/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/050601.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, June 1, 2005, Vol. 6, No. 107 Headlines F R A N C E LBC HOLDINGS: S&P Sees Liquidity Squeeze Ahead G E R M A N Y AF GMBH: Court Appoints Thomas Schmitz Administrator AGFAPHOTO GMBH: Files for Insolvency AUGUSTA TECHNOLOGIE: First-quarter Results Return to Black BORUSSIA DORTMUND: Marks up Loss Estimate DAIMLERCHRYSLER AG: Smart forTwo Models Defective HUK WOHNBAU: Creditors Meeting Set Next Month JUBEKA PARKETT: Interim Administrator Takes over Operations KAMPS AG: Working Back into Black KARADAL INDUSTRIEBAU: Creditors Meeting Set August MG TECHNOLOGIES: Strengthens Presence in Indian Growth Market NATURHEILKUNDE IN OBERFRANKEN: Declared Insolvent ORIENTTEPPICHHAUS CLEMENS: Under Bankruptcy Administration PETER KEPPLER: Applies for Bankruptcy Proceedings SKG KUEHLERFABRIK: Creditors Claim Due Next Week TAXXUS REAL: Court to Verify Claims July 15 UC MANAGEMENT: Proofs of Claim Due Next Month VEREINIGTE OFEN: Court Confirms Bankruptcy VOLKSWAGEN AG: Seeks Credit line to Back Paper Program I T A L Y ALITALIA SPA: Staff Shortage, Walkout Mark Nightmarish Weekend IMPREGILO SPA: Approves Share Capital Increase IMPREGILO SPA: Signs Put Option on Aeroporti di Roma Interest N E T H E R L A N D S LAURUS N.V.: Axing 59 Beilen Center Employees ROYAL SHELL: Signs 20-year Contract with Hiroshima Gas ROYAL SHELL: Shell Deutschland Buys 'Extra' Shares N O R W A Y PAN FISH: Concludes Two-year Restructuring R O M A N I A COSMOROM SA: Cosmote Acquires Majority Stake R U S S I A APSALYAMOVSKIY: Undergoes Bankruptcy Supervision Procedure ATOM-STROY-SERVICE: Smolensk Court Appoints Insolvency Manager BUZDYAKSKIY: Succumbs to Bankruptcy DOR-STROY-KOMPLEKT: Declared Insolvent FENIK-TS: Gives Creditors Until June 23 to File Claims GASOVIK: Bankruptcy Hearing Resumes July INTERNATIONAL MOSCOW: Long-term Rating Upgraded to 'BB' NORD-OIL: Under Bankruptcy Supervision RAY-PISHE-COMBINE GIAGINSKIY: Declared Insolvent SPETS-STROY: Proofs of Claim Deadline Expires June 23 YUKOS OIL: Khodorkovsky Acquitted of Forgery ZLATOPOLINSKOYE: Appoints A. Generalov Insolvency Manager U K R A I N E ART-CAPITAL: Bankruptcy Supervision Starts ARTOR: Lviv Court Opens Bankruptcy Proceedings GELIOS-TRADE: Declared Insolvent GOLDEX: Insolvency Manager Takes over Operations GRAFIT: Court Names O. Klimenko Insolvency Manager INTERCINEMA: Succumbs to Insolvency INTERTECHBUD: Hires F. Kachurov as Insolvency Manager KIVERTSIVSKIJ WOOD: Liquidator Takes over Operations MARIUPOL' FISH-TIN: Donetsk Court Declares Firm Insolvent MAXIMUM: Harkiv Court Opens Bankruptcy Proceedings PIVDENNO-ZAHIDNE AUTO: Insolvency Manager Enters Firm PLEMZAVOD KOLOS: Under Bankruptcy Supervision TV-RADIO OBRIJ: Court Suspends Debt Payments UKRZAHIDINVEST: Declared Insolvent U N I T E D K I N G D O M ALLIED DOMECQ: DkW Points out Pitfalls in Constellation Offer CNS SUBSEA: Names KPMG Administrators CREWE BUILDING: Winding-up Report Out Next Month DAWSON INTERNATIONAL: Chairman Receives Bonus Despite Crisis EMI GROUP: Pre-tax Profit Lower, but in Line with Forecast EXPRESS FREIGHT: Calls in Liquidator from Sanderlings EZEE TOOL: Names Parkin S. Booth & Co. Liquidator FOCUS ON FOOD: Deadline for Debt Claims July FOUR DOWN: Calls in Liquidators GCC INTERNATIONAL: Members Pass Winding-up Resolution G & G PUGH: Appoints Barringtons Liquidator HERITAGE FINANCIAL: Appoints Tomlinson Liquidator JOHN RICH: Hires Liquidator from Critchleys J P BIRMINGHAM: Appoints Butcher Woods Liquidator J S MOULDINGS: Calls in Liquidator JUBILEE COURT: Gives Creditors Until July to File Claims KELITH LIMITED: Creditors Meeting Tomorrow MESH BROADBAND: Members Hire Liquidator from B & C Associates MG ROVER: PwC Bares Commercial Secrets to Prospective Bidders MTM PRINT: Members Decide to Call in Liquidators MYTRAVEL GROUP: Hires Ambergreen to Market Online Brands NETWORX CORPORATE: Shareholders Approve Winding-up Resolutions OCTEL CORP.: Reviews Biz Amidst Uncertainty in TEL Market OPENALPHA LTD.: Liquidator from Roger Evans Moves in PANTHER MOTOR: Appoints Sanderlings Liquidator POCKETWATCH SYSTEMS: Liquidator's Report Out Later this Month QXL RICARDO: Appoints Two New Non-executive Directors RAVELIKE LTD.: Holds Final Creditors Meeting RIVERDEEP GROUP: Hires Valentine & Co. as Liquidator ROYAL MAIL: Rural Network to Collapse Without State Subsidy R S PRECISION: Appoints Moore Stephens Liquidator STARK ENGINEERING: Decides to Liquidate Assets TECHTONIK LTD.: Members Call in Liquidator from RMT TENTAZIONE LIMITED: Appoints Liquidators from Gerald Edelman TRANSCOAST LONDON: Liquidator from Robert Day & Company Moves in TRUC VERT: Names Ian Franses Associates Liquidator W D STONE: Appoints Roger Evans Liquidator WEST CITY: Members Decide to Wind up Company ********* =========== F R A N C E =========== LBC HOLDINGS: S&P Sees Liquidity Squeeze Ahead ---------------------------------------------- Standard & Poor's Ratings Services revised its outlook on France-based liquid chemical products storage company LBC Holdings LLC to negative from stable, reflecting the company's potentially tighter liquidity situation in the medium term if it is unable to increase its cash flow enough in 2005 and 2006, compared with 2004, or ceases to have access to credit lines when needed. At the same time, the 'B' long-term corporate credit rating on the company was affirmed. The rating continues to primarily reflect the company's very aggressive financial profile, associated with contract concentration; narrow leeway to reduce substantial fixed costs amid weaker-than-expected demand; limited visibility on EBITDA and cash flows; capital intensity; and delayed, uncertain returns. These factors are only somewhat offset by the industry's high barriers to entry and the group's EBITDA margin, historically wider than 35%. Emphasizing these challenges, LBC's 2004 EBITDA margin contracted to 33.5%, falling far short of expectations. "The negative outlook reflects our concerns regarding LBC's potentially weaker liquidity position, notably in light of LBC's obligation to seek a waiver under one of its bank covenants, raising doubts about the real availability of its revolving credit facility," said Standard & Poor's credit analyst Khaled Zitouni. "We will monitor EBITDA, free cash flow generation, compliance with covenants, and availability of undrawn, committed lines." Downward pressure on the rating could heighten if any of these key factors deteriorate. Ratings information is available to subscribers of RatingsDirect 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 ============= G E R M A N Y ============= AF GMBH: Court Appoints Thomas Schmitz Administrator ---------------------------------------------------- The district court of Duisburg opened bankruptcy proceedings against AF GmbH Abbruch und Fachbetrieb des Fliesenhandwerks on May 12. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until July 14, 2005 to register theirr claims with court-appointed provisional administrator Thomas Schmitz. Creditors and other interested parties are encouraged to attend the meeting on August 19, 2005, 9:00 a.m. at the district court of Duisburg, Nebenstelle, Kardinal-Galen-Strasse 124-130, 47058 Duisburg, II. Etage, Zimmer 207, 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: AF GMBH ABBRUCH UND FACHBETRIEB DES FLIESENHANDWERKS Theodor-Heuss-Str. 93, 47167 Duisburg Contact: Michael Weinreich, Manager Helmstr. 26, 45359 Essen Thomas Schmitz, Administrator Am Flohbusch 1, 47802 Krefeld AGFAPHOTO GMBH: Files for Insolvency ------------------------------------ Agfa-Gevaert said on May 27 it was informed of the insolvency filing by AgfaPhoto GmbH. Agfa-Gevaert is fully prepared to co- operate with the insolvency receiver once appointed and all parties concerned. Effective November 2, 2004, Agfa-Gevaert sold its consumer imaging business to a group of investors in a management buy out/in. Since then the consumer imaging business has been operated through a group of companies under the name of AgfaPhoto. The AgfaPhoto group is a private group of companies owned by management, NannO Beteiligungsholding and a small number of financial investors. Agfa-Gevaert provides AgfaPhoto group companies with distribution, order fulfillment, after sales and other services until the end of 2005. In addition, at the time of the management buy out/in on November 2, 2004, Agfa-Gevaert granted a secured vendor loan for the full purchase price. Based on Agfa Gevaert's audited financial statement, the purchase price was set at EUR112 million, which is still subject to an audit of the closing financials by the purchaser. The vendor loan is fully secured by a lease portfolio held by AgfaPhoto Holding GmbH, the parent company of the AgfaPhoto group. AgfaPhoto Holding GmbH is not implicated in the insolvency filing of AgfaPhoto GmbH. Agfa- Gevaert therefore does not expect the insolvency filing by AgfaPhoto to have a material effect on Agfa-Gevaert. Agfa-Gevaert regrets this development for AgfaPhoto GmbH but is hopeful, that in the interest of preserving the employment and the business operations of AgfaPhoto group, the current difficulties can be overcome and that AgfaPhoto GmbH recovers quickly. CONTACT: AGFAPHOTO GERMANY GMBH Im Mediapark 5 D-50670 Cologne Phone: +49 221 98544-3723 Fax: +49 221 98544-3805 Web site: http://www.agfaphoto.com AGFA-GEVAERT N.V. Septestraat 27 B-2640 Mortsel Belgium Phone: +32 3 444 2111 Fax: +32 3 444 7094 Web site: http://www.agfa.com Nancy Glynn Vice-President Communication Phone: +32 (0)3 444 80 00 Fax: +32 (0)3 444 74 85 AUGUSTA TECHNOLOGIE: First-quarter Results Return to Black ---------------------------------------------------------- Business development at Prime Standard member AUGUSTA Technologie AG was with line in expectations in the first quarter of 2005. At EUR48.0 million, consolidated sales revenues slightly exceeded the most recent forecast of around EUR44 million. This is somewhat better overall than the comparable prior-year period adjusted for the deconsolidated Data Display Group (Q1 2004 adjusted: EUR44.2 million; Q1 2004: EUR57.2 million). AUGUSTA experienced significant increases in sales revenues in the Sensor Systems division (Q1 2005: EUR19.4 million; Q1 2004: EUR16.0 million), whereas the IT Systems division trailed the comparable prior-year period due to the inclusion in the latter of the Data Display Group (Q1 2005: EUR9.2 million; Q1 2004: EUR21.9 million). The Communication Systems division continued to feel the impact of the disappointing business developments in the previous year to a certain extent in terms of earnings development, but nonetheless generated sales revenues of EUR19.5 million in Q1 2005 (Q1 2004: EUR19.3 million). On the whole, the AUGUSTA Group generated a positive segment result of EUR2.1 million (Q1: 2004: -EUR0.6 million). Restructuring expenses of EUR0.6 million arose in the Group in Q1 2005; the majority of these related to the restructuring of liabilities at AUGUSTA Technologie AG. Incoming orders in the AUGUSTA Group amounted to EUR43.7 million as of March 31, 2005 (Q1 2004: EUR61.4 million). Booked business amounted to EUR77.6 million as of March 31, 2005 (March 31, 2004: EUR112.3 million). EBITDA in Q1 2005 amounted to EUR3.6 million (Q1 2004: EUR0.1 million). EBIT totaled EUR2.2 million (Q1 2004: -EUR1.2 million). Overall, AUGUSTA recorded a profit for the period of EUR 0.3 million in Q1 2005 (loss for Q1 2004: EUR1.6 million) and a profit per share of EUR0.03 (loss per share in Q1 2004: EUR0.13). The entry of the resolutions by the Extraordinary General Meeting in the commercial register for the Company on April 29, 2005, paved the way after Q1 2005 for AUGUSTA to successfully conclude its restructuring. The Management Board CONTACT: AUGUSTA TECHNOLOGIE AG Wilhelm-Leuschner-Strasse 9-11 60329 Frankfurt am Main Deutschland Web site: http://www.augusta-ag.de Lena Trautmann, Investor Relations Phone: +49-(0)69-242669-19 Fax: +49-(0)69-242669-40 E-mail: trautmann@augusta-ag.de BORUSSIA DORTMUND: Marks up Loss Estimate ----------------------------------------- Football club Borussia Dortmund (BVB) expects a higher net loss this year, Suddeutsche Zeitung says. BVB recently adjusted its loss forecast by 9.4% to EUR78.2 million due to higher cost in organizing matches. The original estimate was only EUR68.8 million. The club clarified it still has enough liquid assets. BVB averted bankruptcy in March by buying back a stake held by Molsiris, a division of Commerzbank that bought the club's 95% stake in its Westfallen stadium. In exchange, Molsiris returned EUR52 million to Borussia and reduced its annual rent and deferred the EUR15 million rent for 2005 and 2006. The only publicly listed football club in Germany, Borussia booked a EUR27 million operating loss for the second half of 2004. Including last year's loss of EUR73.3 million, Borussia's total deficit now stands at EUR142.1 million. CONTACT: BORUSSIA DORTMUND GMBH & CO. KGAA Rheinlanddamm 207-209 44137 Dortmund Phone: +49 (2 31) 9 02 00 Web site: http://www.borussia-dortmund.de DAIMLERCHRYSLER AG: Smart forTwo Models Defective ------------------------------------------------- Carmaker Smart AG, part of DaimlerChrysler AG, which is still recovering from losses at its Mercedes Car Group, is recalling 58,000 of its forTwo models in Germany. The Boeblingen-based company wants buyers to have their minicars inspected for possible defect in the front axle joint so the part could be replaced, according to Associated Press. The firm learned of the flaw after receiving reports from customers who had gotten into accidents because of it, according to spokesman Hubert Kogel. No related death has been reported. The recall is aimed at German owners, though it is thought cars in other countries could be affected since more than 202,000 vehicles were sold when the two-seater cars were built between 1998 and 2000. The cars were also sold in Italy, Switzerland, Japan, Austria, France, and Spain. DaimlerChrysler reported first quarter earnings of EUR288 million, a 30% drop from last year. It blamed the slide to the Mercedes division, which booked EUR945 million in operating losses. CONTACT: DAIMLERCHRYSLER AG 70546 Stuttgart, Germany Tel: +49 711 17 0 Fax: +49 711 17 22244 Web site: http://www.daimlerchrysler.com HUK WOHNBAU: Creditors Meeting Set Next Month --------------------------------------------- The district court of Leipzig opened bankruptcy proceedings against HuK Wohnbau und Immobilien GmbH on May 2. Consequently, all pending proceedings against the company have been automatically stayed. Creditors had until May 30, 2005 to register their claims with court-appointed provisional administrator Dr. Jurgen Wallner. Creditors and other interested parties are encouraged to attend the meeting on June 16, 2005, 10:30 a.m. at Saal 145, Amtsgericht Leipzig of 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: HUK WOHNBAU UND IMMOBILIEN GMBH Zimmerstr. 