/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/000707.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, July 7, 2000, Vol. 1, No. 43 Headlines B U L G A R I A BSR: Debt-Ridden Railway Aims to Cut Losses KREMIKOVTZI: Steelworks Company Posts 179 Million Lev Loss C Z E C H R E P U B L I C INVESTICNI A POSTOVNI: IPB Crisis Fuels Fire for CNB NOVA HUT: Steelmaker Rejects Guaranteed-Delivery Plan ZETOR: Troubled Tractor Maker in Three-Stage Revitalization Plan F R A N C E CREDIT LYONNAIS: Former IMF Managing Director Under Investigation H U N G A R Y MOL: Gas Company to Lose Over $614 Million POSTABANK: APV Prepares to Sell State-Owned Bank P O L A N D ELEKTRIM: Polish Conglomerate Becomes Possible Takeover Target U K R A I N E LYSYCHANSKNAFTOORGSYNTEZ JSC: Prime Minister to Attend Signing NAFTOGAZ UKRAINY: Debt At $ 104 Million SLOVIANSKY BANK: Officials To Appear in Court in September VALSA: Ukraine To Sell Controlling Stake U N I T E D K I N G D O M AE BARTHOLOMEW: Receivership Proceedings ARGENT BUILDING: Receivership Proceedings BARTLETT ENGINEERING: Receivership Proceedings BIG THYME: Receivership Proceedings BRITANNIC GROUP: Receivership Proceedings CALMSERVICE LTD: Receivership Proceedings CONNECTICUT ADVANCED: Receivership Proceedings FLOORSPEC SERVICES: Receivership Proceedings FREESERVE: Dixons' Shares Affected by Plunge GALAXY AIR: Receivership Proceedings GRANDREAMS LTD: Receivership Proceedings INTERFLOW FLOORING: Receivership Proceedings INTERFLOW GROUP: Receivership Proceedings INTERFLOW PROJECTS: Receivership Proceedings KNIGHT & WILLSON: Receivership Proceedings LHC LTD: Receivership Proceedings MATE UK: Receivership Proceedings MADISON LEASING: Receivership Proceedings MADISON PACKAGING: Receivership Proceedings MADISON TRADEHOUSE: Receivership Proceedings NEW AVIATION: Receivership Proceedings REAL INDIGO: Receivership Proceedings ROTOCUT LTD: Receivership Proceedings SCANCHEM UK: Receivership Proceedings S&G SECURITIES: Receivership Proceedings SOUTH LAKELAND: Receivership Proceedings SPRAYTEK SPECIALISTS: Receivership Proceedings STEELBEAM LTD: Receivership Proceedings TRINITY INVESTMENTS: Receivership Proceedings VINITALY LTD: Receivership Proceedings WINDOW MACHINE: Receivership Proceedings ZAMIN GROUP: Receivership Proceedings ZAMIN LTD: Receivership Proceedings =============== B U L G A R I A =============== BSR: Debt-Ridden Railway Aims to Cut Losses ------------------------------ REUTERS, July 4, 2000 SOFIA, Jul 4, 2000 -- (Reuters) Bulgaria's debt-ridden state railway system (BSR) plans to restructure this year in a bid to cut losses and improve performance, its director general said on Tuesday. "Our goal is to cut the company's losses to $30 million this year from $48 million last year," Vladimir Dunchev told Reuters in an interview. The government has already cut its subsidies to 40 million levs ($20 million) this year from 60 million levs last year. Dunchev said BSR had suffered huge losses due to conflicts in neighboring Yugoslavia which diverted freight traffic from the region. Other factors which affected the comapny were high world fuel prices, high dollar against the euro to which the lev currency is pegged and high social contributions to the state. BSR's most profitable service - transportation of goods, has shrunk to 21 million tons last year from 24 million in 1998 and 33 million in 1995. BSR is also closing inefficient links and reducing traffic frequency. The company has cut staff to 38,000 from 53,000 in 1998. Non-core business has been already closed. Bulgaria, which works together with the International Monetary Fund on the introduction of free market reforms following the 1989 fall of communism, is launching a program to improve BSR's structure and financial state. The program, which includes updating information systems and wagon refurbishment, relies on $170 million lending from the World Bank, the European Bank for Reconstruction and Development and grants from the European Union's Phare program. Part of the program is a new railway law to be in force from January 2002. The new bill envisages dividing transportation of freight and passengers into one unit and railway infrastructure including tracks and technical equipment into another. Competition will be introduced by issuing licenses to private operators for transportation services and concessions to private firms for infrastructure passages. KREMIKOVTZI: Steelworks Company Posts 179 Million Lev Loss ------------------------------ REUTERS, July 1, 2000 Bulgarian steelworks Kremikovtzi, privatized a year ago, posted a 179.906 million lev ($88.6 million) loss for last year after a 66.181 million lev loss in 1998, it CEO said on Friday. "Last year's losses were accumulated while the plant was still state-owned," Kremikovtzi's chief executive officer Valentin Zahariev told the annual shareholders meeting. "After we took over, we separated loss-makers from the core operation and expect to have a profitable year," said Zahariev. Local Daru Metals firm bought 71 percent in the debt-laden Kremikovtzi in June 1999 for a token price of one dollar, a pledge to invest $300 million over five years and pay 850 million lev ($357 million) debts to creditors, suppliers and the government. The plant, which accounts for 80 percent of Bulgaria's ferrous metal output, had a 13.005 million lev profit for January-May this year. The new management has shed operations not directly involved with Kremikovtzi's core production. Those included its ore mine and beneficiation plant now run by its management and a steel-tube plant, which was sold to an Ukrainian firm, a supplier of Kremikovtzi. Kremikovtzi is also in talks with Austrian steel group Voest Alpine to set up a joint venture which would upgrade Kremikovtzi's steel casting unit and jointly manage it. Through this