/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/041105.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, November 5, 2004, Vol. 5, No. 220 Headlines F R A N C E AIR-BOR: Succumbs to Insolvency AU PAIN: Commercial Court Names Liquidator LUSTUCRU RIZ: Panzani Wins Court Backing on Plant Closure G E R M A N Y ALPHA TALENT: Creditors Have Until Next Week to File Claims CAMP MARKT: Under Bankruptcy Administration CONTINENTAL AG: To Merge Subsidiary with Phoenix DYNAMIXX SPORTCLUB: Creditors' Claims Due Next Month E. BAUS: Nurnberg Court Appoints Insolvency Manager FLOMER HAUSTECHNIK: Sets First Creditors' Meeting Mid-December GECKO TEC: Deadline for Creditors' Claims Nears GROTHOFF ZELTBETRIEBE: Succumbs to Bankruptcy HANNOVER TECHNOLOGY: Administrator's Report Out January KARSTADTQUELLE AG: Lowers Sales, Earnings Forecast KARSTADTQUELLE AG: Predicts Deeper Losses PFLEIDERER AG: Earnings of All Business Centers Up SBS METALL: Creditors Have Until Next Week to File Claims SIEGFRIED FABRITZ: Creditors to Meet Later this Month UNTERNEHMENSBERATUNG POLLHEIDE: Declared Bankrupt VENTURION AG: Insolvency Knocks at Broker's Door H U N G A R Y MALEV HUNGARIAN: Lone Offer Values Firm Way Below HUF3.5 Bln I R E L A N D ELAN CORPORATION: Appoints Richard Collier Executive VP, Counsel ELAN CORPORATION: US$850 Million Debt Offering Rated B3 I T A L Y ALITALIA SPA: September Financial Position Improves by EUR89 Mln K Y R G Y Z S T A N KYRGYZKOMUR: Selling Asset at Public Auction Today N E T H E R L A N D S ROYAL SHELL: State Takes over Gasunie's Transportation Business VERSATEL TELECOM: Third-quarter Net Loss Down to EUR4 Million VERSATEL TELECOM: Dutch Unit to Trade as Versatel Beginning 2005 P O L A N D AGORA SA: Increasing Stake in 'Multimedia Plus' R U S S I A AQUA-VITA: Appoints Y. Rodionov Insolvency Manager KIMI-GEO-NEFT: Proofs of Claim Deadline Expires Next Month KURGAN-PRIBOR-INFORT: Kurgan Court Appoints Insolvency Manager NALCHINSKIY TINNED: Ordered to Undergo Bankruptcy Supervision NIZHNETAGILSKAYA: Gives Creditors Until December to File Claims NIZHNEVARTOVSK-NEFTE-KHIM-MONTAZH: Declared Insolvent PERELESHINSKIY SUGAR: Under Bankruptcy Supervision PROM-VENTILATION: Insolvency Manager to Temporarily Oversee Firm SIB-NEFTE-KOMPLEKT-MONTAZH: Bankruptcy Supervision Begins WATER CHANNEL: Court Sets Hearing January Next Year YUKOS OIL: Seizure of Tomskneft-VNK Shares Stands YUKOS OIL: Calls EGM to Tackle Liquidation of Company YUKOS OIL: Court to Hear New Tax Debt Suit in Two Weeks YUKOS OIL: Wants Judge Handling Tax Case Replaced YUKOS OIL: Court Adjourns Case Against Khodorkovsky S P A I N CAJA GRANADA: Individual Rating Affirmed at 'B/C' U K R A I N E AGROSINTEZ-PROMINVEST: Proofs of Claim Due this Week BIRD TULCHINSKIJ: Proofs of Claim Deadline Nears EURO-METAL: Under Bankruptcy Supervision FOBOS UNITED: Kyiv Court Appoints Liquidator KERCH' PROLIV: Insolvency Manager to Temporarily Oversee Firm KONUS: Harkiv Court Launches Bankruptcy Proceedings LOZOVA' AUTO 16347: Declared Insolvent PETRIKIVSKIJ ROZPIS: Under Bankruptcy Supervision PLEMZAVOD UKRAINA: Bankruptcy Supervision Begins STAN: Succumbs to Insolvency U N I T E D K I N G D O M AA ELEVEN: Owners Agree to Wind up Business ADVANCE WINDOWS: In Administrative Receivership BAE SYSTEMS: Denies Being Investigated by Serious Fraud Office BARCLAYS AEROSPACE: Calls in Liquidators from Deloitte & Touche BLUE TOP: Former Director Disqualified for Eight Years CHESAPEAKE UK: Calls in Liquidator from Numerica CHESHIRE CLOTHING: Davenham Trade Appoints Receiver EBLAW LIMITED: Hires KPMG as Liquidator END OF LIFE: Directors Receive Eight-year Ban ENERGIS PLC: Requests Anti-trust Probe Against Eircom FREDORIS LIMITED: Appoints Liquidator from Numerica HARROGATE MANAGEMENT: Names Kroll Limited Administrator HSBC HOLDINGS: Brings in Liquidator from Deloitte & Touche HUMBERSTON PARK: Creditors' Meeting Set Next Week HYMET SERVICES: Insolvency Service Bans Two Directors INDUSTRIAL AUTOMATED: Members Opt to Liquidate Company KEYLINK WOLVERHAMPTON: Director Banned from Holding Exec Post LODGE FARM: Cattles Invoice Appoints Jacksons Jolliffe Receiver MCM TEXTILES: Calls Creditors' Meeting MYTRAVEL GROUP: Considering Scheme of Arrangement as Plan B MYTRAVEL GROUP: Bondholders Warn of Insolvency NSA (EUROPE): Hires McTear Williams & Wood as Administrator OAKWOOD HOMES: Names Kroll Limited Administrator PANTON FILM: Special Winding up Resolution Passed PAYCHECK SERVICES: Appoints Begbies Traynor Administrator PREMIER FOODS: Long-term Rating Withdrawn After Debt Payment QUADSECT LIMITED: Calls in Administrators from Begbies Traynor SEDAO TECHNOLOGY: Hires Joint Administrators from Harrisons RAILFORCE LIMITED: Sets Creditors' Meeting Next Week SOUTHWOOD DEVELOPMENTS: Hires D. E. Jeal as Liquidator TURNER & NEWALL: Court Backs Trustees' Stand on Rescue Plan YORKSHIRE CHEMICALS: HSBC Bank Brings in Receiver from PwC ********* =========== F R A N C E =========== AIR-BOR: Succumbs to Insolvency ------------------------------- The Commercial Court of Dijon placed Air-Bor (B 349 038 158) into liquidation on October 24, 2004 and appointed Bisseux Jean- Joachim liquidator. Creditors are urged to submit their proofs of claim to the liquidator as soon as possible. The company is involved in plane maintenance and rental, training of pilots and crew. CONTACT: AIR-BOR Aeroport de Dijon 21600 Longvic Bissieux Jean-Joachim, liquidator 36 Rue Jeannin 21000 Dijon AU PAIN: Commercial Court Names Liquidator ------------------------------------------ The Commercial Court of Dijon placed Au Pain Dore (B 391 600 855) into liquidation on October 19, 2004 and appointed Bissieux Jean-Joachim liquidator. Creditors are urged to submit their proofs of claim to the liquidator as soon as possible. The company makes and sells baked products and confectionaries. CONTACT: AU PAIN DORE 8 Rue Bernard-Laureau 21110 Genlis Bissieux Jean-Joachim, liquidator 36 Rue Jeannin 21000 Dijon LUSTUCRU RIZ: Panzani Wins Court Backing on Plant Closure --------------------------------------------------------- A regional court has allowed food group Panzani to shut down its subsidiary, Lustucru Riz, Le Figaro says. Panzani also gained the court's nod to implement a redundancy plan involving 146 employees of the troubled rice producer. Lustucru Riz has been out of operation since floods destroyed its facilities in 2003. As compensation for the damage, Panzani received EUR15.5 million, EUR11.6 million of which will be used to cover redundancy packages and staff relocation. Panzani said production costs at the plant are too high and customers are shifting to specialty rice. Panzani now plans to outsource its rice production in Belgium and Italy. Lustucru Riz employees have been occupying the factory since March, when its closure was announced. A number of workers are planning to start their own operation on the site and are optimistic authorities would dole out some support. Lustucru Riz had an annual turnover of EUR50 million. CONTACT: LUSTUCRU RIZ 4 Rue Boileau 69006 Lyon 06 Web site: http://lusturizvivra.free.fr ============= G E R M A N Y ============= ALPHA TALENT: Creditors Have Until Next Week to File Claims ----------------------------------------------------------- The district court of Hamburg opened bankruptcy proceedings against Alpha Talent Casting & Promotion GmbH on Oct. 11. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Nov. 10, 2004 to register their claims with court-appointed provisional administrator Sonke Hansen. Creditors and other interested parties are encouraged to attend the meeting on Dec. 10, 2004, 11:10 a.m. at the insolvency court of Hamburg Insolvenzgericht, Weidestrasse 122d, 22083 Hamburg, Saal 1, 2. Ebene (Zi. 2.18) at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: ALPHA TALENT CASTING & PROMOTION GMBH Heidenkampsweg 48, 20097 Hamburg Contact: Peter Raithel, Manager Sonke Hansen, Insolvency Manager Monckebergstrasse 17, 20095 Hamburg Phone: 309694-0 CAMP MARKT: Under Bankruptcy Administration ------------------------------------------- The district court of Chemnitz opened bankruptcy proceedings against Camp Markt OHG Schadler & Schneider on Oct. 8, 2004. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Dec. 2, 2004 to register their claims with court-appointed provisional administrator Bernward Widera. Creditors and other interested parties are encouraged to attend the meeting on Jan. 5, 2005, 8:45 a.m. at Saal 24, Gerichtsgebaude Furstenstrasse 21, Chemnitz at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: CAMP MARKT OHG SCHADLER & SCHNEIDER (HRA 322 -- Amtsgericht Chemnitz) Stresemannstrasse 20, 08523 Plauen Contact: Dietmar Schadler, Manager Hans-Jurgen Schneider, Manager Bernward Widera, Insolvency Manager Buttenstrasse 4, 08058 Zwickau CONTINENTAL AG: To Merge Subsidiary with Phoenix ------------------------------------------------ Continental Aktiengesellschaft plans to enter its 100% group company, ContiTech Holding GmbH (in future: ContiTech AG) into a domination and profit and loss absorption agreement with Phoenix Aktiengesellschaft, and to merge Phoenix and ContiTech. These structural changes shall be initiated timely after the closing of the voluntary takeover offer of Continental Aktiengesellschaft to the shareholders of Phoenix Aktiengesellschaft, which is expected to occur until 3 November 2004. After consummation of the takeover offer, Continental Aktiengesellschaft will hold more than 75% of the voting stock of Phoenix Aktiengesellschaft. The structural changes are intended to allow for a combination of the business activities of Phoenix and ContiTech in order to realize the advantages of the merger as soon as possible in the best interest of the shareholders and employees of the companies concerned. CONTACT: CONTINENTAL AKTIENGESELLSCHAFT Vahrenwalder Strasse 9 D-30165 Hannover Phone: +49 (0) 511 938 01 Fax: +49 (0) 511 938 81770 Web site: http://www.conti-online.com DYNAMIXX SPORTCLUB: Creditors' Claims Due Next Month ---------------------------------------------------- The district court of Chemnitz opened bankruptcy proceedings against Dynamixx Sportsclub 103 GmbH on Oct. 11, 2004. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Dec. 6, 2004 to register their claims with court-appointed provisional administrator Tatjana Gotsch. Creditors and other interested parties are encouraged to attend the meeting on Jan. 11, 2005, 11:00 a.m. Saal 27, Gerichtsgebaude Furstenstrasse 21, Chemnitz at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: DYNAMIXX SPORTCLUB 103 GMBH Gutwasserstrasse 3, 08056 Zwickau Frank Ruger, Insolvency Manager Rechtsanwaltin Tatjana Gotsch Buttenstrasse 4, 08058 Zwickau E. BAUS: Nurnberg Court Appoints Insolvency Manager --------------------------------------------------- The district court of Nurnberg opened bankruptcy proceedings against E. Baus GmbH & Co. KG on Oct. 9. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Dec. 15, 2004 to register their claims with court-appointed provisional administrator Dr. Steffen Goede. Creditors and other interested parties are encouraged to attend the meeting on Dec. 2, 2004, 11:00 a.m. at which time the administrator will present his first report of the insolvency proceedings. The court will verify the claims set out in the administrator's report on Jan. 20, 2005, 11:00 a.m. at the district court of Nurnberg, Flaschenhofstr. 35, Sitzungssaal 152/I. E. Baus sells steel, aluminum and glass building materials. CONTACT: E. BAUS VERWALTUNGS-GMBH Contact: Elmar Peter Baus, Manager Am Keuper 12, 90475 Nurnberg HRA 11325 Dr. Steffen Goede, Insolvency Manager Peuntgasse 3, 90402 Nurnberg Phone: 0911/27980-0 Fax: 0911/27980-90 FLOMER HAUSTECHNIK: Sets First Creditors' Meeting Mid-December -------------------------------------------------------------- The district court of Bielefeld opened bankruptcy proceedings against Flomer Haustechnik GmbH on Oct. 14. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Nov. 25, 2004 to register their claims with court-appointed provisional administrator Martin Kienitz. Creditors and other interested parties are encouraged to attend the meeting on Dec. 16, 2004, 10:30 a.m. at the district court of Bielefeld Gerichtstrasse 6, 33602 Bielefeld, 4. Ebene, Saal 4065 at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. Flomer installs electrical, heating and sanitary systems. CONTACT: FLOMER HAUSTECHNIK GMBH Poststr. 33, 32361 Preussisch Oldendorf Contact: Nadine Buscher, Manager Poststr. 33, 32361 Preussisch Oldendorf Martin Kienitz, Insolvency Manager Rugenweg 14, 32427 Minden GECKO TEC: Deadline for Creditors' Claims Nears ----------------------------------------------- The district court of Cologne opened bankruptcy proceedings against Gecko Tec GbR Ten Hovel & Oechelhauser on Oct. 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Nov. 23, 2004 to register their claims with court-appointed provisional administrator Wolfgang Breuer. Creditors and other interested parties are encouraged to attend the meeting on Dec. 14, 2004, 11:10 a.m. at the district court of Cologne Hauptstelle, Luxemburger Strasse 101, 50939 Koln, Erdgeschoss, Saal 14 at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: GECKO TEC GBR TEN HOVEL & OECHELHAUSER Schanzenstrasse 3, 51063 Koln Contact: Andreas ten Hovel, Partner Bergerfurth 1, 46487 Wesel Markus Oechelhauser, Partner Augustastr. 9, 51065 Koln Wolfgang Breuer, Insolvency Manager Sachsenring 75, 50677 Koln Phone: 3981180 Fax: +492213981190 GROTHOFF ZELTBETRIEBE: Succumbs to Bankruptcy --------------------------------------------- The district court of Essen opened bankruptcy proceedings against Grothoff Zelthetriebe GmbH on Oct. 15. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Nov. 24, 2004 to register their claims with court-appointed provisional administrator Georg F. Kreplin. Creditors and other interested parties are encouraged to attend the meeting on Dec. 8, 2004, 1:30 a.m. at the district court of Essen, Hauptstelle, Zweigertstr. 52, 45130 Essen, 2. OG, gelber Bereich, Saal 293 at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: GROTHOFF ZELTBETRIEBE GMBH Antoniusweg 6, 45721 Haltern Contact: Dagmar Hildegard Grothoff, Manager Antoniusweg 6, 45721 Haltern Georg F. Kreplin, Insolvency Manager Limbecker Platz 1, 45127 Essen Phone: 0201 220 05 02 Fax: 0201 220 05 40 HANNOVER TECHNOLOGY: Administrator's Report Out January ------------------------------------------------------- The district court of Hannover opened bankruptcy proceedings against HATEC -- Hannover Technology Services GmbH on Oct. 12. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Dec. 15, 2004 to register their claims with court-appointed provisional administrator Reinhard Muhl. Creditors and other interested parties are encouraged to attend the meeting on Jan. 19, 2005, 10:20 a.m. at Saal 226, 2. Obergeschoss district court of Hannover Dienstgebaude Hamburger Allee 26, 30161 Hannover at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: HATEC -- HANNOVER TECHNOLOGY SERVICES GMBH Max-Muller-Str. 22, 30179 Hannover Contact: Dr. Ralf-Otto Hansel, Manager Michael Josefus, Manager Reinhard Muhl, Insolvency Manager Luisenstr. 9, 30159 Hannover Phone: 0511/36703-0 Fax: 0511/36703-133 KARSTADTQUELLE AG: Lowers Sales, Earnings Forecast -------------------------------------------------- (a) Concept announced for the reorganization and realignment of the KarstadtQuelle Group; (b) Solidarity pact being implemented; (i) Cost-cutting program totaling about EUR760 million agreed with employees' representatives for 2005 to 2007; (ii) Capital increase with an issue volume of EUR500 million; (iii) Existing credit lines guaranteed by banks until December 31, 2004; (iv) Subsequent financing via syndicated credit lines of about EUR1.75 billion is being negotiated; (c) Background conditions in the German retail trade remain difficult in the third quarter; (d) Group sales in the third quarter down 5.9 %; (e) Quarterly operating earnings (EBTA) -EUR31.1 million (previous year: EUR31.4 million). Cost-cutting and optimization measures assist minimizing earnings charges resulting from decreasing sales; (f) Special charges resulting from the reorganization and realignment already made good in the third quarter with an EBTA effect amounting to EUR1.1 billion; (g) Net financial liabilities remain reduced, working capital markedly reduced; (h) Sales in the core brands at the beginning of the fourth quarter affected; (i) Sales and earnings forecast for the 2004 financial year adjusted: (1) Sales forecast: -EUR7% (2) Earnings forecast (operating EBTA): -EUR280 million to -EUR295 million At a Glance 30.09.2004 30.09.2003 Change in % Sales (in EUR million) Over-the-counter retail 4,459.8 4,801.0 - 7.1 Mail order 5,431.5 5,747.9 - 5.5 Services 935.5 1,023.9 - 8.6 Real estate 433.0 422.5 2.5 Reconciliation account - 1,174.8 - 1,269.5 - Group sales 10,085.0 10,725.8 - 6.0 Earnings (in EUR million) Earnings from ordinary activities - 570.4 505.3 - EBITA - 1,251.8 44.4 - EBTA - 1,569.0 - 128.0 - EBTA (adjusted/not including special factors) - 419.6 - 320.7 - 30.8 Other information Employees as of 30.09 94,779 100,922 - 6.1 Full-time employees on average (01.01.-30.09.) 76,019 79,726 - 4.6 Sales space in Over-the-counter Retail ('000 sq. m.) 2,621.9 2,620.4 0.1 Branches Department stores 179[1] 181* - Sports stores 36 31* - Karstadt Warenhaus AG 215 212 - Specialty stores number 301 304 - Total number of branches 516 516 - Investments (in EUR million) 291.1 312.3 - 6.8 KARSTADT QUELLE AG Market price on 30.09. 12.55 21.92 - 42.7 Share Highest price (01.01-30.09) 21.62 25.90 - Lowest price (01.01-30.09) 12.25 10.17 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - * The sports stores have been independent branches since December 31, 2003. The 2003 quarters are adjusted. [1] Not including eight Schaulandt branches. