/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/051012.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Wednesday, October 12, 2005, Vol. 6, No. 202 Headlines F R A N C E RHODIA S.A.: CFO Steps down for Health Reasons RHODIA S.A.: Completes Sale of Two Businesses G E R M A N Y ATLANTIC-FROST: Hamburg Court Appoints Administrator ELSKE-TRANSPORT: Creditors' Claims Due December FE.LIX GRUNDBAU: Court to Verify Claims February FRESENIUS MEDICAL: Small Investors Sue to Block Status Change GEOSERVICE INGENIEURVERMESSUNG: Succumbs to Bankruptcy IIG IMMOBILIEN: Creditors to Meet Next Month MKTC TELEKOMMUNICATION: Goes Bust STON-BAU: Under Bankruptcy Administration UNI-PAPIER: Dortmund Court Calls in Administrator UNITY MEDIA: Name Change Now Official WALTER BAU: Threatens US$100 Million Lawsuit vs. Thailand H U N G A R Y HERUKON KONFEKCIOIPARI: Debt Downs Clothing Firm I T A L Y ALITALIA SPA: Rules out Additional Job cuts PARMALAT SPA: Snubs EUR180 Mln Offer for Spanish Unit N E T H E R L A N D S ROYAL SHELL: Buys Back Further 875,000 'A' Shares VERSATEL TELECOM: Tele2 Declares Public Offer Unconditional VERSATEL TELECOM: To Delist from Euronext Elite List Thursday N O R W A Y PAN FISH: Boosts Capital Via Private Placement of 123 Mln Shares PAN FISH: Acquires 90% of Aqua Farms R U S S I A DRUZHBA: Hires A. Lytkin Insolvency Manager ERMISH-AGRO-KHIM: Deadline for Proofs of Claim Next Week KRASNOARMEYSKIY: Undergoes Bankruptcy Supervision Procedure MONOLITH-STROY: Declared Insolvent PERVOMAYSKOYE: Insolvency Manager Takes over Company PP METAL-MASTER: Period for Filing of Claims Ends Next Month SISTEMA JSFC: Reports Solid Growth in First Half SOKOLSKIY: Bankruptcy Hearing Set December SOUTH-EAST-STEEL-CONSTRUCTIONS: Under Bankruptcy Supervision TURISNKOYE AIR-ENTERPRISE: Court Brings in Insolvency Manager URENSKIY: Bankruptcy Supervision Procedure Begins S W I T Z E R L A N D GENERAL MOTORS: Moody's Might Downgrade Unsecured Rating SWISS INTERNATIONAL: Puts up Operating Subsidiary U K R A I N E CORPORATION-SPHERE: Last Day for Filing Claims Tomorrow DZHERELO: Declared Insolvent HARKIV' EXPLORATORY: Goes into Liquidation INNOVATIONAL TECHNOLOGIES: Succumbs to Insolvency KRASNODONSKIJ AGROBUD: Sets Proofs of Claim Deadline KUPYANSKIJ RAJAGROHIM: Insolvency Manager Takes over Helm RIZHANIVSKE: Bankruptcy Supervision Starts SUMISILMASH: Creditors' Claims Due this Week TRIUMF: Harkiv Court Appoints Insolvency Manager UKRSOTSBANK: Individual Loans Portfolio Continues to Grow UKRSOTSBANK: Total Loan Portfolio Grows 55% After 9 Months ZEVS: Undergoes Bankruptcy Supervision Procedure U N I T E D K I N G D O M ALLIED MEDICAL: Members Meeting Set End of October ANDERSEN LEIGH: Recruitment Firm Hires Administrator ANDREW LEE: Hires Begbies to Liquidate Assets ANGLIA BUSINESS: Files for Administration ASC NEX: Hires KPMG Liquidator BOOTS GROUP: New CFO Holds 50,791 Ordinary Shares B & S SUPPLIES: Calls in Liquidator CARDIFF RAILWAY: Hires KPMG Liquidator CASTROL CONSUMER: Liquidation Report Out Later this Month CIRCLE DESIGN: Names Buchanans Administrator COMPASS GROUP: Comments on U.N. Procurement Scandal CONSERVATION RESTORATION: Names Grant Thornton Administrator DANIEL THOMAS: Bar Operators Call in Administrators from KPMG DIXON CLOTHING: Goes into Liquidation DORMANTCO 1007: Members Final Meeting Set Later this Month DRUCE INVESTMENT: In Administrative Receivership EQUITABLE LIFE: Drops Claims Against Two More Former Directors E WARD: Members Meeting Set Last Week of October FJ RETAIL: Calls in Liquidator GODFREYS OF ENFIELD: In Liquidation GPE EXHIBITIONS: Creditors Meeting Next Week HAMMOND MEDIA: Creditors to Meet Tomorrow HENDERSON HIGH: Sets Creditors Meeting November 4 INBLOW FORM: Administrators from Vantis Numerica Move in JPMORGAN FLEMING: Liquidator to Deliver Report Early Next Month LAMPTREE LIMITED: Names Liquidator LEAY MBC: Sets Final Meeting October 31 LIFESTYLE BEAUTY: Calls in Joint Liquidators MASQUERADE BAR: Files for Liquidation MG ROVER: Court Awards Former Workers GBP14 Million Payout MILLERS PHOTOGRAPHY: Appoints Liquidator from Begbies MONUMENT INDUSTRIAL: Names Moore Stephens Liquidator NETWORK RAIL: Fined GBP3.5 Million for Hatfield Crash NORTHERN FOODS: Full-, Half-year Profits Lower Under IFRS NORTHERN FOODS: Tough Trading Environment Offsets Gains PROFILE MEDIA: Assigns GBP3 Mln Overdraft Facility to Eden PROTECH BUILDING: Calls in Administrators from Grant Thornton SANCTUARY GROUP: Cuts Workforce by 25% SECURIGUARD ROLLER: Goes into Liquidation TXU EUROPE: Federal Court Orders Permanent Injunction URBAN MOBILE: Calls in Joint Liquidators ********* =========== F R A N C E =========== RHODIA S.A.: CFO Steps down for Health Reasons ---------------------------------------------- Bruno Mouclier has stepped down as chief financial officer of Rhodia S.A. due to health reasons. Jean-Pierre Clamadieu, chief executive officer, will assume the supervision of the Finance Function until a new chief financial officer is appointed. About the Company Rhodia S.A., based in France, is a global specialty chemicals company partnering with major players in the automotive, electronics, fibers, pharmaceuticals, agrochemicals, consumer care, tires and paints & coatings markets to offer tailor-made solutions combining original molecules and technologies to respond to customers' needs. It generated net sales of EUR5.3 billion in 2004 and employs 20,000 people worldwide. It is listed on the Paris and New York stock exchanges. Rhodia slipped into the red in 2001 with a net loss of EUR213 million (US$183.5 million) after three profits warning. The company's stock has deteriorated since its flotation in 1998. Restructuring Plan Due to depressed economic environment, continued high petrochemical raw material prices, persistent weak demand and a negative effect from the value of the dollar, Rhodia launched structural action programs designed to improve long-term profitability. In 2003, it unveiled a plan of action to refocus business portfolio, reduce cost and improve financial structure. A key part of this plan is a EUR600 million divestiture program aimed at reducing debt by EUR500 million. Consolidation of operations resulted to the closure of 19 production units worldwide. In December 2003, Rhodia concluded an agreement with 23 creditor banks for the maintenance of a EUR970 million existing lines of credit, and an adjustment of covenants to June 30, 2004; establishment of a EUR758 million new syndicated medium-term credit line; and a capital increase of approximately EUR300 million. Status to date The company's net loss after amortization of goodwill for 2004 was reduced more than 50% from EUR1,351 million to EUR625 million, giving the firm hope to return to black in 2006. Its overall net loss for the period came to EUR197 million, compared with a net loss of EUR132 million in the second quarter 2004 (before the taking into account EUR187 million of results from discontinued operations). CONTACT: RHODIA S.A. 26, quai Alphonse Le Gallo 92512 Boulogne-Billancourt Cedex, France Phone: +33-1-55-38-40-00 Fax: +33-1-55-38-44-71 Web site: http://www.rhodia.com Press Relations Lucia Dumas Phone: +33 1 55 38 45 48 Anne-Laurence de Villepin Phone: +33 1 55 38 40 25 RHODIA S.A.: Completes Sale of Two Businesses --------------------------------------------- Rhodia has finalized two divestitures initiated during the second quarter 2005: (a) the sale of its European cartridge silicone sealants business to Henkel, following the agreement signed August 8; and (b) the sale of its phosphates and sulfuric acid manufacturing businesses at its site in Rieme to Misa Inc., following the agreement signed September 2. These divestments form part of the divestiture of non-strategic activities being undertaken by the Group with a view to refocusing its business portfolio. Rhodia's cartridge silicone sealants business, which generated sales of more than 50 million euros in 2004, comprises the production and distribution in Europe of a wide range of silicone sealants sold in cartridge form for the construction and Do-It-Yourself (DIY) markets. The Rhodia Group will continue, through its Silcea Enterprise, to develop and manufacture core intermediates as well as bulk silicone sealants and market them in Europe and the rest of the world. The Henkel Group operates in three strategic business areas: Home Care, Personal Care, and Adhesives, Sealants and Surface Treatment. In fiscal 2004, the Henkel Group generated sales of EUR10,592 billion. More than 50,000 employees work for the Henkel Group worldwide. People in around 125 countries around the world trust in brands and technologies from Henkel. Rhodia has also completed the sale of its phosphates and sulfuric acid manufacturing businesses at its site in Rieme (Belgium) to Misa Inc. This transaction marks a further step in Rhodia's withdrawal from the phosphates area. Misa Inc. is an affiliate of Uganda-based Madhvani International engaged in the development of projects in the industry, energy, agriculture and infrastructure sectors. About the Company Rhodia S.A., based in France, is a global specialty chemicals company partnering with major players in the automotive, electronics, fibers, pharmaceuticals, agrochemicals, consumer care, tires and paints & coatings markets to offer tailor-made solutions combining original molecules and technologies to respond to customers' needs. It generated net sales of EUR5.3 billion in 2004 and employs 20,000 people worldwide. It is listed on the Paris and New York stock exchanges. Rhodia slipped into the red in 2001 with a net loss of EUR213 million (US$183.5 million) after three profit warnings. The company's stock has deteriorated since its flotation in 1998. Restructuring Plan Due to depressed economic environment, continued high petrochemical raw material prices, persistent weak demand and a negative effect from the value of the dollar, Rhodia launched structural action programs designed to improve long-term profitability. In 2003, it unveiled a plan of action to refocus business portfolio, reduce cost and improve financial structure. A key part of this plan is a EUR600 million divestiture program aimed at reducing debt by EUR500 million. Consolidation of operations resulted to the closure of 19 production units worldwide. In December 2003, Rhodia concluded an agreement with its 23 creditor banks for the maintenance of a EUR970 million existing lines of credit, and an adjustment of covenants to June 30, 2004; establishment of a EUR758 million new syndicated medium- term credit line; and a capital increase of approximately EUR300 million. Status to date The company's net loss after amortization of goodwill for 2004 was reduced more than 50% from EUR1,351 million to EUR625 million, giving the firm hope to return to black in 2006. Its overall net loss for the period came to EUR197 million, compared with a net loss of EUR132 million in the second quarter 2004 (before the taking into account EUR187 million of results from discontinued operations). CONTACT: RHODIA S.A. 26, quai Alphonse Le Gallo 92512 Boulogne-Billancourt Cedex, France Phone: +33-1-55-38-40-00 Fax: +33-1-55-38-44-71 Web site: http://www.rhodia.com Press Relations Lucia Dumas Phone: +33 1 55 38 45 48 Anne-Laurence de Villepin Phone: +33 1 55 38 40 25 ============= G E R M A N Y ============= ATLANTIC-FROST: Hamburg Court Appoints Administrator ---------------------------------------------------- The district court of Hamburg opened bankruptcy proceedings against ATLANTIC-FROST GmbH on September 15, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until November 9, 2005 to register their claims with court-appointed provisional administrator Juergen Salter. Creditors and other interested parties are encouraged to attend the meeting on December 9, 2005, 12:30 a.m. at the district court of Hamburg, Insolvenzgericht, Sievekingplatz 1, 20355 Hamburg, 4. Etage, Anbau, Saal B 405, 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: ATLANTIC-FROST GmbH Hovestrasse 72, 20539 Hamburg Contact: Juergen Salter, Manager Burckhardt Reimer, Administrator Domstrasse 15, 20095 Hamburg Phone: 41522416 Fax: 41522-411 ELSKE-TRANSPORT: Creditors' Claims Due December ----------------------------------------------- The district court of Charlottenburg opened bankruptcy proceedings against Elske-Transport GmbH on September 15. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until December 15, 2005 to register their claims with court-appointed provisional administrator Sebastian Laboga. Creditors and other interested parties are encouraged to attend the meeting on November 3, 2005, 10:05 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 16, 2006, 10:00 a.m. at the same venue. CONTACT: ELSKE-TRANSPORT GmbH Paradiesstr. 210-218, 12526 Berlin Sebastian Laboga, Administrator Einemstr. 24, 10785 Berlin FE.LIX GRUNDBAU: Court to Verify Claims February ------------------------------------------------ The district court of Charlottenburg opened bankruptcy proceedings against Fe.lix Grundbau & Umwelttechnik GmbH Berlin on September 20. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until December 20, 2005 to register their claims with court- appointed provisional administrator Udo Feser. Creditors and other interested parties are encouraged to attend the meeting on October 25, 2005, 9:25 a.m. at the district court of Charlottenburg, Amtsgerichtsplatz 1, 14057 Berlin, II. Stock Saal 218, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report on February 14, 2006, 9:25 a.m. at the same venue. CONTACT: FE.LIX GRUNDBAU & UMWELTTECHNIK GmbH BERLIN Glambecker Weg 31,13467 Berlin Udo Feser, Administrator Uhlandstr. 165/166, 10719 Berlin FRESENIUS MEDICAL: Small Investors Sue to Block Status Change ------------------------------------------------------------- Fresenius Medical Care AG on Oct. 10 said the Company has been named in some civil actions by a small number of shareholders contesting the resolutions of the Extraordinary General Meeting. The EGM was held August 30, 2005 to transform the Company's legal form into a partnership limited by shares (KGaA) and to convert the preference shares into ordinary shares to move to one share class. The Company believes that these actions are without merit and it will defend vigorously the resolutions adopted by the EGM in an appropriate way. The transformation of the Company's legal form and the conversion of the preference shares were approved by an overwhelming majority of common and preference shareholders at the EGM. The transformation was approved by nearly 91% of the represented ordinary share capital, and the conversion was approved by nearly 94% of the represented ordinary share capital. At the Separate Meeting of Preference Shareholders, which was held immediately following the EGM, the preference share conversion proposal was approved by nearly 85% of the represented preference share capital. Moreover, broad shareholder support for the resolutions is also evidenced by the strong share price development since the announcement in May 2005. As a result of the acceptance of these capital structure changes by the majority of the shareholders and the financial community, Fresenius Medical Care will continue its preparation to accomplish these value-enhancing transactions with determination. Fresenius Medical Care AG is the world's largest, integrated provider of products and services for individuals undergoing dialysis because of chronic kidney failure, a condition that affects more than 1,300,000 individuals worldwide. Through its network of approximately 1,645 dialysis clinics in North America, Europe, Latin America, Asia-Pacific and Africa, Fresenius Medical Care provides dialysis treatment to approximately 128,200 patients around the globe. Fresenius Medical Care is also the world's leading provider of dialysis products such as hemodialysis machines, dialyzers and related disposable products. For more information about Fresenius Medical Care visit http://www.fmc-ag.com * * * Early in July, Moody's Investors Service downgraded the ratings of Fresenius Medical Care as a result of the company's planned debt-funded acquisition of Renal Care Group. Concurrently, Moody's assigned a Ba2 rating to FME's new Euro 5 billion senior credit facility put in place to finance the transaction. This concludes the review initiated on 4 May 2005. Moody's ratings reflect the agency's assumption that FME's proposed acquisition of RCG will be completed as expected and considers the enlarged company's ability to service its significantly higher debt burden as a result of the transaction as well as integration risks resulting from the acquisition. CONTACT: FRESENIUS MEDICAL CARE AG Investor Relations Oliver Maier Phone: + 49 6172 609 2601 E-mail: ir-fms@fmc-ag.com Heinz Schmidt (North America) Phone: + 1 781 402 9000 Ext.: 4518 E-mail: ir-fmcna@fmc-ag.com Web site: http://www.fmc-ag.com GEOSERVICE INGENIEURVERMESSUNG: Succumbs to Bankruptcy ------------------------------------------------------ The district court of Charlottenburg opened bankruptcy proceedings against Geoservice Ingenieurvermessung GmbH on September 16. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until December 15, 2005 to register their claims with court-appointed provisional administrator Dr. Christoph Schulte-Kaubruegger. Creditors and other interested parties are encouraged to attend the meeting on November 3, 2005, 9:40 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 February 9, 2006, 9:55 a.m. at the same venue. CONTACT: GEOSERVICE INGENIEURVERMESSUNG GmbH Fidicinstr.3,10965 Berlin Dr. Christoph Schulte-Kaubruegger, Administrator Genthiner Str. 48, 10785 Berlin IIG IMMOBILIEN: Creditors to Meet Next Month -------------------------------------------- The district court of Charlottenburg opened bankruptcy proceedings against IIG Immobilien-Investitionsgesellschaft mbH on September 16. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until December 21, 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 November 2, 2005, 10:45 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 15, 2006, 10:15 a.m. at the same venue. CONTACT: IIG IMMOBILIEN-INVESTITIONSGESELLSCHAFT mbH Bellevuestr.1, Sonycenter,10785 Berlin Dr. Petra Hilgers, Administrator Goethestr. 85, 10623 Berlin MKTC TELEKOMMUNICATION: Goes Bust --------------------------------- The district court of Frankfurt am Main opened bankruptcy proceedings against MKTC Telekommunication GmbH on September 14. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until February 24, 2006 to register their claims with court-appointed provisional administrator Petra Heidenfelder. Creditors and other interested parties are encouraged to attend the meeting on March 21, 2006, 9:10 a.m. at the district court of Frankfurt am Main, Saal 2, Geb. F, Klingerstr. 20, 60313 Frankfurt, 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: MKTC TELEKOMMUNICATION GmbH Wollstadter Strasse 13, 60385 Frankfurt am Main Petra Heidenfelder, Administrator Bleichstrasse 2-4, 60313 Frankfurt am Main Phone: 069/9130920 Fax: 069/91309230 STON-BAU: Under Bankruptcy Administration ----------------------------------------- The district court of Frankfurt (Oder) opened bankruptcy proceedings against STON-Bau GmbH on September 20. 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 Ruediger Wienberg. Creditors and other interested parties are encouraged to attend the meeting on December 13, 2005, 11:00 a.m. at the district court of Frankfurt (Oder), Muellroser Chaussee 55, 15236 Frankfurt (Oder), Saal 401, 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: STON-BAU GmbH Sitz Storkow, Siegfriedstr. 46 - 48, 10365 Berlin Ruediger Wienberg, Administrator Giesebrechtstr. 1, 10629 Berlin UNI-PAPIER: Dortmund Court Calls in Administrator ------------------------------------------------- The district court of Dortmund opened bankruptcy proceedings against Uni-Papier Handels GmbH on September 19. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until October 28, 2005 to register their claims with court-appointed provisional administrator David Wit. Creditors and other interested parties are encouraged to attend the meeting on November 18, 2005, 10:30 a.m. at the district court of Dortmund, Nebenstelle, Gerichtsplatz 1, 44135 Dortmund, II. Etage, Saal 3.201, 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: UNI-PAPIER HANDELS GmbH Mathildenstr. 18, 44388 Dortmund Contact: David Wit, Manager Achim Thomas Thiele, Administrator Bronnerstrasse 7, 44141 Dortmund Phone: 54110 Fax: 5411266 UNITY MEDIA: Name Change Now Official ------------------------------------- Unity Media GmbH said its name change to Unity Media GmbH from iesy Repository GmbH has now been entered into the German Commercial Register. The name change to Unity Media Management GmbH (from New iesy GmbH) is going to be entered into the German Commercial Register shortly. The company also said that following the ish Acquisition, iesy's finance and administrative functions have relocated from Frankfurt to ish's office in Cologne. * * * As reported by TCR-Europe on Aug. 10, the parent company of ish and iesy, the recently combined cable network operators in North Rhine-Westphalia and Hesse, was named Unity Media GmbH. The brands of the two subsidiary companies ish and iesy will remain unchanged in our communications with customers. About Unity Media Unity Media is headquartered in Cologne and is the proprietor of the Hessian cable network operator iesy and the North Rhine- Westphalian cable network operator ish. The two companies are the largest providers of cable television in their respective states. In addition to analogue cable services, ish and iesy also offer digital TV, high-speed Internet and telephony. On 30 June 2005, iesy and ish had approximately 5.2 million basic cable customers, 88,450 digital TV customers, 27,500 high-speed Internet customers, and 9,800 telephone connections. More information on ish and iesy can be found at http://www.iesy.de and http://www.ish.de * * * In conjunction with its merger with iesy, the company closed EUR920 million of new senior secured credit facilities (EUR850 million funded term loans, with an incremental EUR70 million revolving credit facility) and drew from a EUR360 million bridge loan facility. Pro forma for the transaction, the Company has EUR1,625 million total debt and approximately EUR15 million of cash on hand, representing approximately EUR1,610 million net debt. AlixPartners LLC is helping the company in its restructuring efforts. CONTACT: UNITY MEDIA GMBH Widdersdorfer Strasse 399-403 D-50933 Koln Germany E-mail: Investor.Relations@iesy.de Phone: ++49-221-37792 915 Fax: ++49-221-37792 871 Carla Wagner Phone: ++49-221-37792 164 Michael Frank Phone: ++49-221-37792 150 WALTER BAU: Threatens US$100 Million Lawsuit vs. Thailand --------------------------------------------------------- Walter Bau plans to sue the Thai government before an international arbitration tribunal to recover US$100 million in lost profits, Suddeutsche Zeitung says. According to the company, the decision by the government to reduce toll on a 21-km motorway in Bangkok from THB70 to THB20 has rendered its investment worthless. Walter Bau owns a 10% stake in the consortium operating the motorway. It is also claiming unspecified amount in unpaid building cost. The German government has already joined the fray. In his August 16, 2005 letter, German minister for economic affairs, Wolfgang Clement, warned Bangkok that failure to settle the matter will have negative ramifications on bilateral ties. The Thai government has reportedly ignored the letter. Walter Bau declared insolvency in February after creditor banks refused to approve its restructuring plan. This denied the company access to a EUR1.5 billion credit line. In his report to the creditors, insolvency administrator Werner Schneider blamed the group's demise to management errors and the downturn in the construction industry. CONTACT: WALTER BAU AG Boheimstr. 8 86153 Augsburg Phone: +49 (0)8 21/55 82-00 Fax: +49 (0)8 21/55 82-3 20 Web site: http://www.walter-bau.de INDUSTRI KAPITAL (DEUTSCHLAND) GmbH ABC-Bogen Hamburg ABC-Strasse 19 D-20354 Hamburg Phone: +49-(0)40-369 8850 Fax: +49-(0)40-369 885 30 Web site: http://www.industrikapital.com ============= H U N G A R Y ============= HERUKON KONFEKCIOIPARI: Debt Downs Clothing Firm ------------------------------------------------ Clothing manufacturer Herukon Konfekcioipari Rt. has gone into liquidation, Budapest Business Journal says. According to local daily Vilaggazdasag, the company has racked up HUF250-300 million in debt. It tried but failed to obtain state aid in May after failing to repay its debt, a condition for the aid. Established in 1954, the company employs 570 people in Satoraljaujhely. Part of the site, which is still leased to an unnamed investor and employs 80, will continue to operate. CONTACT: HERUKON KONFEKCIOIPARI RT. Borsod-Abauj-Zemplen county 3980 Satoraljaujhely, Dozsa Gyorgy ut 20 Phone: 0036-47/523-309 Fax: 0036-47/523-302 E-mail: herukon@axelero.hu Web site: http://herukon-rt.internettudakozo.hu ========= I T A L Y ========= ALITALIA SPA: Rules out Additional Job cuts ------------------------------------------- Alitalia S.p.A. will not axe workers to save money and its restructuring plan, says Reuters. According to a union insider, management and workers have reached an agreement to seek alternative venues for saving costs like reduction of benefits or temporary deferment of year-end bonuses. "The company should not present unions with a request for job cuts but look for shared solutions that reduce the [labor- related] costs," the source told Reuters. "The idea is to offer a range of measures that could even be temporary. In some cases, it could involve a deferment of payments, in others payment in the form of company shares." The source added Alitalia could also offer better exit incentives if it wants a more permanent solution like job cuts. Alitalia, in close-door meeting last week, asked unions to help spot ways to slash an additional EUR170 million in cost to help offset soaring fuel prices. The oil crisis is undermining the viability of the company's EUR1.2 billion recapitalization scheduled before the year ends. About the Company Headquartered in Viale A. Marchetti 111, 00148 Rome, Italy, Alitalia S.p.A. -- http://www.alitalia.it-- generates more than EUR4 billion in annual revenue and employs more than 20,000 people. As of December 2004, the group net debt stood at EUR1.76 billion in 2004. Alitalia flies to about 80 destinations in more than 60 countries from its hubs in Rome and Milan and operates a fleet of about 185 aircraft. Despite a EUR1.4 billion state-backed restructuring in 1997 and a EUR1.4 billion capital injection two years ago, the carrier remains in deep financial crisis. Alitalia has posted an annual profit only four times in the past 16 years. A turnaround plan approved late 2004 will split the airline's flight and ground operations, paving the way for its privatization. Banca Intesa S.p.A. and Deutsche Bank will underwrite the carrier's EUR1.2 billion rights issue to finance the restructuring. CONTACT: ALITALIA S.p.A. Viale A. Marchetti 111 00148 Rome, Italy Phone: +39 06 6562 2151 Fax: +39 06 6562 4733 Web site: http://www.alitalia.it PARMALAT SPA: Snubs EUR180 Mln Offer for Spanish Unit ----------------------------------------------------- Spanish holding group Nueva Rumasa has offered EUR180 million for Clesa, the Madrid-based subsidiary of Parmalat S.p.A. The offer was rejected out of hand, Expansion says. Clesa General Manager Fernando di Gaetano said the company is not for sale, adding Parmalat considers it a strategic asset in Spain. Even at the height of Parmalat's worldwide downsizing, it had always ruled out Clesa's sale. Clesa reported first-quarter turnover of EUR49.5 million, down 5% from last year. Rumasa, owned by the Ruiz-Mateos family, generates annual turnover of EUR350 million. Parmalat resumed trading on the Milan Stock Exchange last week, after a two-year absence. CONTACT: PARMALAT FINANZIARIA S.p.A. Legal Seat 43044 Collecchio (Pr) Via Oreste Grassi, 26 Administrative Seat 20122 Milan Piazza Erculea, 9 Phone: +39 02 806 8801 Fax: +39 02 869 3863 Web site: http://www.parmalat.net NUEVA RUMASA Paseo de la Castellana 155 5C 28046 Madrid Phone: 91 425 22 65 Fax: 91 425 23 06 E-mail: despacho@asesoria-rumasa.com Web site: http://www.asesoria-rumasa.com ===================== N E T H E R L A N D S ===================== ROYAL SHELL: Buys Back Further 875,000 'A' Shares ------------------------------------------------- On 10 October 2005, Royal Dutch Shell plc purchased for cancellation 875,000 'A' Shares at a price of EUR26.06 per share. It further purchased for cancellation 275,000 'A' Shares at a price of 1,793.84 pence per share. Following the cancellation of these shares, the remaining number of 'A' Shares of Royal Dutch Shell plc will be 4,010,065,000. 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 VERSATEL TELECOM: Tele2 Declares Public Offer Unconditional ----------------------------------------------------------- With reference to the earlier press releases of 18 July 2005, 17 August 2005, 8 September 2005 and 13 September 2005 and to the offer memorandum of 14 September 2005), Tele2 Finance B.V. and Apax Partners said that Tele2 waives the offer condition, as set out in the Offer Memorandum, that at least 95% of the ordinary shares in the capital of Versatel Telecom International N.V. are tendered. Tele2 declares both the offer for all Shares (Offer I) and the offer for all 3.875% convertible senior notes due 2011 convertible into ordinary shares in the capital of Versatel ("Bonds", the offer for the Bonds referred to as "Offer II") unconditional. The Shares and Bonds tendered under Offer I and Offer II respectively would represent, should all Bonds be converted into Shares, approximately 77.25% of the consequently diluted share capital of Versatel. 387,423,035 Shares have been tendered under Offer I, representing 74% of the issued and outstanding share capital of Versatel, and 1,250 Bonds have been tendered under Offer II, representing 100% of the issued and outstanding Bonds. Settlement With reference to the Offer Memorandum, Tele2 will pay, no later than 14 October 2005 (the First Settlement Date), an amount of EUR2.20 in cash for each validly tendered (or defectively tendered provided that such defect has been waived by Tele2) and delivered Share (Offer Price per Share). For each validly tendered (or defectively tendered provided that such defect has been waived by Tele2) and delivered Bond, Tele2 will, with reference to the Offer Memorandum, no later than 14 October 2005 pay a cash amount of EUR132,273.61. Admitted Institutions to Euronext Amsterdam must deliver tendered Shares to ABN AMRO Bank N.V. as Settlement Agent by 13 October 2005 at the latest. Post-acceptance Period in Respect of Offer I Tele2 grants holders of Shares who have not yet tendered their Shares under Offer I the opportunity to tender their Shares in a post-acceptance period. The post-acceptance period commences at 09:00 hours, Amsterdam time (03:00 hours, New York time), on 11 October 2005 and expires at 15:00 hours, Amsterdam time (09:00 hours, New York time), on 31 October 2005. Holders of Shares can tender their Shares in the same manner and subject to the same conditions as described in the Offer Memorandum, provided that the price payable per Share tendered in the post-acceptance period will be the Offer Price per Share less the amount of any distribution made on the Shares between the settlements on the First Settlement Date and on the Second Settlement Date (as defined hereinafter) (the "Adjusted Offer Price per Share"). Shares tendered in the post-acceptance period may not be withdrawn. Tele2 expects to make an announcement regarding the number of Shares and Bonds held by Tele2 per the last day of the post- acceptance period no later than 7 November 2005 (the Second Settlement Date). Payment of the Adjusted Offer Price per Share for Shares that have been validly tendered (or defectively tendered provided that such defect has been waived by Tele2) and delivered during the post-acceptance period will take place no later than 14 November 2005. Holders of Shares are reminded that, as described in the Offer Memorandum: (i) it is intended that Versatel's listing on Euronext Amsterdam N.V. will be terminated as soon as possible; (ii) Tele2 expects to initiate, subject to the necessary threshold being reached, the statutory procedure contemplated by the Dutch Civil Code in order to acquire all Shares held by minority holders of Shares or, regardless of the number of Shares tendered, to take such other steps to terminate the listing and/or acquire Shares that have not been tendered, including effecting a legal merger (juridische fusie); and (iii) the acquisition of Shares by Tele2 pursuant to Offer I will, among other things, reduce the number of holders of Shares and the number of Shares that might otherwise trade publicly, thus adversely affecting the liquidity and the market value of the remaining Shares not tendered and not held by Tele2. This is a joint press release of Tele2 funds advised by Apax Partners in relation to the recommended cash offer for the shares and convertible notes in Versatel. Not for release, publication or distribution, in whole or in part, in or into Australia, Canada, Italy or Japan. Tele2 is Europe's leading alternative telecom operator. Tele2 always strives to offer the market's