arrangement the plant hopes to repay Kremikovtzi's $70 million debt to Austria's Kontrol Bank. =========================== C Z E C H R E P U B L I C ============================ INVESTICNI A POSTOVNI: IPB Crisis Fuels Fire for CNB ------------------------------ PRAGUE POST, July 5, 2000 Call it interesting timing. Just as politicians are haggling over the future of the Czech National Bank (CNB) -- and talking about controversial moves to curtail its power -- the country spins into the largest banking crisis in its history. Observers say this month's collapse and salvage of Investicni a Postovni banka (IPB) -- in which the CNB played a prominent role that's been praised by some and criticized by others -- can't help but impact current political discussions about CNB. "It certainly means the discussion becomes more heated and comes under more scrutiny," said Milan Tomanek, CNB's spokesman. "But we're hoping a reasonable solution can be agreed upon." Late last week, the far-reaching legislation made it through a second reading. A final vote is expected this week. The bill started as a simple set of technical changes to get CNB in line with European Union standards. But political opponents jumped in and added 50 amendments, many of which would give the government a say in the independent regulatory bank. The CNB does everything from setting interest rates to tinkering with currency values to overseeing the banking industry. Some say this gives it immense power in the country, making it able to restrict the ambitions of even the strongest politicians. CNB governor Josef Tosovsky and Civic Democratic Party (ODS) leader Vaclav Klaus have a long-running feud, so it's no surprise the ODS is the biggest supporter of changes to CNB law. "In another country, opening the central bank's door to political input wouldn't be much cause for concern, but with the political environment here, it can become quite dangerous," said Lubomir Lizal, a researcher at Charles University's Center for Economic Research and Graduate Education. Many groups, including CNB, the International Monetary Fund and the European Central Bank, have expressed similar concerns. Besides requiring CNB to clear all monetary policy decisions with legislators, the bill would allow Parliament to choose members of the CNB's board, as well as oversee its budget and pay scales. Those worried about the legislation say an independent central bank is a key requirement for joining the EU's single currency, the euro. Plus, CNB officials say it would "brutally" paralyze their ability to make subtle monetary moves that are crucial to keeping the economy humming. In mid-June, CNB put IPB, the country's third largest bank, under forced administration after it appeared near collapse. A day later, it created the largest bank in Eastern Europe by selling IPB's remaining assets to Ceskoslovenska obchodni banka (CSOB). The forced administrator -- who is supervised by the CNB -- issued a blank-check guarantee for IPB depositors to help push the deal through. It's a move that critics have since seized on as unnecessarily driving up costs for the government. ODS capitalized on the IPB crisis to fan its arguments that CNB has too much power. "We are hoping the CNB legislation should put an end to an era of banking gods ... and turn them into earthly mortals who can be held fully responsible for the consequences that their actions have on the economy of the Czech Republic," said ODS spokeswoman Michaela Malacova. Analysts say the IPB crisis does help ODS make its arguments, but the legislation may already be too far along for it to have much effect. "But it's not unheard of for someone to change their mind in the final reading, and perhaps this could do it," said Pavel Sobisek, an analyst with Bank Austria Creditanstalt. If successful, the new CNB law would take effect Jan 1, 2001. NOVA HUT: Steelmaker Rejects Guaranteed-Delivery Plan ------------------------------ THE PRAGUE POST, July 5, 2000 The board of directors of Ostrava steelmaker Nova Hut on June 29 rejected a plan that would have guaranteed delivery of black coal to the company. Karbon Invest, a majority owner in the coal supplier for Nova Hut, has threatened to cut coal delivery. Karbon Invest spokesman Radek Chalupa cites an outstanding debt of more than 550 million Kc ($14.5 million) to the Karbon Invest subsidiary Ostravskokarvinske doly (OKD) as the motivation behind the proposal. Nova Hut has cut its debt to OKD by more than 1 billion Kc in the past year. Karbon Invest owns more than 48 percent of OKD, and the Czech Republic is another major stakeholder. The Nova Hut board rejected a plan which would set aside more than 50 percent of Nova Hut-owned Valcovny plechu Frydek-Mistek and Slovenian company Alpos as collateral for Karbon Invest to guarantee coal delivery, Nova Hut union representative Frantisek Saidl told the Czech news agency CTK. Saidl told CTK that the guarantee would have conflicted with loan contracts between Nova Hut, creditor banks and the International Financial Corporation. The steelmaker's union had pressured the company to reject the proposal to set aside stock as collateral, calling Karbon Invest's demands blackmail. "Our requirement to guarantee further coal supplies to Nova Hut cannot be considered extortion, but a justified protection of OKD's shareholders and employees," Chalupa said. Chalupa said he would not comment on the board's rejection of the plan until Karbon Invest is given a formal notification of the decision. The union also called on Industry and Trade Minister Miroslav Gregr to remove the cap on the amount of coal imported from Poland and Ukraine. Nova Hut wants to be able to buy coal from other sources if OKD and Karbon Invest cut off the company's coal supply. But Chalupa said he didn't know how Nova Hut would be able