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Report of the Management Board The third quarter of the 2004 financial year was of particular importance for the KarstadtQuelle Group. Mainly because of the continuing difficult economic position in the German retail trade our company group with nearly 100,000 staff came under pressure. To ensure the future of KarstadtQuelle, the Management Board drew up a far-reaching package of measures for the reorganization and realignment of the group and on September 28, 2004, presented it to the public. The aim is a sustained improvement in the earnings situation and the strengthening of the equity capital base and improvement of the group's financing structure. The program of measures provides for the toughest and most radical changes that the KarstadtQuelle Group has ever had to face. The measures, although rather painful in the short term, are aimed at once more creating good future prospects for the group in the medium to long term. The core of the realignment is the refocusing of the group on its strengths and core competences. Our core business is being reorganized and strategically repositioned. At the same time we want to dispose of a not inconsiderable part of our portfolio of holdings. Over-the-Counter Retail Over-the-counter retail will be clearly focused. We want to dispose of the specialty store chains SinnLeffers, Wehmeyer, Golf House and Runners Point. Because of their size these formats do not enjoy the market position that we strategically expect for the operation of a format, or they enjoy a good positioning in their market segments, which can be better developed by specialized purchasers than by us. We want to rectify the competitive disadvantage of the department stores and their great heterogeneity and complexity. We therefore plan to split our department store portfolio into two groups with differentiated strategies. In the next few years we want to use our core portfolio to achieve solid growth, whilst disposing of our non-core portfolio. We plan to direct our management capacity and the allocation of financial means consistently toward the further development of our core portfolio. The core portfolio is achieving a sales volume of EUR4.5 billion and contributing 80 % of total sales at the department stores. The portfolio comprises 89 department stores with more than 8,000 sq. m. of retail space and 1.5 million sq. m. of space overall. The department stores are located in towns and cities with catchment areas of more than 100,000 inhabitants and a purchasing power higher than the German average. With this core portfolio we are pursuing a strategy for improving sales and earnings. The central elements will be the utilization of all advantages arising from the focus on a homogeneous department store group, the increase in sales by professional presentation and concentration on city-center segments and price ranges. The alignment towards the system business is aimed at also enabling structures and processes to be markedly slimmed down and result in sustained cost reductions. In addition, a package of measures for realignment of the department stores on the basis of a new segment ranking with greater emphasis on the Fashion, Sports, and Personality consumption segments (the latter comprises fragrances, jewelry, leather goods and books). The non-core portfolio earmarked for disposal is achieving sales at present totaling EUR0.7 billion. It comprises 92 mainly small stores. We have grouped 77 small stores (under 8,000 sq. m of retail space) in a "medium-sized town portfolio" under the name "Karstadt Kompakt." Although a number of these department stores are profitable at a branch level, their heterogeneous and complex structure means that they generate few synergies in the Karstadt combine. In our estimation these 77 branches, with their own independent management and on the basis of their own independent strategy, their own independent market presentation and their own independent market positioning, have good chances of success. For this reason we plan to concentrate these branches in a single unit, hive them off and initially continue to manage them along specialized lines. The disposal is to be completed in the years 2005 to 2008. The first priority is outright disposal to an investor in their entirety. Alternatively, the stores will be sold off gradually or closed and their space relet. Realignment of Mail Order Our Mail order segment covers virtually the entire spectrum of universal and specialty mail order, is market leader in Germany and is having a leading position in many countries of Europe. Our strategy aims to take account of the recent differentiated performance of the individual mail order segments. The expansion strategy of our Specialty mail order and foreign growth segments is to continue to be progressed and, above all, its implementation further accelerated by organic growth. The share contributed by our foreign business to mail order sales is to be even further increased. At the same time we want to further expand our strong position in the strategic E-commerce growth segment. Because of the sluggish sales performance we want to realign universal mail order in Germany. The realignment of universal mail order in Germany is based on even clearer profiling and differentiation of the two brands Quelle and Neckermann. The core is intended to be a clear target group differentiation. Quelle is to focus its entire service range on the "Established family" and "Generation 50+" target groups. At Neckermann we plan to focus on the target group of "young oriented people", who, whatever their age e.g. in the textile range, prefer a sporty casual look. The - as the customer perceives it - rather indistinct profile of universal mail order is to be made much more distinctive. Quelle and Neckermann are to become multi-specialists. They are to concentrate on distinct profiling product ranges and present themselves with the same competence as a specialty market. Quelle is to concentrate on the "Modern to classical fashion", "Modern to classical living" and "Technology" profiling product ranges. Neckermann is to be profiled towards younger oriented customers mainly through "Young fashion", "Young living" and "Large sizes". We also plan to make the advertising campaign chain, i.e. targeting customers with catalogs, much more contemporary. To increase the frequency with which product ranges are changed to the same level as our competitors in Over-the-counter retail, we want to discontinue the classical position of our main catalog in half-yearly cycles and change to shorter seasonal cycles and streamline the catalogs. In specialty mail order we want to continue to maintain our growth course. The higher margins in this segment by comparison with universal mail order contribute substantially to increased added value. To promote growth, we want to consistently shift the emphasis of our investments in favor of operations abroad. As a result, we plan for higher growth abroad than in Germany. Foreign growth will take priority in mail order. The share contributed by foreign business to sales in past years already rose to 24% - by 2006 and is set to rise further. In 2005 and 2006, under the brand names Quelle or Neckermann, we plan entry into markets in 14 countries. The emphasis of our expansion lies in Central-Eastern Europe. Today we are No. 1 in mail order in nearly all the countries in which we are represented and want to consistently utilize the great growth potential of these fast developing national economies. In e-commerce too we plan continued growth. We are already one of the leading companies in Germany and the European market. Over the period 2001 to 2003 we posted average yearly growth of about 40%. Online demand today contributes a share of 19 percent to mail order sales. We plan further increases yearly on the basis of the high level already reached. The share contributed to overall mail order sales by online demand is set to rise even further. Focus of the Services Segment In the Services segment the large number of operations is to be drastically reduced by means of divestments and outsourcing. We shall be focusing on retail-related, high-return services. Within the framework of our portfolio-streamlining program we want to dispose of subsidiary processes of the retail business and the non-core retail business. Either the companies are to be sold or we shall outsource the operational business. We want to achieve earnings growth through retail-related services. This is to include also the holding in Thomas Cook. Thomas Cook after its reorganization achieved a positive result in its third quarter, although the cumulative result after nine months (Nov. 1, 2003 to July 31, 2004) is still negative. We also want to press ahead with the expansion of our successful new information, financial and customer relations services and TV commerce. This at present relatively small segment is out of the start-up phase and is growing dynamically. Focus on Development of 89 Large Department Stores We have at our disposal retail real estate in top locations in city centers, complemented by a location and retail environment with a high customer footfall. We plan to reorganize our real estate portfolio and dispose of real estate with no strategic importance. At the same time we shall press ahead with the liquidation of real estate, which does not belong to our core portfolio in the department store segment. We shall also further develop the 89 large department stores in the department store core portfolio. The aim of these measures is to strengthen the market position of the main lessee, Karstadt. We are also testing various models for separating the real estate and retail businesses. Implications The strategic realignment will have a number of implications. Tough consolidation measures are already being taken in the current financial year. By the successful conclusion of our portfolio-streamlining program we plan to do away with outside group sales amounting to some EUR1.3 billion. From this we hope to achieve a considerable inflow of liquidity, spread over 2004 and 2005. Valuation and restructuring measures necessary in connection with the strategic realignment result in extraordinary and non- recurring expenditure amounting to EUR1.3 billion in the profit and loss account to September 30, 2004, (EBTA charge: 1.15 billion a). These measures are at the same time aimed at radically reducing our balance sheet risks. The profit and loss expenses of revaluation measures in particular in connection with the portfolio restructuring program amount to EUR826 million (EBTA charge: EUR672 million). Restructuring measures amount to EUR477 million in total. It will be directed mainly towards staff efficiency measures. Important Preconditions Created for the Implementation of the Solidarity Pact The implementation of the reorganization and realignment in the KarstadtQuelle Group is based on a solidarity pact between management, workforce, shareholders and banks. On October 14, 2004, important preconditions were created for the implementation of this solidarity pact. Thus our planning is aimed at laying one of the fundamental bases for the future viability of the KarstadtQuelle Group. The workforce will do its share to implement the realignment and the tough consolidation measures. In negotiations with employees' and trade union representatives a cost-cutting program to save about EUR760 million was resolved for the 2005 to 2007 financial years. The management and executives will make their contribution to the reorganization by reductions in their salary packages. Shareholders' contribution to the solidarity pact will take the form of a waiver of dividend payment for the 2004 and 2005 financial years. Furthermore, a capital increase with a subscription right and a total issue volume of EUR500 million is planned. The Management Board and the Supervisory Board at their meeting on October 14, 2004, resolved to call an extraordinary meeting of shareholders on November 22, 2004. The purpose of this meeting is to pass a resolution for the capital increase. The members of the Madeleine Schickedanz voting pool and the Dresdner Bank AG have stated that under the capital increase they are principally prepared to subscribe to new shares with a total value of about EUR280 million. This capital measure is to be implemented this year. KarstadtQuelle is being supported in this process by Dresdner Bank AG and ABN AMRO, which have undertaken in a provisional agreement under conditions precedent to support the capital increase to ensure the highest possible certainty of the transaction. The aim of the capital measures is the strengthening of the equity capital base. Furthermore, the group is to be strengthened by this commitment to have a better platform to implement the strategic realignment. Discussions regarding our concept for reorganizing the KarstadtQuelle Group were held with the lending banks. The banks are prepared to constructively accompany the process of reorganization and realignment. The banks have agreed to an extension of short-term credit lines until December 31, 2004. Negotiations for a syndicated financing credit with a volume of about EUR1.75 billion for the next three years have begun. Home Demand Remains Sluggish The economic situation in Germany deteriorated in the third quarter of 2004. It is to be expected that the now foreshadowed slowdown in the rate of growth in the United States of America will have negative effects on German exports. This would mean that the most important drivers behind Germany's economy at present would lose some of their force. There is still no substantial impetus coming from private consumption. The still weak situation in the jobs market, the debate about reform of the jobs market and substantial oil price rises during the current year continues to inhibit private spending and hinder an appreciable improvement in the climate of consumer spending. As a result, sales in the "true" retail trade decreased by 1.1 % during the first nine months of 2004. Group Sales in the Third Quarter Down 5.9 % The KarstadtQuelle Group posted a decrease in sales by 5.9% to 3.21 billion a over the period from July 1 to September 30 (the same quarter the previous year: EUR3.41 billion). Compared with the second quarter (-EUR7.6 %), the sales decrease lost some of its momentum in the third quarter of 2004. The performance remains unsatisfactory, but was within the bounds of our moderate expectations. In Over-the-counter retail, which shows a quarterly decrease by 7.7%, the department stores, and, now to an increased extent, the specialty stores also posted falling sales. In Mail order, where sales decreased by 5%, the picture was varied. While the Specialty mail order, Foreign and E-commerce growth segments continued to grow, sales in Universal mail order in Germany markedly decreased. The group achieved sales of EUR10.08 billion (previous year: EUR10.73 billion) in the first nine months of the 2004 financial year. This represents a decrease of 6%. Earnings Hampered by Reorganization and Realignment Group income before tax and amortization (EBTA) in the third quarter, after adjustment for special factors, came to -EUR31.1 million (previous year: -EUR31.4 million). Weak business in the two retail segments held down earnings. The Services segment markedly improved its earnings, mainly because of reduced losses at Thomas Cook. In connection with the reorganization and realignment of the KarstadtQuelle Group quarterly EBTA during the current year takes into account special factors (valuation and reorganizational measures). This resulted in an extraordinary impact of EUR1.1 billion on earnings. Taking into account these special factors, EBTA stood at -EUR1.13 billion (previous year: -EUR30.7 million). In the first nine months of the 2004 financial year group EBTA, after adjustment for special factors, stood at -EUR419.6 million (the same period in the previous year: -EUR320.7 million). The decrease in earnings thus comes to EUR98.9 million. Because of the sales decrease of EUR640.8 million and the loss in gross income linked to it earnings decreased at a disproportionately much lower rate. The decisive factors are the cost cutting programs the implementation of which has considerably progressed. Report of the Management Board Taking into account these special factors, EBTA stood at - EUR1.57 billion (previous year: -EUR128 million). While the current year is extraordinarily burdened by the reorganization and realignment measures, the reorganization of the old-age pension provision in the previous year had a positive effect on earnings. Earnings per share at September 30, 2004 stood at -EUR14.35 (previous year: -EUR0.85). After adjustment for special factors earnings per share stood at -EUR2.09 (previous year: -EUR2.65). Net Financial Liabilities Slightly Reduced The reduction of net financial liabilities (not taking into account pension provisions including the liabilities from the companies held for sale) was successfully continued. Net financial liabilities reach their highest level at the end of September of every financial year because of the increased volume of orders for the Christmas period. Despite the still difficult retail business they were reduced by EUR85 million to EUR4.08 billion (previous year: EUR4.16 billion) for the period to the key date. Working Capital Markedly Reduced A positive contribution to the easing of the indebtedness position was made by significantly reducing working capital by EUR1.13 billion to EUR1.93 billion. The decrease of 36.8% was achieved mainly by the targeted reduction of the inventory. Trade receivables were