/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/000727.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 Thursday, July 27, 2000, Vol. 1, No. 57 Headlines C Z E C H R E P U B L I C KONSOLIDACNI BANKA(KoB): Finance Minister Considers Privatization E S T O N I A OPTIVA BANK: Sampo Makes Buyout Offer on Remaining Shares G E R M A N Y COMMERZBANK : Talks Hit Difficulties I T A L Y TELEMONTECARLO (TMC): Telecom Italia to Acquire Broadcaster N E T H E R L A N D S BAAN: Investor Group Holds Back Partial Stakes MILLER FREEMAN EUROPE: Reed Elsevier Buys 585 million euros R U S S I A LENENERGO: LAES Sues Lenenergo for Delayed Payments of Debts PETERSBURG LMZ: Chief Ousted Amid Share Feud KLUCHEVSK: To Sell 15% Stake in Ferroalloy Plant NORILSK NICKEL: Auction Sale off 25% Stake U N I T E D K I N G D O M A & A LTD: Notice of creditors meeting A J COXHEAD AUTOMOBILE REST: Notice of creditors meeting AERTEC TECHNOLOGIES LTD: Notice of creditors meeting ASSURED QUALITY LTD: Notice of creditors meeting BLUE SKY BRANDS LTD: Notice of creditors meeting BOB ENGINEERING LTD: Notice of creditors meeting BOWERS ENGINEERING LTD: Notice of creditors meeting CADI STAT LTD: Notice of creditors meeting CIVIC DEVELOP TRUST: Notice of creditors meeting CREAM (UK) LTD: Notice of creditors meeting FRITIDERS UK LTD: Notice of creditors meeting JEFFERSON & MCKIRLEY LTD: Notice of creditors meeting LCS ENGINEERING SERVICES LTD: Notice of creditors meeting LLANWERN : Awaits Axe Welsh Steelworkers ML LABORATORIES: Reports ?4.1 Million Interim Loss PIERCELITE LTD: Notice of creditors meeting PROCAD 3D LTD: Notice of creditors meeting REGAL PRODUCTS LTD: Notice of creditors meeting SELBY LTD: Notice of creditors meeting STAGECOACH: Director of Troubled Bus Rail Operator is Suspended STAGBURY LTD: Notice of creditors meeting STOREHOUSE PLC: Downgraded To 'BB/B' Removed From Rating TARGET GAMES (UK) LTD: Notice of creditors meeting UNITED NEWS & MEDIA : Sell- Offs Continue WESTROPE EUROFREIGHT LTD: Notice of creditors meeting WOLSTENHOME RINK: Rutland Trust Pays ?48m For Pigments Firm YORKSHIRE WATER: Faces Bondholder Pressure YORKSHIRE WATER: Kelda Sell-off Plan YORKSHIRE WATER: Water Regulator Ofwat Opposes Sale YORKSHIRE WATER: Kelda Withdraws Mutual Plan YORKSHIRE WATER: Moody's May Still Cut Kelda Group Ratings =========================== C Z E C H R E P U B L I C ============================ KONSOLIDACNI BANKA(KoB): Finance Minister Considers Privatization --------------------------------- HN & CTK July 25,2000 Konsolidacni banka (KoB), which should become a non-banking institution as of next year, is a subject of the privatisation plans of the Czech Finance Minister, Pavel Mertlik, the daily Hospodarske noviny (HN) writes today. "I can imagine that after a major part of claims is sold, written off or recovered through a court, there will be an interest in such a company," the daily quotes Mertlik as saying. Mertlik added that in view of the reduced scope of operation of Konsolidacni banka's successor, Ceska konsolidacni agentura, there will be no point for the state to look after the agency. Ceska konsolidacni agentura will be established as successor to KoB next year through its merger with the agencies Ceska financni and Ceska inkasni. The date of Konsolidacni banka's winding-up should be part of the Act on Ceska konsolidacni agentura. It is hard to estimate when the planned privatisation of KoB might take place, HN writes. "It will depend on many factors, for example on the form of the selected privatisation," KoB's CEO Kamil Ziegler told the daily. Ziegler considers privatisation of the agency a good solution and expects many quality bidders will appear, HN writes. Mertlik plans to sell through Ceska konsolidacni agentura bad loans, preferably whole blocks of them, to various specialists, which will hopefully make their recovering easier. However, the winding down of the agency must be well managed, HN writes, pointing at Mertlik's warning against oversimplification of the problem. ============= E S T O N I A ============= OPTIVA BANK: Sampo Makes Buyout Offer on Remaining Shares ------------------------------------------------ BSN July 25,2000 Sampo Finance Ltd on Monday made a buyout offer to minority shareholders of Estonia's Optiva Bank at 7.80 kroons (46 U.S. cents) per share, valid until August 25. Sampo wishes to buy all of the remaining 7,776,895 shares in Optiva Bank which make up a holding of 18.9 percent in the bank. Sampo Finance has offered to pay the transaction fees for shareholders who own less than 50 shares in Optiva. The offer prospectus is available at the head office of Sampo Eesti Kindlustus (Sampo Estonia Insurance) in Tallinn and on