to pay for coal from other countries when it couldn't pay its debt to a local company. Chalupa said an increase in the amount of coal imported into the Czech Republic would only put Czech coal miners out of work, a prospect dreaded by coal miners' unions. "If the unions succeed with the proposal, OKD will have to reduce mining and lay off some of its 20,000 employees," Chalupa said. Nova Hut has been foundering, despite the recent injection of 16 billion Kc that it and steelmaker Vitkovice received from government coffers. Another 300 million Kc for severance pay to more than 2,000 laid off employees should flow into nine steelworks, including Nova Hut, during the next two years. ZETOR: Troubled Tractor Maker in Three-Stage Revitalization Plan ------------------------------ THE PRAGUE POST, July 5, 2000 Following in the tracks of debt-ridden truckmaker Tatra and other ailing Czech manufacturing companies, tractor manufacturer Zetor is rumbling toward some much-needed resuscitation from the Revitalization Agency. A three-stage plan is in motion to clear up the ailing company's debt and restructure its manufacturing plan to clear the way for a new strategic partner, said Brian Wilson, a director at the Revitalization Agency. "Zetor is a buyable business -- there is demand for its products," he said. "All we are doing is stabilizing the company." But Pavel Stastny, an analyst with the Cyrrus brokerage firm, said he doubts Zetor is still marketable after its plant closed several times in the last year -- making prospective investors wonder if the plant can be saved. Zetor was closed for almost half of 1999. In an effort to revive the company, Revitalization Agency subsidiary Revitalizacni Traktor took control of Zetor's working capital, wages, inventory purchasing and sales in late June. Wilson said the agency gave Traktor control in order to prevent Zetor from spending Revitalization Agency money to manufacture tractors that don't have buyers. He said Zetor, like many manufacturing companies in the Czech Republic, was more concerned with keeping workers busy than selling its product. With Zetor's total debt at about 1.9 billion Kc ($50 million) and growing, Wilson said the Revitalization Agency's next step will be to file a composition plan in the Brno commercial court in early July, detailing how creditors will be paid. If the buyout plan is approved, Konsolidacni banka, which holds a 98 percent stake in Zetor, will assume the tractormaker's debts, then swap the debt for equity in the company. Zetor's creditors will receive a percentage of the total they are owed if they choose to participate in the buyout. Wilson said he is hoping most of Zetor's creditors choose to participate because it will make the company's balance sheet more attractive to potential strategic partners. Even if Zetor's creditors are satisfied, Stastny said he would be surprised if they continued to deliver supplies to the company. The Revitalization Agency plans to have a strategic partner involved with Zetor in five months, Wilson said, but the process could take longer if not all of Zetor's creditors participate in the buyout. He said if a partner is found, the company would buy the equity Konsolidacni acquired through the swap with Zetor. Several companies are interested in partnering, Wilson said, but he declined to name them. The amount of money needed to keep Zetor running could be daunting for some possible partners though, Stastny said. =========== F R A N C E =========== CREDIT LYONNAIS: Former IMF Managing Director Under Investigation ------------------------------ AGEFI, July 5, 2000 PARIS, July 5 (AFP) - Former IMF managing director Jacques de Larosiere on Wednesday joined the list of senior French figures under investigation in an effort to determine who was to blame for the near-bankruptcy of state-owned bank Credit Lyonnais almost a decade ago. De Larosiere has been informed by letter that he is being investigated for "complicity in communicating false information to the market and complicity in the presentation and publication of inaccurate accounts," a judicial source said. Under French law, being placed under investigation is a preliminary step which can lead to indictment if wrongdoing is found. ============= H U N G A R Y ============= MOL: Gas Company to Lose Over $614 Million ------------------------------ THE BUDAPEST SUN, July 6, 2000 HUNGARY's oil and gas company Mol could lose over $614 million by the end of 2001, according to local analysts, after the Government's decision to initiate a 12% price hike in the price of natural gas. Following the controversial decision, Mol's board voted to cut off its gas division from the company's core activities. These include distribution, retail sales and storage. The company for months had been lobbying the Government for a 30% price hike, but Prime Minister Orb n felt the increase would be too much of a price burden for everyday consumers. But recent events suggest that there might be an ulterior motive, namely the chance for the Government to nationalize a business which will help short-term political aspirations and at a later date fill Government coffers when it is re-privatized under Fidesz leadership. Speaking at the Industrial Energy Consumers Forum's (IEF) press conference P,ter H�nig, Deputy State Secretary of the Ministry of Economics Affairs said that while the Government had made no fixed offer for Mol's gas business, he believed that re- nationalizing it could help Mol cut costs. H�nig added that such a transaction would require the separation of the company's gas business dividing it into three smaller divisions. According to Attila V g�, analyst for Concorde Securities, the asset book value of the natural gas business is estimated at $560 million, or 40% of the total net value of Mol (at the end of Q1 