also reduced as a result of, amongst other things, the expansion of the ABS program in the fourth quarter of 2003. Furthermore, trade payables were optimized. They rose by 16.3 % over the period to the review date, taking into account changes to balance sheet postings. The decisive factor here was the successful implementation of a program for extending payment targets in the retail segments. New Finance Director at KarstadtQuelle AG KarstadtQuelle AG is to have a new finance director. Harald Pinger, 44, until recently finance director at Messer Griesheim GmbH, based in Frankfurt/Main, has taken over this responsibility with effect from October 1, 2004. Sales Performance by the Core Brands Currently Impaired: Whole- year Forecast Adjusted With, as our experience shows, a contribution of 30% to yearly sales, the fourth quarter of the financial year is of great importance for the KarstadtQuelle Group. In this period we plan to boost sales by selective marketing campaigns both in Mail order and Over-the-counter retail. The Karstadt department stores will also mount a customer service offensive and an image campaign. We expect limited support from the market and assume that the retail business will continue to be difficult and competition in the home market will remain intense. The KarstadtQuelle Group has in the past few weeks begun a comprehensive reorganization program. The implementation of the program is also linked with substantial measures on the personnel side. For a number of weeks this attracted widespread attention from the general public. We noted as a negative side effect a reluctance to buy due to customer unease. Particularly affected by this was, as already mentioned, the domestic business performance by universal mail order at Germany's leading mail order company, Quelle. The sales forecast is therefore being adjusted to -7% and the forecast for adjusted EBTA from -EUR280 million to -EUR295 million. In the management's estimation the sales decrease at the beginning of the fourth quarter was an understandable, but temporary reaction by customers. The Management assumes that the scope of the currently planned program of reorganization will not need to be adjusted to take account of this temporary effect. Essen, November 2004 The Management Board Full copy of KarstadtQuelle's third-quarter results is available free of charge at: http://bankrupt.com/misc/karstadtquelle_3q2004.pdf. CONTACT: KARSTADTQUELLE A.G. Theodor-Althoff-Str. 2 D-45133 Essen Phone: +49-201-727-1 Fax: +49-201-727-5216 Web site: http://www.karstadtquelle.com Investor Relations Phone: +49 (0) 2 01 7 27 - 9816 Fax: +49 (0) 2 01 7 27 - 9854 E-mail: investors@karstadtquelle.com Corporate Communications Phone: +49 (0) 2 01 7 27 - 2031 Fax: +49 (0) 2 01 7 27 - 9853 E-mail: konzernkommunikation@karstadtquelle.com KARSTADTQUELLE AG: Predicts Deeper Losses ----------------------------------------- The implementation of the program for restructuring and realignment of the KarstadtQuelle Group presented on September 28, 2004 is showing initial progress. A cost-cutting program aimed at saving about EUR760 million was agreed with employees' representatives for 2005 to 2007. Furthermore, a capital increase with a pre-emptive subscription right and a total issue volume of EUR500 million has been initiated. This is to be resolved at an extraordinary meeting of shareholders on November 22, 2004. The major KarstadtQuelle AG shareholders, the members of the Madeleine Schickedanz voting pool and the Dresdner Bank AG have stated that they are in principle prepared to subscribe to new shares in the capital increase with a total value of about EUR280 million. It is envisaged to complete the rights issue prior to year-end. The aim is to strengthen the equity capital base and form a better platform for implementation of the strategic realignment. The lending banks have agreed to an extension of short-term credit lines until December 31, 2004. Negotiations for a syndicated financing credit are currently being held. The KarstadtQuelle Group posted a decrease in sales by 5.9% to EUR3.2 billion over the period from July 1 to September 30. The performance remains unsatisfactory, but was within our moderate expectations. The group achieved sales of EUR10.1 billion in the first nine months of the 2004 financial year. This represents a decrease of 6%. Compared with the same period the previous year, group earnings (EBTA) before tax and amortization of goodwill and after adjustment for special factors remained at -EUR31 million in the third quarter. The adverse impact on earnings through the sales decrease was set off by the well-advanced cost-cutting programs. Quarterly EBTA in the current year includes one-off factors (valuation and restructuring measures) amounting to EUR1.1 billion resulting from the restructuring and realignment of the KarstadtQuelle Group. Taking into account this extraordinary impact on earnings, EBTA stood at -EUR1.1 billion (previous year: -EUR31 million). Group EBTA after adjustment for special factors came to -EUR420 million in the first nine months of the 2004 financial year ( -EUR321 million in the previous year). Including the negative special factors in the current year EBTA was -EUR1.57 billion compared with the previous year of -EUR128 million, which benefited from positive special factors. The comprehensive restructuring program is also linked with wide-ranging measures on the personnel side. For a number of weeks this attracted widespread attention from the general public. We noted as a negative side effect a reluctance to buy due to customer unease. Particularly affected by this was the domestic business performance of universal mail order at Germany's leading mail-order company, Quelle. The sales forecast is therefore being adjusted to approximately -7% and the forecast for adjusted EBTA to between -EUR280 million to -EUR295 million. In the management's estimation the sales decrease at the beginning of the fourth quarter was an understandable, but temporary reaction by customers. Essen, Nov. 3, 2004 The management board * * * NOT FOR DISTRIBUTION IN THE UNITED STATES CONTACT: KARSTADTQUELLE A.G. Theodor-Althoff-Str. 2 D-45133 Essen Phone: +49-201-727-1 Fax: +49-201-727-5216 Web site: http://www.karstadtquelle.com Investor Relations Phone: +49 (0) 2 01 7 27 - 9816 Fax: +49 (0) 2 01 7 27 - 9854 E-mail: investors@karstadtquelle.com Corporate Communications Phone: +49 (0) 2 01 7 27 - 2031 Fax: +49 (0) 2 01 7 27 - 9853 E-mail: konzernkommunikation@karstadtquelle.com PFLEIDERER AG: Earnings of All Business Centers Up -------------------------------------------------- SDAX-listed Pfleiderer AG (ISIN DE0006764749) improved its sales figures in the first nine months of 2004 by 7.7% to EUR727.7 million (2003: EUR675.6 million). The Business Center Engineered Wood reported sales revenues of EUR566.1 million, the Business Center Infrastructure Technology EUR161.5 million. Earnings before interest, tax, depreciation and amortization (EBITDA) improved as of September 30, 2004 by 26.0% to EUR66.8 million (2003: EUR53.0 million), Earnings before interest and tax (EBIT) rose to EUR39.9 million (2003: EUR22.8 million). Higher profit margins reflect the improvements to cost structures introduced in the previous year, as well as more acceptable price levels for engineered wood operations in Germany and Poland: the EDITDA margin rose to 9.2%, while the EBIT margin now stands at 5.5%. Earnings before taxes (EBT) came to EUR28.1 million as of September 30, 2004, nearly trebling (2003: EUR10.7 million). The pre-tax profit margin also improved, rising from 1.6 to 3.9%. Discontinued operations contributed a pre-tax result of EUR26.0 million (2003: -EUR7.1 million). Overall, the Pfleiderer Group reported pre-tax earnings of EUR54.1 million for the first nine months of 2004 (2003: EUR3.6 million). Earnings per share at the cut-off date were EUR0.69 (2003:-EUR0.18). The equity ratio rose from 17.9% (December 31, 2003) to 27.4% as of September 30, 2004. Issuer's information/explanatory remarks concerning this ad-hoc- announcement: Pfleiderer AG: Group Key Figures as of September 30, 2004: Group (EUR million) Sept. 30, 2004 Sept. 30, 2003 Sales 727.7 675.6 EBITDA 66.8 53.0 EBIT 39.9 22.8 EBT continued operations 28.1 10.7 EBT discontinued operations 26.0 -7.1 EBT total 54.1 3.6 EPS in EUR 0.69 -0.18 Employees (persons) [1] 4,890 5,952 Sept. 30, 2004 Sept. 30, 2003 Balance sheet total 816.2 779.3 Shareholders equity [2] 223.5 139.2 Equity ratio [2] 27.4% 17.9% - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - [1] Including employees of discontinued operations, excluding trainees [2] Including minority interests - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Pfleiderer AG: Group Key Figures for Q1, Q2 and Q3 2004 EUR Q1 - Q3 Q3 Q2 Q1 million 2004 2004 2004 2004 Sales 727.7 248.3 236.8 242.6 EBITDA 66.8 22.5 25.3 19.0 EBIT 39.9 12.9 16.6 10.4 EBT continued operations 28.1 9.4 13.1 5.6 EBT discontinued 26.0 0.0 25.9 0.1 operations EBT 54.1 9.4 39.0 5.7 EPS in EUR 0.69 -0.08 0.74 0.03 Pfleiderer AG in Brief Now focused on its Engineered Wood and Infrastructure Technology Business Segments, SDAX listed Pfleiderer AG (ISIN DE0006764749) is one of Europe's leading system suppliers of engineered woods, surface finished panels, rail sleeper technology and a vast range of poles and towers. The Company employs 5,000 people at 17 sites spread over six countries, and has sales in excess EUR920 million. A detailed Nine-Month Report for Pfleiderer AG as of September 30, 2004 is available at http://www.pfleiderer.com. * * * Fitch Ratings previously changed German diversified manufacturing group Pfleiderer AG's Outlook to Stable from Negative. At the same time, the agency affirmed the group's ratings at Senior Unsecured 'BB' and Short-term 'B'. The change in Outlook reflects Pfleiderer's successful disposals of non-core assets and new issuance of equity. The proceeds have improved the group's financial profile and should ensure prudent financing of planned capital expenditure projects in the engineered wood division. Nevertheless, execution risks remain in these plans. CONTACT: PFLEIDERER AG Neumarkt Corporate Communication Alexandra Klemme Phone: +49(0)9181/28-8044 Fax: +49(0)9181/28-606 E-mail: alexandra.klemme@pfleiderer.com SBS METALL: Creditors Have Until Next Week to File Claims --------------------------------------------------------- The district court of Chemnitz opened bankruptcy proceedings against SBS Metall- und Kunststoffverarbeitung GmbH on Oct. 8. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Nov. 12, 2004 to register their claims with court-appointed provisional administrator Bernward Widera. Creditors and other interested parties are encouraged to attend the meeting on Dec. 14, 2004, 9:15 a.m. at Saal 24, Gerichtsgebaude Furstenstrasse 21, Chemnitz at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. SBS is involved in metal and plastic processing. CONTACT: SBS METALL- UND KUNSTSTOFFVERARBEITUNG GMBH Hirschstein 1, 08359 Breitenbrunn Contact: Klaus Blechschmidt, Manager Bernward Widera, Insolvency Manager Buttenstrasse 4, 08058 Zwickau SIEGFRIED FABRITZ: Creditors to Meet Later this Month ----------------------------------------------------- The district court of Lubeck opened bankruptcy proceedings against Siegfried Fabritz Bedachungen GmbH on Oct. 13. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Nov. 15, 2004 to register their claims with court-appointed provisional administrator Sven Kruger. Creditors and other interested parties are encouraged to attend the meeting on Nov. 29, 2004, 9:15 a.m. at the district court of Lubeck, Am Burgfeld 7 , 23568 Lubeck, Saal: 256 at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: SIEGFRIED FABRITZ BEDACHUNGEN GMBH Westhoffstr. 11, 23554 Lubeck Sven Kruger, Insolvency Manager Roeckstr. 40, 23568 Lubeck UNTERNEHMENSBERATUNG POLLHEIDE: Declared Bankrupt ------------------------------------------------- The district court of Bielefeld opened bankruptcy proceedings against Unternehmensberatung Pollheide GmbH on Oct. 8. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Nov. 16, 2004 to register their claims with court-appointed provisional administrator Stefan Meyer. Creditors and other interested parties are encouraged to attend the meeting on Dec. 7, 2004, 10:00 a.m. at the district court of Bielefeld Gerichtstrasse 6, 33602 Bielefeld, 4. Ebene, Saal 4065 at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: UNTERNEHMENSBERATUNG POLLHEIDE GMBH Bischof-Hermann-Kunst-Platz 6, 32339 Espelkamp Contact: Stefan Meyer, Insolvency Manager Ostertorstr. 7, 32312 Lubbecke VENTURION AG: Insolvency Knocks at Broker's Door ------------------------------------------------ Insurance dealer and finance broker Venturion AG reportedly has filed for insolvency, Suddeutsche Zeitung says. The company had consulted outside opinions regarding its business situation, particularly on its liquidity. The company reportedly deemed it necessary to enter into insolvency proceedings. Venturion, which has yet to present its certified 2003 accounts, suffered losses this year. The company recently postponed plans for a stock market flotation, originally set at the end of the month, saying it intended to "make a fresh start." Venturion agents had sold company shares for EUR3.5 each as part of a pre- market capital increase and promised buyers high profits after the flotation. The company reportedly briefed employees Tuesday about the situation. Around 13,000 small shareholders hold a stake in Venturion. CONTACT: VENTURION AG Caldenhoferweg 192 59065 Hamm Phone: 01805-692423 Fax: 02381-913528 E-mail: ir@venturion-ag.de Web site: http://www.venturion-ag.de ============= H U N G A R Y ============= MALEV HUNGARIAN: Lone Offer Values Firm Way Below HUF3.5 Bln ------------------------------------------------------------ The sole bid for Malev Hungarian may still stand a chance despite reports it is unrealistic, daily Nepszabadsag said, according to ceebiz.com. Local Aviation Solution International Kft last week made an offer to buy the 99.95% share in the airline offered by the State Privatization and Holding Rt (APV). Rumors say the bid values the firm at only HUF150 million, a far cry from the HUF3.5 billion the agency is asking for the face value of its shares. Potential buyers are required to take over debts, and increase capital. Yet, Nepszabadsag theorized, the bid might still get a chance, given the weathered balance sheet of Malev. The airline has HUF36.2 billion in liabilities, of which HUF33 million is guaranteed by the state. Krisztina Nemeth, head of communications at Malev admitted Malev's own capital fell below two-thirds of its subscribed capital [currently HUF11.7 billion]. But she added the company expects the state to honor an agreement on refinancing entered last year. "[W]e expect a HUF3 billion subsidy from the state to improve our balance sheet," she said. Under the agreement, Malev is entitled to HUF10 billion worth of fresh capital in installments of HUF7 billion and HUF3 billion. It is still to receive the remaining HUF3 billion, and it is unclear when the rest will be available, according to Ms. Nemeth. The APV has to decide about the fate of ASI's bid before Nov. 20. ============= I R E L A N D ============= ELAN CORPORATION: Appoints Richard Collier Executive VP, Counsel ---------------------------------------------------------------- Elan Corporation, plc announced that Richard C. Collier would be joining the company as executive vice president and general counsel at the end of the month. Mr. Collier will have overall responsibility for Elan's legal organization and become an integral part of the company's leadership team. Mr. Collier is currently senior counsel, Life Sciences Interdisciplinary Group, at Morgan, Lewis & Bockius LLP, where he focuses on legal issues regarding pharmaceutical discovery, development, manufacture, marketing and sales. Prior to joining Morgan Lewis, he was senior vice president and general counsel at Pharmacia Corporation, after serving in the same position at Pharmacia & Upjohn. Prior to his experience at Pharmacia, Mr. Collier spent 11 years at Rhone-Poulenc Rorer, Inc. Previously, he was in private practice after having served with the U.S. Federal Trade Commission and U.S. Department of Justice. Elan President and CEO Kelly Martin said: "This announcement exemplifies our commitment to adding significant talent and building a superior organization. We look forward to Rick joining our team at this time, and we are confident that Elan will benefit from his experience and leadership." About Elan Elan is a neuroscience-based biotechnology company that is focused on discovering, developing, manufacturing, selling and marketing advanced therapies in neurodegenerative diseases, autoimmune diseases and severe pain. Elan's (NYSE: ELN) shares trade on the New York, London and Dublin Stock Exchanges. CONTACT: ELAN CORPORATION PLC Lincoln House, Lincoln Place Dublin, 2, Ireland Phone: +353-1-709-4000 Fax: +353-1-662-4949 Web site: http://www.elan.com Investor Relations Emer Reynolds Phone: 353-1-709-4000 800-252-3526 Media Relations Anita Kawatra Phone: 212-407-5740 800-252-3526 ELAN CORPORATION: US$850 Million Debt Offering Rated B3 ------------------------------------------------------- The proposed new senior unsecured debt offering of Elan plc, an indirect subsidiary of Elan Corporation plc, got a B3 rating from Moody's Investors Service. Elan's existing ratings remain under review for possible upgrade. The rating outlook is stable. Elan is also launching a tender offer for 90% of its EPIL III notes. The upgrade of its existing ratings depends upon the new debt offering and tender offer for 90% of the EPIL III notes. The rating reflects