/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/050729.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, July 29, 2005, Vol. 6, No. 149 Headlines B U L G A R I A NOVA PLAMA: Creditors File Second Bankruptcy Petition C Z E C H R E P U B L I C CZECH AIRLINES: First-half Passenger Uptake Grows 18% JITKA AS: Huge Losses Force Majority Owner to Sell Stake SFINX: Pot maker Declares Bankruptcy F R A N C E ALSTOM SA: Service Unit Takes over Chinese Engineering Group COMPLETEL EUROPE: Net Loss Down to EUR0.5 Million DELY'S: Cheap Competition 'Kills' Local Shoemaker EURO DISNEY: Releases Details for Depositary Receipt Holders G E R M A N Y DOHRMANN & STEPHAN: Court to Verify Claims November FAST & CLEAN: Creditors to Meet Next Month FORELLENHOF ROTER: Creditors Meeting Set 3rd Week of August FURKA GRUNDSTUECKSGESELLSCHAFT: Falls into Bankruptcy PREISLER & SCHNEIDER: Court to Verify Claims October RADTKE COTTON: Bremen Court Appoints Administrator SCHAFER GMBH: Appoints Dr. Hopfner Provisional Administrator TANI-THERM: Creditors Meeting Set October THOMAS COOK: Denies Suspending Flights to Egyptian Resort VELOCIPED FAHRRADLADEN: Under Bankruptcy Administration WERMSDORFER RAUCHEREI: Creditors' Claims Due September I R E L A N D VHI HEALTHCARE: Closure Looms as Losses Mount I T A L Y WIND TELECOMUNICAZIONI: Proposed Credit Facilities Rated (P)B1 N E T H E R L A N D S HAGEMEYER N.V.: To Cut Ties with Fuji Film ROYAL SHELL: Former Chairman Raps U.K.'s FSA R O M A N I A GAVAZZI STEEL: Asset Sale Collects US$7 Million R U S S I A BELORETSKIY FACTORY: Hires Insolvency Manager from Bashkortostan BIRSKIY ELEVATOR: Creditors Have Until Next Week to File Claims EVRAZ GROUP: Corporate Credit Rated 'B+'; Outlook Positive GARANT-STROY: Claims Deadline Expires Next Week KOTLASSKIY LESOPILNYJ: Bankruptcy Hearing Set November METROMEDIA INTERNATIONAL: To Close Sale of PeterStar Next Week MOS: Insolvency Manager Takes over Company MOVABLE MECHANIZED: Undergoes Bankruptcy Supervision Procedure RAS: Deadline for Proofs of Claim Next Week SPASSKOYE BUILDING-ASSEMBLY: Under Bankruptcy Supervision TSERIT INVEST: Under External Management Procedure YOSHKAR-OLINSKIY FACTORY: Falls into Bankruptcy YUKOS OIL: Allowed to Increase Claims vs. Yugansk Buyer YUKOS OIL: Court Evaluates 1995 Loans-for-shares Auction U K R A I N E TRADE LINK: Succumbs to Bankruptcy U N I T E D K I N G D O M 365 NETWORK: Hires Begbies Traynor Administrator AARDWORK SOFTWARE: Administrators Take Over Business ABBEY MEDIA: Administrators from KPMG Move in ABSOLUTE BRIDGING: High Court Orders Liquidation ALLIED DOMECQ: Sold to Pernod Ricard ALLIED DOMECQ: Ratings Downgraded to Baa3/P-3 BESPOKE INVESTMENT: Goes into Liquidation BIRCHWOOD GARAGES: Names Grant Thornton Administrator BRITISH AMERICAN: Comparisons Become More 'Demanding' CAMBRIDGE APPLIED: Tenon Recovery Administrators Enter Firm CATERBEST LTD.: Gets Court Approval to Wind-up CHARACTER GROUP: CEO Leaves Genoa Club on Five-year Ban CHEETAH ACQUISTIONS: EGM Passes Winding-up Resolutions CHUBB GUARDING: Names PricewaterhouseCoopers Liquidator CHUBB SECURITY: Liquidators from PwC Move in DARENTH WEIGHING: Creditors Meeting Set in Two Weeks DATACOMMS TECHNOLOGY: Bristol Court Accepts Winding-up Petition ECOQUIP LTD.: Lures Potential Buyers with Strong Customer Base EO COM: Leeds Court Okays Liquidation EURODIS ELECTRONICS: Hires Deloitte & Touche Administrators EUROTRANS 2000: Goes into Liquidation FILOS (UK): Wholesaler Calls in Administrator FKI PLC: Senior Unsecured Debt Rating Affirmed at 'BB' FLOWGUARD FINISHING: Winding-up Petition Gets Court Approval GRANVILLE TECHNOLOGY: 1,500 Workers Axed; 78 Outlets Closed GRIFFIN REAL: High Court Orders Winding-up GUARDFORCE INTERNATIONAL: Appoints Joint Liquidators from PwC HOME & CONTRACT: Bristol Court Approves Liquidation IMPLANTS (INTERNATIONAL): Calls in Begbies as Administrator JOINT BUILDING: Gets Court Approval to Wind-up LEY'S FOUNDRIES: Calls PwC as Liquidator LOGIC HOLDINGS: Hires Administrators from Tenon Recovery LOGIC ROOFING: Joint Administrators Take over Operation METRONOMY DESKTOP: Court Accepts Petition to Wind-up METZLER INTERNATIONAL: Calls in Administrator MG ROVER: Announcement Delay Stirs More Controversy MIRACLE SOLUTIONS: Names P&A Partnership Administrator MOONMORE LIMITED: Calls in Liquidators from PwC MULLIGANS BAR: In Administrative Receivership MYTRAVEL GROUP: Credit Facilities Fees to Cost GBP10 Mln Yearly NATIONWIDE SCHOOL: In Liquidation OULSTON COMPUTERS: Falls into Liquidation PLAS-TECH WINDOWS: Court Okays Winding-up POPIN FISH: Gets Court Approval to Liquidate QUEST INTERNATIONAL: Administrators from Kroll Limited Move in SAINSBURYS OF BOURNEMOUTH: Creditors Meeting Set August 9 SOFTWARE STORE: Administrators from Hazlewoods Take over Biz STANLEY J HOLMES: Hires Hodgsons Administrator TANEX RESOURCES: Receives Court Approval to Liquidate TELEWEST GLOBAL: To Reveal Second-quarter Figures Next Month THUS GROUP: Turnover Stable; Trading in Line with Expectations WADE SMITH: Administrators from PKF Take over Operation WHITEHEAD MANN: New Partners, Consultants Join Firm WILLIAMS UK: Appoints PwC Liquidator WM MORRISON: Like-for-like Half-year Sales Up 5% YOUR NEW: High Court Approves Winding-up Petition Y & V LIMITED: In Voluntary Liquidation ********* =============== B U L G A R I A =============== NOVA PLAMA: Creditors File Second Bankruptcy Petition ----------------------------------------------------- The district court in Pleven has opened another bankruptcy proceedings against Nova Plama, Europe Intelligence Wire says. According to the report, the proceeding is the second in seven years after the Bulgarian oil company failed to implement its rehabilitation plan approved by creditors in 1999. The first proceeding was initiated by State Fund for Reconstruction and Development. The rehab plan extended Plama's repayment of a BGN251.5 million debt until 2031, but in 2003 it must repay creditors BGN30 million. Creditors in the second proceedings claim Plama did not implement this plan. Jorset Holding and DZI Bank, which are collectively owed more than BGN8 million, has asked the court to appoint receivers and order the sale of Plama's assets to pay its debt. The company claims the rehab plan was not implemented because it failed to resume operations promptly. Court records show Plama's buyer following its first bankruptcy called "Plama Consortium" had several demands on the government as conditions for reviving operations, among them, legislative amendments concerning the so-called hollow profit. Built between 1964 and 1971, the Nova Plama refinery is the second biggest Bulgarian refinery with processing capacity of 1,200,000 metric tonnes of crude oil annually. It is the only manufacturer of base oils on the Bulgarian market with a capacity of 209,000 MT annually. Until 1996, the refinery was the main supplier of base oils, finished oils and special products for all local and most East-European consumers. Currently, it processes crude oil and manufactures a full range of petrol products. The refinery is located near the town of Pleven, approximately 160 km Northeast of Sofia and nearly 30 km South from the Danube River. The nearest seaport, Varna, is about 300 km away from the refinery. CONTACT: NOVA PLAMA JSC 5800 Pleven Bulgaria Phone: +359 (64) 83 41 88, 82 21 37 Fax: +359 (64) 83 35 76, 83 24 71 E-mails: distribution@plama.bg logistics@plama.bg Web site: http://www.plama.bg/ =========================== C Z E C H R E P U B L I C =========================== CZECH AIRLINES: First-half Passenger Uptake Grows 18% ----------------------------------------------------- In the first six months of this year, Czech Airlines showed a growth of 18% in the number of transported passengers when compared to 2004. Over the January-June 2005 period, 2.3 million passengers traveled on Czech Airlines regular and charter flights. Further growth is expected in the summer months, which are traditionally the busiest period for air transport. Czech Airlines carried out a total of 18 482 flights over the first six months of 2005 which represents a year-on-year growth of more than 25%. In addition to this, 10 480 tons of cargo and mail were transported on these flights. The transport results for charter flights continued to grow with the beginning of the CSA Summer Season. Czech Airlines carried 225,310 passengers to holiday destinations over the first six months of the year while over the same period of 2004, 82 480 passengers traveled on charter flights. In the month of June itself, the number of transported passengers grew by 24%. 511,930 passengers used Czech Airlines services in June 2005 with the airline carrying out 3,471 flights and transporting 1,670 tons of cargo and mail. These increases in transport results show that Czech Airlines has been successful in maintaining its strong position on the market as well as in attracting new customers, even with the ever-growing competition in the air transport industry. Jitka Novotna CSA Spokesperson CONTACT: CESKE AEROLINIE A.S. Prague Ruzyni Airport 160 08 Prague, 6, Czech Republic Phone: +42 220 104 310 Fax: +42 224 81 04 26 Web site: http://www.csa.cz JITKA AS: Huge Losses Force Majority Owner to Sell Stake -------------------------------------------------------- Textile maker Jitka is now owned by Milan Vasicek, a lawyer who recently paid CZK185.5 million to buy a 74.75% stake in the company, weekly Tyden says. Mr. Vasicek's investment vehicle, Pletora, bought the stake from SPGroup, headed by billionaire Pavel Sehnal. Mr. Sehnal's group was forced to sell the business, which employs 700, due to heavy losses last year, its first in 14 years. The company fell CZK38.8 million in the red last year, the report said. Established in 1965, Jitka a.s. specializes in producing cotton and mixture fabrics for working and protective clothing, denim fabrics, and a range of other textiles. CONTACT: JITKA a.s. Jindrichuv Hradec Czech Republic Phone: +420 384 379 502 +420 384 379 268 Fax: +420 384 321 164 +420 384 321 147 E-mail: jitka@jitka.cz Web site: http://www.jitka.cz SPGROUP a.s. Masarykovo nabr. 235/28, 110 00 Praha 1 Phone: 221 907 217 Fax: 224 933 113 E-mail: vedeni@spggroup.cz SFINX: Pot maker Declares Bankruptcy ------------------------------------ Enameled pots and pans maker Sfinx has given up after three losing years, Europe Intelligence Wire says. The company has been struggling to stay afloat since 2002, when it almost went belly up. Sfinx started its business in the 1980s and at one point cornered 90% of the local market for pots and pans. Its bankruptcy leaves 130 jobless. =========== F R A N C E =========== ALSTOM SA: Service Unit Takes over Chinese Engineering Group ------------------------------------------------------------ Alstom S.A.'s service unit has acquired a Hong Kong-based engineering company, boosting the group's presence in China, the Financial Times says. Alstom Power Service Sector acquired LATech Engineering Co. Ltd., which serves utility, industrial and municipal clients in Hong Kong and southern China. The acquisition expands Alstom's domestic capabilities in integrated service solutions for thermal power plants in China. Alstom said it would benefit from LATech's established client-and-supplier relationships, allowing it to "push its service technology and advanced maintenance solutions." CONTACT: ALSTOM S.A. 25 Avenue Kleber 75795 Paris Cedex 16 Phone: +33-1-47-55-20-00 Fax: +33-1-47-55-25-99 Web site: http://www.alstom.com COMPLETEL EUROPE: Net Loss Down to EUR0.5 Million ------------------------------------------------- Financial Highlights: (a) +20% Growth of total revenue in Q2'05 vs. Q2'04; (b) +50% Growth of Adjusted EBITDA in Q2'05 vs. Q2'04; (c) Adjusted EBITDA margin rose to 17% of revenue in Q2'05 compared to 14% in Q2'04; and (d) Net loss reduced to EUR0.5 million in Q2'05 from EUR3.1 million in Q2'04. Operational Highlights: (a) +22% increase of customers connected to the networks in Q2'05 vs. Q2'04, and (b) +23% increase of buildings connected to the networks in Q2'05 vs. Q2'04. Other events: (a) ARCEP1 (formerly ART) decision on call termination tariffs postponed later this year; (b) Expansion plan announced on July 22 2005; and (c) EUR120 million financing of expansion plan closed on July 27. Completel Europe N.V., a national infrastructure-based operator providing telecom services to the French business market, has revealed its results for the quarter ended June 30, 2005. Completel reported quarterly revenue of EUR46.8 million compared to EUR39.1 million in Q2'04, an increase of 20%, and a positive Adjusted EBITDA of EUR8.1 million compared to EUR5.4 million in Q2'04. Jerome de Vitry, President and CEO of Completel Europe N.V., said: "Q2'05 is another quarter of continuing positive development with continuing revenue growth, supported by successes in data, leading to a third quarter of positive free cash flow. "I am extremely pleased to announce the launch our expansion plan which will allow us to build on our current fiber access positioning to expand our addressable market meaningfully with an unmatched powerful combination of fiber and unbundled DSL. "The success of our business model and the strong development of the French broadband market, combined with a favorable competitive environment, represent a unique growth opportunity for Completel. "Increasing our regional footprint from 9 metropolitan areas to a national coverage across 80 metropolitan areas will significantly strengthen our competitive position in the corporate market and is a direct response to the increasing customer demand for integrated data and voice services and their need to serve all their sites on a national basis. "This network extension is an opportunity to capture a higher share of our customers' total telecom spend, to target the untapped potential of the SME market. We will also be able to address the entire wholesale market through our national coverage, which we will serve where it proves profitable. This strategic move is a natural evolution to serve our customers, both the corporate and the wholesale markets, with the best suite of turn-key voice and data telecommunications solutions. "We are convinced there is now a great market opportunity to grow the Company and to strengthen our position as a key telecom provider to the French corporate market. We have the possibility to become the only alternative operator with a large metropolitan fiber network and a comprehensive DSL coverage of French businesses." Alexandre Westphalen, Chief Financial Officer, said: "In Q2'05, we achieved our third consecutive quarter of positive free cash flow. We ended the quarter Q2'05 with EUR1.7 million of free cash and with a significant cash balance of EUR44.9 million on our balance sheet. The continuous growth of revenue along with costs control reduced our net losses to EUR0.5 million in Q2'05 from EUR3.1 million in Q2'04. "In anticipation of ARCEP's decision for call termination expected later this year, we continue to estimate our call termination revenue for 2005 on the basis of the tariff on which Completel and France Telecom settled their 2004 call termination dispute. However, the comments of the Conseil de la Concurrence, published on May 11, 2005, now lead us to estimate that there is a higher probability to obtain final 2005 tariffs close to, or above, our current call termination estimate than below. "Finally, I'm pleased with the successful financing of our expansion plan. This EUR120 million financing fully funds our business plan and gives us the proper financial flexibility to execute our Expansion Plan. This balanced equity and debt placement optimizes our balance sheet and financing structure for future years. Our stock issuance close to market price is a tribute of investors' confidence in the company's ability to create shareholders' value through the implementation of this strategic expansion." A copy of the financial results is available free of charge at http://bankrupt.com/misc/CompletelEurope(Q22005).pdf CONTACT: COMPLETEL EUROPE N.V. Tour Egee, 9-11 allee de l'Arche 92671 Courbevoie Cedex FRANCE Phone: +33 1 72 92 20 00 Home Page: http://www.completel.com DELY'S: Cheap Competition 'Kills' Local Shoemaker ------------------------------------------------- Shoemaker Dely's has fallen under court supervision after filing for bankruptcy on July 6, Les Echos says. The company blames cheap competition from Asia for its demise, which has left 173 employees jobless. The company has been controlled by the family of Alessio Barani since 1999. Records obtained by Troubled Company Reporter-Europe show the company has a capital of EUR3,963,674. CONTACT: DELY 56 Avenue de Nantes Bp: 5 44116 VIEILLEVIGNE FRANCE Tel: 02 40 02 07 40 Fax: 02 40 26 54 83 E-mail: delys@delys.fr EURO DISNEY: Releases Details for Depositary Receipt Holders ------------------------------------------------------------ Further to the announcement on July 21, 2005, Euro Disney S.C.A. is currently sending out documentation to all holders of Depositary Receipts in respect of the Company's decision to cancel its share listing on the London Stock Exchange. A copy of the documentation has been submitted to the U.K. Listing Authority. It will be available for inspection at both Freshfields Bruckhaus Deringer, which is situated at 65 Fleet Street, London EC4Y 1HS and the U.K. Listing Authority's Document Viewing Facility, which is situated at The Financial Services