this year this was $1.39 billion). Following last week's Cabinet meeting, Hungarian Prime Minister Viktor Orb n said that the gas price hike in 2001 would not be allowed to exceed next year's inflation rate target of 5%. This year's permitted annual price rise of 6% corresponded with the original target made by the Government in January for the year. Analysts said that they are still confused over the statement made last week by Zsigmond J rai, Minister of Finance. J rai said that Government would re-nationalize Mol's natural gas business at the price that the company was privatized for. The five-year privatization procedure involved three major offerings that were paid for in cash. Local and foreign institutional investors purchased 46.3 million shares for a total of $680m calculating an average price of $14.65 for each share. During Mol's last offering institutional investors paid $30 per share in March 1998. Mol stock closed at Ft3,755 or $13.60 after Friday's trading on the Hungarian bourse. POSTABANK: APV Prepares to Sell State-Owned Bank ------------------------------ REUTERS, July 5, 2000 Hungary's state privatization agency APV will work out a plan for a possible sell-off of Postabank, the last state-owned large bank in the country, a government spokesman said on Tuesday. "The government has requested APV to measure up the market value of Postabank and the size of a capital increase needed to keep its market position," government spokesman Gabor Borokai told a news conference following the weekly cabinet meeting. The government took full control of the then-troubled bank in 1998 with a capital increase in excess of $700 million, after Postabank accumulated huge losses in the previous years. Borokai said police investigation to find out who caused the losses of the bank was under way. "The Interior Minister has told the government that a report had been prepared about Postabank, and five serious economic crime cases are outlined," the spokesman added. Postabank, which in 1998 was Hungary's third largest commercial bank by assets, has been posting small profits since the government bailout. But the bank has said it needed further development to retain its positions in Hungary's competitive banking market, which many analysts say is overbanked. Postabank Deputy Chief Executive Officer Laszlo Urban has urged the government recently to carry out the bank's privatization within one year. Postabank said in a statement on Tuesday that a financial adviser would be selected to help the bank's privatization. "Probably APV will be commissioned to select the financial adviser," Postabank said. Borokai said he did not know whether the government would increase Postabank's capital again to prepare it for a sell-off, or a capital hike could be part of its privatization. "APV must make a proposal," he said, adding that APV was expected to prepare its plan by October. =========== P O L A N D =========== ELEKTRIM: Polish Conglomerate Becomes Possible Takeover Target ------------------------------ REUTERS, July 5, 2000 Polish telecoms and power conglomerate Elektrim has become an attractive takeover target after the firm's shareholders voted last week to severely limit financing for its future growth, analysts say. Elektrim's range of telecoms holdings and slumping share price have registered it as a possible target on the radar screens of foreign telecoms players, including giants like Deutsche Telekom and Vivendi, they say. Elektrim would give an excellent foothold on the vibrant telecoms market in Poland, central Europe's largest economy, where mobile phone usage doubled last year and fixed-line penetration and Internet usage show huge growth potential. And after Elektrim's shareholders voted down an ambitious capital increase intended to fund telecoms plans and further expansion, the firm's financing difficulties could prove a blessing for possible suitors. "Elektrim's hands are now tied," said Bob Creamer a telecoms analyst at Raiffeisen Capital & Investment. "And a less diversified Elektrim becomes a perfect target for a takeover." Among Elektrim's assets are a majority stake in Poland's leading mobile phone firm PTC, second-biggest cable TV provider Bresnan and fixed-line operator El-Net. The group also controls cable maker Elektrim Kable and PAK powerplant. CHEAP AND MAYBE CHEAPER Analysts added that the inability to gain cash through a share issue will force Elektrim to turn to more expensive forms of financing that would inflate its already considerable debt, putting more pressure on its declining share price. Elektrim's shares were fixed at Zl 48.8 ($11.37) on Wednesday. They have fallen 17 percent since plans were announced for a new issue and have shed about a third of their worth since high-tech enthusiasm pushed them to an all-time high of Zl 77.5 in mid- March. The stock hit a low of Zl 25.9 last November when Elektrim appeared about to sink under the weight of its debt. It was rescued by a cash injection from Vivendi. "Elektrim could be bought cheaply. Its market valuation should keep the price tag for any takeover low for a while," said Piotr Wozniak, a telecoms analyst at Pekao brokerage in Warsaw. Elektrim's stock is now trading at a price to book ratio of 7.4, in line with the median of its regional peers of 7.5, according to Reuters Securities 3000 data. But the measure, which serves as an indicator of the premium investors are willing to pay over the firm's net assets, shrinks considerably if this year's revaluation of Elektrim's most valuable asset, PTC, is taken into account. Elektrim, which previously valued most of its PTC stake at the nominal level set when the operator was established in 1996, reappraised the country's leading mobile phone firm to give it a market value of $4.1 billion. The move nearly tripled the value of Elektrim's