the Internet homepage of the Tallinn stock exchange. The deadline of submitting transaction orders is at 5 p.m. on Aug. 25. The offer is managed by Hansabank Markets. After the end of the offer, Sampo Finance intends to seek delisting of Optiva's shares on the Tallinn bourse. Sampo Finance Ltd acquired a 81.1 percent holding in Optiva Bank last week by buying the stakes held in the bank by the Bank of Estonia, Eesti Uhispank and NG Investeeringud (NG Investments). Sampo Finance paid the Bank of Estonia 214.36 million kroons for its 57.9 percent holding or an average of 8.98 kroons per share. It paid a total of 74.9 million kroons for Eesti Uhispank's 18.18 percent and NG Investeeringud's 4.5 percent holding in Optiva Bank, or 7.79 kroons a share. ============= G E R M A N Y ============= COMMERZBANK : Talks Hit Difficulties -------------------- REUTERS July 26,2000 LONDON (Reuters) - Talks between Dresdner Bank and Commerzbank AG has run into difficulties following renewed divisions over the share swap ratio for their planned merger to form Germany's second largest bank, the Financial Times reported on Wednesday. Relations were said to have cooled following a meeting in Munich involving the two banks' chairmen and Henning Schulte-Noelle, chairman of Allianz, the insurer that is Dresdner's biggest shareholder, the paper said in a report on its Web site. None of the three companies was prepared to comment on market rumours that the talks had reached breaking point, the FT said. It quoted sources close to the insurer as saying the talks had been realistic, had made progress and would go on. Dresdner chairman Bernd Fahrholz said on Tuesday he would make a statement by the end of July. Fahrholz was understood to have demanded 60 percent of the merged entity, with the backing of Allianz, the paper said. It said such a split would reflect the relative share positions of the two banks for much of last year, and was close to the "fair values" analysts put on the two banks' shares. The ratio for the share swap has been a persistent problem through the negotiations. ========= I T A L Y ========= TELEMONTECARLO (TMC): Telecom Italia to Acquire Broadcaster -------------------------- Reuters July 23, 2000 Telecom Italia on Sunday confirmed that its future Internet partner Seat Pagine Gialle was in talks with media tycoon Vittorio Cecchi Gori to buy Italy's third largest TV broadcaster. Italy's largest telecoms group said in a statement the talks with loss-making Telemontecarlo (TMC) were at an early stage and it was too early to predict when they would be completed. The talks are effectively taking place on behalf of Seat-Tin.it, an Internet giant due to be created through a planned merger between Seat and Telecom's web access unit Tin.it. Telecom Italia said the TMC deal would fit in with the strategy for the future group. Telecom Italia will ultimately control the new group and so is directly affected by the talks. Word of Seat's interest in TMC first leaked out on Thursday and industry sources said on Friday negotiations were going ahead at full throttle. The talks concern TMC and its sister channel TMC2. The channels are estimated to have lost some 500 billion lire ($250 mln) in the last four years, newspapers reported. The talks have already drawn fire from conservative opposition leader Silvio Berlsuconi, whose political allies complained on Sunday it would flout a rule preventing the holder of a state telecoms concession bidding for private television channels. Berlusconi indirectly controls three national TV stations operated by Mediaset, which is the main rival to state broadcaster RAI. Italian newspapers reported at the weekend that members of the centre-left government were broadly sympathetic to the idea of reinforcing Italy's third tv network in a new multimedia group. Telecom Italia said that any deal to buy TMC would "fully respect" all Italians laws. The weekend political spat mirrored an increasingly fierce dispute over Berlusconi's ability to juggle media interests with aspirations of power. Berlusconi, a former prime minister, is a favourite to win elections due next year and the head of the main left-wing coalition party, Walter Veltroni, has infuriated Berlusconi supporters by calling for a law that would effectively ban him from taking office. Telecom Italia meanwhile appeared confident it would get anti- trust approval for the Seat-Tin.it merger at regulatory meetings on July 27 and 28. Italy's competition watchdog is expected to order Seat to give up its monopoly on producing Italy's "white pages" phone directory nine years early in 2003 to allow the merger to go ahead. Uniting the assets of Seat and Tin.it, Italy's largest Internet