3, 04109 Leipzig Contact: Thomas Hafermann, Manager Dr. Juergen Wallner, Administrator Karl-Heine-Strasse 25 b, 04229 Leipzig JUBEKA PARKETT: Interim Administrator Takes over Operations ----------------------------------------------------------- The district court of Muenchen opened bankruptcy proceedings against Jubeka Parkett Region Munchen GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until June 20, 2005 to register their claims with court-appointed provisional administrator Klaus E. Breithaupt. Creditors and other interested parties are encouraged to attend the meeting on July 19, 2005, 9:20 a.m. at Infanteriestr. 5, Sitzungssaal 102 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: JUBEKA PARKETT REGION MUENCHEN GMBH Brunhamstr. 21 in 81249 Muenchen Klaus E. Breithaupt, Administrator Baierbrunner Str. 25, 81379 Muenchen Phone: 089/452277-0 Fax: 089/452277-29 KAMPS AG: Working Back into Black --------------------------------- In the first quarter of 2005, Kamps AG has achieved expected savings due to the cost cutting program that was started in 2004. The European manufacturer of bakery produce is striving to return into the black by 2007. Besides three closures -- a further company will probably be shut down in October -- more favorable terms for the purchase of raw materials that have been agreed and the restructuring of the retail business in the Netherlands contributed to lower costs. Altogether Kamps has reached the planned EUR8 million of the total assessed savings of EUR37 million in the first quarter of 2005. The group's net turnover in the first three months, the season with the lowest volume of business in the bakery business, was about EUR325.3 million (in 2004: EUR349.7 million). The sales trend was influenced by the sale of business operations. According to plan the operating profit EBITDA reached EUR24.7 million (2004: EUR27.4 million). For the current year, Kamps has agreed additional business with present customers from the food retailing, among others in the area bake-off. The turnover of Kamps bakery shops has slightly increased on a comparable basis for the first time in three years. For the whole year, Kamps expects a turnover of EUR1.4 billion and a operating profit EBITDA of EUR127 million. CONTACT: KAMPS AG Prinzenallee 11 40549 Dusseldorf, Germany Phone: +49-211-53-06-34-0 Fax: +49-211-53-06-34-34 Web site: http://www.kamps.de Press Office Christina Stylianou Phone: +49-211-530634-435 Fax: +49-211-520276-435 E-mail: pressestelle@kamps.de KARADAL INDUSTRIEBAU: Creditors Meeting Set August -------------------------------------------------- The district court of Erfurt opened bankruptcy proceedings against Karadal Industriebau GmbH on May 9. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until July 15, 2005 to register their claims with court-appointed provisional administrator V. Reinhardt. Creditors and other interested parties are encouraged to attend the meeting on August 9, 2005, 2:00 p.m. at the district court of Erfurt, Justizzentrum, Rudolfstr. 46, 99092 Erfurt, Saal 12, 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: KARADAL INDUSTRIEBAU GMBH Bodelschwinghstr. 49, 99425 Weimar V. Reinhardt, Administrator Windthorststr. 17, 99096 Erfurt MG TECHNOLOGIES: Strengthens Presence in Indian Growth Market ------------------------------------------------------------- Niro A/S, a Danish subsidiary of mg technologies AG, acquired the remaining 50% of L&T-Niro Ltd. in India and the Food Division of its long-term Indian joint venture partner Larsen & Toubro Ltd. Niro A/S, a company of mg's Process Engineering Segment, is now the sole shareholder of the former L&T-Niro Ltd. joint venture in Gujarat, India. At the same time, L&T-Niro Ltd. took over Larsen & Toubro's Food Division, which develops and supplies manufacturing facilities for the food and dairy industries. The effective date of both transactions is 1 April 2005. Following the takeover, L&T-Niro Ltd. employs a total of 75 persons and generates annual revenues of over EUR20 million. The acquisition has widened the GEA mechanical engineering activities of mg technologies ag and strengthened mg's presence on the important Indian market. India is already the world's largest milk producer with an annual production of some 87 million tons and could, according to market researchers, become a major dairy product exporter to serve rapidly growing demand in Asia. Mg technologies AG is an international technology group that focuses on specialty mechanical engineering -- especially process engineering and components -- and plant engineering. The company generated sales of roughly EUR4.1 billion -- excluding Dynamit Nobel and other discontinued operations -- in 2004. At December 31, 2004, it employed around 17,000 people and is one of the world's market and technology leaders in 90% of its businesses. CONTACT: MG TECHNOLOGIES AG Communications Phone: +49 (0)234 980 1081 Fax: +49 (0)234 980 1087 Web site: http://www.mg-technologies.com NATURHEILKUNDE IN OBERFRANKEN: Declared Insolvent ------------------------------------------------- The district court of Hof opened bankruptcy proceedings against Naturheilkunde in Oberfranken e.V. on May 4. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until July 3, 2005 to register their claims with court-appointed provisional administrator Dr. Martin Prager. Creditors and other interested parties are encouraged to attend the meeting on July 20, 2005, 1:05 p.m. at Sitzungssaal 012, -- Erdgeschoss --, Amtsgericht Hof, Berliner Platz 1, 95030 Hof 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: NATURHEILKUNDE IN OBERFRANKEN E.V. Hauptstrasse 14 in 95182 Tauperlitz Dr. Martin Prager, Administrator An der Feuerwache 5, 95445 Bayreuth Phone: 0921/7877806 Fax: 0921/78778077 ORIENTTEPPICHHAUS CLEMENS: Under Bankruptcy Administration ---------------------------------------------------------- The district court of Bonn opened bankruptcy proceedings against Orientteppichhaus Clemens August GmbH on May 12. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until July 7, 2005 to register their claims with court-appointed provisional administrator Michael Wilbert. Creditors and other interested parties are encouraged to attend the meeting on August 11, 2005, 10:00 a.m. at the district court of Bonn, Insolvenzgericht, Wilhelmstrasse 21, 53111 Bonn, 1. Stock, Saal W126, 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: ORIENTTEPPICHHAUS CLEMENS AUGUST GMBH Clemens-August-Strasse 55, 53115 Bonn Contact: Hamid Abasabad, Manager Michael Wilbert, Administrator Simrockstrasse 7, 53113 Bonn Phone: 0228-336255-5 Fax: 0228-336255-6 PETER KEPPLER: Applies for Bankruptcy Proceedings ------------------------------------------------- The district court of Muenchen opened bankruptcy proceedings against Peter Keppler GmbH on May 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until June 20, 2005 to register their claims with court-appointed provisional administrator Ulrich Bastian. Creditors and other interested parties are encouraged to attend the meeting on Aug. 9, 2005, 9:00 a.m. at Infanteriestr. 5, Sitzungssaal 102 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: PETER KEPPLER GMBH Triftstr. 10 in 80538 Muenchen Ulrich Bastian, Manager Sendlinger Str. 46, 80331 Muenchen Phone: 089/2603966 Fax: 089/2609204 SKG KUEHLERFABRIK: Creditors Claim Due Next Week ------------------------------------------------ The district court of Chemnitz opened bankruptcy proceedings against SKG Kuehlerfabrik GmbH on May 10. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until June 9, 2005 to register their claims with court-appointed provisional administrator Dr. Peter Naarmann. Creditors and other interested parties are encouraged to attend the meeting on August 4, 2005, 10:45 a.m. at the district court of Chemnitz, Saal 28, im Gerichtsgebaude Fuerstenstrasse 21 in 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: SKG KUEHLERFABRIK GMBH Am Zellwald, 09603 Grossschirma Contact: Rolf Grunewald, Manager Dr. Peter Naarmann, Administrator Dresdner Str. 86, 09130 Chemnitz TAXXUS REAL: Court to Verify Claims July 15 ------------------------------------------- The district court of Hamburg opened bankruptcy proceedings against TAXXUS Real Estate Beteiligungen GmbH on May 10. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until June 15, 2005 to register their claims with court-appointed provisional administrator Klaus Kragel. Creditors and other interested parties are encouraged to attend the meeting on July 15, 2005, 12:00 noon at the district 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: TAXXUS REAL ESTATE BETEILIGUNGEN GMBH Holzdamm 28-32, 20099 Hamburg Contact: Klaus Kragel, Manager Christian Bock, Manager Franz Ditterich, Manager Karsten Totter, Administrator Speersort 4/6, 20095 Hamburg Phone: 303010 Fax: 30301246 UC MANAGEMENT: Proofs of Claim Due Next Month --------------------------------------------- The district court of Hamburg opened bankruptcy proceedings against UC Management GmbH on May 9. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until July 4, 2005 to register their claims with court-appointed provisional administrator Joachim Buettner. Creditors and other interested parties are encouraged to attend the meeting on August 4, 2005, 9:40 a.m. at the district 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: UC MANAGEMENT GMBH c/o UNICOM GmbH Commercial Flexible Packaging, Marketing, Outsourcing & Allianzen Beim Schlump 26, 20144 Hamburg Contact: Herbert Petersen, Manager Heinrich-Schuldt-Strasse 1a, 24939 Flensburg Joachim Buettner, Administrator Osdorfer Landstrasse 230, 22549 Hamburg Phone: 8078810 VEREINIGTE OFEN: Court Confirms Bankruptcy ------------------------------------------ The district court of Muenchen opened bankruptcy proceedings against Vereinigte Ofen- und Kaminwerkstatten Bayern AG on May 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until June 24, 2005 to register their claims with court-appointed provisional administrator Dr. Hans von Gleichenstein. Creditors and other interested parties are encouraged to attend the meeting on July 21, 2005, 9:45 a.m. at Infanteriestr. 5, Sitzungssaal 102 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: VEREINIGTE OFEN- UND KAMINWERKSTATTEN BAYERN AG Hans-Pinsel-Str. 1 in 85540 Haar Dr. Hans von Gleichenstein, Administrator Rottmannstr. 11a, 80333 Muenchen Phone: 089/5427300 VOLKSWAGEN AG: Seeks Credit line to Back Paper Program ------------------------------------------------------ Volkswagen AG is currently in talks with several banks for a EUR12.5 billion syndicated credit facility, said Spanish news agency Europa Press. A spokeswoman reportedly noted the credit line, which would be renewed on a revolving basis, would support the company's short- term commercial paper program. She said: "We want to wrap up this refinancing by mid-June." Last month, Volkswagen revealed plans to cut cost of materials by EUR1 billion next year, as part of a new program aimed at bringing overall cost by 20%. The existing ForMotion program, according to the company, remains on track and will deliver EUR3.1 billion in savings this year. Volkswagen's automotive business recently suffered a EUR107 million net loss, allegedly caused by the delay in launching the new Golf, Jetta and Passat models. The company also blamed the strong euro and the ongoing price reduction in the U.S. and Europe to increase sales. The German carmaker expects Passat to post an operating margin of 4 percent. CONTACT: VOLKSWAGEN AG Brieffach 1848-2 38436 Wolfsburg, Germany Tel: +49 53 61 90 Fax: +49 53 61 92 82 82 Web site: http://www.volkswagen.de ========= I T A L Y ========= ALITALIA SPA: Staff Shortage, Walkout Mark Nightmarish Weekend -------------------------------------------------------------- Several cabin crew of Alitalia S.p.A. failed to report to work Sunday, forcing the carrier to cancel 10 international and two domestic flights, the Associated Press says. This came a day after Alitalia canceled 196 flights due to a four-hour walkout by air traffic controllers. The staff shortage caused flight delays and left travelers stranded at the Leonardo Da Vinci airport. Paolo Maras, representing transport labor union SULT, faults Alitalia's failure to hire enough additional workforce for the peak season, prompting cabin crew staff to carry more than their usual load. The successive flight cancellations capped a week that ushered in more troubling news for the struggling airline. La Stampa had reported early in the week that beginning next year German, British and French airports will implement new noise and air pollution rules, which could force Alitalia to decommission its entire MD80 fleet. Although the engines of MD80 planes can be replaced with quieter ones, this option will cost Alitalia as much as EUR3 million per plane or EUR210 million for all 70 planes, whose average age is 20. The company is already arranging the distribution of its Airbus 319, 320 and 321 jets to airports adopting the new rules. 