah and Super De
Boer stores. The product is not included in the Konmar
Superstores range.
Laurus and the road to recovery
With distinctive retail formats, each with its individual
identity and commercial policy and each independently addressing
its specific market segment, Laurus aims in the coming years to
strengthen significantly its position as the second-largest
player in the Dutch food retailing sector. The company is
resolutely pursuing its step-by-step recovery plan, which runs
until the end of 2007, while closely monitoring its operating
costs and back-office processes on a continuous basis.
ROYAL SHELL: Acknowledges Moody's Confirmation of Ratings
---------------------------------------------------------
Royal Dutch and Shell Transport received on Friday, 31 July
2004, this advice from Moody's Investors Service: Moody's
Confirms Aa1 Ratings of Royal Dutch/Shell Entities with Negative
Outlook; Coral Energy Holdings Downgraded to A2; Other
Subsidiary Ratings Stabilized.
Moody's Investors Service confirmed the Aa1 long-term debt
ratings of the guaranteed subsidiaries of the Royal Dutch/Shell
Group of companies with a negative outlook. Ratings confirmed
included the Aa1 long-term securities of Shell Finance
(Netherlands) B.V. and Shell Finance (U.K.) PLC. The Prime-1
guaranteed commercial paper ratings of both entities were not
under review and are affirmed. At the same time, Moody's
confirmed the Aa2 Issuer Rating and certain IRBs of Shell Oil
Company and the A1 preferred stock of Shell Frontier Oil & Gas,
both with a stable outlook. The Issuer Rating of Coral Energy
Holding, L.P. was downgraded to A2 from A1, also with a stable
outlook maintained.
The confirmation of the Aa1 ratings for the guaranteed
subsidiaries of the Royal Dutch Shell Group (Shell) reflects the
remedial actions already taken and management's resolve and
ability to address flaws in corporate governance, management
accountability, and reserve booking practices, as well as
upstream competitive positioning, that were revealed when Shell
de-booked some 4.4 billion BOE of reserves and restated its
financial statements during the first half of 2004. These
remedial actions include the replacement of key senior
management positions, an extensive overhaul of petroleum reserve
audit practices, and establishment of a Steering Committee that
is mandated to study and recommend changes in governance and the
dual board and legal structures of the Shell Group.
Moody's believes Shell has both the commitment and the
managerial resources to address these issues. However, the
negative outlook reflects uncertainties over timing as well as
the scope and direction of governance and legal structural
changes to be recommended by the Steering Committee. Management
has set an aggressive calendar for announcing the committee's
proposals, but execution risk remains a concern for an
organization with over a century of commercial, managerial and
cultural traditions tied to Shell's existing dual structure.
Another factor implicit in the negative outlook is that Shell's
competitive positioning in global exploration and production,
while formidable, has suffered relative to its highest rated
industry peers with regard to asset life, petroleum reserve
replacement and production growth.
The rating confirmation reflects Moody's expectation that the
Steering Committee recommendations directionally will be an
improvement for Shell. Moody's plans to evaluate the proposals
in line with corporate governance best practices, and believes
the rating outlook could stabilize as the committee initiatives
unfold in the next year.
Concerning the upstream, re-positioning the operations and
restoring top tier metrics will necessarily take time. Shell
has presented expectations of a relatively flat production
profile in the near-term, with prospects for growth in 2006 and
beyond as development spending on a number of major projects
takes place. Over the next year or two Moody's will re-evaluate
Shell's upstream positioning relative to its highest rated
peers. Shell's ability to demonstrate progress and greater
certainty in these areas would also help stabilize the Aa1
rating outlook.
Moody's confirmation of Shell Oil Company's Aa2 Issuer rating
and the A1 rating of the preferred stock of its subsidiary,
Shell Frontier Oil and Gas, both with stable outlooks, reflects
their ownership, strategic importance to, and integration with
Shell's global operations, but also the repayment of virtually
all of Shell Oil's third party debt over the last few years as
it has been re-financed via inter-company funding.
Coral Energy Holding's A2 Issuer Rating and stable outlook
likewise reflect Coral's continuing strategic importance to
Shell's global and North American natural gas strategies, and
Shell's demonstrated support of the venture in the form of
capital, sizable liquidity facilities, and Shell Oil Company's
guarantee of Coral Energy's long-term tolling obligations. The
downgrade of the Issuer Rating to A2 reflects notching from
Shell Oil's Aa2 rating and the marginally weaker nature of Shell
Group and Shell Oil supports in the wake of their prior
downgrades. It also incorporates Moody's view that Coral Energy
benefits from considerable ratings uplift above its fundamental
credit quality, given the liquidity risks and earnings and cash
flow volatility that characterize wholesale energy trading.
The Royal Dutch/Shell Group comprises on of the world's largest
integrated petroleum companies through the combined holdings of
Royal Dutch Petroleum and Shell Transport and Trading,
headquartered in the Hague and in London, England, respectively.
===========
N O R W A Y
===========
PAN FISH: Considers Shelving Fish Farming Plans in Scotland
-----------------------------------------------------------
Pan Fish Scotland is re-thinking its controversial plan to
develop smolt farm in the Tweed river system, The Scotsman
learned.
The GBP4 million-project in Kendal met widespread criticism on
fears it could kill off one of the world's outstanding strains
of wild Atlantic salmon. It threatens, in effect, Tweed
angling, an industry worth an estimated GBP15 million a year to
the local economy, and source of job for more than 500 people.
Iain Somerville, Pan Fish Scotland's commercial director, told
The Scotsman of the "review of possibilities" for the trout farm
on the River Ettrick at Selkirk.
Mr. Somerville said: "We have had confidential discussions with
a number of parties regarding its future, and have received
expressions of interest related to both farming and non-farming
activities.
"These discussions are continuing, but a number of issues will
need to be clarified before a decision can be taken. Meanwhile,
the site has been fallowed and will be kept on a care-and-
maintenance basis."
"[T]here would be any development in relation to a smolt unit in
the short term," according to him.
The Pan Fish group narrowly escaped bankruptcy after suffering
heavy losses. Its business was secured by a refinancing package
from Norwegian banks.
===========
R U S S I A
===========
ELECTRO TECHNOLOGICAL: Court Sets October 18 Hearing
----------------------------------------------------
The Arbitration Court of Tomsk region commenced bankruptcy
supervision procedure on federal state unitary enterprise Tomsky
Electro Technological Factory. The case is docketed as A67-
4702/04. Mr. Y. Borisov has been appointed temporary insolvency
manager.
Creditors are asked to submit their proofs of claim to 634034,
Russia, Tomsk, Kuleva Str. 33. A hearing will take place at
Russia, Tomsk, Kirpva Str. 10, Hall 2, Lodgment 311 on October
18, 2004, 10:00 a.m.