improvement in liquidity assuming the debt offering and EPIL III tender are successful. Moody's said the successful EPIL III refinancing removes concern of near-term default. It also recognizes the potentially significant opportunities provided by its product Antegrene. Despite these, Moody's remains concerned about Elan's high debt levels, the significant rate of cash use, and the extremely high reliance upon Antegren to eventually reverse the cash flow deficits. (a) Ratings assigned: Elan Finance plc B3 fixed-rate senior notes and floating rate senior notes totaling US$850 million due 2011 (guaranteed by Elan Corporation plc and subsidiaries) (b) Ratings remaining under review for possible upgrade: (i) Elan Corporation plc Caa2 senior implied, would likely move to B3 Caa2 issuer rating, would likely move to Caa1 (ii) Athena Neurosciences Finance, LLC Caa2 senior notes of US$650 million due 2008 (guaranteed by Elan Corporation plc), would likely move to B3 assuming subsidiary guarantees (iii) Elan Pharmaceutical Investments III Ltd. (EPIL III) Caa2 senior notes of $390 million due 2005 (guaranteed by Elan Corporation plc), would likely move to B3 Elan's ratings were in Caa category since November 2002. CONTACT: ELAN CORPORATION PLC Lincoln House, Lincoln Place Dublin, 2, Ireland Phone: +353-1-709-4000 Fax: +353-1-662-4949 Web site: http://www.elan.com Investor Relations Emer Reynolds Phone: 353-1-709-4000 800-252-3526 Media Relations Anita Kawatra Phone: 212-407-5740 800-252-3526 ========= I T A L Y ========= ALITALIA SPA: September Financial Position Improves by EUR89 Mln ---------------------------------------------------------------- To comply with instructions from Italy's Securities and Exchange Commission (CONSOB), this document contains information relating to the net financial position, as of September 30, 2004, as well as any debts falling due, for Alitalia and the Group. This report is published via press releases issued by the end of each month, referring to the previous month. It should be pointed out that, in line with CONSOB recommendations, and as already reported in the previous press release (published on August 30 relating to the Group's financial situation as of July 31, 2004), data regarding current portions of amounts falling due within twelve months are no longer classified under medium-/long-term indebtedness, but now form part of data relating to short-term financial debt. AUGUST 31, 2004 MANAGEMENT FIGURES GROUP ALITALIA (all figures in millions of euros) Cash in hand and short- (188) (224) term financial credits Short-term 234 310 financial indebtedness [*] [*] Net financial indebtedness 46 86 (short-term) Financial indebtedness 1,586 1,578 (medium/long-term) Net financial 1,632 1,664 position - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - [*] of which current installments of medium/long-term financial debts falling due within twelve months 231 230 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SEPTEMBER 30, 2004 MANAGEMENT FIGURES GROUP ALITALIA Cash in hand and short- (83) (110) term financial credits Short-term 233 312 financial indebtedness [*] [*] Net financial indebtedness 150 202 (short-term) Financial indebtedness 1,571 1,562 (medium/long-term) Net financial 1,721 1,764 position - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - [*] of which current installments of medium/long-term financial debts falling due within twelve months 230 229 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - The Group's net financial position on September 30, 2004, amounted to EUR1,721 million with an improvement of EUR89 million compared to the same situation on August 31, 2004, announced on September 30, 2004. The net financial position of the parent company Alitalia on September 30, 2004, amounted to EUR1,764 million with an improvement of EUR100 million compared to the same situation on August 31, 2004, in line with the Group's performance. The following observations on the most important changes that have taken place during the two periods in question refer to the situation for the Group. However, considering the preponderance of Alitalia within the whole Group, these observations are in fact representative of the parent company's performance alone; specific facts and figures referring only to Alitalia are glossed by notes. It should also be pointed out that the figures in the above table reflect the outcome of management analysis and include several estimated items, which, however, do not affect the overall significance of the information. Furthermore, it should be pointed out that on September 30, 2004, there were several leasing contracts at the Group level (referring almost entirely to fleet aircraft mostly held by the parent company amounting to EUR315 million) whose capital share, including lease closure value, amounted to EUR354 million (of which EUR65 million represent the current capital share falling due within twelve months of the reference date, with EUR60 million held by the parent company). On the other hand, the same figure on August 31, 2004, amounted to EUR357 million (of which EUR66 million falling due in the twelve months from the reference date); the corresponding figures for the parent company on August 31, 2004, amounted to EUR318 million and EUR61 million respectively. It should also be noted that existing debts to banks are almost entirely backed up by real guarantees (mortgages on aircraft) or by personal guarantees (mainly guarantees issued by banks for export credit). The relative financing contracts contain standard legal clauses relating to withdrawal. None of the contracts refer to specific requirements regarding assets or economic/financial aspects, in order to maintain the credit line. As already mentioned, it can be seen from the figures in the table above that the net financial position of the Group on September 30, 2004, showed an improvement of EUR89 million compared to August 31, 2004. With regard to the most significant changes that have taken place during the period, it should be noted that the above- mentioned improvement is mainly due to increased revenues, reflecting seasonal fluctuations in revenues and payments during the month in question. In this context, it should be pointed out that: (a) air ticket revenues (paid to the Company by travel agents the following month, as is the rule), were badly affected in September by the general reduction in domestic activity in August; (b) At the same time, and for the same reasons, September payments reflected not only the cash outlays related to the month in question, but also a figure arising from the previous month and relating to the fact that billing from the main suppliers usually slows down in August. Finally, during the period in question, there were repayments of medium/long-term financing (amounting to EUR15 million), but at the same time no further contracts were stipulated. Regarding debts of a financial, fiscal and welfare nature, there were no outstanding sums or payment irregularities on September 30, 2004, both for the parent company and for the other companies in the Group. Regarding debts of a commercial nature, except for normal payments concerning contractual deadlines, determined by the process of checking services and products provided and the established practice of concentrating payments on certain days of the month, there were no outstanding sums or payment irregularities on September 30, 2004, both for the parent company and for other Group companies, except for those relating to disputed situations. Regarding the latter, there were outstanding payments to be made to some airport management companies for disputed debts amounting to a total of EUR38 million on September 30, 2004, against which injunction decrees for EUR4.4 million have been issued. Except for the above, there are no other injunctions or executive actions undertaken by creditors notified as of September 30 2004, nor are there any threats by suppliers to suspend operations. October 29, 2004 CONTACT: ALITALIA S.p.A. Viale A. Marchetti 111 00148 Rome, Italy Phone: +39 06 6562 2151 Fax: +39 06 6562 4733 Web site: http://www.alitalia.it =================== K Y R G Y Z S T A N =================== KYRGYZKOMUR: Selling Asset at Public Auction Today -------------------------------------------------- The bidding organizer and insolvency manager of open joint stock company Kyrgyzkomur will sell its accounts receivable today, 10:00 p.m. at Bishkek, Chui Avenue 106, Room 102. Priced at KGS1,078,099, this receivable currently secures the company's debt to Kemin Regional Financial Department. To participate, bidders are required to deposit an amount equivalent to 5% of the starting price to the cashier of Kyrgyzkomur on or before November 5, 2004 at Bishkek, Chui Avenue 106, Room 102. For more information, call (0-312) 62-52- 42. ===================== N E T H E R L A N D S ===================== ROYAL SHELL: State Takes over Gasunie's Transportation Business --------------------------------------------------------------- The Minister of Economic Affairs Brinkhorst, in a letter to the Dutch Parliament, announced that the Dutch State, Shell Nederland B.V. and Esso Nederland B.V. have agreed in principle on a split of Gasunie, the Dutch gas company, resulting in a transfer of ownership in the transportation business. Under the envisaged arrangement, the Dutch State will assume full ownership of the transportation business, including all assets, operations and participations held by that part of the business. The merchant business will remain a joint venture between the Dutch State (50%), Shell (25%) and ExxonMobil (25%). Related changes to the venture agreements will be effected and the new, state-owned transport business would operate independently from production, trade and supply of natural gas. As specified in the heads of agreement, the Dutch State will upon implementation make a total net payment of EUR2.78 billion. It is expected that the transaction will be fully implemented by mid-2005. Michael O'Callaghan, CEO of Shell Energy Europe, welcomed the transaction: "The envisaged agreement is a further milestone in delivering on our strategy of active portfolio management." Rein Willems, President of Shell Nederland and Country Chairman of Shell in the Netherlands, added: "I am pleased that the parties involved have agreed on this transaction. I would like to re-emphasize that Shell is committed to the Dutch gas business, which is a cornerstone of our European gas strategy." CONTACT: ROYAL DUTCH/SHELL GROUP OF COMPANIES Carel van Bylandtlaan 30 2596 HR The Hague, The Netherlands Phone: +31 70 377 9111 Fax: +31 70 377 3115 Web site: http://www.shell.com VERSATEL TELECOM: Third-quarter Net Loss Down to EUR4 Million ------------------------------------------------------------- Third-quarter 2004 Financial Results (EUR millions) Q3 2004 Q3 2003 Growth Q3 2004 Q2 2004 Growth Revenue 150.0 122.9 22% 150.0 144.0 4% Gross Margin % 51.9% 53.8% N/m 51.9% 52.7% N/m EBITDA 30.2 20.5 47% 30.2 27.3 11% Net Loss (4.4) (11.9) N/m (4.4) (4.1) N/m Capex (32.1) (21.7) 48% (32.1) (25.3) 27% EBITDA - Capex (2.0) (1.3) N/m (2.0) 2.0 N/m Cash 150.8 150.5 0% 150.8 143.7 5% Financial Highlights (a) Third quarter 2004 revenues increased by 22% to EUR150 million compared with 3Q03 revenues of EUR123 million and by 4% compared with 2Q04 revenues of EUR144 million. On-net revenues were EUR110 million for 3Q04 compared with EUR89 million for 3Q03 and EUR109 million for 2Q04; (b) Gross Margin as a percentage of revenues in 3Q04 was 52%, compared with 54% in 3Q03 and 53% in 2Q04; (c) EBITDA was EUR30 million in 3Q04 compared with EUR20 million in 3Q03 and EUR27 million in 2Q04; (d) Versatel's net loss was EUR4 million for 3Q04 compared with a net loss of EUR12 million in 3Q03 and a net loss of EUR4 million in 2Q04; (e) Capital expenditures (Capex) in 3Q04 were EUR32 million compared with EUR22 million in the 3Q03 and EUR25 million in 2Q04; (f) Versatel had approximately EUR151 million in cash on its balance sheet at the end of 3Q04, compared with EUR150 million at the end of 3Q03 and EUR144 million at the end of 2Q04. Other Highlights: (a) On August 16, 2004, Versatel purchased Telco Executives' outstanding 10.5% minority interest in its German subsidiary Versatel Deutschland Holding GmbH (VDH). The purchase price was satisfied by the issue of 15 million new Versatel shares; (b) On September 1, 2004, Versatel completed the acquisition of BerliKomm (which was subsequently renamed Versatel Berlin GmbH) for EUR34.6 million. The purchase price was satisfied by the issue of approximately 24 million new Versatel shares; (c) On October 14, 2004, approximately 66.6 million of the warrants issued as part of Versatel's debt restructuring in 2002 were converted into approximately 13.9 million new Versatel shares, resulting in approximately EUR21 million of net proceeds for Versatel; (d) On September 17, 2004, Versatel launched an offering of EUR125 million in principal amount of Convertible Bonds due 2011, which closed on October 28, 2004; (e) During 3Q04 Versatel connected approximately 33,600 DSL and ISDN on-net copper lines including approximately 8,700 customers at its Internet subsidiary Zon, approximately 5,300 customers in Belgium and approximately 19,600 customers in Germany, excluding the consolidation of BerliKomm. Versatel Telecom International N.V. on Wednesday reported third quarter 2004 financial and operating results. For the quarter ended September 30, 2004 revenues were EUR150.0 million, up 22.1% compared with 3Q03 revenues of EUR122.9 million and up 4.1% compared with 2Q04 revenues of EUR144.0 million. This top- line growth is primarily due to a growth in corporate customer revenue, an increase in residential DSL customers and the consolidation of EUR4.0 million, being one month of revenue from the acquisition of BerliKomm. In total, on-net revenues for Versatel were EUR110.5 million for 3Q04 compared with EUR89.4 million in 3Q03 and EUR108.9 million in 2Q04. For the quarter ended September 30, 2004, gross margin as a percentage of total revenues was 51.9% compared with 53.8% in 3Q03 and 52.7% in 2Q04. During 3Q04, gross margin as a percentage of revenue declined slightly, primarily due to the churn of narrowband dial-in revenue. The continuing replacement of low Average Revenue Per User (ARPU), high gross margin percentage narrowband dial-in revenue with higher ARPU, lower gross margin percentage, but more profitable broadband revenue is expected and encouraged by Versatel, but it will continue to have an impact on gross margin percentage as has been highlighted in Versatel's previous forecasts. This churn of dial-in revenue in The Netherlands had an impact of approximately EUR1.2 million on both a revenue and EBITDA basis during 3Q04. Raj Raithatha, Chief Executive Officer, on Wednesday said: "We are pleased with the steady evolution of our business, which has experienced continued top line growth amid the traditionally slow holiday season of the third quarter. We have been able to compensate for the continued migration of narrowband customers to broadband services through the diversity of our target markets and revenue streams although we have deliberately held off our marketing initiatives in Holland during the third quarter to coincide with today's announcement of the rebranding of Zon to Versatel." Selling, general and administrative expenses (SG&A) for 3Q04 was EUR47.7 million, up from EUR45.6 million in 3Q03 and compared with EUR48.6 million in 2Q04. Marketing expenditures for 3Q04 were EUR2.4 million compared with EUR2.3 million and EUR3.6 million in 3Q03 and 2Q04, respectively. For the quarter ended September 30, 2004, Versatel's result before interest, tax, depreciation and amortization (EBITDA) was positive EUR30.2 million compared with positive EUR20.5 million in 3Q03 and positive EUR27.3 million in 2Q04. During the quarter, Versatel recognized EUR0.5 million of EBITDA as a result of the consolidation of BerliKomm. Mark Lazar, Chief Financial Officer, commented: "Although this is a historically weak quarter due to the holiday period and we have seen a significant churn in our high margin dial-in Internet revenue base, we have been able to continue our growth trend in EBITDA on both an annual and sequential basis. I think this speaks to the value of our diversified customer focus and validates the full service strategy in our markets. We expect to see a continuation of this EBITDA growth in the fourth quarter, even though we will embark upon a more intensive marketing effort in each of our markets than we did in this quarter." Versatel's net loss for the quarter ended September 30, 2004 was EUR4.4 million compared with a net loss of EUR11.9 million in 3Q03 and a net loss of EUR4.1 million in 2Q04. Versatel's capital expenditures (capex) for the third quarter of 2004 capex were EUR32.1 million compared with EUR21.7 million in 3Q03 and EUR25.3 million in 2Q04. As of September 30, 2004, Versatel had EUR150.8 million in cash on its balance sheet compared with EUR150.5 million at September 30, 2003 and EUR143.7 million at June 30, 2004. This cash balance does not reflect the impact of the issuance of the convertible bond offering or the exercise of the warrants, which both took place in October 2004 and resulted in approximately EUR142 million of net proceeds for Versatel. The company had a positive shareholders' equity position of EUR523.5 million as of September 30, 2004, continues to reflect the strength of its balance sheet. As of 3Q04, Versatel had a deferred tax liability of EUR123.2 million on its balance sheet in respect of the gain related to the completion of its 2002 financial restructuring, whereby any subsequent losses in The Netherlands are recognized and taken against