service provider, would -- if the merger is approved -- create a multi-media giant worth over 40 billion euros. But while potentially creating Europe's largest integrated web operation, the Seat-Tin.it plan has been criticised for lacking jazzy enough content and its future owners have been out looking for ways of increasing its multimedia appeal. Telecom Italia already operates in TV through a 50 percent stake in pay-TV digital broadcaster Stream, but TMC would be the first foray by an Italian telecoms firm into terrestrial TV. ===================== N E T H E R L A N D S ===================== BAAN: Investor Group Holds Back Partial Stakes --------------------------- REUTERS July 25,2000 An investor group claiming to own 19.6 percent in troubled Dutch software company Baan Co. said it was holding back part of its stake even as a second deadline set by its bidder, Britain's Invensys expired on Tuesday. The group of 22 investors, represented by Ernst Sonneveldt, agreed to tender 60 percent of its holding after negotiations with Invensys and Baan, Sonneveldt told Reuters. Invensys is expected announce on Wednesday morning how much backing it had received for its 762 million euro ($716.8 million) agreed bid for the company which could go bankrupt without a suitor or fresh injection of funds. Sonneveldt also said that it has sought a four-week extension of the current deadline before his group agreed to hand over control of its balance 40 percent holding. The holdout group has been a thorn in the side of Invensys, which said it would only go through with its 2.85 euro per share bid if 95 percent of the shares were tendered. The group wants to keep Baan listed on the Amsterdam bourse so that if Invensys manages to turn the company around, their shares will eventually be more valuable. Sonneveldt continues to refuse to name the shareholders in his group. After widespread shareholder opposition to the offer, Invensys was forced to extend its original deadline of July 14 to July 25. As of July 14, it controlled only 58 percent of shares. Baan, which once rivalled Europe's leading maker of business- management software SAP , released preliminary second-quarter results last week. It painted a dire picture of its financial condition in order to pressure shareholders to tender their stakes to Invesys. Baan put itself on the market following seven consecutive quarters of losses and the departure of senior management charged with turning around the company. Baan shares closed at 2.65 euros on Tuesday, up 3.92 percent. The shares hit a low of 1.15 euros on May 23 prior to the announcement of the Invensys bid. Baan shares had traded at around 48 euro levels during 1998. MILLER FREEMAN EUROPE: Reed Elsevier Buys 585 million euros ----------------------------- REUTERS & YAHOO July 25,2000 AMSTERDAM (Reuters) - Anglo-Dutch publisher Reed Elsevier said on Tuesday it would become the world's largest exhibition organiser after paying 585 million euros (363 million pounds) to buy Miller Freeman Europe. The sale by United News & Media completes the substantial divestment programme by United first announced in November 1999, United said in a separate statement. Last week, Dutch publisher VNU bought Miller Freeman's U.S. business for $650 million in cash. The widely anticipated sale of Miller Freeman was part of United's attempt to streamline its portfolio so it could merge with Carlton Communications, but that merger fell through last week. Following the collapse of that merger, United has effectively put itself up for sale. With Tuesday's deal, Reed gains the organisation of more than 100 shows and 66 related Web site which will be integrated into unit Reed Exhibition Companies. Miller Freeman Europe reported 1999 revenues of 179 million euros and profits before interest and tax of 46 million. Reed Exhibition Companies had 1999 revenues of 458 million euros. "The acquisition is expected to be accretive to earnings before goodwill and intangible asset amortisation in the first full year of ownership," Reed Elsevier said in a statement. The buy will be funded from Reed Elsevier's cash resources, it added. =========== R U S S I A =========== LENENERGO: LAES Sues Lenenergo for Delayed Payments of Debts ----------------------------- The St. Petersburg Times & RBC July 25, 2000 LAES, the city's nuclear power plant, is taking the city's main electricity provider, Lenenergo, to an arbitration court demanding they pay their debts, a spokesman at the plant said Monday. While the total sum in question remains undisclosed, it was stated that payments have regularly been delayed and that without additional funding, the atomic station will not be able to prepare for the increased