CONTACT: TOMSKY ELECTRO TECHNOLOGICAL FACTORY
Russia, Tomsk,
Kirova Str. 51
Mr. Y. Borisov
Temporary Insolvency Manager
634034, Russia,
Tomsk, Kuleva Str. 33
ETALON-SERVIS: Undergoes Bankruptcy Supervision Procedure
---------------------------------------------------------
The Arbitration Court of Kaluga region commenced bankruptcy
supervision procedure on LLC industrial commerce company Etalon-
Servis. The case is docketed as A23-1065/04-B-17-41. Ms. S.
Polikanova has been appointed temporary insolvency manager.
Creditors are asked to submit their proofs of claim to 248009,
Russia, Kaluga, post User Box 447. A hearing will take place on
August 10, 2004.
CONTACT: ETALON-SERVIS
248002, Russia,
Kaluga, Boldina Str. 57
Ms. S. Polikanova
Temporary Insolvency Manager
248009, Russia,
Kaluga, Post User Box 447
KHIM-ZAVOD-STROY: Creditors Must File Claim Before August 19
------------------------------------------------------------
The Arbitration Court of Volgograd region commenced bankruptcy
supervision procedure on LLC Khim-Zavod-Stroy. The case is
docketed as A12-11228/04-s50. Mr. A. Pshenkov has been
appointed temporary insolvency manager.
Creditors have until August 19, 2004 to submit their proofs of
claim to 400078, Russia, Volgograd, Lenina Pr. 79-102. A
hearing will take place on October 28, 2004.
CONTACT: KHIM-ZAVOD-STROY
400059, Russia,
Volgograd, Gubkina Str. 13A
Mr. A. Pshenkov
Temporary Insolvency Manager
400078, Russia,
Volgograd, Lenina Pr. 79-102
KRASNAYA GORA: Court Sets September 28 Hearing
----------------------------------------------
The Arbitration Court of Moscow region commenced bankruptcy
supervision procedure on OJSC Krasnaya Gora (TIN 5004000554).
The case is docketed as A41-K2-6879/04. Mr. G. Avagimyan has
been appointed temporary insolvency manager.
Creditors had until July 19, 2004 to submit their proofs of
claim to the temporary insolvency manager. A hearing will take
place at the Arbitration Court of Moscow region, Room 440 on
September 28, 2004, 2:00 p.m.
CONTACT: KRASNAYA GORA
143644, Russia, Moscow Region,
Volokolamsky region, Krasnaya Gora
Mr. G. Avagimyan
Temporary Insolvency Manager
111141, Russia, Moscow,
1st Proezd Perova polya, 11A
Phone: 306-65-93
LAYSKY SHIP-REPAIR: Undergoes Bankruptcy Supervision Procedure
--------------------------------------------------------------
The Arbitration Court of Arkhangelsk region commenced bankruptcy
supervision procedure on OJSC Laysky Ship-repair Plant. The
case is docketed as A05-4703/04-28. Mr. V. Kiselev has been
appointed temporary insolvency manager.
Creditors had until July 19, 2004 to submit their proofs of
claim to the temporary insolvency manager. A hearing will take
place at Russia, Arkhangelsk, Loginova Str. 17 on October 18,
2004, 2:00 p.m.
CONTACT: LAYSKY SHIP-REPAIR PLANT
Russia, Arkhangelsk Region,
Primorsky Region, Laysky Dok,
Tsentralnaya Str. 9
Mr. V. Kiselev
Temporary Insolvency Manager
164046, Russia,
Arkhangelsk, Vyucheyskogo Str. 57,
Building 1, Apartment 35
MALKINSKY KOOP-ZAGOT-PROM: Bankruptcy Supervision Begins
--------------------------------------------------------
The Arbitration Court of Kabardino Balkariya republic commenced
bankruptcy supervision procedure on LLC Malkinsky Koop-Zagot-
Prom. The case is docketed as A20-3352/02. Mr. Y.
Kartofelnikov has been appointed temporary insolvency manager.
Creditors are asked to submit their proofs of claim to 360000,
Russia, Kabardino Balkariya republic, Nalchik, Lermontova Str.
54, Office 203.
CONTACT: MALKINSKY KOOP-ZAGOT-PROM
361700, Russia,
Kabardino Balkariya Republic,
Zolsky region, Malka,
Lenina Str. 214
Mr. Y. Kartofelnikov
Temporary Insolvency Manager
360000, Russia,
Kabardino Balkariya Republic,
Nalchik, Lermontova Str. 54,
Office 203
OKA-OBUV: Deadline for Proofs of Claim August 18
------------------------------------------------
The Arbitration Court of Orel region declared shoe factory OJSC
Oka-Obuv (TIN 5751021388) insolvent and introduced bankruptcy
proceedings. The case is docketed as A48-4649/03-16B. Mr. A.
Nogtenko has been appointed insolvency manager. Creditors have
until August 18, 2004 to submit their proofs of claim to 302010,
Russia, Orel, Aviatsionnaya Str. 5.
CONTACT: OKA-OBUV
Russia, Orel,
1st Kurskaya Str. 67
Mr. A. Nogtenko
Insolvency Manager
302010, Russia,
Orel, Aviatsionnaya Str. 5
RUSSIAN BANKS: Central Bank Withdraws Licenses of Small Banks
-------------------------------------------------------------
Four small commercial banks in Russia lost their licenses after
failing to meet official regulatory requirements, The Moscow
Times reports.
The Central Bank withdrew the licenses of Promeximbank,
Commercial Bank of Deposits (Kommerchesky Bank Sberezheny),
Moszhilstroibank, and Rikom.
Promeximbank delayed filing a monthly report by more than 15
days. Commercial Bank of Deposits, Moszhilstroibank and Rikom
also delayed monthly reports. In addition, they were not able
to meet creditors' demand. Moszhilstroibank was also unable to
make some obligatory payments, the nature of which the Central
Bank refused to elaborate.
The four banks combined accounted for just a fraction of a
percent of all retail deposits, the Central Bank said.
Commercial Bank of Deposits is the nation's 351st-biggest bank
by assets with RUB1.35 billion (US$46.4 million), according to
Interfax Rating Agency. Promeximbank is number 361 with RUB1.31
billion, and Moszhilstroibank is 1,217th with RUB31 million
(US$1.1 million). No information was available on Rikom.
Analysts believe the Central Bank needs to close down small
banks as part of a reform in the banking system. The challenge
is for them to do just that without shattering confidence. A
few weeks ago, a crisis of confidence was triggered after the
Central Bank withdrew licenses of two small banks.
SOLIKAMSKAYA PTITSA: Under Bankruptcy Procedure
-----------------------------------------------
The Arbitration Court of Perm region commenced bankruptcy
supervision procedure on LLC agricultural company Solikamskaya
Ptitsa. The case is docketed as A67-4702/04. Mr. A. Begunov
has been appointed temporary insolvency manager.