Authority, 25 The North Colonnade, Canary Wharf, London E14 HS, Phone: 020 7066 1000 from July 28, 2005. * * * Euro Disney has decided to cancel its secondary listings of both ordinary shares and U.K. Depositary Receipts on the Official List of the U.K. Listing Authority and from trading on the London Stock Exchange's market for listed securities; and the secondary listing of its ordinary shares from Brussels Euronext. Market trends and changes in the regulatory environment, combined with the high cost of maintaining separate listings relative to historical trading volumes, have led to the Company's decision to cancel its share listings on the London Stock Exchange and Euronext Brussels. Following the cancellation of the listings, investors will still be able to trade in the Company's shares on Euronext Paris. Euro Disney S.C.A. and its subsidiaries operate the Disneyland Resort Paris, which includes Disneyland Park, Walt Disney Studios Park, seven themed hotels with approximately 5,800 rooms (excluding 2,074 additional third-party rooms located on the site), two convention centers, Disney Village, a dining, shopping and entertainment center, and a 27-hole golf facility. The Group's operating activities also include the management and development of the 2,000-hectare site, which currently includes approximately 1,000 hectares of undeveloped land. CONTACT: EURO DISNEY S.C.A. Corporate Communication Pieter Boterman Phone: +331 64 74 59 50 Fax: +331 64 74 59 69 E-mail: pieter.boterman@disney.com Investor Relations Fiona Lord Duarte Phone: +331 64 74 58 55 Fax: +331 64 74 56 36 E-mail: fiona.lord.duarte@disney.com ============= G E R M A N Y ============= DOHRMANN & STEPHAN: Court to Verify Claims November --------------------------------------------------- The district court of Charlottenburg opened bankruptcy proceedings against Dohrmann & Stephan Baugesellschaft mbH on July 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 29, 2005 to register their claims with court-appointed provisional administrator Dr. Christoph Schulte-Kaubruegger. Creditors and other interested parties are encouraged to attend the meeting on August 18, 2005, 10:15 a.m. at the district court of Charlottenburg, Amtsgerichtsplatz 1, 14057 Berlin, II. Stock Saal 218, 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 on November 24, 2005, 10:05 a.m. at the same venue. CONTACT: DOHRMANN & STEPHAN BAUGESELLSCHAFT mbH Berliner Str. 3,13089 Berlin Dr. Christoph Schulte-Kaubruegger, Administrator Genthiner Str. 48, 10785 Berlin FAST & CLEAN: Creditors to Meet Next Month ------------------------------------------ The district court of Charlottenburg opened bankruptcy proceedings against Fast & Clean Dienstleistungen GmbH on July 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 27, 2005 to register their claims with court-appointed provisional administrator Christoph Rosenmueller. Creditors and other interested parties are encouraged to attend the meeting on August 16, 2005, 9:25 a.m. at the district court of Charlottenburg, Amtsgerichtsplatz 1, 14057 Berlin, II. Stock Saal 218, 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 on November 22, 2005, 9:25 a.m. at the same venue. CONTACT: FAST & CLEAN DIENSTLEISTUNGEN GmbH Raintaler Str. 43,80331 Muenchen Christoph Rosenmueller, Administrator Berliner Str. 117, 10713 Berlin FORELLENHOF ROTER: Creditors Meeting Set 3rd Week of August ----------------------------------------------------------- The district court of Charlottenburg opened bankruptcy proceedings against Forellenhof Roter Siegfried Roter Nachf. OHG on July 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 27, 2005 to register their claims with court-appointed provisional administrator Joachim Voigt-Salus. Creditors and other interested parties are encouraged to attend the meeting on August 16, 2005, 9:15 a.m. at the district court of Charlottenburg, Amtsgerichtsplatz 1, 14057 Berlin, II. Stock Saal 218, 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 on November 22, 2005, 9:15 a.m. at the same venue. CONTACT: FORELLENHOF ROTER SIEGFRIED ROTER NACHF. OHG Weinmeisterhornweg 103,13593 Berlin Joachim Voigt-Salus, Administrator Rankestrasse 33, 10789 Berlin FURKA GRUNDSTUECKSGESELLSCHAFT: Falls into Bankruptcy ----------------------------------------------------- The district court of Charlottenburg opened bankruptcy proceedings against FURKA Grundstuecksgesellschaft mbH & Co Vertriebs KG on July 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have September 27, 2005 until to register their claims with court-appointed provisional administrator Dr. Petra Hilgers. Creditors and other interested parties are encouraged to attend the meeting on August 16, 2005, 9:20 a.m. at the district court of Charlottenburg, Amtsgerichtsplatz 1, 14057 Berlin, II. Stock Saal 218, 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 on November 22, 2005, 9:20 a.m. at the same venue. CONTACT: FURKA GRUNDSTUECKSGESELLSCHAFT mbH & Co VERTRIEBS KG, Kurfuerstendamm 16,10719 Berlin Dr. Petra Hilgers, Administrator Goethestr. 85, 10623 Berlin PREISLER & SCHNEIDER: Court to Verify Claims October ---------------------------------------------------- The district court of Cuxhaven opened bankruptcy proceedings against Preisler & Schneider Lebensmittelwerke GmbH on July 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 8, 2005 to register their claims with court-appointed provisional administrator Jan H. Wilhelm. Creditors and other interested parties are encouraged to attend the meeting on October 6, 2005, 12:40 p.m. at the district court of Cuxhaven, Saal 112, Altbau, Deichstr. 12a, 27472 Cuxhaven, 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: PREISLER & SCHNEIDER LEBENSMITTELWERKE GmbH, Prasident-Herwig-Str. 6-8, 27472 Cuxhaven Contact: Udo Nermerich, Manager Birkenweg 19, 27472 Cuxhaven Jan H. Wilhelm, Administrator Am Radeberg 1, 28717 Bremen Phone: 0421/178765 Fax: 0421/1787665 RADTKE COTTON: Bremen Court Appoints Administrator -------------------------------------------------- The district court of Bremen opened bankruptcy proceedings against Radtke Cotton News GmbH on July 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 13, 2005 to register their claims with court-appointed provisional administrator Jan H. Wilhelm. Creditors and other interested parties are encouraged to attend the meeting on September 1, 2005, 9:00 a.m. at the district court of Bremen, Saal 115, Gerichtshaus (Neubau), Ostertorstr. 25-31, 28195 Bremen, 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 October 6, 2005, 9:00 a.m. at the same venue. CONTACT: RADTKE COTTON NEWS GmbH Reeder-Bischoff-Str. 51, 28757 Bremen Contact: Eckhard Wilfried Radtke, Manager Renate Radtke, Manager Kirchheide 11, 28757 Bremen Jan H. Wilhelm, Administrator Am Radeberg 1, 28717 Bremen Phone: 0421/178765 Fax: 0421/1787665 SCHAFER GMBH: Appoints Dr. Hopfner Provisional Administrator ------------------------------------------------------------ The district court of Darmstadt opened bankruptcy proceedings against Schafer GmbH Bedachungen aller Art on July 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until August 4, 2005 to register their claims with court-appointed provisional administrator Dr. Alexander Hopfner. Creditors and other interested parties are encouraged to attend the meeting on September 15, 2005, 10:00 a.m. at the district court of Darmstadt, Zimmer 4, Gebaude E, Landwehrstrasse 48, 64293 Darmstadt, 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: SCHAFER GmbH BEDACHUNGEN ALLER ART Fischweiher 13 A, 64646 Heppenheim Contact: Andreas Schafer, Manager Dr. Alexander Hopfner, Administrator Darmstadter Str. 43, 64646 Heppenheim Phone: 06252/6739988 Fax: 06252/6739989 TANI-THERM: Creditors Meeting Set October ----------------------------------------- The district court of Aachen opened bankruptcy proceedings against TANI-Therm GmbH on July 4. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until August 29, 2005 to register their claims with court-appointed provisional administrator Caroline Schmitz. Creditors and other interested parties are encouraged to attend the meeting on October 10, 2005, 8:15 a.m. at the district court of Aachen, Nebenstelle Augustastrasse, Augustastrasse 78/80, 52070 Aachen, II. Etage, Zimmer 21, 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: TANI-THERM GmbH Forststr. 3, 52393 Huertgenwald Contact: Dieter Niebel, Manager Seid Hossein Tabai Damavandi, Manager Luisenstr. 75, 52477 Alsdorf Caroline Schmitz, Administrator Waisenhausstr. 3, 52349 Dueren Phone: 02421/20908-0 Fax: 02421/20908-18 THOMAS COOK: Denies Suspending Flights to Egyptian Resort --------------------------------------------------------- Troubled travel group Thomas Cook denies suspending all its flights to Sharm el-Cheikh, AFX News says. A news report came out Sunday stating that Thomas Cook had suspended all flights to the resort, following the bombing in the Egyptian Red Sea resort. A spokesman said the group merely suspended Saturday and Sunday excursions for Thomas Cook clients in Sharm el-Cheikh, not flights to the resort. Explosions rocked the Egyptian resort last Saturday, killing at least 88 people. Thomas Cook excursions resumed Monday. Europe's second-largest tour operator said all Egyptian trips this summer could still be changed until August 6. Clients going to Egypt may either choose another destination or postpone their trip. Thomas Cook expects to book both pre- and post-tax profit for 2005, its first since 2001, after trimming its first-half loss from EUR301.4 million in 2004 to EUR217 million this year. Thomas Cook's improved figures is partly due to its restructuring. Troubled retail giant KarstadtQuelle AG and Deutsche Lufthansa AG, Europe's second largest carrier, equally own Thomas Cook. CONTACT: THOMAS COOK AG Zimmersmuehlenweg 55 61440 Oberursel Phone: +49-6171-6500 Fax: +49-6171-652-125 Web site: http://www.thomascook.de VELOCIPED FAHRRADLADEN: Under Bankruptcy Administration ------------------------------------------------------- The district court of Bielefeld opened bankruptcy proceedings against Velociped Fahrradladen GmbH on July 7. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until August 19, 2005 to register their claims with court-appointed provisional administrator Klaus Knetter. Creditors and other interested parties are encouraged to attend the meeting on September 9, 2005, 9:30 a.m. at the district court of Bielefeld, Gerichtstrasse 6, 33602 Bielefeld, 4. Ebene, Saal 4065, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: VELOCIPED FAHRRADLADEN GmbH Heeper Str. 133, 33607 Bielefeld Contact: Juergen Luebcke, Manager Heeper Str. 152, 33607 Bielefeld Friedhelm Vedder, Manager An der Walkenmuehle 22, 33607 Bielefeld Klaus Knetter, Administrator Otto-Brenner-Str. 186, 33604 Bielefeld WERMSDORFER RAUCHEREI: Creditors' Claims Due September ------------------------------------------------------ The district court of Cuxhaven opened bankruptcy proceedings against Wermsdorfer Raucherei GmbH on July 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until September 8, 2005 to register their claims with court-appointed provisional administrator Jan H. Wilhelm. Creditors and other interested parties are encouraged to attend the meeting on October 6, 2005, 11:00 a.m. at the district court of Cuxhaven, Saal 112, Altbau, Deichstr. 12a, 27472 Cuxhaven, 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: WERMSDORFER RAUCHEREI GmbH Ortstrasse 9, 04688 Mutzschen Contact: Udo Nermerich, Manager Birkenweg 19, 27472 Cuxhaven Jan H. Wilhelm, Administrator Am Radeberg 1, 28717 Bremen Phone: 0421/178765 Fax: 0421/1787665 ============= I R E L A N D ============= VHI HEALTHCARE: Closure Looms as Losses Mount --------------------------------------------- Vhi Healthcare is facing insolvency and eventual closure in two years, said The Irish Times. This came as the firm admitted it is likely to lose up to EUR40 million this year, after reporting a net loss of EUR12 million in 2004. Chief Executive Vincent Sheridan said Vhi has been covering these losses from its EUR281 million reserves. If this continues, Mr. Sheridan warned the company could be insolvent by 2007. He said: "The board can see the rate at which the reserves are being depleted, and they will have to decide whether this business can continue." He added the crisis is due to the failure of Minister for Health Mary Harney to launch risk equalization to the health insurance market. The system would have provided for a community-rated scheme of health insurance, which requires profits earned on policies sold to young and healthy people to offset the losses on older, loss-making clients. This would have meant that rival insurer Bupa would be obliged to pay Vhi more than EUR30 million in 2006 to make up for the fact that the latter's clients are older and, therefore, less profitable. Over 90% of Vhi's clients are over 49, making the firm the biggest beneficiary of risk equalization payments. Findings from the Health Insurance Authority show that the high number of older clients cost Vhi EUR16 million in the second half of 2004. Bupa, which has earnings of EUR23.4 million in 2004, has already threatened to shut down its business if risk equalization is implemented. In June, Ms. Harney said Vhi has to at least start first its transition from a statutory body to a commercial State company before she introduces the system. Vhi Healthcare owns an 80% share of the Irish private health insurance market. It offers a wide range of healthcare plans for acute medical cover to individual and corporate clients. In 2004, Vhi Healthcare diversified its product range to include Multi Trip Travel Insurance cover and has become the first company in Ireland to offer stand-alone cover for dental care, with Vhi DeCare Dental. It has over 1.55 million members representing 40% of the Irish population. CONTACT: VHI HEALTHCARE IDA Business Park Dublin Road Kilkenny Ireland Phone: 1850 44 44 44 E-mail: info@vhi.ie Web site: http://www.vhi.ie ========= I T A L Y ========= WIND TELECOMUNICAZIONI: Proposed Credit Facilities Rated (P)B1 -------------------------------------------------------------- Moody's Investors Service assigned a (P)B1 corporate family rating to Wind Telecomunicazioni S.p.A. Concurrently Moody's assigned a (P)B1 rating to Wind's EUR6,850 million senior secured credit facilities and a (P)B2 rating to its EUR700 million second lien facility. This is a first-time rating for Wind. The ratings outlook is stable. Ratings assigned for Wind Telecomunicazioni S.p.A. are: (a) Corporate family rating at (P)B1, (b) EUR6,850 million senior secured credit facilities (consisting of a EUR400 million revolving credit facility and EUR6,450 million of term loans) at (P)B1, (c) EUR700 million second lien facility at (P)B2 Summary Rating Rationale The corporate family rating reflects: (a) the competitive nature of the Italian market; (b) the expectation of low growth in overall fixed-line revenues and stable to modest growth expectations for the wireless market given the maturity of the Italian market; (c) the uncertainties associated with converting and/or gaining direct customers given strong competition as well as potential delays in unbundling the local loop; (d) the challenges facing Wind in increasing mobile average revenues per user (ARPU) given its previous strategy of focusing on increasing market share which has resulted in a more highly residential and pre-paid customer base than other operators; and (e) high financial leverage (pro-forma Adjusted Debt to EBITDAR of c. 7.0x) combined with the expectation of limited free cash flow generation in the near term. However, the rating is supported by: (a) Wind's significant and growing market share in the Italian mobile market, where it is the third entrant among four mobile operators; (b) the company's established presence in the Italian fixed line market where it operates under the Infostrada brand; (c) the company's extensive mobile and fixed line network within Italy and the potentially significant convergence advantages that may result; (d) the relatively favorable regulatory environment in which Wind operates (particularly with respect to the mobile business); (e) the demonstrated strong track record of management in executing and delivering their business plan to date; and (f) the potential upside resulting from synergies with Orascom Telecom. The stable outlook reflects the strength of the underlying operating cash flow and operating margins of the company as well as management's commitment to reduce debt. However, the company's high financial indebtedness is currently constraining the rating and consequently a demonstrated reduction in levels of indebtedness (such that Adjusted Debt to Adjusted EBITDA falls below 6x and Adjusted RCF to Net Adjusted Debt comfortably exceeds 10%) would be required for any positive momentum in the rating. The rating is likely to be negatively impacted if sustained underperformance from plan resulted in reduced headroom against the financial covenants included in the company's senior credit facilities and a consequent deterioration in liquidity. Further, there would likely be downward pressure on the rating should the competitive environment in Italy substantially change as a result of the presence of the fourth operator (H3G), thereby leading to higher subscriber acquisition costs (SACs) and/or marketing costs which could negatively impact Wind's mobile margins. Key