assets. The firm's inability to fully continue its drive to integrate telecoms services with promising Internet purchases because of its financing constraints should also keep its price depressed and make it easier for a buyer to swallow. Elektrim, the most liquid stock listed in Warsaw, has seen its market cap drop to below $1.0 billion. Deutsche Telekom is valued at $161 billion and Vivendi, excluding its recent purchase of Seagram is valued at $53.9 billion. CIRCLING OVER WEAK PARTNER Vivendi gave Elektrim a much-needed shot in the arm at the end of last year when it paid $1.2 billion for 49 percent of Elektrim Telekomunikacja, a joint venture that includes a stake in the cellular operator PTC and cable TV firm Bresnan. But the Polish and French conglomerates are now at odds over how to include fixed-line company El-Net in the telecoms holding, suggesting tension between the partners. Vivendi has agreed not to hold more than five percent of Elektrim, but analysts said the French group could still decide to increase its influence and boost its stake in the firm. "We don't know the exact details of the agreement and there's probably a way for Vivendi to circumvent the ownership limitations," said Wozniak. The other possible partner-turned-predator could be Deutsche Telekom, which on Monday gained control of Hungary's dominant telecom firm Matav and is likely looking for ways to significantly increase its presence in nearby Poland. The German juggernaut has had a stormy relationship with Elektrim, wrestling with the Polish firm for control of PTC for the last nine months. With pockets full of cash after its gigantic $14.5 billion bond offering this month, Deutsche Telekom may want to rethink its strategy in Poland and include Elektrim in its future plans, analysts speculate. LAW CREATES OBTACLES But limits on foreign ownership of Polish telecoms firms will slow down advances from potential suitors. Currently non-domestic companies cannot own more than fifty percent of fixed-line and mobile operators. The threshold could prevent an outside investor from acquiring a majority of Elektrim until a new telecoms law allowing larger foreign ownership comes into effect in 2002. But in the next months Vivendi, Deutsche Telekom or another player could seek to position itself to gain control when limits are finally lifted. "When the law changes the all-important thing is who will be first to the finish line, or 50 percent of Elektrim," said a London-based analyst. "And what we've seen in Poland over the last few years is that there are various ways of getting into a pretty good position so that when the day comes a winner emerges with a huge stake," he added. ============= U K R A I N E ============= LYSYCHANSKNAFTOORGSYNTEZ JSC: Prime Minister to Attend Signing ------------------------------ KIEV POST, July 5, 2000 Prime Minister Viktor Yushchenko will attend a ceremony for signing an agreement sealing the sale of a 67.4 percent stake in Ukraine's second-largest oil refinery, LyNOS, on July 11, State Property Fund officials said. The local subsidiary of Russia's Tyumen Oil Company (TNK) was named the preliminary winner of the LyNOS tender late last month after offering to pay Hr 50 million ($9.2 million) for the stake, up from the starting price of Hr 48.5 million. Although the SPF has yet to make the final announcement, TNK- Ukraine is widely expected to gain control over the debt-ridden refinery. The winner of the tender will be required to secure annual supplies of at least 4 million tons of crude - or 25 percent of LyNOS' processing capacity - as well as pay off the refinery's mounting debts worth tens of millions of dollars. LyNOS posted a Hr 173 million loss last year and a loss of Hr 182.9 million in 1998 based on Ukrainian accounting standards, which differ significantly from those in the West. LyNOS stood idle for most of last year due to a lack of supplies. Tyumen Oil Company extracted 20 million tons of oil last year (about 7 percent of Russia's total), up from 19.6 million tons in 1998. NAFTOGAZ UKRAINY: Debt At $ 104 Million ------------------------------ KIEV POST, July 4, 2000 State oil and gas company Naftogaz Ukrainy reduced its debt to Turkmenistan by 8 percent to $104 million in June, the company said. The money is owed for the $315 million worth of natural gas supplied in January-May last year. Naftogaz is currently trying to negotiate a debt-rescheduling scheme with Turkmenistan. SLOVIANSKY BANK: Officials To Appear in Court in September ----------------------------- KIEV POST, July 4, 2000 Ukraine's State Tax Administration announced Monday that top officials of Sloviansky Bank arrested back in March will finally appear in court in September to face charges of tax fraud. Two bank managers, Board Chairwoman Olena Yakimenko and Vice President Boris Feldman, have been in custody since March on charges of tax evasion and fraud. Three other bank officials arrested in March on tax fraud charges have since been released. The STA, which has drawn criticism for both strong-arm methods in bringing the case against Sloviansky and for holding Yakimenko and Feldman without bail, defended its actions on Monday. Deputy STA chief Vadym Kopylov told a press conference that the ongoing investigation of the case has yielded evidence supporting the original charges of tax fraud against several Sloviansky managers. "There are facts of forgery, facts of fraud. In my view, they are incontestable," Ukrainian News quoted Kopylov as saying. Yakimenko and Feldman were hit with an additional charges of stealing bank property last week, Ukrainian News reported. The arrests have crippled operations at the bank, which is one of Ukraine's 10 largest. The arrests reportedly triggered an rush on deposits from the bank in March, although the bank later said it had managed to