Creditors had until July 19, 2004 to submit their proofs of
claim to the insolvency manager. A hearing will take place on
October 1, 2004.
CONTACT: SOLIKAMSKAYA PTITSA
Russia, Perm,
Solikamsky Region, Rodnili
Mr. A. Begunov
Temporary Insolvency Manager
618540, Russia,
Perm region, Solikamsk,
R. Luksemburg Str. 19
VOLOGODSKY FACTORY: Vologda Court Sets November 11 Hearing
----------------------------------------------------------
The Arbitration Court of Vologda region commenced bankruptcy
supervision procedure on CJSC Vologodsky Factory Wood Processing
Machines. The case is docketed as A13-4997/04-22. Mr. E.
Semenov has been appointed temporary insolvency manager.
Creditors are asked to submit their proofs of claim to 160002,
Russia, Vologda, Post User Box 2. A hearing will take place on
November 11, 2004, 10:30 a.m.
CONTACT: VOLOGODSKY FACTORY WOOD PROCEEDING MACHINES
160009, Russia,
Vologda, Gagarina Str. 81
Mr. E. Semenov
Temporary Insolvency Manager
160002, Russia,
Vologda, Post User Box 2
VYAZM-AGRO: Under Bankruptcy Supervision
----------------------------------------
The Arbitration Court of Smolensk region commenced bankruptcy
supervision procedure on municipal enterprise Vyazm-Agro. The
case is docketed as A62-581-H/04. Mr. M. Rusalev has been
appointed temporary insolvency manager. Creditors are asked to
submit their proofs of claim to 215110, Russia, Smolensk region,
Vyazma, Glavpochtamt, Post User Box 31.
CONTACT: VYAZM-AGRO
215110, Russia,
Vyazma, Repina Str.16
Mr. M. Rusalev
Temporary Insolvency Manager
215110, Russia,
Smolensk Region, Vyazma,
Glavpochtamt, Post User Box 31
YUKOS OIL: Freed from Fine, But Could Face Additional Tax Claim
---------------------------------------------------------------
The Moscow Arbitration Court told Yukos Oil Company it need not
pay the RUB6.75 billion tax authorities are demanding for
missing a deadline to pay its tax bill for 2000.
Yukos was unable to remit the US$3.4 billion the Tax Ministry is
demanding by a July 9 deadline. According to Russian law, a
company must pay 7% of the total amount due if it fails to pay
on time. According to ITAR-Tass news agency, Yukos argued that
the cash consideration is too enormous for the authorities to
demand immediate payment.
The oil giant repeatedly warned it would have to file for
bankruptcy if forced to pay, particularly since court orders are
preventing it from selling assets to raise the amount. It also
said it would have to stop production. Yukos received breathing
space recently when it was given another month to find cash.
The Tax Ministry has served it, in addition, a US$3.4 billion
tax demand for 2001. Yukos previously proposed to pay the
amount over a period of several years, but the government did
not publicly respond to the suggestion. In recent developments,
company spokesperson Hugo Erikssen said the ministry is set to
investigate the firm's activities for 2002.
Analysts have expected that the company would face further
claims for later years, and have said Yukos could face a total
of US$10 billion in tax claims for 2000-2003, according to
Associated Press.
=============================
S L O V A K R E P U B L I C
=============================
SKLOOBAL NEMSOVA: Court Calls off Bankruptcy
--------------------------------------------
The Bratislava Regional Court ruled in late July to cancel the
bankruptcy of glass packaging maker Skloobal Nemsova,
Hospodarske Noviny says. Concurrently, the court also
terminated the services of Peter Szivos as the official receiver
of the company's assets.
* * *
Skloobal manufactures an assortment of glass products. Its
customers include pharmaceutical companies and manufacturers of
beer, soft drinks, spirits, wines and fruit juices, among
others.
CONTACT: Skloobal Nemsova a.s.
Zeleznicna 207/9
91441 Nemsova
Slovak Republic
Phone: +421 32 6557111
Fax: +421 32 6598122
Web site: http://www.skloobal.sk
=============
U K R A I N E
=============
CHUGUEVAGROSHLYAHBUD: Bankruptcy Proceedings Launched
-----------------------------------------------------
The Economic Court of Harkiv region declared LLC
Chuguevagroshlyahbud (code EDRPOU 05405612) insolvent and
introduced bankruptcy proceedings on June 22, 2004. The case is
docketed as B-39/12-04. Mr. Dmitro Zadruzhnij (License Number
AA 249706 approved on October 19, 2001) has been appointed
liquidator/insolvency manager. The company holds account number
260022767 at JSPPB Aval, Harkiv regional branch, MFO 350589.
CONTACT: CHUGUEVAGROSHLYAHBUD
Ukraine, Harkiv region,
Chuguev district, Kochatok
Mr. Dmitro Zadruzhnij
Liquidator/Insolvency Manager
61057, Ukraine, Harkiv region,
Pushkinska Str. 5, room 408
ECONOMIC COURT OF HARKIV REGION
61022, Ukraine, Harkiv region,
Svobodi square, 5, Derzhprom, 8th entrance
GOLOPRISTANSKIJ RJAGROBUD: Declared Insolvent
---------------------------------------------
The Economic Court of Herson region declared OJSC
Golopristanskij Rjagrobud (code EDRPOU 03587336) insolvent and
introduced bankruptcy proceedings on June 11, 2004. The case is
docketed as 5/15-B. Arbitral manager Mr. Vladislav Aksyonov
(License Number AA 630046 approved on November 18, 2003) has
been appointed liquidator/insolvency manager.
CONTACT: GOLOPRISTANSKIJ RJAGROBUD
75600, Ukraine, Herson region,
Gola Pristan, Budivelnikiv Str. 1
Mr. Vladislav Aksyonov
Liquidator/Insolvency Manager
73000, Ukraine, Herson region,
Krasnoflotska Str. 3
Phone: 8 (0552) 24-82-86
ECONOMIC COURT OF HERSON REGION
73000, Ukraine, Herson region,
Gorkij Str. 18
METRON: Bankruptcy Proceedings Begin
------------------------------------
The Economic Court of Kyiv region declared LLC Metron (code
EDRPOU 25279865) insolvent and introduced bankruptcy proceedings
on June 29, 2004. The case is docketed as 24/636-B. Arbitral
manager Mr. S. Nesterenko has been appointed
liquidator/insolvency manager.
CONTACT: METRON
Ukraine, Kyiv region,
Zdolbunivska Str. 2
ECONOMIC COURT OF KYIV REGION
030, Ukraine, Kyiv region,
B. Hmelnitskij Boulevard, 44-B
PERVOMAJSKIJ RAJAGROPOSTACH: Court Names Liquidator
---------------------------------------------------
The Economic Court of Harkiv region declared OJSC Pervomajskij
Rajagropostach (code EDRPOU 00907639) insolvent and introduced
bankruptcy proceedings on June 21, 2004. The case is docketed
as B-39/21-04. Mr. Dmitro Zadruzhnij (License Number AA 249706
approved on October 19, 2001) has been appointed
liquidator/insolvency manager. The company holds account number
26009301250 at OJSC Derzhoshadbank, Pervomajsk branch, MFO
350017.