best prices. With its unique values, it provides cheap and simple telecom for all Europeans every day. It has 29.4 million customers in 25 countries. It offers products and services in fixed and mobile telephony, Internet access, data networks, cable TV and content services. Its main competitors are the former government monopolies. Tele2 was founded in 1993 by Jan Stenbeck and has been listed on Stockholmsborsen since 1996. In 2004 it had operating revenue of SEK43 billion and reported a profit (EBITDA) of EK 6.6 billion. CONTACT: TELE2 FINANCE B.V. Investor Relations Department Ellermannstraat 19 1099 BX Amsterdam The Netherlands Phone: +46 856 20 0045 Fax: +46 856 20 0040 E-mail: investor.relations@tele2.com VERSATEL TELECOM INTERNATIONAL N.V. Investor Relations Department Hullenbergweg 101 1101 CL Amsterdam The Netherlands Phone: +31 20 750 2362 Fax: +31 20 750 1019 E-mail: investor.relations@versatel.com APAX Ira Wuelfing, Communication Phone: +49 89 200030 33 VERSATEL TELECOM: To Delist from Euronext Elite List Thursday ------------------------------------------------------------- Following the official result of the takeover bid by Tele2 Finance for the Dutch company Versatel Telecom International N.V. (Next150), Versatel will be removed from the Next 150 Index effective Thursday 13 October 2005. In accordance with the rules of the Next 150 Index the removed company will not be replaced immediately, but at the next quarterly review (effective 2 January 2006). As of Thursday 13 October 2005, the Next 150 Index will consist of 149 companies. * * * The Euronext 100 Index and Next 150 Index have been published since 2 October 2000. They are made up of the 250 securities with the highest market capitalizations traded on the official markets of Euronext. In order to be included in the indices the securities must meet liquidity criteria that are specified in the rules of the indices. Euronext Indices B.V. is the compiler of the indices under the supervision of the independent Euronext Indices Steering Committee. CONTACT: TELE2 FINANCE B.V. Investor Relations Department Ellermannstraat 19 1099 BX Amsterdam The Netherlands Phone: +46 856 20 0045 Fax: +46 856 20 0040 E-mail: investor.relations@tele2.com VERSATEL TELECOM INTERNATIONAL N.V. Investor Relations Department Hullenbergweg 101 1101 CL Amsterdam The Netherlands Phone: +31 20 750 2362 Fax: +31 20 750 1019 E-mail: investor.relations@versatel.com ABN AMRO Bank N.V. Servicedesk MF7020 Kemelstede 2 4817 ST Breda The Netherlands Phone: +31 76 579 9455 Fax: +31 76 579 9643 E-mail: so.servicedesk.c&cc@nl.abnamro.com =========== N O R W A Y =========== PAN FISH: Boosts Capital Via Private Placement of 123 Mln Shares ---------------------------------------------------------------- In reference to the announcement that Pan Fish A.S.A. has entered into an agreement to acquire Norwegian fish farmer Aqua Farms, the board has carried out an increase in the company's capital stock through a private placement of 123.4 million new shares to a consortium established by First Securities A.S.A. and Nordea Securities A.S.A. The subscription price for the new shares is NOK1.67 per share, corresponding to the share's closing price the previous day of trading. In total, approximately 400 million shares were subscribed for, corresponding to an over-subscription of more than 300%. The subscription consortium consists mainly of major professional/institutional investors. Pan Fish's principal shareholder was assigned approximately 59.6 million new shares. Upon registration of the private placement the company's share capital will be NOK1,018,587,408.75, divided into 1,358,116,545 shares, each with a face value of NOK0.75. The private placement is expected to be registered in the Register of Business Enterprises (Foretaksregisteret) approximately 17 October 2005. The gross proceeds from the private placement are NOK206.1 million. The remaining part of the acquisition of Aqua Farms, which is not covered directly by the private placement of shares, will be financed through a liable subordinated loan provided by the main shareholder. About the Company Pan Fish is headquartered in Stavanger, Norway. It grows salmon and trout for export. It closed its two-year restructuring in May with a NOK200 million share issue, and the conversion of NOK500 million of the company's debt into shares. It reported NOK10.4 million operating loss in the first-quarter. CONTACT: PAN FISH A.S.A. Maskinveien 32, P.O. Box 342 Forus N-4067 STAVANGER Phone: +47 70 11 61 00/+47 9115 2977 Fax: +47 70 11 61 34 E-mail: post@panfish.no Web site: http://www.panfish.com PAN FISH: Acquires 90% of Aqua Farms ------------------------------------ Pan Fish A.S.A. has agreed to acquire approximately 90% of the shares in the Aqua Farms group, making Pan Fish the second largest fish farming company in Norway and the fourth largest in the world. Through the acquisition of Aqua Farms, that holds 16 licenses, three of which are 50% owned, the production capacity of Pan Fish Norway will increase by 33%, from 44 to 60 licenses. Geographically, Aqua Farms is located in the same area as Pan Fish Norway, and the acquisition will lay the foundations for the establishment of one of the world's most efficient clusters within the farming of Atlantic salmon. Aqua Farms has a production cost (EBIT) below NOK18.00 per kilo for gutted salmon. With its dedication to cost and quality, Aqua Farms fits perfectly into Pan Fish's "lowest cost to market" strategy. Aqua Farms has a strong position as a supplier towards large retail clients in the EU, and thereby complements the position of Pan Fish as a supplier towards the professional industrial segment. Aqua Farms is characterized by its solid grip on all the elements in the production process and the beneficial locations of its production facilities. As of August, Aqua Farms made an operating result of NOK28.6 million, for 4,800 tonnes gutted salmon, corresponding to NOK5.95 per kilo gutter weight. Planned harvesting for wholly owned licenses is 4,000 tonnes gutted weight in the last four months of the year. The price paid by Pan Fish corresponds to NOK285 million for 100% of the equity. Interest-bearing debt at the time of acquisition are estimated at NOK200 million. This yields an enterprise value (EV) of NOK485 million. The enterprise value for the fish farming division, adjusted for the value of minority shares, is NOK451 million. Converted into 100% ownership, Aqua Farms owns the equivalent of 14.5 licenses. The estimated equity at the time of acquisition is NOK140 million. In addition, the Aqua Farms group owns 27.4% of one of Norway's leading quality exporters of salmon products, Aalesundfisk, and 33.3 % of France's third largest smokehouses, Kritsen. Both Kritsen and Aalesundfisk have a strong position towards the retail market in the EU. The two minority positions have been estimated at their book value, NOK34 million, in the accounts for Aqua Farms as of December 31, 2004. The final allocation of the acquisition price will be made in connection with the annual accounts for 2005. The acquisition date is November 1, which is also the date of the consolidation into the Pan Fish accounts. In the event that Pan Fish should own more than 90% of the shares, Aqua Farms will not be in tax payable position for several years. The transaction will be financed by equity directly through an increase of capital and/or in combination with subordinated loans. Additional information about Aqua Farms The acquisition of Aqua Farms enables Pan Fish Norway to establish one of the world's most favorable fish farming clusters, covering the dense coastline from the northern part of the county of Hordaland and including the counties of Sogn og Fjordane and More og Romsdal. The efficient operation of Aqua Farms is ensured through 60 licenses, high-quality smolt production, ideal locations, solid qualifications and the world's most modern salmon harvesting facilities. All within a 24-hour road transport from the market. Pan Fish's fundamental strategy during the past few years, with a strong focus on cost-efficient production and distribution of the supply of salmon, is gradually showing good results, and the acquisition of Aqua Farms is a continuation of this strategy. Aqua Farms produces its own smolt. The capacity of approximately 4 million smolt is based on high-quality water sources, and with a moderate investment, the production can easily be increased to 7.5 million smolt, should the market be ready for it. The harvesting of the Aqua Farms group for 2005 is planned at approximately 10,800 tonnes gutted weight, of which about 2,000 tonnes will come from the three 50 % owned licenses. For 2006, the planned harvesting figures are 13,500 tonnes gutted weight, of which partly owned licenses will contribute 2,200 tonnes. Pan Fish Chief Executive Atle Eide said: "The acquisition of Aqua Farms has given us access to a company that is based on the same policies as Pan Fish when it comes to strategy and way of organizing. Geographically, Aqua Farms is located in the same area as us, and this opens up for advantages in terms of synergies. But it is equally important that Pan Fish is acquiring a well-run company with a solid expertise when it comes to producing cost efficient quality salmon." Aqua Farms Chief Executive Sigbjorn Haugen said: "Pan Fish will undoubtedly become beneficial owners of Aqua arms. The companies share the same views when it comes to building a competitive power in this new and demanding industry. Ever since the beginning of the 1990s, Aqua Farms has been dedicated to maintaining a strong focus on low cost and quality. "Sustainable operations, based on healthy competition have been the cornerstones of both our company and Pan Fish. Uniting a substantial production in the same area, with the addition of our own smolt production and very favorable facilities, forms the basis for creating one of the world's most efficient fish farming businesses." About the Company Pan Fish is headquartered in Stavanger, Norway. It grows salmon and trout for export. It closed its two-year restructuring in May with a NOK200 million share issue, and the conversion of NOK500 million of the company's debt into shares. It reported NOK10.4 million operating loss in the first-quarter. CONTACT: PAN FISH A.S.A. Maskinveien 32, P.O. Box 342 Forus N-4067 STAVANGER Phone: +47 70 11 61 00/+47 9115 2977 Fax: +47 70 11 61 34 E-mail: post@panfish.no Web site: http://www.panfish.com =========== R U S S I A =========== DRUZHBA: Hires A. Lytkin Insolvency Manager ------------------------------------------- The Arbitration Court of Voronezh region has commenced bankruptcy supervision procedure on open joint stock company Druzhba. The case is docketed as A14-10455-2005/105/76. Mr. A. Lytkin has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 397160, Russia, Voronezh region, Borisoglebsk, Sovetskaya Str. 29, Office 19. A hearing will take place on December 22, 2005, 11:20 a.m. at Russia, Voronezh region, Srednemopskovkaya Str. 77, Room 314. CONTACT: DRUZHBA 397520, Russia, Voronezh region, Buturlinovka, Gorkogo Str. 2A Mr. A. Lytkin Temporary Insolvency Manager 397160, Russia, Voronezh region, Borisoglebsk, Sovetskaya Str. 29, Office 19 ERMISH-AGRO-KHIM: Deadline for Proofs of Claim Next Week -------------------------------------------------------- The Arbitration Court of Ryazan region has commenced bankruptcy supervision procedure on open joint stock company Ermish-Agro- Khim. The case is docketed as A54-3048/05-S20. Mr. I. Ryumin has been appointed temporary insolvency manager. Creditors have until October 17, 2005 to submit their proofs of claim to 390044, Russia, Ryazan, Moskovskoye Shosse Str. 20, office 37. A hearing will take place on November 3, 2005 at 12:00 p.m. CONTACT: ERMISH-AGRO-KHIM Russia, Ryazan region, Ermish Mr. I. Ryumin Temporary Insolvency Manager 390044, Russia, Ryazan region, Moskovskoye Shosse Str. 20, Office 37 KRASNOARMEYSKIY: Undergoes Bankruptcy Supervision Procedure ----------------------------------------------------------- The Arbitration Court of Krasnodar region has commenced bankruptcy supervision procedure on butter cheese factory Krasnoarmeyskiy. The case is docketed as A32-11366/2005-46/156- B. Mr. M. Musaelyan has been appointed temporary insolvency manager. Creditors have until October 17, 2005 to submit their proofs of claim to: (a) KRASNOARMEYSKIY Russia, Krasnodar region, Krasnoarmeyskiy region, Poltavskaya St., Moskovskaya Str. 171 (b) Mr. M. Musaelyan Temporary Insolvency Manager 353440, Russia, Krasnodar region, Anapa, Shevchenko Str. 2 (c) The Arbitration Court of Krasnodar region Russia, Krasnodar region, Krasnaya Str. 6 MONOLITH-STROY: Declared Insolvent ---------------------------------- The Arbitration Court of Chuvashiya republic commenced bankruptcy proceedings against Monolith-Stroy (TIN 2126001623, KPP 212701001) after finding the open joint stock company insolvent. The case is docketed as A79-786/2005. Mr. V. Mityunin has been appointed insolvency manager. CONTACT: MONOLITH-STROY Russia, Chuvashiya republic, Cheboksary, Mashinostroiteley Pr. 17A Mr. V. Mityunin Insolvency Manager 428020, Russia, Chuvashiya republic, Cheboksary, Petrova Str. 6 The Arbitration Court of Chuvashiya republic Russia, Cheboksary, Lenina Pr. 4 PERVOMAYSKOYE: Insolvency Manager Takes over Company ---------------------------------------------------- The Arbitration Court of Novosibirsk region commenced bankruptcy proceedings against Pervomayskoye after finding the close joint stock company insolvent. The case is docketed as A45-9316/05- 25/228. Mr. V. Makarov has been appointed insolvency manager. CONTACT: PERVOMAYSKOYE 632430, Russia, Novosibirsk region, Kargatskiy region, Koltsovka Mr. V. Makarov Insolvency Manager 630501, Russia, Novosibirsk region, Krasnoobsk-1, Post User Box 325 PP METAL-MASTER: Period for Filing of Claims Ends Next Month ------------------------------------------------------------ The Arbitration Court of Irkutsk region commenced bankruptcy proceedings against PP Metal-Master after finding the limited liability company insolvent. The case is docketed as A19- 18228/05-37. Mr. S. Mubarakov has been appointed insolvency manager. Creditors have until November 10, 2005 to submit their proofs of claim to 3666304, Russia, Irkutsk, Sayansk, 7-9-16. A hearing will take place on November 22, 2005, 10:00 a.m. at 664000, Russia, Irkutsk, Gagarina Avenue, 70, Room 317. CONTACT: PP METAL-MASTER 666303, Russia, Irkutsk region, Sayansk, Mirnyj location, 7-118 Mr. S. Mubarakov Insolvency Manager 666304, Russia, Irkutsk region, Sayansk, 7-9-16 SISTEMA JSFC: Reports Solid Growth in First Half ------------------------------------------------ Sistema JSFC (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, revealed unaudited reviewed consolidated U.S. GAAP financial results for the six months ended June 30, 2005. Highlights -- Consolidated revenues grew 38% to US$3.35 billion, -- OIBDA[*] increased 27% to US$1.42 billion, -- Operating income up 22% to US$941.3 million, -- Net income grew 33% to US$227.7 million, -- Total consolidated assets increased 57% to US$11.57 billion, -- 150% increase in shareholders' equity following successful IPO on London Stock Exchange in February Vladimir Evtushenkov, president and chief executive officer of Sistema, commented on the half year results: "This set of results is the first one reflecting the company's performance post-IPO, and we would like it to be viewed as evidence of our ability to deliver on our promises to investors. Our businesses, both existing and newly acquired, exhibited solid growth in the first half of 2005, and we are seeing further improvement in the fundamentals of our portfolio. The strength of Sistema has always been in the combination of solid business planning and effective execution, and we intend to continue capitalizing on this going forward. We have already consummated several successful transactions in the third quarter of the year, and are moving in line with our strategy for the remainder of the year." Financial Summary (US$ millions) H1 2005 H1 2004 Growth FY 2004 Revenues 3,355.0 2,428.0 38% 5,711.3 Operating income 941.3 772.1 22% 1,664.7 Margin 28% 32% - 29% Net Income 227.7 171.0 33% 411.2 OIBDA 1,421.9 1,119.9 27% 2,464.6 Margin 42% 46% - 43% Financial and Operating Review Sistema's consolidated revenues increased by 38% year-on-year to US$3.35 billion in the six-month period ended June 30, 2005, from US$2.43 billion in the same period of 2004. Revenue growth in existing businesses was US$671.7 million, or 28%. The consolidation of Kvazar-Micro, Uzdunrobita, Gorizont-RT and others contributed a total of US$255.2 million to the increase. Over the reporting period the company continued to diversify its business, both