stabilize the situation and resume profitable operations in April. But more bad news arrived last week, when bank managers said they would unload Hr 300 million in bank-owned equities in order to pay out deposits to clients. The package includes promissory notes in a metallurgical plant and two big ore-enrichment plants. In response to that news, Yaroslalv Soltys, deputy governor of the National Bank of Ukraine, said the NBU would oversee these operations to prevent the sale of the bank's assets at lower than market prices. He did not say how long the NBU's temporary administration of Slaviansky would last. Sloviansky's shares are held by the Transformator factory and a group of individuals. VALSA: Ukraine To Sell Controlling Stake ------------------------------ REUTERS, July 5, 2000 Ukraine will sell a 50.01 percent stake in Valsa tyre maker through a privatization tender in August, the State Property Fund said on Wednesday. The starting price of the stake is set at 25 million hryvnias ($4.6 million), it said. Last year the fund failed to sell the stake at a starting price of 34.772 million hryvnias. The fund also said the winner must continue tyre production and preserve the current number of employees. The company, located in Bila Tserkva in central Ukraine, made a pre-tax loss of 53.3 million hryvnias in 1999, compared to losses of 49.2 million hryvnias in the previous year. The figures are calculated to Ukrainian accounting standards which differ significantly from those in the West. ($=5.4382 hryvnia) =========================== U N I T E D K I N G D O M =========================== AE BARTHOLOMEW: Receivership Proceedings ------------------------------ Company Name: A E Bartholomew & Co Ltd Company No: 0713305 Com. Business: General Construction/Civil Engine Appointed on: 12/06/00 Appointed by: GMAC Commerical Credit Type: Administrative Receivers: P S Dunn IPno: 2368, S R Thomas 1289 Firm Name: Horwath Clark Whitehill Address: Sherlock House 7 Kenrick Place City Postcode: London W1H 3FF ARGENT BUILDING: Receivership Proceedings ------------------------------ Company Name: Argent Building Services Ltd Company No: 1974800 Com. Business: Other Building Installation Trade clasif.: 23 Appointed on: 13/06/00 Appointed by: National Westminster Type: Administrative Receivers: Simon Michaels IPno: 8824, Raymond Hocking 2322 Firm Name: BDO Stoy Hayward Address: 8 Baker Street City Postcode: London W1M 1DA BARTLETT ENGINEERING: Receivership Proceedings ------------------------------ Company Name: Bartlett Engineering Ltd Company No: 1242549 Com. Business: Precision Engineering Trade clasif.: 2875 Appointed on: 09/06/00 Appointed by: Bank of Scotland Type: Administrative Receivers: Antony R Fanshawe IPno: 5944, Stephen J Adshead 8574 Firm Name: Fanshawe Lofts Address: 41 Castle Way City Postcode: Southampton SO14 2BW BIG THYME: Receivership Proceedings ------------------------------ Company Name: Big Thyme Charlie Potatoes Ltd Company No: 3696803 Com. Business: Restaurant Trading Name: The Directory Appointed on: 07/06/00 Appointed by: The Royal Bank of Scotland Type: Administrative Receivers: N F Hickling IPno: 5449, S Cork 8627 Firm Name: Smith & Williamson Address: No 1 St Swithin Street City Postcode: Worcester WR1 2PY BRITANNIC GROUP: Receivership Proceedings ------------------------------ Company Name: Britannic Group Plc Company No: 3056787 Com. Business: Timber Processing/Distribution Trade clasif.: 15 Appointed on: 13/06/00 Appointed by: GE Capital Comm Finance Type: Administrative Receivers: Iain J Allan IPno: 7310, Peter G Mills 7948 Firm Name: Smith & Williamson Address: No 1 Riding House Street City Postcode: London W1A 3AS CALMSERVICE LTD: Receivership Proceedings ------------------------------ Company Name: Calmservice Ltd Company No: 3102907 Com. Business: Hotel/Bars/Nightclub Trading Name: The Grand Hotel Trade clasif.: 5511 Appointed on: 12/06/00 Appointed by: Carlsberg-Tetley Brewing Type: Administrative Receivers: Paul H Finn IPno: 5367, Peter A Finn 8098 Firm Name: Finn Associates Address: Tong Hall City Postcode: Tong BD4 0RR CONNECTICUT ADVANCED: Receivership Proceedings ------------------------------ Company Name: Connecticut Advanced Products (UK) Ltd Company No: 3241453 Com. Business: Supply Aircraft Engine Spares Trade clasif.: 11 Appointed on: 09/06/00 Appointed by: Bank of Scotland Type: Administrative Receivers: Antony R Fanshawe IPno: 5944, Stephen J Adshead 8574 Firm Name: Fanshawe Lofts Address: 41 Castle Way City Postcode: Southampton SO14 2BW FLOORSPEC SERVICES: Receivership Proceedings ------------------------------ Company Name: Floorspec Services Ltd Previous Name: Solvecatch Co Ltd Company No: 2808101 Appointed on: 06/06/00 Appointed by: National Westminster Type: Administrative Receivers: D Swaden IPno: 5495, D J Power 6006 Firm Name: BDO Stoy Hayward Address: Peter House St Peters Square City Postcode: Manchester M1 5AB FREESERVE: Dixons' Shares Affected by Plunge ------------------------------ THIS IS MONEY, July 5, 2000 Electrical retailer Dixons pushed profits ahead by a better-than- expected 11% last year, despite falling High Street prices, and said each of its four major chains - Dixons, Currys, The Link and PC World - had increased market share. But the buoyant figures, accompanied by an upbeat outlook, brought little relief to Dixons' shares, battered by the roller-coaster fortunes of the group's 80%-owned internet service provider, Freeserve. Freeserve lost more than a fifth of its value last week as takeover talks with Germany's T-Online were abandoned. Dixons chief executive John Clare said talks are continuing with 'a number of parties about a variety of potential transactions' for Freeserve although these do not include a full-scale takeover. Market expectations of a sale had been overblown, he said: 'We are not desperately keen to sell Freeserve and there is no auction going on. But we do want Freeserve to play a role in the consolidation of the internet business. I am certain that it will be involved in significant partnership deals.' Excluding Freeserve, profits for the year to 29 April rose 11% to ?263.7m before tax, on turnover 23% higher at ?3.89bn. Including Freeserve, profits were more than doubled, at ?472.1m and the dividend* total is raised by 20% to 4.6p. Margins, down 0.7% over the first half, fell 1% in the full year as price deflation continued apace. But Clare said prices appear to be stabilising and the group is offsetting margin erosion by further reductions in its costs. 