Credit Risks Wind faces strong competition in all of its markets, primarily from Telecom Italia ("TI" -- rated Baa2), which still enjoys a significant market position in its domestic markets in wireline, wireless and the Internet despite liberalization of the market, as well as from Vodafone Italy in the wireless market and, to a lesser extent, H3G. Furthermore, since Moody's expects growth in the fixed-line market to be limited, competition in the wireline sector is expected to remain intense as TI acts to defend its strong position (e.g. TI's recent win-back campaign resulted in indirect subscriber losses in Infostrada over the last eighteen months) and other operators (e.g. Fastweb and Tiscali) look to increase market share. Consequently Moody's believes that it will be challenging for Infostrada to increase its wireline customer base and notes that the conversion of direct customers may be impinged by potential delays in unbundling the local loop. With a current penetration of over 100%, the mobile market is viewed as mature and future growth is expected to be stable to modest and dependent for the most part on the take up of wireless data and 3G services. Consequently competition for mobile subscribers is likely to intensify as Wind and H3G look to increase their market share at the expense of TIM and Vodafone Italy. Whilst historically SACs have been low, Moody's notes that H3G has been aggressively subsidizing handset costs in order to gain market share. To date H3G has targeted business and high ARPU users (which mainly impact TIM or Vodafone Italy given their respective customer bases) and Moody's cautions that the current status quo in the Italian mobile market (of low handset subsidies) may well change and could result in significantly higher SACs and advertising/marketing costs than evidenced historically. Although Wind's mainly pre-paid, low ARPU customer base in part mitigates the threat, a substantial shift in strategy of any of the existing mobile operators is likely to depress operating margins. Whilst Moody's recognizes Wind's success in rapidly building its mobile subscriber base, we note that the company's strategy has been to initially focus on market share with a low price offering which has resulted in a predominantly residential, pre-paid customer base with low ARPUs and churn rates that are currently higher than for TIM and Vodafone Italy. In addition, notwithstanding the improvements Wind has made in network quality (as demonstrated by increased accessibility and reduced dropped call rates), Wind's network coverage (by territory) marginally lags that of TI and Vodafone, and Wind is still perceived to have a lower network quality. Consequently, Moody's believes that it may be challenging for Wind to increase ARPUs given that to date price has been the key differentiator for Wind, the price sensitive nature of Wind's existing customer base, the competitive environment and Wind's historically lower presence in the north of Italy (which is Italy's wealthiest area). We note however that both churn and ARPU have been positively impacted in the growing Noi customer base (Wind's Noi product range offers consumers a number of free minutes for on-net calls). Additionally, increased subscriber take-up of Wind's differentiated i-mode services should also positively impact ARPUs. With pro-forma Adjusted Debt to EBITDAR of circa 7x, financial leverage is viewed as high. For the purposes of the adjusted debt calculation all financial debt of the Wind group (including the high yield and PIK bridge facilities) has been included as well as an adjustment for operating leases (based on 8x rental expense). Furthermore, cash flow metrics (with pro-forma Adjusted RCF to Net Adjusted Debt of around 10%) are viewed as weak. However, liquidity is viewed as satisfactory given the company's access to a Euro 400 million revolving credit facility (undrawn at close), limited scheduled debt amortization before June 2007 and the company's operating cash flow generation, although Moody's notes that in the near term free cash flow generation will be constrained due to capital investment (albeit mainly success related, given the low mandatory capex associated with the UMTS license conditions). Key Credit Positives Wind is a leading integrated telecom operator in Italy, where it is active in the fixed-line telephony market (through its Infostrada brand), the wireless market (under the Wind brand) and the Internet services market (where it operates under the Libero brand). Wind is the third entrant among four wireless operators in Italy and currently has almost 13 million subscribers and an 18.8% market share. Infostrada is the second largest fixed line operator in Italy in terms of revenues with 2.4 million customers and Libero is the leading Internet provider in Italy with a 39% Internet narrowband market share, 427k broadband subscribers and the leading Italian Internet Portal by pages viewed and number of users. Moody's recognizes the success of management to date in building the Wind business, in particular the mobile business which is the leading third operator in Europe in terms of subscribers and reached cash break even in 2004, slightly ahead of plan. Furthermore, Moody's acknowledges that Wind management's focus on fixed to mobile convergence ahead of other market participants could result in a competitive advantage for Wind (given their integrated network). Moody's views the regulatory environment in Italy as relatively favorable. On the mobile side, no further GSM/UMTS licenses will be awarded and the regulator has undertaken that mobile virtual network operator (MVNO) licenses will not be issued until 2011 at the earliest. However, Moody's notes that fixed-to-mobile termination rates have recently been reduced to bring Italy in line with the European average and that since Wind has recently been declared dominant in the termination market, its fixed-mobile termination revenues will decrease by c. 20% going forward. Nonetheless, Moody's recognizes that the asymmetry of termination charges between dominant operators in Italy continues to have a net positive effect on Wind's operating margins. In addition, revenues of the mobile operators could be further impacted as mobile-to-mobile tariffs are expected to become aligned to fixed-to-mobile rates, although the margin impact on Wind should be substantially mitigated by lower interconnect costs. With regards to wireline, Wind benefits from fixed-to-fixed collection and termination rates with TI that are below the E.U. average; however we note that Wind's current fixed-to-fixed Termination rates on direct customers are currently being challenged by TI and are expected to fall going forward. More positively, local loop unbundling (ULL) prices are currently the lowest in Europe, whilst shared access tariffs are also below the E.U. average, which benefits alternative operators such as Wind. That said, Moody's notes that constraints set by TI on ULL provisioning capacity may hinder the development of Wind's direct access customer base. Following the closing of the acquisition, Wind will be indirectly owned by the main shareholder of Orascom Telecom, a holding company with interests in mobile operations in countries such as Egypt, Tunisia, Algeria, Iraq, Bangladesh and Pakistan. Whilst Wind will be effectively ring-fenced from Orascom Telecom and will operate as a standalone entity, Moody's acknowledges that there are potential synergy benefits (e.g. in purchasing of network equipment and handsets), which could result in operating margin improvements for Wind. Transaction Overview In May 2005, Enel S.p.A. and Weather Investments II S.A.R.L. (Weather II), a company controlled by Mr. Naguib Sawiris, signed, together with other parties (including Enel Investment Holding B.V.), the agreement under which Enel Investment Holding B.V. agreed to transfer its shareholding in Wind to Weather II. The total enterprise value of the transaction was EUR12.138 billion. In order to fund the acquisition and to refinance its existing indebtedness, Wind plans to issue EUR6,850 million of senior secured credit facilities (including a EUR400 million revolving credit facility) and a EUR700 million second lien facility. Holding companies of Wind will issue a EUR1,250 million high yield bridge loan facility and a EUR500 million PIK bridge loan facility, proceeds of which will be used to fund the acquisition of Wind as well as transaction expenses. It is the current intention that the bridge facilities will be refinanced through the proceeds of a high yield notes and PIK notes issue. The acquisition of Wind will be completed in two steps. First, a holding company (Bidco) will acquire 62.33% of Wind and, subsequently, Bidco will acquire the remaining 37.67% via a put/call agreement with Enel (this is expected to occur in Q1 2006). Following completion of the transaction, Wind will be jointly owned by Weather II, a vehicle indirectly controlled by Mr. Naguib Sawiris, which will own 73.9%, and Enel, which will own 26.1%, through Weather Investments S.r.l. In addition to the 100% ownership of Wind, Weather will also own 50% + 1 share of Orascom Telecom. Weather's indirect shareholding in Orascom Telecom is outside the Wind financing group and has not been factored into the corporate family rating for Wind. The assigned ratings assume there will be no material variations to the draft legal documentation reviewed by Moody's and assume that these agreements are legally valid, binding and enforceable. Structural Issues Whilst the high yield and PIK bridge facilities are to be issued by holding companies of Wind, they have been factored into the corporate family rating of Wind since they are reliant on the cash flows of Wind for debt servicing and principal repayment. The senior secured credit facilities are contractually senior to the second lien facility and both contractually and (initially) structurally senior to the bridge facilities and will benefit from an extensive security package (including tangible asset security from Wind and its material subsidiaries as well as a pledge over Wind's shares), the rating of (P)B1, i.e. at the same level as the corporate family rating, reflects their relatively high proportion of the capital structure (74% assuming the revolver is fully drawn). The (P)B2 rating of the second lien facility reflects its contractual subordination to the senior secured credit facilities but also its contractual and (initially) structural seniority to the bridge facilities. Company Summary Headquartered in Rome, Italy, Wind is a leading integrated telecom operator in Italy, active in the fixed-line, mobile and Internet services markets and operating under the Wind, Infostrada and Libero brands. For the financial year ending 31 December 2004, the company reported revenues of EUR4,715 million and EBITDA of EUR1,554 million. CONTACT: MOODY'S INVESTORS SERVICE LTD. London David G. Staples Managing Director Corporate Finance Group Nicole Guest Asst Vice President - Analyst Corporate Finance Group For Journalists Phone: 44 20 7772 5456 ===================== N E T H E R L A N D S ===================== HAGEMEYER N.V.: To Cut Ties with Fuji Film ------------------------------------------ Hagemeyer N.V. has said it will discontinue its involvement in the Fuji Film business in the Netherlands towards the end of this year. In close consultation with the manufacturer, details will be worked out to secure an orderly continuation of the business concerned in the Netherlands. * * * Hagemeyer is a value added business-to-business (B2B) distribution services group focusing on the markets for electrical materials, safety and other MRO (Maintenance Repair and Operations) products in Europe, North America and Asia-Pacific. Currently over some 18, 000 people are working at Hagemeyer in 27 countries. Hagemeyer N.V. said in June it reached agreement in principle with a bank consortium of ABN AMRO Bank, ING Bank, Rabobank and NIB Capital Bank to refinance and improve its existing senior secured credit facility. These banks will jointly increase their share in the credit facility to Hagemeyer with approximately EUR240 million, which allows Hagemeyer to pay down all other 26 lenders in its current senior credit facility. In April, the Group reported total net interest bearing debt increased from EUR476 million at year-end 2004 to EUR535 million at March 31, 2005. Apart from the impact of foreign exchange movements, the increase in net debt in Q1 2005 is mainly due to seasonal influences. CONTACT: HAGEMEYER N.V. Rijksweg 69, P.O. Box 5111, 1410 AC Naarden The Netherlands Phone: + 31 (0)35 6957676 Fax: + 31 (0)35 6944396 Contact: Emilie de Wolf Web site: http://www.hagemeyer.com ROYAL SHELL: Former Chairman Raps U.K.'s FSA -------------------------------------------- Former Royal Dutch Shell Plc chairman Philip Watts has charged the United Kingdom's Financial Services Authority (FSA) of "mischief" for implicating him personally when it punished the company for overstating oil reserves, Bloomberg News reports. The FSA imposed a whopping GBP17 million (US$30 million) fine on the Company last year. Several suits and class actions were also filed against the oil giant, alleging it mislead investors by overstating reserves between 1998 and last year. The Company also lost its top-tier credit rating, and two executives, along with Mr. Watts, left the Company. Mr. Watts is starting a campaign to clear his name of wrongdoing in the hopes that it may help him defend himself in litigation against the Company and its officers. Mr. Watts has asked an independent tribunal to support his claim that the FSA "identified and prejudiced" him when it published findings of an inquiry into Shell and fined the company last July. The regulator, which didn't mention Mr. Watts' name in the penalty notice, rejected the accusations, but confirmed it is still probing Mr. Watts. The FSA's reference to matters suggesting Watts was guilty of "negligent wrongdoing is exactly the form of mischief" the law is designed to prevent, David Pannick QC, Mr. Watts' lawyer, told Bloomberg News. It "magnified" the unfairness because "when the final notice against Shell was issued the authority was still considering the role of Sir Philip," Mr. Pannick said. Both sides agreed, in separate arguments to the two-member Financial Services and Markets Tribunal, that Mr. Watts wasn't explicitly identified by name in the FSA's notice of the Shell penalty. FSA lawyers demanded that the case be dismissed and said the regulator hasn't reached conclusions about Watts' personal responsibility in the overstatement of reserves last year, Bloomberg News reports. "The FSA did not identify him and it did not prejudicially identify him," said Anthony Grabiner QC, representing the regulator, told Bloomberg News. "Even if it did identify him it certainly did not prejudice him. There is simply no reference to or singling out of any individual at all." 