in terms of industries, and geographically. The Telecommunications segment represented 79.9% of total aggregated revenues for the period, compared with 86.9% in the same period of last year, while the share of the Technology segment increased to 12.7% from 3.4%. The revenues derived from Ukraine were US$691.9 million vs. US$345.3 million in the previous reporting period. Consolidated OIBDA increased by 27% year-on-year to US$1.42 billion from US$1.12 billion for the six month period of 2004. The OIBDA margin decreased to 42% for the six months ended June 30, 2005, compared to 46% for the same period of 2004, both through a slight decrease in margins for the Telecommunications segment, and the growth of share of lower-margin segments in total revenues. Sistema's operating income increased by 22% to US$941.3 million from US$772.1 million in the previous year. MTS contributed US$788.6 million, or 84%, of the Group's aggregated operating income in the six-month period ended June 30, 2005, vs. 91% in the first half of 2004. Group net income increased by 33% year on year to US$227.7 million for the six months ended June 30, 2005, from US$171.0 million for the six months ended June 30, 2004, with net income margin slightly declining to 6.8% from 7.0%. Throughout the reporting period, Sistema continued to optimize its debt portfolio. Our total long-term indebtedness amounted to US$3.03 billion as at June 30, 2005, compared to US$1.74 billion as at the same date last year, while current debt declined to US$529.9 million from US$747.7 million. The ratio of total debt to annualized OIBDA as of June 30, 2005, stood at 1.25x vs. 1.11x at the end of the first half of the previous year. Over the first half of 2005, Sistema invested US$981.5 million in capital expenditures (excluding acquisitions), which is a 51% increase compared with US$650.3 in the first six months of 2004. Telecommunications Revenues from the Telecommunications segment grew by 27% year- on-year to US$2.68 billion from US$2.11 billion. This growth does not include the revenues of MTU-Intel and Golden Line, which in the first half of 2005 were accounted for in the Media segment. Following the management decision to include these two businesses in Comstar United TeleSystems, in 2006 their results will again be included in the results of the Telecommunications segment. MTS revenues grew by 31% or US$546.1 million to US$2,293.6 million, reflecting continued subscriber growth in Russia and the CIS. MGTS demonstrated a 36% growth in the top line to US$308.3 million from US$226.3 million in the first six months of 2004. The company's operating income increased by 125% to US$104.4 million from US$46.5 million for the same period of 2004. MGTS' growth was driven by further increases in regulated tariffs, continued growth in unregulated value-added services, and the effects of the monetization of social benefits allowing the company to significantly improve its collection ratios. Combined revenues of Comstar, MTU-Inform and Telmos, united under the umbrella of Comstar UTS, grew by 9% to US$114.2 million from US$105.0 million in the first half 2004, with operating income increasing by 13% to US$29.3 million from US$26.0 million. The revenues of MTU-Intel and Golden Line (accounted for in the Media segment) demonstrated growth of 36% to US$51.3 million from US$37.7 million in the first half of 2004, while their operating income expanded by 59% to reach US$5.2 million. Technology Technology became Sistema's fastest-growing segment in the first half of 2005, with its revenues more than quintupling in the period to US$426.5 million from US$83.0 million in the first half of 2004, and operating income growing by more than 8 times to US$109.9 million from US$13.2 million. The acquisition of Kvazar-Micro contributed US$178.4 million to the increase in revenues, while organic growth came mainly from the telecommunications equipment and software business (320% growth to US$166.1 million from US$39.5 million) and the consumer electronics business (271% growth to US$59.0 million from US$15.9 million). The revenues of the semiconductor design and manufacturing business remained virtually unchanged at US$27.3 million; however, the business line became the second-largest contributor to the segment's operating income with operating income of US$12.0 million. Insurance Revenues for the Insurance segment increased by 59.7% year-on- year to US$197.9 million from US$123.9 million on the back of a 57.2% increase in gross premiums written to US$317.9 million from US$202.2 million in the first six months of 2004 and enhanced returns on the investment portfolio managed by Allianz- ROSNO Asset Management. Operating income for the segment more than doubled to US$13.6 million from US$4.9 million as a result of continued improvements in operating efficiencies. Banking The Banking segment revenues grew by 68% year-on-year to US$45.8 million from US$27.3 million in the first six months of 2004. The growth in revenues was primarily attributable to interest on loans to customers, which increased by 58%. However, operational costs increased at a higher rate due to the increase in loan servicing cost, which reduced operational margin to 6.9% from 25.6% in the first six months of 2004. Real Estate Revenues in the real estate business are recognized upon completion of development projects. Revenues for the six-month period ended June 30, 2005 decreased by US$13.0 million, to US$10.9 million, which represents a 54% decline compared to the same period in 2004. The reason for the decrease is the continued construction of real estate projects during the six months ended June 30, 2005, which resulted in no sales of completed premises in that period. Consequently, operating income for the period decreased to US$3.2 million, from US$7.9 million in the same period of 2004. Retail Revenues for the Detsky Mir business increased by 49.7%, to US$45.2 million, for the six-month period ended June 30, 2005 from US$30.2 million for the six-month period ended June 30, 2004. The increase was mostly generated by revenues of our new retail outlets. The other reason is consolidation of companies previously not included in our consolidated financial statements, such as NeuKoln with revenues of US$3.4 million and DM-Orel previously accounted for by the equity method with revenues of US$1.3 million. Operating income during the reporting period increased to US$3.8 million, compared with US$2.2 million in the six-month period ended June 30, 2004. Media Media revenues excluding MTU-Intel and Golden Line increased by 108% to US$42.2 million during the six-month period ended June 30, 2005 compared to US$20.3 million in the six-month period ended June 30, 2004, primarily due to an increase in print distribution revenues. In addition, our Media subholding commenced operations in Ukraine through its direct subsidiaries, Maxima Kiev and Lingway, which contributed US$1.7 million and US$13.5 million in revenues. Operating loss (excluding operating income generated by MTU-Intel and Golden Line) expanded during the period to US$5.0 million from US$2.0 million in the six-month period ended June 30, 2004. Acquisitions and Divestitures In wireless telecommunications, MTS' acquisitions included a 74% stake in Mobile TeleSystems Komi (cash consideration equivalent US$1.2 million), a 51% stake in Barash Communication Technologies, Inc. (BCTI) with operations in the Republic of Turkmenistan for a consideration of US$28.2 million, and an additional 24% stake in Gorizont-RT in the Far East of Russia for a cash consideration of US$13.5 million, increasing its voting power in the company to 100%. The company also acquired a 75% stake in Sweet-Com LLC, a holder of 3.5GHz radio frequency allocation for the Moscow region, for a cash consideration of US$2 million. Sistema acquired an additional 20% stake in Telmos for a cash consideration of US$8.5 million, bringing its voting power to 100%, and an additional 5% stake in Mezhregionalny Transit Telecom (MTT), a nationwide transit traffic operator, for a cash consideration of US$6.4 million, bringing the Group's voting interest to 50% In the Banking segment, Sistema acquired a further 13% stake in MBRD for US$10 million in cash and promissory notes, increasing its voting power to 99%. We contributed a further US$20.9 million to the share capital of MBRD in June 2005, by purchasing 130,000 newly issued shares of MBRD's common stock in a closed subscription. Technology acquisitions included a further 53% stake in Kvant, a personal computers and components manufacturer located in Zelenograd for a total consideration of US$6.0 million, increasing Sistema's voting power to 88%. Our Radio and Space Technology business, Concern RTI Systems, acquired a 54% stake in MTU Saturn, which operates in the business of design and installation of electric systems for a cash consideration of US$1.5 million. We also purchased a 51% stake in Yaroslavl Radio Plant, producer of commercial payload for satellites and professional communications facilities, for a cash consideration of US$6.1 million. In the first half of 2005 Sistema's ownership interest in Intourist decreased to 72% from its previous level of 91% as a result of an additional share issue, whereby the Moscow City Government subscribed to additional shares in exchange for a 40% stake in the Cosmos Hotel, a 1,000-room hotel complex in Moscow, and Sistema paid the equivalent of US$47.7 million for the remainder of the newly issued shares. Recent Events In August 2005, in line with its expansion and development strategy, Sistema Mass Media acquired Esta group, a leading Russian cable television operator in MMDS standard which provides services to 217,000 customers, for US$8.6 million. In August and September 2005, for a total of US$3.0 million, Detsky Mir acquired a retail network operating under the brand Vyrastai-ka, S-Toys, a children's toys wholesale company, and Chudo-Ostrov Neva, a children's goods retailer based in St. Petersburg, which, along with the opening of new stores, brought the total number of store in the Detsky Mir chain to 33. In September 2005, Comstar UTS completed the purchase of 45% stake in Metrokom, a leading alternative fixed line operator in St. Petersburg for a total cash consideration of US$22.5 million, which included the refinancing of a loan previously obtained by the company. During August and September 2005, Sistema acquired minority shareholdings in six energy companies in the Republic of Bashkortostan: 25% in OAO ANK Bashneft, 28.17% in OAO Novoil, 25.52% in OAO Ufimsky NPZ, 22.43% in OAO Ufaneftekhim, 24.87% in OAO Ufaorgsintez and 18.57% in OAO Bashnefteproduct. This group of transactions in the energy sector represents a purely financial investment. In August 2005, trading of Sistema's common shares on the Moscow Stock Exchange commenced, and they have also been included in the calculation of the Exchange's technical index. On October 5, 2005, Sistema announced the terms of the proposed consolidation of its fixed-line telecommunications operators under Comstar United TeleSystems. Sistema intends that Comstar UTS acquire and hold majority stakes in all of Sistema's fixed- line businesses, including MTU-Inform, Telmos, MTU-Intel, Golden Line and MGTS. Comstar UTS will pay for these acquisitions in the form of newly issued shares. It is expected that post- merger the shareholder structure of Comstar UTS will be as follows: Sistema and its 100%-owned subsidiaries will own 79.3%, and MGTS and its 100%-owned subsidiary will own 20.7%. Until 2005, Sistema has reported its financial results under U.S. GAAP on a semiannual basis. Starting from second half of this year, we intend to move to quarterly reporting. Sistema is the largest private sector consumer services company in Russia and the CIS, with over 50 million customers. Sistema develops and manages market-leading businesses in selected service-based industries, including telecommunications, technology, insurance, banking, real estate, retail and media. Founded in 1993, the company reported revenues of US$5.7 billion for the full year 2004, and total assets of US$8.8 billion as at December 31, 2004. Sistema's shares are listed under the symbol "SSA" on the London Stock Exchange, under the symbol "AFKS" on the Russian Trading System (RTS), and under the symbol "SIST" on the Moscow Stock Exchange (MSE). Appendix - Non-GAAP Financial Measures This results statement includes financial information prepared in accordance with United States Generally Accepted Accounting Principles (US GAAP), as well as other non-GAAP financial information. The non-GAAP financial information should be considered as an addition to, but not as a substitute for, information prepared in accordance with US GAAP. OIBDA is operating income before depreciation and amortization and the OIBDA margin is defined as OIBDA as a percentage of net revenues. These measures are included in this results statement in order to provide additional information regarding the Group's ability to meet future debt service payments, capital expenditure and working capital requirements, and as a metric to evaluate profitability. OIBDA is not a measure of financial performance under US GAAP, and is not an alternative to net income as a measure of operating performance, or to cash flows from operating activities as a measure of liquidity. While depreciation and amortization are considered operating costs under GAAP, these items primarily represent the non-cash current period allocation of costs arising from the acquisition or development of long term assets in prior periods. OIBDA is commonly used as a criterion for evaluation of operating performance by credit and equity investors and analysts. The calculation of OIBDA may be different from the calculation used by other companies and comparability may therefore be limited. OIBDA can be reconciled to the Group's consolidated statements: US$ thousands H1 2005 H1 2004 FY 2004 Operating Income 941,269 772,058 1,664,706 Add depreciation and amortization 480,590 347,848 799,885 OIBDA 1,421,859 1,119,906 2,464,591 Financial statements are available free of charge at http://bankrupt.com/misc/SistemaJSFC(H12005).mht CONTACT: SISTEMA JSFC INVESTOR RELATIONS Shared Value Limited Alexei Kurach Matthew Hooper Phone: +7 095 229 2741 +44 (0) 20 7321 5023 E-mail: kurach@sistema.ru sistema@sharedvalue.net Web site: http://www.sistema.com SOKOLSKIY: Bankruptcy Hearing Set December ------------------------------------------ The Arbitration Court of Vologda region has commenced bankruptcy supervision procedure on pulp and paper plant Sokolskiy. The case is docketed as A13-7223/2005-25. Mr. A. Enkov has been appointed temporary insolvency manager. Creditors have until October 17, 2005 to submit their proofs of claim to 162130, Russia, Vologda region, Sokol, Sovetskiy Pr., 8. A hearing will take place on December 15, 2005, 10:00 a.m. at the Arbitration Court of Vologda region at 160000, Russia, Vologda, Gertsena Str. 1a, Hall #4. CONTACT: SOKOLSKIY Russia, Vologda region, Sokol, Sovetskiy Pr. 8 Mr. A. Enkov Insolvency Manager 162130, Russia, Vologda region, Sokol, Sovetskiy Pr. 8 SOUTH-EAST-STEEL-CONSTRUCTIONS: Under Bankruptcy Supervision ------------------------------------------------------------ The Arbitration Court of Voronezh region has commenced bankruptcy supervision procedure on open joint stock company South-East-Steel-Constructions (TIN 3663002865). The case is docketed as A14-6429-2005. Mr. V. Golov has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 101000, Russia, Moscow, Post User Box 251. A hearing will take place on November 30, 2005. CONTACT: SOUTH-EAST-STEEL-CONSTRUCTIONS 394028, Russia, Voronezh region, Dmitrova Str. 112 Mr. V. Golov Temporary Insolvency Manager 101000, Russia, Moscow, Post User Box 251 Phone: 208-45-93 TURISNKOYE AIR-ENTERPRISE: Court Brings in Insolvency Manager ------------------------------------------------------------- The Arbitration Court of Krasnoyarsk region has commenced bankruptcy supervision procedure on federal state unitary enterprise Turisnkoye Air-Enterprise. The case is docketed as A33-16152/2005. Mr. N. Zubenko has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 662500, Russia, Krasnoyarsk region, Sosnovoborsk, Post User Box 18. A hearing will take place on December 28, 2005, 3:00 p.m. CONTACT: TURISNKOYE AIR-ENTERPRISE 648000, Russia, Krasnoyarsk region, Evenkiyskiy autonomous region, Tura, Gagarina Str. 2 Mr. N. Zubenko Temporary Insolvency Manager 662500, Russia, Krasnoyarsk region, Sosnovoborsk, Post User Box 18 URENSKIY: Bankruptcy Supervision Procedure Begins ------------------------------------------------- The Arbitration Court of Nizhniy Novgorod region has commenced bankruptcy supervision procedure on open