CONTACT: PERVOMAJSKIJ RAJAGROPOSTACH
64107, Ukraine, Harkiv region,
Pervomajsk, Uchitelska Str. 1
Mr. Dmitro Zadruzhnij
Liquidator/Insolvency Manager
61057, Ukraine, Harkiv region,
Pushkinska Str. 5, room 408
ECONOMIC COURT OF HARKIV REGION
61022, Ukraine, Harkiv region,
Svobodi square, 5, Derzhprom, 8th entrance
TARASHAMILKPRODUCT: Kyiv Court Affirms Insolvency
-------------------------------------------------
The Economic Court of Kyiv region declared OJSC
Tarashamilkproduct (code EDRPOU 00445966) insolvent and
introduced bankruptcy proceedings on June 10, 2004. The case is
docketed as 28/11 b-2004. Arbitral manager Mr. I. Gusar
(License Number AA 719858 approved on March 4, 2004) has been
appointed liquidator/insolvency manager. The company holds
account number 260032078 at JSPPB Aval, Bila Tserkva branch, MFO
321121.
CONTACT: TARASHAMILKPRODUCT
Ukraine, Kyiv region,
Tarasha, Vidna Str. 4
Mr. I. Gusar
Liquidator/Insolvency Manager
01030, Ukraine, Kyiv region, a/b 29
Phone: (044) 236-11-17
Fax: (044) 236-11-17
ECONOMIC COURT OF KYIV REGION
01033, Ukraine, Kyiv region,
Zhelyanska Str. 58 b
VESNA-K: Proofs of Claim Deadline Expires August 10
---------------------------------------------------
The Economic Court of Kyiv declared LLC Vesna-K (code EDRPOU
25269275) insolvent and introduced bankruptcy proceedings on
June 24, 2004. The case is docketed as 15/205-B.
Creditors have until August 10, 2004 to submit their proofs of
claim to the Economic Court of Kyiv region 01030, Ukraine, Kyiv
region, B. Hmelnitskij Boulevard, 44-B
VIGOR: Lviv Court Appoints Insolvency Manager
---------------------------------------------
The Economic Court of Lviv region declared CJSC Vigor (code
EDRPOU 01054939) insolvent and introduced bankruptcy proceedings
on June 17, 2004. Arbitral manager Mr. O. Kachmar (License
Number AA 249552) has been appointed liquidator/insolvency
manager.
CONTACT: VIGOR
Ukraine, Lviv region,
Starosambirskij district, Nizhankovichi
ECONOMIC COURT OF LVIV REGION
79010, Ukraine, Lviv region,
Lichakivska Str. 81
===========================
U N I T E D K I N G D O M
===========================
AA MUTUAL: Hires Joint Administrators from PwC
----------------------------------------------
Douglas Nigel Rackham and Dan Yoram Schwarzmann of
PricewaterhouseCoopers have been appointed as joint
administrators for AA Mutual International Insurance Company
Limited. The appointment was made July 23, 2004. The insurance
company's registered office is located at Hampden House, Great
Hampden, Great Missenden, Buckinghamshire HP16 9RD.
CONTACT: PRICEWATERHOUSECOOPERS LLP
Plumtree Court,
London EC4A 4HT
Joint Administrators:
Douglas Nigel Rackham
Dan Yoram Schwarzmann
(IP Nos 1174, 1284)
Phone: [44] (20) 7583 5000
Fax: [44] (20) 7822 4652
Web site: http://www.pwc.com
ADEPT TECHNOLOGY: Brings in Liquidator from Arrans
--------------------------------------------------
At an Extraordinary General Meeting of the Adept Technology
Limited Company (formerly Adept Technology UK Limited) on July
20, 2004 held at Bank Gallery, High Street, Kenilworth,
Warwickshire CV8 1LY, the subjoined Extraordinary Resolution to
wind up the company was passed. Robert Gibbons of Arrans, P.O.
Box 9377, Falcon House, Falcon Park, Tamworth, Staffordshire B77
5HL has been appointed Liquidator for the purpose of such
winding-up.
CONTACT: ARRANS
PO Box 9377
Falcon House,
Falcon Park, Tamworth,
Staffordshire B77 5HL
Liquidator:
Robert Gibbons
AMBER TV: Winding up Resolutions Passed
---------------------------------------
At an Extraordinary General Meeting of the Members of the Amber
TV Ltd Company on July 22, 2004 held at The Strand Palace Hotel,
The Strand, London WC2R 0JJ, the Ordinary and Extraordinary
Resolutions to wind up the company were passed. Neil Henry and
Michael Simister of Lines Henry, 27 The Downs, Altrincham WA14
2QD have been appointed Joint Liquidators for the purpose of
such winding-up.
CONTACT: LINES HENRY
27 The Downs,
Altrincham WA14 2QD
Liquidator:
Neil Henry
Michael Simister
AZURE INTEGRATION: Calls in Liquidator
--------------------------------------
At an Extraordinary General Meeting of the Members of the Azure
Integration International Limited on July 23, 2004 held at
Meridian House, 62 Station Road, North Chingford, London E4 7BA,
the Ordinary and Extraordinary Resolutions to wind up the
company were passed. A J Clark of Carter Clark, Meridian House,
62 Station Road, North Chingford, London E4 7BA has been
appointed Liquidator for the purpose of the voluntary winding-
up.
CONTACT: CARTER CLARK
Meridian House
62 Station Road,
North Chingford,
London E4 7BA
Liquidator:
A J Clark
BOILER WORKSHOP: Members OK Extraordinary Winding up Resolution
---------------------------------------------------------------
At an Extraordinary General Meeting of the boiler Workshop
Limited Company on July 21, 2004 held at Albany House, 18
Theydon Road, London E5 9NZ, the subjoined Extraordinary
Resolution to wind up the company was passed. Mr. S Franklin of
Panos Eliades, Franklin & Co., of Albany House, 18 Theydon Road,
London E5 9NZ has been appointed Liquidator for the purpose of
such winding-up.
CONTACT: FRANKLIN & CO
Albany House
18 Theydon Road,
London E5 9NZ
Liquidator:
Mr. S Franklin
CAVALRY SHEET: Sets Creditors Meeting August 11
-----------------------------------------------
Creditors of Cavalry Sheet Metal Limited will meet on August 11,
2004 at 11:00 a.m. It will be held at Hilton Hotel Corby,
Geddington Road, Corby, Northamptonshire NN18 8ET.