demands of energy that come as fall and winter draw upon the northern capital. PETERSBURG LMZ: Chief Ousted Amid Share Feud ---------------------------------- The Moscow Times July 26, 2000 The conflict for control over the nation's leading manufacturer of turbines for electrical power stations, St. Petersburg's LMZ metal plant, has resulted in the ousting of the plant's general manager, Yevgeny Gulyayev. He was appointed by oligarch Vladimir Potanin's Interros Group, which is in a feud over the plant with the Energomash engineering holding. The Federal Bankruptcy Service revoked Gulyayev's license to direct the company Friday, leaving one of the biggest industrial concerns in St. Petersburg without a legally entitled director. Eight months ago, while LMZ was under external management, it decided to create an extra share emission. As a result, 51 percent of the company's stock ended up in the hands of Interros structures. The stake held by Energomash, the former majority shareholder, was reduced from 32 percent to 15 percent, according to Vedomosti. "That emission was appealed by Energomash in the Moscow regional arbitration court," said Viktoria Vergelskaya, press secretary at LMZ's engineering branch. "In June, the court decided that the emission was legal." The bankruptcy service's regulatory commission subsequently suspended Gulyayev's license due to what a Kommersant newspaper report described as a violation of securities legislation. "This is a very old conflict," said Lev Sovulkin, senior analyst at the Leontyev Center for Social and Economic Policy in St. Petersburg. "Both companies are ready to use all possible methods to gain control over LMZ. At the start of the conflict, Energomash fired the plant's board of directors. In November 1998, LMZ was hit with a suit over its debts by a minor creditor, probably as an attempt by one of the sides to use a bankruptcy situation to influence the outcome. "Now the main action in the struggle is taking place in the sphere of stock trading," Sovulkin said. "I don't think that the conflict will be resolved any time soon." The bankruptcy service's decision came into force Monday. However, at a Friday news conference, Gulyayev said he would keep his place at the plant. Vergelskaya said Gulyayev will defend his position in an appeal as soon as he receives official notification of the revoking of his license. The legitimacy of Gulyayev's position at LMZ is in doubt. The regulatory commission ruled that LMZ was an object of social importance - meaning that the government considers the company vital to the national economy. Such companies are subject to greater governmental regulation. Accordingly, the charges against Gulyayev for security violations led the bankruptcy service to claim the right to suspend his license. But Gulyayev said the company's special status shouldn't have been an issue. "We offered to avoid the conflict by giving up this status," he said. "Especially since LMZ doesn't really fall within the guidelines. "The bankruptcy service's actions were a blatant violation of the regulations," Vedomosti reported Gulyayev as saying. "And the attitude of the regulatory commission in this matter shows that the bankruptcy service is seriously prejudiced in favor of Energomash."With the revoking of Gulyayev's license, the recent emission of LMZ stock will come under scrutiny as well. KLUCHEVSK: To Sell 15% Stake in Ferroalloy Plant --------------- SKRIN "Issuer"July 25, 2000 Sverdlovsk Property Fund will action off a 15% stake in Kluchevsk ferroalloy plant on August 11, 2000. The plant is engaged in ferroalloy production. A block of 20,831,200 common shares is put on sale. The starting price of the stake is RUR 17,242,200. Bidders are to pay RUR 3,448,440 as a deposit. Applications are accepted till August 7. NORILSK NICKEL: Auction Sale off 25% Stake -------------------- SKRIN "Issuer"July 25, 2000 Altai Property Fund will hold an auction on sale of a 25% stake in Norilsk Nickel. 476,976 common shares are put on sale. Norilsk Nickel charter capital amounts to RUR 47249968.5. The share par value is RUR 0.25. The starting price is RUR 230 per share. Short-term account payable amounted to RUR 1,160,879,000 as of April 1. =========================== U N I T E D K I N G D O M =========================== A & A LTD: Notice of creditors meeting --------------------- Company Name: A & A Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.30 am Meeting date: 04/07/00 Meeting address: 93 Queen Street Meeting City Code: SheffieldS1 1WF Authorised by: M AxonDirector08/06/00 Liquidators: Firm Name: Poppleton & Appleby Address: 93 Queen StreetSheffieldS1 1WF A J COXHEAD AUTOMOBILE REST: Notice of creditors