joint stock company Urenskiy (TIN 5235001509). The case is docketed as A43- 7881/2005 18-232. Mr. D. Orekhov has been appointed temporary insolvency manager. CONTACT: URENSKIY 606800, Russia, Nizhniy Novgorod region, Uren, Lynozavod Str. 1a Mr. D. Orekhov Temporary Insolvency Manager 101000, Russia, Moscow, Post User Box 251 Phone: 208-45-93 ===================== S W I T Z E R L A N D ===================== GENERAL MOTORS: Moody's Might Downgrade Unsecured Rating -------------------------------------------------------- Moody's Investors Service placed the Ba2 senior unsecured rating of General Motors Corporation (GM) and the Ba1 senior unsecured rating of General Motors Acceptance Corporation (GMAC) under review for a possible downgrade. Moody's said that the review is prompted by the concern that the potential pressure on GM posed by the Chapter 11 bankruptcy filing by Delphi Corporation, in combination with the continued erosion in US automotive market conditions, may severely constrain the company's ability to re-establish adequate levels of profitability and cash flow generation, particularly in its North American Automotive operations. The current estimated range of costs for GM stemming from the Delphi filing, combined with continued erosion of automotive demand, particularly for SUV's which are a critical part of GM's new product initiatives, have the potential to further impair the company's financial metrics. This could make it less likely that GM will be able to successfully restructure its North American operations in a manner that preserves a business position and credit metrics supportive of a Ba2 rating. Moody's review of GM will focus on the company's ability to successfully address a number of increasingly burdensome challenges that include: managing potential risks that could result from the Delphi bankruptcy process, achieving meaningful reductions in its cost structure, including potential relief from the UAW on health care costs, stemming the decline in its U.S. market share, reducing employment levels and production capacity to better match its reduced share position in North America, contending with an increasing shift in consumer preference from SUVs to smaller and more fuel efficient vehicles, and reducing its dependence on price incentives to prop up its sagging market share position in the US. GM has indicated that it currently incurs a cost penalty of about US$2 billion per year on North American supplies purchased from Delphi; and that a successful restructuring of Delphi could significantly reduce this cost penalty over the long-term. Moody's review will consider the magnitude of such potential savings and the timeframe in which they can be achieved. However, Moody's noted that GM also faces considerable near term financial risks in three areas as a result of the Delphi filing. First, Delphi could elect to reject individual GM supply contracts that are uneconomic; this could raise GM's near-term costs until the affected supplies are resourced. Second, GM's guarantee of the pension and healthcare benefits of former GM employees who transferred to Delphi could result in an increase in GM's annual legacy costs; these expenditures would grow over time. Third, under the most extreme circumstances, these legacy benefit costs could give rise to additional pension and OPEB liabilities of as much as $11 billion for GM. In order for GM to preserve the Ba2 rating, the company's business model and North American recovery plan will have to be capable of: (a) Maintaining U.S. market share of approximately 25%; (b) Delivering strong market acceptance and sustaining healthy price realization for new products including the T900 light truck and SUV series; (c) Earning automotive pretax profit in excess of US$500 million for 2006; (d) Generating at least breakeven automotive operating cash flow before pension, VEBA, GMAC dividends; (e) Maintaining gross liquidity (cash and short-term VEBA balances) at or above US$20 billion; and (f) Preserving the sizable and stable dividend stream from GMAC. Sustaining the Ba2 rating will also require that GM's credit metrics, including GMAC's dividend and using Moody's standard adjustments, approximate the following: EBITA margin exceeding 2%; interest coverage of 1.5 times, and free cash flow to debt in the mid-single digits range. Moody's Ba1 rating of GMAC represents a one-notch distinction from GM's rating. GMAC's condition and performance is closely tied to the fortunes of GM, due to the direct and indirect exposures and business connections between the two companies. The impact of the Delphi filing on GM's rating therefore potentially has a flow-through impact on Moody's view of GMAC's credit profile. GMAC's one-notch uplift from the GM rating reflects Moody's view that GMAC's unsecured creditors would likely experience a lower loss given default compared with the unsecured creditors of GM, due to the greater liquidity of GMAC's high quality assets. Moody's believes that any potential for increasing the notching would involve widening the probability of default between GM and GMAC through actions that change governance and ownership structures. During the review Moody's will examine the impact of any changes in GM's condition on GMAC's intrinsic credit profile, as well as the nature and extent of the various interconnections on the magnitude of the notching. General Motors Corporation, headquartered in Detroit, Michigan, is the world's largest producer of cars and light trucks. GMAC, a wholly owned subsidiary of GM, provides retail and wholesale financing in support of GM's automotive operations and is one of the world's largest non-bank financial institutions. CONTACT: MOODY'S INVESTORS SERVICE (NEW YORK) Michael J. Mulvaney Managing Director, Corporate Finance Group Phone: (Journalists) 212-553-0376 (Subscribers) 212-553-1653 J. Bruce Clark, Senior Vice President Corporate Finance Group Phone: (Journalists) 212-553-0376 (Subscribers) 212-553-1653 SWISS INTERNATIONAL: Puts up Operating Subsidiary ------------------------------------------------- The SWISS International Board of Directors has decided to transfer European regional services to a fully owned company within the SWISS Group before the end of the year. The entire current regional segment will take off as "Swiss European Air Lines" once the Swiss Federal Office for Civil Aviation has delivered an operating permit. The move will make a further contribution to enhancing SWISS' competitiveness, and should provide a basis for growth in the European services sector. As a fully owned subsidiary of SWISS, Swiss European will function as an operating company, providing "wet lease" flights in the European market on behalf of its parent company. Swiss European will naturally work to the same high standards of quality, safety and training already adopted by the parent company. It will trade under the SWISS brand, and commercial responsibility will remain with SWISS. The new airline will inherit all the aircraft in the current regional fleet (Avro RJ 85/100 and Embraer 145). Likewise, all regional pilots will transfer to Swiss European. The cabin crews will initially be provided by Swiss International. In the medium-term, Swiss European will recruit its own cabin staff and build up its own workforce. Own Management Team The new subsidiary will be managed by an own Executive Board and Board of Directors: Peter Koch (Managing Director), Rolf Brand (Head of Flight Operations), Heinz Marti (Head of Training), Diego Ochsner (Head of Ground Services) and Felix Koster (Head of Technical Maintenance). Manfred Brennwald (Chairman), Gabriele Hofmann-Schmid and Reto von Atzigen will sit on the Board of Directors. Swiss European will start out with a fleet of seven Embraer 145s and eighteen Avro RJ85/100s, but will subsequently operate with a uniform fleet of twenty-four Avro RJ85/100s once the 2006 summer timetable comes into effect. Swiss European will make an important contribution to increasing its competitive strength and to securing jobs in the long-term. Ensuring transparency in terms of both structures and costs will also lend support to forthcoming investment in fleet modernization and provide a solid basis for future growth. CONTACT: SWISSS INTERNATIONAL Corporate Communications P. O. Box, CH-4002 Basel Phone: +41 (0) 848 773 773 Fax: +41 61 582 35 54 E-mail: communications@swiss.com ============= U K R A I N E ============= CORPORATION-SPHERE: Last Day for Filing Claims Tomorrow ------------------------------------------------------- The Economic Court of Zaporizhya region commenced bankruptcy supervision procedure on LLC Corporation-Sphere (code EDRPOU 30408320) on August 15, 2005. The case is docketed as 19/205(05). Mr. Sergij Persyuk (License Number AB 116244) has been appointed temporary insolvency manager. Creditors have until October 13, 2005 to submit their proofs of claim to: (a) CORPORATION-SPHERE 69032, Ukraine, Zaporizhya region, Dokivska Str. 3 (b) Mr. Sergij Persyuk Temporary Insolvency Manager 69035, Ukraine, Zaporizhya region, Mayakovskij Avenue 11 Phone: (0612) 12-94-84 (c) ECONOMIC COURT OF ZAPORIZHYA REGION 69001, Ukraine, Zaporizhya region, Shaumyana Str. 4 DZHERELO: Declared Insolvent ---------------------------- The Economic Court of Vinnitsya region commenced bankruptcy proceedings against Dzherelo (code EDRPOU 03732904) after finding the limited liability company insolvent. The case is docketed as 10/41-05. Zhmerinki State Tax Inspection has been appointed liquidator/insolvency manager. CONTACT: DZHERELO Ukraine, Vinnitsya region, Zhmerinskij district, Potoki ECONOMIC COURT OF VINNITSYA REGION 21036, Ukraine, Vinnitsya region, Hmelnitske Shose 7 HARKIV' EXPLORATORY: Goes into Liquidation ------------------------------------------ The Economic Court of Harkiv region commenced bankruptcy proceedings against Harkiv' Exploratory Plant (code EDRPOU 05789268) on August 22, 2005 after finding the open joint stock company insolvent. The case is docketed as B 39/86-05. Ms. Tetyana Chagovets (License Number AB 116164) has been appointed liquidator/insolvency manager. CONTACT: HARKIV' EXPLORATORY PLANT Ukraine, Harkiv region, Harkiv district, Liptsi, Pushkinska Str. 20 Ms. Tetyana Chagovets Liquidator/Insolvency Manager 61045, Ukraine, Harkiv region, Shakespeare Str. 10/5-A Phone: 773-01-30 ECONOMIC COURT OF HARKIV REGION 61022, Ukraine, Harkiv region, Svobodi Square 5, Derzhprom 8th Entrance INNOVATIONAL TECHNOLOGIES: Succumbs to Insolvency ------------------------------------------------- The Economic Court of Zaporizhya region commenced bankruptcy proceedings against CJSC Innovational Technologies Institute (code EDRPOU 20500265) on August 29, 2005 after finding the limited liability company insolvent. The case is docketed as 25/154. Mr. Oleksij Zabrodin (License Number AA 630146) has been appointed liquidator/insolvency manager. The company holds account number 26004301155422 at Prominvestbank, Zaporizhya central branch, MFO 313355. CONTACT: INNOVATIONAL TECHNOLOGIES INSTITUTE 69000, Ukraine, Zaporizhya region, Minska Str. 10 Mr. Oleksij Zabrodin Liquidator/Insolvency Manager 69121, Ukraine, Zaporizhya region, a/b 6335 Phone: (067) 780-39-60 ECONOMIC COURT OF ZAPORIZHYA REGION 69001, Ukraine, Zaporizhya region, Shaumyana Str. 4 KRASNODONSKIJ AGROBUD: Sets Proofs of Claim Deadline ---------------------------------------------------- The Economic Court of Lugansk region commenced bankruptcy supervision procedure on Collective Enterprise Krasnodonskij Agrobud (code EDRPOU 20175405) on July 27, 2005. The case is docketed as 19/118 b. Mr. Vadim Ostrovskij (License Number AB 116234) has been appointed temporary insolvency manager. The company holds account number 2600606610915 at Pravex-Bank, MFO 304579. Creditors have until October 13, 2005 to submit their proofs of claim to: (a) KRASNODONSKIJ AGROBUD 94420, Ukraine, Lugansk region, Suhodilsk, Shosejna Str. 5 (b) Mr. Vadim Ostrovskij Temporary Insolvency Manager 91000, Ukraine, Lugansk region, Geroiv VVV Square 2/32 (c) ECONOMIC COURT OF LUGANSK REGION 91000, Ukraine, Lugansk region, Geroiv VVV Square 3a KUPYANSKIJ RAJAGROHIM: Insolvency Manager Takes over Helm --------------------------------------------------------- The Economic Court of Harkiv region commenced bankruptcy proceedings against Kupyanskij Rajagrohim (code EDRPOU 00717363) after finding the open joint stock company insolvent. The case is docketed as B 50/120-05. Mr. Vladislav Kardash (License Number AB 216987) has been appointed liquidator/insolvency manager. Creditors have until October 13, 2005 to submit their proofs of claim to: (a) KUPYANSKIJ RAJAGROHIM: 63732, Ukraine, Harkiv region, Kupyansk district, Novoosinove (b) ECONOMIC COURT OF HARKIV REGION 61022, Ukraine, Harkiv region, Svobodi Square 5, Derzhprom 8th Entrance RIZHANIVSKE: Bankruptcy Supervision Starts ------------------------------------------ The Economic Court of Cherkassy region commenced bankruptcy supervision procedure on LLC Rizhanivske (code EDRPOU 31546526). The case is docketed as 01/3592. Mr. Oleg Bilera has been appointed temporary insolvency manager. The company holds account number 26002381201 at JSB Energobank, Cherkassy branch, MFO 354488. CONTACT: RIZHANIVSKE 18000, Ukraine, Cherkassy region, Blagovisna Str. 130 Mr. Oleg Bilera Temporary Insolvency Manager Ukraine, Cherkassy region, Geroiv Stalingrada Str. 46/164 ECONOMIC COURT OF CHERKASSY REGION 18005, Ukraine, Cherkassy region, Shevchenko Avenue 307 SUMISILMASH: Creditors' Claims Due this Week -------------------------------------------- The Economic Court of Sumi region commenced bankruptcy supervision procedure on OJSC Sumisilmash (code EDRPOU 00901588) on July 27, 2005. The case is docketed as 12/83-05. Mr. Oleksandr Sugonyako (License Number AB 216826) has been appointed temporary insolvency manager. Creditors have until October 13, 2005 to submit their proofs of claim to: (a) OJSC SUMISILMASH 40024, Ukraine, Sumi region, Harkivska Str. 6 (b) Mr. Oleksandr Sugonyako Temporary Insolvency Manager 40000, Ukraine, Sumi region, Kozatskij val Str. 2-a Phone/Fax: 22-10-80 (c) ECONOMIC COURT OF SUMI REGION 40030, Ukraine, Sumi region, Shevchenko Avenue 18/1 TRIUMF: Harkiv Court Appoints Insolvency Manager ------------------------------------------------ The Economic Court of Harkiv region commenced bankruptcy proceedings against Triumf (code EDRPOU 14073942) on September 5, 2005 after finding the limited liability company insolvent. The case is docketed as B-31/60-05. Mr. Sergij Puzenko (License Number AA 216711) has been appointed liquidator/insolvency manager. Creditors have until October 13, 2005 to submit their proofs of claim to: (a) TRIUMF 62072, Ukraine, Harkiv region, Lenin Avenue 41/43 (b) Mr. Sergij Puzenko Liquidator/Insolvency Manager 61045, Ukraine, Harkiv region, Klochkivska Str. 261-A/4 (c) ECONOMIC COURT OF HARKIV REGION 61022, Ukraine, Harkiv region, Svobodi Square 5, Derzhprom 8th Entrance UKRSOTSBANK: Individual Loans Portfolio Continues to Grow --------------------------------------------------------- Since the beginning of the year, Ukrsotsbank's individual loans portfolio has grown by more than 2.4 times, the Bank's PR service reports. As of October 1, 2005, the volume of the portfolio amounted to UAH2,41 billion. Ukrsotsbank was formed in September 1990 and is one of the biggest banks in Ukraine. The branch network of the Bank comprises 513 offices -- 463 off-balance offices, 23 balance offices and 27 regional branches. The Bank's net assets as of October 1, 2005 were UAH9.48 billion; loan portfolio - UAH6.5 billion; businesses' deposits - UAH4.17 billion, individuals' deposits - UAH2.92 billion. * * * As reported by TCR-Europe in September, Standard & Poor's Rating Services revised its outlook on Joint Stock Commercial Bank for Social Development Ukrsotsbank to developing from stable. At the same time, the 'B-' long-term and 'C' short-term ratings on the bank were affirmed. "The outlook revision reflects the uncertainty related to the bank's ability to attract new capital in the next few months to support its fast-growing lending activities," said Standard & Poor's credit analyst Irina Penkina. "In addition, USB's potential sale to a new strategic owner could have a significant impact on the bank's client base, business strategy, and capital support." USB is majority owned by the Interpipe group, a large Ukrainian industrial group, with Mr. Pinchuk as a beneficial owner. The group is involved in a number of legal disputes with the Ukrainian government regarding the privatization of its large assets. Bought by Interpipe from private owners in 2004, USB is exposed to a potential sale. USB's sizable concentration in both assets and liabilities, as well as vulnerability to the risky political and operating environment