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 IMPREGILO SPA: Approves Share Capital Increase ---------------------------------------------- Impregilo S.p.A. said that its May 20 shareholders' meeting chaired by Cesare Romiti carried these resolutions during an extraordinary session: (a) a reverse split of outstanding ordinary and savings shares at a rate of one new ordinary or savings share for every ten outstanding ordinary or savings shares, and related amendments to arts. 6, 8 and 32 of the By-laws; this will also ensure that the extent and characteristics of the privileges on savings shares remain unchanged; (b) the abrogation of the powers granted by the Shareholders' Meeting of 12 October 2004, pursuant to articles 2443 and 2420-ter of the Italian Civil Code, authorizing the Board of Directors to raise share capital and issue convertible bonds; (c) a splittable increase in share capital for an amount of EUR650,000,000.00 (six hundred and fifty million point zero), through the issue of ordinary share rights; the issue price of the new shares will be equivalent to the theoretical ex right price of the Impregilo ordinary share, determined with standard methods and on the basis of the mean official per-share price over a period of at least three trading days before determination of the issue price, less a minimum 25%, on condition that the new share issue price shall not be more than EUR0.20, or, after the reverse share split as per point (a), not more than EUR2; the Board of Directors was granted full powers to execute the above resolutions, including but not limited to the power to determine the issue price as illustrated above and the power to establish: the amount of the discount on the theoretical ex right price of the Impregilo ordinary share at a minimum of 25%, taking account, among other things, of conditions on the financial markets at the time of the offer, of the Impregilo ordinary share price trend, and of standard market practice for operations of this type and in agreement with the joint lead managers of the underwriting syndicate (as reported in the press release issued on 17 May 2005), with the stipulation that in no case may the new share issue price be more than EUR0.20 or, after the reverse share split as per point (a), more than EUR2; and the portion of the new share issue price thus determined that may be allocated as a share premium, with the stipulation that in any case any share premium shall not be more than 50% of the issue price, and consequently, to determine the number of new shares to be issued; the Board of Directors shall decide when to execute the resolution for the share capital increase, within a final deadline of 31 December 2005; and (d) the amendment to art. 20 of the By-laws so that the Board of Directors may consist of a minimum of seven and a maximum of fifteen members. During the ordinary session, the Shareholders also carried these resolutions: (a) to set the number of members of the Board of Directors at fifteen; and (b) to appoint Alfredo Cavanenghi, Gianni Maria Chiarva, Andrea Novarese and Alberto Sacchi to the Board of Directors of Impregilo S.p.A., taking office as from the date of registration on the Companies Register of the resolution carried at the extraordinary Shareholders' Meeting, and to remain in office, together with the Directors named by the Impregilo S.p.A. Shareholders' Meeting of 2 May 2005 until the Shareholders' Meeting held to approve the financial statements at 31 December 2007. The Board of Directors of Impregilo S.p.A. also held a meeting on May 20, at which it created an Executive Committee, whose members are: Cesare Romiti, Committee Chairman; Alberto Lina, Chief Executive Officer; Enrico Bonatti, Beniamino Gavio and Pier Giorgio Romiti. CONTACT: IMPREGILO S.p.A. Viale Italia, 1, Sesto San Giovanni 20099 Milan, Italy Phone: +39-02-244-22111 Fax: +39-02-244-22293 Web site: http://www.impregilo.it IMPREGILO SPA: Signs Put Option on Aeroporti di Roma Interest ------------------------------------------------------------- Impregilo S.p.A. and Gemina S.p.A. have signed put and call options regarding the former's equity investment in Aeroporti di Roma S.p.A. The deal gives Impregilo the right to sell and Gemina, a 24.859% shareholder, the right to buy the Aeroporti interest after the expiry of the lock-up period in a privatization contract with IRI. Specifically, the Gemina call option and the Impregilo put option refer to: (a) the 11% stake in the share capital of Leonardo S.r.l. (Leo) held by Impregilo; (b) the shares representing the 11% of the share capital of Leonardo Holding S.A. (Leo H) also held by Impregilo (together, the "Equity Investments"); and (c) the bonds issued by Leo H to be repaid to Impregilo on 31 December 2004 (Loan Notes), assuming that such loan notes are still outstanding after 31 July 2005, the final date for their repayment. Subject to fulfillment of the condition precedent set out in the contract -- i.e., the existence of the conditions for the transfer of the Loan Notes, such conditions being the agreement of 75% of the owners of the Loan Notes -- Gemina will have the right to purchase the Equity Investments and, eventually, the Loan Notes from Impregilo, between 1 August 2005 and 1 August 2007. Should Gemina not exercise its call option, Impregilo, subject to fulfillment of the above condition precedent, will have the right to sell the Equity Investments and, eventually, the Loan Notes to Gemina, between 1 August 2007 and the 45th day after that date. The purchase price for the Equity Investments and the Loan Notes -- applicable to both the call and the sell options -- will be EUR63,666,269. Subject to legal requirements, payment shall be on a compensation basis, in the form of an equivalent portion of the loans granted by Gemina to Impregilo on 27 July 2004 and 23 March 2005. The above amount shall be increased: (i) for interest, at a rate to be determined in relation to the rates applied to the loans; and decreased (ii) for income medio tempore collected by Impregilo on the Equity Investments and the Loan Notes (reimbursement of risk capital, reimbursement of the bond principal, payment of dividends and interest, and payment of sale price in the event of the sale of Leo shares to the other shareholders). The put and call transaction is part of the disposals program organized as part of the Impregilo financial restructuring and has been presented to the financing banks, which have expressed a favorable opinion. In order to guarantee the financial neutrality of the deferral of the transaction, it has been agreed with the banks that the contract should also provide for a two-year rescheduling (i.e., to 1 August 2007) of Impregilo debt to Gemina in respect of the loans referred to above; this latter circumstance is expressly envisaged as a condition for the disbursement by the financing banks of the main tranches of the 680 million euro bridging loan in the loan term sheet, which is an attachment to the private agreement signed by Gemina and IGLI S.p.A. on 14 April 2005. In short, in order to prevent the economic effects of the transaction from being influenced by the deferral of transfer to Gemina of Impregilo's indirect holding in Aeroporti di Roma to the date on which one of the parties decides to exercise its option, the contract provides that accrual of interest on the price be aligned with accrual of interest on the loans, and also that income collected by Impregilo on the Equity Investments and Loan Notes be subtracted from the price, since it is to be used to repay a corresponding portion of the loan provided by Gemina on 23 March 2005. The transaction meets Gemina's declared interest in raising its own indirect holding in Aeroporti di Roma. It is also in the interest of Impregilo, which, in connection with its financial restructuring, is in favor of the possibility of disposing of a non-strategic equity investment at a price corresponding to the carrying amount and in line with the price at which far larger interests in the capital of Aeroporti di Roma were recently sold to Macquarie. No adjustments are to be made to the remuneration of the Directors of Gemina and Impregilo and of their subsidiary companies as a consequence of the transaction. CONTACT: IMPREGILO S.p.A. Viale Italia, 1, Sesto San Giovanni 20099 Milan, Italy Phone: +39-02-244-22111 Fax: +39-02-244-22293 Web site: http://www.impregilo.it ===================== N E T H E R L A N D S ===================== LAURUS N.V.: Axing 59 Beilen Center Employees --------------------------------------------- Laurus N.V. is planning to reduce the permanent workforce of 460 FTEs (Full Time Equivalent) at its Beilen distribution center by a total of 59 FTEs between 1 October 2005 and the end of September 2006. The workload on the Beilen distribution center, which has already lessened as a result of the optimization of the logistics network and the closure of unprofitable stores, will decrease still further with the completion of the new West distribution center in mid-2006 and internal process improvements. The measures now being taken are intended to bring current and future staffing levels into line with workload. The trade union organizations will be consulted on the application of the Laurus Total Social Plan and the central workers council has been asked to give its advice. * * * Laurus suffered a net loss of EUR128 million in 2004, a sharp reversal compared with 2003, when the positive net result of EUR9 million marked an -- albeit modest -- return to profitability for the first time in several years. In fighting the price war, which broke out in October 2003 and continued unabated in 2004, Laurus implemented substantial price cuts within all three retail formats, which, combined with the reduced sales volume, had a major negative impact on the result. CONTACT: LAURUS N.V. Parallelweg 64 5201 AD's-Hertogenbosch, The Netherlands Phone: +31-73-622-3622 Fax: +31-73-622-3636 Web site: http://www.laurus.nl ROYAL SHELL: Signs 20-year Contract with Hiroshima Gas ------------------------------------------------------ Royal Dutch/Shell Group's Shell Gas & Power revealed Monday that its joint venture Sakhalin II project has signed a Heads of Agreement for the long-term sales and purchase of up to 0.21 million tons per annum (mtpa) of LNG to Hiroshima Gas Co Ltd. The agreement, for 20 years, is the fifth to be signed with a Japanese company and the first with Hiroshima Gas. Sakhalin Energy and Hiroshima Gas will now continue to finalize the Sales and Purchase Agreement (SPA) with deliveries expected to commence in 2008. 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 ROYAL SHELL: Shell Deutschland Buys 'Extra' Shares -------------------------------------------------- Shell Deutschland Oil GmbH has purchased 25,000 Royal Dutch ordinary shares at a price of EUR47.38 per share to be used to satisfy requirements under employee share plans. Such purchases were effected outside the United States. Royal Dutch and its affiliates have been granted exemptive relief by the Securities and Exchange Commission to make purchases of RD Shares outside the offer that Royal Dutch Shell plc has made for all the outstanding RD Shares in connection with the proposed unification of RD, The "Shell" Transport and Trading Company, p.l.c. and the Royal Dutch/Shell Group of Companies under Royal Dutch Shell plc. Any such purchases of RD Shares will be made outside the United States. Further, any such purchases will comply with applicable Dutch law and the rules of Euronext Amsterdam and will be subject to price limitations based on the market price of RD Shares on Euronext Amsterdam. The number of RD Shares in issue will not be affected by these purchases. 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 =========== N O R W A Y =========== PAN FISH: Concludes Two-year Restructuring ------------------------------------------ Pan Fish A.S.A. finalized its public share issue Friday with significant interest from both existing and new shareholders. The public share issue was subscribed approximately 4 times the offered amount of NOK200 million. The share issue marks the end of the strategic, operational and financial restructuring of the group, which has been in progress over the last two years. The company has now established a financial platform, which constitutes a solid fundament to re-establish Pan Fish as a leading global fish farming company based on lowest cost production of high quality salmon. As a result of the share issue being fully subscribed DnB NOR and Nordea will as previously communicated convert NOK500 million of the company's debt to equity through a private placing. The debt will be converted at NOK1.00 per share equal to the share price in the public offering. Subsequent to this the equity share will be above 35%. The balance sheet is cleared for goodwill and immaterial assets and the licenses have been valued at a low NOK4.5 million each. Chief Executive Atle Eide said: "We are very satisfied with the response from our shareholders. This is an important milestone and a vote of confidence to our focused strategy and not least the fantastic job which has been done by our employees through this difficult period of restructuring. "Pan Fish is through this positioned to carry through the planned increase in production, and to realize the vision of supplying the global market with quality salmon at the lowest cost in the industry. The key to achieve this lie in the strong competence we have in our organization. 2005 will, as communicated in the presentations made through the subscription period, be an intermediate year where the biomass will be increased. Harvesting will be limited as we approach 2006 and 2007 when the company will fully capture the effects of low debt and strongly declining depreciations simultaneously as the lowest cost targets are realized. "The company receives a gross amount of NOK200 million through the public share issue. Allocation of shares will be sent to the subscribers May 30. Settlement for the subscribed shares is expected to take place June 1. Shares issued in the public share issue is expected to be available for trading at Oslo Stock Exchange on June 6. DnB NOR Markets and First Securities have handled the share issue." CONTACT: PAN FISH A.S.A. Maskinveien 32, P.O. Box 342 Forus N-4067 STAVANGER Phone: +47 70 11 61 00 Fax: +47 70 11 61 34 E-mail: post@panfish.no Web site: http://www.panfish.com/ CEO Atle Eide Phone: +47 911 52 977 ============= R O M A N I A ============= COSMOROM SA: Cosmote Acquires Majority Stake -------------------------------------------- Greece's Cosmote is buying 70% of mobile arm Cosmorom S.A. from Romanian fixed-line carrier Romtelecom for EUR120 million (US$150.8 million), according to reports. Cosmote, a subsidiary of Hellenic Telecommunications Organization (OTE), will be financing the re-launch of Cosmorom after the acquisition. Analysts say the revival will cost some EUR500 million (US$633 million). Cosmote plans to either capitalize or write off some of Cosmorom's debt. Excluded will be the EUR16 million (US$20 million) it owes to OTE's unit, OTE International, and up to EUR2 million (US$2.5 million) in third-party liabilities. The deal still needs approval from Cosmote's shareholders. An extraordinary meeting is scheduled for June 27, 2005 OTE, which also owns 54% of Romtelecom, raised the prospect of selling Cosmorom in 2003, a previous report from TCR-Europe revealed. Cosmorom was then operating at a loss, with debt estimated at EUR172 million. Analysts attribute the negative outlook at Cosmorom to insufficient investments in the company, which entered the market too late. Moreover, the company was not benefiting from national coverage of its services, making it unable to compete with Orange and MobiFon. Cosmorom posted net losses at EUR41.9 million and operational income at EUR12.2 million in the first nine months of 2002, as well as an EBITDA loss of EUR21.9 million. Subscribers of Cosmorom were pegged at only around 45,000, and users of prepaid services at 50,000 in September, compared to an estimated 2.5 million customers for each of the company's competitors. CONTACT: COSMOROM S.A. Cosmorom Headquarters 61 Nicolae Caramfil Str Sector 1, Bucharest ROMANIA Phone: (021) 404 1234 E-mail: info@cosmorom.com Web site: http://www.cosmorom.com/ =========== R U S S I A =========== APSALYAMOVSKIY: Undergoes Bankruptcy Supervision Procedure ---------------------------------------------------------- The Arbitration Court of Tatarstan republic has commenced bankruptcy supervision procedure on open joint stock company Apsalyamovskiy Combine Of Building Constructions And Materials (TIN 1642000020). The case is docketed as A65-5679/2005-SG4-16. Mr. A. Minaev has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 420126, Russia, Tatarstan republic, Kazan, Post User Box 188. A hearing will take place on Sept. 20, 2005. CONTACT: APSALYAMOVSKIY COMBINE OF BUILDING CONSTRUCTIONS AND MATERIALS Russia, Tatarstan republic, Yutazinskiy region, Apsalyamovo Mr. A. Minaev Temporary Insolvency Manager 420126, Russia, Tatarstan republic, Kazan, Post User Box 188 The Arbitration Court of Tatarstan republic 420014, Russia, Kazan, Kremlin ATOM-STROY-SERVICE: Smolensk Court Appoints Insolvency Manager -------------------------------------------------------------- The Arbitration Court of Smolensk region commenced bankruptcy proceedings against Atom-Stroy-Service (TIN 6724006784) after finding the limited liability company insolvent and bankruptcy proceedings were introduced at the company. The case is docketed as A62-616-N/04. Mr. S. Prudnikov has been appointed insolvency manager. Creditors have until June 23, 2005 to submit their proofs of claim to 216400, Russia, Smolensk region, Desnogorsk, Post User Box 14/3. CONTACT: ATOM-STROY-SERVICE 216400, Russia, Smolensk region, Desnogorsk, 1st Location, 16, office 151 Mr. S. Prudnikov Insolvency Manager 216400, Russia, Smolensk region, Desnogorsk, Post User Box 14/3 BUZDYAKSKIY: Succumbs to Bankruptcy ----------------------------------- The Arbitration Court of Bashkortostan republic commenced bankruptcy proceedings against Buzdyakskiy (TIN 0216002628) after finding the tinned food factory insolvent. The case is docketed as A07-3063/05-G-HkRM. Mr. V. Perepelkin has been appointed insolvency manager. Creditors have until June 23, 2005 to submit their proofs of claim to 452711, Russia, Bashkortostan republic, Buzdyakskiy region, Buzdyak, Gagarina Str. 45. CONTACT: BUZDYAKSKIY Russia, Bashkortostan republic, Buzdyakskiy region, Buzdyak, Gagarina Str. 45 Mr. V. Perepelkin Insolvency Manager 452711, Russia, Bashkortostan republic, Buzdyakskiy region, Buzdyak, Gagarina Str. 45 DOR-STROY-KOMPLEKT: Declared Insolvent -------------------------------------- The Arbitration Court of Perm region commenced bankruptcy proceedings against Dor-Stroy-Komplekt after finding the close joint stock company insolvent. The case is docketed as A50- 3970/2005-B. Mr. A. Nagovitsyn has been appointed insolvency manager. Creditors may submit their proofs of claim to: (a) DOR-STROY-KOMPLEKT Russia, Perm region, Kungurskiy region, Sylvensk, Sovetskaya Str. 1B (b) Insolvency Manager 614064, Russia, Perm region, Usolskaya Str. 15, 3rd floor (c) The Arbitration Court Of Perm region 614990, Russia, Perm region, Lunacharskogo Str. 3 FENIK-TS: Gives Creditors Until June 23 to File Claims ------------------------------------------------------ The Arbitration Court of Tyumen region commenced bankruptcy proceedings against Fenik-TS after finding the close joint stock company insolvent. The case is docketed as A-70-9821/3-2004. Mr. P. Stolbov has been appointed insolvency manager. Creditors have until June 23, 2005 to submit their proofs of claim to 625026, Russia, Tyumen region, Respubliki Str. 143a. CONTACT: FENIK-TS 625026, Russia, Tyumen region, Respubliki Str. 143a Mr. P. Stolbov Insolvency Manager 625026, Russia, Tyumen region, Respubliki Str. 143a GASOVIK: Bankruptcy Hearing Resumes July ---------------------------------------- The Arbitration Court of Voronezh region has commenced bankruptcy supervision procedure on municipal unitary enterprise Gasovik. The case is docketed as A14-3034-2005 19/20b. Mr. A. Gladkov has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 397702, Russia, Voronezh region, Bobrov, Kotovskogo Str. 2. A hearing will take place on July 28, 2005. CONTACT: GASOVIK Russia, Voronezh region, Bobrov Mr. A. Gladkov Temporary Insolvency Manager 397702, Russia, Voronezh region, Bobrov, Kotovskogo Str. 2 INTERNATIONAL MOSCOW: Long-term Rating Upgraded to 'BB' ------------------------------------------------------- Fitch Ratings upgraded International Moscow Bank's Long-term rating to 'BB' from 'BB-' and resolved the Positive Rating Watch that has been in place since September 2004. The Support rating has been changed to '3' from '4'. IMB's Short-term rating is affirmed at 'B'. The Outlook for the Long-term rating is Stable. Separately, Fitch expects to complete a review of IMB's Individual 'C/D' rating in the coming weeks. The Long-term rating was placed on Positive Rating Watch in September 2004 in anticipation of Bayerische Hypo- und Vereinsbank Bank (HVB) and Nordea Bank Finland PLC (Nordea) increasing their stakes in IMB to a majority stake and a blocking (more than 25%) stake, respectively. At that time, Fitch stated that if these changes in the shareholder structure went ahead, they would likely benefit IMB's Long-term rating. As a result of their participation in the recent US$100 million share issue carried out by IMB, HVB and Nordea's stakes in the bank's common stock have risen to 53.3% (from 43%), and to 26% (from 22%), respectively. The change in IMB's Support, and therefore Long-term, ratings reflects Fitch's view of the increased likelihood of support for IMB, in particular from HVB, which is now the bank's controlling shareholder. Fitch notes that by increasing their stakes in IMB, both HVB and Nordea have demonstrated an increased commitment to the bank. However, Fitch comments that the upgrade of IMB's Long-term rating to 'BB', and not 'BB+' as was originally anticipated when the Positive Watch was assigned in September 2004, reflects the agency's view of HVB's weakened creditworthiness on a standalone basis, as reflected in its Individual rating. HVB's Individual rating was downgraded to 'D' from 'C/D' and its Long-term rating to 'A-' from 'A', in January 2005. IMB was established in October 1989 as Russia's first joint venture bank with foreign participation. IMB's core business is servicing large and medium-sized domestic corporates. The bank has also begun actively lending to smaller companies and developing retail banking operations, and trades securities and foreign exchange. IMB's other two shareholders, in addition to HVB and Nordea, are BCEN-Eurobank (the Paris-based subsidiary of the Russian Central Bank) and the European Bank for Reconstruction and Development, which, after the recent share issue, hold stakes of approximately 15.9% and 4.8%, respectively in the bank's common stock. IMB ranks among the top 10 Russian banks by total assets. CONTACT: FITCH RATINGS Lindsey Liddell, London Phone: +44 20 7417 3495 James Watson, Moscow Phone: +7 095 956 6657 Media Relations: Jon Laycock, London Phone: +44 20 7417 4327 NORD-OIL: Under Bankruptcy Supervision -------------------------------------- The Arbitration Court of Sakha republic (Yakutiya) has commenced bankruptcy supervision procedure on limited liability company Nord-Oil. The case is docketed as A58-1089/2005. Mr. V. Danilov has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 677007, Russia, Sakha republic (Yakutiya), Yakutsk, Lenina Pr. 41, Room 113 CONTACT: NORD-OIL 677000, Russia, Sakha republic (Yakutiya), Yakutsk, Lenina Pr. 41, Room 113 Mr. V. Danilov Temporary Insolvency Manager 677007, Russia, Sakha republic (Yakutiya), Yakutsk, Lenina Pr. 41, Room 113 RAY-PISHE-COMBINE GIAGINSKIY: Declared Insolvent ------------------------------------------------ The Arbitration Court of Adygeya republic commenced bankruptcy proceedings against Ray-Pishe-Combine Giaginskiy after finding the close joint stock company insolvent. The case is docketed as A-01-B-450-2003-11. Mr. R. Mirzov has been appointed insolvency manager. Creditors have until June 23, 2005 to submit their proofs of claim to 385600, Russia, Adygeya republic, Giaginskaya St. Eskadronnaya Str. 95. CONTACT: RAY-PISHE-COMBINE GIAGINSKIY 385600, Russia, Adygeya republic, Giaginskaya St., Eskadronnaya Str. 95 Mr. R. Mirzov Insolvency Manager 385600, Russia, Adygeya republic, Giaginskaya St. Eskadronnaya Str. 95 SPETS-STROY: Proofs of Claim Deadline Expires June 23 ----------------------------------------------------- The Arbitration Court of Omsk region commenced bankruptcy proceedings against Spets-Stroy (TIN 55060347885) after finding the specialized building corporation #1 insolvent. The case is docketed as K/E-49/04. Mr. O. Krat'ko has been appointed insolvency manager. Creditors have until June 23, 2005 to submit their proofs of claim to 644093, Russia, Omsk region, Post User Box. CONTACT: SPETS-STROY 644027, Russia, Omsk region, Industrialnaya Str. 56 Mr. O. Krat'ko Insolvency Manager 644093, Russia, Omsk region, Post User Box YUKOS OIL: Khodorkovsky Acquitted of Forgery -------------------------------------------- Meshchansky court judges on Wednesday acquitted Mikhail Khodorkovsky of forgery, one of the criminal charges filed against the Yukos founder. According to Associated Press, defense lawyer downplayed his acquittal on the minor charge, which is related to a separate charge of tax evasion. Observers believe Mr. Khodorkovsky will be found guilty on charges that include fraud. According to the report, the evidence and testimony against him centers on his and business partner Platon Lebedev's alleged failure to obey a court decision in connection with privatization of major fertilizer component maker. Robert Amsterdam, defense lawyer for Mr. Khodorkovsky, called the process purely arbitrary. According to him, Meshchansky's justice system works in a way that the laws are constantly changed to serve the whim of the controlling power. CONTACT: YUKOS OIL Web site: http://www.yukos.com/ 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 ZLATOPOLINSKOYE: Appoints A. Generalov Insolvency Manager --------------------------------------------------------- The Arbitration Court of Altay region has commenced bankruptcy supervision procedure on open joint stock company Zlatopolinskoye. The case is docketed as A03-1835/05-B. Mr. A. Generalov has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 656015, Russia, Altay region, Barnaul, Post User Box 3923. CONTACT: ZLATOPOLINSKOYE Russia, Altay region, Kulundinskiy region, Zlatopol Mr. A. Generalov Temporary Insolvency Manager 656015, Russia, Altay region, Barnaul, Post User Box 3923 ============= U K R A I N E ============= ART-CAPITAL: Bankruptcy Supervision Starts ------------------------------------------ The Economic Court of Lugansk region commenced bankruptcy supervision procedure on LLC Art-Capital (code EDRPOU 30784585). The case is docketed as 19/50 b. Mr. Tetyana Paterkina (License Number AA 3487835) has been appointed temporary insolvency manager. The company holds account number 26505301763 at OJSC Oshadbank, MFO 300465. CONTACT: Mr. Tetyana Paterkina Temporary Insolvency Manager Ukraine, Lugansk region, Geologichna Str. 14/45 ECONOMIC COURT OF LUGANSK REGION 91000, Ukraine, Lugansk region, Geroiv VVV Square, 3a ARTOR: Lviv Court Opens Bankruptcy Proceedings ---------------------------------------------- The Economic Court of Lviv region commenced bankruptcy proceedings against Artor (code EDRPOU 14354428) on April 1, 2005 after finding the limited liability company insolvent. The case is docketed as 2/1884-21/479. Mr. Igor Bolyak (License Number AA 249553 has been appointed liquidator/insolvency manager. CONTACT: Mr. Igor Bolyak Liquidator/Insolvency Manager Ukraine, Lviv region, Strimka Str. 4/8 ECONOMIC COURT OF LVIV REGION 79010, Ukraine, Lviv region, Lichakivska Str. 81 GELIOS-TRADE: Declared Insolvent -------------------------------- The Economic Court of Kyiv region commenced bankruptcy proceedings against Gelios-Trade (code EDRPOU 32786119) on April 14, 2005 after finding the limited liability company insolvent. The case is docketed as 62/14 b-05. Mr. K. Ivanov has been appointed liquidator/insolvency manager. CONTACT: GELIOS-TRADE Ukraine, Kyiv region, Vishgorodskij district, Stari Petrivtsi, 1 ECONOMIC COURT OF KYIV REGION 01033, Ukraine, Kyiv region, Zhelyanska Str. 58 b GOLDEX: Insolvency Manager Takes over Operations ------------------------------------------------ The Economic Court of Kyiv region commenced bankruptcy proceedings against Goldex (code EDRPOU 32773659) on April 11, 2005 after finding the limited liability company insolvent. The case is docketed as 24/175-b. Mr. F. Kachurov (License Number AB 116187) has been appointed liquidator/insolvency manager. CONTACT: GOLDEX Ukraine, Kyiv region, Yaroslavska Str. 58 Mr. F. Kachurov Liquidator/Insolvency Manager Ukraine, Kyiv region, Melnikov Str. 83-d ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard, 44-B GRAFIT: Court Names O. Klimenko Insolvency Manager -------------------------------------------------- The Economic Court of Zaporizhya region commenced bankruptcy proceedings against Grafit (code EDRPOU 25220866) on March 28, 2005 after finding the limited liability company insolvent. The case is docketed as 2/1884-21/479. Mr. O. Klimenko (License Number AA 783152) has been appointed liquidator/insolvency manager. CONTACT: GRAFIT 69035, Ukraine, Zaporizhya region, Stalevariv Str. 15 Mr. O. Klimenko Liquidator/Insolvency Manager 69002, Ukraine, Zaporizhya region, Lenin Avenue, 77, Office 95 ECONOMIC COURT OF ZAPORIZHYA REGION 69001, Ukraine, Zaporizhya region, Shaumyana Str. 4 INTERCINEMA: Succumbs to Insolvency ----------------------------------- The Economic Court of Kyiv region commenced bankruptcy proceedings against InterCinema (code EDRPOU 32209500) on April 12, 2005 after finding the limited liability company insolvent. The case is docketed as 24/885-b. Mr. V. Pisarenko (License Number AA 485239) has been appointed liquidator/insolvency manager. CONTACT: INTERCINEMA 01011, Ukraine, Kyiv region, Pecherska Square, 1 Mr. V. Pisarenko Liquidator/Insolvency Manager 01033, Ukraine, Kyiv region, Zhilyanska Str. 30/32 ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard, 44-B INTERTECHBUD: Hires F. Kachurov as Insolvency Manager ----------------------------------------------------- The Economic Court of Kyiv region commenced bankruptcy proceedings against Intertechbud (code EDRPOU 32454578) on April 11, 2005 after finding the limited liability company insolvent. The case is docketed as 24/167-b. Mr. F. Kachurov (License Number AB 116187) has been appointed liquidator/insolvency manager. CONTACT: INTERTECHBUD Ukraine, Kyiv region, Borichiv Tik Str. 35 Mr. F. Kachurov Liquidator/Insolvency Manager Ukraine, Kyiv region, Melnikov Str. 83-d ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard, 44-B KIVERTSIVSKIJ WOOD: Liquidator Takes over