meeting --------------------- Company Name:A J Coxhead Automobile Rest (1996) Ltd IA 1986 Section:98 Creditors Meeting Time: 10.30 am Meeting date: 04/07/00 Meeting address: MWB Business Exchange77 Oxford Street Meeting City Code: LondonW1R 1RB Authorised by: A J CoxheadDirector19/06/00 Last day for proxy: 03/07/00 Proxy address: Omega COurt368 Cemetery RoadSheffieldS11 8FT Liquidators: Adrian Graham Firm Name: Hamiltons Address: Omega Court368 Cemetery RoadSheffieldS11 8FT AERTEC TECHNOLOGIES LTD: Notice of creditors meeting --------------------- Company Name:Aertec Technologies Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.00 am Meeting date: 04/07/00 Meeting address:2-3 Pavilion Buildings Meeting City Code:BrightonBN1 1EE Authorised by:A KempDirector12/06/00 Liquidators: Firm Name: Begbies Traynor Address: 2-3 Pavilion BuildingsBrightonBN1 1EE ASSURED QUALITY LTD: Notice of creditors meeting --------------------- Company Name: Assured Quality Ltd Other name: Millers Mobility IA 1986 Section: 98 Creditors Meeting Time: 11.30 am Meeting date: 04/07/00 Meeting address: Empire House8-10 Piccadilly Meeting City Code: BradfordBD1 3LW Authorised by: S E FisherDirector14/06/00 Liquidators: Leonard Harris Firm Name: Leonard Harris Partnership Address: 75 Mosley StreetManchesterM2 3HR BLUE SKY BRANDS LTD: Notice of creditors meeting --------------------- Company Name: Blue Sky Brands Ltd Other name: Mens Quest IA 1986 Section: 98 Creditors Meeting Time: 12.00 pm Meeting date: 04/07/00 Meeting address: 6 Coldbath Square Meeting City Code: LondonEC1R 5HL Authorised by: A Kennedy16/06/00 Last day for proxy: Proxy address: Liquidators: Geoffrey Pollard Firm Name: Geoffrey Pollard & Co Address: 5 Coldbath SquareLondonEC1R 5HL BOB ENGINEERING LTD: Notice of creditors meeting --------------------- Company Name: Bob Engineering Ltd IA 1986 Section: 138 Creditors Meeting Time: 02.00 pm Meeting date: 04/07/00 Meeting address: George House50 George Square Meeting City Code: GlasgowG2 1RR Authorised by: T M BurtonInterim Liquidator12/06/00 Last day for proxy: 03/07/00 Proxy address: George House50 George SquareGlasgowG2 1RR Liquidators: Firm Name: Ernst & Young Address: George House50 George SquareGlasgowG2 1RR BOWERS ENGINEERING LTD: Notice of creditors meeting --------------------- Company Name: Bowers Engineering Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.30 am Meeting date: 04/07/00 Meeting address: Swallow Hotel Meeting City Code: South Normanton Authorised by: D M RueDirector09/06/00 Last day for proxy: 03/07/00 Proxy address: 56 High PavementNottinghamNG1 1HX Liquidators: Tyrone Courtman Firm Name: Cooper-Parry Address: 56 High PavementNottinghamNG1 1HX CADI STAT LTD: Notice of creditors meeting --------------------- Company Name: Cadi Stat Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.35 am Meeting date: 04/07/00 Meeting address: 12 St Pauls Square Meeting City Code: BirminghamB3 1RB Authorised by: C R PetersChairman15/06/00 Liquidators: Firm Name: Nottingham Watson Address: 12 St Pauls SquareBirminghamB3 1RB CIVIC DEVELOP TRUST: Notice of creditors meeting --------------------- Company Name: Civic Develop Trust (LTD by Guarantee) IA 1986 Section: 98 Creditors Meeting Time: 03.15 pm Meeting date: 04/07/00 Meeting address: 1 Riding House Street Meeting City Code: LondonW1A 3AS Authorised by: D I ToddDirector16/06/00 Last day for proxy: 03/07/00 Proxy address: Old Library Chambers21 Chipper LaneSalisburySP1 1BG Liquidators: Firm Name: Smith & Williamson Address: Old Library Chambers21 Chipper LaneSalisburySP1 1BG CREAM (UK) LTD: Notice of creditors meeting --------------------- Company Name: Cream (UK) Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.30 am Meeting date: 04/07/00 Meeting address: 44 Old Hall Street Meeting City Code: LiverpoolL3 9EB Authorised by: F McCaffreyDirector13/06/00 Liquidators: John C Moran Firm Name: Parkin S Booth & Co Address: 44 Old Hall StreetLiverpoolL3 9EB FRITIDERS UK LTD: Notice of creditors meeting --------------------- Company Name: Fritiders UK Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.30 am Meeting date: 04/07/00 Meeting address: The Swallow Hotel Meeting City Code: South NormantonDE55 2EH Authorised by: T S PearceDirector08/06/00 Last day for proxy: Proxy address: Liquidators: Firm Name: Moore Stephens Booth White Address: Beaufort House94-96 Newhall StreetBirminghamB3 1PB JEFFERSON & MCKIRLEY LTD: Notice of creditors meeting --------------------- Company Name: Jefferson & McKirley Ltd IA 1986 Section: 98 Creditors Meeting Time: 12.00 pm Meeting date: 04/07/00 Meeting address: Crown House217 Higher Hillgate Meeting City Code: StockportSK1 3RB Authorised by: T JeffersonDirector23/06/00 