in the Ukraine (foreign currency BB-/Stable/B; local currency BB/Stable/B) remain constraining rating factors. These risks are mitigated by USB's good commercial franchise and funding profile, which position the bank well to benefit from the growing Ukrainian economy. USB's core equity-to-assets ratio is reducing fast, having fallen to about 5.3% at end of July 2005 from 6.0% at year-end 2004 (in accordance with local accounting standards), due to modest internal capital generation compared with the rapid asset growth. A Ukrainian hryvnia (UAH)300 million (US$59.4 million at UAH5.05 to US$1 as at Sept. 1, 2005) new share issue, originally planned for the third quarter of 2005, is now expected to take place in late 2005 or early 2006. This would represent a sizable 60% increase of the bank's equity base, thereby alleviating a severe strain on USB's asset expansion. On the other hand, if the new capital injection is not received, this would put additional pressure on the bank's capitalization. "USB's ratings will be dependent on the bank's ability to preserve its core capital adequacy ratios against further deterioration," said Ms. Penkina. A capital increase in the near term, and the entrance of a new partner that would be able to support USB would have a positive effect on the ratings on the bank. Conversely, negative rating pressure would increase if USB fails to raise new capital within a reasonable time period. CONTACT: UKRSOTSBANK Call center: (044) 205-45-55, 8-800-5000-200 Web site: http://www.usb.com.ua/en/ UKRSOTSBANK: Total Loan Portfolio Grows 55% After 9 Months ---------------------------------------------------------- Ukrsotsbank summarized the preliminary results of its performance for 9 months of 2005, the Bank's PR service reports with reference to the Economy and Finance Department. As of October 1, 2005, Ukrsotsbank's performance figures are: -- Total loan portfolio makes UAH6.47 billion. Rate of growth since the beginning of the year is 55.1%, -- Net assets are UAH9.48 billion. Rate of growth since the year-start constitutes 34.1% In January-February, Ukrsotsbank enjoyed a dynamic pace of growth in attracting funds from businesses and individuals onto deposit and current accounts. Thus, businesses' funds allocated with the Bank since the beginning of the year have grown by almost 15% and by October 1 2005 amounted to UAH4.2 billion. Funds from individuals have increased by almost 44% and as of October 1, 2005 exceeded UAH2.9 billion. Ukrsotsbank was formed in September 1990 and is one of the largest banks in Ukraine. Ukrsotsbank's branch network comprises 513 offices -- off-balance offices, 23 balance offices and 27 regional branches. * * * As reported by TCR-Europe in September, Standard & Poor's Rating Services revised its outlook on Joint Stock Commercial Bank for Social Development Ukrsotsbank to developing from stable. At the same time, the 'B-' long-term and 'C' short-term ratings on the bank were affirmed. "The outlook revision reflects the uncertainty related to the bank's ability to attract new capital in the next few months to support its fast-growing lending activities," said Standard & Poor's credit analyst Irina Penkina. "In addition, USB's potential sale to a new strategic owner could have a significant impact on the bank's client base, business strategy, and capital support." USB is majority owned by the Interpipe group, a large Ukrainian industrial group, with Mr. Pinchuk as a beneficial owner. The group is involved in a number of legal disputes with the Ukrainian government regarding the privatization of its large assets. Bought by Interpipe from private owners in 2004, USB is exposed to a potential sale. USB's sizable concentration in both assets and liabilities, as well as vulnerability to the risky political and operating environment in the Ukraine (foreign currency BB-/Stable/B; local currency BB/Stable/B) remain constraining rating factors. These risks are mitigated by USB's good commercial franchise and funding profile, which position the bank well to benefit from the growing Ukrainian economy. USB's core equity-to-assets ratio is reducing fast, having fallen to about 5.3% at end of July 2005 from 6.0% at year-end 2004 (in accordance with local accounting standards), due to modest internal capital generation compared with the rapid asset growth. A Ukrainian hryvnia (UAH)300 million (US$59.4 million at UAH5.05 to US$1 as at Sept. 1, 2005) new share issue, originally planned for the third quarter of 2005, is now expected to take place in late 2005 or early 2006. This would represent a sizable 60% increase of the bank's equity base, thereby alleviating a severe strain on USB's asset expansion. On the other hand, if the new capital injection is not received, this would put additional pressure on the bank's capitalization. "USB's ratings will be dependent on the bank's ability to preserve its core capital adequacy ratios against further deterioration," said Ms. Penkina. A capital increase in the near term, and the entrance of a new partner that would be able to support USB would have a positive effect on the ratings on the bank. Conversely, negative rating pressure would increase if USB fails to raise new capital within a reasonable time period. CONTACT: UKRSOTSBANK Call center: (044) 205-45-55, 8-800-5000-200 Web site: http://www.usb.com.ua/en/ ZEVS: Undergoes Bankruptcy Supervision Procedure ------------------------------------------------ The Economic Court of Harkiv region commenced bankruptcy supervision procedure on Joint Ukrainian-Bulgarian LLC Zevs (code EDRPOU 226770600) on August 29, 2005. The case is docketed as B-39/68-05. Mr. O. Tishenko (License Number AB 216715) has been appointed temporary insolvency manager. The company holds account number 26003201954001 at CB Privatbank, Harkiv regional branch, MFO 351533. CONTACT: ZEVS Ukraine, Harkiv region, Harkiv district, Komunar Mr. O. Tishenko Temporary Insolvency Manager 61002, Ukraine, Harkiv region, Petrovskij Str. 6/8-15 Phone: (057) 700-55-97 ECONOMIC COURT OF HARKIV REGION 61022, Ukraine, Harkiv region, Svobodi Square 5, Derzhprom 8th Entrance =========================== U N I T E D K I N G D O M =========================== ALLIED MEDICAL: Members Meeting Set End of October -------------------------------------------------- R.A. Segal, Liquidator of: Allied Medical Assurance Services Ltd. Bowring Risk Management Ltd. Marsh Placement Services Ltd. Marsh Ukraine Ltd. Peter Smart Associates Ltd. Richard Sparrow & Co (International Non Marine) Ltd. The marsh centre ltd. Wigham Poland Aviation Ltd. Seabury Smith Ltd. informs that a Meeting of the Members of these Companies will be held at Chiltern House, 24 to 30 King Street, Watford WD18 0BP, on Monday 31 October 2005, at 11:00 a.m. Members wishing to vote at the Meeting must lodge their proofs of debt and (unless they are attending in person), proxies at the offices of Begbies Traynor (South) LLP, 24 to 30 King Street, Watford WD18 0BP, no later than 12:00 noon on the business day before the Meeting. CONTACT: BEGBIES TRAYNOR Chiltern House, 24-30 King Street, Watford WD18 0BP Phone: 01923 812900 Fax: 01923 812999 Web site: http://www.begbies.com ANDERSEN LEIGH: Recruitment Firm Hires Administrator ---------------------------------------------------- A resolution to wind up Andersen Leigh Associates Plc was passed at an EGM on Sept. 27 at 70 Conduit Street, London W1S 7GF. Lloyd Biscoe of Begbies Traynor, The Old Exchange, 234 Southchurch Road, Southend-on-Sea, Essex SS1 2EG was appointed liquidator. Andersen Leigh Associates plc is a full service human resource management group that specializes in the placement of temporary and permanent Accountancy, Human Resources, Sales & Marketing and Secretarial Support staff. CONTACT: ANDERSEN LEIGH ASSOCIATES PLC 32-36 Great Portland Street London W1W 8QX Web site: http://www.andersenleigh.com/ 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 ANDREW LEE: Hires Begbies to Liquidate Assets --------------------------------------------- A resolution to wind up Andrew Lee Limited was passed at an EGM on Sept. 23 at the offices of Begbies Traynor, The Old Exchange, 234 Southchurch Road, Southend on Sea, Essex SS1 2EG. Lloyd Biscoe of Begbies Traynor, The Old Exchange, 234 Southchurch Road, Southend-on-Sea, Essex SS1 2EG was appointed liquidator. CONTACT: ANDREW LEE LTD. Margarets House, High Street Colchester, Essex CO5 9AE Phone: 01376573572 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 ANGLIA BUSINESS: Files for Administration ----------------------------------------- Jeffrey Mark Brenner (IP No 9301) of B & C Associates was appointed administrator of Anglia Business Associates Limited (Company No 02230851) on Sept. 27. The company's registered office is at Trafalgar House, Grenville Place, Mill Hill, London NW7 3SA. ABA has over eight years experience in the bank auditing business. Visit http://www.angliabusinessassociates.co.uk/for more information. CONTACT: ANGLIA BUSINESS ASSOCIATES LIMITED Phone: 0870 8998820 Fax: 0870 8998830 B & C ASSOCIATES Trafalgar House Grenville Place Mill Hill London NW7 3SA Phone: 0208 906 7730 Fax: 0208 906 7731 ASC NEX: Hires KPMG Liquidator ------------------------------ A. J. McDonald, the director of ASC NEX Limited, informs that special and ordinary resolutions to wind up the company were passed at a general meeting. David John Crawshaw and Richard John Hill of KPMG LLP, Corporate Recovery, Arlington Business Park, Theale, Reading RG7 4SD were appointed liquidators. CONTACT: KPMG Corporate Recovery, Arlington Business Park, Theale, Reading RG7 4SD Phone: (0118) 9642000 Fax: (0118) 9642222 Web site: http://www.kpmg.co.uk BOOTS GROUP: New CFO Holds 50,791 Ordinary Shares ------------------------------------------------- This notice follows the announcement on 3 October 2005 of the appointment of Jim Smart as chief financial officer of Boots Group plc. There is no information of the kind described in LR 9.6.13 R (1) to (6) of the Listing Rules relating to Jim Smart required to be disclosed. Jim Smart has also notified the company that he is interested in a total of 50,791 ordinary shares as at 3 October 2005. This total is made up of 49,888 share options, 78 shares given under the Companies All-Employee Share Ownership Plan and 825 shares registered in his own name. About the Company Boots is a health and beauty company with operations in retail, manufacturing and distribution. Boots sells its products in 130 countries and, excluding Boots Healthcare International, employs approximately 65,000 people globally. Boots operates over 1,400 health and beauty stores in the U.K. with an aggregate selling area in excess of 647,000 square meters. The group sells a wide range of products under the Boots brand and also owns a number of internationally recognized brands such as No 7, Soltan and Botanics. Boots' international division, BRI, operates more than 400 implants in nine countries as well as over 80 owned stores in Asia. It has entered into an agreement to sell BHI to Reckitt Benckiser plc, for an aggregate consideration on a debt and cash free basis of GBP1.926 billion in cash, subject to a completion working capital adjustment. For the financial year ended 31 March 2005, Boots reported turnover of GBP5,469.1 million and generated group operating profit before exceptional items of GBP501.7 million, and profit before taxation of GBP427.6 million. Boots' net assets stood at GBP1,610.5 million as of 31 March 2005. In September, Boots admitted that trading conditions have been difficult throughout the first half with consumer spending softening further over the last quarter. It plans to focus on its trading margin, costs and working capital in the second half. The difficult market conditions have led to like-for-like sales below the rate planned for the full year. Reduced consumer spending on replacement eyewear and price deflation following the deregulation of contact lens sales, coupled with the disruption to the Boots Opticians business from the integration into Boots The Chemist adversely impacted the results, and these trends are expected to continue. Personnel changes in store are expected to complete in the next quarter and a robust plan is in place to drive sales with a new and up weighted advertising campaign and the introduction of new designer ranges. CONTACT: BOOTS GROUP PLC 1 Thane Road Nottingham NG2 3AA Phone: 0115 950 6111 Customer Service: 0845 070 80 90 Web site: http://www.boots-plc.com B & S SUPPLIES: Calls in Liquidator ----------------------------------- R. Storey, the chairman of B & S Supplies (Wymondham) Limited, informs that special resolution to wind up the company was passed at an EGM held on Sept. 28 at King Street House, 15 Upper King Street, Norwich NR3 1RB. Matthew Robert Howard and Robert Geoffrey Rose of Larking Gowen, King Street House, 15 Upper King Street, Norwich NR3 1RB were appointed liquidators. CONTACT: B & S SUPPLIES (WYMONDHAM) LTD Church La, Wicklewood Wymondham, Norfolk NR18 9QH Phone: 01953 604112 LARKING GOWEN King Street House 15 Upper King Street Norwich, Norfolk NR3 1RB Phone: 01603 624181 Fax: 01603 667800 E-mail: matt.howard@larking-gowen.co.uk CARDIFF RAILWAY: Hires KPMG Liquidator -------------------------------------- R. O'Toole, the director Cardiff Railway Company Limited, informs that special, ordinary and extraordinary resolutions to wind up the company were passed at a general meeting. David John Crawshaw and Richard John Hill of KPMG LLP, Corporate Recovery, Arlington Business Park, Theale, Reading RG7 4SD were appointed joint liquidators. Cardiff Railway Company operated rail services in the Cardiff Valleys. The company ceased to exist from 14 October 2001, when the new company of Wales & Borders (now Arriva Trains Wales) was created. CONTACT: KPMG Corporate Recovery, Arlington Business Park, Theale, Reading RG7 4SD Phone: (0118) 9642000 Fax: (0118) 9642222 Web site: http://www.kpmg.co.uk CASTROL CONSUMER: Liquidation Report Out Later this Month --------------------------------------------------------- J. Sisson, Joint Liquidator of: Limited BP Quest Company Limited Burmah Castrol Fuels Limited Flightneeds.Com Limited Kalec UK Limited Trouw Great Britain Limited informs that the Final Meetings of Members of the Companies will be held at the offices of PricewaterhouseCoopers LLP, 12 Plumtree Court, London EC4A 4HT, on 31 October 2005, commencing at 10:30 a.m. and thereafter at 15 minute intervals. A Member entitled to attend and vote at the Meetings may appoint a proxy, who need not be a Member, to attend and vote instead of him or her. CONTACT: PRICEWATERHOUSECOOPERS LLP Plumtree Court London EC4A 4HT Phone: [44] (20) 7583 5000 Fax: [44] (20) 7822 4652 Web site: http://www.pwc.com CIRCLE DESIGN: Names Buchanans Administrator -------------------------------------------- Alan Peter Whalley and Peter Anthony Hall (IP Nos 6588 and 3966) of Buchanans Plc were appointed joint administrators of Circle Design Limited (Company No 03745964) on Sept. 26. The company's registered office is at Latimer House, 5 Cumberland Place, Southampton SO15 2BH. Circle Design offers other business activities. CONTACT: CIRCLE DESIGN LTD. 1st Floor, 39 Poole Hill Bournemouth, Dorset BH2 5PW Phone: 01202 318681 BUCHANANS PLC Latimer House 5 Cumberland Place Southampton SO15 2BH Phone: 023 8022 1222 COMPASS GROUP: Comments on U.N. Procurement Scandal --------------------------------------------------- Following press speculation surrounding the involvement of Compass Group plc and its subsidiary Eurest Support Services (ESS) regarding contract procurement at the United Nations, the Group said that it takes any questions about business operations seriously. ESS is one of a number of suppliers to the United Nations that has been cooperating with all the relevant authorities in a wide-ranging investigation into the UN's contracting procedures. The Group is a signatory to the UN Global Compact and its business practices are governed by a strict, zero tolerance- based Code of Ethics that applies to all employees without exception. In 2004, revenues from its contracts with the United Nations were less than half of 1% of Group revenues. * * * Financial Times earlier reported that Compass has become entangled in the probe into alleged corrupt buying practices at the United Nations. A U.S. federal investigation into the contract caterer was "still ongoing," according to a spokeswoman from the U.S. embassy in London. The inquiry is another blow to the company, which has already released three profits warning in 12 months. The latest, on September 28, warned shareholders that full-year profit before tax, goodwill amortization and exceptional items could fall 10% to GBP580 million. The group also revealed that Chief Executive Mike Bailey will step down next year. It also intends to dispose of its Select Service Partner (SSP) travel-concessions business to focus on support services and contract catering operations. In April, shareholders pressured Mr. Bailey to justify the group's second profit warning in just seven months. This came as British schools reconsidered their contracts with Scolarest, a subsidiary of the company, which provides one in 10 school meals in Britain. 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 CONSERVATION RESTORATION: Names Grant Thornton Administrator ------------------------------------------------------------ Richard Hawes and Nigel Morrison (IP Nos 8954, 8938) of Grant Thornton were appointed joint administrators of general construction Conservation Restoration And Refurbishment Limited (Company No 04055348) on Sept. 29. The company's registered office is at Millbanc House, Cross Place, Maindy, Cardiff CF14 3AQ. CONTACT: GRANT THORNTON UK LLP 11-13 Penhill Road Cardiff CF11 9UP Phone: 02920 235591 Fax: 02920 383803 E-mails: richard.m.hawes@gtuk.com nigel.morrison@gtuk.com DANIEL THOMAS: Bar Operators Call in Administrators from KPMG ------------------------------------------------------------- Company Names: DANIEL THOMAS DAVIES MICHELLE MARGARET DAVIES THE EXHIBITION HOTEL GROUP LIMITED Howard Smith and Richard Dixon Fleming (IP Nos 9341, 8370) of KPMG LLP were appointed joint administrators of these bar companies on Sept. 28. The companies' registered office is at KPMG LLP, 1 The Embankment, Neville Street, Leeds LS1 4DW. CONTACT: THE EXHIBITION HOTEL GROUP LTD. Gate Helmsley, York YO41 1JS Phone: 01759-373698 KPMG LLP 1 The Embankment Neville Street Leeds West Yorkshire LS1 4DW Phone: 0113 231 3332 Fax: 0113 231 3183 E-mail: richard.fleming@kpmg.co.uk DIXON CLOTHING: Goes into Liquidation ------------------------------------- G. Pritchard, director of Dixon Clothing Co. Ltd., informs that resolutions to wind up the company were passed at an EGM held on Sept. 27 at Milner Boardman & Partners, Century House, Ashley Road, Hale, Cheshire WA15 9TG. Colin Burke of Milner Boardman & Partners, Century House, Ashley Road, Hale, Cheshire WA15 9TG was appointed liquidator. CONTACT: DIXON CLOTHING CO. LTD. Causeway Halifax HX1 1QL West Yorkshire Phone: 01422 322284 Fax: 01422 364068 MILNER BOARDMAN & PARTNERS Century House, Ashley Road, Hale, Cheshire WA15 9TG Phone: 0161 927 7788 Fax: 0161 927 7733 E-mail: info@milnerb.co.uk Web site: http://www.milnerboardman.co.uk DORMANTCO 1007: Members Final Meeting Set Later this Month ---------------------------------------------------------- Company Names: DORMANTCO 1007 LIMITED DORMANTCO 1008 LIMITED DORMANTCO 1009 LIMITED DORMANTCO 1010 LIMITED DORMANTCO 1011 LIMITED INHOCO 824 LIMITED Members of these companies will have final meetings on October 31, 2005 commencing at 10:00 a.m. and thereafter at 15-minute intervals. It will be held the offices of PricewaterhouseCoopers LLP, Benson House, 33 Wellington Street, Leeds LS1 4JP. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the properties of the companies disposed of, and of hearing any explanation that may be given by the Liquidator. Members who want to be represented at the meeting may appoint proxies. CONTACT: DORMANTCO 1009 LTD. The Britannia Suite, International House, Manchester M3 2ER Phone: 0161-832-7200 DORMANTCO 1010 LTD. 164 Deansgate, MANCHESTER M3 3GG Phone: 0161-4806601 PRICEWATERHOUSECOOPERS LLP Benson House 33 Wellington Street Leeds LS1 4JP Phone: [44] (113) 289 4000 Fax: [44] (113) 289 4460 Web site: http://www.pwcglobal.com DRUCE INVESTMENT: In Administrative Receivership ------------------------------------------------ Anglo Irish Bank Corporation Plc appointed Ian Donald Williams and Laurence Pagden (IP Nos 4021 and 9055) of Benedict Mackenzie LLP joint administrative receivers of holding company Druce Investment Property Limited (Reg No 2835494) on Sept. 29. Its registered office is at 62 Wilson Street, London EC2A 2BU. CONTACT: BENEDICT MACKENZIE 62 Wilson Street London EC2A 2BU Phone: 020 7247 1174 Fax: 020 7247 3494 E-mail: i.williams@bmaclondon.com EQUITABLE LIFE: Drops Claims Against Two More Former Directors -------------------------------------------------------------- Equitable Life has reached settlement terms with David Wilson and Roger Bowley, two of the Society's former directors, on the basis that the Society discontinues its claims against them with each side paying its own costs. As the action by the Society is continuing against 11 former directors, the Society can make no further comment. Mr. Wilson was a non-executive director of the Society from April 1994 to June 1999, while Mr. Bowley served as executive director from July 1989 to December 1997. * * * On 3 October 2005, Equitable Life abandoned its negligence claim against former directors Peter Martin and Shaun Kinnis. In return, the two have agreed to pay for their own legal fees. Mr. Martin was a former non-executive director, while Mr. Kinnis served as director for sales and marketing from 1989 to 1997. The insurer had also withdrawn a portion of its claim against former Chief Executive Chris Headdon. He also had served as reporting actuary at the group. Equitable Life, however, intends to pursue its negligence claims against Mr. Headdon (along with 10 others) although talks are said to be ongoing. Equitable Life was earlier reported to have postponed its GBP1.7 billion lawsuit against former directors to pave the way for possible settlement. It was also believed to be a move to avoid further costs. The highly technical trial started in April, involving a number of witnesses and lawyers. Last month, the insurer also withdrew its GBP700 million action against former auditor Ernst & Young, which left it facing angry policyholder groups, and legal costs of GBP30 million. 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. In 2000, the House of Lords forced it to recognize guarantees on policies sold in the 1970s and 1980s, which cost Equitable millions. 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 E WARD: Members Meeting Set Last Week of October ------------------------------------------------ Members of E Ward (Wellingborough) Limited will have a final meeting on October 28, 2005 at 11:30 a.m. It will be held at offices of PricewaterhouseCoopers LLP, Cornwall Court, 19 Cornwall Street, Birmingham B3 2DT. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the company disposed of, and of hearing any explanation that may be given by the Liquidator. Members who want to be represented at the meeting may appoint proxies. CONTACT: E WARD (WELLINGBOROUGH) LTD. Northampton Road, Wellingborough, Northamptonshire NN8 3PP Phone: 01933440110 PRICEWATERHOUSECOOPERS LLP Cornwall Court, 19 Cornwall Street, Birmingham B3 2DT Phone: [44] (121) 200 3000 Fax: [44] (121) 200 2464 Web site: http://www.pwc.com FJ RETAIL: Calls in Liquidator ------------------------------ F. Jacobs, Chairman of FJ Retail Ltd., informs that resolutions to wind up the company were passed at an EGM held on Sept. 28 at Regent House, 24-25 Nutford Place, London W1H 5YN. Mark S. Willis of Icarus Financial Solutions Ltd. was appointed liquidator. CONTACT: FJ RETAIL LTD. 17 Kings Road, Caversham Reading, Berkshire RG4 8DS GODFREYS OF ENFIELD: In Liquidation ----------------------------------- B. D. Meakins, chairman of Godfreys of Enfield Limited, informs that a resolution to wind up the company was passed at an EGM held on Sept. 26 at 60-62 High Street, Harpenden, Hertfordshire AL5 2SP. Anthony David Kent of Maidment Judd, 60-62 High Street, Harpenden, Hertfordshire AL5 2SP was appointed liquidator. CONTACT: GODFREYS OF ENFIELD LIMITED Park Avenue, Edmonton, London N18 2UH Phone: 02088076776 MAIDMENT JUDD 60/62 High Street Harpenden Hertfordshire AL5 2SP Phone: 01582 469700 Fax: 01582 460674 E-mail: akent@maidmentjudd.co.uk GPE EXHIBITIONS: Creditors Meeting Next Week -------------------------------------------- The creditors of GPE Exhibitions Limited (Company No 04784341) will meet on October 18, 2005 at 11:00 a.m. It will be held at Twin Oaks Hotel, Church Lane, Palterton, Chesterfield, Derbyshire S44 6UZ. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to Andrew T. Clay, administrator of Andrew Michaels & Co Ltd, Concept House, Brooke Street, Cleckheaton BD19 3RY not later than October 17, 2005, 12:00 noon. CONTACT: GPE EXHIBITIONS LTD.( THE FURNITURE HIRE PEOPLE.COM) Tornimont Building Smisby Road Ashby De La Zouch Leicester LE65 2UR Phone: 01530 564 287 Fax: 01530 564 723 E-mail: info@gpeexhibitions.com Web site: http://www.gpeexhibitions.com/ ANDREW MICHAELS & CO. LTD. Concept House Brooke Street Cleckheaton Bradford BD19 3RY West Yorkshire Phone: 0870 750 5411 Fax: 0870 750 5412 E-mail: info@andrew-michaels.com HAMMOND MEDIA: Creditors to Meet Tomorrow ----------------------------------------- The creditors of Hammond Media Limited (Company No 04337490) will meet on October 13, 2005 at 10:00 a.m. It will be held at Fisher Partners, Acre House, 11-15 William Road, London NW1 3ER. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to Fisher Partners, Acre House, 11-15 William Road, London NW1 3ER not later than 12:00 noon today. CONTACT: FISHER PARTNERS Acre House 11/15 William Road London NW1 3ER Phone: 020 7388 7000 Fax: 020 7380 4900 E-mail: skatz@hwfisher.co.uk HENDERSON HIGH: Sets Creditors Meeting November 4 ------------------------------------------------- W. J. King, secretary of Henderson High Income Trust Securities Plc, informs that special resolution to wind up the company was passed at an EGM on Sept. 30. James Robert Drummond Smith and Nicholas James Dargan of Deloitte and Touche, 66 Shoe Lane, London EC4A 3WA were appointed liquidators. Creditors are required on or before November 4, 2005, to send in their full names and addresses, with particulars of their debt or claims, to the undersigned, J. R. D. Smith, of Deloitte & Touche, PO Box 810, Athene Place, 66 Shoe Lane, London EC4A 3WA, Joint Liquidator of the company, and, if so required by notice in writing, to prove their said debt or claims. 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 INBLOW FORM: Administrators from Vantis Numerica Move in -------------------------------------------------------- Peter Hughes-Holland and Frank Wessely (IP Nos 001700 and 007788) of Vantis Numerica were appointed joint administrators of Inblow Form Limited (Company No 1070398) on Sept. 26. The company manufactures plastic products. CONTACT: INBLOW FORM LIMITED Unit 51 Wrexham Industrial Estate Wrexham, Clwyd LL13 9XN United Kingdom Phone: (01978) 661951 Fax: (01978) 661924 Web site: http://www.inblowform.co.uk VANTIS NUMERICA 81 Station Road, Marlow, Buckinghamshire SL7 1SX Phone: 01628 478100 Fax: 01628 472629 Web site: http://www.vantisnumerica.com JPMORGAN FLEMING: Liquidator to Deliver Report Early Next Month --------------------------------------------------------------- R. Setchim, Joint Liquidator of JPMorgan Fleming Managed Income plc, informs that the Final Meeting of Members of the Company will be held at the offices of PricewaterhouseCoopers LLP, Plumtree Court, London EC4A 4HT, on 4 November 2005, commencing at 10:30 a.m. A Member entitled to attend and vote at the Meeting may appoint a proxy, who need not be a Member, to attend and vote instead of him or her. CONTACT: PRICEWATERHOUSECOOPERS LLP Plumtree Court London EC4A 4HT Phone: [44] (20) 7583 5000 Fax: [44] (20) 7822 4652 Web site: http://www.pwc.com LAMPTREE LIMITED: Names Liquidator ---------------------------------- G. Ashley-Lound, director of Lamptree Limited, informs that a resolution to wind up the company was passed at an EGM held on Sept. 27 at The Clock House, 87 Paines Lane, Pinner, Middlesex HA5 3BZ. D. Holland was appointed liquidator. CONTACT: LAMPTREE LTD. 52 High Street, Pinner, Middx HA5 5PW Phone: 020 8930 6210 Fax: 020 8930 6207 E-mail: info@lamptree.co.uk IAN HOLLAND & CO. The Clock House, 87 Paines Lane Pinner, Middlesex HA5 3BZ LEAY MBC: Sets Final Meeting October 31 --------------------------------------- D. A. Ingram, joint liquidator of Leay MBC Limited, informs that a Final Meeting of the Members of the company will be held at First Floor, 16-17 Boundary Road, Hove, East Sussex BN3 4AN, on 31 October 2005, at 11:00 a.m. A Member entitled to attend and vote is entitled to appoint a proxy to attend and vote instead of him. A proxy need not be a Member. Proxies to be used at the Meeting should be lodged at First Floor, 16-17 Boundary Road, Hove, East Sussex BN3 4AN, no later than 12:00 noon on the working day immediately before the Meeting. Leay Limited is a family-owned company that has traded since 1937 in the window, glass and glazing market. It handles contracts worth between GBP50,000 and GBP1 million. Leay is now among the ten largest Kawneer dealers in the United Kingdom. It is also the longest established (since 1968) current Kawneer dealer. CONTACT: LEAY LIMITED Quarry Wood Industrial Estate Aylesford, Maidstone Kent ME20 7TQ England Phone: 01622 882345 01622 882208 LIFESTYLE BEAUTY: Calls in Joint Liquidators -------------------------------------------- D. Hadjigeorgiou, chairman of Lifestyle Beauty Ltd., informs that resolutions to wind up the company were passed at an EGM held on Sept. 28 at the offices of Royce Peeling Green Limited, The Copper Room, Deva Centre, Trinity Way, Manchester M3 7BG. Peter Jones and Roderick M. Withinshaw of Royce Peeling Green Limited, The Copper Room, Deva Centre, Trinity Way, Manchester M3 7BG were appointed Joint Liquidators. The appointment was confirmed at a creditors meeting held on the same day. CONTACT: LIFESTYLE BEAUTY LTD. P.O. Box 1099 Bedford MK42 7XR E-mail: success@lifestylebeauty.co.uk Web site: http://www.lifestylebeauty.co.uk/ ROYCE PEELING GREEN The Copper Room Deva Center, Trinity Way, Manchester M3 7BG Phone: 0161 6080000 Fax: 0161 608 0001 E-mail: info@rpg.co.uk Web site: http://www.rpg.co.uk MASQUERADE BAR: Files for Liquidation ------------------------------------- P Hunter-Jones, chairman of The Masquerade Bar Limited, informs that a resolution to wind up the company was passed at an EGM held on Sept. 6 at the offices of Sale Smith & Co. Limited, 30 Derby Street, Ormskirk L39 2BY. Eileen T. F. Sale of Sale Smith & Co. Limited, Carmella House, 3 & 4 Grove Terrace, Walsall, West Midlands WS1 2NE was appointed liquidator. CONTACT: THE MASQUERADE BAR LIMITED 10 Cumberland Street, Liverpool Merseyside L1 6BU Phone: 01512367786 MG ROVER: Court Awards Former Workers GBP14 Million Payout ---------------------------------------------------------- Former MG Rover workers will share a GBP14 million payout awarded by a Birmingham employment tribunal, said The Express. About 6,000 staff, sacked without proper consultation after MG Rover's collapse in April, will receive about GBP2,200 each in the next few weeks. The government will shoulder the amount since MG Rover is in administration. Michael Stokes, partner at Rowley Ashworth solicitors, took the case on behalf of the Transport & General Workers Union, Amicus and GMB. He said: "The employment laws stipulate that if an employer makes more than 20 people redundant they should consult the staff during a 90-day consultation period. The consultation laws were brought in to ensure companies talk to their staff and soften the blow of compulsory redundancies." Adrian Ross, former T&G convener at Longbridge, said: "This judgment proves that the workers must become priority creditors and administrators should consult with unions before laying off any workers." "While we welcome the ruling in our favor, workers and their families should not have been kept waiting for this money. Payment should have been made as soon as possible to prevent further hardship," Western Mail, in another report, quoted T&G General Secretary Tony Woodley as saying. MG Rover produces automobiles under the Rover and MG brands, together with engine maker Powertrain Ltd. The company has been facing huge losses in recent years, reaching GBP64.1 million in 2004, which it blamed on reduced sales. Previously owned by Phoenix Venture Holdings, the company collapsed on April 8 after a tie-up with China's largest carmaker, Shanghai Automotive Industry Corporation (SAIC), failed to materialize. Days later, eight European subsidiaries followed suit. In July 2005, Nanjing bought the assets of both MG Rover and Powertrain for GBP53 million. Rover's administration is expected to continue until next year, with over 2,000 MG Rover cars still to be sold. CONTACT: MG ROVER GROUP LIMITED Longbridge, Bickenhill Birmingham B31 2TB, United Kingdom Phone: +44-121-475-2101 Fax: +44-121-482-2403 Web site: http://www1.mg-rover.com NANJING AUTOMOBILE (GROUP) CORPORATION General Management Division Phone: 86-25-3432671 Fax: 86-25-3111295 3417873 