Operations ---------------------------------------------------- The Economic Court of Volinska region commenced bankruptcy proceedings against Kivertsivskij Wood Processing Combine after finding the limited liability company insolvent. The case is docketed as 1/147-B. Mr. A. Lipich (License Number AA 719766) has been appointed liquidator/insolvency manager. CONTACT: Mr. A. Lipich Liquidator/Insolvency Manager 43018, Ukraine, Volinska region, Lutsk, a/b 7 ECONOMIC COURT OF VOLINSKA REGION 43010, Ukraine, Volinska region, Lutsk, Voli Avenue, 54-a MARIUPOL' FISH-TIN: Donetsk Court Declares Firm Insolvent --------------------------------------------------------- The Economic Court of Donetsk region commenced bankruptcy proceedings against Mariupol' Fish-Tin Combine (code EDRPOU 05783774) on April 11, 2005 after finding the open joint stock company insolvent. The case is docketed as 42/205 B. Mr. S. Brustinov (License Number AA 485232) has been appointed liquidator/insolvency manager. The company holds account number 2600498044 at Ukrsocbank, Mariupol branch, MFO 334185. CONTACT: MARIUPOL' FISH-TIN COMBINE 87500, Ukraine, Donetsk region, Mariupol, Konservna Str. 1 ECONOMIC COURT OF DONETSK REGION 83048, Ukraine, Donetsk region, Artema Str. 157 MAXIMUM: Harkiv Court Opens Bankruptcy Proceedings -------------------------------------------------- The Economic Court of Harkiv region commenced bankruptcy proceedings against Maximum (code EDRPOU 32471842) on April 18, 2005 after finding the limited liability company insolvent. The case is docketed as B-48/50-05. Mr. D. Chizh (License Number AB 116046) has been appointed liquidator/insolvency manager. The company holds account number 265073014740 at JSCB Zoloti Vorota, Harkiv branch, MFO 351931. CONTACT: MAXIMUM Ukraine, Harkiv region, Manchenki ECONOMIC COURT OF HARKIV REGION 61022, Ukraine, Harkiv region, Svobodi Square, 5, Derzhprom, 8th entrance PIVDENNO-ZAHIDNE AUTO: Insolvency Manager Enters Firm ----------------------------------------------------- The Economic Court of Lugansk region commenced bankruptcy proceedings against Pivdenno-Zahidne Auto Transport Enterprise (code EDRPOU 24850163) on February 15, 2005 after finding the limited liability company insolvent. The case is docketed as 20/36 b. Mr. Oleksandr Pavlenko (License Number AA 250356) has been appointed liquidator/insolvency manager. CONTACT: PIVDENNO-ZAHIDNE AUTO TRANSPORT ENTERPRISE 94500, Ukraine, Lugansk region, Krasnij Luch, Hrustalne Shose Str. Mr. Oleksandr Pavlenko Liquidator/Insolvency Manager 91000, Ukraine, Lugansk region, Artema Str. 447/9 ECONOMIC COURT OF LUGANSK REGION 91000, Ukraine, Lugansk region, Geroiv VVV Square, 3a PLEMZAVOD KOLOS: Under Bankruptcy Supervision --------------------------------------------- The Economic Court of Kyiv region commenced bankruptcy supervision procedure on OJSC Plemzavod Kolos (code EDRPOU 00846369). The case is docketed as 17/2 b-2004. Mr. Yurij Krizhanivskij (License Number AB 116196) has been appointed temporary insolvency manager. The company holds account number 26001947 at JSPPB Aval, Borispil branch, MFO 321789. CONTACT: PLEMZAVOD KOLOS Ukraine, Kyiv region, Pereyaslav-Hmelnitskij district, Ulyanivka, Radyanska Str. 27 Mr. Yurij Krizhanivskij Temporary Insolvency Manager 08132, Ukraine, Kyiv region, Vishneve, Svyatoshinske, 46 ECONOMIC COURT OF KYIV REGION 01033, Ukraine, Kyiv region, Zhelyanska Str. 58 b TV-RADIO OBRIJ: Court Suspends Debt Payments -------------------------------------------- The Economic Court of Kyiv region commenced bankruptcy proceedings against TV-Radio Company Obrij (code EDRPOU 32773643) on April 11, 2005 after finding the limited liability company insolvent and ordered a moratorium on satisfaction of creditors' claims. The case is docketed as 24/168-b. Mr. F. Kachurov (License Number AB 116187) has been appointed liquidator/insolvency manager. CONTACT: TV-RADIO COMPANY OBRIJ Ukraine, Kyiv region, Yaroslavska Str. 58 Mr. F. Kachurov Liquidator/Insolvency Manager Ukraine, Kyiv region, Melnikov Str. 83-d ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard, 44-B UKRZAHIDINVEST: Declared Insolvent ---------------------------------- The Economic Court of Lviv region commenced bankruptcy proceedings against Ukrzahidinvest (code EDRPOU 31674178) on March 14, 2005 after finding the limited liability company insolvent. The case is docketed as 6/40-29/28. Mr. Mihajluk Rostislav (License Number AA 783035) has been appointed liquidator/insolvency manager. The company holds account numbers 26000000391001 at OJSC CB Nadra, Lviv branch, MFO 325978; 26009016189980 at Finances and Credit, Lviv regional branch, MFO 325923; and 260057412 at JSPPB Aval, Lviv regional branch, MFO 325570. CONTACT: UKRZAHIDINVEST 79053, Ukraine, Lviv region, Volodimir Velikij Str. 16 Mr. Mihajluk Rostislav, Liquidator/Insolvency Manager 79014, Ukraine, Lviv region, Kozlanyuk Str. 2/7 ECONOMIC COURT OF LVIV REGION 79010, Ukraine, Lviv region, Lichakivska Str. 81 =========================== U N I T E D K I N G D O M =========================== ALLIED DOMECQ: DkW Points out Pitfalls in Constellation Offer ------------------------------------------------------------- A bid by U.S. winemaker Constellation Brands Inc. for Allied Domecq might fail due to weakness in the market for "junk debt," analysts at Dresdner Kleinwort Wasserstein say. Matthew Jordan thinks the approach "is extremely sensitive to the terms on which they can gain debt financing" after the downgrade of General Motors, according to The Telegraph. He said would-be buyers might be able to haggle good terms depending on the strength of demand. But he warned of the impact of the interest rate they'll be paying on the amount of debt they could take. He also warned of difficulties in negotiating with Allied Domecq's pension trustees, who had been promised a GBP108 million injection under Pernod Ricard's agreed offer. The scheme has a GBP437 million deficit. DkW said in a research note the trustees might decide to transfer fund out of equities into bonds, increasing the deficit due to a lower return in such form. Pernod's 670p agreed offer, which translates to GBP7.4 billion, is partly in shares. Constellation's indicative offer is about 700p a share. It is backed by private equity firms Lion Capital and Blackstone. Allied Domecq's sale has prompted Fitch Ratings to downgrade its senior unsecured and short-term ratings to 'BB+' and 'B' from 'BBB' and 'F2'respectively. Fitch said: "[The] non-investment grade rating assumes that Allied's bondholders totaling EUR2.5 billion have been subordinated by Pernod Ricard's new EUR9 billion bank acquisition facility, which will have taken security over the group's brands." The ratings are on Watch Negative pending successful completion of the deal. CONTACT: ALLIED DOMECQ PLC The Pavilions Bridgwater Road Bedminster Down BRISTOL BS13 8AR United Kingdom Phone: +44 (0)117 978 5000 Fax: +44 (0)117 978 5291 Web site: http://www.allieddomecq.com CNS SUBSEA: Names KPMG Administrators ------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF CNS Subsea Limited Notice is hereby given that on May 11, 2005, we, Blair C. Nimmo and Neil A. Armour, KPMG, 37 Albyn Place, Aberdeen AB10 1JB were appointed liquidator of CNS Subsea Limited by notice of appointment lodged in the Court of Session, Edinburgh, pursuant to section 109 of the Insolvency Act 1986. Blair C. Nimmo and Neil A. Armour, Administrators CONTACT: KPMG LLP 37 Albyn Place Aberdeen AB10 1JB Phone: (01224) 591000 Fax: (01224) 590909 Web site: http://www.kpmg.co.uk CREWE BUILDING: Winding-up Report Out Next Month ------------------------------------------------ IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Crewe Building Services Limited (In Liquidation) Notice is hereby given, pursuant to section 106 of the Insolvency Act 1986, that the Final Meeting of Members and Creditors of Crewe Building Services Limited will held on July 5, 2005, 10:00 a.m. within the offices of Cowan & Partners, 60 Constitution Street, Leith, Edinburgh EH6 6RR, for the purpose of receiving the Liquidator's final report showing how the winding-up has been conducted and of hearing any explanations that may be given by the Liquidator. All Creditors are entitled to attend in person or by proxy, and a Resolution will be passed when the majority of those voting have voted in favor of it. Creditors may vote where claims and proxies have been submitted and accepted at the Meeting or lodged beforehand at the office below. David Forbes Rutherford, Liquidator CONTACT: COWAN & PARTNERS 60 Constitution Street Edinburgh EH6 6RR Phone: 0131 554 0724 Fax: 0131 553 2267 E-mail: mail@cowanandpartners.co.uk David Forbes Rutherford E-mail: david.rutherford@cowanandpartners.co.uk DAWSON INTERNATIONAL: Chairman Receives Bonus Despite Crisis ------------------------------------------------------------ Dawson International executive chairman Mike Hartley received performance related bonus of GBP200,000 last year despite it not being a favorable time for the cashmere firm. Mr. Hartley, who was appointed August 2003, received a total of GBP450,000, including a basic salary of GBP250,000 for the year ended January 1, the company's annual report showed. The report also revealed finance director David Copper receiving remuneration of GBP147,000, up from last year's GBP102,000. The amount included a bonus of GBP45,000. For the period, Dawson had loss of GBP2 million, down from GBP19.1 million the previous year. Turnover increased from GBP68.3 million to GBP70.2 million. Dawson's pension deficit potentially could blow up to GBP29.3 million under the new FRS 17 reporting standards. The gap increased slightly during the year due to falling bond rates on the measurement of liabilities. Dawson plans to ask shareholders next month to amend board's borrowing powers to deal with the pension deficit. Mr. Hartley was unavailable for comment, according to the report. Dawson moved to London's main market to AIM after the sale of its flagship Ballantyne knitwear business and the Joseph Dawson fibers operation. In a new twist to its strategy, it acquired in January bed linen company Dorma to expand its business while paying off a GBP10 million debt burden. Dorma lost GBP3.6 million last year, but Mr. Hartley is confident the firm will return to profit next year. Its recent GBP70 million annual revenue is hoped to help Dawson trim down liabilities. CONTACT: DAWSON INTERNATIONAL PLC Lochleven Mills Kinross KY13 8GL, United Kingdom Phone: +44-1577-867000 Fax: +44-1577-867010 Web site: http://www.dawson-international.co.uk EMI GROUP: Pre-tax Profit Lower, but in Line with Forecast ---------------------------------------------------------- Highlights: (a) EMI Group turnover declined by 5.1% at constant currency, with EMI Music Publishing turnover increasing by 4.9% and EMI Music turnover declining by 7.4%; (b) EMI Group's digital sales more than tripled to GBP49.7 million, representing 2.5% of total Group turnover for the year and 3.5% in the final quarter; (c) group operating margin increased to 12.0% from 11.8%; (d) EMI Music's previously announced restructuring initiatives delivered cost savings of GBP35 million in the year, GBP10 million ahead of plan, with a further GBP15 million of savings expected in the current year; (e) Group Profit before tax, amortization and exceptional items (Adjusted PBT) was GBP141.9 million, in line with the 15 April trading update, and compares to GBP163.3 million in the prior year; (f) adjusted diluted EPS of 13.0p compared to 15.5p in the prior year; (g) full-year dividend maintained at 8.0p per share; and (h) EMI maintains its positive outlook on the global recorded music market as declines in physical music sales continued to moderate during the year and digital music sales grew at a very rapid pace. Eric Nicoli, Chairman of EMI Group, said: "In a still challenging trading environment we have seen some encouraging market trends and have made strategic progress in the past year. EMI Music Publishing achieved strong growth in both sales and profits. EMI Music's sales fell short of our original expectations due, in part, to lower than anticipated reorders in the fourth quarter and the rescheduling of two major album releases. The impact on the overall results for the Group was partially mitigated by the successful implementation of our restructuring program at EMI Music, which delivered cost savings ahead of plan. We remain positive on the outlook for the music industry and expect to deliver an improved performance in the year ahead. EMI Group Operating Overview Industry "Global music market conditions continued to improve during the year. A key driver has been the very rapid growth in legitimate digital music. For the year, digital music represented more than two percent of the global music market as compared to last year when sales had just started to take off. We remain confident that digital music will drive the industry forward at attractive growth rates in the coming years and that it will become a significantly larger proportion of our business. "We are also encouraged by trends in global physical music sales, where declines continued to moderate. During the year we saw a considerable improvement in Continental Europe, one of the most challenging regions in recent years. While we still saw a decline in value year-on-year, the magnitude of decline has significantly reduced, particularly in the key German and French markets. We also saw a notable improvement in the Japanese and Latin American markets. The North American market softened during the year, particularly during our second half. EMI Music "EMI Music's performance for the financial year was impacted by lower than anticipated reorders in the fourth quarter and the rescheduling of two major albums into the current financial year. "During the year, we successfully completed our announced restructuring initiatives at EMI Music, including the outsourcing of manufacturing in the United States and Europe and the restructuring of some of our labels in particular in Continental Europe. These initiatives delivered combined costs savings of GBP35 million in the year, GBP10 million ahead of plan. The remaining GBP15 million of annualized savings are expected to be realized in the current financial year, bringing the total annualized cost savings to GBP50 million. We continue to be focused on improving our overall efficiency through efforts targeted at procurement and marketing effectiveness together with our IT change program. "EMI Music has continued to invest in artist development, the core of our business, and has a strong track record of developing artists who have success on a multiple-album basis. Top sellers in the year included albums from Robbie Williams, Tina Turner, Norah Jones, Beastie Boys, Blue, Kylie Minogue, Lenny