Last day for proxy: 03/07/00 Proxy address: Crown House217 Higher HillgateStockportSK1 3RB Liquidators: Firm Name: Simmonds & Co Address: Crown House217 Higher HillgateStockportSK1 3RB LCS ENGINEERING SERVICES LTD: Notice of creditors meeting --------------------- Company Name: LCS Engineering Services Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.30 am Meeting date: 04/07/00 Meeting address: Aspect Court4 Temple Row Meeting City Code: BirminghamB2 5HG Authorised by: S ElliottDirector15/06/00 Liquidators: Firm Name: HKM Harlow Khandhia Mistry Address: Aspect Court4 Temple RowBirminghamB2 5HG LLANWERN : Awaits Axe Welsh Steelworkers ------------------------ News Unlimited July 22, 2000 The axe has been hanging over steelworkers' heads for some time, but confirmation of a fresh round of cutbacks at the enormous Llanwern steelworks in south Wales was no easier to take when the blow finally landed. Workers leaving the plant after the morning shift yesterday were grim and depressed following the announcement that 450 jobs are to be lost as part of a cost-cutting drive that will result in the loss of 1,300 jobs throughout the Welsh steel industry. Adding to the bleak mood is continued uncertainty about the longer term future of Llanwern, where much hinges on a decision by the plant's owners, Corus, on whether to proceed with a multimillion-pound blast furnace investment. Llanwern, which once em ployed more than 10,000 people, has seen the loss of 1,000 jobs in recent years. The latest cuts will reduce the workforce to just 2,500 and there are some who fear this may not be the end of the slimdown. Nick Cragg, the managing director of Corus Strip Products, said the company had to reduce costs and become more efficient in order to secure a viable future. He said the cutbacks announced yesterday assumed the continuation of the existing plant configuration. ML LABORATORIES: Reports ?4.1 Million Interim Loss ---------------------- The Times July 26, 2000 Pharmaceuticals ML Laboratories made a ?4.1 million interim loss (?3.9 million loss). There is no dividend. PIERCELITE LTD: Notice of creditors meeting --------------------- Company Name: Piercelite Ltd IA 1986 Section: 98 Creditors Meeting Time: 11.00 am Meeting date: 04/07/00 Meeting address: 12 St Pauls Square Meeting City Code: BirminghamB3 1RB Authorised by: S M FishChairman15/06/00 Liquidators: Firm Name: Nottingham Watson Address: 12 St Pauls SquareBirminghamB3 1RB PROCAD 3D LTD: Notice of creditors meeting --------------------- Company Name: Procad 3D Ltd IA 1986 Section: 98 Creditors Meeting Time: 03.00 pm Meeting date: 04/07/00 Meeting address: 485 Birmingham Road Meeting City Code: BromsgroveB61 0HZ Authorised by: S R TallissDirector20/06/00 Liquidators: Firm Name: Haden Address: 485 Birmingham RoadBromsgroveB61 0HZ REGAL PRODUCTS LTD: Notice of creditors meeting --------------------- Company Name: Regal Products Ltd IA 1986 Section: 98 Creditors Meeting Time: 02.30 pm Meeting date: 04/07/00 Meeting address: 8 Baker Street Meeting City Code: LondonW1M 1DA Authorised by: M TaylorDirector13/06/00 Liquidators: D H Gilbert Firm Name: BDO Stoy Hayward Address: 8 Baker StreetLondonW1M 1DA SELBY LTD: Notice of creditors meeting --------------------- Company Name: Selby Ltd IA 1986 Section: 98 Creditors Meeting Time: 02.00 pm Meeting date: 04/07/00 Meeting address: Church Steps HouseQueensway Meeting City Code: HalesowenB63 4AB Authorised by: H Watts01/06/00 Liquidators: David T Greensill Firm Name: Mayfields Address: Church Steps HouseQueenswayHalesowenB63 4AB STAGECOACH: Director of Troubled Bus Rail Operator is Suspended ---------------------- NewsNow & CitywireJuly 25, 2000 Troubled bus and rail operator Stagecoach says executive director Barry Hinkley has been suspended indefinitely from his executive duties with immediate effect. The company gave no further details of the suspension and Citywire has as yet been unable to contact a representative from the company. The shares were down 1p at 73p. STAGBURY LTD: Notice of creditors meeting --------------------- Company Name: Stagbury Ltd IA 1986 Section: 98 Creditors Meeting Time: 12.00 pm Meeting date: 04/07/00 Meeting address: 8 Baltic Street East Meeting City Code: LondonEC1Y 0UP Authorised by: L P CurtisDirector19/06/00 Liquidators: Firm Name: Silver Altman Address: 8 Baltic Street EastLondonEC1Y 0UP STOREHOUSE PLC: Downgraded To 'BB/B' Removed From Rating ---------------------- Fitch IBCA July 25, 2000 Fitch-London-25 July 2000: Fitch, the international rating agency, has downgraded the Senior Unsecured rating of Storehouse plc, owner of Mothercare, the UK mother and baby goods retailer, to 'BB' from 'BBB'. The Short-term