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 ============= R O M A N I A ============= GAVAZZI STEEL: Asset Sale Collects US$7 Million ----------------------------------------------- Ductil Steel-Buzau has reportedly paid US$6 billion for "Module 1" of bankrupt Gavazzi Steel S.A. Otelu Rosu's assets. The amount was endorsed to Romania's State Assets Resolution Authority (AVAS), which handled the auction in an effort to recover some of the company's debt, said Bursa. A portion of the money, according to the report, will go to salaries of the security guards who have been deployed in the firm's site since 2003 (ROL1.1 million). The firm's liquidator will be paid ROL80,000, while some amount will cover local taxes. Aside from Ductil Steel, Fil Invest has also transferred US$1 million to AVAS for "Module 2" of the company's properties. The report added that funds collected in the future will be used to cover mortgage fees, overdue salaries and other debt. CONTACT: STATE ASSETS RESOLUTION AUTHORITY (AVAS) 50 Cpt. Alex. Serbanescu Street Sector 2, Bucharest Romania Phone: (004021) 3036122 Fax: (004021) 3036521 or (004021) 3036457 E-mail: presa@avas.gov.ro or infopublic@avas.gov.ro DUCTIL STEEL-BUZAU 1, Aleea Industriilor, 120224 Buzau, Romania Phone: +40 238 - 405 102 or +40 238 - 405 104 Fax: +40 238 - 722 057 E-mail: office@ductilsteel.ro Website: http://www.ductilsteel.ro =========== R U S S I A =========== BELORETSKIY FACTORY: Hires Insolvency Manager from Bashkortostan ---------------------------------------------------------------- The Arbitration Court of Bashkortostan republic has commenced bankruptcy supervision procedure on open joint stock company Beloretskiy Factory Of Mechanized Instrument. The case is docketed as A07-14487/05-G-KhRM. Mr. N. Lipey has been appointed temporary insolvency manager. Creditors have until Aug. 2, 2005 to submit their proofs of claim to 450032, Russia, Bashkortostan republic, Ufa-32, Post User Box 116. CONTACT: BELORETSKIY FACTORY OF MECHANIZED INSTRUMENT 453500, Russia, Bashkortostan republic, Beloretsk, Tyulenina Str. 14 Mr. N. Lipey Temporary Insolvency Manager 450032, Russia, Bashkortostan republic, Ufa-32, Post User Box 116 Phone/Fax: 8(3472) 60-40-20 BIRSKIY ELEVATOR: Creditors Have Until Next Week to File Claims --------------------------------------------------------------- The Arbitration Court of Bashkortostan republic has commenced bankruptcy supervision procedure on open joint stock company Birskiy Elevator. The case is docketed as A07-12389/05-G-ADM. Mr. M. Nigmatullin has been appointed temporary insolvency manager. Creditors have until Aug. 2, 2005 to submit their proofs of claim to Russia, Bashkortostan republic, Birsk, Krasnoarmeyskaya Str. 5a. A hearing will take place on Sept. 20, 2005. CONTACT: Mr. M. Nigmatullin Temporary Insolvency Manager Russia, Bashkortostan republic, Birsk, Krasnoarmeyskaya Str. 5a EVRAZ GROUP: Corporate Credit Rated 'B+'; Outlook Positive ---------------------------------------------------------- Standard & Poor's Rating Services assigned its 'B+' long-term corporate credit rating to Russian steel company Evraz Group S.A. and its core subsidiary Mastercroft Ltd. The outlook on both companies is positive. In addition, a 'ruAA-' Russia national scale rating was assigned to Evraz and Mastercroft. Standard & Poor's also assigned its 'B+' senior unsecured debt rating to the US$175 million notes due 2006 and $300 million notes due 2009 issued by special-purpose vehicle Evraz Securities S.A. and guaranteed by Mastercroft. "The ratings on Evraz and Mastercroft reflect the companies' complex organizational and ownership structure with, historically, significant related party transactions, and a short track record as a single group," said Standard & Poor's credit analyst Elena Anankina. "This is offset by extensive upstream integration into iron ore and coking coal, which helps to control costs through the cycle, a strong market position in long steel in Russia, and diversified end markets (including exports)." Evraz' management team has a good record of successfully integrating and restructuring formerly underperforming assets over the past few years. The ratings on Evraz and Mastercroft are currently equalized because both entities have almost the same asset base, liabilities, and cash flows. "Standard & Poor's expects that the group will capitalize on its core advantage, upstream vertical integration, and demonstrate a track record of sustainable actual (not only pro forma) profitability and cash flow generation," said Ms. Anankina. These factors could lead to an upgrade (likely one notch) in the coming one to two years, if the group demonstrates the ability to reduce debt and if any acquisitions would enhance the group's business profile (for example, if the recent Vitkovice Steel AS integration proceeds favorably). An upgrade would also require an improvement in the group's liquidity situation. Also, it is assumed that the group will adjust its investment program depending on the industry environment and access to capital, and that management will stick to its target to keep total debt to EBITDA below 1.5x. Standard & Poor's will closely monitor the group's financial policy in areas such as acquisitions and leverage. No major debt-financed acquisition is factored into the current ratings or outlook. 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: Client Support Europe (44) 20-7176-7176; 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 on: media_europe@standardandpoors.com. CONTACT: STANDARD AND POOR'S RATING SERVICES Group E-Mail Address CorporateFinanceEurope@standardandpoors.com GARANT-STROY: Claims Deadline Expires Next Week ----------------------------------------------- The Arbitration Court of Chuvashiya republic has commenced bankruptcy supervision procedure on limited liability company Garant-Stroy (TIN 2128045746). The case is docketed as A79-4449/2005. Mr. N. Maksimov has been appointed temporary insolvency manager. Creditors have until Aug. 2, 2005 to submit their proofs of claim to 429960, Russia, Chuvashiya republic, Novocheboksarsk, 10th Pyatiletki Str. 35-109. A hearing will take place on Oct. 4, 2005, 3:15 p.m. at the Arbitration Court, Room #209. CONTACT: GARANT-STROY 428003, Russia, Chuvashiya republic, Cheboksary, Engelsa Str. 28-37 Mr. N. Maksimov Temporary Insolvency Manager 429960, Russia, Chuvashiya republic, Novocheboksarsk, 10th Pyatiletki Str. 35-109 KOTLASSKIY LESOPILNYJ: Bankruptcy Hearing Set November ------------------------------------------------------ The Arbitration Court of Arkhangelsk region has commenced bankruptcy supervision procedure on limited liability company Kotlasskiy Lesopilnyj Derevoobrabatyvayushiy Combine. The case is docketed as AO-5-6101/05-8. Mr. P. Nizov has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 170000, Russia, Tver, Post User Box 121. A hearing will take place on Nov. 25, 2005, 2:00 p.m. CONTACT: KOTLASSKIY LESOPILNYJ DEREVOOBRABATYVAYUSHIY COMBINE 163500, Russia, Arkhangelsk region, Kotlas, S-Shedrina Str. 2b Mr. P. Nizov Temporary Insolvency Manager 170000, Russia, Tver region, Post User Box 121 The Arbitration Court of Arkhangelsk region 163000, Russia, Arkhangelsk region, Loginova Str. 17 METROMEDIA INTERNATIONAL: To Close Sale of PeterStar Next Week -------------------------------------------------------------- Metromedia International Group, Inc., the owner of interests in various communications and media businesses in the countries of Russia and Georgia, on Wednesday agreed that the parties to the agreement concerning the pending sale of the Company's interest in PeterStar ZAO have reached an agreement to close the PeterStar Sale on August 1, 2005, rather than August 8, 2005 as previously announced. The Company also affirmed its commitment to utilize a portion of the proceeds of the PeterStar Sale to redeem all of the Company's outstanding 10 1/2% Senior Notes due 2007. The Company presently expects to complete the redemption on August 8, 2005. About Metromedia International Group Through its wholly owned subsidiaries, the Company owns interests in communications and media businesses in the countries of Russia and Georgia. Since the first quarter of 2003, the Company has focused its principal attentions on the continued development of its core telephony businesses, and has substantially completed a program of gradual divestiture of its non-core cable television and radio broadcast businesses. The Company's core telephony businesses includes Magticom, Ltd., the leading mobile telephony operator in Tbilisi, Georgia, and Telecom Georgia, a well-positioned Georgian long distance telephony operator. CONTACT: METROMEDIA INTERNATIONAL GROUP, INC. Ernie Pyle Phone: 704-321-7380 E-mail: investorrelations@mmgroup.com MOS: Insolvency Manager Takes over Company ------------------------------------------ The Arbitration Court of Moscow has commenced bankruptcy supervision procedure on limited liability company Mos. The case is docketed as A40-26503/05-123-46B. Mr. E. Vrubel has been appointed temporary insolvency manager. Creditors have until Aug. 2, 2005 to submit their proofs of claim to 105037, Russia, Moscow, Post User Box 8. CONTACT: MOS 115093, Russia, Moscow region, Lyusinovskaya Str. 36/50 Mr. E. Vrubel Insolvency Manager 105037, Russia, Moscow region, Post User Box 8 MOVABLE MECHANIZED: Undergoes Bankruptcy Supervision Procedure -------------------------------------------------------------- The Arbitration Court of Bashkortostan republic has commenced bankruptcy supervision procedure on open joint stock company Movable Mechanized Column-10 (TIN 0225007284). The case is docketed as A07-10113/05-G-KhRM. Mr. A. Dergachev has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 450057, Russia, Bashkortostan republic, Ufa, Oktyabrskiy Revolyutsii Str. 54, Apartment 14. CONTACT: MOVABLE MECHANIZED COLUMN-10 452260, Russia, Bashkortostan republic, Ilishevskiy region, Verkhneyarkeevo, Kuybysheva Str. 133 Mr. A. Dergachev Temporary Insolvency Manager 450057, Russia, Bashkortostan republic, Ufa, Oktyabrskiy Revolyutsii Str. 54, Apartment 14 RAS: Deadline for Proofs of Claim Next Week ------------------------------------------- The Arbitration Court of Moscow region has commenced bankruptcy supervision procedure on close joint stock company Ras. The case is docketed as A40-27657/05-36-61B. Mr. P. Tumbasov has been appointed temporary insolvency manager. Creditors have until Aug. 2, 2005 to submit their proofs of claim to: (a) RAS 115419, Russia, Moscow region, Post User Box 36 (b) Temporary Insolvency Manager 125222, Russia, Moscow region, Post User Box 44 (c) The Arbitration Court of Moscow region 107802, Russia, Moscow region, N. Basmannaya Str. 10 A hearing will take place on Sept. 22, 2005, 10:00 a.m. at the Arbitration Court of Moscow region, hall #709. SPASSKOYE BUILDING-ASSEMBLY: Under Bankruptcy Supervision --------------------------------------------------------- The Arbitration Court of Primorye region has commenced bankruptcy supervision procedure on close joint stock company Spasskoye Building-Assembly Corporation Dal-Steel-Construction. The case is docketed as A-51-3859/2005 15-72B. Mr. G. Grachev has been appointed temporary insolvency manager. Creditors have until Aug. 2, 2005 to submit their proofs of claim to 690024, Russia, Primorye region, Vladivostok, Makovskogo Str. 179, Apartment 31. A hearing will take place on Sept. 7, 2005. CONTACT: SPASSKOYE BUILDING-ASSEMBLY CORPORATION DAL-STEEL-CONSTRUCTION Russia, Primorye region, Spassk-Dalnij, Kommunarov Str. 3a Mr. G. Grachev Temporary Insolvency Manager 690024, Russia, Primorye region, Vladivostok, Makovskogo Str. 179, Apartment 31 TSERIT INVEST: Under External Management Procedure -------------------------------------------------- The Arbitration Court of Moscow has commenced external management bankruptcy procedure on open joint stock company Tserit Invest (OGRN 1027739219529). The case is docketed as A54580/04-101-28B. Mr. A. Alyukaev has been appointed external insolvency manager. CONTACT: TSERIT INVEST 129110, Russia, Moscow region, Mira Pr. 72 Mr. A. Alyukaev External Insolvency Manager 107023, Russia, Moscow region, Post User Box 2 YOSHKAR-OLINSKIY FACTORY: Falls into Bankruptcy ----------------------------------------------- The Arbitration Court of Volgo-Vyatskiy region has commenced external management bankruptcy procedure on open joint stock company Yoshkar-Olinskiy Factory Of Timber Engineering. The case is docketed as A38-4884-11/10-2005 (A38-4884-11/144-2004). Mr. N. Senchenko has been appointed external insolvency manager. CONTACT: YOSHKAR-OLINSKIY FACTORY OF TIMBER ENGINEERING 424037, Russia, Mariy-El republic, Yoshkar-Ola, Suvorova Str. 7 Mr. N. Senchenko External Insolvency Manager 424037, Russia, Mariy-El republic, Yoshkar-Ola, Suvorova Str. 7 YUKOS OIL: Allowed to Increase Claims vs. Yugansk Buyer ------------------------------------------------------- The Moscow Arbitration Court granted a petition Monday filed by embattled oil company Yukos Oil to increase recoverable losses from the sale of Yuganskneftegaz, formerly the company's main production unit, from RUB324.298 billion (US$11.35 billion, or EUR9.32 billion) to RUB398.792 billion (US$13.96 billion, or EUR11.46 billion), RIA Novosti reports. The court decided the case was not fully ready to be heard and postponed the hearing until August 30. It also ordered Yukos to translate into Russian English documents specifying the sums of its claims. The Russian Federal Property Fund, some Russian companies and the Finance Ministry are defendants in the case. The Federal Anti-Trust Service, Yuganskneftegaz and the Moscow main departments of the Justice Ministry and the Federal Bailiff Service are acting as third parties in the hearings. The Yukos defense team claims the auction violated several Russian and international law, including the Convention on the Protection of Individuals' Rights and Freedoms. Yukos also said the Russian Federal Property Fund illegitimately understated the initial share package price and breached the procedure of announcing and holding the bidding. The Bailiff Service passed its decision on auctioning off Yuganskneftegaz shares to pay for tax arrears on November 18, 2004. In December, the Russian Federal Property Fund sold the shares for US$9.35 billion to the unknown Baikal Finance Group, which was subsequently bought by Russian state-owned oil company Rosneft. According to the Russian Justice Ministry, Yukos owed more than US$2 billion in back taxes as of June 29, 2004. * * * Yukos is an oil-and-gas company headquartered in Moscow, Russia. It filed for chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742). But the case was dismissed in February 24, 2005. Zack A. Clement, Esq., C. Mark Baker, Esq., Evelyn H. Biery, Esq., John A. Barrett, Esq., Johnathan C. Bolton, Esq., R. Andrew Black, Esq., Fulbright & Jaworski, LLP, represent the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed $12,276,000,000 in total assets and $30,790,000,000 in total debt. CONTACT: YUKOS OIL Web site: http://www.yukos.com/ International Information Department Hugo Erikssen Phone: +7 095 540 6313 E-mail: inter@yukos.ru Investor Relations Contact Alexander Gladyshev Phone: +7095 788 00 33 E-mail: investors@yukos.ru YUKOS OIL: Court Evaluates 1995 Loans-for-shares Auction -------------------------------------------------------- The Moscow Court of Arbitration has started examining a lawsuit by the Rusatommet law firm declaring the results of a 1995 Yukos Oil loans-for-shares auction null and void, RIA Novosti reports. "They are studying the possibility of lawsuits regarding other auctions. LUKOIL, Nornickel and shipping companies are all in the risk zone," Rusatommet spokesman Vladimir Gunich said Monday. Oligarch and ONEXIMbank President Vladimir Potanin, who was once deputy prime minister in Viktor Chernomyrdin's government, suggested holding loans-for-shares auctions. Acting on behalf of a banking consortium, Mr. Potanin suggested loaning money to the Russian government in exchange for federally owned stakes in major Russian enterprises. It became obvious then that the federal budget lacked the money to repay the loans. Consequently, this concept implied the long-term privatization of state-run enterprises through the sale of pledged shares. "Maybe only a political decision is possible here. This decision could be most likely explained by Yukos' lawsuits with regard to Russia in Western courts, rather than by alleged damage to the plaintiff," Eldar Nazmutdinov, legal counsel at the investment company Prospect, said. However, it seems that the type of auctions in questions are the only area where the government had jurisdiction. "Loans-for-shares auctions are the only transactions where the state can do something because such auctions did not amount to privatization," Andrei Bunich, president of the Russian Entrepreneurs and Leaseholders Union, said. He believes that the state would return its assets, if the court annuls auction results. Current enterprise owners would also benefit from this. "A class of unsure owners has emerged in Russia. The Sword of Damocles, i.e. loans-for-shares auctions, is hanging above them. Instead of opening criminal cases, it would be better to untie this knot at the court of arbitration," he said. But some experts say more lawsuits are not the answer. "Resumed lawsuits in this category would lead to all-out economic confusion. It is one thing to 'pluck' the half-dead Yukos. And it is an entirely different matter to audit all companies," said Arkady Volsky, president of the Russian Union of Industrialists and Entrepreneurs. * * * Yukos is an oil-and-gas company headquartered in Moscow, Russia. It filed for chapter 11 protection on Dec. 14, 2004 (Bankr. S.D. Tex. Case No. 04-47742). But the case was dismissed in February 24, 2005. Zack A. Clement, Esq., C. Mark Baker, Esq., Evelyn H. Biery, Esq., John A. Barrett, Esq., Johnathan C. Bolton, Esq., R. Andrew Black, Esq., Fulbright & Jaworski, LLP, represent the Debtor in its restructuring efforts. When the Debtor filed for protection from its creditors, it listed $12,276,000,000 in total assets and $30,790,000,000 in total debt. CONTACT: YUKOS OIL Web site: http://www.yukos.com/ International Information Department Hugo Erikssen Phone: +7 095 540 6313 E-mail: inter@yukos.ru Investor Relations Contact Alexander Gladyshev Phone: +7095 788 00 33 E-mail: investors@yukos.ru ============= U K R A I N E ============= TRADE LINK: Succumbs to Bankruptcy ---------------------------------- The Economic Court of Dnipropetrovsk region commenced bankruptcy proceedings against Trade Link Ukraine Dnipro (code EDRPOU 23942383) after finding the foreign investments enterprise insolvent. The case is docketed as B24/20/05. Mr. Volodimir Glyadchenko has been appointed liquidator/insolvency manager. The company holds account number 26002108195001 at CB Privatbank, Dnipropetrovsk branch, MFO 305299. CONTACT: TRADE LINK UKRAINE DNIPRO 49041, Ukraine, Dnipropetrovsk region, Pratsi avenue, 9 Mr. Glyadchenko Volodimir Liquidator/Insolvency Manager 49000, Ukraine, Dnipropetrovsk region, Kirov Avenue, 96/13 Economic Court Of Dnipropetrovsk region 49600, Ukraine, Dnipropetrovsk region, Kujbishev Str. 1a =========================== U N I T E D K I N G D O M =========================== 365 NETWORK: Hires Begbies Traynor Administrator ------------------------------------------------ Name of company: 365 NETWORK VISION LIMITED (Company No 03450563) Nature of Business: Manufacturer of Electrical Equipment Address of Registered Office: Brook House, 56 Guildford Street, Chertsey, Surrey KT16 9BE Date of Appointment: July 15, 2005 Joint Administrators' Names and Address: Lloyd Biscoe and Jamie Taylor (IP Nos 009141 and 002748), both of Begbies Traynor, The Old Exchange, 234 Southchurch Road, Southend-on-Sea, Essex SS1 2EG CONTACT: BEGBIES TRAYNOR The Old Exchange, 234 Southchurch Road Southend-on-Sea SS1 2EG Phone: 01702 467255 Fax: 01702 467201 E-mail: southend@begbies-traynor.com Web site: http://www.begbies.com AARDWORK SOFTWARE: Administrators Take Over Business ---------------------------------------------------- Name of company: AARDWORK SOFTWARE LIMITED (Company No 04211023) Nature of Business: Software Publishing Address of Registered Office: 36 Main Street, Over Norton, Oxfordshire OX7 5PR Date of Appointment: July 13, 2005 Administrators' Names and Address: Robert C. Keyes and Gareth W. Roberts (IP Nos 1016 and 1162), both of Hurst Morrison Thomson, 5 Fairmile, Henley-on-Thames, Oxfordshire RG9 2JR * * * Aardwork Software Ltd. is a developer of intelligent version management and control software solutions. The company is headquartered in the heart of the Cotswolds, United Kingdom. It was founded in 2002. Visit http://www.aardwork.com/for more information. CONTACT: AARDWORK SOFTWARE LTD 37 Main Street Over Norton Nr Chipping Norton Oxfordshire OX7 5PR United Kingdom Phone: +44 (0) 1608 643094 Fax: +44 (0) 1608 641566 HURST MORRISON THOMSON CORPORATE RECOVERY LLP 5 Fairmile, Henley on Thames, Oxfordshire RG9 2JR Phone: +44 (0) 1491 579866 Fax: +44 (0) 1491 573397 E-mail: hmt@hmtgroup.co.uk ABBEY MEDIA: Administrators from KPMG Move in --------------------------------------------- Name of company: ABBEY MEDIA SUPPLIES LTD (Company No 04027763) Nature of Business: Computer Hardware/Software Address of Registered Office: St Nicholas House, 31 Park Row, Nottingham NG1 6FQ Date of Appointment: July 14, 2005 Administrators' Names and Address: James Douglas Ernle Money and Mark Jeremy Orton (IP Nos 1317 and 8846), both of KPMG LLP, St Nicholas House, Park Row, Nottingham NG1 6F * * * Abbey Media offers all types of hardware, software, consumables, accessories and peripherals including obsolete and hard-to-find items from most major manufacturers. Visit http://www.abbeymg.net for more information. CONTACT: ABBEY MEDIA SUPPLIES LTD Field House, Field Street Shepshed Loughborough LE12 9AL Leicestershire Phone: 01509 560560 KPMG LLP St Nicholas House Park Row Nottingham Nottinghamshire NG1 6FQ Phone: 0115 935 3535 Fax: 0115 935 3500 ABSOLUTE BRIDGING: High Court Orders Liquidation ------------------------------------------------ Company Name: Absolute Bridging Direct Ltd. Suite 25 Merchantman House Eastern Perimeter Road, Heathrow, TW6 2SR Company Registration Number: 04181038 Court: High Court of Justice Date of Filing Petition: 19 October 2004 No. of Matter: 006388 of 2004 Date of Winding-up Order: 13 July 2005 Official Receiver's Address: 21 Bloomsbury Street, London, WC1B 3SS ALLIED DOMECQ: Sold to Pernod Ricard ------------------------------------ As announced on Tuesday, Pernod Ricard S.A. has completed its acquisition of Allied Domecq PLC. Previously, the offer was approved by regulatory authorities and by shareholders of both Allied Domecq and Pernod Ricard. Allied Domecq holds approximately 51% of Corby Distilleries Limited's outstanding voting Class A common shares. With the completion of the acquisition, Pernod Ricard became Corby's ultimate majority shareholder. Subject to the outcome of further discussions, including the evaluation of its Canadian business strategy, Pernod Ricard has informed Corby that it intends to retain Corby as the marketer and distributor in Canada of the former Allied Domecq brands that it retains. Separately, Pernod Ricard has agreed to sell to Fortune Brands several assets, brands, and businesses, including Canadian Club whisky, Courvoisier cognac, Maker's Mark bourbon, and Sauza tequila, all of which are currently distributed in Canada by Corby. In fiscal 2004, the brands intended to be sold to Fortune Brands accounted for 16% of Corby's sales volume but represented approximately 4% of the Company's net operating revenue, since Corby only earns commission income on these brands. Corby does not anticipate any disruption of production of its owned-brands, which were previously produced under agreement by Allied Domecq. Krystyna Hoeg, President and Chief Executive Officer of Corby stated that "Corby welcomes its new majority shareholder and looks forward to partnering with Pernod Ricard in Canada." CONTACT: CORBY John Nicodemo, Chief Financial Officer Phone: (416) 369-1859 http://www.corby.ca ALLIED DOMECQ Media enquiries: Stephen Whitehead, Director, Group Corporate Affairs Phone: +44 (0) 7880 783532 +44 (0) 20 7009 3927 CARDEW GROUP Anthony Cardew Phone: +44 (0) 20 7930 0777 Investor enquiries: Peter Durman, Director, Group Investor Relations Phone: +44 (0)7771 974817 ALLIED DOMECQ: Ratings Downgraded to Baa3/P-3 --------------------------------------------- Moody's Investors Service assigned a Baa3 long-term and a Prime-3 short-term senior unsecured guaranteed issuer ratings to Pernod Ricard S.A. The outlook on the ratings is negative. The ratings reflect Pernod Ricard's completed acquisition of Allied Domecq plc. As issuer ratings, they also factor in a package of guarantees equivalent to the guarantees put in place for the bank loans recently signed by Pernod Ricard to finance the acquisition of Allied Domecq. This is the first time that Moody's has assigned ratings to Pernod Ricard. At the same time Moody's downgraded the long-term unsecured ratings of Allied Domecq to Baa3 from Baa1 and the short-term ratings of its Commercial Paper programs to Prime-3 from Prime-2. Allied Domecq's ratings remain on review for further possible downgrade in view of the subordination to which its bonds and Commercial Paper may be subject in the event that they fail to benefit from a guarantee package comparable to that put in place on the bank loans. The Baa3 rating of Pernod Ricard reflects Moody's view that the company's financial profile will remain constrained for a number of years as a result of its acquisition of Allied Domecq Group. However, it also takes into account the expectation that the acquisition will create a global company focused on alcoholic beverages with a comprehensive and well balanced portfolio that will be significantly diversified in terms of both geography and categories, with top global brands likely to drive strong growth supported by brand equity and expected sustained marketing support. The Baa3 rating thus reflects the balance between the strong business profile and the weak metrics, with the assumption that the company will be able to reduce debt, initially by means of asset disposals and from 2007 by generating free cash-flow. The financial profile of Pernod Ricard is assumed to reflect these events: (a) Allied Domecq has been acquired on 26 July 2005 for a total consideration of EUR10.7 billion, in addition to the assumption of debt estimated at around EUR2.7 billion. The financing scheme for the acquisition includes: (i) the disposal of a number of brands to Fortune Brands (for a consideration of around EUR4.0 billion), (ii) Pernod Ricard equity (EUR2 billion), (iii) the disposal of Bushmills (EUR0.3 billion), and (iv) new debt for the remainder; In addition, Pernod Ricard may also sell Montana brands if Diageo decides to exercise the call option it has agreed with the company. (b) The expected conversion of the company's 'Oceane' convertible bonds into equity will reduce indebtedness in the near term by close to EUR500 million; and (c) A EUR9 billion financing package that has been committed by banks should ensure sufficient financing and liquidity until 2010, based on Moody's current estimate. Before the sale of Montana but after the Oceane conversion and the disposal of brands to Fortune Brands and the disposal of Bushmills, Moody's expects net on-balance-sheet debt to amount to around EUR8.6 billion. In addition, Pernod Ricard intends to sell the QSR businesses, which Moody's assumes should be achieved by June 2006, for an expected consideration in excess of EUR1 billion. Although Pernod Ricard has identified cost and revenue synergies, Moody's notes that these will require restructuring expenses in the first two years following the acquisition in order to enable up to EUR300 million in annual synergies to be generated by June 2007. Total free cash-flow generation in the first two years after the acquisition is expected to be very limited in view of the restructuring costs and the very gradual realization of synergies. Only after 2007, when synergies have been achieved, is free cash flow expected to be significant, at around EUR450-500 million, allowing for more rapid debt reduction. The acceptance of very constrained credit metrics for Pernod Ricard in the context of the rating category during the period immediately following the acquisition reflects the very solid operating profitability and the stable cash-flow generation characteristics of the industry. It also takes into account the fact that in this industry operations require a relatively high level of working capital, in particular inventories, which are assumed to have a stable value and therefore to not be at risk of write-downs. Pernod Ricard's Baa3 rating is also largely based on Moody's prospective view that execution risks are moderate and therefore that acceptable credit metrics for the rating category will be achieved as planned by June 2008. However, Moody's will monitor the company's rebuilding of its credit metrics over time. Although these metrics will initially be stretched, the rating agency expects Retained Cash-flow (RCF) to net adjusted debt before working capital to improve to around 11-12% in the year closing June 2008 after the anticipated synergies have been achieved, which would position the company well within its category. On the back of restructuring expenses, RCF will be very low in the first two years after the acquisition. However, net adjusted debt to EBITDAR should not exceed 5.4 times after the disposal of QSR and would be expected to drop to materially below 5 times by June 2008. The disposal of Montana brands may also contribute to further deleveraging but is not a condition for the sustainability of the Baa3 rating. The negative outlook on the Pernod Ricard ratings reflects these execution risks: (a) Managing the Allied Domecq portfolio in the immediate period following the acquisition, (b) The transfer of assets to Fortune Brands, (c) Reorganizing the distribution activities of the merged group, (d) Restructuring in order to implement expected synergies, (e) The disposal of QSR As noted above, Moody's broadly concludes that the execution risks are moderate and manageable. The rating agency takes particular comfort from the company's track record following its acquisition of Seagram's. Nevertheless, in view of the number of steps to be achieved and the high leverage, the company will have limited room for maneuver. Should it fail to achieve one of these steps, a rating downgrade would be considered. Furthermore, as Pernod Ricard will have very limited flexibility over the next two years, a failure to achieve the expected free cash-flow generation and credit metrics on the back of weaker than expected operating performance or new acquisitions would also put pressure on the ratings. On the other hand, if the various measures are executed as expected and the generation of synergies appears to be on track, a change in the outlook to stable would be a likely outcome. The downgrade of Allied Domecq's senior unsecured ratings reflects the fact that its acquisition by Pernod Ricard increases financial risk as a result of the higher leverage, although the new group will have a stronger business profile. The long-term ratings are expected to remain on review for further possible downgrade until such time as Pernod Ricard has made a decision with respect to whether a guarantee package will be established in favour of the Allied Domecq bonds. Pernod Ricard's bank facilities benefit from the guarantees of material subsidiaries defined as those representing individually more than 10% of group assets (including Allied Domecq assets and its subsidiaries). In the event that Allied Domecq's bonds and Commercial paper programs were to be guaranteed by the same entities (Pernod Ricard and group's principal subsidiaries), the ratings would be aligned with the guaranteed issuer ratings of Pernod Ricard. In the absence of such guarantees, Moody's will consider in its review, subordination implications for Allied Domecq bond and CP holders in the context of the overall group corporate legal and debt structure which could result in a further downgrade of the debt ratings. These securities, for which Allied Domecq plc is either obligor or guarantor, were downgraded to Baa3 from Baa1 and remain on review for possible downgrade: (a) EMTNs: DEM500 million due December 2005, (b) EUR800 million due April 2006, (c) EUR600 million due June 2009; GBP450 million due April 2011, (d) GBP250 million due June 2014 These Commercial Paper programs, for which Allied Domecq plc is guarantor, were downgraded to Prime-3 from Prime-2 and remain on review for possible downgrade: (a) USD2.5 billion Global Commercial Paper program, (b) French Billet de Tresorerie program These ratings have been assigned to Pernod Ricard S.A. with negative outlook: (a) Senior unsecured guaranteed long-term issuer rating at Baa3, (b) Senior unsecured guaranteed short-term issuer rating at Prime-3, Pernod Ricard S.A., incorporated in Paris, is a leading worldwide wine and spirits company with annual sales of EUR3.6 billion in 2004 and pro-forma 2004 annual sales of around EUR5.6 billion pro forma for the acquisition of Allied Domecq and expected disposals. Allied Domecq PLC, headquartered in Bristol, England, is a leading international wines and spirits company. The company recorded sales of GBP3.2 billion in the financial year ended August 2004. CONTACT: MOODY'S FRANCE S.A. Paris Jean-Michel Carayon VP - Senior Credit Officer European Corporate Finance Paris Eric de Bodard Managing Director European Corporate Finance For Journalists Phone: 44 20 7772 5456 BESPOKE INVESTMENT: Goes into Liquidation ----------------------------------------- Company Name: Bespoke Investment Solutions Ltd. Shelton House, High Street, Woburn Sands Milton Keynes, Bucks, MK17 8SD Company Registration Number: 04341795 Court: Bristol District Registry Date of Filing Petition: 19 May 2005 No. of Matter: 2197 of 2005 Date of Winding-up Order: 13 July 2005 Official Receiver's Address: Sol House, 29 St Katherines Street, Northampton, NN1 2QZ BIRCHWOOD GARAGES: Names Grant Thornton Administrator ----------------------------------------------------- Name of company: BIRCHWOOD GARAGES (T WELLS) LIMITED (Company No 01946890) Nature of Business: Motor Retail Address of Registered Office: Lottbridge Drove, Eastbourne, East Sussex BN23 6PX Date of Appointment: July 15, 2005 Joint Administrators' Names and Addresses: Martin Gilbert Ellis (IP No 8678), Grant Thornton House, Melton Street, Euston, London NW1 2EP, and Nigel Ruddock (IP No 6877), The Explorer Building, Flemingway, Manor Road, Crawley RH10 9GT CONTACT: BIRCHWOOD GARAGES (T WELLS) LIMITED 16 Beeching Road, Bexhill-On-Sea, East Sussex TN39 3LJ Phone: 01424819608 GRANT THORNTON U.K. LLP Grant Thornton House Melton Street Euston Square London NW1 2EP Phone: 020 7383 5100 Fax: 020 7383 4715 Web site: http://www.grant-thornton.co.uk GRANT THORNTON UK LLP The Explorer Building Fleming Way Manor Royal Crawley West Sussex RH10 9GT Phone: 0870 381 7000 Fax: 0870 381 7005 E-mail: nigel.ruddock@gtuk.com BRITISH AMERICAN: Comparisons Become More 'Demanding' ----------------------------------------------------- British American Tobacco plc is worried of more demanding comparisons as it registers higher half-year profits, reports Sharecast. Chairman Jan du Plessis said: "Overall, we have had an exceptional half year, although I feel obliged to remind shareholders that the comparisons with 2004 will become more demanding, in the light of the one-off tax benefits that occurred in the second half of last year." There are also considerable uncertainties associated with forecasting finance costs under IFRS. The cigarette company disclosed results were affected by the merger of its U.S. unit with RJ Reynolds and the sale of the Etinera business. Earnings from operations were up 1% to GBP1.25 billion from GBP1.25 billion in 2004, despite a decline in revenues from GBP5.53 billion to GBP4.39 billion. Interim dividend increased 10% to 14.0 pence per share from 12.7 pence previously. Earlier, the company revealed plans of closing its Southampton factory within 18-24 months, which will result in the loss of some 530 jobs. In Ireland, its unit PJ Carroll & Co Ltd. has also proposed to stop manufacturing at its cigarette factory in Dundalk, Co. Louth, employing 66 people. The Southampton operation, which manufactures primarily for export, announced in June that 25% of its production would be localized to factories in Singapore and Korea. The company said: "We appreciate that this is a difficult step but the companies are committed to doing all they can to mitigate the impact of job losses." Labor union Amicus has reacted angrily to the decision saying that although a review was being carried out on the impact of a previous shift in production, the closure announcement was made without any prior consultation or discussion with the union. CONTACT: BRITISH AMERICAN TOBACCO PLC Globe House, 4 Temple Place London WC2R 2PG, United Kingdom Phone: +44-20-7845-1000 Fax: +44-20-7240-0555 Web site: http://www.bat.com CAMBRIDGE APPLIED: Tenon Recovery Administrators Enter Firm ----------------------------------------------------------- Name of company: CAMBRIDGE APPLIED TECHNOLOGIES LIMITED (Company No 04837969) Nature of Business: Cladding Maintenance and Repair Work Address of Registered Office: Unit 8, Greenham Park, Common Road, Witchford, Ely, Cambridgeshire CB6 2HF Address of Registered Office: Sherlock House, 73 Baker Street, London W1U 6RD Date of Appointment: July 14, 2005 Joint Administrators' Names and Address: Simon Robert Thomas and Stanley Donald Burkett-Coltman (IP Nos 8920 and 9181), both of Tenon Recovery, Sherlock House, 73 Baker Street, London W1U 6RD CONTACT: TENON RECOVERY Sherlock House 73 Baker Street London W1U 6RD Phone: 020 7935 5566 Fax: 020 7935 3512 E-mail: bakerstreet@tenongroup.com Web site: http://www.tenongroup.com CATERBEST LTD.: Gets Court Approval to Wind-up ---------------------------------------------- Company Name: Caterbest Ltd. C/o Begbies Traynor Chiltern House, 24-30 King Street Watford, WD18 0BP Company Registration Number: 02802369 Court: High Court of Justice Date of Filing Petition: 4 April 2005 No. of Matter: 002165 of 2005 Date of Winding-up Order: 13 July 2005 Official Receiver's Address: 21 Bloomsbury Street, London, WC1B 3SS CHARACTER GROUP: CEO Leaves Genoa Club on Five-year Ban ------------------------------------------------------- Further to the announcement made by the Group on 6 July 2005 regarding one of its Directors, Enrico Preziosi, the Board has been made aware that the Italian football governing body (FIGC) has found the Genoa Football and Cricket Club of which, Enrico Preziosi is President and a major shareholder, guilty of committing a sporting fraud. Subsequently, the Disciplinary Council of the FIGC has demoted Genoa Club to the Third Division (C1) of the Italian football league and also given a five-year ban from any involvement in sporting business to Enrico Preziosi. It is understood that the Genoa Club and Enrico Preziosi will be appealing against these rulings made by the Disciplinary Council of the FIGC to both the C.A.F. in Rome and in the Courts of Justice. However, in the interim, Enrico Preziosi has decided to resign as President of the Genoa Club although he remains a substantial shareholder. No other director of the Character Group has an interest in the Genoa Club. Enrico Preziosi, the Chief Executive Officer and Managing Director of the Character Group, is also President and the largest shareholder in Giochi Preziosi S.p.A., which holds 22.5% of the ordinary shares in the Character Group. Recently it was announced that 3i had acquired a 40% shareholding in GP. The Board of Character Group wishes to reiterate that it believes that this matter has not had nor will have any direct or indirect effect on the Group or its trading relationship with Giochi Preziosi S.p.A. The Company will keep the market and shareholders informed as appropriate. * * * In April, TCR-Europe reported that Character, the company behind last Christmas' best-selling toy Robosapien, dipped into the red in the first half. According to the Telegraph, the group's half-year pre-tax profit of GBP2.02 million translated into a loss of GBP1.93 million. Executive chairman Richard King said: "Business just dropped off a precipice in January. It just turned into a disaster area." Mr. King attributed the figure to tough market conditions and price cuts from rival high street retailers like Argos, which have prevented the group from carrying out any price increases. The fall of The Gadget Shop, which distributes the robots and the company's wide range of talking key rings, didn't help either. CONTACT: CHARACTER GROUP PLC 2nd Floor 86-88 Coombe Road New Malden Surrey, KT3 4QS Registered No: 3033333 Phone: 44 (0) 20 8949 5898 Fax: 44 (0) 20 8336 2585 Web site: http://www.charactergroup.plc.uk CHEETAH ACQUISTIONS: EGM Passes Winding-up Resolutions ------------------------------------------------------ At the Extraordinary General Meetings of Cheetah Acquisitions Limited held on 18 July 2005, the following Resolutions were passed as a Special Resolution and as an Ordinary Resolution respectively: "That each Company be wound up voluntarily, that Jonathan Sisson and Richard Setchim, of PricewaterhouseCoopers LLP, 12 Plumtree Court, London EC4A 4HT, be and are hereby appointed Joint Liquidators of each Company for the purposes of such winding-up, and any act required or authorized under any enactment to be done by the Joint Liquidators is to be done by all or any one or more of the persons for the time being holding office." CONTACT: PRICEWATERHOUSECOOPERS LLP Plumtree Court London EC4A 4HT Phone: [44] (20) 7583 5000 Fax: [44] (20) 7822 4652 Web site: http://www.pwc.com CHUBB GUARDING: Names PricewaterhouseCoopers Liquidator ------------------------------------------------------- At the Extraordinary General Meetings of Chubb Guarding Services Limited held on 18 July 2005, the following Resolutions were passed as a Special Resolution and as an Ordinary Resolution respectively: "That each Company be wound up voluntarily, that Jonathan Sisson and Richard Setchim, of PricewaterhouseCoopers LLP, 12 Plumtree Court, London EC4A 4HT, be and are hereby appointed Joint Liquidators of each Company for the purposes of such winding-up, and any act required or authorized under any enactment to be done by the Joint Liquidators is to be done by all or any one or more of the persons for the time being holding office." CONTACT: PRICEWATERHOUSECOOPERS LLP Plumtree Court London EC4A 4HT Phone: [44] (20) 7583 5000 Fax: [44] (20) 7822 4652 Web site: http://www.pwc.com CHUBB SECURITY: Liquidators from PwC Move in -------------------------------------------- At the Extraordinary General Meetings of Chubb Security Limited held on 18 July 2005, the following Resolutions were passed as a Special Resolution and as an Ordinary Resolution respectively: "That each Company be wound up voluntarily, that Jonathan Sisson and Richard Setchim, of PricewaterhouseCoopers LLP, 12 Plumtree Court, London EC4A 4HT, be and are hereby appointed Joint Liquidators of each Company for the purposes of such winding-up, and any act required or authorized under any enactment to be done by the Joint Liquidators is to be done by all or any one or more of the persons for the time being holding office." CONTACT: PRICEWATERHOUSECOOPERS LLP Plumtree Court London EC4A 4HT Phone: [44] (20) 7583 5000 Fax: [44] (20) 7822 4652 Web site: http://www.pwc.com DARENTH WEIGHING: Creditors Meeting Set in Two Weeks ---------------------------------------------------- The creditors of Darenth Weighing Services Limited (Company No 02612108) will meet on Aug. 10, 2005 at 10:30 a.m. It will be held at the offices of Baker Tilly, Lancaster House, 7 Elmfield Road, Bromley, Kent BR1 1LT. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to John David Ariel and Andrew John Tate of Baker Tilly, Lancaster House, 7 Elmfield Road, Bromley, Kent BR1 1LT not later than 12:00 noon, Aug. 9, 2005. * * * Darenth Weighing Services supplies and service weighing equipment and systems to the chemical, pharmaceutical, food, brewing and ready mix concrete industries since 1956. Visit http://www.darenthweighing.com/for more information. CONTACT: DARENTH WEIGHING SERVICES LTD The Oaks Business Village Lordswood Industrial Estate Chatham ME5 8LF Kent Phone: 01634 868333 Fax: 01634 868733 BAKER TILLY Lancaster House, 7 Elmfield Road, Bromley, Kent BR1 1LT Web site: http://www.bakertilly.co.uk DATACOMMS TECHNOLOGY: Bristol Court Accepts Winding-up Petition --------------------------------------------------------------- Company Name: Datacomms Technology UK Ltd. 5 High Street, Carlton, Bedford Bedfordshire, MK43 2JX Company Registration Number: 03725642 Court: Bristol District Registry Date of Filing Petition: 19 May 2005 No. of Matter: 2198 of 2005 Date of Winding-up Order: 13 July 2005 Official Receiver's Address: Sol House, 29 St Katherines Street, Northampton, NN1 2QZ ECOQUIP LTD.: Lures Potential Buyers with Strong Customer Base -------------------------------------------------------------- The administrators of EcoQuip Ltd. have said that there is a good opportunity for new owners to make a success of the business. Vivian Bairstow, who was appointed with Paul Davis as Joint Administrator from Begbies Traynor on July 7, said: "EcoQuip is fundamentally a good business that would seem to have every prospect of success under new ownership. "It has formed strong relationships with its customers, who are proud to be associated with the environmental benefits of using refurbished refrigeration units. As recent recipients of Investors in People status, as well as being the current Business in the Community Winner for Central England, it's clear that this business could do well again in the near future, under appropriate new owners." Oxfordshire-based EcoQuip Ltd., one of the country's best-known suppliers of refurbished commercial refrigeration display cabinets, has called in the Administrators after a decline in turnover, compounded by a new, much cheaper source of cabinets being available causing the refurbishment market to contract. In recent times, the Company was forced to reduce staffing, which up to 1 July numbered around 50 employees. Founded in 1987 as North and South Installations, the current management team took over in August 2001, and renamed the business EcoQuip Ltd. The principal task of the Administrators Begbies Traynor is to find a buyer for the business. EcoQuip's main business has been the refurbishment of refrigerated display cabinets as well as the supply of new cabinets manufactured in China to a high specification. Its customers include some of the U.K.'s major supermarket groups, including Tesco and Somerfield, numerous Co-ops, convenience store operator T & S Stores, and refrigeration equipment manufacturers Linde and Epta Group. A measure of its success was that it was the first U.K. and European refrigeration company to receive the coveted ISO14001 Environmental Accreditation. CONTACT: ECOQUIP LTD. Whitehorse Business Park, Stanford In The Vale, Oxon, SN7 8NY Phone: 01367 710077 Fax: 01367 710550 E-mail: mail@ecoquip.co.uk BEGBIES TRAYNOR (SOUTH) LLP 32 Cornhill, London EC3V 3BT Phone: 020 7398 3800 Fax: 020 7398 3799 Web site: http://www.begbies.com EO COM: Leeds Court Okays Liquidation ------------------------------------- Company Name: EO Com Solutions LLP Crosby, Merseyside, L23 5TR Court: Leeds District Registry No. of Matter: 477 of 2005 Date of Filing Petition: 5 May 2005 Date of Winding-up Order: 12 July 2005 The proceedings are related to these cases: (a) Court: Leeds District Registry No. 477 of 2005 Re John Carmichael-Drage, (b) In The Leeds District Registry No. 477 of 2005 Re: Stephanie a Carmichael-Drage, (c) In The Leeds District Registry No. 477 of 2005 Re Joanne Goulbourne, (d) In The Leeds District Registry No. 477 of 2005 EURODIS ELECTRONICS: Hires Deloitte & Touche Administrators ----------------------------------------------------------- Name of company: EURODIS ELECTRONICS PLC (Company No 02349231) EURODIS ELECTRON PLC (Company No 01723922) Nature of Businesses: Non-Trading and Holding Company Address of Registered Office: Electron House, 43 London Road, Reigate, Surrey RH2 9PW Date of Appointment: July 15, 2005 Administrators' Names and Address: Neville Bary Kahn and Nicholas Guy Edwards (IP Nos 008690 and 008811), both of Deloitte & Touche LLP, PO Box 810, 66 Shoe Lane, London EC4A 3WA * * * The Group was formed in 1995 by the merger of Electron House and Eurodis, a subsidiary of Elektrowatt. Eurodis rapidly deployed and developed a Pan-European infrastructure, offering premier services to customers and suppliers across Europe. In 2003, Eurodis currently generates annual sales of approximately EUR430 million. Visit http://www.eurodis.com/for more information. CONTACT: EURODIS ELECTRON PLC 43 London Road Reigate, Surrey RH2 9PW Phone: +44 (0) 1737 242464 Fax: +44 (0) 1737 229600 DELOITTE & TOUCHE LLP Athene Place 66 Shoe Lane London EC4A 3BQ Phone: 00 44 (0) 207 936 3000 Fax: 00 44 (0) 207 779 4001 Web site: http://www.deloitte.com EUROTRANS 2000: Goes into Liquidation ------------------------------------- Company Name: Eurotrans 2000 Limited Company Registration Number: 04052808 Address of Registered Office: 3 Clarendon Gardens, Maida Vale, London, W9 1AY Court: Bristol District Registry Date of Filing Petition: 29 March 2005 No. of Matter: 1469 of 2005 Date of Winding-up Order: 13 July 2005. Official Receiver-21 Bloomsbury Street, London, WC1B 3SS FILOS (UK): Wholesaler Calls in Administrator --------------------------------------------- Name of company: FILOS (UK) LIMITED (Company No 3067393) Nature of Business: Other Wholesale Address of Registered Office: SL and Co Solicitors, Chester Court, 1673 High Street, Knowle, Solihull, West Midlands B93 0LL Date of Appointment: July 13, 2005 Administrators' Names and Address: Neil Tombs and Paul Melville (IP Nos 7830 and 9313), both of Grant Thornton UK LLP, Recovery and Reorganisation, Enterprise House, 115 Edmund Street, Birmingham B3 2HJ CONTACT: FILOS (UK) LIMITED 14 Bottings Industrial Estate, Curdridge, Southampton, Hampshire SO30 2DY Phone: 01489798800 GRANT THORNTON UK LLP Enterprise House, 115 Edmund Street, Birmingham B3 2HJ Phone: 0121 212 4000 Fax: 0121 212 4014 Web site: http://www.grant-thornton.co.uk FKI PLC: Senior Unsecured Debt Rating Affirmed at 'BB' ------------------------------------------------------ Standard & Poor's Ratings Services affirmed its 'BB' senior unsecured debt rating on U.K.-based engineering company FKI PLC's EUR600 million 6.625% bonds due 2010 and removed it from CreditWatch with negative implications, where it had been placed on June 10, 2005, pending clarification of mitigating factors relating to structural subordination. The rating on the bonds is in line with the 'BB' long-term corporate rating on FKI and the affirmation reflects our opinion that there is sufficient mitigation of structural subordination. Following the recent revision of all ratings on FKI, we have conducted detailed analysis to ascertain the strength of mitigation in relation to the apparent structural subordination of the EUR600 million bond issue. This subordination exists due to the bonds being issued at the parent company level. "We are satisfied that sufficient mitigation is in place such that bondholders are not unduly disadvantaged by the location of liabilities within the group structure," said Standard & Poor's credit analyst Jarrad Oberhardt. "The affirmation reflects our assessment of the mitigation of structural subordination, which focuses on the three principal factors of upstream guarantees, diversity of group operating subsidiaries, and downstream inter-company loans," he added. FKI holds upstream guarantees from a number of group holding and operating companies, including FKI Engineering Ltd. and FKI Industries Inc. On a consolidated basis, FKI Engineering Ltd. accounts for more than one-half of group net tangible assets. Outside of the parent entity, FKI Industries Inc. is the only other group entity to have issued any material amount of debt, consisting of U.S. private placement notes with slightly less than GBP100 million currently outstanding. The existence of this guarantee effectively places bondholders pari passu with holders of FKI Industries Inc. paper. A further factor is that the group is operationally organized across four distinct divisions, which operate independently of each other. Within these four divisions, the group's tangible assets and external liabilities are dispersed between more than 60 legal operating entities. The presence of autonomous operating units along with multiple legal entities improves the prospect that material net residual value will flow to the parent as individual operating units wind up with shortfalls and surpluses. Finally, the group has a large number of formally documented, downstream, inter-company loans. Although most of these are between holding companies only, a moderate amount of group external liabilities are held at debtor entities. Presuming these agreements are legally tight, this is expected to enhance the standing of bondholders at the parent company level, as the inter-company loan agreements would bring the creditor entity pari passu with debtor entities' unsecured debt claims. 