Creditors who want to be represented at the meeting may appoint
proxies. Proxy forms must be submitted together with written
debt claims to DTE Leonard Curtis, DTE House, Hollins Mount,
Bury BL9 8AT not later than 12:00 noon, August 10, 2004.
CONTACT: DTE LEONARD CURTIS
DTE House,
Hollins Mount,
Bury BL9 8AT
Joint Administrator:
A Poxon
Phone: 0161 767 1200
Fax: 0161 767 1201
Web site: http://www.dtegroup.com
EQUITABLE LIFE: Actuaries Accused of Misleading Policyholders
-------------------------------------------------------------
Members of the Institute of Actuaries are facing charges in
relation to their role in the Equitable Life scandal four years
ago. Roy Ranson and Alan Nash, successive former managing
directors and actuaries of the society, as well as Chris Headdon
and Barry Sherlock are accused of "misconduct."
Mr. Ranson is alleged to have filed "misleading and imprudent
valuation reports to the regulators in respect of the years
1994, 1995 and 1996. He denied the accusation, according to The
Telegraph. Meanwhile, Mr. Nash could be sued for hiding the
true state of the society's finances. They could be fined,
suspended or even expelled from the profession if proven guilty.
Mr. Ranson and Mr. Headdon denied wrongdoings. A hearing date
has not yet been set. The report said, it could take place in
private and could be delayed until next year.
Equitable Life closed to new business in December 2000 lost a
case against guaranteed policyholders before the House of Lords.
The ruling forced it to declare guaranteed annuity rate
liabilities of GBP1.5 billion.
ESSO MARINE: Names Liquidator from Baker Tilly
----------------------------------------------
At an Extraordinary General Meeting of the Esso Marine U.K.
Limited Company on July 22, 2004 held at ExxonMobil House, Ermyn
Way, Leatherhead, Surrey KT22 8UX, the Special Resolution to
wind up the company was passed. Andrew White of Baker Tilly,
International House, Queens Road, Brighton BN1 3XE has been
appointed Liquidator for the purpose of such winding-up.
CONTACT: BAKER TILLY
International House
Queen Road,
Brighton BN1 3XE
Liquidator:
Andrew White
Phone: 01273 223400
Fax: 01273 223401
Web site: http://www.bakertilly.co.uk
EXCELPRINT LIMITED: Creditors Meeting Set August 9
--------------------------------------------------
The creditors meeting of the Excelprint (Suffolk) Limited will
be on August 9, 2004 at 2:00 p.m. It will be held at the
offices of Grant Thornton, Grant Thornton House, Melton Street,
Euston Square, London NW1 2EP.
Creditors who want to be represented at the meeting may appoint
proxies. Proxy forms must be submitted together with written
debt claims to Grant Thornton, Grant Thornton House, Melton
Street, Euston Square, London NW1 2EP not later than 12:00 noon,
August 6, 2004.
CONTACT: GRANT THORNTON
Grant Thornton House
Melton Street,
Euston Square,
London NW1 2EP
Joint Administrator:
A Hosking
Phone: 020 7383 5100
Fax: 020 7383 4715
Web site: http://www.grant-thornton.co.uk
GREAT BRITISH: Appoints Begbies Traynor Administrator
-----------------------------------------------------
The Great British Pub Company Ltd has appointed Steven Williams
and David Acland as joint administrators. The appointment was
made July 21, 2004.
CONTACT: BEGBIES TRAYNOR
1 Winckley Court,
Chapel Street, Preston,
Lancashire PR1 8BU
Joint Administrators:
Steven Williams
David Acland
(IP Nos 8887, 8894)
G WYATT: Hires Liquidator from Poppleton & Appleby
--------------------------------------------------
The final meeting of the members of G Wyatt Limited will be on
August 27, 2004 at 2:30 p.m. It will be held at the offices of
Poppleton & Appleby, 35 Ludgate Hill, Birmingham B3 1EH.
The purpose of the meeting is to receive the account showing
how the winding-up has been conducted and the property of the
Company disposed of, and to hear any explanation that may be
given by the liquidator. Members who want to be represented at
the meeting may appoint proxies. Proxy forms must be lodged
with Poppleton & Appleby, 35 Ludgate Hill, Birmingham B3 1EH not
later than 12:00 noon, August 26, 2004.
CONTACT: POPPLETON & APPLEBY
35 Ludgate Hill,
Birmingham B3 1EH
Liquidator:
A Turpin
HALLCO 1019: Hires Joint Liquidators from Baker Tilly
-----------------------------------------------------
At an Extraordinary General Meeting of the Members of the Hallco
1019 Limited on July 19, 2004 held at Halliwells, St James
Court, Brown Street, Manchester M2 2JF, the Special, Ordinary
and Extraordinary Resolutions to wind up the company were
passed. Stephen Mark Quinn and Lindsey Jane Cooper of Baker
Tilly, Brazennose House, Lincoln Square, Manchester M2 5BL have
been appointed as Joint Liquidators for the purpose of such
winding-up.
CONTACT: BAKER TILLY
Branzennose House
Lincoln Square,
Manchester M2 5BL
Liquidators:
Stephen Mark Quinn
Lindsay Jane Cooper
Phone: 0161 834 5777
Fax: 0161 835 3242
Web site: http://www.bakertilly.co.uk
ICP EUROPE: Names Harrisons Administrator
-----------------------------------------
ICP Europe Publishing Plc has appointed P R Boyle and J C
Sallabank as joint administrators. The appointment was made
July 15, 2004. The company's registered office address is 4 St
Giles Court, Southampton Street, Reading RG1 2QL.
CONTACT: HARRISONS
4 St Giles Court,
Southampton Street,
Reading RG1 2QL
Joint Administrator:
P R Boyle
(IP No 008897)
Phone: 0118 951 0798
Fax: 0118 939 4409
E-mail: info@harrisons.uk.com
Web site: http://www.harrisons.uk.com
HARRISONS
35 Waters Edge Business,
Modwen Road,
Manchester M5 3EZ
Joint Administrator:
J C Sallabank
(IP No 008099)
Phone: 0161 876 4567
Fax: 0161 876 4554
E-mail: info@harrisons.uk.com
Web site: http://www.harrisons.uk.com
JARVIS PLC: Sells Interest in Ultramast for GBP2.8 Million
----------------------------------------------------------
Jarvis plc sold its entire shareholding in Ultramast Limited to
Shere Group Limited, a joint venture company formed by Babcock &
Brown Limited and four previous managers of the Ultramast
business.
Ultramast owns rights to build mobile telephone radio masts on
the U.K.'s rail network. The consideration is GBP289,619 in
cash on completion and contingent consideration in cash of up to
GBP1,800,000 over the next five years, depending on the number
of masts built by Ultramast. Also the purchaser is assuming
responsibility for loan balances of GBP7,771,114 owed to
Ultramast by Jarvis plc. Ultramast had net assets at 31 March
2004 of GBP7,757,000 and incurred a loss before taxation of
GBP165,000 in the year ended on that date.