rating is also downgraded, to 'B' from 'F2'. Both ratings are removed from Rating Watch Negative, although the ratings outlook remains negative. Separately, Storehouse plc has announced that it is changing its name to Mothercare plc. This rating action follows results for the year to 1 April 2000 that saw continued trading weakness at Mothercare during a period characterised by intense margin pressure and competition among retailers for market share. The results also showed the effects of a major restructuring programme initiated during the year, as part of which more than 80 Mothercare high street stores (or some 30% of the store network) were closed. The revised ratings also reflect the loss of scale that has followed the May 2000 disposal of Bhs. Despite eliminating net debt of some GBP69 million and returning some GBP100mln to shareholders in order to provide net cash of around GBP50mln with which to finance recovery at Mothercare, the sale of Bhs reduces consolidated sales by over 60%, and pre-exceptional EBITDA by over 75%, on a pro forma basis. In 1999/00 (1998/99), Mothercare reported pre-exceptional trading profit of GBP0.4mln (GBP17.9mln) on turnover of GBP444mln (GBP472mln). If losses from the under-performing stores closed during the year are excluded, pre-exceptional trading profit fell to GBP5.7mln. At the recent Annual General Meeting of Storehouse, when the change of name to Mothercare was approved by shareholders, the company reported like-for-like sales up by 0.7% in the first 15 weeks of 2000/01 and an increase of some 2.2% in gross margin. Although the gross margin improvement is welcome news, the relative lack of upward movement in like-for-like sales, while partly explained by heavy prior year discounting, is somewhat disappointing. In the context of enduring competitive pressure from other, more powerful, retailers (such as Asda Group, Boots the Chemists, Tesco and The Gap), Fitch remains cautious about the prospects for significant near-term recovery in Mothercare's trading performance. Accordingly, the outlook for ratings at their new level remains negative. TARGET GAMES (UK) LTD: Notice of creditors meeting --------------------- Company Name: Target Games (UK) Ltd IA 1986 Section: 138 Creditors Meeting Time: 12.00 pm Meeting date: 04/07/00 Meeting address: 6 Wemyss Place Meeting City Code: EdinburghEH3 6DH Authorised by: Ian D StevensonInterim Liquidator05/06/00 Last day for proxy: 03/07/00 Proxy address: 6 Wemyss PlceEdinburghEH3 6DH Liquidators: Firm Name: Stevenson Associates Address: 6 Wemyss PlceEdinburghEH3 6DH UNITED NEWS & MEDIA : Sell- Offs Continue -------------------------- NEWS NOW July 26,2000 UNITED News & Media's disposal programme continued yesterday when the company sold the continental European business of its Miller Freeman subsidiary to Reed Elsevier for ?360 million. The sale brings to ?1.34 billion the total raised in recent months from the sale of "non-core assets".The sales have included part of Miller Freeman's US trade show and publications division, UAP, United's US consumer publishing business and VCG, the professional images group. United emphasised that the disposals had been planned and had nothing to do with last week's decision to call off the intended merger with Carlton Communications. The deal fell apart because Stephen Byers, the Trade Secretary, ruled that it could proceed only if United sold Meridian Television, the company's main ITV franchise. Granada is now expected to launch a bid for United's television interests, if not the entire United group. Another serious contender is RTL Group, which combines the television interests of Berlelsmann, Audiofino and the Pearson Group. RTL lists on the London Stock Exchange today. The opening share price is likely to value it at ?17.6 billion, at least ?3 billion more than expected. WESTROPE EUROFREIGHT LTD: Notice of creditors meeting --------------------- Company Name: Westrope Eurofreight Ltd IA 1986 Section: 98 Creditors Meeting Time: 10.15 am Meeting date: 04/07/00 Meeting address: The Pearl Continental Hotel116 Thorpe Road Meeting City Code: Norwich Authorised by: S WestropeDirector Last day for proxy: 03/07/00 Proxy address: Cedar House105 Carrow RoadNorwichNR1 1HP Liquidators: Firm Name: Pannell Kerr Forster Address: Cedar House105 Carrow RoadNorwichNR1 1HP WOLSTENHOME RINK: Rutland Trust Pays ?48m For Pigments Firm --------------------------- NEWS NOW July 26,2000 RUTLAND Trust yesterday made its first acquisition since setting up a ?200m fund to buy underperforming companies when it paid ?48.7m cash for Wolstenhome Rink, the pigments maker and printing supplies group. The agreed deal, which was struck at 600p a share, has been