this deferred tax liability. Given our significant cash position, we continue to believe that our organic business plan is fully funded without a need for third party financing and that we have significant over-funded cash resources to explore potential organic and acquisition growth opportunities in our core markets. Operational Highlights by Country: The Netherlands: Revenues in The Netherlands were EUR66.1 million in 3Q04 compared with revenues of EUR57.3 million in 3Q03 and EUR66.3 million in 2Q04. EBITDA was positive EUR17.8 million in 3Q04 compared with positive EUR15.0 million in 3Q03 and positive EUR16.9 million 2Q04. Capital expenditures for the third quarter 2004 were EUR13.3 million compared to EUR13.4 million in 3Q03 and EUR13.4 million in 2Q04. The slight decline in revenue for the quarter was a direct result of the continued churn of narrowband customers and the seasonally impacted holiday period in 3Q04. As stated earlier, the churn of narrowband customers in The Netherlands had an impact of approximately EUR1.2 million on revenue and EBITDA during the third quarter 2004. Excluding the effect of this churn, our on-net revenue base in The Netherlands continued to grow. This growth was primarily driven by the provisioning of corporate contracts that were signed earlier in 2004 and by the continued expansion of our DSL customer base. We also experienced acceleration in the growth of our on-net revenue base in the small and medium sized enterprise (SME) market. As mentioned, during the quarter we experienced growth in our residential DSL client base, which Versatel serves through its Zon subsidiary. During 3Q04 Zon added approximately 8,700 DSL customers for a total of over 153,000 ADSL customers at the end of the quarter. Although these additions were less than experienced in the previous quarters of 2004, this can largely be explained by the seasonality of 3Q04 and our decision to rebrand Zon into Versatel starting in 4Q04, which resulted in a corresponding lack of marketing efforts during the quarter. In the coming quarters, we expect to launch further marketing and sales efforts to continue to grow our business. Raj Raithatha commented: "We continue to build upon our leading alternative position in The Netherlands through a diverse revenue mix. During the quarter, we experienced continued growth in our established corporate and residential revenue streams, but we also experienced strong demand for our on-net products, including ISDN-30 voice services following the implementation of new sales initiatives targeting the SME market, which we see as a positive development in the further diversification of our business." Germany: Revenues in Germany were EUR68.6 million in 3Q04, up from EUR54.9 million in 3Q03 and EUR62.9 million in 2Q04. 3Q04 EBITDA in Germany was positive EUR10.7 million compared with positive EUR5.5 million in 3Q03 and positive EUR10.2 million in 2Q04. Capital expenditures for the third quarter 2004 were EUR17.2 million compared to EUR7.5 million in 3Q03 and EUR10.0 million in 2Q04. During the quarter, BerliKomm was consolidated as of September 1, 2004, which resulted in EUR4.0 million of new revenue and EUR0.5 million of new EBITDA for 3Q04. Revenue growth during the quarter was primarily due to the growth of our residential broadband service offering, as many of the Central Offices that were announced earlier in the year became operational and we were able to sell in new areas. During the third quarter 2004, we added approximately 19,600 DSL and ISDN on-net copper lines for a total of over 154,000 at the end of the quarter. Raj Raithatha commented: "I am pleased with the development of our German business. We believe we are well positioned to take advantage of the rapidly growing demand for DSL services in Germany. In the coming months, we are planning to launch targeted marketing campaigns in our regions targeting new customers in order to best take advantage of the Christmas buying season as well as launching an aggressive customer retention policy targeted at converting our legacy on-net ISDN voice customers to our broadband service offering. We also plan to develop our position in the Berlin market into new sales through DSL network upgrades and a new marketing campaign." Belgium: Belgian revenues increased to EUR15.3 million in 3Q04 compared with 3Q03 revenues of EUR10.7 million and 2Q04 revenues of EUR14.8 million. EBITDA in Belgium was positive EUR1.7 million in 3Q04 compared to breakeven in 3Q03 and positive EUR0.2 million in 2Q04. Capital expenditures for the third quarter 2004 were EUR1.6 million compared to EUR0.8 million in 3Q03 and EUR1.9 million in 2Q04. During the quarter, Versatel added approximately 5,300 DSL customers in Belgium for a total of over 31,700 at the end of the quarter. Raj Raithatha commented: "Although our competition has responded with budget ADSL offerings of their own, we believe in the strength of the value proposition we are offering customers in the Belgian market. Revenue and EBITDA growth continues to be driven by the increased number of DSL subscribers and we would like to accelerate this growth through the launch of new services to address untapped market demand. Therefore, in the fourth quarter of 2004 we expect EBITDA to decline compared to this quarter as we market new products and sign up additional customers." 2004 Financial Guidance Update: For 2004, Versatel would like to update its guidance regarding its revenue and EBITDA development as a result of the consolidation of BerliKomm as of September 1, 2004. The following statements are based on Versatel's current expectations. These statements are forward-looking and actual results may differ materially. The positive impact of the consolidation of BerliKomm on our 2004 revenue guidance is EUR15.0 million, which reflects 4 months of consolidation into our financials. Our EBITDA guidance has also been updated to reflect the consolidation of BerliKomm, but as we have decided to embark on a rebranding and marketing initiative in Berlin, we expect EBITDA for the rest of 2004 from BerliKomm to be roughly breakeven. However, excluding these additional marketing and rebranding costs that will be incurred in 4Q04, BerliKomm would generate at least EUR7.0 million of annualized EBITDA. Capital expenditures as a result of the integration and stock build up for our DSL roll out in Berlin associated with BerliKomm will be approximately EUR5.0 million in 4Q04. As we do not believe this will have a material impact on the overall capital expenditures for the group we have left our Free Cash Flow guidance for 2004 unchanged, but this could result in a variance in actual versus forecasted Free Cash Flow depending on the timing of certain investments in Berlin. We expect to see an increase in 4Q04 EBITDA for the group compared to 3Q04 EBITDA, but we have not adjusted our guidance range because we only do so in case of material changes in the performance of the business compared to initial guidance. Therefore, Versatel's current financial expectations for 2004 are: (EUR millions) 2004 Old 2004 New Revenue 570 -590 585 -595 EBITDA 110 -120 110 -120 Free Cash Flow (EBITDA less Capex) (20) - (10) (20) - (10) Versatel Telecom International N.V. (Euronext: VRSA). Versatel, based in Amsterdam, is a competitive communications network operator and a leading alternative to the former monopoly telecommunications carriers in its target market of The Netherlands, Belgium and Germany. Founded in October 1995, the Company holds full telecommunication licenses in The Netherlands, Belgium and Germany and has over 1 million customers and approximately 1,900 employees. Versatel operates a facilities-based local access broadband network that uses the latest network technologies to provide business customers with high bandwidth voice, data and Internet services. Versatel is a publicly traded company on Euronext Amsterdam under the symbol VRSA. News and information are available at http://www.versatel.com. Financial reports are available free of charge at: http://bankrupt.com/misc/Versatel_3Q2004.pdf CONTACT: VERSATEL N.V. AJ Sauer Corporate Finance & Investor Relations Manager Phone: +31-20-750-1231 E-mail: aj.sauer@versatel.nl Anoeska van Leeuwen Director Corporate Communications Phone: +31-20-750-1322 E-mail: anoeska.vanleeuwen@versatel.nl VERSATEL TELECOM: Dutch Unit to Trade as Versatel Beginning 2005 ---------------------------------------------------------------- Versatel Telecom International N.V. announces that as of January 1, 2005, its wholly owned Dutch ISP subsidiary Zon will continue its operations under the Versatel brand. This re-branding follows the company's group branding strategy to operate in all countries under the same trademark -- Versatel. The re-branding is the next step in creating a strong and transparent structure for Versatel's Dutch operation in order to take advantage of opportunities in both the business as well the residential market. Additionally, this process will make a one- stop shopping model possible for both existing as well as prospective customers. Raj Raithatha, CEO of Versatel Telecom International N.V., comments: "With a uniform brand strategy we believe to be in a better position to seize the sales opportunities in the Dutch market. By leveraging the knowledge and expertise within our business and consumer units, we are building a strong brand and a powerful company that is well on its way to reach a significant scope and scale in The Netherlands." Zon has been instrumental in offering innovative Internet products. By re-branding Zon to Versatel, the organization will be able to offer a full suite of telecom products to consumers, including telephony, mobile and broadband Internet services. There will be no changes for existing Zon customers, other than that they will receive their invoice from Versatel per January 1st onwards. They will keep their Zonnet e-mail addresses, will keep the same product benefits and customer service. About Versatel Telecom International N.V. Versatel (Euronext: VRSA), based in Amsterdam, is a competitive communications network operator and a leading alternative to the former monopoly telecommunications carriers in its target market of the Netherlands, Belgium and Germany. Founded in October 1995, the Company holds full telecommunication licenses in The Netherlands, Belgium and Germany and has over 1 million customers and approximately 1,900 employees. Versatel operates a facilities-based local access broadband network that uses the latest network technologies to provide business customers with high bandwidth voice, data and Internet services. Versatel is a publicly traded company on Euronext Amsterdam under the symbol VRSA. CONTACT: VERSATEL N.V. AJ Sauer Corporate Finance & Investor Relations Manager Phone: +31-20-750-1231 E-mail: aj.sauer@versatel.nl Anoeska van Leeuwen Director Corporate Communications Phone: +31-20-750-1322 E-mail: anoeska.vanleeuwen@versatel.nl =========== P O L A N D =========== AGORA SA: Increasing Stake in 'Multimedia Plus' ----------------------------------------------- Agora S.A. has entered into a conditional agreement to buy 52% of the share capital of 'Multimedia Plus' Sp. z o.o. based in Srem. Multimedia broadcasts 'Rock Radio Wielkopolska'. As a result of acquisition, Agora's stake in 'Multimedia' share capital now totals 76%. The shareholding entitles Agora to 76% voting rights at the General Meeting of Shareholders. Additional information: (a) The investment is of a long-term nature and was financed from Agora's equity; (b) Agora acquired 1,166 shares in the company's share capital of a total nominal value of PLN583,000 at the price totaling PLN800,000. The book value of acquired shares in the issuer's books is PLN808,000; (c) The condition of transfer of shares was fulfilled on 30 June 2004; (d) The vendors (two natural persons) were shareholders in 'Multimedia' where -- prior to the acquisition of the above- mentioned shares -- Agora held 24% of shares entitling to exercising 24% of voting rights at the company's General Meeting of Shareholders. * * * On August 10, 2004, TCR-Europe reported that the magazine, radio and outdoor advertising subsidiaries of Poland's leading media group, Agora S.A., have continued to absorb mounting losses. The company's remaining profitable business is its Gazet Wyborcza, Poland's largest newspaper. Agora reported year-on-year increase in consolidated revenues in first half of this year. For the second quarter, the company recorded a net profit of PLN21.1 million, a 62.3% increase over the previous year. =========== R U S S I A =========== AQUA-VITA: Appoints Y. Rodionov Insolvency Manager -------------------------------------------------- The Arbitration Court of Altay region has commenced bankruptcy supervision procedure on close joint stock company Aqua-Vita. The case is docketed as A03-11016/04-B. Mr. Y. Rodionov has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 656037, Russia, Altay region, Barnaul, Post User Box 21/53. A hearing will take place on March 21, 2005, 9:00 a.m. CONTACT: AQUA-VITA 659306, Russia, Altay region, Biysk, Smolniy p. 5 Mr. Y. Rodionov Temporary Insolvency Manager 656037, Russia, Altay region, Barnaul, Post User Box 21/53 KIMI-GEO-NEFT: Proofs of Claim Deadline Expires Next Month ---------------------------------------------------------- The Arbitration Court of Komi republic has commenced bankruptcy proceedings against Kimi-Geo-Neft after finding the limited liability company insolvent. The case is docketed as A29- 346/04-3B. Mr. V. Timashkov has been appointed insolvency manager. Creditors have until December 1, 2004 to submit their proofs of claim to 169600, Russia, Komi republic, Pechora, Pechorskiy Pr. 110. CONTACT: KIMI-GEO-NEFT 169600, Russia, Komi republic, Pechora, Zheleznodorozhnaya Str. 59 Mr. V. Timashkov Insolvency Manager 169600, Russia, Komi republic, Pechora, Pechorskiy Pr. 110 Phone/Fax: 8 (82142) 3-31-11 KURGAN-PRIBOR-INFORT: Kurgan Court Appoints Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Kurgan region has commenced bankruptcy proceedings against Kurgan-Pribor-Infort after finding the state-owned enterprise insolvent. The case is docketed as A34- 4364/04-s26. Mr. S. Muratov has been appointed insolvency manager. Creditors may submit their proofs of claim to 640000, Russia, Kurgan, Yastrzhemskogo Str. 41. CONTACT: KURGAN-PRIBOR-INFORT 640000, Russia, Kurgan, Yastrzhemskogo Str. 41 Mr. S. Muratov Insolvency Manager 640000, Russia, Kurgan, Yastrzhemskogo Str. 41 NALCHINSKIY TINNED: Ordered to Undergo Bankruptcy Supervision ------------------------------------------------------------- The Arbitration Court of Kabardino Balkariya republic has commenced bankruptcy supervision procedure on open joint stock company Nalchinskiy Tinned Food Factory. The case is docketed as A20-2727/04. Mr. E. Katyukha has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 360000, Russia, Kabardino Balkariya republic, Nalchik, Lermontova Str. 54, Room 203. CONTACT: NALCHINSKIY TINNED FOOD FACTORY Russia, Kabardino Balkariya republic, Nalchik, Studencheskaya Str. 48. Mr. E. Katyukha Temporary Insolvency Manager 360000, Russia, Kabardino Balkariya republic, Nalchik, Lermontova Str. 54, Room 203 NIZHNETAGILSKAYA: Gives Creditors Until December to File Claims --------------------------------------------------------------- The Arbitration Court of Sverdlovsk region has commenced bankruptcy proceedings against Nizhnetagilskaya (TIN 6648000266, OGRN 1026602091119) after finding the poultry farm insolvent. The case is docketed as A60-19713/2003-S3. Ms. L. Yakimidi has been appointed insolvency manager. Creditors have until December 1, 2004 to submit their proofs of claim to 620028, Russia, Yekaterinburg, Post User Box 308. CONTACT: NIZHNETAGILSKAYA 622936, Russia, Sverdlovsk region, Prigorodniy region, Pokrovskoye Ms. L. Yakimidi Insolvency Manager 620028, Russia, Yekaterinburg, Post User Box 308 Phone: (343) 373-43-86 NIZHNEVARTOVSK-NEFTE-KHIM-MONTAZH: Declared Insolvent ----------------------------------------------------- The Arbitration Court of Khanty-Mansiyskiy autonomous region has commenced bankruptcy proceedings against Nizhnevartovsk-Nefte- Khim-Montazh after finding the close joint stock company insolvent. The case is docketed as A75-214-B/04. Mr. M. Galimov has been appointed insolvency manager. Creditors have until December 1, 2004 to submit their proofs of claim to 628616, Russia, Khanty-Mansiyskiy autonomous region, Nizhnevartovsk-16, Post User Box 1266. CONTACT: NIZHNEVARTOVSK-NEFTE-KHIM-MONTAZH 628616, Russia, Tyumen region, Nizhnevartovsk, 16 Mr. M. Galimov Insolvency Manager 628616, Russia, Khanty-Mansiyskiy autonomous region, Nizhnevartovsk-16, Post User Box 1266 Phone/Fax: (8-3466) 24-97-94 PERELESHINSKIY SUGAR: Under Bankruptcy Supervision -------------------------------------------------- The Arbitration Court of Voronezh region has commenced bankruptcy supervision procedure on close joint stock company Pereleshinskiy Sugar Refinery. The case is docketed as A14- 8774/2004/62/16b. Mr. S. Evtushenko has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 394000, Russia, Voronezhm Mira Str. 6, Room 39. CONTACT: PERELESHINSKIY SUGAR REFINERY Russia, Voronezh region, Paninskiy region, Pereleshinskiy Mr. S. Evtushenko Temporary Insolvency Manager 394000, Russia, Voronezhm Mira Str. 6, Room 39 PROM-VENTILATION: Insolvency Manager to Temporarily Oversee Firm ---------------------------------------------------------------- The Arbitration Court of Moscow has commenced bankruptcy supervision procedure on close joint stock company Prom- Ventilation. The case is docketed as A40-35026/04-95-24b. Ms. Y. Mironova has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 117556, Russia, Moscow, Post User Box 39. A