The sale proceeds will be applied towards general Jarvis group
purposes. This sale allows Jarvis to cease to have any
responsibility for the operational costs of Ultramast or for
investing in order to build the company's activities but affords
an opportunity to share in Ultramast's future performance.
CONTACT: JARVIS PLC
Paul Ravenscroft
Phone: + 44 20 7462 4639
TULCHAN
Andrew Honnor
Phone: + 44 20 7353 4200
NETWORK CELLULAR: Creditors Meeting Set August 9
------------------------------------------------
IN THE MATTER OF THE INSOLVENCY ACT 1986
And
IN THE MATTER OF Network Cellular Telephones Ltd.
Notice is hereby given, pursuant to section 95 of the Insolvency
Act 1986, that a meeting of Network Cellular Telephones Ltd.
will be held at 221-223 Chingford Mount Road London E4 8LP on
August 9, 2004 at 3:00 p.m.
R. A. Segal, Liquidator
July 5, 2004
NETWORK RAIL: Steps Up Effort to Improve Operation
--------------------------------------------------
Network Rail awarded a new, two-year contract for the
maintenance and operation of its high output track renewals and
ballast cleaning plant.
The two-year, framework contract is anticipated to be worth
around GBP30 million and represents an integral part of the
company's drive to improve the condition of its assets and step
up its track renewals activity, needed following years of under-
investment.
It will deliver cost reductions and significant improvements in
value for money through:
(a) More integrated methods of working,
(b) Optimization of job lengths, and
(c) Better utilization of track access and resources
Network Rail is constantly looking at new ways to deliver its
key role of rebuilding Britain's railway. This has seen a GBP39
million-investment in state of the art, high output track
relaying and high output ballast cleaning systems, which
dramatically increase the company's track renewals capacity,
maximizing track access slots and so minimizing disruptions to
passengers.
The contract that has been awarded to First Swietelsky, a joint
venture between First Engineering and Swietelsky of Austria to
operate and maintain the new high output track renewal and
ballast cleaning equipment currently being introduced by Network
Rail to the U.K.
Network Rail Projects and Engineering Director Peter Henderson
said: "The award of this contract is a significant step toward
our goal of controlling costs, whilst delivering a more reliable
railway infrastructure and better train performance. The huge
task of rebuilding our railway is well underway."
NETWORK RAIL: Welcomes Government's Plan for Railways
-----------------------------------------------------
Network Rail welcomed the publication of the Government White
Paper on the future of the railways, with Chairman Ian
McAllister commenting that it provides "a platform for a
customer focused and high performing railway."
The White Paper, which follows the six-month Government Rail
Review, proposes a number of significant changes to the
structure of the railway. The reforms are designed to deliver
improvements to performance and efficiency and build on the
already close and improving collaboration between Network Rail
and train operators.
A number of these changes will have a direct impact on Network
Rail, including making the Company the single point of
accountability to Government for rail performance and tasking
Network Rail with responsibility for explaining and accounting
for performance to the public whilst train operators remain
accountable to their passengers.
Network Rail will deliver its responsibilities through a number
of changes. In particular:
(a) Integrated Control Centers under Network Rail leadership
will be created to cover the entire network;
(b) Network Rail will have clearer powers to direct network
services and restore services to normal after disruption;
(c) Responsibility to devise the timetable will pass to Network
Rail, with input from train operators;
(d) Network Rail will be responsible for drawing up Route
Utilization Strategies to optimize use of each part of the
railway network.
White Paper
The White Paper also proposes the creation of a new regulatory
contract between Network Rail and the Department for Transport.
This contract will specify the high-level outputs on capacity
and reliability, which Network Rail has to deliver, and the
income the Company will receive for doing so.
Network Rail Chairman, Ian McAllister, said: "The White Paper
provides a platform to build a customer focused and high
performing railway. By working in close partnership with train
operators who have grown demand for rail travel in recent years,
we can now play our part to deliver a better and more reliable
railway service to the traveling public.
"The White Paper places significant new responsibilities on
Network Rail. Having taken maintenance in-house, reduced delays
and improved the efficiency of the railway within the last
twelve months, we look forward to taking on fresh challenges
within this new structure.
"For Network Rail, the hard work continues. The White Paper has
clarified responsibilities and given us all a sure footing on
which we must build. Everyone at Network Rail will roll up
their sleeves and get on with the job.
"We renew our pledge to work closely with our colleagues in the
train and freight companies to help them meet the expectations
of railways users."
Keith Ludeman, ATOC chairman said: "The White Paper will help
create a more joined-up railway and it recognizes the key role
of train operators as the best way to deliver benefits for
passengers working in close partnership with Network Rail.
"It provides a clearer way forward and we now look forward to
doing the detailed work necessary to make these changes
effective, in partnership with industry colleagues.
"It is our collective job to deliver the railway the customer
wants. Working more closely with Network Rail will help us
achieve our goal of continuing to change Britain's railways for
the better -- now the fastest growing in Europe."
Network Rail is committed to working with the Government, the
Office of Rail Regulation and partners in the rail industry to
deliver the changes determined in the White Paper. The
proposals will not take effect for some months and until then
current roles and responsibilities continue.
The Company will work with train operators and the ORR to
develop a new performance regime and delay attribution process
based around common incentives that work in the interests of
passengers.
It is vital that the changes proposed by the White Paper build
on the performance improvements seen in the last twelve months
that saw a one million minute reduction in delay minutes in
2003/04. The improvement has continued this year, with a
further 9% reduction in delays during the first quarter of
2004/05. Delays now stand at their lowest for four years.
The changes proposed must also build on the recent strides to
deliver better efficiency in the industry. Network Rail
expenditure last year was GBP1.1bn below budget and the Company
is committed to delivering a 31% efficiency target over the next
five years. The forecast cost of upgrading the West Coast
mainline has been reduced from o9.9bn to o7.6bn since Network
Rail assumed responsibility for the delivery of the project.
Reforming Corporate Governance
Network Rail recognizes that with the new responsibilities it
will acquire as a result of the White Paper, changes will be
needed to the Company's corporate governance structure.
The proposed changes will require detailed discussions with
Network Rail's Members, but initially the Company is proposing:
(a) Inviting train operators to nominate a Non-Executive
Director to the Board of Network Rail;
(b) Consulting with the Rail Passengers Council on the
appointment of a further Non-executive Director to add to
the already considerable experience of managing customer
service on the Board;
(c) Providing Members access to independent reporting of Company
performance provided by the ORR;
(d) Encouraging Members to focus their attention on a particular
Route in addition to scrutiny of the Company's overall
Performance;
(e) Reviewing the management incentive plan to ensure the
interests of Network Rail and its stakeholders are fully
aligned. This will include exploring with freight operators
whether the MIP should include a specific measure of freight
outputs.