E-mail: bnj3111037@jlonline.com Web site: http://www.nanqi.com.cn MILLERS PHOTOGRAPHY: Appoints Liquidator from Begbies ----------------------------------------------------- K. Miller, chairman of Millers Photography Limited, informs that resolutions to wind up the company were passed at an EGM held on Sept. 22 at Begbies Traynor, 1 Winckley Court, Chapel Street, Preston, Lancashire PR1 8BU. David R. Acland of Begbies Traynor, 1 Winckley Court, Chapel Street, Preston, Lancashire PR1 8BU was appointed liquidator. CONTACT: MILLERS PHOTOGRAPHY LTD. 11 Towers Court, Duckworth Street, Blackburn, Lancashire BB2 2JQ Phone: 01254696909 BEGBIES TRAYNOR 1 Winckley Court Chapel Street Preston PR1 8BU Phone: 01772 202000 Fax: 01772 200099 E-mail: preston@begbies-traynor.com Web site: http://www.begbies.com MONUMENT INDUSTRIAL: Names Moore Stephens Liquidator ---------------------------------------------------- L. Emms, chairman of Monument Industrial Maintenance Limited, informs that resolutions to wind up the company were passed at an EGM held on Sept. 20 at Moore Stephens Corporate Recovery, Beaufort House, 94-96 Newhall Street, Birmingham B3 1PB. Nigel Price of Moore Stephens Corporate Recovery, Beaufort House, 94-96 Newhall Street, Birmingham B3 1PB was appointed liquidator. The appointment was confirmed at a creditors meeting held on the same day. CONTACT: MONUMENT INDUSTRIAL MAINTENANCE LTD. Ryders Green Road, West Bromwich West Midlands B70 0AX Phone: 01215224217 MOORE STEPHENS CORPORATE RECOVERY Beaufort House, 94-96 Newhall Street, Birmingham B3 1PB Phone: 0121 233 2557 Web site: http://www.moorestephens.co.uk NETWORK RAIL: Fined GBP3.5 Million for Hatfield Crash ----------------------------------------------------- Mr. Justice McKay imposed fines on Balfour Beatty and Network Rail (which assumed Railtrack's liabilities), having been found guilty of health and safety offences associated with the Hatfield crash. Justice McKay concluded the level of fines to be: -- Balfour Beatty: GBP10 million -- Network Rail: GBP3.5 million Comment of Network Rail Chairman Ian McAllister The Hatfield tragedy was a terrible event for everyone involved. Lessons have been learnt and the rail industry has changed enormously for the better over the past five years. Since Network Rail took over the nation's railway infrastructure some three years ago, maintenance has been taken in-house rather than being outsourced, and we have changed our approach from a 'find and fix' maintenance regime to one of 'predict and prevent'. We have also invested heavily in new maintenance technology and doubled the size of our company to some 30,000 employees. All these changes have been made as we work to minimize the chances of this ever happening again. Network Rail is a very different company to Railtrack. In the three years that it has been in-charge of the nation's railway infrastructure, it has made sweeping changes to its priorities, to the company structure, and to its people and processes: (a) Network Rail, is a not-for-dividend company, with engineering at its core, (b) The running of a safe, reliable and efficient rail network are the company's clear priorities, (c) Maintenance has been brought in-house under direct control, (d) As a result, maintenance has moved from a 'find and fix' approach to one of 'predict and prevent', (e) We have embarked on a massive railway investment program, spending over GBP5bn each year to operate, maintain and renew the rail infrastructure, (f) We have invested heavily in new technology that measures the condition of the rail infrastructure in more detail and more accurately than ever before Background On 17 October 2000 a GNER train traveling from London to Leeds was derailed at Hatfield. Four people died. The cause of the derailment was a broken rail caused by rolling contact fatigue (formerly known as 'gauge corner cracking'). In October 2002, Network Rail took over Railtrack and assumed all its responsibilities and outstanding legal liabilities. The Hatfield trial began in January 2005 and concluded on 6 September. Balfour Beatty subsequently pleaded guilty, and Network Rail (because of its acquisition of Railtrack's outstanding legal liabilities) was found guilty of offences under the Health and Safety at Work Act 1974. The rail industry accepted responsibility and liability to compensate bereaved families and the injured just a few days after the accident. Network Rail is the 'not for dividend' owner and operator of Britain's railway infrastructure, which includes the tracks, signals, tunnels, bridges, viaducts, level crossings and stations -- the largest of which we also manage * * * Railtrack went into administration in 2001 after the government withdrew funding for the company whose reputation was wrecked by a fatal crash in 2000 at Hatfield. Its shareholders are suing the government for "misfeasance of justice" and a breach of human rights to recover GBP157 million. The case ("Geoffrey Rutherford Weir and ors. v. The Secretary of State for Transport HC03CO4185") is being held at the high court of Mr. Justice Lindsay. Jonathan Sumption is spearheading the government's defense. Geoffrey Weir is the shareholders' lead claimant. Keith Rowley QC is the shareholders' barrister. The investors are acting together as The Railtrack Private Shareholders Action Group (RPSAG). CONTACT: NETWORK RAIL LIMITED 40 Melton St. London NW1 2EE, United Kingdom Phone: +44 20 7557 8000 Fax: +44 20 7557 9000 Web site: http://www.networkrail.com NORTHERN FOODS: Full-, Half-year Profits Lower Under IFRS --------------------------------------------------------- Northern Foods plc has released audited restated financial information for the 52 weeks ended 2 April 2005 (2004/05) and unaudited restated financial information for the 26 weeks ended 2 October 2004 under International Financial Reporting Standards (IFRS). Northern Foods previously prepared the 2004/05 consolidated accounts under U.K. Generally Accepted Accounting Principles (U.K. GAAP). These accounts were published in June 2005. Accordingly, IFRS results will be published in the Interim Report for the 26 weeks ended 1 October 2005, and announced in the Interim Results scheduled for release on 15 November 2005. Principal adjustments from U.K. GAAP to IFRS are: (a) recognition of increased pensions expense and related deficit; (b) convertible bond split into equity and liability components; (c) proposed dividends no longer accrued; (d) deferred tax no longer discounted; and (e) goodwill no longer amortized or recycled. The key impacts on the Group's previously reported results for 2004/5 are: (a) net cash flow unchanged as a result of the transition; (b) 2004/5 full-year profit before tax of GBP62.2 million (U.K. GAAP GBP80.2 million); (c) 2004/5 full year continuing operating margin of 6.1% (U.K. GAAP 7.2%); and (d) 2004/5 first half-year profit before tax of GBP24.3 million (U.K. GAAP GBP33.0 million). The restated financial information, together with a slide presentation and accompanying commentary are available at http://www.northernfoods.com About the Company Leeds-based Northern Foods plc is one of U.K.'s leading food producers with a turnover of GBP1.5 billion and over 22,000 employees based in sites across the U.K. and Ireland. Northern Foods began restructuring and refocusing its business in autumn 2003. It appointed Chief Executive, Pat O'Driscoll, at the end of March 2004. It has also launched a comprehensive strategic review of the business, established a new management team, and simplified its business structure and factory reorganization. CONTACT: NORTHERN FOODS PLC 2180 Century Way, Thorpe Park Leeds LS15 8ZB, United Kingdom Phone: +44-113-390-0110 Fax: +44-113-390-0211 Web site: http://www.northern-foods.co.uk NORTHERN FOODS: Tough Trading Environment Offsets Gains ------------------------------------------------------- Northern Foods plc has released a trading update for the 26 weeks ended 1 October 2005, ahead of the release on 15 November of its Interim Results for the period. Underlying sales for continuing operations show year-on-year growth of approximately 3.4%. Overall, first half operating margins are expected to be broadly maintained. A challenging trading environment and significant inflation in input costs have offset the gains from the Group's procurement and efficiency programs. Performance across our ambient and frozen businesses remains robust. While the chilled division is now operating as a unified business and is beginning to show progress, the process of improving profitability to an acceptable level will take time to achieve. Pat O'Driscoll, chief executive of Northern Foods, said: "As has been well documented, the trading environment remains tough and we will need to recover further input cost inflation in the second half year, particularly in utilities. Nevertheless, I am encouraged by the good progress we are making to restructure and refocus the business towards our goals." About the Company Leeds-based Northern Foods plc is one of U.K.'s leading food producers with a turnover of GBP1.5 billion and over 22,000 employees based in sites across the U.K. and Ireland. Northern Foods began restructuring and refocusing its business in Autumn 2003. It appointed Chief Executive, Pat O'Driscoll, at the end of March 2004. It has also launched a comprehensive strategic review of the business, established a new management team, and simplified its business structure and factory reorganization. CONTACT: NORTHERN FOODS PLC 2180 Century Way, Thorpe Park Leeds LS15 8ZB, United Kingdom Phone: +44-113-390-0110 Fax: +44-113-390-0211 Web site: http://www.northern-foods.co.uk PROFILE MEDIA: Assigns GBP3 Mln Overdraft Facility to Eden ---------------------------------------------------------- The Board of Profile Media Group plc has been advised that the Company's GBP3 million overdraft facility with Barclays Bank plc has been assigned to Eden Invest Limited. The Company is in contact with the representatives of Eden Invest Limited and is expecting to meet with them shortly to discuss their proposals. As a result of the assignment, accrued interest owing to Barclays Bank of GBP105,000 as reported in the Interim accounts for the six-month period ending June 2005 and further interest accrued to the date of the assignment is no longer payable. Eden Invest Limited is a company registered in The British Virgin Islands with administrative offices in Jersey. 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., has been 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 PROTECH BUILDING: Calls in Administrators from Grant Thornton ------------------------------------------------------------- Richard Hawes and Nigel Morrison (IP Nos 8954 and 8938) of Grant Thornton were appointed joint administrators of general construction Protech Building Limited (Company No 03422088) on Sept. 29. The company's registered office is at Millbanc House, Cross Place, Maindy, Cardiff CF14 3AQ. CONTACT: PROTECH BUILDING & MAINTENANCE LTD. Millbank House, Cross Place, Cardiff, Mid Glamorgan CF14 3AQ Phone: 02920624555 GRANT THORNTON UK LLP 11-13 Penhill Road Cardiff CF11 9UP Phone: 02920 235591 Fax: 02920 383803 E-mails: richard.m.hawes@gtuk.com nigel.morrison@gtuk.com SANCTUARY GROUP: Cuts Workforce by 25% -------------------------------------- As announced previously the Board of The Sanctuary Group plc is progressing with a fundamental review of its business. As part of that review, the Group has now taken steps to reduce headcount worldwide across the Group by 175, which represents 25% of the total headcount as at 31 March 2005. The Board does not expect to undertake any further significant headcount reductions. The Board is keen to stress that the new cost structures and staffing levels in place across the Group will not compromise our high level of service and commitment to our artists and customers, and that the Group intends to benefit from an exciting program of Recorded Product, Merchandising, Artist Management and Live Agency activity worldwide. The Board will continue to update the market with progress as appropriate over the next few months. Executive Chairman Andy Taylor said: "I am pleased with the rapid progress we have made in addressing the key issues and costs in our business and we will continue to restructure the Group over the next few weeks and months. Although I am sad to be losing Sanctuary people, I am confident that we have a high quality business and, with a much reduced cost base, I believe we are well-placed to rapidly return to profitability going forward." About the Company The Sanctuary Group plc is one of the world's leading developers of music intellectual property rights (IPR), with offices in London, New York, Berlin, Houston and Los Angeles. In 2004, Sanctuary recorded a turnover of GBP221 million and a group profit of GBP16.1 million. The Artist Management arm of Sanctuary comprises: Music World Entertainment (part of Sanctuary Urban) based in Houston; Trinifold Management based in London; Sanctuary Artist Management (London, Los Angeles, New York and Berlin) and Sanctuary Entertainment (London). Sanctuary's visual rights licensing and merchandising operations, Bravado and World Online, are part of the Artist Services division and have clients ranging from Elton John, Robbie Williams and Simon and Garfunkel to Eminem, Christina Aguilera, 50 Cent and Hilary Duff. On September 21, due to a number of operational and trading problems, the company said it is likely to generate a loss at EBITDA level before exceptional items such as restructuring costs and provisions. The Group has also suffered from recent negative commentary as a result of poor trading in 2005 and this has had an adverse impact in particular in the Records division. It would be looking at disposals of a number of non-core businesses, following the completion of the sale of its Book Publishing division to Music Sales. CONTACT: THE SANCTUARY GROUP PLC Sanctuary House 45 - 53 Sinclair Road London W14 0NS Phone: +44 (0)20 7602 6351 F: +44 (0)20 7603 5941 E-mail: info@sanctuarygroup.com Web site: http://www.sanctuarygroup.com SECURIGUARD ROLLER: Goes into Liquidation ----------------------------------------- G. Colebourne, Chairman of Securiguard Roller Shutters Limited, informs that resolutions to wind up the company were passed at an EGM held on Sept. 23 at Tomlinsons, St John's Court, 72 Gartside Street, Manchester M3 3EL. Alan H. Tomlinson of Tomlinsons, St. John's Court, 72 Gartside Street, Manchester M3 3EL was appointed liquidator. The appointment was confirmed at a creditors meeting held on the same day. CONTACT: SECURIGUARD ROLLER SHUTTERS LTD. Securiguard House, Plane Street, Oldham, Lancashire OL4 2BX Phone: 01616240343 TOMLINSONS St John's Court, 72 Gartside Street, Manchester M3 3EL Phone: 0870 60 70 170 Fax: 0870 60 70 180 E-mail: advice@tomlinsons.co.uk Web site: http://www.tomlinsons.co.uk TXU EUROPE: Federal Court Orders Permanent Injunction ----------------------------------------------------- In re: TXU Europe Limited, Et al. (Petitions of Philip Wedgewood Wallace and James Robert Tucker et al., as Joint Administrators and Liquidators)] Case No. 04-11335 (SMB) Please take notice that on October 4, 2005, the United States Bankruptcy Court for the Southern District of New York entered a Permanent Injunction and Order Pursuant to Sections 105(a) and 304(b) of the Bankruptcy Code Enforcing Company Voluntary Arrangements (the Order) in respect of TXU Europe Limited and certain of its subsidiaries. Any person wishing to obtain copies of the Order of the proposals containing the company voluntary arrangements that are the subject of the Order should contact Theresa D'Agostino at (212) 610-6300. CONTACT: TXU CORPORATION Web site: http://www.txucorp.com Media: Chris Schein Phone: +1-214-875-8329 Mobile: +1-214-534-0087 or Kimberly Morgan Phone: +1-214-875-8016 Mobile: +1-214-543-1251 Investor Relations Tim Hogan Phone: +1-214-875-9275 or Bill Huber Phone: +1-214-875-8301 ALLEN & OVERY LLP 1221 Avenue of the Americas New York, New York 10020 Phone: (212) 610-6300 Fax: (212) 610-6399 URBAN MOBILE: Calls in Joint Liquidators ---------------------------------------- S. M. Hughes, Chairman of Urban Mobile Limited, informs that resolutions to wind up the company were passed at an EGM held on Sept. 27 at the offices of Royce Peeling Green Limited, The Copper Room, Deva Centre, Trinity Way, Manchester M3 7BG. Peter Jones and Roderick M. Withinshaw of Royce Peeling Green Limited, The Copper Room, Deva Centre, Trinity Way, Manchester M3 7BG were appointed Joint Liquidators. CONTACT: URBAN MOBILE LTD. Lord Street, Stockport, SK1 3NA Phone: 0161 480 3331 ********* 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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