hearing will take place on February 10, 2005, 10:00 a.m. at Russia, Moscow, N. Basmannaya Str. 10 (hall 709). CONTACT: PROM-VENTILATION 105120, Russia, Moscow, Nastavnicheskiy Per. 11, Building 1 Ms. Y. Mironova Temporary Insolvency Manager 117556, Russia, Moscow, Post User Box 39 SIB-NEFTE-KOMPLEKT-MONTAZH: Bankruptcy Supervision Begins --------------------------------------------------------- The Arbitration Court of Khanty-Mansiyskiy autonomous region has commenced bankruptcy supervision procedure on open joint stock company Sib-Nefte-Komplekt-Montazh. The case is docketed as A75-287-B/04. Mr. Y. Dadyko has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 628400, Russia, Khanty-Mansiyskiy autonomous region, Surgut, East Prom. region, Proezd 1PR. A hearing will take place at 628012, Russia, Tyumen region, Khanty-Mansiyskiy autonomous region, Khanty-Mansiysk, Lenina Str. 54/1, Room 311 on December 20, 2004, 9:30 a.m. CONTACT: Mr. Y. Dadyko Temporary Insolvency Manager 628400, Russia, Khanty-Mansiyskiy autonomous region, Surgut, East Prom. region, Proezd 1PR WATER CHANNEL: Court Sets Hearing January Next Year --------------------------------------------------- The Arbitration Court of Altay region has commenced bankruptcy proceedings against Water Channel of Barnaul after finding the close joint stock company insolvent. The case is docketed as A03-15344/03-B. Mr. S. Pupkov has been appointed insolvency manager. Creditors have until December 1, 2004 to submit their proofs of claim to 656002, Russia, Altay region, Vorovskogo Str. 140, Post User Box 130. A hearing will take place on January 24, 2005. CONTACT: WATER CHANNEL OF BARNAUL 656016, Russia, Altay region, Barnaul, Vlasikhinskaya Str. 49/1 Mr. S. Pupkov Insolvency Manager 656002, Russia, Altay region, Vorovskogo Str. 140, Post User Box 130 YUKOS OIL: Seizure of Tomskneft-VNK Shares Stands ------------------------------------------------- The Federal Arbitration Court of Moscow on Wednesday upheld the seizure of Tomskneft-VNK's shares, Itar-tass reports. The shares were among those seized in July together with those of Yuganskneftegaz and Samaraneftegaz under the motion of the court bailiff, seeking to extract payment for tax debts owed by Yukos. At the time, Yukos owed the government RUB99.3 billion in taxes for 2000. It cleared the debt after paying US$3.5 billion, but faces additional claims of RUB119 billion for 2001 and RUB193 billion for 2002. Its total tax liability now stands to RUB412.2 billion. Yukos appealed the seizures, but failed to win favorable ruling. In August, the Arbitration Court lifted its arrest order on Yuganskneftegaz, but the victory was short-lived -- the same court reversed its decision weeks later. In September, the Arbitration Court also rejected its appeal on the seizure of Samaraneftegaz's shares. CONTACT: YUKOS OIL International Information Department Hugo Erikssen Phone: +7 095 540 6313 E-mail: inter@yukos.ru Press Service: Alexander Shadrin Phone: +7 095 785-08-55 E-mail: pr@yukos.ru Investor Relations Contact Alexander Gladyshev Phone: +7095 788 00 33 YUKOS OIL: Calls EGM to Tackle Liquidation of Company ----------------------------------------------------- The Board of Directors of Yukos Oil Company is calling an Extraordinary General Meeting of shareholders on December 20, 2004 with the agenda including these issues: (a) Approval of company's anti-crisis plan, (b) Liquidation of the company, and (c) Bankruptcy of the company. Also the Board has decided to convene an Extraordinary General Meeting of shareholders on January 13, 2005, the agenda of which includes the issue of early discontinuation of the powers of current Board of Directors members and election of a new Board. CONTACT: YUKOS OIL International Information Department Hugo Erikssen Phone: +7 095 540 6313 E-mail: inter@yukos.ru Press Service Alexander Shadrin Phone: +7 095 785-08-55 E-mail: pr@yukos.ru Investor Relations Contact Alexander Gladyshev Phone: +7095 788 00 33 E-mail: investors@yukos.ru YUKOS OIL: Court to Hear New Tax Debt Suit in Two Weeks ------------------------------------------------------- The Moscow Arbitration Court will review on November 16 the legality of an order by the Tax Ministry to collect RUB79 billion in tax debts from Yukos Oil. The bill includes RUB50.76 billion in back taxes and RUB28.7 billion in penalties imposed after tax checks for 2001. The Ministry ordered in September to collect RUB119 billion in taxes, penalties and fines, from Yukos, with the amount to be automatically deducted from the company's accounts. RUB40.6 billion is to be extracted as fines through the court. Earlier this month, the court okayed the claim, but reduced the amount to RUB39.1 billion. During the preliminary hearing Yukos asked for the replacement of the judge handling the case on doubts regarding objectivity and impartially. The same judge rejected an appeal by Yukos against a RUB99 billion tax demand for 2000. The court decided that the appeal about disqualification of the judge would be reviewed before the beginning of substantive hearings. During the same hearing, the court rejected an appeal on engaging eight companies alleged to have helped Yukos evade taxes in the capacity of third parties. But it accepted documents that Yukos believes might help prove the Tax Ministry's claims are unlawful. CONTACT: YUKOS OIL International Information Department Hugo Erikssen Phone: +7 095 540 6313 E-mail: inter@yukos.ru Press Service: Alexander Shadrin Phone: +7 095 785-08-55 E-mail: pr@yukos.ru Investor Relations Contact Alexander Gladyshev Phone: +7095 788 00 33 YUKOS OIL: Wants Judge Handling Tax Case Replaced ------------------------------------------------- Yukos Oil has demanded the replacement of the judge presiding over its tax debt cases, Interfax says. The oil giant made the demand Tuesday at a preliminary court hearing against a claim of the Tax Ministry Inspectorate for Major Taxpayers. The tax inspectorate is trying to recover from Yukos around RUB50.76 billion in tax arrears and RUB28.5 billion in penalties incurred in 2001. Yukos is questioning the objectivity and impartiality of the presiding judge, who chaired a judicial collegium that rejected a recent appeal of the oil company. The appeal was on a ruling that allowed the Tax Ministry to recover RUB99 billion in tax arrears for 2000. The Tax Ministry decided to recover around US$2.7 billion in tax arrears and penalties after a second review of Yukos tax payments for 2001. CONTACT: YUKOS OIL International Information Department Hugo Erikssen Phone: +7 095 540 6313 E-mail: inter@yukos.ru Press Service: Alexander Shadrin Phone: +7 095 785-08-55 E-mail: pr@yukos.ru Investor Relations Contact Alexander Gladyshev Phone: +7095 788 00 33 YUKOS OIL: Court Adjourns Case Against Khodorkovsky --------------------------------------------------- The Meshchansky Court adjourned Tuesday proceedings in the trial of former Yukos chief Mikhail Khodorkovsky, Reuters says. The hearings will resume on November 9. To date, the court has called around 80 witnesses to the stand. Mr. Khodorkovsky, who was arrested October 25, 2003, is facing charges of fraud and tax evasion. Various public figures and human rights groups coming from the country and abroad criticize his arrest, claiming the cases are politically motivated. The court have rejected several requests for bail. The court likewise granted state prosecutor Dmitry Shokhim's request to extended Mr. Khodorkovsky's custody term for another three months until February 14, 2005. Authorities charged Yukos with another US$10 billion in unpaid taxes Monday. The oil giant now has accumulated debts of more than US$17 billion. CONTACT: YUKOS OIL International Information Department Hugo Erikssen Phone: +7 095 540 6313 E-mail: inter@yukos.ru Press Service: Alexander Shadrin Phone: +7 095 785-08-55 E-mail: pr@yukos.ru Investor Relations Contact Alexander Gladyshev Phone: +7095 788 00 33 ========= S P A I N ========= CAJA GRANADA: Individual Rating Affirmed at 'B/C' ------------------------------------------------- Fitch Ratings affirmed Caja General de Ahorros de Granada's ratings at Long-term 'A-', Short-term 'F2', Individual 'B/C' and Support '3'. The rating Outlook is Stable. The Long-term, Short-term and Individual ratings reflect Caja Granada's strong local franchise and good asset quality and profitability. They also consider its regional concentration, the challenge of increasing revenues and improving cost efficiency in a competitive environment, and some appetite for equity investments. The caja's (savings bank) profitability is sound, supported by a wider-than-average net interest margin (NIM). This is primarily due to 81% of assets being devoted to lending, funded mainly by a large and relatively low cost deposit base. However, NIM has declined due to stiff competition and low interest rates. Commission income has been increasing, albeit from a low base of 0.4% of average total assets at end-June 2004. The deterioration of its cost-to-income ratio (excluding financial operations) to 66.8% at end-June 2004 from 63.4% at end-2002 is largely explained by increased personnel and infrastructure expenses, owing to expansion and rising depreciation costs. In the current complex operating environment, cost control, diversifying revenue generation and preserving asset quality are likely to remain important factors in supporting the caja's profitability levels. Caja Granada's asset quality has been improving in the last 18 months. At end-June 2004, impaired-to-total loans ratio fell to 1.3% and loan loss reserve coverage reached 190%. Liquidity has tightened and the caja has accessed alternative funding sources to fund its strong lending growth. The caja's equity investments represented 54% of end-June 2004 equity, which Fitch considers high, though these are mainly long-term investments. At end-June 2004, Caja Granada's total capital-to-weighted risk ratio was 9.6%, aided by the issuance of subordinated debt, and its Tier 1 ratio stood at 6.3%. Caja Granada was the 20th largest caja (31st largest Spanish banking group) by total assets at end-2003. It is based in the province of Granada, where 67% of its 458 branches were located at end-June 2004. Its main activities are mortgage lending to individuals and to small- and medium-sized companies, funded by customer deposits. The credit research on Caja Granada is available on Fitch's subscription Web site http://www.fitchresearch.comor call Fitch's Ratings Desk in London on +44 20 7417 6300. CONTACT: FITCH RATINGS Roger Turro, Barcelona Phone: +34 93 323 8406 Carmen Munoz Phone: +34 93 323 8408 Media Relations: Campbell McIlroy, London Phone: +44 20 7417 4327 ============= U K R A I N E ============= AGROSINTEZ-PROMINVEST: Proofs of Claim Due this Week ---------------------------------------------------- The Economic Court of Zaporizhya region commenced bankruptcy supervision procedure on LLC Agrosintez-Prominvest (code EDRPOU 31831363). The case is docketed as 21/206. Arbitral manager Mr. Oleksij Zavgorodnij (License Number AA 630113) has been appointed temporary insolvency manager. The company holds account number 26009320115421 at JSCB Ukrsocbank, Zaporizhya branch, MFO 313010. Creditors have until November 6, 2004 to submit their proofs of claim to: (a) AGROSINTEZ-PROMINVEST 70033, Ukraine, Zaporizhya region, Vilnyanskij district, Lubimivka, Dzerzhinskij Str. 80 b (b) Mr. Zavgorodnij Oleksi Temporary Insolvency Manager Ukraine, Zaporizhya region, Centralnij Boulevard, 17/16 Phone: 8 (0612) 49-08-51 (c) ECONOMIC COURT OF ZAPORIZHYA REGION 69001, Ukraine, Zaporizhya region, Shaumyana Str. 4 BIRD TULCHINSKIJ: Proofs of Claim Deadline Nears ------------------------------------------------ The Economic Court of Vinnitsya region has commenced bankruptcy supervision procedure on Agricultural LLC Bird Combine Tulchinskij (code EDRPOU 05413994). The case is docketed as 10/139-04. Arbitral manager Mr. Igor Golubij (License Number AA 783013) has been appointed temporary insolvency manager. The company holds account number 260018000006 at CB Praveksbank, Vinnitsya branch, MFO 302742. Creditors have until November 6, 2004 to submit their proofs of claim to: (a) BIRD COMBINE TULCHINSKIJ 23652, Ukraine, Vinnitsya region, Tulchinskij district, Kirnasivka (b) Mr. Igor Golubij Temporary Insolvency Manager Ukraine, Kyiv region, O. Teliga Str. 25-B/24 Phone: (044) 211-45-02 (c) ECONOMIC COURT OF VINNITSYA REGION 21036, Ukraine, Vinnitsya region, Hmelnitske Shose, 7 EURO-METAL: Under Bankruptcy Supervision ---------------------------------------- The Economic Court of Rivne region has commenced bankruptcy supervision procedure on LLC Euro-Metal-System-Ukraine. The case is docketed as 8/36. Arbitral manager Mrs. Tamara Bokij (License Number AA 250371) has been appointed temporary insolvency manager. CONTACT: EURO-METAL-SYSTEM-UKRAINE 35331, Ukraine, Rivne region, Rivne district, Gorodok, Shtejngel Str. 3a ECONOMIC COURT OF RIVNE REGION 33001, Ukraine, Rivne region, Yavornitski Str. 59 FOBOS UNITED: Kyiv Court Appoints Liquidator -------------------------------------------- The Economic Court of Kyiv region has commenced bankruptcy proceedings against Fobos United Development (code EDRPOU 24253361) after finding the close joint stock company insolvent. The case is docketed as 43/135. Arbitral manager Mr. I. Mihno (License Number AA 668303) has been appointed liquidator/insolvency manager. The company holds account number 260063010111/980 at CJSC Prime- Bank, MFO 30066 and account number 26004300100716/980/810/840/978 at JSCB South-European Bank, Kyiv branch, MFO 322658. CONTACT: FOBOS UNITED DEVELOPMENT 01010, Ukraine, Kyiv region, Moskovska Str. 7/47 ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard, 44-B KERCH' PROLIV: Insolvency Manager to Temporarily Oversee Firm ------------------------------------------------------------- The Economic Court of AR Krym region commenced bankruptcy proceedings against Kerch' Fish Tin Plant Proliv (code EDRPOU 05773155) on September 16, 2004 after finding the open joint stock company insolvent. The case is docketed as 2-6/11851-1- 2004. Arbitral manager Mr. Sergij Yushkevich (License Number AA 783063) has been appointed liquidator/insolvency manager. CONTACT: KERCH' FISH TIN PLANT PROLIV Ukraine, AR Krym region, Kerch, Kirov Str. 41 Mr. Sergij Yushkevich Liquidator/Insolvency Manager Ukraine, AR Krym region, Simferopol, Zhukov Str. 4/b 1844 THE ECONOMIC COURT OF AR KRYM REGION 95000, Ukraine, AR Krym region, Simferopol, Karl Marks Str. 18 KONUS: Harkiv Court Launches Bankruptcy Proceedings --------------------------------------------------- The Economic Court of Harkiv region commenced bankruptcy proceedings against Scientific-Technical Company Konus (code EDRPOU 30291614) on September 9, 2004 after finding the limited liability company insolvent. The case is docketed as B-25/70- 04. Mr. G. Babas (License Number AA 717975) has been appointed liquidator/insolvency manager. CONTACT: Mr. G. Babas Liquidator/Insolvency Manager 61157, Ukraine, Harkiv region, Selyanska Str. 76 ECONOMIC COURT OF HARKIV REGION 61022, Ukraine, Harkiv region, Svobodi Square, 5, Derzhprom, 8th entrance LOZOVA' AUTO 16347: Declared Insolvent -------------------------------------- The Economic Court of Harkiv region commenced bankruptcy proceedings against LOZOVA' AUTO TRANSPORT ENTERPRISE 16347 (code EDRPOU 03115198) on September 21, 2004 after finding the open joint stock company insolvent. The case is docketed as B- 48/63-04. Arbitral manager Mr. D. Zadruzhnij (License Number AA 249706) has been appointed liquidator/insolvency manager. The company holds account number 26002301770044 at Prominvestbank, Lozova branch, MFO 351522 CONTACT: LOZOVA' AUTO TRANSPORT ENTERPRISE 16347 64600, Ukraine, Harkiv region, Lozova, Sevastopolskij lane, 26 Mr. D. Zadruzhnij Liquidator/Insolvency Manager 61157, Ukraine, Harkiv region, Pushkinska Str. 5/408 ECONOMIC COURT OF HARKIV REGION 61022, Ukraine, Harkiv region, Svobodi Square, 5, Derzhprom, 8th entrance PETRIKIVSKIJ ROZPIS: Under Bankruptcy Supervision ------------------------------------------------- The Economic Court of Dnipropetrovsk region has commenced bankruptcy supervision procedure on Petrikivskij Rozpis (code EDRPOU 02968349). The case is docketed as B 15/98/04. Mrs. N. Chesnova (License Number AA 047981) has been appointed temporary insolvency manager. The company holds account number 26003280005001 at JSPPB Aval, Dniprodzerzhinsk branch, MFO 305653. CONTACT: PETRIKIVSKIJ ROZPIS 51800, Ukraine, Dnipropetrovsk region, Petrikivka, Levanevskij Str. 5 Mrs. N. Chesnova Temporary Insolvency Manager Ukraine, Dnipropetrovsk region, Kirov Avenue, 28a/201 Phone: (0562) 42-80-95 ECONOMIC COURT OF DNIPROPETROVSK REGION 49600, Ukraine, Dnipropetrovsk region, Kujbishev Str. 1a PLEMZAVOD UKRAINA: Bankruptcy Supervision Begins ------------------------------------------------ The Economic Court of Dnipropetrovsk region has commenced bankruptcy supervision procedure on LLC Plemzavod Ukraina (code EDRPOU 30508207). The case is docketed as B 24/103/04. Mr. V. Gulyayev (License Number AA 719887) has been appointed temporary insolvency manager. The company holds account number 26000106877022 at CB Privatbank, Dnipropetrovsk branch, MFO 305299. CONTACT: PLEMZAVOD UKRAINA 51281, Ukraine, Dnipropetrovsk region, Novomoskovskij district, Znamenivka, Zhukov Str. 1 Mr. V. Gulyayev Temporary Insolvency Manager Ukraine, Dnipropetrovsk region, Dniprodzerzhinsk, Skalika Str. 15/49 ECONOMIC COURT OF DNIPROPETROVSK REGION 49600, Ukraine, Dnipropetrovsk region, Kujbishev Str. 1a STAN: Succumbs to Insolvency ---------------------------- The Economic Court of Kyiv region has commenced bankruptcy proceedings against Stan (code EDRPOU 30305045) after finding the limited