PXP INTERNATIONAL: Hires Moore Stephens Liquidator
--------------------------------------------------
At an Extraordinary General Meeting of the Members of PXP
International Limited Company on July 16, 2004 held at 56
Prospect Street, Hartford, Connecticut 06115, USA, the Special,
Ordinary and Extraordinary Resolutions to wind up the company
were passed. Phillip Rodney Sykes and David Alan Rolph of Moore
Stephens, 1 Snow Hill, London EC1A 2EN have been appointed Joint
Liquidators for the purpose of the voluntary winding-up.
CONTACT: MOORE STEPHENS
1 Snow Hill
London EC1A 2EN
Liquidators:
Philip Rodney Sykes
David Alan Rolph
Phone: 020 7334 9191
Fax: 020 7248 3408
Web site: http://www.moorestephens.co.uk
QUEENS MOAT: Shareholders Vote Against Pre-emption Rights
---------------------------------------------------------
At the Annual General Meeting of Queens Moat Houses on Monday
plc the resolution for the dis-application of pre-emption rights
was passed by the 75% majority required for a Special
Resolution. A total of 3,132 proxy cards were received in
respect of the resolution with 184,208,345 votes cast in favor,
1,066,583 against and 1,048,842 abstentions.
The meeting was then adjourned to a date and place to be
determined, to enable the Company's strategic review to be
concluded and facilitate the completion of the statutory report
and accounts.
* * *
Queens Moat was de-listed for two years beginning 1995 due to
problems in its finances. It continues to operate but is
struggling amidst the slowdown in tourism after the September 11
terrorist attacks in the U.S.
CONTACT: QUEENS MOAT HOUSES PLC
Martin Purvis
Director Corporate & Legal Services
Phone: 01708 730 522
COLLEGE HILL
Mark Garraway
Crawford Burden
Phone: 020 7457 2020
RIEJU LIMITED: Appoints Joint Administrators from Mazars
--------------------------------------------------------
Timothy Colin Hamilton Ball and Alistair Steven Wood of Mazars
have been appointed joint administrators fro Rieju U.K. Limited.
The appointment was made July 19, 2004. The company sells and
imports motorcycles.
CONTACT: MAZARS
Clifton Down House
Beaufort Buildings,
Clifton Down, Clifton,
Bristol BS8 4AN
Joint Administrators:
Timothy Colin Hamilton Ball
Alistair Steven Wood
(IP Nos 8018, 7929)
Phone: 0117 973 4481
Fax: 0117 974 5203
Web site: http://www.mazars.co.uk
SAMOLS ROWSON: Hires Liquidator from Baker Tilly
------------------------------------------------
At an Extraordinary General Meeting of the Samols Rowson Limited
Company on July 16, 2004 held at 32 Eastbury Avenue, Northwood,
Middlesex HA6 3LN, the Special and Extraordinary Resolutions to
wind up the company were passed. Matthew Richard Meadley Wild
of Baker Tilly, The Clock House, 140 London Road, Guildford,
Surrey GU1 1UW has been appointed the Liquidator of the Company
for the purpose of such winding-up.
CONTACT: BAKER TILLY
The Clock House
140 London Road,
Guilford, Surrey GU1 1UW
Liquidator:
Matthew Richard Meadley Wild
Phone: 01483 307000
Fax: 01483 569 281
Web site: http://www.bakertilly.co.uk
SHARETREE SYSTEMS: Creditors Meeting Set August 9
-------------------------------------------------
The creditors of Sharetree Systems Limited will meet on August
9, 2004 at 11:00 a.m. It will be held at the offices of Mazars,
Clifton Down House, Beaufort Buildings, Clifton Down, Clifton,
Bristol.
Creditors who want to be represented at the meeting may appoint
proxies. Proxy forms must be submitted together with written
debt claims to Mazars, Clifton Down House, Beaufort Buildings,
Clifton Down, Clifton, Bristol not later than 12:00 noon, August
6, 2004.
CONTACT: MAZARS
Clifton Down House,
Beaufort Buildings,
Clifton Down,
Clifton, Bristol
Phone: 0117 973 4481
Fax: 0117 974 5203
Web site: http://www.mazars.co.uk
S.P. BELL: Names David Ruben & Partners Administrator
-----------------------------------------------------
David Rubin and Asher Miller have been appointed joint
administrators for S.P. Bell Limited. The appointment was made
July 23, 2004. The company offers private client investment
services.
CONTACT: DAVID RUBIN & PARTNERS
Pearl Assurance House,
319 Ballards Lane,
London N12 8LY
Joint Administrators:
David Rubin
Asher Miller
(IP Nos 2591, 9251)
S & S OF LEEK: Appoints Joint Administrators from Baker Tilly
-------------------------------------------------------------
The S & S of Leek Limited has appointed Lindsey J Cooper and
Stephen M Quinn as joint administrators. The appointment was
made July 22, 2004. Its registered office address is c/o Baker
Tilly Brazennose House, Lincoln Square, Manchester M2 5BL.
CONTACT: BAKER TILLY
Brazennose House,
Lincoln Square,
Manchester M2 5BL
Joint Administrators:
Lindsay J Cooper
Stephen M Quinn
Phone: 0161 834 5777
Fax: 0161 835 3242
Web site: http://www.bakertilly.co.uk
STUART INTERIORS: Sets Creditors Meeting August 11
--------------------------------------------------
The creditors meeting of the Stuart Interiors Limited will be on
August 11, 2004 at 11:00 a.m. It will be held at Begbies
Traynor, 58 Queen Square, Bristol BS1 4LF.
Creditors who want to be represented at the meeting may appoint
proxies. Proxy forms must be submitted together with written
debt claims to Begbies Traynor, 58 Queen Square, Bristol BS1 4LF
not later than 12:00 noon, August 10, 2004.
CONTACT: BEGBIES TRAYNOR
58 Queen Square,
Bristol BS1 4LF
Joint Administrative Receiver:
I E Walker
VALLEYHILL LTD.: Administrative Receivers Sell 30 Pubs
------------------------------------------------------
Jane Moriarty and Blair Nimmo, the joint administrative
receivers of Valleyhill Ltd., sold 30 of its pubs to the bar
chain, Brannigans Ltd. for an undisclosed sum. The deal secures
the jobs of 546 people at licensed premises across the U.K.
Blair Nimmo, joint administrator and KPMG Corporate Recovery
Partner said: "Following a huge amount of interest in the
administration of Valleyhill Ltd., we are pleased to bring about
a sale of its assets as a going concern and we would like to
take this opportunity to thank the staff and suppliers for their
support during this difficult period."