'Margins will not get better magically so the challenge for us is to be more efficient,' he said. 'Today's results show we have done pretty well with that.' Like-for-like sales of the Dixons chain increased by 7%, with strong sales of mobile phones and portable computers offsetting a steep decline in video games. At Currys there was strong demand for widescreen televisions, white goods and digital camcorders but sales growth lagged behind at 3%. Dixons' star performer was its mobile-phones retail chain, The Link, where underlying sales surged by almost a third on the back of booming demand for pre-pay phones. The computers chain, PC World posted a like-for-like rise of 7%. The current year has seen further sales growth, against tough comparisons, although the group gave no figures. Dixons shares, which have underperformed the All Share index by 20% this year, shed 5p to 275p despite the top-of-the range figures. Analysts said they were concerned about the continued pressure on margins, the lack of detail on Freeserve and lack of current trading figures. GALAXY AIR: Receivership Proceedings ------------------------------ Company Name: Galaxy Air Cargo Ltd Previous Name: Air-Tech Transport & Logistics Ltd Company No: 3528730 Com. Business: Freight & Cargo Transportation Trade clasif.: 32 Appointed on: 06/06/00 Appointed by: Bank of Scotland Type: Administrative Receivers: Edward Klempka IPno: 5791, Stephen A Ellis 8843 Firm Name: PricewaterhouseCoopers Address: 9 Bond Court City Postcode: Leeds LS1 2SN GRANDREAMS LTD: Receivership Proceedings ------------------------------ Company Name: Grandreams Ltd Company No: 1336753 Com. Business: Childrens Books Publisher Trade clasif.: 2211 Appointed on: 05/06/00 Appointed by: N T Butterfield & Sons Type: Administrative Receivers: G P Squires IPno: 7856, David J Whitehouse 8699 Firm Name: Kroll Buchler Phillips Address: 84 Grosvenor Street City Postcode: London W1X 9DF INTERFLOW FLOORING: Receivership Proceedings ------------------------------ Company Name: Interflow Flooring Ltd Previous Name: Yearnpower Ltd Company No: 2748107 Appointed on: 06/06/00 Appointed by: National Westminster Type: Administrative Receivers: D Swaden IPno: 5495, D J Power 6006 Firm Name: BDO Stoy Hayward Address: Peter House St Peters Square City Postcode: Manchester M1 5AB INTERFLOW GROUP: Receivership Proceedings ------------------------------ Company Name: Interflow Group Ltd Company No: 3654730 Appointed on: 06/06/00 Appointed by: National Westminster Type: Administrative Receivers: D Swaden IPno: 5495, D J Power 6006 Firm Name: BDO Stoy Hayward Address: Peter House St Peters Square City Postcode: Manchester M1 5AB INTERFLOW PROJECTS: Receivership Proceedings ------------------------------ Company Name: Interflow Projects Ltd Previous Name: Quadrega Ltd Company No: 3532719 Appointed on: 06/06/00 Appointed by: National Westminster Type: Administrative Receivers: D Swaden IPno: 5495, D J Power 6006 Firm Name: BDO Stoy Hayward Address: Peter House St Peters Square City Postcode: Manchester M1 5AB KNIGHT & WILLSON: Receivership Proceedings ------------------------------ Company Name: Knight & Willson Ltd Company No: 2811472 Com. Business: Printing Trade clasif.: 10 Appointed on: 12/06/00 Appointed by: State Securities Plc Type: Administrative Receivers: Edward Klempka IPno: 5791, Robert C Coyle 1093 Firm Name: PricewaterhouseCoopers Address: 9 Bond Court City Postcode: Leeds LS1 2SN LHC LTD: Receivership Proceedings ------------------------------ Company Name: LHC Ltd Company No: 1861877 Com. Business: Nursing Home Trading Name: The Endcliffe Hotel Trade clasif.: 40 Appointed on: 12/06/00 Appointed by: Coutts & Co Type: Administrative Receivers: Geoffrey S Kinlan IPno: 8268, David H Gilbert 2376 Firm Name: BDO Stoy Hayward Address: Prospect Place 85 Great North Road City Postcode: Hatfield AL9 5BS MATE UK: Receivership Proceedings ------------------------------ Company Name: Mate (UK) Ltd Company No: 2028232 Com. Business: Supply Textile Machines/Spares Appointed on: 13/06/00 Appointed by: Bank of Scotland Type: Administrative Receivers: Brian J Hamblin IPno: 2085, Edward T Kerr 9020 Firm Name: Pannell Kerr Forster Address: Pannell House 159 Charles Street City Postcode: Leicester LE1 1LD MADISON LEASING: Receivership Proceedings ------------------------------ Company Name: Madison Leasing Ltd Company No: 3787913 Appointed on: 07/06/00 Appointed by: Venture Finance Plc Type: Administrative Receivers: Anthony Murphy IPno: 8716, Andrew Appleyard 8749 Firm Name: Smith & Williamson Address: Onslow Bridge Chambers Bridge Street City Postcode: Guildford GU1 4RA MADISON PACKAGING: Receivership Proceedings ------------------------------ Company Name: Madison Packaging Ltd Company No: 2661050 Appointed on: 07/06/00 Appointed by: Venture Finance Plc Type: Administrative Receivers: Anthony Murphy IPno: 8716, Andrew Appleyard 8749 Firm Name: Smith & Williamson Address: Onslow Bridge Chambers Bridge Street City Postcode: Guildford GU1 4RA MADISON TRADEHOUSE: Receivership Proceedings ------------------------------ Company Name: Madison Tradehouse Ltd Company No: 