liability company insolvent. The case is docketed as 15/251-b. Arbitral manager Mr. V. Krikun (License Number AA 669678) has been appointed liquidator/insolvency manager. The company holds account number 26002303155001/980 at JSCB TAS- Komertsbank, MFO 300164. CONTACT: STAN 01021, Ukraine, Kyiv region, Institutska Str. 29-a ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard, 44-B =========================== U N I T E D K I N G D O M =========================== AA ELEVEN: Owners Agree to Wind up Business ------------------------------------------- Name of companies: AA Eleven Ltd. AA Six Ltd. AA Ten Ltd. Autoslave Ltd. BTR Insurance Services Ltd. Capecraft Ltd. Crompton Parkinson Motors (Doncaster) Ltd. Hawker Aircraft Ltd. Henry Watson & Sons (Cylinders) Ltd. Sorbo Forty-Five ltd. At the extraordinary general meeting of the members of these companies on October 22, 2004 held at Invensys House, Carlisle Place, London SW1P 1BX, the special resolutions to wind up the company were passed. Robin Arthur Ellis of 2 The Elms, Church Road, Claygate, Surrey KT10 0JT has been appointed liquidator for the purposes of such windings-up. ADVANCE WINDOWS: In Administrative Receivership ----------------------------------------------- Nigel Howard and Stella Mary Howard called in Barry P. Knights (Office Holder No 7503) administrative receiver for Advance Windows And Conservatories Limited (Reg No 04043704, Trading Name: Life Cover Direct.Co.UK Limited). The application was filed October 28, 2004. The company deals insurance/reinsurance policies. CONTACT: KNIGHTS & COMPANY Milford House, 43-55 Milford Street, Salisbury, Wiltshire SP1 2BP BAE SYSTEMS: Denies Being Investigated by Serious Fraud Office -------------------------------------------------------------- BAE Systems noted the announcement made by the Serious Fraud Office. Subsequent commentary has suggested that BAE Systems is itself currently the target of the investigation. BAE Systems believes that this is not correct and there is a possibility that BAE Systems may itself have been the victim of a fraud. The SFO has confirmed that none of the eight locations searched by it are BAE Systems' premises. Issued by BAE Systems plc London CONTACT: BAE SYSTEMS PLC Warwick House PO Box 87 Farnborough Aerospace Center Farnborough Hampshire GU14 6YU Phone: +44-1252 373232 Fax: +44-1252 383000 Web site: http://www.baesystems.com BARCLAYS AEROSPACE: Calls in Liquidators from Deloitte & Touche --------------------------------------------------------------- Name of companies: Barclays Aerospace Investment Management Limited IMD Securities Limited IMRY Properties Developments Limited West central estate & property co. Limited West Wickham Properties Limited At the general meetings of these companies, the special, ordinary and extraordinary resolutions to wind up the companies were passed. J. R. D. Smith and N. J. Dargan of Deloitte & Touche, Athene Place, PO Box 810, 66 Shoe Lane, London EC4A 3WA have been appointed joint liquidators of the companies. CONTACT: DELOITTE AND TOUCHE LLP Athene Place, 66 Shoe Lane, London EC4A 3WA Phone: 00 44 (0) 207 936 3000 Fax: 00 44 (0) 207 779 4001 Web site: http://www.deloitte.com BLUE TOP: Former Director Disqualified for Eight Years ------------------------------------------------------ The director of three IT businesses that failed with a combined total deficiency estimated at around GBP716,000 has given an Undertaking not to hold directorships or take any part in company management for eight years. The Undertaking by Pauline Wheeler-Reid, 51, of Church Street, Theale, Reading, Berkshire was given in respect of her conduct as a director of Blue Top Training Limited, Reidonly Limited and Blue Top Communications Limited. All operated from premises at Church Street, Theale, Reading, Berkshire. Acceptance of the Undertaking on October 8, 2004 prevents Pauline Wheeler-Reid from being a director of a company or, in any way, whether directly or indirectly, being concerned or taking part in the promotion, formation or management of a company for eight years. Blue Top Training Limited (Training) & Blue Top Communications Limited (Communications) were placed into voluntary liquidation on October 22, 2002 with an estimated GBP345,000 owed to creditors by Training and GBP164,000 by Communications. Reidonly Limited was placed into voluntary liquidation on November 19, 1999 with an estimated GBP207,000 owed to creditors. The Insolvency Service, on behalf of the Secretary of State for Trade & Industry, has responsibility (under Section 6 of the Company Directors Disqualification Act 1986) for the investigation of the conduct of directors of failed companies and for the disqualification of those who are considered to be unfit to be involved in the management of companies in the future. Matters of unfit conduct, not disputed by Pauline Wheeler-Reid were that she: (a) Reidonly (i) failed to make payments to Her Majestys Customs & Excise. At time of liquidation the total outstanding was GBP33,702; (ii) failed to take Pay As You Earn (PAYE) or National Insurance Contributions (NIC) from employees and failed to make any PAYE or NIC payments; (iii) failed to maintain, preserve and/or hand-over necessary wage records to either the Liquidator or the Inland Revenue; and (iv) continued trading to the detriment of the creditors left outstanding at the time of liquidation in particular the Inland Revenue and HMCE. (b) Communications (i) continued trading to the detriment of creditors left outstanding at the time of liquidation in particular the Inland Revenue; (ii) failed to take PAYE and NIC contributions from employees or make any PAYE or NIC payments to the Inland Revenue; and (iii) failed to inform creditors that the company had stopped trading and continued to accept goods or services supplied to the business. (c) Training (i) failed to maintain, preserve and/or hand-over sufficient wage records to calculate tax due for the financial years 2001/2002 and 2002/2003; (ii) transferred GBP56,432 from the company's bank account to herself and her daughter to the detriment of creditors between January 2001 and June 2002; (iii) continued trading when the company couldn't meet its liabilities, to the detriment of creditors, in particular the Crown; and (iv) caused Training to make loans to Communications, a company of which she was also the sole and managing director, at a time when Communications was making losses and not paying its debts as they fell due without taking any security or otherwise ensuring that the loans to Communications would be repaid. CONTACT: THE INSOLVENCY SERVICE 21 Bloomsbury Street London, WC1B 3QW Web site: http://www.insolvency.gov.uk Disqualification Unit Phone: 020 7291 6807 020 7291 6832 (Vetting) E-mail: Disqualification.Unit@insolvency.gsi.gov.uk Criminal Allegations Team Phone: 020 7291 6841 E-mail: criminal.allegations@insolvency.gsi.gov.uk CHESAPEAKE UK: Calls in Liquidator from Numerica ------------------------------------------------ At the extraordinary general meeting of the Chesapeake UK Acquisitions II Plc on October 22, 2004 held at 1021 East Cary Street, Richmond, Virginia, USA, the special, ordinary and extraordinary resolutions to wind up the company were passed. Colin Ian Vickers of Licensed Insolvency Practitioner, of Numerica, 4th Floor, Southfield House, 11 Liverpool Gardens, Worthing, West Sussex has been appointed liquidator for the purpose of the voluntary winding-up. CONTACT: NUMERICA 4th Floor, Southfield House, 11 Liverpool Gardens, Worthing, West Sussex Phone: 01903 222500 Fax: 01903 207009 Web site: http://www.numerica.biz CHESHIRE CLOTHING: Davenham Trade Appoints Receiver --------------------------------------------------- Davenham Trade Finance Limited called in David John Whitehouse and Adrian John Wolstenholme (Office Holder Nos 8699, 8995) joint administrative receivers for Cheshire Clothing Company Limited (Reg No 4382267, Trade Classification: 08 Textiles and Clothing Manufacturer). The application was filed October 28, 2004. CONTACT: KROLL LIMITED 1 Oxford Court, Bishopsgate, Manchester M2 3WR EBLAW LIMITED: Hires KPMG as Liquidator --------------------------------------- Name of companies: Eblaw Limited Caflaw Limited Rechargeable Products UK Limited At the extraordinary general meetings of these companies on October 20, 2004 held at 1 Blagdon Road, New Malden, Surrey KT3 4TB, the special and ordinary resolutions to wind up the companies were passed. Stephen Treharne and Jeremy Simon Spratt of KPMG LLP, 8 Salisbury Square, London EC4Y 8BB have been appointed joint liquidators for the purpose of such windings-up. CONTACT: KPMG LLP PO Box 695, 8 Salisbury Square, London EC4Y 8BB Phone: (020) 7311 1000 Fax: (020) 7311 3311 Web site: http://www.kpmg.co.uk END OF LIFE: Directors Receive Eight-year Ban --------------------------------------------- Two directors of a Liverpool scrap metal business that failed with debts of more than GBP288,000 have both been disqualified from acting as company directors for eight years. Brian Till of Fairhurst Drive, Parbold, Wigan, and Anthony Close of Strawberry Fields, Chorley, were both directors of End of Life Vehicle Services Limited, which carried on business from premises at Unit 3, Simonswood Industrial Estate, Stopgate Lane, Kirkby, Merseyside. The company was placed into voluntary liquidation on July 15, 2002 with estimated debts of GBP288,560 owed to its creditors. The Disqualification Order, made on October 27, 2004 in the Manchester County Court, prevents Brian Till and Anthony Close from being directors of a company or in any way, whether directly or indirectly, being concerned in or taking part in the promotion, formation or management of a company for the above period. In his judgment, District Judge Gosnall said that Mr. Till and Mr. Close's conduct as directors "showed a callous disregard for the rights of members of the public" and "showed a lack of commercial probity if not dishonesty". The matters of unfit conduct, found by the court, were that both Brian Till and Anthony Close: (a) Caused or allowed End of Life to trade when they knew or should have known that the company was insolvent and that trading thereafter was at the risk and ultimate expense of creditors; and (b) Caused or allowed the company to trade to the detriment of the crown in that no payments were made in respect of the PAYE/NIC throughout End of Life's trading. The Insolvency Service, on behalf of the Secretary of State for Trade & Industry, has responsibility (under Section (6) of the Company Directors Disqualification Act 1986) for the investigation of the conduct of directors of failed companies and for the disqualification of those who are considered to be unfit to be involved in the management of companies in the future. CONTACT: THE INSOLVENCY SERVICE 21 Bloomsbury Street London, WC1B 3QW Web site: http://www.insolvency.gov.uk Disqualification Unit Phone: 020 7291 6807 020 7291 6832 (Vetting) E-mail: Disqualification.Unit@insolvency.gsi.gov.uk Criminal Allegations Team Phone: 020 7291 6841 E-mail: criminal.allegations@insolvency.gsi.gov.uk ENERGIS PLC: Requests Anti-trust Probe Against Eircom ----------------------------------------------------- Energis plc, Ireland's leading independent telecoms company called on Minister Dempsey to address Eircom's cynical manipulation of the market and the regulator. Reflecting on the lack of progress to date in generating competition and competitiveness in the telecoms market, Conal Henry, MD of Energis Ireland said: "This minister must now judge Eircom by its actions and not its words. We're constantly being told what a great asset Eircom is for the Irish economy, its actions would suggest otherwise." Eircom is: (a) Fleecing businesses and consumers by increasing compulsory line rental charges by 25% in twelve months (b) Driving competition out of the market by charging TEN times more than BT for interconnect charges for competitors (c) Throttling regional expansion by taking two years to implement ComReg's directive on PPC's and then offering reduced service standards to competitors (d) Smothering Ireland's international competitiveness by making the Celtic Tiger the SECOND WORST country in the E.U. for broadband availability. Investment in a Regional MAN infrastructure shows that this government is committed to a competitive telecoms market. Now is the time to take on the biggest barrier to government policy -- Eircom. Henry continues: "We call on the minister and ComReg to take immediate action to reduce Eircom's wholesale line rental and interconnect charges and regulate the service standards it provides. "Most importantly the Minister must now reject Eircom's bona fides and the assumption that it supports the policy of this government - it does not." * * * Energis is a technology-driven communications company. Its aim is to help the largest and most successful organizations and public institutions in the U.K. and Ireland achieve their business goals using technology. Its range of solutions include data, voice, call centre and Internet and hosting services. Major customers include the BBC, Boots, Centrica, Royal & SunAlliance, Tesco, Wanadoo and the U.K. Government. CONTACT: ENERGIS PLC Media Centre Direct Dial: +44 (0)118 919 3499 Switchboard: +44 (0) 20 7206 5555 Web site: http://www.energis.com FREDORIS LIMITED: Appoints Liquidator from Numerica --------------------------------------------------- At the extraordinary general meeting of the Fredoris Limited (formerly F R Jones Limited) on October 22, 2004 held at 1 The Avenue, Eastbourne, East Sussex BN21 3YA, the special, ordinary and extraordinary resolutions to wind up the company were passed. Colin Ian Vickers of Numerica, Southfield House, 11 Liverpool Gardens, Worthing BN11 1RY has been appointed liquidator for the purpose of the voluntary winding-up. CONTACT: NUMERICA 4th Floor, Southfield House, 11 Liverpool Gardens, Worthing, West Sussex Phone: 01903 222500 Fax: 01903 207009 Web site: http://www.numerica.biz HARROGATE MANAGEMENT: Names Kroll Limited Administrator ------------------------------------------------------- Stuart Charles Edward Mackellar and Charles Peter Holder (IP Nos 6883 and 9093) have been appointed administrators for Harrogate Management Centre Limited. The appointment was made October 26, 2004. The company offers management services. CONTACT: KROLL LIMITED 5th Floor, Airedale House, 77 Albion Street, Leeds LS1 5AP HSBC HOLDINGS: Brings in Liquidator from Deloitte & Touche ---------------------------------------------------------- At the general meetings of the HSBC Holdings U.K. Limited, the special and ordinary resolutions to wind up the company were passed. J. R. D. Smith and N. J. Dargan of Deloitte & Touche, Athene Place, 66 Shoe Lane, London EC4A 3WA have been appointed liquidators of the company. CONTACT: DELOITTE AND TOUCHE LLP Athene Place, 66 Shoe Lane, London EC4A 3WA Phone: 00 44 (0) 207 936 3000 Fax: 00 44 (0) 207 779 4001 Web site: http://www.deloitte.com HUMBERSTON PARK: Creditors' Meeting Set Next Week ------------------------------------------------- The creditors of Humberston Park Golf Club Limited will meet on November 12, 2004 commencing at 11:00 a.m. It will be held at Alexandra Dock Business Centre, Fisherman's Wharf, Grimsby, North East Lincolnshire DN31 1UL. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to CRG Insolvency and Financial Recovery, Alexandra Dock Business Centre, Fisherman's Wharf, Grimsby, North East Lincolnshire DN31 1UL. CONTACT: CRG INSOLVENCY AND FINANCIAL RECOVERY Alexandra Dock Business Centre, Fisherman's Wharf, Grimsby, North East Lincolnshire DN31 1UL HYMET SERVICES: Insolvency Service Bans Two Directors ----------------------------------------------------- Two directors of a consultancy business for the detection of underground cables and pipe work that failed with total debts estimated at around GBP520,000, have given Undertakings not to hold directorships or take any part in company management for five years. The Undertakings by Paul Salisbury, 37, of Fambridge Road, Dagenham, Essex, and David John Brown, 38, of Willow Street, Romford, Essex, were given in respect of their conduct as directors of Hymet Services Limited (Hymet), Detectaplant Planning and Design Limited (Planning and Design), Detectaplant Surveying Limited (Surveying) and Detectaplant Curo Limited (Curo), that carried out business from premises at Suite 11, First Floor, South Park Business Centre, 310 Green Lane, Ilford, Essex. Acceptance of the Undertakings on October 26, 2004 in respect of Mr. Salisbury and October 15, 2004 in respect of Mr. Brown prevents them from being directors of a company, or in any way being concerned or taking part in the promotion, formation or management of a company for the five years. Hymet was placed into liquidation on August 8, 2002 with estimated debts of GBP359,000 owed to creditors. Planning and Design, Surveying and Curo were placed into liquidation on July 16, 2003 with estimated debts of GBP65,000, GBP53,240 and GBP43,000 owed to creditors respectively. The Insolvency Service, on behalf of the Secretary of State for Trade & Industry, has responsibility (under Section (6) of the Company Directors Disqualification Act 1986) for the investigation of the conduct of directors of failed companies and for the disqualification of those who are considered to be unfit to be involved in the management of companies in the future. Matters of unfit conduct, not disputed either by Mr. Salisbury and Mr. Brown, were that: (a) they caused Hymet Services Limited to fail to account properly to Crown Departments in that they failed to make any payments in respect of Corporation Tax, PAYE and NIC; the result was a deficit to the Crown of GBP357,216; (b) they caused Detecta Planing and Design Limited to fail to account properly to Crown Departments in that they failed to make any payments in respect of VAT, PAYE and NIC; the result was a deficit to the Crown of GBP54,823; (c) they caused Detecta Surveying Limited to fail to account properly to Crown authorities in that they failed to make any payments in respect of VAT, PAYE and NIC; the result was a deficit to the Crown of GBP53,063; and (d) they caused Detectaplant Curo Limited to fail to account properly to Crown authorities in that they failed to make any payments in respect of VAT, PAYE and NIC; the result was a deficit to the Crown of GBP36,242. CONTACT: THE INSOLVENCY SERVICE 21 Bloomsbury Street London, WC1B 3QW Web site: http://www.insolvency.gov.uk Disqualification Unit Phone: 020 7291 6807 020 7291 6832 (Vetting) E-mail: Disqualification.Unit@insolvency.gsi.gov.uk Criminal Allegations Team Phone: 020 7291 6841 E-mail: criminal.allegations@insolvency.gsi.gov.uk INDUSTRIAL AUTOMATED: Members Opt to Liquidate Company ------------------------------------------------------ Name of companies: Industrial Automated Systems Ltd. West Gate Industrial Ltd. At the extraordinary general meeting of the members of these companies on October 22, 2004 held at Invensys House, Carlisle Place, London SW1P 1BX, the special resolutions to wind up the companies were passed. Robin Arthur Ellis of 2 The Elms, Church Road, Claygate, Surrey KT10 0JT has been appointed liquidator for the purpose of such windings-up. KEYLINK WOLVERHAMPTON: Director Banned from Holding Exec Post ------------------------------------------------------------- The director of a Recruitment Agency business that failed with total debts estimated at around GBP213,000 have given an Undertaking not to hold a directorship or take any part in company management for seven years. The Undertaking by Gavin Lloyd Broome, 37, of Bracken Way, Rugeley, Staffordshire, was given in respect of his conduct as a director of Keylink Wolverhampton Limited, which carried out business from premises at Office 119, Sunbeam Studios, Wolverhampton, West Midlands. Acceptance of the Undertaking on October 20, 2004 prevents Gavin Lloyd Broome from being a director of a company or, in any way, whether directly or indirectly, being concerned or taking part in the promotion, formation or management of a company for the above period. Keylink Wolverhampton Limited was placed into liquidation on September 25, 2002 with estimated debts of GBP213,000 owed to creditors. The Insolvency Service, on behalf of the Secretary of State for Trade & Industry, has responsibility (under Section (6) of the Company Directors Disqualification Act 1986) for the investigation of the conduct of directors of failed companies and for the disqualification of those who are considered to be unfit to be involved in the management of companies in the future. Matters of unfit conduct, not disputed by Gain Lloyd Broome, were: (a) He acted in contravention of the Insolvency Act 1986 by reusing the Keylink name when it had been prohibited for him to do so; this was the direct result of having been a director of Keylink Recruitment Limited, which entered liquidation on October 19, 2001; and (b) He caused the company to enter into transactions to the detriment of creditors, particularly the Crown. CONTACT: THE INSOLVENCY SERVICE 21 Bloomsbury Street London, WC1B 3QW Web site: http://www.insolvency.gov.uk Disqualification Unit Phone: 020 7291 6807 020 7291 6832 (Vetting) E-mail: Disqualification.Unit@insolvency.gsi.gov.uk Criminal Allegations Team Phone: 020 7291 6841 E-mail: criminal.allegations@insolvency.gsi.gov.uk LODGE FARM: Cattles Invoice Appoints Jacksons Jolliffe Receiver --------------------------------------------------------------- Cattles Invoice Finance Limited called in Matthew Colin Bowker and David Antony Willis (Office Holder Nos 8106, 9180) joint administrative receivers for Lodge Farm Eggs Limited (Reg No 01612158, Trade Classification: 5117). The application was filed October 20, 2004. Formerly named Lincolnshire Farm Eggs Limited, the company sells food, drink and tobacco. CONTACT: JACKSONS JOLLIFFE CORK Lowgate House, Lowgate, Hull HU1 1EL Web site: http://www.jjcork.co.uk MCM TEXTILES: Calls Creditors' Meeting -------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF MCM Textiles Limited (In Liquidation) Notice is hereby given that by an Interlocutor of Ayr Sheriff Court dated September 28, 2004, I was appointed Interim Liquidator of MCM Textiles Limited. Pursuant to Section 138(4) of the Insolvency Act 1986, the First Meeting of Creditors of MCM Textiles Limited will be held within the offices of BDO Stoy Hayward, Chartered Accountants, Ballantine House, 168 West George Street, Glasgow G2 2PT on Tuesday November 9, 2004 at 3:00 p.m. for the purpose of choosing a Liquidator who may either be the Interim Liquidator or any other such person qualified to act as Liquidator; appointing a Liquidation Committee and considering the other Resolutions specified in Rule 4.12(3) Insolvency (Scotland) Rules 1986. To be entitled to vote at the meeting, creditors must have lodged their claims with me at or before the meeting. Voting may either be in person by the creditor or by form of Proxy, which, to be valid, must be lodged with me at the address below before or at the meeting. David J. Hill, CA, Interim Liquidator October 25, 2004 CONTACT: BDO STOY HAYWARD Ballantine House 168 West George Street Glasgow, G2 2PT Phone: 0141 248 3761 Fax: 0141 332 5467 E-mail: glasgow@bdo.co.uk Web site: http://www.bdostoyhayward.co.uk MYTRAVEL GROUP: Considering Scheme of Arrangement as Plan B ----------------------------------------------------------- The Board of MyTravel is continuing to pursue a consensual restructuring which requires the agreement of the company's lending banks and facility providers and the approval of the company's convertible bondholders and ordinary shareholders. Indications of agreement have already been received from lending banks and facility providers holding a majority of the commitments involved. Circulars will be sent to the shareholders and the convertible bondholders in due course. While the Board would prefer to implement the restructuring on a consensual basis, it believes it is appropriate to prepare a contingency plan in case agreement is not reached. Accordingly, MyTravel is beginning a parallel process to implement the restructuring using a scheme of arrangement under section 425 of the Companies Act 1985. The company has commenced the process of seeking the directions of the court to convene the meetings of shareholders and creditors required to approve the scheme. The initial hearing at which the court will be asked to give directions to convene these meetings is expected to take place on 18 November. A scheme of this kind requires the approval of the creditors of the MyTravel Group plc, primarily the lending banks and facility providers, and its shareholders, but does not require the approval of the bondholders. The scheme involves the creation by the company of a new holding company and transferring to that new holding company all the assets of the company. The new holding company issues shares to existing ordinary shareholders and to the converting creditors, as in the consensual restructuring proposal. The new holding company assumes all responsibility for payment of all liabilities of the company, including trade creditors, other than liabilities such as the obligations to bondholders that are subordinated in a winding up of the company. This allows the new holding company to carry on as holding company of the MyTravel Group free of claims by the bondholders. The scheme will not affect creditors of subsidiaries. Under the consensual restructuring proposal, bondholders will be offered conversion into shares representing 8% of the enlarged share capital of the company. Unless by 17 November 2004 a sufficient majority of bondholders has entered into voting agreements undertaking to support the consensual restructuring proposal, the bondholders' share will be reduced to 4%. If the scheme is implemented instead of the consensual process, the offer to bondholders will be reduced to 2%. Shareholders will retain 4% of the enlarged share capital whether the restructuring is implemented on the consensual basis or under the scheme of arrangement. CONTACT: BRUNSWICK GROUP LLP Fiona Antcliffe Sophie Fitton William Cullum Phone: 020 7404 5959 MYTRAVEL GROUP: Bondholders Warn of Insolvency ---------------------------------------------- The ad hoc convertible bondholder committee of holders of MyTravel Group plc's GBP216 million 7% Convertible Bonds due 2007, represented by Cadwalader, Wickersham & Taft LLP and Houlihan, Lokey, Howard & Zukin (Europe) Limited, has seen the Company's restructuring announcement and authorized this statement on the Committee's behalf: "The Committee is disappointed that the Company has taken precipitative action to file a scheme of arrangement without first negotiating with convertible bondholders. The Committee is concerned that the Company's conduct may make insolvency proceedings more likely. The proposal does not have the Committee's support. The Committee's preference remains a consensual deal but it must be a fair deal." CONTACT: CADWALADER, WICKERSHAM & TAFT LLP Andrew Wilkinson Phone: +44-0-20-7170-8740 E-mail: andrew.wilkinson@cwt-uk.com or HOULIHAN, LOKEY, HOWARD & ZUKIN (EUROPE) LIMITED Peter Marshall Phone: +44-0-20-7747-2724 E-mail: pmarshall@hlhz.com NSA (EUROPE): Hires McTear Williams & Wood as Administrator ----------------------------------------------------------- Andrew McTear and Chris Williams (IP Nos 007242, 008772) have been appointed administrators for NSA (Europe) Limited. The appointment was made October 22, 2004. The company manufactures machine tools. CONTACT: MCTEAR WILLIAMS & WOOD 90 St Faiths Lane, Norwich NR1 1NE Phone: 01603 877540 Fax: 01603 877549 E-mail: mail@mw-w.com Web site: http://www.mw-w.com OAKWOOD HOMES: Names Kroll Limited Administrator ------------------------------------------------ David John Whitehouse and Simon Wilson (IP Nos 8699, 8963) have been appointed administrators for Oakwood Homes Limited. The appointment was made October 28, 2004. The company purchases and develops land. CONTACT: KROLL LIMITED 1 Oxford Court, Bishopsgate, Manchester M2 3WR PANTON FILM: Special Winding up Resolution Passed ------------------------------------------------- At the extraordinary general meeting of the members of the Panton Film Distributors Limited on October 25, 2004 held at Bridge House, London Bridge, London SE1 9QR, the special resolution to wind up the company passed. PAYCHECK SERVICES: Appoints Begbies Traynor Administrator --------------------------------------------------------- Name of companies: Paycheck Services 44 Limited PC 45 Limited Paul Stanley and Stephen L. Conn (IP Nos 1065, 1762) have been appointed administrators for these companies. The appointment was made October 19, 2004. Its registered office is located at Begbies Traynor, Elliot House, 151 Deansgate, Manchester M3 3BP. CONTACT: BEGBIES TRAYNOR Elliot House 151 Deansgate Manchester M3 3BP E-mail: manchester@begbies-traynor.com Web site: http://www.begbies.com PREMIER FOODS: Long-term Rating Withdrawn After Debt Payment ------------------------------------------------------------ Standard & Poor's Ratings Services withdrew its 'BB' long-term corporate credit rating on U.K.-based food manufacturer Premier Foods PLC. The ratings on related entity Premier Financing Ltd. were also withdrawn. The company, following the redemption of its subordinated notes in September 2004, requested the withdrawal of all ratings. Ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at http://www.ratingsdirect.com. It can also be found at http://www.standardandpoors.com. Alternatively, call one of the following Standard & Poor's numbers: London Ratings Desk (44) 20-7176-7400; London Press Office Hotline (44) 20-7176- 3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5916; or Moscow (7) 095-783-4017. Members of the media may also contact the European Press Office via e- mail: media_europe@standardandpoors.com. CONTACT: STANDARD AND POOR'S RATING SERVICES Group E-mail Address CorporateFinanceEurope@standardandpoors.com QUADSECT LIMITED: Calls in Administrators from Begbies Traynor -------------------------------------------------------------- P. M. Davis and T. J. E. Dolder (IP Nos 9008, 7805) have been appointed joint administrators for Quadsect Limited. The appointment was made October 22, 2004. The company offers printing services. Its registered office is located at Unit 17, Deptford Trading Estate, Black Horse Road, Deptford, London SE8 5HY. CONTACT: BEGBIES TRAYNOR (SOUTH) LLP 32 Cornhill, London EC3V 3BT Phone: 020 7398 3800 Fax: 020 7398 3799 Web site: http://www.begbies.com SEDAO TECHNOLOGY: Hires Joint Administrators from Harrisons ----------------------------------------------------------- Paul Robert Boyle and John Christopher Sallabank (IP Nos 008897, 008099) have been appointed joint administrators for Sedao Technology Limited. The appointment was made October 22, 2004. Its registered office is located at The Cavendish Centre, Winnall Close, Winnall Manor Road, Winchester, Hampshire SO23 0LB. CONTACT: HARRISONS 4 St Giles Court, Southampton Street, Reading RG1 2QL Phone: 0118 951 0798 Fax: 0118 939 4409 E-mail: info@harrisons.uk.com Web site: http://www.harrisons.uk.com RAILFORCE LIMITED: Sets Creditors' Meeting Next Week ---------------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Railforce Limited (In Liquidation) I, Ian W Wright, hereby give notice that I was appointed Interim Liquidator of Railforce Limited on October 5, 2004, by Interlocutor of the Sheriff of Glasgow and Strathkelvin at Glasgow. Notice is also given that the First Meeting of Creditors of Railforce Limited will be held at the offices of Haines Watts, James Miller House, 98 West George Street, Glasgow, G2 1PJ, on November 12, 2004 at 10:30 a.m. for the purposes of choosing a Liquidator and of determining whether to establish a Liquidation Committee. Creditors, whose claims are unsecured in whole or in part, are entitled to attend and vote in person or by proxy providing that their claims and proxies have been submitted and accepted at the meeting or lodged beforehand at the address below. A resolution will be passed when a majority of those voting have voted in favor of it. For the purpose of formulating claims, creditors should note that the date of commencement of the Liquidation is March 21, 2003. Ian W Wright, Interim Liquidator CONTACT: HAINES WATTS (GLASGOW INSOLVENCY) James Miller House 98 West George Street Glasgow G2 1PJ Phone: 0141 342 1600 Fax: 0141 342 1616 Web site: http://www.hwca.com SOUTHWOOD DEVELOPMENTS: Hires D. E. Jeal as Liquidator ------------------------------------------------------ At the extraordinary general meeting of the members of the Southwood Developments Limited on October 18, 2004 held at 9 Alexandra Court, Newquay, Cornwall TR7 3NJ, the special resolution to wind up the company was passed. Derek Anthony Jeal of Parkway House, 1 Pityme Business Centre, St Minver, Wadebridge, Cornwall PL27 6NU has been appointed liquidator for the purpose of such winding-up. TURNER & NEWALL: Court Backs Trustees' Stand on Rescue Plan ----------------------------------------------------------- Trustees of Turner & Newall's pension fund were pleased the High Court gave them assurance they are entitled to reject a U.S.- devised restructuring plan for the trust. Justice Patten said the trustees may vote against the plan without breaching fiduciary duty to members, according to The Telegraph. They have until November 17 to vote on the rescue. The trustees have rejected an offer from creditors of U.S. parent company Federal Mogul of a one-off GBP130 million payment into the fund, which is feared to face a GBP875 million gap. They said the restructuring plan, dubbed 'Let it Run', is structurally unfair. The creditors are now offering US$25 million a year for the first three years, plus a promise of ensuring the scheme is fully funded within a decade. Alexander Forbes, spokesman for the independent trustees, is pleased the court confirmed their earlier arguments regarding the proposal: "We informed Federal from the outset that the 'Let It Run' proposal for the pension scheme was not workable. The court has confirmed this. We continue to discuss and analyze an alternative proposal made by Federal and its creditors though there are significant concerns that this alternative may, likewise, turn out to be unworkable." Mr. Justice Patten said: "It seems to me that the trustees would be open to attack, were they now to seek to implement 'Let it Run' in the face of the actuarial and investment advice they have received." The trustees are asking assurances that the T&N companies are strong enough to support the new pension scheme offer before they can approve the rescue deal. YORKSHIRE CHEMICALS: HSBC Bank Brings in Receiver from PwC ---------------------------------------------------------- Name of companies: Yorkshire Chemicals Plc Yorkshire Industries Limited Yorkshire Group Plc HSBC Bank Plc called in Stephen Andrew Ellis, Roger Marsh and David Costley-Wood (Office Holder Nos 8843, 5925, 9336) joint administrative receivers for these companies. The application was filed October 25, 2004. CONTACT: PRICEWATERHOUSECOOPERS LLP Benson House, 33 Wellington Street, Leeds LS1 4JP Phone: [44] (113) 289 4000 Fax: [44] (113) 289 4460 Web site: http://www.pwcglobal.com ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Larri-Nil Veloso, Ma. Cristina Canson, Liv Arcipe, and Julybien Atadero, Editors. Copyright 2004. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *