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/raid1/www/Hosts/bankrupt/TCREUR_Public/050930.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, September 30, 2005, Vol. 6, No. 194 Headlines C Z E C H R E P U B L I C UNION BANKA: Lawsuit Threatens to Hold up Bankruptcy Proceedings F R A N C E EUROTUNNEL SA: Delays Conversion of Advances, Notes LIBERATION SA: Issues Profit Warning G E R M A N Y AAP IMPLANTATE: Raises EUR1.46 Million from Rights Issue ANCA HANDELSGESELLSCHAFT: Court Names White & Case Administrator CARLORDS EUROPEAN: Dresden Court Calls in Administrator from HWW DAIMLERCHRYSLER AG: Job cuts to Cost EUR1 Billion DENEG GMBH: Proofs of Claim Due Later this Month DILGE ELEKTRONIK: Bielefeld Company Goes Bust GITTEL GMBH: Creditors Meeting Set Thursday GRUNA UND LANGER: Under Bankruptcy Administration ID MEDIEN: Bremen Court to Verify Claims November JHV GMBH: Creditors' Claims Due Next Week KARSTADTQUELLE AG: Appoints New Management Board Member MAXDATA AG: Operating Profit last year Turning out to be a Fluke PFLEIDERER AG: Acquisition of Kunz Engineered Wood Biz Delayed PRIES UND PARTNER: Court to Verify Claims February SEAG ENGINEERING: Claims Filing Period Ends November 2 I R E L A N D EUROFOOD IFSC: Jurisdictional Issue Remains Unresolved I T A L Y TISCALI SPA: Plans to Reduce Second-half Cash Burn M A L T A FIMBANK: Fitch Affirms Short-term 'B' Rating; Outlook Stable N E T H E R L A N D S ROYAL SHELL: Buyback Program Resumes this Month P O L A N D BANK BPH: Moody's Upgrades Financial Strength to 'C-' R U S S I A AIRPORT-SERVICE: Claims Filing Period Ends October 20 AMURSKIY: Declared Insolvent BOGORODITSKOYE: Bankruptcy Hearing Set November EAST ROAD: Amur Court Opens Bankruptcy Proceedings KALININSKOYE: Undergoes Bankruptcy Supervision Procedure OAO SIBNEFT: Moody's Reviews Ba2, Ba3 Ratings RYLSK-MEAT: Hires A. Grezin Insolvency Manager SOSNOVSKAYA MOVABLE: Succumbs to Bankruptcy TOMSK-OIL-GAS-SERVICE: Bankruptcy Supervision Procedure Begins TRANS-SIB-OIL: Court Brings in Insolvency Manager VOROBYEVSKOYE: Creditors Have Until October 20 to File Claims YUKOS OIL: Yuganskneftegaz Case Gains Footing YUKOS OIL: Moscow Court Sides with Banks on US$475 Mln Loan S W I T Z E R L A N D CONVERIUM AG: Sees no Material Effect from Hurricane Katrina U N I T E D K I N G D O M ALPHA COOKERS: Hires Administrator from Hurst Morrison CDG (REALISATIONS): Calls in Ernst & Young Administrator CHADWICK PROPERTY: Hires Arkin & Co. to Wind up Business CHARACTER GROUP: Chief Executive Officer Resigns COMPASS GROUP: CEO Steps down After 40 Years EASTERN LGV: Hires P&A Partnership Liquidator ELIZA TINSLEY: New Acquisition Drives up Turnover by 18% EQUITABLE LIFE: Mulls Settlement with Former Directors EVERON ENGINEERING: Creditors Meeting Set Next Week FIRST CALL: Falls into Liquidation FLOE TELECOM: Hearing on OFCOM's Appeal Set December 1 HAMILTON LITHO: Hires Liquidator from E W Sheppard & Co. HYBRAND LIMITED: Appoints MBI Equity Liquidator JAEBAN (U.K.): US$4 Mln Claim Against BRAC Remains Unpaid JIPE UK: Hires Liquidators from BRI Business Recovery MEPC LTD.: Secures 7-year GBP370 Million Credit Facility MORADA INTERNATIONAL: In Administrative Receivership MOWLEM PLC: First-half Result in Red ONSLOW DITCHLING: Administrators from Deloitte & Touche Move in PROFILE MEDIA: Seeks Shareholders' Help in Solving Crisis Q.P.C. HOMES: Creditors Meeting Set Next Week REDTEN COMPUTERS: Hires Administrators from PKF REGAL PETROLEUM: Half-year Losses Reach US$21.7 Million ROADEYE LIMITED: Appoints Liquidator from P&A Partnership S B CLOTHING: Files for Liquidation SEMTECH COMPONENTS: Calls in Liquidator SHARP BROS.: Kroll Administrators Enter Company SHIPMANS ELECTRICAL: Creditors Meeting Set Next Week SKYEPHARMA PLC: Plans to Raise GBP35 Million via Rights Issue SLEEP CITY: Furniture Retailer Winds up STRATFORD PARK: Names Begbies Traynor Liquidator TECTONICS BRISTOL: Administrators Take over Firm TRILOGY LIMITED: Management Consultancy Firm Liquidates ULTIMATE RESPONSE: Marketing Services Provider Winds up UK ACCESS: Appoints Administrators from Tenon Recovery VIDEO LINK: Calls in Liquidator ********* =========================== C Z E C H R E P U B L I C =========================== UNION BANKA: Lawsuit Threatens to Hold up Bankruptcy Proceedings ---------------------------------------------------------------- The bankruptcy proceedings of Union Banka (UB) may drag for years after a company challenged the auction conducted by the previous receiver. UB receiver Lukas Raida identified the company as G.E.N., which has filed a petition questioning the sale of 24 immovable properties to Aspana Holding. The sale was done via public tender by Michaela Huserova, the former receiver who was sacked for selling properties not on UB's list of bankruptcy assets. The bank has been divesting assets to repay around CZK15 billion in claims. The bank has already released CZK3.02 billion (EUR107 million) as partial payment. Creditors, numbering 74,946, are expected to recover only 35% of their money. Union Banka's trouble started when it took over struggling financial houses in the mid-1990s. Forced to close branches in February 2003 by a cash crunch, it declared bankruptcy shortly after. It is part of the North Moravian financial group, Union Group, and controlled by Italian financier Invesmart. At the time of its collapse, the bank had 130,000 clients and its liquidation value was estimated at between CZK8 billion and CZK11 billion. CONTACT: UNION BANKA a.s. Ul. 30 Dubna c. 35 70200 Ostrava Phone: 596108111 Fax: 596120134 E-mail: union@union.cz Web site: http://www.union.cz =========== F R A N C E =========== EUROTUNNEL SA: Delays Conversion of Advances, Notes --------------------------------------------------- The Joint Board of Eurotunnel plc, at its meeting on 28 September 2005, decided not to use the option, which is available under the 1998 restructuring agreement, to convert the Stabilization Advances and Notes into shares before 31 December 2005. The joint Board considered that, having regard to the current status of the negotiations, it would not be in the Group's best interests to proceed with this conversion in the present circumstances. The Joint Board considered that it is in the Group's interests for these Stabilization Advances and Notes, which represent approximately 9% of the debt, to be included in the overall debt renegotiations. However, in order to keep all options open within the framework of the negotiations, the Board has mandated its Chairman to propose to creditors an extension to the deadline for conversion. The Group also indicated that under current operating conditions it would be able to pay the total interest on the Stabilization Advances and Notes in 2006. Based on the GBP526 million Stabilization Advances and Notes that were outstanding on 30 June 2005 and the current Credit Agreements, an additional financial charge of approximately GBP24 million a year would be incurred by the Group from 1 January 2006 on the basis of current interest rates in the event that the Stabilization Advances and Notes are not converted into Units. About the Company Eurotunnel is quoted on the London, Paris and Brussels Stock Exchanges. Trading in the U.K. as Eurotunnel plc and in France as Eurotunnel S.A., the Eurotunnel Group has been transporting people and goods through the Channel Tunnel between the U.K. and France since 1994. The British and French governments have granted Eurotunnel a concession to operate the Channel Tunnel until 2086. Eurotunnel's operating revenue in 2004 was GBP538 million. It employs 3,205 people split between the U.K. (1,278) and France (1,927). Operations at the Channel Tunnel fell into turmoil when costs to build the tunnels that connect U.K. and France started to overrun before it opened in 1994. Worsening the problem is an over-optimistic traffic forecasts that crashed when tourist traffic fell following the Iraq war. Eurotunnel is currently struggling with a GBP6.4 billion debt that has accrued interest of GBP298 million in 2004. It said in April it has presented initial reflections on debt restructuring to the Ad Hoc Committee that represents the majority of Eurotunnel's junior creditors. Negotiations are ongoing. In July 2004 auditor KPMG Audit Plc said the company faces uncertainty over its going concern assumption after 2005. The firm's survival is dependent upon the Group's ability to put in place a refinancing plan or, if not, to obtain an agreement with the Lenders under the existing Credit Agreement within the next two years. In January Fitch mentioned that the real crunch for the company looms by 2007 when junior debt amortizations become burdensome. The Committee representing holders of a majority of Eurotunnel's co-financier debt comprises the European Investment Bank, Franklin Mutual Advisers LLC, MBIA and Oaktree Capital Management. In May 2004, Eurotunnel appointed Lazard (global coordinator) and Lehman Brothers as bank advisors. Dresdner Kleinwort Wasserstein remained its restructuring adviser. CONTACT: EUROTUNNEL S.A. Cheriton Park Cheriton High Street Folkestone Kent CT19 4QS United Kingdom Phone: +44-1303-288-750 Fax: +44-1303-850-360 Web site: http://www.eurotunnel.co.uk Press Office Phone: + 44 (0) 1303 288728 or + 44 (0) 1303 288737 E-mail: press.uk@eurotunnel.com Investor Inquiries Xavier Clement Phone: + 331 55 27 36 27 E-mail: xavier.clement@eurotunnel.com LIBERATION SA: Issues Profit Warning ------------------------------------ Daily newspaper Liberation expects a larger deficit this year, according to Les Echos. The paper, which previously forecasted EUR2 million in operating loss, now projects between EUR6 million and EUR7 million, the same amount it also expects for 2006. The paper said a huge drop in advertising revenue is the main reason for the loss. The paper plans to address the problem by increasing Internet ad sales and launching a weekend edition next year. Director Serge July also announced a reorganization of the editorial department beginning November. He said journalists in the future will also have to work on the paper's Web site to cut cost. Although the paper did not mention any redundancies at the general meeting last week, employees fear as much 50 of them may lose their jobs. CONTACT: LIBERATION S.A. 11, Rue Beranger 75154 Paris Cedex 03 Phone: 01 42 76 17 89 Fax: 01 42 72 94 93 Telex: 217 656 F Web site: http://www.liberation.fr ============= G E R M A N Y ============= AAP IMPLANTATE: Raises EUR1.46 Million from Rights Issue -------------------------------------------------------- Aap Implantate AG successfully completed a capital increase with subscription rights. The capital increase was placed in full by an issue of 1,460,857 registered shares. The shares that were not taken up as rights were strongly oversubscribed. Subject to the recording of the capital increase in the companies ' register of Charlottenburg district court, Berlin, the company' s capital stock will increase by EUR1,460,857 from the present EUR15,058,300 to EUR16,519,157, divided into the same number of registered shares. The new shares are likely to be included in the existing Frankfurt stock exchange listing from the beginning of October 2005. From the capital increase the company receives EUR2.3 million before transaction costs. The proceeds are intended to be used for financing an acquisition in the biomaterials segment and to continue to step up its operative business. Aap Implantate AG is a German medical technology company specialized in healing bone fractures, joint replacement, bone cements and biomaterials segments. * * * For the second quarter the company reported sales of EUR3.2 million (up 16%, previous year: EUR2.7 million) and earnings before interest and taxes (EBIT) of EUR76,000 (previous year: -EUR554,000). The shortfall for the quarter improved strongly to -EUR81,000 (previous year: -EUR3.2 million). CONTACT: AAP IMPLANTATE AG Oliver Bielenstein, Director/CFO Lorenzweg 5 Phone: +49 (0)30 - 750 19 - 140 12099 Berlin Fax: +49 (0)30 - 750 19 - 290 Nanette Huedepohl Investor & Public Relations Phone: +49 (0)30 - 750 19 - 133 Fax: +49 (0)30 - 750 19 - 290 ANCA HANDELSGESELLSCHAFT: Court Names White & Case Administrator ---------------------------------------------------------------- The district court of Dresden opened bankruptcy proceedings against ANCA Handelsgesellschaft mbH on August 31. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until October 11, 2005 to register their claims with court-appointed provisional administrator Bettina Schmudde. Creditors and other interested parties are encouraged to attend the meeting on November 23, 2005, 11:00 a.m. at the district court of Dresden, Saal D132, Olbrichtplatz 1, 01099 Dresden, 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: ANCA HANDELSGESELLSCHAFT mbH Walter-Vetter-Strasse 2 in 02708 Lobau Bettina Schmudde, Administrator White & Case Insolvenz GbR Konigstrasse 1, 01097 Dresden Web site: http://www.whitecaseinso.de CARLORDS EUROPEAN: Dresden Court Calls in Administrator from HWW ---------------------------------------------------------------- The district court of Dresden opened bankruptcy proceedings against carlords European rent a Service GmbH i.L. on September 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until October 6, 2005 to register their claims with court-appointed provisional administrator Ulrich Kraft. Creditors and other interested parties are encouraged to attend the meeting on November 17, 2005, 10:00 a.m. at the district court of Dresden, Saal D132, Olbrichtplatz 1, 01099 Dresden, 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: CARLORDS EUROPEAN RENT A SERVICE GmbH i.L. Gewerbepark Niedergurig, Haus 14, in 02694 Malschwitz Ulrich Kraft, Administrator HWW Wienberg Wilhelm Wasastrasse 15, 01219 Dresden Web site: http://www.hww-kanzlei.de DAIMLERCHRYSLER AG: Job cuts to Cost EUR1 Billion ------------------------------------------------- DaimlerChrysler AG will spend almost EUR1 billion to axe 8,500 jobs at its Mercedes division in Germany, said The Financial Times. The job reductions, which will be carried out in 12 months, will affect about 9% of Mercedes' 94,000-strong German workforce. It is one of the first steps new Mercedes head Dieter Zetsche plans to take and is believed to be part of DaimlerChrysler's plan to improve the division's profitability. The Canadian Press, in another report, revealed the cuts will be implemented through voluntary termination agreements. The charges, which will be booked in DaimlerChrysler's fourth quarter results, are not expected to influence the company's goals that include beating last year's operating profit of EUR5.8 billion. Mercedes has been described as a "tarnished" brand in the wake of slipups in design and engineering, which resulted to car recalls. Mercedes has also seen falling profits due to model changeovers, the strong euro, and losses at its Smart venture, which has already cost the company EUR512 million. CONTACT: DAIMLERCHRYSLER AG 70546 Stuttgart, Germany Phone: +49 711 17 0 Fax: +49 711 17 22244 Web site: http://www.daimlerchrysler.com DENEG GMBH: Proofs of Claim Due Later this Month ------------------------------------------------ The district court of Bremen opened bankruptcy proceedings against deneg GmbH on September 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until October 18, 2005 to register their claims with court-appointed provisional administrator Detlef-Helmut Stuermann. Creditors and other interested parties are encouraged to attend the meeting on September 22, 2005, 2:00 p.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 November 10, 2005, 9:15 a.m. at the same venue. CONTACT: DENEG GmbH Kurfuerstenallee 130, 28211 Bremen Contact: Burkhard Klaus Bleilevens, Manager Ernst-Kohlrautz-Str. 26, 30827 Garbsen Detlef-Helmut Stuermann, Administrator Domshof 18-20, 28195 Bremen Phone: 0421/3686-0 Fax: 0421/3686-100 DILGE ELEKTRONIK: Bielefeld Company Goes Bust --------------------------------------------- The district court of Bielefeld opened bankruptcy proceedings against Dilge Elektronik GmbH on September 9. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until November 1, 2005 to register their claims with court-appointed provisional administrator Hans-Achim Ernst. Creditors and other interested parties are encouraged to attend the meeting on November 22, 2005, 9:00 a.m. at the district court of Bielefeld, Gerichtstrasse 6, 33602 Bielefeld, 4. Ebene, Saal 4065, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: DILGE ELEKTRONIK GmbH Lachtropweg 4, 32130 Enger Contact: Michael Dilge, Manager Hans-Achim Ernst, Administrator Bunsenstr. 3, 32052 Herford GITTEL GMBH: Creditors Meeting Set Thursday ------------------------------------------- The district court of Bremen opened bankruptcy proceedings against Gittel GmbH on September 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until November 8, 2005 to register their claims with court-appointed provisional administrator Frank-Michael Rhode. Creditors and other interested parties are encouraged to attend the meeting on October 6, 2005, 9:05 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 on December 1, 2005, 9:00 a.m. at the same venue. CONTACT: GITTEL GmbH Leerkampe 1, 28259 Bremen Contact: Ralf Hermann Alfred Koster, Manager Rehsprung 16, 28355 Bremen Frank-Michael Rhode, Administrator Graf-Moltke-Str. 62, 28211 Bremen Phone: 0421/3485212/213 Fax: 0421/341078 GRUNA UND LANGER: Under Bankruptcy Administration ------------------------------------------------- The district court of Bonn opened bankruptcy proceedings against Gruna und Langer Graphischer Betrieb GmbH on September 7. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until October 7, 2005 to register their claims with court-appointed provisional administrator Ursula Hedwig Maria Langer. Creditors and other interested parties are encouraged to attend the meeting on November 11, 2005, 9:25 a.m. at the district court of Bonn, Insolvenzgericht-, Wilhelmstrasse 21, 53111 Bonn, 2. Stock, Saal S 2.22, 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: GRUNA UND LANGER GRAPHISCHER BETRIEB GmbH Siemensstrasse 10, 53121 Bonn Contact: Ursula Hedwig Maria Langer, Manager Bornheimer Strasse 69, 53111 Bonn Dr. Andreas Schulte-Beckhausen, Administrator Oxfordstr. 2, 53111 Bonn Phone: 0228 / 98 52 10 Fax: 0228 / 98 52 122 ID MEDIEN: Bremen Court to Verify Claims November ------------------------------------------------- The district court of Bremen opened bankruptcy proceedings against id Medien und Druck GmbH on September 1. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until October 25, 2005 to register their claims with court-appointed provisional administrator Dr. Karl Gobel. Creditors and other interested parties are encouraged to attend the meeting on October 13, 2005, 10:00 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 on November 17, 2005, 11:15 a.m. at the same venue. CONTACT: ID MEDIEN UND DRUCK GmbH Bayernstrasse 151, 28219 Bremen Contact: Manfred Meyer, Manager Langenfeld 33A, 28779 Bremen Dr. Karl Gobel, Administrator Wachtstr. 17, 28195 Bremen Phone: 0421/366060 Fax: 0421/3660630 JHV GMBH: Creditors' Claims Due Next Week ----------------------------------------- The district court of Aachen opened bankruptcy proceedings against JHV GmbH on September 8. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until October 14, 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 31, 2005, 8:40 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: JHV GmbH Roermonder Strasse 24, 52353 Dueren Contact: Jakob Heister, Manager Caroline Schmitz, Administrator Waisenhausstr. 3, 52349 Dueren Phone: 02421/20908-0 Fax: 02421/20908-18 KARSTADTQUELLE AG: Appoints New Management Board Member ------------------------------------------------------- Marc Oliver Sommer (43), a member of the Management Board of DirectGroup Bertelsmann, Managing Director of the France Loisirs Group (Paris) and Club Bertelsmann (Berlin/Rheda), is to become a new member of the Management Board at KarstadtQuelle AG. He will be taking over the management of company's mail order business as of January 1, 2006. Until then, Harald Pinger, member of the Management Board responsible for Finance, will continue to be in charge of this area. "In Marc Sommer, the Company has gained a manager with international experience in mail order and expertise in e-commerce, who is also a proven restructuring specialist. I particularly value his hands-on approach and his ability to motivate and get the very best from employees," said Chairman of the Management Board Thomas Middelhoff. "I would like to take this opportunity to thank Harald Pinger for his contribution to the fundamental restructuring and realignment of the mail order business which has started in the past weeks." From 1988-1992, Sommer studied economics at the Institut d'Etudes Politiques in Paris, where he specialized in marketing and finance. He then worked for BMG International in Munich and New York. In 1995, he became marketing manager and a member of the Management Board of Bertelsmann Club in Rheda, before being appointed Managing Director of the France Loisirs Group in Paris in 1998. In 2000, he joined the Management Board of DirectGroup Bertelsmann, where he was responsible for the Club's operations in Southern and Western Europe (Belgium, Netherlands, France, Spain, Portugal, Switzerland, Austria), and in Canada. In 2005, he was also appointed Managing Director of Club Bertelsmann, Rheda-Wiedenbrueck. KarstadtQuelle AG's mail order business covers the complete spectrum of universal and special mail order in Europe through its two core brands of Quelle and Neckermann. The Group includes around 130 operating companies in 25 European countries. With a market share of more than 30 percent, the Company is market leader in Germany. In the 2004 financial year, the share of foreign mail order sales increased to 26.5 percent. In the face of increasing online demand, the mail order company's Internet-based shops have been particularly successful, generating order volumes of EUR2 billion, a figure four times as high as in 2000. An extensive restructuring program designed to restructure universal mail order operations in Germany began in May 2005. The main aims of the program are to raise the profile of the Quelle and Neckermann brands, change the structure of the catalogues and establish strategic partnerships in special mail order. CONTACT: KARSTADTQUELLE AG Theodor-Althoff-Str. 2 D-45133 Essen Phone: +49-201-727-1 Fax: +49-201-727-5216 Web site: http://www.karstadtquelle.com Media Contact Corporate Communications Joerg Howe Phone: + 49 (0)201/727-25 38 E-mail: joerg.howe@karstadtquelle.com MAXDATA AG: Operating Profit last year Turning out to be a Fluke ---------------------------------------------------------------- PC manufacturer Maxdata will end the year in the red despite a third-quarter rally, Borsen Zeitung says. Maxdata, whose operating result returned to black last year, forecasts a single-digit loss at the end of the year. It blames the drop in average PC prices for its failure to achieve its earlier EBIT target of EUR5 million. It still maintains its EUR700 million turnover forecast for the year, 6% higher than last year. CONTACT: MAXDATA AG Elbestrasse 12-16 45768 Marl, Germany Phone: +49 (0) 2365 952-2122 Fax: +49 (0) 2365 952-2125 E-mail: ir@maxdata.com Web site: http://www.maxdata.com PFLEIDERER AG: Acquisition of Kunz Engineered Wood Biz Delayed -------------------------------------------------------------- Pfleiderer AG signed an agreement to acquire major parts of the Kunz Group, Unterensingen. The contract has not yet been finalized, as not all the necessary conditions precedents have been met so far. While Pfleiderer AG still wishes to finalize the agreement promptly, it sees the need for an adjustment of the agreement due to the economic position of the panel activities of the North American Kunz Group companies, which has since deteriorated, and the resulting restructuring. The board of management of Pfleiderer AG is currently holding talks with the Kunz Group in this regard. * * * As reported by TCR-Europe in July, Fitch Ratings affirmed Germany-based Pfleiderer AG's (ISIN DE0006764749) Senior Unsecured 'BB' rating and removed it from Rating Watch Negative (RWN). A Stable Outlook has been assigned. The Short-term 'B' rating is also affirmed. The rating action follows Pfleiderer's announcement to acquire Kunz Group's engineered wood activities in Canada, the United States and Germany. In FY04, the acquired activities had total sales of EUR556 million and EBITDA of EUR85 million. The transaction is expected to close in August/September and subject to regulatory approval. CONTACT: PFLEIDERER AG Ingolstadter Strasse 51 93218 Neumarkt Deutschland Ulrich Korner Corporate Communication Phone: + 49 (0) 91 81 / 28 - 84 91 Fax: + 49 (0) 91 81 / 28 - 606 E-mail: ulrich.koerner@pfleiderer.com PRIES UND PARTNER: Court to Verify Claims February -------------------------------------------------- The district court of Charlottenburg opened bankruptcy proceedings against Pries und Partner Immobiliengesellschaft mbH on September 5. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until December 1, 2005 to register their claims with court-appointed provisional administrator Dr. Petra Hilgers. Creditors and other interested parties are encouraged to attend the meeting on October 20, 2005, 10:30 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 February 2, 2006, 10:10 a.m. at the same venue. CONTACT: PRIES UND PARTNER IMMOBILIENGESELLSCHAFT mbH Kurfuerstendamm 16,10719 Berlin Dr. Petra Hilgers, Administrator Goethestr. 85, 10623 Berlin SEAG ENGINEERING: Claims Filing Period Ends November 2 ------------------------------------------------------ The district court of Aachen opened bankruptcy proceedings against SEAG Engineering AG on September 7. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until November 2, 2005 to register their claims with court-appointed provisional administrator Dr. Martin Dreschers. Creditors and other interested parties are encouraged to attend the meeting on December 13, 2005, 9:00 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: SEAG ENGINEERING AG Lohergraben 26, 52064 Aachen Contact: Peter Groberg, Manager Teichstr. 51, 99086 Erfurt Christian Schneider, Manager Dr. Martin Dreschers, Administrator Juelicher Strasse 116, 52070 Aachen Phone: 0241/94618-0 Fax: 0241/533562 ============= I R E L A N D ============= EUROFOOD IFSC: Jurisdictional Issue Remains Unresolved ------------------------------------------------------ A senior adviser to the European Union's highest court is against the transfer of the hearing on a petition to wind up the Irish arm of Parmalat Finanziaria to Italy. Parmalat wants to bring the case to Italy. But Advocate General Francis Jacobs said that could not be because Eurofood IFSC's main activities are in Ireland, making the Irish court the proper authority to decide over the case. According to Associated Press, Mr. Jacob's opinion is not binding, but final rulings follow the advocate general's recommendations in about 80% of cases. Bank of America, which is being sued for US$10 billion in damages by Parmalat, requested the liquidation of Eurofood in January 2004, saying the unit owes it US$3.5 million. In 1998 Eurofood issued US$180 million worth of securities in private placements. The instruments were later used as collateral for a loan from Bank of America to fund Parmalat's subsidiaries in Brazil and Venezuela. A report from Dow Jones says Parma investigators plan to ask Irish judges to share documents crucial to Parmalat's lawsuit against BofA. Parmalat went into administration after the discovery of a non-existent EUR3.95 billion (US$4.75 billion) account it claims it had in BofA. It subsequently defaulted on more than EUR14 billion in bonds. CONTACT: EUROFOOD IFSC Via Privata Tacito, 12 20094 Corsico (Mi) Phone: 02-44.876 Fax: 02-44.91.007 ========= I T A L Y ========= TISCALI SPA: Plans to Reduce Second-half Cash Burn -------------------------------------------------- Tiscali S.p.A. is looking at expenses of EUR100 million for the full year, said AFX. This would mean a decrease in cash burn in the second half, as the company has spent EUR65 million so far. The figure involves EUR45 million in the first quarter, which fell more than half to EUR20 million in the second. Chief Financial Officer Massimo Cristofori has noted the continued growth in the group's sale of broadband ADSL services. He also stressed that Tiscali is positive about its fourth quarter performance. Tiscali's disposal program is almost finished with only its Spanish venture left for sale. The company has already opened its doors for possible buyers. About the Company Headquartered in Cagliari, Italy, Internet provider Tiscali counts more than 7 million subscribers, of which more than 1.5 million are broadband users. It has sold non-core assets to raise money to cover a EUR250 million bond that matured in July. As of March 31, the group had financial resources of EUR180.2 million, and net debt of EUR381.7 million. Pre-tax loss in the first-quarter is EUR17.9 million. Its senior unsecured debt is rated 'CCC+' by Fitch. Its short-term rating is at 'B'. Tiscali Finance S.A.'s EUR250 million guaranteed floating-rate notes due in July 2005 and its EUR209.5 million guaranteed equity-linked bonds due in September 2006 are rated 'CCC+'. CONTACT: TISCALI S.p.A. Sa Illetta 09122 Cagliari Phone: +39 02 309011 E-mail: ir@tiscali.com Web site: http://www.tiscali.com ========= M A L T A ========= FIMBANK: Fitch Affirms Short-term 'B' Rating; Outlook Stable ------------------------------------------------------------ Fitch Ratings has affirmed Malta-based Fimbank's (FIM) at Long term 'BB', Short-term 'B', Individual 'D' and Support '5'. The Long-term Outlook is Stable. FIM's Long-term, Short-term and Individual ratings reflect the bank's good management, focus on its core trade finance business, adequate asset quality and comfortable capital ratios. They also take into account its small size as well as its exposure to operational and credit risk in emerging markets. FIM benefits from a very clear strategy backed up by the expertise of its personnel. To diversify risks, in 2003 FIM entered the forfaiting business through the acquisition of the London Forfaiting Company (LFC) and, later in 2004, in international factoring through joint ventures with local operators in emerging markets and with the International Finance Corporation (IFC), a member of the World Bank Group. After a 2004 affected by LFC's restructuring costs, the bank reported encouraging H105 results, with LFC now completely restructured and back to generating profits. Both net commission and net trading income from its forfaiting business posted healthy growth rates in H105, and Fitch expects full-year results to confirm this growth. Although decreasing as a proportion of revenues, costs at FIM are still high, reflecting the heavy investments made in personnel and systems to provide the bank with the necessary structure to manage both risks and increasing volumes. FIM should be in a good position to improve its profitability and increase returns. Fitch notes that the most important risk to which FIM is exposed is credit and operational risk, which is quite high in relation to the bank's limited equity base. The strengthening of controls and procedures and the introduction of a legal department should partially mitigate the bank's operational risk. FIM's asset quality appears adequate. Impaired loans are 87% covered by specific and general reserves. At end-June 2005 FIM had a Tier 1 ratio of 23.2% and a total capital ratio of 23.3%. Aware that its growth strategy needs additional resources, the bank is planning to increase its capital base, which is expected to reach US$100 million by end-2007. In July 2005 FIM issued a US$10 million subordinated convertible loan, fully subscribed by the IFC in support of its strategy, which accounts for Tier 2 capital under Maltese regulations. CONTACT: FITCH RATINGS Francesca Vasciminno, Milan Phone: +39 02 87 90 87 225 Paolo Fioretti Phone: +39 02 87 90 87 202 Web site: http://www.fitchratings.com Media Relations Jon Laycock, London Phone: +44 20 7417 4327 ===================== N E T H E R L A N D S ===================== ROYAL SHELL: Buyback Program Resumes this Month ----------------------------------------------- Royal Dutch Shell plc will commence an irrevocable, non-discretionary program to purchase `A' Shares, for cancellation, during its third quarter results close period, which starts on 1 October 2005 and ends on 27 October 2005. Any purchases will be effected within certain pre-set parameters and in accordance with the Company's general authority to repurchase shares and Chapter 12 of the U.K. Listing Rules. The maximum price paid per share will be limited to 5% above the average market value of the Company's equity shares for the 5 business days prior to the day the purchase is made. On 27 September 2005, the company purchased for cancellation 800,000 'A' Shares at a price of EUR27.23 per share. It further purchased for cancellation 400,000 'A' Shares at a price of 1,849.94 pence per share. Following the cancellation of these shares, the remaining number of 'A' Shares of Royal Dutch Shell plc will be 4,020,865,000. As of that date, 2,759,360,000 'B' Shares of Royal Dutch Shell plc were in issue. * * * Shell's buyback scheme is understood to be aimed at reviving shareholders' and investors' confidence. The buyback program follows a damaging reserves overestimation scandal last year. About the Company Royal Dutch Shell plc is incorporated in England and Wales, has its headquarters in The Hague and is listed on the London, Amsterdam, and New York stock exchanges. Shell companies have operations in more than 145 countries with businesses including oil and gas exploration and production; production and marketing of Liquefied Natural Gas and Gas to Liquids; manufacturing, marketing and shipping of oil products and chemicals and renewable energy projects including wind and solar power. The Trouble Shell admitted overstating its proved reserves by almost 6.0 billion barrels between January 2004 and February this year. This led to the ouster of three top executives, including former Chairman Philip Watts. The company was fined EUR150 million in total after investigations launched by U.S. and British regulators. Shell has since revised the method by which it calculates reserves to comply with U.S. regulations. Shell's proved reserves stood at 10.2 billion barrels at the end of 2004. 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 =========== P O L A N D =========== BANK BPH: Moody's Upgrades Financial Strength to 'C-' ----------------------------------------------------- Moody's upgraded to C- with a stable outlook from D+ with a positive outlook the financial strength rating (FSR) of Polish Bank BPH S.A. Bank BPH's A3/P-2 deposit ratings, currently on review for possible upgrade, remain on review. Bank BPH is 71.21% directly owned by Bank Austria Creditanstalt (rated A2 on review for possible upgrade / P-1 / B- on review for possible downgrade) and is ultimately 71.24% owned by the HVB Group (rated A3 on review for possible upgrade / P-1 / D+ negative outlook). Bank BPH's deposit ratings were placed on review for possible upgrade following the announced take-over bid by UniCredito Italiano (rated Aa2 on review for possible downgrade / P-1 / B+ on review for possible downgrade) of HVB. Moody's said that the upgrade of Bank BPH's FSR to C- with a stable outlook from D+ with a positive outlook reflects the Polish bank's improving financial fundamentals on a stand-alone basis as well as its strengthening retail franchise. The rating agency commented that Bank BPH's risk-weighted recurring earnings power and efficiency indicators have continued to improve over the last 12 months and that the bank's capital base remains strong. While highlighting the Polish bank's improving revenue generation and overall risk profile, thanks largely to its continued retail and mortgage lending expansion, Moody's remarked, however, that Bank BPH was growing at a more aggressive pace than the market, notably in foreign currency mortgage loans, and that its revenue mix exhibited a greater reliance than most peers on more volatile trading income. Moody's also remarked that there was scope for Bank BPH to reduce its still high level of non-performing loans. Going forward, Moody's stated that any improvement in Bank BPH's FSR on a stand-alone basis would be predicated by the continued successful realization of its most recent strategic plan, by continued evidence of its control of operating costs and risks, and by further improvements in the bank's underlying asset quality. Headquartered in Cracow, Bank BPH capital group's 2004 consolidated (PAS) pre-tax profit rose by 68.9% to a record PLN1 billion (EUR226 million) while total assets rose by 11.3% to PLN53.9 billion (EUR13.2 billion). At H1-05, the group's consolidated IFRS pre-tax profit rose by 17.5% vs. H1-04 to PLN455 million (EUR112.8 million) and its total assets were up by 25% to PLN59 billion (EUR14.6 billion). CONTACT: MOODY'S INVESTORS SERVICE LTD. (London) Lynn Exton, Senior Vice President Financial Institutions Group Phone: (Journalists) 44 20 7772 5456 (Subscribers) 44 20 7772 5454 Patricia Dambrine VP - Senior Credit Officer Financial Institutions Group Phone: (Journalists) 44 20 7772 5456 (Subscribers) 44 20 7772 5454 =========== R U S S I A =========== AIRPORT-SERVICE: Claims Filing Period Ends October 20 ----------------------------------------------------- The Arbitration Court of Krasnoyarsk region commenced bankruptcy proceedings against Airport-Service after finding the state unitary enterprise insolvent. The case is docketed as A33-5466/2005. Mr. A. Stepanov has been appointed insolvency manager. Creditors have until October 20, 2005 to submit their proofs of claim to 660077, Russia, Krasnoyarsk-77, Post User Box 27290. CONTACT: AIRPORT-SERVICE 660022, Russia, Krasnoyarsk region, Aerovokzalnaya Str. 19, Office 302 Mr. A. Stepanov Insolvency Manager 660077, Russia, Krasnoyarsk-77, Post User Box 27290 AMURSKIY: Declared Insolvent ---------------------------- The Arbitration Court of Amur region commenced bankruptcy proceedings against Amurskiy after finding the building complex insolvent. The case is docketed as A04-5520/05-10/29 "b". Mr. V. Dmitrov has been appointed insolvency manager. Creditors may submit their proofs of claim to 676450, Russia, Amur region, Svobodnyj, 50 Let Oktyabrya Str. 33, Section 308, Room 2. A hearing will take place on February 6, 2006, 8:30 a.m. CONTACT: AMURSKIY Russia, Amur region, Blagoveshensk, Vaselenko Str. 5 Mr. V. Dmitrov Insolvency Manager 676450, Russia, Amur region, Svobodnyj, 50 Let Oktyabrya Str. 33, Section 308, Room 2 Phone/Fax: (41643) 2-60-48 BOGORODITSKOYE: Bankruptcy Hearing Set November ----------------------------------------------- The Arbitration Court of Rostov region has commenced bankruptcy supervision procedure on open joint stock company Bogoroditskoye. The case is docketed as A53-15213/2005-S2-33. Mr. V. Lobanov has been appointed temporary insolvency manager. A hearing will take place on November 15, 2005, 11:00 a.m. at the Arbitration Court of Rostov region at Russia, Rostov-na-Donu, Stanislavskogo Str. 8a. CONTACT: BOGORODITSKOYE Russia, Rostov region, Peschanokopskiy region, Bogoroditskoye Mr. V. Lobanov Insolvency Manager 394018, Russia, Voronezh region, Kirova Str. 9, Office 30 EAST ROAD: Amur Court Opens Bankruptcy Proceedings -------------------------------------------------- The Arbitration Court of Amur region commenced bankruptcy proceedings against East Road Building Company after finding the close joint stock company insolvent. The case is docketed as A04-5519/05-12/35 b. Mr. V. Dmitrov has been appointed insolvency manager. Creditors may submit their proofs of claim to 676450, Russia, Amur region, Svobodnyj, 50 Let Oktyabrya Str. 33, section 308, Room 2. A hearing will take place on February 6, 2006, 8:15 a.m. CONTACT: EAST ROAD BUILDING COMPANY Russia, Amur region, Blagoveshensk, Nagornaya Str. 1a Mr. V. Dmitrov Insolvency Manager 676450, Russia, Amur region, Svobodnyj, 50 Let Oktyabrya Str. 33, Section 308, Room 2 Phone/Fax: (41643) 2-60-48 KALININSKOYE: Undergoes Bankruptcy Supervision Procedure -------------------------------------------------------- The Arbitration Court of Voronezh region has commenced bankruptcy supervision procedure on close joint stock company Kalininskoye. The case is docketed as A14-9113-2005/96/20b. Ms. T. Atanazevich has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 394018, Russia, Voronezh region, Anna, Pionerskaya Str. 23a. A hearing will take place on November 17, 2005, 11:20 a.m. at the Arbitration Court of Voronezh region at Russia, Voronezh region, Srednemoskovskaya Str. 77. CONTACT: KALININSKOYE 396181, Russia, Voronezh region, Paninskiy region, Dmitrievka Ms. T. Atanazevich Temporary Insolvency Manager 394018, Russia, Voronezh region, Anna, Pionerskaya Str. 23a OAO SIBNEFT: Moody's Reviews Ba2, Ba3 Ratings --------------------------------------------- Moody's Investors Service placed the Ba2 corporate family rating and Ba3 senior unsecured ratings of OAO Sibneft on review for possible upgrade following an earlier announcement that its main shareholder, Millhouse Capital, signed legally binding documents for the sale of a 72.7% stake in the company to OJSC Gazprom for a consideration of US$13.1 billion. Moody's review of Sibneft's ratings will assess whether creditors are likely to benefit from any support mechanisms within the new group, as well as plans for any restructuring of debt at the Sibneft level. Moody's will also undertake to assess Gazprom's strategy as a majority shareholder and how this may benefit Sibneft, as well as Sibneft's enhanced position within a significantly larger and more powerful organization. The review will also consider any rating impact of indirect ownership by the Russian Federation and the possible application of the GRI methodology to the company. Headquartered in Moscow, OAO Siberian Oil Company is one of the leading vertically integrated oil companies in Russia. In 2004, the company produced 250 million barrels of oil and generated total revenues of around US$8.9 billion. CONTACT: MOODY'S FRANCE S.A. (PARIS) Eric de Bodard, Managing Director Corporate Finance Group Phone: (Journalists) 44 20 7772 5456 (Subscribers) 44 20 7772 5454 MOODY'S INVESTORS SERVICE LTD. (London) Edward Palmer, Asst Vice President - Analyst Corporate Finance Group Phone: (Journalists) 44 20 7772 5456 (Subscribers) 44 20 7772 5454 RYLSK-MEAT: Hires A. Grezin Insolvency Manager ---------------------------------------------- The Arbitration Court of Kursk region has commenced bankruptcy supervision procedure on open joint stock company Rylsk-Meat. The case is docketed as A35-4354/05 "g". Mr. A. Grezin has been appointed temporary insolvency manager. A hearing will take place on January 11, 2006, 10:20 a.m. at the Arbitration Court of Kursk region at 305004, Russia, Kursk region, K. Marksa Str. 25, Hall #1. CONTACT: RYLSK-MEAT Russia, Kursk region, Rylsk region, Rylsk, Novaya Str. 2 Mr. A. Grezin Temporary Insolvency Manager 398020, Russia, Lipetsk, Studenovskaya Str. 4, Office 118 Phone/Fax: (0742) 42-24-78 SOSNOVSKAYA MOVABLE: Succumbs to Bankruptcy ------------------------------------------- The Arbitration Court of Tambov region commenced bankruptcy proceedings against Sosnovskaya Movable Mechanized Column #2 after finding the open joint stock company insolvent. The case is docketed as A64-3042/05-18. Mr. D. Kozlov has been appointed insolvency manager. CONTACT: SOSNOVSKAYA MOVABLE MECHANIZED COLUMN #2 Russia, Tambov region, Sosnovka, Michurina Str. 57 Mr. D. Kozlov Insolvency Manager Russia, Tambov region, Studenetskaya Nab. 20 TOMSK-OIL-GAS-SERVICE: Bankruptcy Supervision Procedure Begins -------------------------------------------------------------- The Arbitration Court of Tomsk region has commenced bankruptcy supervision procedure on limited liability company Tomsk-Oil-Gas-Service. The case is docketed as A67-4490/05. Mr. I. Gorn has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 634045, Russia, Tomsk-45, Post User Box 2513. Schedule of hearing is still tentative but venue will be held at 634050, Russia, Tomsk region, Kirova Str. 10. CONTACT: TOMSK-OIL-GAS-SERVICE 634027, Russia, Tomsk region, Mira Str. 68 Mr. I. Gorn Temporary Insolvency Manager 634045, Russia, Tomsk-45, Post User Box 2513 TRANS-SIB-OIL: Court Brings in Insolvency Manager ------------------------------------------------- The Arbitration Court of Novosibirsk region has commenced bankruptcy supervision procedure on limited liability company Trans-Sib-Oil. The case is docketed as A45-16442/05-29/236. Mr. E. Bolonskiy has been appointed temporary insolvency manager. CONTACT: TRANS-SIB-OIL Russia, Novosibirsk region, Kubovaya Str. 60 Mr. E. Bolonskiy Temporary Insolvency Manager 630007, Russia, Novosibirsk region, Spartaka Str. 8/4, Office 12&13 VOROBYEVSKOYE: Creditors Have Until October 20 to File Claims ------------------------------------------------------------- The Arbitration Court of Voronezh region commenced bankruptcy proceedings against Vorobyevskoye after finding the grain receiving enterprise insolvent. The case is docketed as A14-2274/2005/10/7b. Mr. V. Dyachkov has been appointed insolvency manager. Creditors have until October 20, 2005 to submit their proofs of claim to Russia, Voronezh region, Post User Box 28. CONTACT: Mr. V. Dyachkov Insolvency Manager Russia, Voronezh region, Post User Box 28 Phone: 20-50-99 YUKOS OIL: Yuganskneftegaz Case Gains Footing --------------------------------------------- The Arbitrage Court of Moscow on Tuesday granted the request of Yuganskneftegaz to make Cyprus' Hulley Enterprises Ltd. co-defendant in its claim for compensation against former parent Yukos Oil, Kommersant reports. The Cyprus court still needs to confirm the ruling. A resolution is not expected within six months -- the period given to a foreign company to respond according to international law. A hearing the case is set April 18, 2006. Yugansk is asking RUB226.1 billion (US$8 billion) in reimbursement for losses on claims it was made to sell oil for less than market prices between 1999 and 2003. The report said Yugansk might get four defendants in its case: Yukos, managing company YUKOS-Moscow, drilling and refining company YUKOS EP, and Hulley Enterprises. Representatives of Yugansk cited Yukos' report for the second quarter of 2005 to establish the connection of Hulley to Yukos. The report said that on May 6, 2005 Hulley Enterprises owned 48.73% of Yukos shares. Menatep Group, the main shareholder in Yukos, gets its main control of the company through the Cyprus offshore company. The report said that should Cyprus confirm the ruling, Hulley Enterprises might have to give up the Yukos' stocks, and Yugansk can get the controlling share for US$8 billion. Yugansk could also sue Hulley further to bring its case to US$16.5 billion. Yukos is an oil-and-gas company headquartered in Moscow, Russia. It filed for chapter 11 protection in December 2004 (Bankr. S.D. Tex. Case No. 04-47742). A few days after, its main production unit Yugansk was sold by the government to a little-known firm OOO Baikalfinansgroup for US$9.35 billion. The sale was aimed at paying for a US$27.5 billion tax bill for 2000-2003. Its bankruptcy case was dismissed in February. 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 US$12,276,000,000 in total assets and US$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: Moscow Court Sides with Banks on US$475 Mln Loan ----------------------------------------------------------- Moscow's arbitration court on Wednesday upheld a decision made by a High Court in London that requires Yukos Oil to repay an outstanding US$475 million loan to a syndicate of Western banks, reports say. The amount is what remains of a US$1.0 billion loan granted in 2003 by a pool of 14 banks led by France's Societe Generale. The lenders include Citigroup Inc., Deutsche Bank AG, Commerzbank AG, BNP Paribas S.A. and ING Bank N.V. The case is HC05CO1219 BNP Paribas and ors v. Yukos Oil Co. The debt was made to pre-finance sale of oil and for general corporate purposes. It includes a three-year US$500 million loan facility and a five-year US$500 million loan facility, according to court documents accessed by Bloomberg News. The lenders said Yukos missed interest payments due in March and April 2005. In July, Yukos indicated it received notification of default of payment on this loan. The loan was secured against Yukos' production subsidiaries, including Yugansk, which is now owned by state-owned company Rosneft. Yukos is an oil-and-gas company headquartered in Moscow, Russia. It filed for chapter 11 protection in December 2004 (Bankr. S.D. Tex. Case No. 04-47742). A few days after, its main production unit Yugansk was sold by the government to a little-known firm OOO Baikalfinansgroup for US$9.35 billion. The sale was aimed at paying for a US$27.5 billion tax bill for 2000-2003. Its bankruptcy case was dismissed in February. 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 ===================== S W I T Z E R L A N D ===================== CONVERIUM AG: Sees no Material Effect from Hurricane Katrina ------------------------------------------------------------ Based on an expected insured industry loss of US$50 billion, Converium AG now estimates gross losses from hurricane Katrina to be in the range of US$20 million to US$40 million. This estimate compares with a range of US$10 million to US$20 million given early September based on an expected industry loss of US$25 billion. The revised loss amount represents about 1 to 2% of Converium's shareholders' funds as of June 30, 2005 and is reflective of the Company's reduced exposure in North America as a result of having placed Converium Reinsurance (North America) Inc. into run-off as well as the decision to write North American business from Zurich on a selective basis only. Given the structure of Converium's exposure any ultimate industry loss in excess of US$50 billion would have a disproportionately low impact on the Company's loss estimate. About Converium Converium is an independent international multi-line reinsurer known for its innovation, professionalism and service. Today Converium employs about 600 people in 20 offices around the globe and is organized into four business segments: Standard Property & Casualty Reinsurance, Specialty Lines and Life & Health Reinsurance, which are based principally on ongoing global lines of business, as well as the Run-Off segment, which primarily comprises the business from Converium Reinsurance (North America) Inc., excluding the US originated Aviation business portfolio. Converium has a "BBB+" rating (outlook stable) from Standard & Poor's and a "B++" rating (outlook stable) from A.M. Best Company. CONTACT: CONVERIUM AG Dr. Kai-Uwe Schanz Chief Communication & Corporate Development Officer Phone: +41 (0) 44 639 90 35 Fax: +41 (0) 44 639 70 35 Zuzana Drozd, Head of Investor Relations Phone: +41 (0) 44 639 91 20 Fax: +41 (0) 44 639 71 20 Web site: http://www.converium.com =========================== U N I T E D K I N G D O M =========================== ALPHA COOKERS: Hires Administrator from Hurst Morrison ------------------------------------------------------ Paul William Ellison and Gareth Wyn Roberts (IP Nos 7254 and 1162) of Hurst Morrison Thomson Corporate Recovery LLP were appointed joint administrators of Alpha Cookers (UK) Limited (Company No 03076907) on Sept. 14. CONTACT: ALPHA COOKERS U.K. LTD. Unit 5 Station Road Industrial Estate, Station Road, Thatcham RG19 4QY Berkshire Phone: 01635 876266 Fax: 01635 876441 E-mail: info@alpha-cookers.co.uk Web site: http://www.alpha-cookers.co.uk 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 CDG (REALISATIONS): Calls in Ernst & Young Administrator -------------------------------------------------------- Company Names: CDG (REALISATIONS) LIMITED (Company No 01654145) CONTROLLED GROUP HOLDINGS LIMITED (Company No 4265260) S. Allport and G. Wilson (IP Nos 8763, 9062) of Ernst & Young LLP were appointed joint administrators of these companies on Sept. 19. The companies' registered office is at Unit 7, Silkwood House, Fryers Way, Osset, Wakefield, West Yorkshire WF5 9AD. CDG (Realisations) Limited was formerly called Controlled Demolition Group Limited. For over 20 years, it has provided asbestos removal, traditional demolition, emergency demolition, explosive demolition and decommissioning services across a wide variety of public and private sector clients, including housing, city centre, industrial, petrochemical and nuclear. Visit http://www.demolitiongroup.com/for more information. CONTACT: CONTROLLED DEMOLITION GROUP LIMITED Silkwood House Fryers Way Ossett Wakefield WF5 9AD Phone: +44 (0) 1924 232600 Fax: +44 (0) 1924 232606 E-mail: marketing@demolitiongroup.com ERNST & YOUNG LLP 100 Barbirolli Square, Manchester M2 3EY Phone: +44 [0] 161 333 3000 Fax: +44 [0] 161 333 3001 Web site: http://www.ey.com CHADWICK PROPERTY: Hires Arkin & Co. to Wind up Business -------------------------------------------------------- C. Devonport, Chairman of Chadwick Property Services Limited, informs that the extraordinary and ordinary resolutions to wind up the company were passed at an EGM held on Sept. 7 at Maple House, High Street, Potters Bar, Hertfordshire EN6 5BS. Mr. M. Arkin of Arkin & Co., Maple House, High Street, Potters Bar, Hertfordshire EN6 5BS was appointed liquidator. CONTACT: CHADWICK PROPERTY SERVICES PTY LTD. 1st Floor 34D Fitzroy St. Marrickville NSW 2204 Phone:(02) 95652099 Fax:(02) 95652065 ARKIN & CO. Maple House High Street Potters Bar Hertfordshire EN6 5BS Phone: 01707 828 683 Fax: 01707 828 022 E-mail: mehmet.arkin@arkinco.co.uk CHARACTER GROUP: Chief Executive Officer Resigns ------------------------------------------------ Following the Character Group plc's announcement on 22 September 2005 relating to Enrico Preziosi stepping aside from his roles as Managing Director and Chief Executive Officer of the Company, Mr. Preziosi has informed the Board he had intended to resign as a Director of the Company at the same time in order to concentrate on his other interests. The Board of Character Group has received and accepted Mr. Preziosi's written formal resignation, which is effective immediately. The Directors are grateful to Mr. Preziosi for his service to the Company since assuming his Board position in August 2000 and would like to acknowledge and thank him for his considerable contribution to the Group. Giochi Preziosi S.p.A. remains a 22.5% shareholder in the Character Group. The Directors remain unaware of any intention by Giochi Preziosi to reduce its shareholding in the Group. Any developments will be communicated to shareholders, as appropriate. Chairman Richard King said: "Enrico Preziosi played a pivotal role in developing the close working relationship between Giochi Preziosi and the Group which will manifest itself in a substantially increased level of inter-company business in this new financial year. "I look forward to working with him in the future and wish him well with his other interests." * * * In April, the company behind last Christmas' best-selling toy Robosapien dipped into the red in the first half. 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 COMPASS GROUP: CEO Steps down After 40 Years -------------------------------------------- Compass Group plc disclosed Wednesday that Michael J. Bailey is stepping down as Chief Executive Officer, after 40 years of service in the Catering Industry. He will continue in his current position at least until Sir Roy Gardner takes on the role of the new Chairman of Compass Group, some time during 2006. Michael J. Bailey said: "In my time at Compass, we have built a truly international business with scale and market leadership. While in the short term the Company has been through a challenging period, particularly in the U.K., I am satisfied that we have taken the necessary action and that a platform has been established from where the Company can move forward again. I remain fully committed to implementing our plan through this period of turnaround." Sir Francis Mackay, Chairman of Compass, said: "On behalf of the Compass Group Board of Directors, I would like to thank Mike for his huge contribution over the last 12 years. The particular success of our U.S. business, which was established by Mike, is a testament to his enthusiasm, energy and entrepreneurial skill." Sir Roy Gardner said: "We are fortunate that Mike will stay on at Compass at least until I have taken on the role of Chairman next year. Following that, Mike and I are both committed to ensuring a smooth period of transition." About the Company Compass Group plc provides food, vending and related services to clients and customers in the workplace, at school and colleges, hospitals, on the move, at leisure and in defense, offshore and remote locations. It has annual revenues of GBP12 billion and employs 400,000 people in over 90 countries. In May, Michael J. Bailey said: "I am not happy with our recent performance. We need to respond more rapidly than we have to the changes taking place in our market." Half-year turnover was GBP6,191 million (2004: GBP5,844 million) with like-for-like growth of 6%, in line with expectations. However, net debt at 31 March 2005 rose to GBP2,494 million (30 September 2004: GBP2,373 million), while profit before taxation and goodwill amortization decreased by 8% from GBP283 million to GBP260 million. CONTACT: COMPASS GROUP PLC Compass House Guildford Street Chertsey Surrey United Kingdom KT16 9BQ Phone: +44 1932 573 000 Fax: +44 1932 569 956 Web site: http://www.compass-group.com EASTERN LGV: Hires P&A Partnership Liquidator --------------------------------------------- K. Eastern, Chairman of Eastern LGV Training & Services Limited, informs that a resolution to wind up the company was passed at an EGM held on Sept. 16 at Holiday Inn, Birmingham Airport, Coventry Road, Birmingham, West Midlands B26 3QW. Allan Cooper and John Russell of The P&A Partnership, 93 Queen Street, Sheffield S1 1WF were appointed Joint Liquidators. The appointment was affirmed at a subsequent meeting of creditors. CONTACT: EASTERN L.G.V TRAINING & SERVICES 84-106, Speedwell Rd. Birmingham West Midlands B25 8HH Phone: 0121 773 4557 Fax: 0121 771 2290 Web site: http://www.easternlgvtraining.co.uk/index1.htm 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 ELIZA TINSLEY: New Acquisition Drives up Turnover by 18% -------------------------------------------------------- Report of Eliza Tinsley Group plc Chairman Michael Borlenghi I am pleased to report a substantially improved trading result for the Eliza Tinsley Group in the year to 31 March 2005. This is due, in no small way, to our strategy that we have been following for a number of years of building on the success of our U.S. and Italian engineering activities, whilst re-balancing our U.K. capacity in the face of a difficult manufacturing environment. In addition, the Consumer Products Division continued to benefit from its new product development and the acquisition of MH Berlyn Limited (Berlyn). Turnover of the Group increased by 18% to GBP78 million from GBP66 million, partly due to a first contribution from Berlyn, acquired during the year, of GBP3.5 million and the combination of the impact of higher prices arising from steel price movements together with a generally more buoyant market. Operating profit benefited from margin improvements generated by re-pricing low margin business at the same time as recovering the unprecedented increase in raw material prices during the course of the year. The anticipated cost reductions that arose from the restructuring in earlier years came through with a like-for-like reduction in selling and administrative expenses in excess of 10%. These actions, combined with the contribution from Berlyn of GBP0.4 million, produced a pre-exceptional, post-goodwill amortization operating profit of GBP1.6 million compared with GBP0.6 million in the prior year. In addition to the significantly improved operating profit, the Group benefited from an exceptional profit of GBP0.2 million, compared to an exceptional cost of GBP2.6 million in the prior year. This arose from the profit on the disposal of the Group's freehold Cradley Heath site for residential development, which resulted in the relocation of Eliza Tinsley & Company Limited to a site more suited to a distribution business, offset by the cost of the final phase of the Group's U.K. reorganization. The improved trading position of the Group allowed net debt at the end of the year to be reduced by GBP3.6 million to GBP16.7 million. Despite the reduction in year-end borrowings, the previously reported increase in bank margin rates that took place at the time of the Berlyn acquisition led interest charges to increase to GBP1.64 million from GBP1.25 million in the prior year. Acquisition In August 2004, the Group completed the acquisition of Berlyn, which now forms part of the enlarged Consumer Products Division of the Group. It manufactures, sells and distributes a range of heating, weed control and maintenance products into the garden sector and has, under the Group's ownership, commenced the process of transferring significant elements of its production and sourcing into the Group's low-cost economy supply lines. The anticipated synergy benefits from this exercise have been secured for the current season. In the eight-month period from its acquisition, Berlyn contributed turnover of GBP3.5 million and operating profit of GBP0.4 million to the Group's results for the year. The Board remains pleased with this acquisition, which was fully funded by the issue of new equity increasing the capital base of the Group by GBP3.3 million after expenses. Pensions The Group has adopted the Accounting Standard FRS 17 for pensions in its accounts for the year ending 31 March 2005 to coincide with the Group's plans to restructure its banking arrangements. The Group's Final Salary Pension Plan ceased providing new service benefits some years ago, with all new benefits being provided through the Group's Money Purchase Scheme. Accordingly, the profit and loss account charge within administrative expenses consists mainly of the costs of providing life assurance (current year GBP38,000, prior year GBP120,000). The interest charge element effectively represents the notional interest on the Plan's deficit, amounting to GBP163,000 in the current year and GBP160,000 in the prior year. The balance sheet impact is to reflect the net deficit in the Plan's funding (net of an associated deferred tax asset) which at 31 March 2005 was GBP2.9 million, this compares with a deficit of GBP4.1 million at 31 March 2004. The Group is currently making cash payments into the Final Salary Plan of GBP26,500 per month. Re-financing As previously advised to shareholders, the Board determined it appropriate to seek to restructure the Group's financing reflecting both its improved trading position and the strong growth being experienced and foreseen in the American and Italian markets. To this end a structure has now been put in place, signed on 23 September 2005 and with effect from 30 September 2005. This will see the doubling of the Group's facility in the U.S.A. and the creation of a mechanism to allow the same in Italy. In the U.K., the Group will continue with its existing bankers but with a different structure. Given the strength of the Group's customer base and debt collection performance, an GBP8.5 million Invoice Discounting Facility will combine with Term Loans of GBP8.8 million (of which initially GBP2 million will be Mezzanine Finance) and a Revolving Credit Facility of GBP1.5 million. Dividend The Board's immediate priority remains to strengthen the Group's cash position and to reduce gearing. The Board is accordingly not proposing to recommend the payment of a final dividend but remains conscious of shareholders' income expectations. Offer Talks On 12 September 2005, the Company announced that it had received an approach from a party, which may or may not lead to an offer for the Company. Early stage discussions with this party continue. The Board will make further announcements to keep shareholders advised of any material developments in relation to this approach as and when they occur. Outlook The process of change, development and improvement has continued during recent months with the resultant benefit to the Group's fortunes. The new financial year started, however, with a slow-down in general consumer spending, but thankfully the 'need' purchase nature of the Group's Consumer Product's range limited the impact of this to an initial volume loss as stores attempted to make general reductions in inventory levels. In recent months the anticipated return to more normal volumes of activity occurred with like-for-like sales in the mainstream multiples showing an increase of 21% compared with the previous year to the end of August, whilst, in the more general consumer area, sales were down by 22% over the same period. The recently acquired Berlyn business is now approaching its peak selling season. It does so against the background of having achieved the anticipated product cost reduction resulting from access to the Group's low-cost economy supply lines in India and China. This process will allow products that historically had unacceptably low margins to deliver the returns achieved elsewhere in the Consumer Products Division. Furthermore, with the relocation of Eliza Tinsley & Company Limited successfully completed, the process of combining the two businesses can now begin with vigor. The Group has, in its past announcements, highlighted to shareholders the growth being achieved in its Off-Highway Division in Italy and North America. It is now appropriate to quantify this. In Italy, the re-positioning of the customer base towards the growth end of the market resulted in a reduction in volumes in 2003/04 with the expectation of real growth in the current year. This has transpired with sales to August this year running at 72% ahead of the prior year, with every indication of continued out-performance. This volume growth, which has accelerated during the course of the year, is even more encouraging given the successful use of low-cost economy supply line support and the resulting margin improvement. In North America, the exceptional quality performance, good customer service and a first class system for new product introduction, together with the market leading initiation of capacity in Mexico, have led to significant new business wins. Commercial sensitivity limits the disclosure of new contracts. However, in the current year, business amounting to more than $12.3m, on an annualized basis, has been awarded to the Group's North American plant. This has come not only from the Group's existing customer base in the USA, but also from JLG, Volvo and Caterpillar Forestry Division. This represents real progress in the stated objective of diversifying the Group's US customer base. Unsurprisingly, the Group's U.K. Off-Highway Division remains challenging and was not helped in June and July 2005 by a major customer suspending production on the volume line due to an external quality problem not associated with Eliza Tinsley. It is estimated that this led to an under-recovery of overhead in the period in the order of approximately GBP0.3 million. However, the creation of a central commercial and marketing team last year has enabled the Group to seek out new opportunities in the developing public transport and leisure market building upon the business enjoyed with the London Underground Consortia and bus chassis manufacturers. The potential of this market is reflected in the Group's trading in the London Underground business which is currently at six times the prior year level and has record order books. The Group's Evenwood Plant currently operates on three shifts. In doing so it struggles to attract sufficient skilled labor and consequently has high churn levels which impact on profitability. This, combined with a recognition of unacceptable margins with a particular customer due to market pricing and the requirement for uneconomic service levels, had led to the decision to increase prices to an economic level whilst accepting that this work is likely to be resourced. In the absence of profitable new work it may well be that the consequent reduction in volume will return the plant to more cost effective two-shift working. The commercial aspects of this process have been agreed with the customer. In line with the Group's policy of realizing surplus freehold property, some 10 acres of unused land adjacent to the Evenwood Plant have been earmarked for disposal subject to suitable planning consent being available. This would enable appropriate investment to be made at this site in modern technology as well as further reducing debt. In summary, whilst by their nature the actions taken will weight the profitability of the Group towards the second half of the year, a number of features mean that the Group is in far better shape for the future: -- The successful completion of a long term financing structure; -- The new business already won in North America that is about to come on-stream; -- The strength of demand and profitability growth being experienced in Italy; -- The successful completion of the relocation of Eliza Tinsley & Company Limited to its new site, combined with the already delivered sourcing synergies arising in the Berlyn unit; and -- The volume growth available (and secured) in the public transport sector in the U.K. Statement by Chief Executive Andrew Hall The Group is split into two Divisions, a Consumer Products Division servicing the trade contractor and consumer DIY markets and an Off-Highway Engineering Division servicing the construction equipment and public transport OEM markets. Consumer Products Division The Consumer Products Division saw more change and development than for many a year. The decision was taken to relocate the business away from its historic base, which had become increasingly inefficient and inappropriate for its needs. To this end planning permission was obtained to convert the Cradley Heath site to residential use and the site sold at a significant premium to book value to a developer. At the same time a long lease was taken for a 100,000 sq. ft. warehouse and distribution centre in the same area and the process of relocation commenced. This relocation has been completed since the year under review and without any meaningful disruption, the result being that operational efficiencies should now begin to flow through. To complement the existing Tinsley business, which is focused around the supply and distribution of chain, rope, gate hardware and related products, the Division was expanded by the acquisition in August 2004 of MH Berlyn Limited. Berlyn, which is located within two miles of the new Tinsley site, was not far advanced in sourcing its products from the lower cost economies at the time of acquisition and has, and will, increasingly benefit from access to Tinsley's supply lines in those areas. Whilst the sales and marketing efforts of the two businesses have thus far remained independent, the process of cross-selling the product lines has commenced and, with the relocation of the Tinsley business now complete, the two businesses can be increasingly brought closer together on the back of the successful management integration already achieved. During the course of the year under review the retail markets, without doubt, slowed down as consumer confidence in the U.K. eroded. Despite this, the market leadership position of the enlarged business enabled margins to be maximized in the face of rising input prices. Off-Highway Division The Off-Highway Division operates out of three plants in the UK, two related plants in Northern Italy and a plant in the United States, which is supported by a developing satellite facility in Mexico. The primary activities of the Division are the supply of complex fabricated metal sub-assemblies to the construction equipment OEM's and to the broader public transport industry. Having re-focused its customer base in Italy in previous years, the Group achieved a 44% increase in its Italian subsidiary's turnover despite no real growth in the Italian economy. This has been achieved through targeting niche areas of development both in terms of manufacturing technology and also in terms of customers' new product development. In North America, the Group benefited from a buoyant North American economy and made significant strides in the objective of broadening its customer base within its chosen sphere of activity. Capital investment was made to support this growth on the back of attractive long-term supply agreements negotiated with key customers. Furthermore, as shareholders are already aware, the Group opened a facility in Mexico where labor and property costs are significantly lower than in North America. The growth of this operation, with the key pre-requisites of product quality and operational efficiency having been provided, will only be limited by the lack of an appropriate funding structure for this country, which is not naturally served from existing sources. In Italy, North America and the U.K. the major raw material utilized by the Group is steel, which increased in price by in excess of 70% during the year in three major steps. In addition to the increased working capital need this created, the Group had to recover these cost increases from its customers. This it did successfully with the first two increases (which were the most significant). However, some difficulty was experienced in recovering the third increase in the U.K. market, which eroded margins slightly in the first quarter of the year. The U.K. market remained strong for the majority of the year with some interesting market share changes being seen for the Group's customers. In the public transport sector, the Dennis Transbus business, which went into administration, was purchased by new owners and volumes recovered during the course of the year but not to a level to cover the shortfall during the administration period. Conversely, volumes in the London Underground sector grew year-on-year with the various Underground maintenance programmes from which the Group benefits becoming increasingly effective. In the construction equipment sector customer demand remained, in total, relatively stable. However, short-term schedule volatility increased. This, compounded by skill shortages in the Group's North Eastern facility, negatively impacted performance, albeit re-pricing of unprofitable business mitigated against this. In response to these labor/skill shortages, the Group recruited a number of welders via its supply lines in Poland for its UK plants and accelerated its utilization of sourcing of components from lower cost economies. Capital expenditure in the U.K. was limited to that required for Health & Safety reasons or replacement of key plant, with every opportunity being sought for cost effective out-sourcing. With all the progress the Group has made in the last 12 months, everyone should look forward to the future with confidence. A copy of this financial report is available free of charge at http://bankrupt.com/misc/ElizaTinsley(Prelim2005).mht CONTACT: ELIZA TINSLEY GROUP PLC Andrew Hall, Chief Executive Paul Hill, Group Finance Director Phone: 01384 263123 Mobile: 07831 255511 Fiona Tooley Citigate Dewe Rogerson Phone: 0121 455 8370 Mobile: 07785 703523 EQUITABLE LIFE: Mulls Settlement with Former Directors ------------------------------------------------------ Equitable Life has put its GBP1.7 billion claim against 15 former directors on hold, said the Evening Standard. The society accordingly postponed its legal action for negligence and breach of fiduciary duty against the directors to pave the way for possible settlement. It is believed the insurer is walking away from the suit to avoid further costs. The highly technical trial started in April, involving a number of witnesses and lawyers. A few days ago, the insurer also called off its GBP700 million lawsuit against former auditor Ernst & Young, which left it facing angry policyholder groups, and legal costs of GBP30 million. Meanwhile, policyholders are calling for the resignation of Equitable Life Chairman Vanni Treves after he withdrew the case against E&Y. In July, the insurer cancelled its GBP1.3 billion "lost sale" claim against E&Y from the original GBP2 billion claim, the biggest ever against an auditing firm in the U.K. The company had claimed that had it been made aware of its true financial position in 1998, the board would have sold the company, earning over GBP1 billion in the process. Former directors say, however, they still would not have opted for the sale. CONTACT: THE EQUITABLE LIFE ASSURANCE SOCIETY Walton Street Aylesbury Buckinghamshire HP21 7QW United Kingdom Phone: +44-870-901-0052 Web site: http://www.equitable.co.uk EVERON ENGINEERING: Creditors Meeting Set Next Week --------------------------------------------------- Notice is hereby given by Stephen M. Quinn and Guy E. B. Mander, that a Meeting of the Creditors of Everon Engineering Limited (Company No 2489923), c/o Baker Tilly, Brazennose House, Lincoln Square, Manchester M2 5BL, is to be held at Baker Tilly, City Plaza, Temple Row, Birmingham B2 5AF, on 3 October 2005, at 12:00 noon. The Meeting is an initial Creditors' Meeting under paragraph 51 of Schedule B1 to the Insolvency Act 1986. I invite you to attend the above Meeting. A proxy form should be completed and returned to me by the date of the Meeting if you cannot attend and wish to be represented. In order to be entitled to vote under Rule 2.38 at the Meeting you must give to me, not later than 12:00 noon on the business day fixed for the Meeting, details in writing of your claim. Joint Administrator CONTACT: BAKER TILLY Brazennose House, Lincoln Square, Manchester M2 5BL Phone: 0161 834 5777 Fax: 0161 835 3242 Web site: http://www.bakertilly.co.uk FIRST CALL: Falls into Liquidation ---------------------------------- N. Harrison, Chairman of First Call Mortgage Services Limited, informs that resolutions to wind up the company was passed at an EGM held on Sept. 16 at The Best Western Russell Hotel, 136 Boxley Road, Maidstone, Kent ME14 2AE. Stephen John Tancock of Smith & Williamson Ltd., First Floor, Holbrook House, 72 Bank Street, Maidstone, Kent ME14 1SN was appointed liquidator. CONTACT: FIRST CALL MORTGAGE SERVICES LIMITED First Call House 15-17 King Street Maidstone Kent ME14 1BA Web site: http://www.fcgl.co.uk/ SMITH & WILLIAMSON LTD. First Floor, Holbrook House, 72 Bank Street, Maidstone, Kent ME14 1SN Web site: http://www.smith.williamson.co.uk SMITH & WILLIAMSON LTD. First Floor, Holbrook House, 72 Bank Street, Maidstone, Kent ME14 1SN Web site: http://www.smith.williamson.co.uk FLOE TELECOM: Hearing on OFCOM's Appeal Set December 1 ------------------------------------------------------ The Competition Appeal Tribunal will review on Dec. 1, 2005 OFCOM's appeal on the Tribunal's ruling in relation to a dispute between Floe Telecom and Vodafone. The process is expected to last two days. A case management conference has been set for Nov. 2, 2005. This follows a similar conference on Sept. 20 after OFCOM lodged on Aug. 19 an updated statement of case, setting out its grounds to challenge a refusal of the court to an earlier request. As reported by TCR-Europe in July, the Tribunal denied the request of OFCOM and the Office of Fair Trading to appeal its May 5 order to complete an investigation into the complaint by Floe Telecom against Vodafone. Floe Telecom went into administration last year following OFCOM's rejection of its complaint against Vodafone. The complaint concerned the disconnection by Vodafone of Floe's "GSM gateways", devices allowing calls to mobile networks to be made at the rate for calls within the same mobile network, rather than the much higher rate for calls from fixed to mobile phones, Floe's representative, Taylor Wessing, said on its Web site. Floe appealed OFCOM's ruling. The Tribunal granted the appeal and in December ordered OFCOM to complete its investigation within five months. OFCOM disputed the order, arguing that the Tribunal had no power to set the timetable for its investigations. The Tribunal on May 5 rejected OFCOM's arguments. In a landmark ruling, the Tribunal confirmed that it has the power to set a timetable for competition authorities and regulators to re-investigate cases sent back to them, and the power to make other directions about the conduct of their investigation, according to Taylor Wessing. The case -- Floe Telecom Limited (in administration) v. Office of Communications (No. 1024/2/3/04) -- was brought before tribunals Marion Simmons QC, Michael Davey, Sheila Hewitt. Edward Mercer of Taylor Wessing represents the Appellant. Peter Roth QC and Gerry Facenna (instructed by Polly Weitzman (Director of Competition Law and Head of Legal) Office of Communications) represent the Respondent. Stephen Wisking (of Herbert Smith) represents the First Intervener, Vodafone Limited. Jon Turner (instructed by the Solicitor to the Office of Fair Trading) represents the potential appellant, the Office of Fair Trading. CONTACT: TAYLOR WESSING Web site: http://www.taylorwessing.com Contact: Dina Shoukry Phone: 020 7300 4930 E-mail d.shoukry@taylorwessing.com HAMILTON LITHO: Hires Liquidator from E W Sheppard & Co. -------------------------------------------------------- K. P. Kelleher, Director of Hamilton Litho Plates Limited informs that extraordinary and ordinary resolutions to wind up the company were passed at the EGM held on Sept. 9 at The Marino Suite, Croydon Park Hotel, 7 Altyre Road, Croydon CR9 5AA. Eric William Sheppard of 1 Harlands Close, Haywards Heath, West Sussex RH16 1PS was appointed liquidator. CONTACT: HAMILTON LITHO PLATES Unit 4, 160 Hamilton Road, London SE27 9SF Phone: 02086701960 E W SHEPPARD & CO. 1 Harlands Close Haywards Heath Sussex RH16 1PS Phone: 01444 410213 HYBRAND LIMITED: Appoints MBI Equity Liquidator ----------------------------------------------- P. Brenikov, Chairman of Hybrand Limited informs that extraordinary and ordinary resolutions to wind up the company were passed at an EGM held on Sept. 9 at Tunsgate Square, 98-110 High Street, Guildford GU1 3HE. Michael Bowell of MBI Equity Ltd, of Second Floor, Suite 2, Tunsgate Square, 98-110 High Street, Guildford, Surrey GU1 3HE was appointed liquidator. Hybrand, based in the United Kingdom, has been manufacturing healthcare products for over thirty years. The company markets a comprehensive range of personal absorbent and related products to meet all the important requirements of the incontinence market. It also manufactures Kylie & Kanga the most popular, and trusted brands in the continence care market. CONTACT: HYBRAND 9 Faraday Close Eastbourne BN22 9AE East Sussex Phone: 01323 509194 MBI EQUITY LTD. First Floor Suite 5 Tunsgate Square 98-110 High Street Guildford, Surrey GU1 3HE Phone: 0845 310 2776 Fax: 0845 450 4464 E-mail: info@mbiequity.co.uk JAEBAN (U.K.): US$4 Mln Claim Against BRAC Remains Unpaid --------------------------------------------------------- Walker, Truesdell & Associates, the Plan Administrator for BRAC Group, Inc., asks the U.S. Bankruptcy Court for the District of Delaware to enter a final decree closing the Reorganized Debtor's chapter 11 case. BRAC Group is the reorganized entity created pursuant to the merger of Budget Group, Inc., and its debtor-affiliates following the confirmation of their Second Amended Joint Liquidating Plan of Reorganization. The Plan Administrator reports that it has distributed approximately US$81 million since the effective date of the Plan and holds approximately US$1.1 million in reserves. The Plan Administrator adds that all claims asserted against the Reorganized Debtor have either been adjudicated by the Court or resolved by the parties involved, except for: (a) Jaeban (U.K.) Limited's US$4 million asserted cure claim. The claim is subject to a cure reserve maintained by the U.K. Administrator with Harris Bank having a balance of approximately $4.5 million. The U.K. Administrator is prosecuting defenses to the cure claims and certain counter-claims; and (b) four cure claims, covered by a cure reserve with a balance of US$927,000 at Sept. 12, 2005, subject to negotiations between the claim holders and Cendant Corporation, the buyer of the Reorganized Debtor's North American assets. (1) $70,000 cure claim of Cintas Corp. (2) $15,000 cure claim of IBM (3) $22,693 cure claim of Jani King (4) $299,000 cure claim of PeopleSoft The Plan Administrator tells the Bankruptcy Court that the Plan has been substantially consummated and that it does not anticipate filing any further motions, applications or pleadings except to the extent necessary to resolve the remaining claims and effect a turnover of the cure reserve to Cendant Corporation. A summary of professional fees paid and distributions made by the Plan Administrator is available for free at: http://researcharchives.com/t/s?1e0 A list of outstanding adversary proceedings commenced by the Plan Administrator and handled by Brown Rudnick Berlack Israels LLP and Ashby & Geddes, PA, is available for free at: http://researcharchives.com/t/s?1e1 A list of outstanding adversary proceedings commenced by the Plan Administrator and handled by Gazes LLC and Young Conaway Stargatt & Taylor, LLP, is available for free at: http://researcharchives.com/t/s?1e4 Headquartered in Daytona Beach, Florida, Budget Group, Inc., operates under the Budget Rent a Car and Ryder names -- is the world's third largest car and truck rental company. The Company filed for chapter 11 protection on July 29, 2002 (Bankr. Del. Case No. 02-12152). Lawrence J. Nyhan, Esq., and James F. Conlan, Esq., at Sidley Austin Brown & Wood and Robert S. Brady, Esq., and Edward J. Kosmowski, Esq., at Young, Conaway, Stargatt & Taylor, LLP, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed US$4,047,207,133 in assets and US$4,333,611,997 in liabilities. On April 20, 2004, the Court confirmed the Debtors' Joint Liquidation Plan, as modified, in accordance with Sections 1129(a) and (b) of the Bankruptcy Code. JIPE UK: Hires Liquidators from BRI Business Recovery ----------------------------------------------------- I. Dworniczek, Director of Jipe UK Limited informs that extraordinary resolution to wind up the company was passed at an EGM held on Sept. 8 at 100-102 St James Road, Northampton NN5 5LF. Peter John Windatt and Gary Steven Pettit of BRI Business Recovery and Insolvency, 100-102 St James Road, Northampton NN5 5LF were appointed liquidator. CONTACT: JIPE UK LTD. 27 Causeway Road Earlstrees Industrial Estate Corby Northamptonshire Phone: 01536 446350 BRI BUSINESS RECOVERY AND INSOLVENCY 100-102 St James Road, Northampton NN5 5LF Phone: 01604 754352 Fax: 01604 751660 E-mail: pwindatt@briuk.co.uk MEPC LTD.: Secures 7-year GBP370 Million Credit Facility -------------------------------------------------------- MEPC Ltd. has entered into a 7-year GBP370 million credit facility with Eurohypo AG (London branch), secured on a GBP580 million portfolio of three business parks -- Milton Park, Oxford; Birchwood Park, Warrington and Hillington Park, Glasgow. It is the intention of both Eurohypo and MEPC that the loan will in due course be securitized through Eurohypo's "Opera" CMBS Conduit program. The facility, when drawn, will be used to repurchase the MEPC Debenture Stock due 2017 and 2024, which have been previously notified, and to repay shareholder loans. About the Company MEPC Ltd. is a leading U.K. company in the ownership, development and operation of quality commercial property. MEPC is wholly owned by Leconport Estates, a company owned by clients of Hermes Investment Management Limited, primarily the BT Pension Scheme. Specializing in business parks, MEPC has the skills, strength and prominent profile in the commercial property market required to provide property solutions that work for current and prospective occupiers. MEPC had GBP906.1 million of property assets at March 2005 and an annualized rent roll of GBP61 million. The business park portfolio at FY04 was geographically split on a gross rental basis: South East England 82%, Rest of U.K. 18%. On September 4, Fitch Ratings affirmed MEPC's Senior Unsecured and Short-term ratings at 'B' and 'B', respectively. The Outlook remains Negative. This affirmation follows the announcement that MEPC will repay the outstanding QUIPS (Quarterly Income Preferred Security) preference shares and other debt liabilities with a prospective new GBP370 million secured debt financing of a portfolio of MEPC's properties and with a new GBP85 million secured facility. The Negative Outlook reflects the possibility that further funds could be repatriated from MEPC to the holding company Leconport Estates as additional inter-company loans. If additional funds are channeled upstream, this could further reduce MEPC's financial flexibility. MEPC's financial parameters are tight: although marginally improving (gross interest cover of around 1.0x at FY04) they are still dependent on interest receivable on the Leconport loan (itself aided by dividend receipts from MEPC) to cover MEPC's expensive cost of funds. CONTACT: MEPC LTD. 4th Floor Lloyds Chambers 1 Portsoken Street London E1 8LW Phone: 020 7702 6100 Fax: 020 7702 6123 Web site: http://www.mepc.co.uk MORADA INTERNATIONAL: In Administrative Receivership ---------------------------------------------------- Enterprise Finance Europe (UK) Limited appointed Stephen Andrew Ellis and Ian David Stokoe (Office Holder Nos 8843, 6587) of PricewaterhouseCoopers LLP joint administrative receivers of Morada International Limited (Reg No 03416618) on Sept. 19. The company sells textiles. It is previously named Morada Limited and Morada Plc. CONTACT: MORADA INTERNATIONAL LTD. Duttons Way, Shadsworth Business Park, Blackburn, BB1 2QP Phone: +44 (0) 1254 669300 Fax: +44 (0) 1254 669444 E-mail: info@morada.co.uk Web site: http://www.morada.co.uk/ MOWLEM PLC: First-half Result in Red ------------------------------------ (a) Reported loss before tax of GBP73.4 million (2004: GBP6.8 million profit)[1]; (b) Profit before tax and exceptional items of GBP4.3 million (2004: GBP18.9 million)[1]; (c) No interim dividend (2004: 2.9p); (d) Stable order book at GBP2.3 billion; (e) U.K. construction operations reorganized; (f) Financial controls and risk management substantially improved; and (g) Further success in PFI; - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - [1] A reconciliation of profit figures quoted is shown in the Financial Review available on the Investor News at http://www.mowlem.com - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Report of Mowlem Chairman, Joe Darby "The first half of 2005 has been a difficult period of great change for Mowlem. The transition to the new executive management team, which began when Simon Vivian became Group Chief Executive in January, was completed when Paul Mainwaring took over as Finance Director in May. Since then substantial progress has been made. While it is disappointing to report such a significant loss, we now have improved operating structures, new risk management processes and a new contract valuation policy." Report of Mowlem Chief Executive, Simon Vivian "We have made significant progress in the first half in reshaping the business and improving management controls and processes and this will continue in the second half. With new management teams in place and favorable market conditions, we anticipate progressive improvement in underlying performance as we strive to increase margins and reduce risk. Our expectations for the full year remain unchanged." Chief Executive's Review Overview It has been a difficult period for Mowlem, but one in which significant progress has been made. While profit before tax and exceptional items of GBP4.3 million on turnover of GBP1,055 million is below our aspirations, it reflects the period of significant change the Group has undergone during the first half and our more prudent approach to profit recognition. Business activity and order intake has continued to be good in the markets that we operate in. Our order book is stable at GBP2.3bn and its quality is improving. Further improvements to internal controls, management reporting and cash flow forecasting are required and these will receive continued attention in the second half of 2005. At the beginning of the year we announced our intention to move to more prudent and consistent accounting rules for recognizing income on contracts. In early July we announced a comprehensive review of the Group's approach to profit recognition and contract valuation, which has now been completed. This review has confirmed the preliminary assessment, made at that time, of the impact of this revised approach on profits in the current year. It has also resulted in an adjustment of GBP71.5 million to the carrying value of contracts in the balance sheet as at 31 December 2004 to bring them onto a consistent basis that reflects anticipated cash flows more closely. Details of this adjustment -- which is reported as a separate item in the results for the first half and was disclosed to the market on September 20 -- and the new rules on profit recognition are discussed in the Financial Review. This more prudent approach to profit recognition complements our previously announced moves to strengthen financial and commercial controls and introduce new risk management processes, which in combination are continuing to improve the quality of work being secured and the cash flows that accrue from it. Strategy Update My initial review of strategy at the beginning of the year concluded that Mowlem's vision of being a leading provider of solutions to users of facilities and infrastructure was essentially sound, but that delivery of the strategy was being inhibited by overly complicated management structures and weak internal processes. We have taken steps to address these issues and the reorganization of our construction services operation is now complete and the anticipated cost savings are being delivered. The benefits of our new structure in allowing us to offer integrated solutions on a national basis are starting to come through. The management of risk within the business has been improved significantly with the newly created Risk Management Board having responsibility for setting policy, major tender reviews and process compliance. Divisional risk committees have been strengthened and improved. All contracts over GBP3 million are subject to risk review. The creation of Mowlem Projects, which brought together all our PFI activities, has been a success and allows us to pursue opportunities in this market sector on an integrated basis. Three new PFI projects reached financial close in the first half and we have recently been named preferred bidder on the GBP1bn Northwood Project for the Ministry of Defense. We continue to make good progress towards financial close on our major Allenby Connaught project. In Australia we have reorganized the business to focus more on integrated rail and infrastructure projects and less on traditional building. An early success resulting from this strategic move is the award of the GBP65 million Chatswood rail interchange project for the New South Wales government. In Support Services our FM and asset management business has had a strong first half and we see increasing opportunities to combine our expertise in this area with more technical solutions offered by other parts of the business. We are currently considering how best to exploit the considerable growth opportunities this sector offers and will have made significant progress on this by the end of the year. The Board continues to reassess its current strategy to ensure that the scope of Mowlem's activities is best aligned to take advantage of the opportunities in the construction and related services industry. Pensions Actuarial valuations of the Group's two main defined benefit pension schemes are under way and are anticipated to complete by the end of the year. It is expected that the funding deficit will be similar to the figure from the previous valuation as at 31 December 2002. The Group is likely to increase significantly its cash contributions to make good the deficit on the schemes. Further details are set out in the Financial Review. Dividend and Distributable Reserves The adoption of IFRS, particularly the recognition of the pensions deficit on the balance sheet, together with the adjustment to contract carrying values, has had a negative impact on Mowlem plc's distributable reserves. We are investigating the options available to address this situation, but the Board has decided not to pay an interim dividend. It is the Board's intention to resume dividend payments as soon as practicable. Outlook We have made significant progress in the first half in reshaping the business and improving management controls and processes and this will continue in the second half. With new management teams in place and favorable market conditions, we anticipate progressive improvement in underlying performance as we strive to increase margins and reduce risk. Our expectations for the full year remain unchanged. Operational Review U.K. and Ireland Construction The major restructuring of our construction services business, which resulted in over 200 redundancies, was completed in May. The GBP6 million restructuring costs are reflected in our first half results. New senior management teams have bedded down effectively and are starting to deliver improved performances. We are continuing to pursue our successful policy of focusing increasingly on repeat and negotiated business and longer-term frameworks. Our contracts for Hampshire County Council (GBP52m) and South Lanarkshire Council (GBP54 million) are excellent examples of our success in securing framework type agreements, as is our key role in helping Wm Morrison to roll-out one of the U.K.'s largest and most exciting rebranding and refurbishment programs for many years. Our securing of nearly 15% of all NHS LIFT work so far awarded further underlines our success on innovative procurement models. In Infrastructure, we have continued to concentrate our efforts on growing our core civil business, with national teams now focusing on the highways, rail and utilities sectors. Amongst the notable successes achieved in these areas have been: the recently awarded GBP397 million M1 widening Early Contractor Involvement (ECI) scheme (in joint venture); our five-year GBP70 million Northumbrian Water framework agreement (an integrated solution which also involves our Engineering Division); and a five-year GBP125 million framework agreement with Network Rail in Scotland. We intend to exit a number of smaller under-performing infrastructure businesses, leaving us with a focused regional civil business to complement the national team initiative. Our new Engineering Division is coming together well. It made a small loss in the first half but improved on the performance of the same businesses in 2004. We anticipate further integration of the business and a commensurate improvement in performance. We intend targeting the significant opportunities in the nuclear and power sectors and will continue to pursue large mechanical & electrical (M&E) frameworks. We intend to exit some loss making parts of this Division. International During the first half of the year, legacy issues in our Australian business, Barclay Mowlem, were substantially addressed. We have reduced significantly our exposure to building work in Australia and will concentrate more on the rail and infrastructure sectors, which have lower risk profiles. We are also looking at further rail work in Taiwan following our successful AU$450 million involvement on the Taiwan High Speed Rail project. With world demand for minerals and materials remaining high, our materials handling operation is performing strongly. We expect an improved performance from our Australian business in the second half. In the U.S.A., Charter Builders turned in another good performance. Charter continued to focus on its core education markets and business wins included four new school projects with a combined value of US$165 million. Mowlem Projects We saw clear benefits in the first half of integrating our PFI, public sector services and larger building activities into a single Division. In joint venture, we reached financial close on three PFI schemes with a total value of GBP565 million. We have, in joint venture with HSBC Infrastructure Fund Management, also been named Preferred Bidder by the Ministry of Defense (MoD) on a GBP1 billion PPP project to rationalize and upgrade its Northwood Headquarters site near Watford. Significant resources are being directed towards achieving financial close on our joint ventured GBP7 billion Allenby Connaught project for the Ministry of Defense (MoD), which all parties are working closely to secure. We have achieved a considerable milestone on this project by agreeing all significant contract terms with the MoD and submitting the deal to the bond rating agencies prior to the GBP1.5bn financing of the project. The agreements have taken a long time to finalize because of the complexity of the project, the range of services being provided and the difficulty of embodying the commercial arrangements in over 2000 pages of contract and schedules for a 35-year project. Mowlem Projects also secured a GBP59 million contract from the Rugby Football Union for a new stand complex at Twickenham Stadium. Support Services The performance of our Support Services operations was adversely affected by continued pricing pressure in the 'blue collar' direct delivery sector, which overshadowed excellent results in our facilities and asset management business. The situation at Mowlem Technical Services (MTS), our mechanical and electrical (M&E) business, has stabilized following the difficulties reported at the end of last year. In future, MTS will concentrate entirely on M&E maintenance work where a number of high quality opportunities are being pursued. The M&E installation activities will be transferred to other Group businesses or closed down. Mowlem Pall Mall (MPM), our cleaning services and security business, continues to compete in a very mature and competitive market. Difficulty in sustaining margins on food retail contracts has prompted us to focus more on opportunities where we can leverage our regional network, which is seen as a key differentiator. Targets include non-food retailers, shopping centers and financial/corporate headquarters facilities. MPM took the decision to exit from the hotels sector in the first half, but is seeking to achieve further organic growth in security and has already committed to a number of key investments. Mowlem Asset Services (MAS), our higher-value facilities and asset management business, performed well and is developing a growing reputation as the quality service provider in this sector. National contracts with AXA, the Health & Safety Executive and our GBP60 million contract with Centrica were successfully mobilized in the first half and we are now seeing some growth as the relationships develop. The bid pipeline is healthy, giving confidence of further growth in the U.K.. The new Corporate Real Estate business which we launched as part of MAS in February is outperforming business plan projections and pursuing some excellent opportunities focused on adding value through the integration of FM and estates management. Using our successful ArcadisAqumen FM joint venture as a platform, we are looking to develop pan-European FM solutions for new and existing customers. We have recently secured a Euro 45 million contract to provide FM services to DSM in the Netherlands and are seeing substantial growth in our Philips account. During the second half of the year we will be looking to further strengthen our MAS management team in order to convert and mobilize the significant opportunities available to us. We see a number of interesting growth opportunities for this business, particularly in combination with the technical expertise available in other Group companies. Our Environmental Sciences Group continues to focus on delivering services to the built and personal environments where legislation and compliance are the primary drivers. Future prospects remain good driven by increasing legislation in all sectors, wider enforcement and a trend for longer-term frameworks. A copy of Mowlem's first-half results can be viewed at http://bankrupt.com/misc/Mowlem(1h2005).pdf About the Company Headquartered in Middlesex, Mowlem Plc -- tp://www.mowlem.com -- support services to public and private sector customers across a comprehensive range of market sectors. It has more than 25,000 employees, and annual turnover of GBP2 billion. It has GBP228.4 million in assets and GBP18.9 million in debt. Its creditors are HSBC Bank, National Westminster Bank, and Lloyds TSB Bank. Mowlem registered losses of GBP7.4 million (retained loss of GBP19.6 million) in 2004, compared to earnings of GBP49.8 million a year earlier. Its profitability was severely affected by a number of contract valuation write-downs and one-off charges. The Trouble Mowlem's business review in February led to the discovery of a number of accounting issues at its Technical Services unit. The errors nearly gave rise to technical breaches under certain bonding facilities. The review also resulted to the split up of its Construction Services operation into three units. Recently, the company warned its full year results will be GBP20 million lower than current market expectations due to changes in approach to profit recognition and contract valuation. The announcement follows three previous profit warnings since June 2004. It prompted Fitch Ratings to revise the outlook on the company to Negative from Stable. Senior Unsecured 'BB' and Short-term 'B' ratings were affirmed. See http://bankrupt.com/misc/Mowlem_Profile.htmfor company profile. CONTACT: MOWLEM PLC White Lion Court, Swan Street Isleworth Middlesex TW7 6RN Phone: 020 8568 9111 Fax: 020 8847 4802 Web site: http://www.mowlem.com ONSLOW DITCHLING: Administrators from Deloitte & Touche Move in --------------------------------------------------------------- Lee Antony Manning and Nicholas Guy Edwards (IP Nos 006477, 008811) of Deloitte & Touche LLP were appointed joint administrators of Onslow Ditchling Limited (Company No 04673094) on Sept. 19. The company's registered office is at Westbury, 2nd Floor, 145-157 St John Street, London EC1V 4PY. Onslow Dicthling develops real estate properties. CONTACT: 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 PROFILE MEDIA: Seeks Shareholders' Help in Solving Crisis --------------------------------------------------------- Ahead of the Extraordinary General Meeting to be held at 10:00 a.m. on 3 October 2005, Profile Media Group plc has asked shareholders to consider what steps, if any, should be taken to deal with the Company's current financial situation. In a letter to shareholders, the Board said it is continuing discussions about the possibility of a fundraising for the Group although there is currently no certainty that this will be successful and the Board does not anticipate being in a position to have a detailed discussion regarding these proposals at the meeting. The Company intends to keep shareholders fully informed of any progress in this regard. About the Company Headquartered in London, Profile Media Group is made up of a number of different companies specializing in a range of products and services from custom publishing and distribution to multi-channel customer contact and integrated fulfillment. It formed Profile Pursuit in 1993 to offer a range of innovative publishing solutions in the U.S. and U.K. The U.S. subsidiary, Profile Pursuit Inc., was recently sold to Healthspring Communications LLC. Profile Media is predicting losses of at least GBP4 million this year. In March, Barclays Bank Plc agreed to extend the date for the repayment of its GBP3 million term loan facility to 7 March 2005. In June, the due date was extended to 31 October 2005. The company also has unsecured loans of GBP100,000 each to Chairman John Webber and Chief Executive David Ellingham. It is looking at options to raise debt and equity finance to inject additional funding to the group. CONTACT: PROFILE MEDIA GROUP PLC 5th Floor, Mermaid House 2 Puddle Dock London EC4V 3DS PMG Phone: +44 (020) 7332 2000 Fax: +44 (020) 7332 2001 E-mail: info@profilemediagroup.co.uk Press Inquiries Martin Chard, Finance Director Phone: 020 7332 2000 Q.P.C. HOMES: Creditors Meeting Set Next Week --------------------------------------------- Notice is hereby given, pursuant to paragraph 51 of Schedule B1 of the Insolvency Act 1986, that a Meeting of the Creditors of Q.P.C. Homes Limited (Registered No 01659483) will be held at The Reading Town Hall, Blagrave Street, Reading, Berkshire RG1 1QH, on 7 October 2005, at 10:00 a.m., for the purposes of considering and, if thought fit, approving the proposals of the Administrators for achieving the aim of the Administration Order, and also to consider establishing and, if thought fit, to appoint a Creditors' Committee. A person authorised under section 375 of the Companies Act 1985 to represent a corporation must produce to the Chairman of the Meeting a copy of the Resolution from which their authority is derived. The copy Resolution must be under seal of the corporation, or certified by the Secretary or Director of the corporation as a true copy. Please note that a Creditor is entitled to vote only if he has delivered to the Administrators not later than 12:00 noon on 6 October 2005 details in writing of the debt claimed to be due from the Company, and the claim has been duly admitted under the provisions of the Insolvency Rules 1986, and there has been lodged with the Administrators any proxy which the Creditor intends to be used on his behalf. M H Thompson, Joint Administrator REDTEN COMPUTERS: Hires Administrators from PKF ----------------------------------------------- Jonathan D. Newell and Kerry Bailey (IP Nos 6419 and 8780) of PKF were appointed joint administrators of Redten Computers Limited (Company No 3953469) on Sept. 14. The company's registered office is at Unit 6 Millbrook Road, West Float Industrial Estate, Birkenhead CH41 1FL. CONTACT: REDTEN COMPUTERS LTD. 4 Sovereign Way Dock Road Birkenhead CH41 1DL Merseyside Phone: 0151 651 1010 Web site: http://www.redten.com/ PKF 52 Mount Pleasant, Phone: 0151 7088232 Fax: 0151 7088169 E-mail: info.liverpool@uk.pkf.com Web site: http://www.pkf.co.uk REGAL PETROLEUM: Half-year Losses Reach US$21.7 Million ------------------------------------------------------- Regal Petroleum plc has reported results for the six months ended 30 June 2005. Financial Highlights (a) turnover increased to US$16.7 million (30 June 04: US$13.4 million); (b) loss for the period of US$21.7 million (30 June 04: loss of US$2.5 million), with loss per share of 19.0 cents (30 June 04: loss per share of 2.3 cents); (c) the loss includes write-downs of US$9.5 million resulting principally from the King Alexander Rig and foreign exchange losses of US$7.8 million; (d) average production of 3,800 boepd during the period (30 June 04: 4,800 boepd); (e) placing of shares which raised GBP42.6 (US$80.6) million net of expenses during the period; and (f) net cash of US$54.0 million (30 June 04: US$65.7 million) at period end and net assets of US$181.0 million (30 June 04: US$131.5 million). At the date of this announcement the Company had net cash of approximately US$42.0 million. Operational Highlights Greece (a) A period of industrial unrest has led to changed operational management arrangements being put in place. No further Regal cash injections to Greece are envisaged in the immediate term; (b) independent reserves auditors McDaniel's confirms Greece proved and probable reserves for Prinos, Prinos North and Epsilon of 22MMbbls; (c) completion of drilling of Kallirachi 2 well; discovery of hydrocarbons, yet poor permeability made the well uncommercial; (d) average production of 2,294 bopd during the period; and (e) increased economic interest in Kavala Oil to 95%. Ukraine (a) average production was 501 barrels of condensate and 5,648 thousand cubic feet of gas per day (total equivalent of 1,507 boepd) with 4 wells in production: MEX102, MEX3, GOL1 and GOL2; (b) operations remain cash flow positive and profitable during the period; (c) conclusion of independent audit of reserves by Ryder Scott is imminent; (d) Peak Resources - discussions with Peak Resources are still "open," however, the Board believes any likely outcome of these negotiations would not be in the best interest of shareholders; and (e) There is an on-going appeal process in Ukraine surrounding the distribution of the rights to property, which were developed in the Joint Venture between the Company and Chernihivnaftogasgeology (CNGG). A value has been determined for these property rights by the Court, but this is currently being appealed by CNGG and the hearing is scheduled for Wednesday 5 October 2005. This legal process is not connected in any way to the Company's license rights in Ukraine, which are not in question. Romania (a) Suceava Block: successful completion of exploration well SE- 1 in April 2005, which produced dry gas (99.4% methane) on a stable flow rate of 1.2 million standard cubic feet per day at a depth of approximately 550 meters; and (b) Barlad Block: 200-kilometer new infill seismic shot in second quarter and license ratified in the first quarter. Egypt Proposal for initial exploration well accepted by the Government and the Company is currently pursuing potential farm-out opportunities. Board appointments Dr. Rex Gaisford CBE was appointed Chief Executive Officer on 9 June 2005. Richard Hardman CBE was appointed Exploration Director on 15 June 2005. Sir Peter Heap was appointed Non-Executive Chairman on 15 June 2005. Frank Timis has resigned as Chairman, Bill Humphries as Non-Executive Director and Christopher Green as Director of Exploration. A copy of the financial results is available free of charge at http://bankrupt.com/misc/RegalPetroleum(H12005).pdf CONTACT: REGAL PETROLEUM PLC 4th Floor 11 Berkeley Street London, England W1J 8DS Phone: +44 20 7647 6622 Fax: +44 20 7629 4297 Web site: http://www.regalpetroleum.com ROADEYE LIMITED: Appoints Liquidator from P&A Partnership --------------------------------------------------------- P. Fretwell, Chairman of Roadeye Limited, informs that a resolution to wind up the company was passed at an EGM held on Sept. 19 at 93 Queen Street, Sheffield S1 1WF. Andrew Philip Wood and Derek Leslie Woolley of The P&A Partnership, 93 Queen Street, Sheffield S1 1WF was appointed liquidator. The appointment was confirmed at a subsequent creditors meeting. Roadeye Ltd. is a stand-alone vehicle tracking company. Its new intelligent vehicle security system alerts people when their cars have been moved by sending text messages to mobile phones. Visit http://www.roadeye.co.ukfor more information. CONTACT: ROADEYE LTD. Barnsley S75 1JL Phone: 01226 321455 Fax: 01226 321466 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 S B CLOTHING: Files for Liquidation ----------------------------------- S. Bargit, Director of S B Clothing Co. Limited, informs that a resolution to wind up the company was passed at an EGM held on Sept. 15 at 20 Winmarleigh Street, Warrington, Cheshire WA1 1JY. Robert W Keating of R W Keating & Co, 20 Winmarleigh Street, Warrington, Cheshire WA1 1JY was appointed liquidator. S B Clothing manufactures ladies leisurewear, clubwear, and partywear. It was established more than 13 years ago in the heart of the Midlands. It operates from a 40,000 sq. ft. facility, and produces over 50,000 garments per week. It is a supplier to high street retailers, wholesalers and boutiques. Visit http://www.sb-clothing.co.ukfor more information. CONTACT: S B CLOTHING CO. LIMITED S&B House 92-94 Gipsy Lane Leicester, LE4 6 RE England Phone: (00)+44 116 2664747 Fax: (00) +44 116 2664748 R. W. KEATING & CO. 2nd Floor 20 Winmarleigh Street Warrington Cheshire WA1 1JY Phone: 01925 245004 Fax: 01925 245357 E-mail: robert@rwkeating.fsnet.co.uk SEMTECH COMPONENTS: Calls in Liquidator --------------------------------------- Terry Cook, Chairman of Semtech Components Limited, informs that resolutions to wind up the company were passed at an EGM held on Sept. 19 at Wilder Coe, 12th Floor, Southgate House, St George's Way, Stevenage, Hertfordshire SG1 1HG. Norman Cowan and Mark Riley of Wilder Coe, 12th Floor, Southgate House, St George's Way, Stevenage, Hertfordshire SG1 1HG were appointed Joint Liquidators. Semtech Components supplies semiconductors, flyback transformers (LOPTS) and computer spares. It has over 15,500 stocks available from two warehouses. Visit http://www.semtechcomponents.comfor more information. CONTACT: SEMTECH COMPONENTS 7-8 Icknield Way Shaftesbury Industrial Centre Letchworth SG6 1HE Hertfordshire Phone: 01462 486888 Fax: 01462 686853 WILDER COE 12th Floor Southgate House St. George's Way Stevenage Hertfordshire SG1 1HG Phone: 01438 847 200 Fax: 01438 847 150 E-mail: insol@wildercoe.co.uk SHARP BROS.: Kroll Administrators Enter Company ----------------------------------------------- Charles Peter Holder and Stuart Charles Edward Mackellar (IP Nos 9093 and 6883) of Kroll Limited were appointed joint administrators of Sharp Bros. Limited (Company No 03405705) on Sept. 16. The company's registered office is at The Sawmill, Kidd Lane, Melbourne, York, North Yorkshire YO42 4QF. Sharp Bros. manufactures pallets. CONTACT: SHARP BROS The Sawmill, Kidd Lane, York, South Yorkshire YO42 4QF Phone: 08000340370 KROLL LIMITED Wellington Plaza, 31 Wellington Street, Leeds LS1 4DL Web site: http://www.krollworldwide.com SHIPMANS ELECTRICAL: Creditors Meeting Set Next Week ---------------------------------------------------- Notice is hereby given by James Douglas Emle Money and Allan Watson Graham, both of KPMG LLP, St Nicholas House, Park Row, Nottingham NG1 6FQ, that a Meeting of Creditors of Shipmans Electrical Services Limited (Company No 03117879), 1 The City, Beeston, Nottingham NG9 2ED, is to be held at St Nicholas House, Park Row, Nottingham NG1 6FQ, on 5 October 2005, at 10:00 a.m. The Meeting is an initial Creditors' Meeting under paragraph 51 of Schedule B1 to the Insolvency Act 1986. A proxy form should be completed and returned to me by the date of the Meeting if you cannot attend and wish to be represented. In order to be entitled to vote under Rule 2.38 at the Meeting you must give to me, not later than 12:00 noon on the business day before the Meeting, details in writing of your claim. J D E Money, Joint Administrator CONTACT: SHIPMANS ELECTRICAL SERVICES LTD. 1 The City, Beeston, Nottingham, Nottinghamshire NG9 2ED Phone: 01159256629 KPMG LLP St Nicholas House Park Row Nottingham Nottinghamshire NG1 6FQ Phone: 0115 935 3535 Fax: 0115 935 3500 SKYEPHARMA PLC: Plans to Raise GBP35 Million via Rights Issue ------------------------------------------------------------- Not for release, publication or distribution in whole or in part, directly or indirectly in or into the United States of America, Canada, Australia, Japan, the Netherlands, France, the Republic of Ireland or New Zealand. The Board of SkyePharma plc proposes to raise approximately GBP35 million (net of expenses) by means of a 1 for 5 Rights Issue of 125,627,357 New Ordinary Shares at 30 pence per share to Qualifying Shareholders. The Rights Issue has been underwritten in full by Credit Suisse First Boston (Europe) Limited (CSFB). The Directors (other than one Director resident in the United States) intend to take up their rights under the Rights Issue in respect of all of their beneficial interests in Existing Ordinary Shares over which they have control, representing less than 1 per cent of the issued share capital. The net proceeds of the Rights Issue will be used primarily to provide the Company with additional working capital to fund the Phase III clinical development of Flutiform(TM), a key pipeline product. The proposed issue of 125,627,357 New Ordinary Shares represents approximately 16.7% of the enlarged issued share capital. Michael Ashton, Chief Executive of the Company, said: "The proceeds of the Rights Issue will allow the Company the flexibility to proceed by itself with the clinical development of Flutiform(TM) thereby helping to ensure its time to market. This will help to secure its competitive position and should in turn enhance its licensing terms. "The Board of Directors firmly believes it is in shareholders' interests to proceed with the clinical development of Flutiform(TM) ourselves." About the Company SkyePharma plc, headquartered in London, develops pharmaceutical products benefiting from world leading drug delivery technologies that provide easier-to-use and more effective drug formulations. In May, it reported net loss of GBP24.3 million for 2004, a decrease of 44% compared with GBP43.2 million in 2003. CONTACT: SKYEPHARMA PLC 105 Piccadilly London United Kingdom W1J 7NJ Phone: +44 20 7491 1777 Fax: +44 20 7491 3338 SLEEP CITY: Furniture Retailer Winds up --------------------------------------- W. Law, Chairman of Sleep City Limited, informs that resolutions to wind up the company were passed at an EGM held on Sept. 15 at 15 Highfield Road, Hall Green, Birmingham B28 0EL. P. Nottingham of Nottingham Watson Ltd., 15 Highfield Road, Hall Green, Birmingham B28 0EL was appointed liquidator. CONTACT: SLEEP CITY LTD. 93 Dudley Road Halesowen West Midlands B63 3NS Phone: 01215850676 Fax: 01215855025 STRATFORD PARK: Names Begbies Traynor Liquidator ------------------------------------------------ Stratford Park Hotel Limited informs that a resolution to wind up the company was passed at an EGM held on Sept. 13 at the offices of Taylor Fry, 70 Conduit Street, London W1G 2GF. Lloyd Biscoe 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 TECTONICS BRISTOL: Administrators Take over Firm ------------------------------------------------ Geoffrey Paul Rowley and Simon Peter Bower (IP Nos 8919 and 8338) of RSM Robson Rhodes LLP were appointed joint administrators of Tectonics Bristol Limited (Company No 04190742) on Sept. 15. The company's registered office is at Boyces Building, Regent Street, Clifton, Bristol BS8 4HU. CONTACT: TECTONICS BRISTOL LTD. The Chicken Shack, Chestnut Farm, Hewish BS24 6RU United Kingdom Phone: 01934 876872 E-mail: sales@tectonicsbristol.co.uk RSM ROBSON RHODES LLP 186 City Road, London EC1V 2NU Phone: +44 (0) 20 7251 1644 Fax: +44 (0) 20 7250 0801 Web site: http://www.robsonrhodes.co.uk TRILOGY LIMITED: Management Consultancy Firm Liquidates ------------------------------------------------------- Steve Maloney, Director of Trilogy Solutions Ltd., informs that resolutions to wind up the company were passed at an EGM held on Sept. 12 at the offices of Parkin S. Booth & Co, 44 Old Hall Street, Liverpool L3 9EB. Paul J. Fleming of Parkin S Booth & Co, 44 Old Hall Street, Liverpool L3 9EB was appointed liquidator. Trilogy Solutions offers IT project management, business consultancy recruitment, and training. It is an independent company formed in 1999. Visit http://www.trilogy.ltd.uk/for more information. CONTACT: TRILOGY SOLUTIONS LTD. Wilson Henry Building 145 Edge Lane Liverpool L7 2PG Phone: +44 (0) 870 241 8724 Fax: +44 (0) 870 241 8726 E-mail: steve.maloney@trilogysolutions.co.uk PARKIN S. BOOTH & CO. 44 Old Hall Street, Liverpool L3 9EB Phone: 0151 236 4331 Fax: 0151 255 0108 E-mail: lp@parkinsbooth.co.uk Web site: http://www.parkinsbooth.co.uk ULTIMATE RESPONSE: Marketing Services Provider Winds up ------------------------------------------------------- E. I. Baskind, Director of Ultimate Response Limited, informs that resolutions to wind up the company were passed at an EGM held on Sept. 19 at the offices of Parkin S. Booth & Co, 44 Old Hall Street, Liverpool L3 9EB. R. M. Rutherford of Parkin S Booth & Co, 44 Old Hall Street, Liverpool L3 9EB was appointed liquidator. Ultimate Response was established in 1987 as a marketing services and business support company. Once part of Sir John Harvey-Jones's Burns-Anderson Group plc, Ultimate Response has matured into a full-service IT-based business providing a whole range of innovative services for a wide range of organizations. CONTACT: ULTIMATE RESPONSE LTD. Custom House, Merseyton Road Ellesmere Port CH65 3AD Cheshire Phone: 0151 356 1000 Fax: 0151 356 1055 Web site: http://www.ultimateresponse.co.uk PARKIN S. BOOTH & CO. 44 Old Hall Street, Liverpool L3 9EB Phone: 0151 236 4331 Fax: 0151 255 0108 E-mail: lp@parkinsbooth.co.uk Web site: http://www.parkinsbooth.co.uk UK ACCESS: Appoints Administrators from Tenon Recovery ------------------------------------------------------ Patrick Ellward (IP No 008702) and Ian William Kings (IP No 007232) of Tenon Recovery were appointed joint administrators of UK Access Marketing Limited (Company No 04638717) on Sept. 19. The company's registered office is at Martin Close, Blenheim Industrial Estate, Bulwell, Nottingham NG6 8UW. CONTACT: TENON RECOVERY Charnwood House, Gregory Boulevard, Nottingham NG7 6NX Phone: 0115 955 2000 Fax: 0115 918 4500 Web site: http://www.tenongroup.com TENON RECOVERY Tenon House, Ferryboat Lane, Sunderland SR5 3JN Phone: 0191 511 5000 Fax: 0191 511 5001 Web site: http://www.tenongroup.com VIDEO LINK: Calls in Liquidator ------------------------------- L. Sadarangani, Director of Video Link Consultants Limited, informs that a resolution to wind up the company was passed at an EGM held on Sept. 12 at 47-49 Green Lane, Northwood, Middlesex HA6 3AE. Ashok K. Bhardwaj of 47-49 Green Lane, Northwood, Middlesex HA6 3AE was appointed liquidator. CONTACT: VIDEO LINK CONSULTANTS LTD. Unit 28, Sheriton Business Centre Wadsworth Road, Perrivale Greenford UB6 7JB Middlesex Phone: 020 8997 1975 Fax: 020 8997 6295 Web site: http://www.videolink.co.uk.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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