3552276 Appointed on: 07/06/00 Appointed by: Venture Finance Plc Type: Administrative Receivers: Anthony Murphy IPno: 8716, Andrew Appleyard 8749 Firm Name: Smith & Williamson Address: Onslow Bridge Chambers Bridge Street City Postcode: Guildford GU1 4RA NEW AVIATION: Receivership Proceedings ------------------------------ Company Name: New Aviation Holdings Ltd Company No: 2958667 Com. Business: Holding Co Trade clasif.: 29 Appointed on: 09/06/00 Appointed by: Bank of Scotland Type: Administrative Receivers: Ian T Watters IPno: 6158, Gordon Christie 8223 Firm Name: Arthur Andersen Address: 18 Charlotte Square City Postcode: Edinburgh EH2 4DF REAL INDIGO: Receivership Proceedings ------------------------------ Company Name: Real Indigo Co Ltd - The Company No: 3074993 Com. Business: Manuf/Supp Indigo Dyed Cotton Yarn Trade clasif.: 17110 Appointed on: 06/06/00 Appointed by: National Westminster Type: Administrative Receivers: Brian Green IPno: 8709, Michael T Seery 5931 Firm Name: KPMG Address: St James Square City Postcode: Manchester M2 6DS ROTOCUT LTD: Receivership Proceedings ------------------------------ Company Name: Rotocut Ltd Company No: 2738779 Com. Business: Fabrication Appointed on: 08/06/00 Appointed by: National Westminster Type: Administrative Receivers: J J Gleave IPno: 6657, M J Moore 1168 Firm Name: Kroll Buchler Phillips Address: 18 Oxford Court Bishopsgate City Postcode: Manchester M2 3WQ SCANCHEM UK: Receivership Proceedings ------------------------------ Company Name: Scanchem UK Ltd Company No: 24119334 Appointed on: 08/06/00 Appointed by: National Westminster Type: Administrative Receivers: J J Gleave IPno: 6657, David J Whitehouse 8699 Firm Name: Kroll Buchler Phillips Address: 18 Oxford Court Bishopsgate City Postcode: Manchester M2 3WQ S&G SECURITIES: Receivership Proceedings ------------------------------ Company Name: S & G Securities Ltd Company No: 3479240 Com. Business: Manufacturing Trade clasif.: 11 Appointed on: 07/06/00 Appointed by: HSBC Bank Plc Type: Administrative Receivers: Simon Michaels IPno: 8824, Raymond Hocking 2322 Firm Name: BDO Stoy Hayward Address: 8 Baker Street City Postcode: London W1M 1DA SOUTH LAKELAND: Receivership Proceedings ------------------------------ Company Name: South Lakeland Care Ltd Previous Name: Choiceboost Ltd Company No: 3038937 Com. Business: Nursing Home Trading Name: Redlands Nursing Home Trade clasif.: 40 Appointed on: 08/06/00 Appointed by: National Westminster Type: Administrative Receivers: J J Gleave IPno: 6657, David J Whitehouse 8699 Firm Name: Kroll Buchler Phillips Address: 18 Oxford Court Bishopsgate City Postcode: Manchester M2 3WQ SPRAYTEK SPECIALISTS: Receivership Proceedings ------------------------------ Company Name: Spraytek Specialists Coatings Ltd Company No: 3204521 Appointed on: 06/06/00 Appointed by: National Westminster Type: Administrative Receivers: D Swaden IPno: 5495, D J Power 6006 Firm Name: BDO Stoy Hayward Address: Peter House St Peters Square City Postcode: Manchester M1 5AB STEELBEAM LTD: Receivership Proceedings ------------------------------ Company Name: Steelbeam Ltd Company No: 2659829 Com. Business: General Construction/Engineering Trade clasif.: 23 Appointed on: 08/06/00 Appointed by: National Westminster Type: Administrative Receivers: Michael T Seery IPno: 5931, Peter Terry 5804 Firm Name: KPMG Address: Edward VII Quay Navigation Way City Postcode: Ashton-on-Ribble PR2 2YF TRINITY INVESTMENTS: Receivership Proceedings ------------------------------ Company Name: Trinity Investments Ltd Previous Name: Trinity Foods Ltd Company No: 1104271 Com. Business: Property Development Appointed on: 13/06/00 Appointed by: Barclays Bank PLC Type: Administrative Receivers: D J Power IPno: 6006, D Swaden 5495 Firm Name: BDO Stoy Hayward Address: Peter House St Peters Square City Postcode: Manchester M1 5AB VINITALY LTD: Receivership Proceedings ------------------------------ Company Name: Vinitaly (Italian Wines & Food) Ltd Previous Name: Russo Developments Ltd Company No: 356289 Com. Business: Wine & Food Import/Wholesale Trade clasif.: 5117 Appointed on: 13/06/00 Appointed by: National Westminster Type: Administrative Receivers: Brian Green IPno: 8709, Michael T Seery 5931 Firm Name: KPMG Address: 8 Princes Parade City Postcode: Liverpool L3 1QH WINDOW MACHINE: Receivership Proceedings ------------------------------ Company Name: Window Machine Developments Ltd Company No: 2768059 Appointed on: 05/06/00 Appointed by: HSBC Bank Plc Type: Administrative Receivers: Phillip A Revill IPno: 6421, Brian S Creber 1062 Firm Name: Poppleton & Appleby Address: 93 Queen Street City Postcode: Sheffield S1 1WF ZAMIN GROUP: Receivership Proceedings ------------------------------ Company Name: Zamin Group Ltd Company No: 3503143 Com. Business: Holding Co Trade clasif.: 38 Appointed on: 09/06/00 Appointed by: Bank of Scotland Type: Administrative Receivers: Antony R Fanshawe IPno: 5944, Stephen J Adshead 8574 Firm Name: Fanshawe Lofts Address: 41 Castle Way City Postcode: Southampton SO14 2BW ZAMIN LTD: Receivership Proceedings ------------------------------ Company Name: Zamin Ltd Company No: 2981371 Com. Business: Precision Engineering Trade clasif.: 2852 Appointed on: 09/06/00 Appointed by: Bank of Scotland Type: Administrative Receivers: Antony R Fanshawe IPno: 5944, Stephen J Adshead 8574 Firm Name: Fanshawe Lofts Address: 41 Castle Way City Postcode: Southampton SO14 2BW 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., Trenton, NJ, and Beard Group, Inc., Washington, DC. Peter A. Chapman and Sharon Cuarto, Editors. Copyright 2000. 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 $575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are $25 each. For subscription information, contact Christopher Beard at 301/951-6400. * * * End of Transmission * * *