Jane Moriarty and Blair Nimmo of KPMG Corporate Recovery were
appointed joint administrative receivers to Valleyhill Ltd.,
Valleyhill Bars Ltd. and Valleyhill Pubs Ltd on 7 May 2004.
CONTACT: KPMG
Blair Nimmo
Corporate Recovery Partner
Phone: 07774 617582
Judith Dow
Corporate Communications
Phone: 0207 694 8584
Mobile: 07786 197718
E-mail: judith.dow@kpmg.co.uk
Press Office
Phone: 0207 694 8773
WH SMITH: Divests Hodder Headline for GBP223 Million
----------------------------------------------------
The Board of WH Smith PLC reached agreement to dispose of its
publishing business, Hodder Headline, to Hachette Livre S.A. for
GBP223 million, comprising GBP210 million in cash and the
assumption of the Hodder Headline net pension deficit estimated
at GBP13 million. It also announces its intention to return to
Shareholders up to GBP207 million of cash, equivalent to
approximately 85p per Ordinary Share.
The consideration is subject to an adjustment for working
capital and external third party debt. The net proceeds from
the Disposal will be used to fund the return of cash to
Shareholders. In the year ended 31 August 2003, Hodder Headline
generated sales of GBP144 million and operating profit of GBP19
million. As at 31 August 2003, Hodder Headline had net assets,
adjusted for the net pension deficit, of GBP256 million.
The Disposal is subject to regulatory approval and approval by
Shareholders at an Extraordinary General Meeting. A circular to
Shareholders will be posted shortly containing notice of the EGM
and further details of the Disposal. In addition, it will
contain details of the proposed Management Investment Plan,
which was announced on 27 July 2004, and the return of cash,
both of which will also be subject to Shareholder approval at
the EGM.
Commenting on the announcement, Kate Swann, Group Chief
Executive of WH Smith PLC, said: "The sale of Hodder Headline is
an important milestone in our strategy to simplify the structure
of the Group and to focus on our core retail and news
distribution businesses. On behalf of the Board, I would like
to thank Tim Hely Hutchinson and his team for the contribution
they have made to the Group."
Information on Hodder Headline
Hodder Headline Limited is one of U.K.'s largest and most
diverse book publishers. It has strong positions in both
consumer and educational publishing and has operations in the
U.K., Australia and New Zealand and employs 833 people
worldwide. The acquisitions of John Murray (Publishers) Limited
and Robert Gibson & Sons Glasgow, Limited during its ownership
by WH Smith further strengthened its position in both the
consumer and education markets. Hodder Headline has performed
strongly under WH Smith ownership and this performance continues
in the current financial year.
* * *
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO
AUSTRALIA, CANADA, JAPAN OR UNITED STATES
CONTACT: WH SMITH PLC
Mark Boyle
Investor Relations
Phone: +44 (0) 20 7514 9630
Louise Evans
Media Relations
Phone: +44 (0) 20 7514 9624
GREENHILL
Financial Advisers to WHSmith
James Lupton
Brian Cassin
Phone: +44 (0) 20 7440 0400
BRUNSWICK
PR Advisers to WHSmith
Louise Charlton
Tom Buchanan
Phone: +44 (0) 20 7404 5959
WH SMITH: Rating Lowered to 'BB-'; Outlook Stable
-------------------------------------------------
Fitch Ratings on Monday downgraded WH Smith PLC's Senior
Unsecured rating to 'BB-' from 'BB+' and removed it from Rating
Watch Negative. Following the downgrade, the Outlook is now
Stable. At the same time, the agency has affirmed the Short-
term rating at 'B' and removed it from Rating Watch Negative.
The rating downgrade follows confirmation of WH Smith's
announcement to sell its publishing business Hodder Headline for
GBP223 million and to return net cash proceeds, after adjustment
for working capital and external third party debt, to
shareholders. The disposal is, however, subject to regulatory
approval and approval by shareholders at an Extraordinary
General Meeting. As a result of the disposal, the company's
FY03 pro-forma sales and operating profit decreased by c. GBP150
million and GBP20 million respectively, leaving the pro-forma
debt protection measures in line with the 'BB-' rating.
The group's pension adjusted net debt/EBITDAR ratio of 4.6x at
FYE03 and pension-adjusted EBITDAR/interest+rent of 1.7x are
expected to deteriorate in FY05, due to the planned disposal of
Hodder and the tough competitive environment making EBITDA
growth uncertain.
The group's financial profile has deteriorated continuously over
the past three years and the medium to long-term strategy to
improve core U.K. retail operations, which accounted for 85% of
the GBP106 million operating profit before exceptional and
goodwill amortization in FY03, carries significant execution
risk. The strategy consists of cost control measures, the
improvement of stock availability as well as that of the store
offer, and the improvement in the product range planning. WH
Smith has said that total store and central overhead cost
savings should reach GBP30 million per annum by FYE07. The
group's turnaround strategy appears reasonable and may produce
the desired results, although Fitch anticipates that this is
likely to take some time to positively impact on key credit
metrics even if it were successful.
WH Smith's ratings are supported by the company's strong brand
recognition in the U.K. market and its considerable market
positions in the retail of books, newspapers, magazines and
stationery, as well as its number one market position in U.K.
news distribution. It is constrained by an increasingly
competitive market in its core U.K. retail business, the
seasonality of its business, the company's heavy reliance on
operating leases in its business model and the execution risk
related to the UK retail strategy.
Aside from the GBP120 million pension fund injection, WH Smith's
on-balance sheet debt is limited. However, substantial debt-like
commitments exist in the form of annual operating lease
payments, which amounted to GBP206 million of gross rental
commitments at FYE03.
CONTACT: FITCH RATINGS
Britta Holt
Corporates, London
Phone: + 44 (0) 20 7862 4022
Jonathan Pitkanen
Phone: + 44 (0) 20 7417 4201
Media Relations:
Alex Clelland, London
Phone: +44 20 7862 4084
WINDMILL PROPERTY: Calls in Liquidator
--------------------------------------
At an Extraordinary General Meeting of the Windmill Property
Company Limited on July 23, 2004 held at Allen House, 1 Westmead
Road, Sutton, Surrey SM1 4LA, the Special Resolution to wind up
the company was passed. Martin Charles Armstrong of Turpin
Barker Armstrong, Allen House, 1 Westmead Road, Sutton, Surrey
SM1 4LA has been appointed the Liquidator of the Company for the
purpose of such winding-up.
CONTACT: TURPIN BARKER ARMSTRONG
Allen House
1 Westmead Road, Sutton,
Surrey SM1 4LA
Liquidator:
Martin Charles
Phone: +44 (0) 20 8661 7878
Fax: +44 (0) 20 8661 0598
E-mail: tba@turpinba.co.uk
Web site: http://www.turpinba.co.uk
*********
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,
Liv Arcipe, and Julybien Atadero, Editors.
Copyright 2004. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
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