Kravitz, Chingy and Moby. During the year, EMI Music continued to build upon the initial success of newer superstars, Joss Stone, Keith Urban and Yellowcard. We are continually strengthening our active roster of global superstars, which numbers nearly 50 artists. "EMI Music is aggressively pursuing the digital market. During the year, we have worked hard to put in place the right digital partnerships globally to ensure that, as an owner of digital content, we maximize this opportunity. Outlook "EMI Group is a music-content company. We are focused on building shareholder value by developing the best musical content at EMI Music and EMI Music Publishing and fully exploiting this unique content on a global basis through all viable and economically attractive channels. New formats, uses, outlets and channels for our music content, particularly those related to digital music, are providing real growth to our markets. We continue to invest in a structured manner to yield the greatest value from our music content and the new opportunities brought about by digital. "Looking to the year ahead, we remain positive on the outlook for the music industry and expect to deliver an improved performance. EMI Music's portfolio of releases should drive market share gain and increased profitability. The positive momentum at EMI Music Publishing should continue. Both businesses will benefit from improving long-term recorded music market trends, driven by continued strong growth in digital music. Financial review Turnover "Reported Group turnover fell by 8.4% or GBP177.9 million to GBP1,942.8 million. The decline, excluding exchange movement, was 5.1% or GBP107.1 million. The adverse exchange movement was largely driven by a decline in the weighted average rate of the U.S. Dollar against Sterling from US$1.70 last year to US$1.85 in 2004/05. "At constant currency, turnover in EMI Music fell by 7.4%, declining in all regions apart from Latin America. The disappointing level of reorders for second-half releases and the slippage of two major albums out of the financial year was partially offset by stronger catalogue sales. "At constant currency, turnover in EMI Music Publishing was up on the prior year in all geographic regions and by 4.9% at a divisional level. The increase in turnover was driven by strong growth in performance, synchronization and other revenues. Mechanical revenues were below the prior year, driven by the decline in the global recorded music market. "Group digital sales increased to GBP49.7 million from GBP15.1 million in the prior year, an increase of 329% at constant currency. Digital sales represented 2.5% of total Group turnover for the year, with the percentage increasing sequentially during the year from 2.2% in the first quarter to 3.5% in the fourth quarter. Costs "During the course of the year, all costs were tightly controlled. Administration expenses were reduced by GBP31.6 million and gross margin, after distribution costs, improved from 35.3% to 35.7%. "Royalty and copyright costs, manufacturing and distribution costs together with marketing and promotion costs are all largely variable with turnover. They have, therefore, declined in absolute terms but, as a result of greater efficiencies, there has been a relative improvement particularly in marketing and promotion costs. Group corporate costs were higher in the year due to increased legal and regulatory costs. "The cost structure was improved over the year by the outsourcing of manufacturing in the United States and Europe and the restructuring of some of our record labels, particularly in Continental Europe. These initiatives delivered savings of GBP35 million in the year and are expected to deliver further savings of GBP15 million in the current financial year, bringing the total annualized cost savings to GBP50 million. Operating Profit "Group operating profit (EBITA) declined by GBP16.4 million or 6.6% from GBP249.3 million to GBP 232.9 million. Excluding exchange the decline in EBITA was GBP8.7 million or 3.5%. "EMI Music reported EBITA of GBP132.7 million, a decline of GBP11.8 million or 8.0% at constant currency on the prior year. The EBITA contribution from the Continental Europe region increased significantly in the year but this improvement was more than offset by declines in North America and Asia. Operating margin remained constant at 8.6%, further evidence of the Group's determination not to chase unprofitable sales and its ability to control costs. "EMI Music Publishing reported EBITA of GBP100.2 million, a growth of 3.0% at constant currency on the prior year. Operating margin declined from 25.6% to 25.0%. This decline in margin was primarily attributable to an increase in allocated corporate costs. "Group operating margin increased again from 11.8% to 12.0%. EMI Music Operating Review Market Overview "EMI Music continues to operate in a marketplace that is undergoing significant change, primarily driven by the rapid development of digital music. Market trends during the financial year lead us to remain positive on the outlook for the global recorded music market and optimistic about the opportunities digital will continue to bring. "The global recorded music market, combining physical and digital music sales, declined by only an estimated 1.0% during the year, a significant improvement on the 5.6% decline reported in the prior year. "While market conditions remain mixed by region, we have seen improving trends in physical music sales year-on-year in nearly all regions. Most encouraging has been the improvement seen in Continental Europe, particularly in the second half of the financial year. This improvement has been driven by a significant reduction in the rate of decline in the key German and French markets. We also saw a notable improvement in the Japanese and Latin American markets. The North American market softened during the year, particularly during our second half. "Music video continued to be a growing segment of the global physical industry, up 6.3% on the prior year. We see increasing market opportunities for higher value-added physical music product that delivers increased music content to consumers and we are working on the development and introduction of new formats and products, for example DualDisc. "EMI Music delivered digital sales of GBP35.6 million for the financial year, an increase of more than 300% on the prior year with digital sales now representing 2.2% of total revenues. Performance Review "Despite this improved market backdrop, EMI Music had a challenging year because of, in part, the changes to the release schedule and the lower than anticipated re-orders in the fourth quarter. This resulted in a disappointing second half performance, with the portfolio underperforming both our own expectations and the global music market. For the year, EMI Music sales declined by 7.4% at constant currency and market share fell to 12.9% from 13.5% in the prior year. Prior year global market share has been restated to reflect exchange rate movements. "In particular, the change of release dates of two major albums, X&Y from Coldplay and Demon Days from Gorillaz, from the last financial year to the current financial year, had a significant impact on the results. While we tightly manage the release schedule, recording music is a creative process and there can be instances where changes to the release schedule may adversely affect results for a specific financial reporting period. Both albums will be released in the first quarter of the current financial year and are expected to be major sellers. "We also saw our major second-half releases underperforming, with reorder levels being lower than anticipated in the fourth quarter. We are confident that this is not a reflection of the broader portfolio and we have seen our more recent releases performing well including albums from Moby, Chemical Brothers, Faith Evans and Athlete. "The year had some notable successes. Robbie Williams' Greatest Hits was the best-selling album during the financial year, achieving sales of over 6 million units. This album was hugely successful on a global basis and was number one in 18 countries. It was the industry's sixth best-selling album worldwide during 2004. In February 2005, Robbie Williams received the British music industry's award for the best song of the past quarter century for Angels. Robbie Williams is now recording his next album, which is planned for release in the current financial year. "In 2004, Joss Stone developed into a global superstar. Her latest album, Mind, Body & Soul, has sold 2.8 million units since its release in August and her first album, The Soul Sessions, also continued to sell well throughout the year. Joss Stone's enormous talent was further recognized when she received BRIT awards for British Female Solo Artist and British Urban Act. "Norah Jones's albums, Feels Like Home and Come Away with Me, both released in prior financial years, together sold nearly 4 million units during the year. "The Now compilations enjoyed success both in the U.S. (where Now 17 sold 3.5 million units) and in the U.K. and Europe (where three Now albums each sold more than 1 million units). "As a music-content company, artist and repertoire (A&R) is core to our business and is a key focus for us. Our strategy has been, and continues to be, the development of long-term career artists who will enjoy success on a multiple-album basis. During the year, we built upon the initial success of new superstars, Joss Stone, Keith Urban and Yellowcard, all of whom we believe will have long, productive and successful careers. Through breaking new artists, we are continually strengthening our active roster of global superstars, which now amounts to nearly 50 artists including Robbie Williams, Coldplay, Norah Jones, Kylie Minogue, Moby, Lenny Kravitz, Daft Punk, Gorillaz, Beastie Boys, Paul McCartney, the Rolling Stones, Tina Turner and Hikaru Utada. "During the year, we continued to focus on superior catalogue marketing, maximizing the revenues of our exceptional catalogue of recordings. Dino: The Essential Dean Martin, which sold 1 million units during the year, is a good example of our ability to repackage prior recordings into new, compelling works. Other top-selling catalogue albums were The Beatles' 1 and The Beach Boys' The Sounds of Summer." A copy of these results is available free of charge at http://bankrupt.com/misc/EMIgroup(Q12005).mht CONTACT: EMI GROUP PLC 27 Wrights Ln. London W8 5SW, United Kingdom Phone: +44-20-7795-7000 Fax: +44-20-7795-7296 Web site: http://www.emigroup.com EXPRESS FREIGHT: Calls in Liquidator from Sanderlings ----------------------------------------------------- At the extraordinary general meeting of Express Freight International Limited on May 12, 2005 held at Holiday Inn Colchester, Abbotts Lane, Eight Ash Green, Colchester CO6 3QL, the extraordinary resolutions to wind up the company were passed. Andrew Fender of Sanderlings LLP, Sanderling House, 1071 Warwick Road, Acocks Green, Birmingham B27 6QT has been nominated liquidator of the company. CONTACT: SANDERLINGS LLP Sanderling House, 1071 Warwick Road, Acocks Green, Birmingham B27 6QT EZEE TOOL: Names Parkin S. Booth & Co. Liquidator ------------------------------------------------- At the extraordinary general meeting of Ezee Tool Hire Limited on May 25, 2005 held at the offices of Parkin S. Booth & Co, 44 Old Hall Street, Liverpool L3 9EB, the extraordinary and ordinary resolutions to wind up the company were passed. Ian C. Brown of Parkin S. Booth & Co, 44 Old Hall Street, Liverpool L3 9EB has been appointed liquidator of the company. CONTACT: PARKIN S. BOOTH & CO. 44 Old Hall Street, Liverpool L3 9EB Phone: 0151 236 4331 Fax: 0151 255 0108 E-mail: lp@parkinsbooth.co.uk Web site: http://www.parkinsbooth.co.uk FOCUS ON FOOD: Deadline for Debt Claims July -------------------------------------------- At the extraordinary general meeting of the members of Focus On Food Limited on May 17, 2005 held at New House Suite 24, 67-68 Hatton Garden, London EC1N 8JY, the extraordinary resolution to wind up the company was passed. William Antony Batty of Antony Batty & Company, of New House, Suite 24, 67-68 Hatton Garden, London EC1N 8JY has been appointed liquidator of the company. Creditors are required to send in their full names and addresses, full particulars of their debt or claims, and the names and addresses of their Solicitors (if any), to William Antony Batty of Antony Batty & Company, of New House, Suite 24, 67-68 Hatton Garden, London EC1N 8JY on or before July 31, 2005. CONTACT: ANTONY BATTY & COMPANY New House Suite 24 67-68 Hatton Garden London EC1N 8JY Phone: 020 7831 1234 Fax: 020 7430 2727 E-mail: antonybatty@hotmail.com FOUR DOWN: Calls in Liquidators ------------------------------- At the extraordinary general meeting of the members of Four Down Limited on May 19, 2005 held at the offices of Jacksons Jolliffe Cork, Lowgate House, Lowgate, Hull HU1 1EL, the extraordinary and ordinary resolutions to wind up the company were passed. Matthew Colin Bowker and David Antony Willis of Jacksons Jolliffe Cork, Lowgate House, Lowgate, Hull HU1 1EL have been appointed joint liquidators of the company. Creditors are required to send their names and addresses and particulars of their claims to Matthew Colin Bowker and David Antony Willis of Jacksons Jolliffe Cork, Lowgate House, Lowgate, Hull HU1 1EL on or before June 19, 2005. CONTACT: JACKSON JOLLIFFE CORK Lowgate House, Lowgate, Hull HU1 1EL Web site: http://www.jjcork.co.uk GCC INTERNATIONAL: Members Pass Winding-up Resolution ----------------------------------------------------- At the extraordinary general meeting of the members of GCC International Limited on May 9, 2005 held at Stanton House, 41 Blackfriars Road, Salford, Manchester M3 7DB, the extraordinary resolution to wind up the company was passed. Alex Kachani of Crawfords, Station House, 41 Blackfriars Road, Salford, Manchester M3 7DB has been nominated liquidator of the company. CONTACT: CRAWFORDS Stanton House 41 Blackfriars Road Salford Manchester Greater Manchester M3 7DB Phone: 0161 828 1000 Fax: 0161 832 1829 E-mail: akachani@aol.com G & G PUGH: Appoints Barringtons Liquidator ------------------------------------------- At the extraordinary general meeting of G & G Pugh Limited on May 19, 2005 held at Barringtons Limited, Richmond House, 570- 572 Etruria Road, Basford, Newcastle under Lyme, Staffordshire ST5 0SU, the extraordinary and ordinary resolutions to wind up the company were passed. Philip Barrington Wood of Barringtons Limited, Richmond House, 570-572 Etruria Road, Basford, Newcastle Under Lyme, Staffordshire ST5 0SU has been appointed liquidator of the company. CONTACT: BARRINGTONS Richmond House 570-572 Etruria Road Basford Newcastle Under Lyme Staffordshire ST5 