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: Client Support Europe (44) 20-7176-7176; 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 on: media_europe@standardandpoors.com. CONTACT: STANDARD AND POOR'S RATING SERVICES Group E-Mail Address CorporateFinanceEurope@standardandpoors.com FLOWGUARD FINISHING: Winding-up Petition Gets Court Approval ------------------------------------------------------------ Company Name: Flowguard Finishing (LLC) Ltd American National Bank Building, 1912 Capitol Avenue, Cheyenne Wy 82001 Company Registration Number: FC019684 Court: High Court of Justice Date of Filing Petition: 11 May 2005 No. of Matter: 003081 of 2005 Date of Winding-up Order: 13 July 2005 Official Receiver's Address: Sol House, 29 St Katherines Street, Northampton, NN1 2QZ GRANVILLE TECHNOLOGY: 1,500 Workers Axed; 78 Outlets Closed ----------------------------------------------------------- About 1,500 workers were reportedly stripped of their jobs as Granville Technology Group Ltd. fell into administration. According to the Inquirer, the collapse of U.K.'s largest computer maker came after facing monthly losses of around GBP2 million since the start of 2005. It has also caused the closure of 78 retail outlets. The exit of Granville's directors earlier this week could also be blamed, according to the report, while administrator Grant Thornton said the Group has "fallen victim to the continued price deflation in the personal computer market." Although helplines have been set up to handle inquiries, the company has not provided details regarding its creditors. A lot of customers who have paid in advance have yet to receive their orders. Mike Ellis, one of the administrators from Grant Thornton, said: "We are hopeful of putting in place customer support through a call center operation. Anything beyond that, we will have to wait and see." Meanwhile, Graham Coxon, Lancashire organizer of the GMB union, said: "We are devastated by the number of job losses, 600 of which are in Burnley. The GMB is angry that management has let the company run down to this point without saying anything. He added that they will be urging the Department of Trade and Industry to conduct a probe on the crisis. In 2002, according to the Guardian, Granville acquired Tiny Computers out of administration, which involved debt of more GBP35 million and two executives banned from holding directorships. The ban came after DTI discovered the directors failed to set aside an amount to cover customer warranties in case of collapse. CONTACT: GRANVILLE TECHNOLOGY GROUP LTD. Granville House, Blackburn Road, Simonstone, Burnley, Lancashire, BB12 7TG Phone: 0870 166 8814 Fax: 01282 770701 Web site: http://www.timegroup.co.uk GRANT THORNTON U.K. LLP Grant Thornton House Melton Street Euston Square LONDON NW1 2EP Phone: 020 7383 5100 Fax: 020 7383 4715 Web site: http://www.grant-thornton.co.uk GRIFFIN REAL: High Court Orders Winding-up ------------------------------------------ Company Name: Griffin Real Estate Ltd. 1MARK Road, Hemel Hempstead Hertfordshire, HP2 7BN Company Registration Number: 04955064 Court: High Court Of Justice Date of Filing Petition: 29 April 2005 No. of Matter: 002848 of 2005 Date of Winding-up Order: 13 July 2005 Official Receiver's Address: 21 Bloomsbury Street, London, WC1B 3SS GUARDFORCE INTERNATIONAL: Appoints Joint Liquidators from PwC ------------------------------------------------------------- At the Extraordinary General Meetings of Guardforce International Headquarters Limited held on 18 July 2005, the following Resolutions were passed as a Special Resolution and as an Ordinary Resolution respectively: "That each Company be wound up voluntarily, that Jonathan Sisson and Richard Setchim, of PricewaterhouseCoopers LLP, 12 Plumtree Court, London EC4A 4HT, be and are hereby appointed Joint Liquidators of each Company for the purposes of such winding-up, and any act required or authorized under any enactment to be done by the Joint Liquidators is to be done by all or any one or more of the persons for the time being holding office." CONTACT: PRICEWATERHOUSECOOPERS LLP Plumtree Court London EC4A 4HT Phone: [44] (20) 7583 5000 Fax: [44] (20) 7822 4652 Web site: http://www.pwc.com HOME & CONTRACT: Bristol Court Approves Liquidation --------------------------------------------------- Company Name: Home & Contract Clean Limited Equinox House, Clifton Park Avenue York, YO30 5PA Company Registration Number: 04662256 Court: Bristol District Registry Date of Filing Petition: 13 May 2005 No. of Matter: 2152 of 2005 Date of Winding-up Order: 13 July 2005 Official Receiver's Address: Suite J, Anchor House, The Maltings, Silvester Street, Hull, HU1 3HA IMPLANTS (INTERNATIONAL): Calls in Begbies as Administrator ----------------------------------------------------------- Name of company: IMPLANTS (INTERNATIONAL) LIMITED (Company No 03037740) Nature of Business: Surgical Implants Address of Registered Office: c/o Begbies Traynor, 30 Park Cross Street, Leeds LS1 2QH Date of Appointment: July 6, 2005 Administrators' Names and Address: Neil Andrew Brackenbury and Michael Edward George Saville (IP Nos 8269 and 0250), both of Begbies Traynor, 30 Park Cross Street, Leeds LS1 CONTACT: BEGBIES TRAYNOR 30 Park Cross Street, Leeds LS1 2QH Web site: http://www.begbies.com JOINT BUILDING: Gets Court Approval to Wind-up ---------------------------------------------- Company Name: Joint Building Supplies Ltd. Company Registration Number: 04031188 Address of Registered Office: Plas Y Dre, Bridge Street, Corwen, LL21 0AB Court: Birmingham District Registry Date of Filing Petition: 2 December 2004 No. of Matter: 3151 of 2004 Date of Winding-up Order: 14 March 2005 Official Receiver's Address: Suite 5, 3rd Floor, Windsor House, Pepper Street, Chester, CH1 1DF LEY'S FOUNDRIES: Calls PwC as Liquidator ---------------------------------------- At the Extraordinary General Meetings of Ley's Foundries & Engineering Limited held on 18 July 2005, the following Resolutions were passed as a Special Resolution and as an Ordinary Resolution respectively: "That each Company be wound up voluntarily, that Jonathan Sisson and Richard Setchim, of PricewaterhouseCoopers LLP, 12 Plumtree Court, London EC4A 4HT, be and are hereby appointed Joint Liquidators of each Company for the purposes of such winding-up, and any act required or authorized under any enactment to be done by the Joint Liquidators is to be done by all or any one or more of the persons for the time being holding office." CONTACT: PRICEWATERHOUSECOOPERS LLP Plumtree Court London EC4A 4HT Phone: [44] (20) 7583 5000 Fax: [44] (20) 7822 4652 Web site: http://www.pwc.com LOGIC HOLDINGS: Hires Administrators from Tenon Recovery -------------------------------------------------------- Name of company: LOGIC HOLDINGS LIMITED (Company No 05076313) Nature of Business: Management Activities of Holding Companies Address of Registered Office: Unit 8, Greenham Park, Common Road, Witchford, Ely, Cambridgeshire CB6 2HF Address of Registered Office: Sherlock House, 73 Baker Street, London W1U 6RD Date of Appointment: July 14, 2005 Joint Administrators' Names and Address: Simon Robert Thomas and Stanley Donald Burkett-Coltman (IP Nos 8920 and 9181), both of Tenon Recovery, Sherlock House, 73 Baker Street, London W1U 6RD. CONTACT: TENON RECOVERY Sherlock House 73 Baker Street London W1U 6RD Phone: 020 7935 5566 Fax: 020 7935 3512 E-mail: bakerstreet@tenongroup.com Web site: http://www.tenongroup.com LOGIC ROOFING: Joint Administrators Take over Operation ------------------------------------------------------- Name of company: LOGIC ROOFING & CLADDING LIMITED (Company No 04363906) Nature of Business: Erection of Roof Covering and Frames Address of Registered Office: Sherlock House, 73 Baker Street, London W1U 6RD Date of Appointment: July 14, 2005 Joint Administrators' Names and Address: Simon Robert Thomas and Stanley Donald Burkett-Coltman (IP Nos 8920 and 9181), both of Tenon Recovery, Sherlock House, 73 Baker Street, London W1U 6RD CONTACT: LOGIC ROOFING & CLADDING LIMITED The Barn, 93 Stretham Road, ELY, Cambridgeshire CB6 3RY Phone: 01353647100 TENON RECOVERY Sherlock House 73 Baker Street London W1U 6RD Phone: 020 7935 5566 Fax: 020 7935 3512 E-mail: bakerstreet@tenongroup.com Web site: http://www.tenongroup.com METRONOMY DESKTOP: Court Accepts Petition to Wind-up ---------------------------------------------------- Company Name: Metronomy Desktop Marketing Limited 18 Soho Square, London, W1D 3QL Company Registration Number: 04775467 Court: High Court of Justice Date of Filing Petition: 28 April 2005 No. of Matter: 002815 of 2005 Date of Winding-up Order: 13 July 2005 Official Receiver's Address: 21 Bloomsbury Street, London, WC1B 3SS METZLER INTERNATIONAL: Calls in Administrator --------------------------------------------- Name of company: METZLER INTERNATIONAL (U.K.) LIMITED (Company No 2722897) Nature of Business: Other Wholesale Address of Registered Office: SL and Co Solicitors, Chester Court, 1673 High Street, Knowle, Solihull, West Midlands B93 0LL Date of Appointment: July 13, 2005 Administrators' Names and Address: Neil Tombs and Paul Melville (IP Nos 7830 and 9313), both of Grant Thornton UK LLP, Recovery and Reorganisation, Enterprise House, 115 Edmund Street, Birmingham B3 2HJ * * * The Metzler International Group was forged in 2002 from the union of the German company Metzler International and the Italian companies Filos S.p.A. and United Optical. Visit http://www.metzlerinternational.comfor more information. CONTACT: GRANT THORNTON UK LLP Enterprise House, 115 Edmund Street, Birmingham B3 2HJ Phone: 0121 212 4000 Fax: 0121 212 4014 Web site: http://www.grant-thornton.co.uk MG ROVER: Announcement Delay Stirs More Controversy --------------------------------------------------- MG Rover's new owner Nanjing Automobile is yet to announce its commitment regarding the revival of production at Longbridge, says The Guardian. A spokesman for the Chinese firm said: "We were hoping to make an official statement about the future of Longbridge [Thurs]day. We are not able to do that but as soon as we are, we will." Nanjing, which bought Rover for around GBP50 million last week, has vowed to create a design, engineering and manufacturing facility in the United Kingdom. It is unclear yet as to the actual location, although Nanjing said it will "seriously consider" Longbridge for the site of the facility. The company has also reportedly met with people from St. Modwen, which owns most of the 330-acre property. Nanjing earlier said it planned "consolidating the Longbridge site" as it worked to build a "viable automotive business in China and the U.K." A representative from the firm is positive that the project would progress without violating the intellectual property rights that are owned by SAIC. It also remains uncertain as to when the U.K. business will be established, with some analysts expecting production to start in 18 months. The delay combined with Nanjing's plan to sell stakes of MG Rover to losing bidders bolstered doubts over Nanjing's ability to conclude the acquisition. Rival bidder Shanghai Automotive Industry Corporation earlier expressed disappointment over the turnout of the sale talks and said it is considering taking legal action, among other options. The company has already called in law firm Baker & Mackenzie to handle the matter, the Financial Times reported. The Guardian said SAIC remains "completely committed" to establishing its presence in the international car industry, particularly in Europe. 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 MIRACLE SOLUTIONS: Names P&A Partnership Administrator ------------------------------------------------------ Name of company: MIRACLE SOLUTIONS (GB) LIMITED (Company No 04864293) Nature of Business: Recruitment Company Address of Registered Office: 93 Queen Street, Sheffield S1 1WF Date of Appointment: July 14, 2005 Administrators' Names and Address: Allan Cooper and Derek Leslie Woolley (IP Nos 5546 and 6047), both of The P&A Partnership, 93 Queen Street, Sheffield S1 1WF * * * Visit http://miraclesolutions-gb.co.uk/for more information. CONTACT: THE P&A PARTNERSHIP 93 Queen Street, Sheffield S1 1WF Phone: (0114) 275 5033 Fax: (0114) 276 8556 E-mail: info@poppletonappleby.co.uk Web site: http://www.thepandapartnership.com MOONMORE LIMITED: Calls in Liquidators from PwC ----------------------------------------------- At the Extraordinary General Meetings of Moonmore Limited held on 18 July 2005, the following Resolutions were passed as a Special Resolution and as an Ordinary Resolution respectively: "That each Company be wound up voluntarily, that Jonathan Sisson and Richard Setchim, of PricewaterhouseCoopers LLP, 12 Plumtree Court, London EC4A 4HT, be and are hereby appointed Joint Liquidators of each Company for the purposes of such winding-up, and any act required or authorized under any enactment to be done by the Joint Liquidators is to be done by all or any one or more of the persons for the time being holding office." CONTACT: PRICEWATERHOUSECOOPERS LLP Plumtree Court London EC4A 4HT Phone: [44] (20) 7583 5000 Fax: [44] (20) 7822 4652 Web site: http://www.pwc.com MULLIGANS BAR: In Administrative Receivership --------------------------------------------- Name of company: MULLIGANS BAR CAFE LIMITED (Reg No 03658593) Other Trading Names used within 12 months preceding appointment: Mulligans Nature of Business: Licensed Premises Trade Classification: 48 Date of Appointment of Joint Administrative Receivers: July 12, 2005 Name of Person Appointing the Joint Administrative Receivers: Scottish Courage Limited Joint Administrative Receivers: Steven Williams and Andrew Dick (Office Holder Nos 8887 and 8688), both of Begbies Traynor, 1 Winckley Court, Chapel Street, Preston PR1 8BU Nature of Instrument: The appointment was made under the powers conferred in a legal charge dated 17 February 1999 granting fixed and floating charges over substantially the whole of the Company' s assets and undertaking. CONTACT: BEGBIES TRAYNOR 1 Winckley Court Chapel Street Preston PR1 8BU Phone: 01772 202000 Fax: 01772 200099 E-mail: preston@begbies-traynor.com Web site: http://www.begbies.com MYTRAVEL GROUP: Credit Facilities Fees to Cost GBP10 Mln Yearly --------------------------------------------------------------- MyTravel Group plc has noted that on 26 July 2005, the middle market closing price of its ordinary shares (of which there are currently 434,152,761) was 201p and the middle market price of its convertible preference shares (of which there are currently 19,565,753) was 177p. The combined market capitalization of these two securities was GBP907 million. Under the terms of the Group's Bonding and Letters of Credit facilities (which were described in its Listing Particulars dated 30 December 2004), if the combined market capitalization of MyTravel's ordinary and convertible preference shares is GBP943 million or more for 30 consecutive days, a "normalization event" will have occurred, and the company will be required to start payments of fees for Bonding and Letters of Credit facilities at rates of 2% for drawn and 1% for undrawn facilities. The total Bonding and Letters of Credit facilities affected by this arrangement are approximately GBP550 million and the fees that would become payable would increase the Group's costs by approximately GBP10 million on an annual basis. * * * Mytravel is currently undergoing a restructuring that includes: (a) The conversion into MyTravel equity of approximately GBP800 million of unsecured debt and facilities, including: (i) GBP250 million revolving credit facility, (ii) US$100 million U.S. private placement, (iii) GBP210 million minority interest preference shares, (iv) certain elements of aircraft lease financing arrangements, (v) GBP216 million of convertible bonds (b) On completion of the restructuring: (i) Converting creditors (other than bondholders) would be issued new shares representing 88% of the company's enlarged share capital; (ii) Converting bondholders would be issued new shares representing 8% of the company's enlarged share capital. This allocation has been made on a similar basis to the other converting creditors; (iii) Shareholders would retain 4% of the enlarged share capital. (c) The provision at no material cost to the company of new 5- year committed facilities by the parties to the company's GBP400 million bonding facility and providers of bilateral guarantee and letters of credit facilities (amounting in aggregate to approximately GBP167 million). (d) The company has proposed a timetable for the restructuring that would see it completed by the end of 2004. (e) On completion of the restructuring, the company's debt will be approximately GBP140 million of aircraft finance leases. CONTACT: MYTRAVEL GROUP PLC Phone: 0161 232 6523 Peter McHugh Chief Executive Officer John Allkins Finance Director BRUNSWICK Fiona Antcliffe William Cullum Phone: 020 7404 5959 NATIONWIDE SCHOOL: In Liquidation --------------------------------- Company Name: Nationwide School of Motoring Limited Trading Name: Nationwide School of Motoring Limited Company Registration Number: 03664849 Address of Registered Office: 52 Penny Lane, Liverpool, L18 1DG Court: High Court of Justice Date of Filing Petition: 31 May 2005 No. of Matter: 003546 of 2005 Date of Winding-up Order: 13 July 2005 Official Receiver's Address: 2nd Floor, Cunard Building, Pier Head, Liverpool, L3 1DS OULSTON COMPUTERS: Falls into Liquidation ----------------------------------------- Company Name: Oulston Computers Limited Unit 9 Cross Street, Stone Staffordshire, ST15 8DH Company Registration Number: 03925567 Court: High Court of Justice Date of Filing Petition: 26 May 2005 No. of Matter: 003453 of 2005 Date of Winding-up Order: 13 July 2005 Official Receiver's Address: Ground Floor, Copthall House, King Street, Newcastle-Under-Lyme, ST5 1UE PLAS-TECH WINDOWS: Court Okays Winding-up ----------------------------------------- Company Name: Plas-Tech Windows Ltd. 55 Heathcote Drive, East Grinstead West Sussex, RH19 1NB Company Registration Number: 04037486 Court: High Court of Justice Date of Filing Petition: 31 March 2005 No. of Matter: 002059 of 2005 Date of Winding-up Order: 25 May 2005 Official Receiver's Address: 6th Floor, Sunley House, Bedford Park, Croydon, CR9 1TX POPIN FISH: Gets Court Approval to Liquidate -------------------------------------------- Company Name: Popin Fish Bar Ingoldmells, Lincolnshire, PE25 1PG Court: High Court of Justice No. of Matter: 003545 of 2005 Date of Filing Petition: 31 May 2005 Date of Winding-up Order: 13 July 2005 The proceedings are related to High Court of Justice case no. 003545 of 2005 QUEST INTERNATIONAL: Administrators from Kroll Limited Move in -------------------------------------------------------------- Name of company: QUEST INTERNATIONAL SPORTS EVENTS LIMITED (Company No 04840227) Nature of Business: Event Organization Address of Registered Office: Number 15, The Coda Centre, 189 Munster Road, Fulham, London SW6 6AW Date of Appointment: July 15, 2005 Administrators' Names and Address: Simon J. Appell and Peter M. Saville (IP Nos 9305 and 9029), both of Kroll Limited, 10 Fleet Place, London EC4M 7RB CONTACT: KROLL LIMITED 10 Fleet Place London EC4M 7RB United Kingdom Phone: 44 (0) 207 029 5000 Fax: 44 (0) 207 029 5001 Web site: http://www.krollworldwide.com SAINSBURYS OF BOURNEMOUTH: Creditors Meeting Set August 9 --------------------------------------------------------- The creditors of Sainsburys Of Bournemouth Limited will meet on Aug. 9, 2005 at 11:00 a.m. It will be held at The Roundhouse Hotel, 1 Meyrick Road, Lansdowne, Bournemouth BH1 2PR. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to M. F. Stevenson of Middleton Partners, 65 St Edmund's Church Street, Salisbury, Wiltshire SP1 1EF not later than Aug. 8, 2005 at 12:00 noon. * * * The company is an antique shop. CONTACT: SAINSBURYS OF BOURNEMOUTH LTD 23-25 Abbott Road, Bournemouth, BH9 1EU Phone: 01202 529271 Fax: 01202 510028 E-mail: sales@sainsburys-antiques.com MIDDLETON PARTNERS 65 St Edmunds Church Street, Salisbury, Wiltshire SP1 1EF Phone: 01722 435 192 Fax: 01722 421102 Web site: http://www.middletonpartners.co.uk SOFTWARE STORE: Administrators from Hazlewoods Take over Biz ------------------------------------------------------------ Name of company: SOFTWARE STORE LIMITED (Company No 04264370) Nature of Business: Games and Software Retail Address of Registered Office: 46 Westgate Street, Gloucester GL1 2NF Date of Appointment: July 15, 2005 Administrators' Names and Address: Philip John Gorman and Peter Richard James Frost (IP Nos 008069 and 008935), both of Hazlewoods LLP, Windsor House, Barnett Way, Barnwood, Gloucester GL4 3RT. CONTACT: SOFTWARE STORE LTD. Evesham Walk, Kingfisher Centre, Redditch, Worcestershire B97 4EX Phone: 01527585900 HAZLEWOODS Windsor House, Barnett Way, Barnwood, Gloucester GL4 3RT Phone: +44 (0) 1452 634800 Fax: +44 (0) 1452 371900 Web site: http://www.hazlewoods.co.uk STANLEY J HOLMES: Hires Hodgsons Administrator ---------------------------------------------- Name of company: STANLEY J HOLMES & SONS LIMITED (Company No 02046606) Nature of Business: Wallcovering Manufacturing Address of Registered Office: Vale Mill, Chamber Road, Hollinwood OL8 4PG Date of Appointment: July 15, 2005 Administrators' Names and Address: David E. M. Mond and Lawrence I. Freedman (IP Nos 002340 and 006749), both of Hodgsons, George House, 48 George Street, Manchester M1 4HF * * * Visit http://www.sjholmes.co.uk/for more information. CONTACT: STANLEY J HOLMES & SONS LIMITED Vale Mill Chamber Road Hollinwood Oldham OL8 4PG United Kingdom Phone: 0161-621 3000 Fax: 0161-627 2046 HODGSONS George House 48 George Street Manchester Greater Manchester M1 4HF Phone: 0161 228 7444 Fax: 0161 228 735 E-mail: dmond@hodgsons.co.uk TANEX RESOURCES: Receives Court Approval to Liquidate ----------------------------------------------------- Company Name: Tanex Resources Plc Lacon House, Theobalds House, Theobalds Road, London, WC1X 8RW Company Registration Number: 04297592 Court: High Court of Justice Date of Filing Petition: 23 May 2005 No. of Matter: 003365 of 2005 Date of Winding-up Order: 13 July 2005 Official Receiver's Address: 21 Bloomsbury Street, London, WC1B 3SS TELEWEST GLOBAL: To Reveal Second-quarter Figures Next Month ------------------------------------------------------------ Telewest Global, Inc. will be announcing its Second Quarter 2005 results on Thursday, August 11, 2005 at 7:00 a.m. Easter Daylight Time, 12:00 noon U.K. time. The company will host a conference call to discuss those results on August 11, at 9:00 a.m. EDT, 2 p.m. UK time. To participate in the conference call, contact: United States: +1 617 224 4324 United Kingdom: +44 207 365 8426 Passcode: Telewest. To hear a live Web cast of the call and view presentation slides, visit the Company's website at http://ir.telewest.co.uk/phoenix.zhtml?c=76808&p= A replay of the Web cast will be available for twelve months, while a replay of the teleconference will be available from 11:00 a.m. EDT on August 11, for 7 days. * * * In December, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Telewest Global (formerly known as Telewest Communications Networks Ltd.) to 'BB-' from 'CCC+', following the group's announcement of underwritten refinancing. The ratings were removed from CreditWatch, where they were placed on Aug. 20, 2004. The outlook was stable. It has also executed a commitment letter for new GBP1.8 billion credit facilities that will be used to replace outstanding borrowings under the Telewest group's existing GBP2.03 billion senior credit facilities. Barclays Bank PLC, BNP Paribas, Citigroup Global Markets Limited, Credit Suisse First Boston, Deutsche Bank and Royal Bank of Scotland will underwrite the new facilities. As a result of the planned transaction, Telewest will have significantly extended the maturity profile of its senior credit facilities, the majority of which currently mature in December 2005, and reduced its overall long-term cost of borrowing. CONTACT: TELEWEST GLOBAL, INC. 160 Great Portland St. London W1W 5QA, United Kingdom Phone: +44-20-7299-5000 Fax: +44-20-7299-5495 Web site: http://www.telewest.co.uk Richard Williams Phone: 020 7299 5479 Vani Gupta Phone: 020 7299 5353 THUS GROUP: Turnover Stable; Trading in Line with Expectations -------------------------------------------------------------- At its Annual General Meeting in Glasgow, THUS Group plc provided an update on trading. Since the start of the current financial year, THUS has continued to grow across all three of its key divisions of Managed solutions, Data and telecoms and Internet services. The Company's ability to sustain growth has been underpinned by its strength in the delivery of converged services and by continued expansion in broadband. New corporate customers won since the beginning of the current financial year include broadcasters EMAP Radio and SMG and support services group Babcock International. These customers have opted for THUS networking solutions backed by advanced Multi Protocol Label Switching (MPLS) technology, which enables voice, data and other applications to be carried seamlessly over a single, integrated network platform. MPLS services have also driven expanded business with existing customers, including Johnston Press, The Funding Corporation and a large banking group. Turnover to date from carrier pre-select has been relatively stable following the fall in turnover from this service in the second half of last financial year. As expected, the beneficial impact from new services growth on profit margins has been diluted by the ongoing migration of customers from traditional, high margin dial-up Internet access services to broadband and the new terms of last year's major contract renewals. Nonetheless, THUS maintains tight control of operating costs, continues to focus on cash generative business, and trading is currently in line with full year market expectations. William Allan, Chief Executive, said: "THUS has one of the U.K.'s most advanced core networks and continues to respond vigorously to the challenging competitive dynamics in the U.K. telecommunication market with a focus on converged services. Converged services deliver cost and flexibility advantages for business customers as well as growth and cash generation for THUS. Our service innovation and capability continues to propel us forward and gives the Board confidence in continued revenue growth and cash generation over the current year." CONTACT: THUS GROUP PLC Corporate communications and PR 1/2 Berkeley Square 99 Berkeley Street Glasgow G3 7HR Phone: 0141 567 1234 Fax: 0141 566 3035 E-mail: thus.enquiries@thus.net Web site: http://www.thus.net WADE SMITH: Administrators from PKF Take over Operation ------------------------------------------------------- Name of company: WADE SMITH LIMITED (Company No 01832162) Nature of Business: Fashion Retailer Address of Registered Office: New Guild House, 45 Great Charles Street, Queensway, Birmingham B3 2LX Date of Appointment: July 15, 2005 Administrators' Names and Addresses: Ian J. Gould (IP No 7866), of PKF (UK) LLP, 45 Great Charles Street, Queensway, Birmingham B3 2LX, and Jonathan D. Newell and Kerry F. Bailey (IP Nos 6419 and 8780), both of PKF (UK) LLP, Sovereign House, Queen Street, Manchester M2 5HR. CONTACT: WADE SMITH LTD. Mathew Street Liverpool L2 6RA Phone: 0151 255 1077 PKF New Guild House 45 Great Charles Street Queensway Birmingham West Midlands B3 2LX Phone: 0121 212 2222 Fax: 0121 212 2300 E-mail: ian.gould@uk.pkf.com PKF Sovereign House, Queen Street, Manchester M2 5HR Phone: 0161 8325481 Fax: 0161 8323849 E-mail: info.manchester@uk.pkf.com Web site: http://www.pkf.co.uk WHITEHEAD MANN: New Partners, Consultants Join Firm --------------------------------------------------- Whitehead Mann Group Plc, the Executive Search and Leadership Solutions Consultancy, has four new senior appointments. Colin Franklin and James Hinds join as partners from IBM and Marakon Associates, respectively, and Megan Evans and Michael Ferndale join as consultants from Cap Gemini Ernst & Young and Norman Broadbent, respectively. In addition, five existing consultants -- Sonia d'Emilio, Dominique Finelli, Angela Hocter, Adrian Sims, Elizabeth Williamson -- have been promoted to partner. Chris Merry, Chief Executive, said: "Attracting, retaining and developing the best people is fundamental to our success. Not only do we continue to hire outstanding talent to develop our practice areas but we also have a strong culture of promoting our best consultants, who represent the future of the firm. These appointments and promotions are in continuance of the successful implementation of our business plan announced earlier this year." * * * The U.S.-based unit of Whitehead Mann Group Plc -- the sixth largest executive search firm in the world -- filed a prepackaged chapter 11 plan of liquidation in the U.S. Bankruptcy Court for the Southern District of New York on March 31, 2005. This came after Whitehead Mann warned it is likely to reveal a GBP20 million annual loss. The company is implementing a Strategic Plan to take the business forward. Group turnover for the year to 31 March 2005, from continuing operations, was GBP47.2 million (2004: GBP55.0 million). Operating profit from continuing operations before exceptionals was GBP2.0 million (2004: GBP9.1 million). Exceptional operating costs of GBP9.1 million resulted in an operating loss after exceptionals for the year of GBP9.0 million (2004: operating profit GBP4.8 million). CONTACT: WHITEHEAD MANN GROUP PLC 14 Hay's Mews London United Kingdom W1J 5PT Phone: +44 20 7290 2000 Fax: +44 20 7290 2050 Web site: http://www.wmann.com Chris Merry, Chief Executive Phone: +44 (0)20 7290 2000 Brunswick Group LLP James Bradley Rupert Young Phone: +44 (0)20 7404 5959 WILLIAMS UK: Appoints PwC Liquidator ------------------------------------ At the Extraordinary General Meetings of Williams UK Products Limited held on 18 July 2005, the following Resolutions were passed as a Special Resolution and as an Ordinary Resolution respectively: "That each Company be wound up voluntarily, that Jonathan Sisson and Richard Setchim, of PricewaterhouseCoopers LLP, 12 Plumtree Court, London EC4A 4HT, be and are hereby appointed Joint Liquidators of each Company for the purposes of such winding-up, and any act required or authorized under any enactment to be done by the Joint Liquidators is to be done by all or any one or more of the persons for the time being holding office." CONTACT: PRICEWATERHOUSECOOPERS LLP Plumtree Court London EC4A 4HT Phone: [44] (20) 7583 5000 Fax: [44] (20) 7822 4652 Web site: http://www.pwc.com WM MORRISON: Like-for-like Half-year Sales Up 5% ------------------------------------------------ Wm Morrison Supermarkets plc has issued a pre-close sales update for half-year ended July 24. Total like-for-like sales for the continuing business for the half-year have increased by 5% or 2.6% excluding fuel. Like-for-like sales breakdown: (a) Stores now converted to Morrisons (from Safeway) increased sales by 11.6% or 10.9% excluding fuel. However, these figures include any "unconverted period" during the half- year and, when this unconverted period is excluded, converted stores like-for-like sales increased by 15.7% or 15.6% excluding fuel. This sales uplift is driven by customer numbers increasing by 23.2% post conversion; (b) Continuing Safeway stores awaiting conversion traded positively with like-for-like sales increasing by 3.9% or 3.4% excluding fuel; and (c) Like-for-like sales in the core Morrison estate increased by 1.1% but excluding fuel were down 2.7% as stores adjusted to the one-time impact of Safeway stores sold to competitors resulting from undertakings given to the Office of Fair Trading as part of the Safeway acquisition. There was also some cannibalization of sales resulting from Safeway stores converting to Morrisons. Group sales, on a statutory accounting basis, were GBP6.363 billion, an increase of 3% influenced by an extra 5-week contribution from Safeway stores. On a strictly comparable 25-week basis, sales decreased by 7.4% reflecting primarily the sale of 181 stores over the past year. Store Conversion Process At the half-year end, 148 former Safeway stores had been converted to Morrisons and there were 280 stores successfully operating to the Morrisons format. The company remains on track to complete the accelerated conversion process by late November 2005 by which time 360 stores across the U.K. will be trading as Morrisons. This group of stores will comprise over 10-meter square feet of selling space, averaging 28,500 square feet per store with a 92% freehold content. Customers benefit from an enhanced food product range and better service in well maintained stores. They also enjoy Morrisons great value. In the recent Grocer Magazine annual awards, the company came in first for best product availability and customer service. In 2006 and 2007, the company will focus on the optimization of the remodeled and much larger Morrisons store portfolio it has created through a period of immense change. Store Disposals A number of contracts to dispose of former Safeway stores are at various stages of the legal process. These are stores, which would not successfully carry the Morrisons brand and generally are leasehold and fully rented. New Stores & Major Extensions New stores have been successfully opened this year in Scotland; at Hamilton and Auchinlea (Glasgow). There are 5 further new openings in the second half of the year; 3 more in Scotland and 2 in southern England. Major extensions are being added to stores at Coventry and Hinckley; 4 other major extensions having been completed in the first half of the year. Board Brian Flanagan, Susan Murray and Nigel Robertson joined the Board on 1 July. As independent non-executive directors, together with David Jones, they will each be members of the Nomination, Remuneration and Audit Committees. The Nomination Committee will be chaired by Sir Ken Morrison, the Remuneration and Audit Committees by David Jones. KPMG continues their review of the Group's financial forecasts, reporting to the Board. The Board remains comfortable with its profit guidance for 2005/06 issued on 8 June. CONTACT: WM MORRISON SUPERMARKETS PLC Hilmore House Thornton Road Bradford West Yorkshire England BD8 9AX Phone: +44 1274 494166 Fax: +44 1274 494831 Web site: http://www.morereasons.co.uk YOUR NEW: High Court Approves Winding-up Petition ------------------------------------------------- Company Name: Your New Homes Ltd. 44 Upper Belgrave Road Clifton, Bristol, Avon, BS8 2XN Company Registration Number: 04571672 Court: High Court of Justice Date of Filing Petition: 19 October 2004 No. of Matter: 006389 of 2004 Date of Winding-up Order: 13 July 2005 Official Receiver's Address: 21 Bloomsbury Street, London, WC1B 3SS Y & V LIMITED: In Voluntary Liquidation --------------------------------------- At the Extraordinary General Meetings of Y & V Limited held on 18 July 2005, the following Resolutions were passed as a Special Resolution and as an Ordinary Resolution respectively: "That each Company be wound up voluntarily, that Jonathan Sisson and Richard Setchim, of PricewaterhouseCoopers LLP, 12 Plumtree Court, London EC4A 4HT, be and are hereby appointed Joint Liquidators of each Company for the purposes of such winding-up, and any act required or authorized under any enactment to be done by the Joint Liquidators is to be done by all or any one or more of the persons for the time being holding office." CONTACT: PRICEWATERHOUSECOOPERS LLP Plumtree Court London EC4A 4HT Phone: [44] (20) 7583 5000 Fax: [44] (20) 7822 4652 Web site: http://www.pwc.com ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co-published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Larri-Nil Veloso, Ma. Cristina Canson, Liv Arcipe, 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. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. 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