0SU Phone: 01782 713700 Fax: 01782 713379 E-mail: pbw@barraccount.co.uk HERITAGE FINANCIAL: Appoints Tomlinson Liquidator ------------------------------------------------- At the extraordinary general meeting of Heritage Financial Services Limited on May 17, 2005 held at 1 Heritage Court, Lower Bridge Street, Chester CH1 1RD, the resolutions to wind up the company were passed. Alan H. Tomlinson of Tomlinsons, St John's Court, 72 Gartside Street, Manchester M3 3EL has been appointed liquidator of the company. CONTACT: TOMLINSONS St John's Court, 72 Gartside Street, Manchester M3 3EL Phone: 0870 60 70 170 Fax: 0870 60 70 180 E-mail: advice@tomlinsons.co.uk Web site: http://www.tomlinsons.co.uk JOHN RICH: Hires Liquidator from Critchleys ------------------------------------------- At the extraordinary general meeting of John Rich Fabrications Limited on May 19, 2005 held at Larkings Accountants, 31 St Georges Place, Canterbury, Kent CT1 1XD, the extraordinary and ordinary resolutions to wind up the company were passed. Anthony John Harris of Critchleys, Greyfriars Court, Paradise Square, Oxford OX1 1BE has been appointed liquidator of the company. CONTACT: CRITCHLEYS Greyfriars Court, Paradise Square, Oxford OX1 1BE Phone: +44 (0) 1865 261100 Fax: +44 (0) 1865 261201 E-mail: Oxford@critchleys.co.uk Web site: http://www.critchleys.co.uk J P BIRMINGHAM: Appoints Butcher Woods Liquidator ------------------------------------------------- At the extraordinary general meeting of J P Birmingham Limited (t/a The James Brindley) on May 18, 2005 held at Butcher Woods, 79 Caroline Street, Birmingham B3 1UP, the extraordinary and ordinary resolutions to wind up the company were passed. Roderick Graham Butcher of Butcher Woods, 79 Caroline Street, Birmingham B3 1UP has been appointed liquidator of the company. CONTACT: BUTCHER WOODS 79 Caroline Street, Birmingham B3 1UP J S MOULDINGS: Calls in Liquidator ---------------------------------- At the extraordinary general meeting of J S Mouldings International Limited on May 19, 2005 held at Customs House, 9- 10 Hampshire Terrace, Portsmouth PO1 2QF, the extraordinary resolution to wind up the company was passed. Phillip Anthony Roberts of 9-10 Hampshire Terrace, Portsmouth PO1 2QF has been appointed liquidator of the company. CONTACT: Phillip Anthony Roberts 9-10 Hampshire Terrace, Portsmouth PO1 2QF JUBILEE COURT: Gives Creditors Until July to File Claims -------------------------------------------------------- At the extraordinary general meeting of the members of Jubilee Court Hotel Management Ltd. on May 20, 2005 held at 68 Lombard Street, London EC3V 8LP, the extraordinary and ordinary resolutions to wind up the company were passed. Richard Andrew Segal and Paul Michael Davis of Begbies Traynor (South) LLP, 32 Cornhill, London EC3V 3BT have been appointed joint liquidators of the company. Creditors are required to send their names and addresses and particulars of their debt or claims and the names and addresses of the Solicitors (if any), to Richard Andrew Segal and Paul Michael Davis of Begbies Traynor, 32 Cornhill, London EC3V 3BT on or before July 4, 2005. CONTACT: BEGBIES TRAYNOR (SOUTH) LLP 32 Cornhill, London EC3V 3BT Phone: 020 7398 3800 Fax: 020 7398 3799 Web site: http://www.begbies.com KELITH LIMITED: Creditors Meeting Tomorrow ------------------------------------------ IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Kelith Limited Notice is hereby given, pursuant to Section 98 of the Insolvency Act 1986, that a Meeting of the Creditors of Kelith Limited will be held within Cowan & Partners CA, 60 Constitution Street, Leith on June 2, 2005 at 11:00 a.m. for the purposes mentioned in Sections 99, 100 and 101 of the said Act. A list of the names and addresses of the Company's Creditors may be inspected, free of charge, at the offices of Cowan & Partners, 60 Constitution Street, Leith, Edinburgh two days prior to the meeting. By Order of the Board, Iain Mathieson, Director May 20, 2005 CONTACT: COWAN & PARTNERS 60 Constitution Street Edinburgh EH6 6RR Phone: 0131 554 0724 Fax: 0131 553 2267 E-mail: mail@cowanandpartners.co.uk MESH BROADBAND: Members Hire Liquidator from B & C Associates ------------------------------------------------------------- At the extraordinary general meeting of the members of Mesh Broadband Limited on May 20, 2005 held at Trafalgar House, Grenville Place, London NW7 3SA, the extraordinary resolution to wind up the company was passed. Jeffrey Mark Brenner of B & C Associates, Trafalgar House, Grenville Place, Mill Hill, London NW7 3SA has been appointed liquidator of the company. CONTACT: B & C ASSOCIATES Trafalgar House Grenville Place Mill Hill London NW7 3SA Phone: 0208 906 7730 Fax: 0208 906 7731 MG ROVER: PwC Bares Commercial Secrets to Prospective Bidders ------------------------------------------------------------- Potential buyers of MG Rover assets were reportedly given access to previously confidential information about the carmaker, said The Scotsman Sunday. Among these commercial secrets held by administrators PricewaterhouseCoopers were the comprehensive engineering and production costs for MG and Rover cars. Citing an MG insider, Financial Sunday Express said prospective bidders were allowed to view the data to prove the company's healthy business plan. Last month, PwC asked potential buyers to provide proof of funds for their bids. Interest in the business has been narrowed down to three potentially viable proposals, which are now being explored in detail. Meanwhile, sale talks over the rest of the business and assets are ongoing with two interested parties. Companies eyeing the MG sports car business reportedly include engineering consultancy Chapman Automotive and a consortium led by Powertrain Limited's former boss. The company collapsed on April 8 after a tie-up with the Shanghai Automotive Industry Corporation (SAIC) failed to materialize, leaving more than 5,000 workers jobless. Last week it rehired over 400 former workers, while 800 are under training. MG Rover has reportedly provided companies emergency grants worth GBP2 million to temporarily retain more than 2,000 employees. CONTACT: MG ROVER GROUP LIMITED Longbridge, Bickenhill Birmingham B31 2TB, United Kingdom Phone: +44-121-475-2101 Fax: +44-121-482-2403 Web site: http://www1.mg-rover.com MTM PRINT: Members Decide to Call in Liquidators ------------------------------------------------ At the extraordinary general meeting of the members of MTM Print Limited on May 19, 2005 held at New House, Suite 24, 67-68 Hatton Garden, London EC1N 8JY, the extraordinary resolution to wind up the company was passed. William Antony Batty of Antony Batty & Company of New House, Suite 24, 67-68 Hatton Garden, London EC1N 8JY has been appointed liquidator of the company. Creditors are required to send in their full names and addresses, full particulars of their debt or claims, and the names and addresses of their Solicitors (if any) to William Antony Batty of Antony Batty & Company of New House, Suite 24, 67-68 Hatton Garden, London EC1N 8JY on or before June 24, 2005. CONTACT: ANTONY BATTY & COMPANY New House Suite 24 67-68 Hatton Garden London EC1N 8JY Phone: 020 7831 1234 Fax: 020 7430 2727 E-mail: antonybatty@hotmail.com MYTRAVEL GROUP: Hires Ambergreen to Market Online Brands -------------------------------------------------------- MyTravel Group plc has signed a 12-month contract with Ambergreen Internet Marketing Ltd., as it targets a bigger slice of the market for its 25 online brands. Ambergreen is an Internet marketing consultancy based in Edinburgh that specializes in increasing qualified traffic to Web sites, and improving search engine rankings through customized search engine optimization solutions. According to The Scotsman Tuesday, the travel agency also aims at responding to customers' increased preference towards online booking for holiday travels. The move follows similar agreements with high-profile companies including Mercedes, Hamleys and Boots. Ambergreen founder and managing director Tino Nombre said: "Even if you don't book your holiday online, it is likely that you will research your holiday online. This means there is a massive market that a company like MyTravel can attract to its various sites and then work to convert to customers." With Ambergreen's aid, MyTravel's broad range of brands will be more accessible to appropriate audience through search engines like Google and Yahoo. The agency will also be updated on its promotional campaign's "return on investment" as payments per click will be monitored and eventually, translated into sales. CONTACT: MYTRAVEL GROUP PLC Parkway One, Parkway Business Centre, 300 Princess Rd. Manchester M14 7QU, United Kingdom Phone: +44-161-23-20-066 Fax: +44-161-23-26-524 Web site: http://www.mytravelgroup.com AMBERGREEN INTERNET MARKETING LTD. 111 George Street Edinburgh EH2 4JN Scotland United Kingdom Phone: (+44) 0131 225 0720 Fax: (+44) 0131 225 0730 Web site: http://www.ambergreeninternetmarketing.com NETWORX CORPORATE: Shareholders Approve Winding-up Resolutions -------------------------------------------------------------- At the extraordinary general meeting of the members of Networx Corporate Communications Limited (t/a Conference Team) on May 19, 2005 held at O'Hara & Co, Wesley House, Huddersfield Road, Birstall, Batley WF17 9EJ, the extraordinary and ordinary resolutions to wind up the company were passed. Peter O'Hara and Simon Weir of O'Hara & Co, Wesley House, Huddersfield Road, Birstall, Batley WF17 9EJ have been appointed joint liquidators of the company. CONTACT: O'HARA & CO. Wesley House Huddersfield Road Birstall Batley West Yorkshire WF17 9EJ Phone: 01924 477449 Fax: 01924 475262 E-mail: insol@ohara.co.uk OCTEL CORP.: Reviews Biz Amidst Uncertainty in TEL Market --------------------------------------------------------- As Octel Corp. has regularly stated, our business in the tetraethyl lead (TEL) market is subject to various risks, including the timing of orders received from customers, the gain or loss of significant customers, the effects of changing government regulations and economic and market conditions, competition from other manufacturers and changes in the demand for our products, including, as reported in our most recent Annual Report on Form 10K and Annual Report to Shareholders, the rate of continuing decline in demand for TEL. Management monitors developments in the TEL market and such risks closely. In its Form 10-Q for the first quarter of 2005, Octel announced that developments in one of its major markets have indicated that there was a possibility that a customer may exit the TEL market earlier than had been expected. A senior team has visited the country to better understand and discuss the position. This major customer has since cancelled purchase orders in relation to its May shipments, which have consequently not been delivered. The company believes that this customer has accelerated its phase out of the use of leaded gasoline for motor vehicles, possibly to as early as this year. The company is, however, continuing to work with the customer and will continue to monitor the situation. If this customer takes no further shipments, this will significantly impact the predicted revenues for the company's TEL business. In 2004 and 2003, the net sales to this customer were $63.6 million and $50.6 million respectively. The net sales in the first quarter 2005 were $6.6 million. At this stage, however, the company cannot predict the impact these events may have on its financial performance for the year. Against the background of a declining TEL market, the Board of Directors had, at its May 2, 2005 meeting, already authorized a review of corporate costs with the goal of aligning these costs to the future needs of the business. Management believes that this review is likely to result in a significant reduction in corporate costs. These events will require the company to review the TEL goodwill impairment charge, restructuring costs and its manufacturing capacity plans, together with the terms of its senior credit facility with its senior lenders, each of which could be materially effected by such events. The company has initiated this process and will provide a further update in its Quarter 2 Form 10-Q. Paul Jennings, Acting Chief Executive Officer commented: "TEL has always been a very difficult and uncertain market within which to operate. Octel has accepted that this is a feature of this market and that countries may exit the market earlier or later than expected." "Octel is capable of positively responding to this latest challenge. This is amply demonstrated by the excellent results achieved so far in managing the decline in the TEL business, improving performance and growing the Petroleum Specialties and Performance Chemicals businesses, together with the appropriate alignment of corporate costs to the needs of the business." Octel Corp., (NYSE: OTL) a Delaware corporation, is a global chemical company specializing in high performance fuel additives and special and effect chemicals. The company's strategy is to manage profitably and responsibly the decline in world demand for its major product -- tetraethyl lead (TEL) in gasoline -- rough competitive differentiation and stringent product stewardship, to expand its Petroleum Specialties and Performance Chemicals businesses organically through product innovation and focus on customer needs, and to seek synergistic growth opportunities through joint venture, alliances, collaborative arrangements and acquisitions. * * * Standard & Poor's Ratings Services revised earlier its outlook on Octel Corp. to negative from stable, as a result of the declining market of its main product tetraethyl lead (TEL), a lead-based fuel additive, and the challenges faced by the company in seeking replacement activities. At the same time, the 'BB' long-term corporate credit rating on the group was affirmed. CONTACT: OCTEL CORPORATION Global House, Bailey Lane Manchester, EN M90 4 Phone: +44 011-44-161-498-8889 Web site: http://www.octel-corp.com/ Andrew Hartley, Investor Relations Phone: +44-161-498-1858 CITIGATE SARD VERBINNEN Victoria Hofstad Phone: +1-212-687-8080 OPENALPHA LTD.: Liquidator from Roger Evans Moves in ---------------------------------------------------- At the extraordinary general meeting of the members of Openalpha Ltd. on May 18, 2005 held at Rogers Evans, 20Brunswick Place, Southampton SO15 2AQ, the extraordinary and ordinary resolutions to wind up the company were passed. T. C. Evans has been appointed liquidator of the company. Creditors are required to send in their full forenames and surnames, their addresses and descriptions, full particulars of their debt or claims, and the names and addresses of their Solicitors (if any), to T. C. Evans, Rogers Evans, 20 Brunswick Place, Southampton SO15 2AQ on or before June 22, 2005. CONTACT: ROGERS EVANS 20 Brunswick Place Southampton Hampshire SO1 2AQ Phone: 023 8033 5888 Fax: 023 8033 4400 E-mail: tevans@rogersevans.co.uk PANTHER MOTOR: Appoints Sanderlings Liquidator ---------------------------------------------- At the extraordinary general meeting of Panther Motor Sport Limited on May 17, 2005 held at Church Steps House, Queensway, Halesowen, West Midlands B63 4AB, the extraordinary resolutions to wind up the company were passed. Andrew Fender of Sanderlings LLP, Sanderling House, 1071 Warwick Road, Acocks Green, Birmingham B27 6QT has been nominated liquidator of the company. CONTACT: SANDERLINGS LLP Sanderling House, 1071 Warwick Road, Acocks Green, Birmingham B27 6QT POCKETWATCH SYSTEMS: Liquidator's Report Out Later this Month ------------------------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Pocketwatch Systems Limited (In Liquidation) Notice is hereby given, pursuant to section 94 of the Insolvency Act 1986, that a General Meeting of the Members of Pocketwatch Systems Limited will be held at Bruntsfield House, 6 Bruntsfield Terrace, Edinburgh EH10 4EX, on June 24, 2005, at 12:00 noon, for the purpose of having an account laid before the Meeting showing how the winding-up of the Company has been conducted and the property of the Company has been disposed of, and of hearing any explanations that may be given by the Liquidator. K. V. Anderson, Liquidator May 18, 2005 CONTACT: SCOTT & PATERSON Bruntsfield House 6 Bruntsfield Terrace Edinburgh EH10 4EX Phone: 0131 229 2392 Fax: 0131 228 5587 E-mail: mail@scottandpaterson.co.uk Web site: http://www.scottandpaterson.co.uk Keith Veitch Anderson E-mail: Keith.Anderson@scottandpaterson.co.uk Phone: 0131 248 2638 Fax: 0131 248 2608 QXL RICARDO: Appoints Two New Non-executive Directors ----------------------------------------------------- Dan Barnea has been appointed as independent non-executive director of QXL Ricardo plc effective 27 May 2005. Mr. Barnea, 60, is the Senior Vice President of Research and Development at BMC Software, Inc., a provider of enterprise management systems. BMC Software is listed on the New York Stock Exchange and had revenues of over US$1.4 billion in the year to 31 March 2004. Mr. Barnea has worked for BMC Software since 1999, when BMC Software acquired the NASDAQ listed company, New Dimension Software, Inc. for a cash consideration of approximately US$675 million. He was Chief Executive Officer of New Dimension Software and is credited with the significant turnaround of that business and establishing it as a leading player in the systems management industry. Mr. Barnea has held several other senior management positions in technology companies including CEO of Laser Industries, general manager for Indigo, and vice president of research and development for Elscint. Mr. Barnea is currently a non-executive director of Radcom Limited, another NASDAQ listed company. He holds a BSc degree in Electrical Engineering and an MSc degree in Computer Science, both from the Technion Israel Institute of Technology. The Company believes that Mr. Barnea's technological and management expertise will be of great benefit to the Company. It is intended that Mr. Barnea will act as Chairman of the Company's Audit Committee and that he will also serve on the Company's Remuneration and Nomination Committees. The Company has also named Abraham Neyman as a non-executive director effective 27 June 2005. Mr. Neyman, 56, has been a Professor of Mathematics at the Hebrew University of Jerusalem since 1982 and is a world expert in the mathematical analysis of conflict (game theory). Over the past three decades, he has held academic positions at Cornell University, the University of California, Berkeley, Stanford University and Harvard University. In 1999, Mr. Neyman founded Bidorbuy.com, the first online auction company to operate in India. The Indian operation subsequently merged with Bazee.com, which in turn was acquired by eBay Inc. in 2004. Bidorbuy continues to operate in South Africa. Mr. Neyman holds a Ph.D. (summa cum laude) in Mathematics from the Hebrew University of Jerusalem. He is currently a director of Gilat Satellite Networks Limited, a NASDAQ listed company with over 900 employees and annual revenues of over US$200 million. Mr. Neyman will be appointed as a director as a nominee of a group of shareholders, who together hold approximately 26.2% of the Company's issued ordinary share capital. The Izaki Group has sought to requisition an extraordinary general meeting of shareholders to consider the appointment of Mr. Neyman under Section 368 of the Companies Act 1985. However, the Board has agreed with the Izaki Group that it would be more cost-effective for the Company and more convenient for its shareholders if Mr. Neyman's appointment is considered by shareholders at the forthcoming annual general meeting of the Company. The Izaki Group has indicated that they strongly support the Board's existing strategy of focusing the Company's resources in those countries in which the Company has leading market positions and pursuing aggressively the Company's legal claims in Poland. The Board also believes that Mr. Neyman's academic qualifications and business expertise in the area of online auctions will be of significant benefit to the Company. In accordance with the Company's Articles of Association, the appointments of both Mr. Barnea and Mr. Neyman will expire at the Company's forthcoming annual general meeting and both of them will be subject to re-election by shareholders at that meeting, to be held on 28 June 2005. Formal notice of this meeting will be sent to shareholders next week. The Company will continue to review the composition of its Board in the context of the Company's particular situation and ongoing developments in corporate governance best practice. * * * Last week, QXL Ricardo revealed that its operating loss (excluding exceptional items and goodwill) has decreased 90% to GBP368,000, compared to GBP3.51 million for the year ended 31 March 2004. It also registered a 79% drop on its loss on ordinary activities before taxation, posting a loss of GBP1.35 million compared to GBP6.47 million the year earlier. CONTACT: QXL RICARDO PLC The Matrix Complex 91 Peterborough Road London SW6 3BU Contact: Mark Zaleski, Chief Executive Officer Robert Dighero, Chief Financial Officer Tom Parkinson, Company Secretary Phone: +44 (0)20 7384 6310 Financial Dynamics James Melville-Ross Juliet Clarke Phone: +44 (0)20 7831 3113 RAVELIKE LTD.: Holds Final Creditors Meeting -------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Ravelike Ltd. (In Liquidation) Notice is hereby given pursuant to section 146 of the Insolvency Act 1986 that a final meeting of the creditors of Ravelike Ltd. will be held at 44 Victoria Road, Kirkcaldy KY1 1DH on June 22, 2005 at 10:00 a.m. for the purposes of receiving the Liquidator's report on the winding-up and to determine whether the Liquidator should be released. C. Convy, Liquidator CONTACT: TENON RECOVERY 44 Victoria Road Kirkcaldy KY1 1DH Phone: 01592 263212 Fax: 01592 641180 E-mail: kirkcaldy@tenongroup.com Web site: http://www.tenongroup.com RIVERDEEP GROUP: Hires Valentine & Co. as Liquidator ---------------------------------------------------- Name of companies: Riverdeep Group Limited Riverdeep Productions Limited At the extraordinary general meeting of these companies on May 19, 2005 held at the offices of Valentine & Co., 4 Dancastle Court, 14 Arcadia Avenue, London N3 2HS, the extraordinary and ordinary resolutions to wind up the company were passed. Robert Valentine and Mark Reynolds, of Valentine & Co., 4 Dancastle Court, 14 Arcadia Avenue, London N3 2HS have been appointed joint liquidators of the company. CONTACT: VALENTINE & CO. 4 Dancastle Court 14 Arcadia Avenue, London N3 2HS Phone: 020 8343 3710 Fax: 020 9343 4486 Web site: http://www.valentine-co.com ROYAL MAIL: Rural Network to Collapse Without State Subsidy ----------------------------------------------------------- State-owned Royal Mail is holding talks with the government on a new scheme aimed at reducing cost without sacrificing service to the rural areas, Europe Intelligence Wire says. At present, the company operates 8,000 rural post offices that are partly subsidized by the government via a GBP150 million-a- year package. Whitehall is now debating which between the Department of Trade and Industry and the Department of Environment Food and Rural Affairs should fund the subsidy when it expires in 2008. The DTI current subsidizes the rural post network, which could be 80%-paralyzed if the government cancels the funding. CEO Adam Crozier is now studying the possibility of replacing rural outlets with mobile post office run from the back of a van to cut cost, which currently runs at GBP3 million a week. A Royal Mail spokesman confirmed this in an interview with Europe Intelligence Wire. "We are engaged in discussions with government and the relevant politicians about rural post offices in Scotland and other areas of the U.K. to see if Post Office Ltd. can provide services to customers in a different way," he said. "Once we have decided on the pilot areas, we will begin discussions with communities involved to see how it will affect them." CONTACT: ROYAL MAIL HOLDINGS PLC 148 Old St. London EC1V 9HQ Phone: +44-20-7250-2888 Fax: +44-20-7250-2244 Web site: http://www.royalmailgroup.com R S PRECISION: Appoints Moore Stephens Liquidator ------------------------------------------------- At the extraordinary general meeting of R S Precision Engineering Limited on May 19, 2005 held at the offices of Moore Stephens, Corporate Recovery, Victory House, Admiralty Place, Chatham Maritime, Kent ME4 4QU, the subjoined extraordinary resolution to wind up the company was passed. David Ronald Elliott of Moore Stephens, Corporate Recovery, Victory House, Admiralty Place, Chatham Maritime, Kent ME4 4QU has been appointed liquidator of the company. CONTACT: MOORE STEPHENS CORPORATE RECOVERY Victory House Admiralty Place Chatham Maritime Kent ME4 4QU Phone: +44 (01634) 895100 Fax: +44 (01634) 895101 Web site: http://www.moorestephens.com STARK ENGINEERING: Decides to Liquidate Assets ---------------------------------------------- At the extraordinary general meeting of the members of Stark Engineering Ltd. on May 20, 2005 held at 3rd Floor, Regent House, Bath Avenue, Wolverhampton WV1 4EG, the extraordinary resolution to wind up the company was passed. Mark Jonathan Botwood of Muras Baker Jones, Regent House, Bath Avenue, Wolverhampton WV1 4EG has been appointed liquidator of the company. CONTACT: MURAS BAKER JONES & COMPANY Regent House 3rd Floor Bath Avenue Wolverhampton West Midlands WV1 4EG Phone: 01902 393007 Fax: 01902 393010 E-mail: mjb@muras.co.uk TECHTONIK LTD.: Members Call in Liquidator from RMT --------------------------------------------------- At the extraordinary general meeting of the members of Techtonik Ltd. on May 16, 2005 held at the offices of RMT, 3Portland Terrace, Newcastle upon Tyne NE2 1QQ, the extraordinary resolution to wind up the company was passed. A. A. Josephs and L. A. Farish of RMT, 3 Portland Terrace, Newcastle upon Tyne NE2 1QQ have been appointed liquidators of the company. CONTACT: RMT 3 Portland Terrace Jesmond Newcastle Upon Tyne Tyne And Wear NE2 1QQ Phone: 0191 281 8816 Fax: 0191 281 0530 E-mail: linda.farish@r-m-t.co.uk TENTAZIONE LIMITED: Appoints Liquidators from Gerald Edelman ------------------------------------------------------------ At the extraordinary general meeting of the members of Tentazione Limited (t/a Tentazioni) on May 20, 2005 held at 25 Harley Street, London W1G 9BR, the extraordinary and ordinary resolutions to wind up the company were passed. Bernard Hoffman and Ian Yerrill of 25 Harley Street, London W1G 9BR have been appointed joint liquidators of the company. CONTACT: GERALD EDELMAN BUSINESS RECOVERY 25 Harley Street London W1N 2BR Phone: 020 7299 1400 Fax: 020 7637 1440 E-mails: bhoffman@GeraldEdelman.com insolvency@edelman.co.uk TRANSCOAST LONDON: Liquidator from Robert Day & Company Moves in ---------------------------------------------------------------- At the extraordinary general meeting of the members of Transcoast London Limited on May 20, 2005 held at Regus, 1000 Great West Road, Brentford, Middlesex TW8 9HH, the extraordinary and ordinary resolutions to wind up the company were passed. Robert Day of Robert Day and Company, Garfield, Church Lane, Oving, Aylesbury, Buckinghamshire HP22 4HL has been appointed liquidator if the company. CONTACT: ROBERT DAY & COMPANY Second Floor Exchange Building 16 St Cuthbert's Street Bedford Bedfordshire MK40 3JG Phone: 0845 125 9458 Fax: 0845 226 7332 E-mail: enquiries@robertdayandcompany.com TRUC VERT: Names Ian Franses Associates Liquidator -------------------------------------------------- At the extraordinary general meeting of Truc Vert Limited on May 20, 2005 held at 24 Conduit Place, London W2 1EP, the extraordinary and ordinary resolutions to wind up the company were passed. Ian Franses of Ian Franses Associates, 24 Conduit Place, London W2 1EP has been appointed liquidator of the company. CONTACT: IAN FRANSES ASSOCIATES 24 Conduit Place London W2 1EP Phone: 020 7262 1199 Fax: 020 7262 2662 E-mail: if@ianfranses.co.uk W D STONE: Appoints Roger Evans Liquidator ------------------------------------------ At the extraordinary general meeting of the members of W D Stone Associates Ltd. on May 18, 2005 held at Rogers Evans, 20 Brunswick Place, Southampton SO15 2AQ, the extraordinary and ordinary resolutions to wind up the company were passed. T. C. Evans has been appointed liquidator of the company. CONTACT: ROGERS EVANS 20 Brunswick Place Southampton Hampshire SO1 2AQ Phone: 023 8033 5888 Fax: 023 8033 4400 E-mail: tevans@rogersevans.co.uk WEST CITY: Members Decide to Wind up Company -------------------------------------------- At the extraordinary general meeting of the members of West City Community Business Limited on May 17, 2005 held at Fernwood House, Fernwood Road, Jesmond, Newcastle upon Tyne NE2 1TJ, the extraordinary and ordinary resolutions to wind up the company were passed. William Paxton of Robson Laidler LLP, Fernwood House, Fernwood Road, Jesmond, Newcastle upon Tyne NE2 1TJ has been appointed liquidator of the company. CONTACT: ROBSON LAIDLER LLP Fernwood House, Fernwood Road, Jesmond, Newscastle upon Tyne Liquidator: W Paxton Phone: 0191 281 8191 Fax: 0191 281 6279 Web site: http://www.robson-laidler.co.uk ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Larri-Nil Veloso, Ma. Cristina Canson, Liv Arcipe, Julybien Atadero and Jay Malaga, Editors. Copyright 2005. 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. 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