accepted by 49.5pc of the group's shareholders. This includes the trusts of the founding Wolstenhome and Rink families, who together own about 14pc of the shares, and Schroders and M&G, its two biggest institutional investors. Wolstenhome Rink, which made underlying operating profits of ?8.6m last year on ?91.8m sales had a profits warning in May because of its printing supplies business, sending the shares to a five year low of 375p. Earlier this month it revealed it had received a bid approach and yesterday the shares closed 45 higher at 595p. Michael Langdon, Rutland's chairman, said he planned to retain the existing operational management and split the company's two businesses. Paul Rink, the current chief executive, will run pigments and David Coltart, supplies. Mr Langdon said: "This is not a hospital case, but a corporate recovery situation where we can add substantial value by sorting the businesses out and developing them strategically." Rutland's shares rose 0.25 to 43.25p YORKSHIRE WATER: Faces Bondholder Pressure ------------------------------ Financial times July 16,2000 Holders of bonds in Kelda, the company that runs Yorkshire Water, are demanding voting rights in return for their agreement to back the company's restructuring plans. Kelda, owner of Yorkshire Water, may have to grant the voting rights to bondholders to gain support for its plans to separate into two. Granting the rights would be a milestone in the trend for bondholders to seek more control over companies. Kelda plans to sell its physical assets to a non-profit-making mutual company, which will be 100 per cent debt financed. The other part will operate to maximise profits for shareholders. "These new mutual style companies could still be taken over," said Stephen Wilson-Smith, director of fixed income research at M&G, the fund management arm of Prudential. "Unless bondholders had clear voting rights, there would be no meaningful reduction of risk for them." M&G is one of the largest investors in the sterling bond market. Kelda's restructuring plan follows sharp falls in UK water shares as growth prospects have been squeezed by regulatory price cuts. This has choked equity funding for the regulated water business. Bondholders have invested more than ?5bn ($7.5bn) in the sector since privatisation, but the value of the debt has fallen as more debt has been taken on by companies to restructure or make acquisitions. Obtaining bond market support is essential for Kelda and other UK water utilities, some of which could adopt the mutual structure if it is approved by Ofwat, the water industry regulator. Debt is expected to be the main source of funding for the ?15bn needed by the industry in the next five years, but bond buyers need incentives to continue to invest. There is virtually no instance of bondholders having a direct say in a company's ownership decisions, although it is common for equity investors. Covenants on bonds more often provide compensation in case of a change in ownership, or impose financial requirements. "The structure will have quite a lot of protection in the form of financial covenants and other restrictions," said Richard Holliday, director at Barclays Capital, which is advising Kelda on the restructure. Kelda and its bankers are meeting bondholders to ensure the package is acceptable. YORKSHIRE WATER: Kelda Sell-off Plan ------------------------- Yahoo July 19,2000 Plans to sell Yorkshire Water assets to a new-style mutual company are "primarily concerned with creating shareholder value" and offer nothing to the environment, Sir John Harman, Environment Agency chairman, warned yesterday. The agency has expressed its concerns in reply to a consultation paper, issued by Sir Ian Byatt, the water industry regulator, on proposals by Kelda, Yorkshire Water's owner. Sir Ian, who also has expressed serious reservations about the plan, is due on Tuesday to report his initial conclusions from the consultation exercise. Kelda proposes to sell the physical assets of the water company for about ?2.4bn to the mutual, which would be financed entirely from borrowings and would be legally owned by Yorkshire's customers. The sale would release about ?1bn to be distributed to shareholders of Kelda, which initially would continue to manage and operate water services under contract to the mutual. Contracts would be opened to competitive bidding after 3-5 years. The Environment Agency chairman said yesterday: "Kelda's proposal offers nothing for the environment. Indeed it could actually increase environmental risk. "The public needs to be confident that if Kelda - and potentially other water companies - go down the mutualisation route that this will not lead to any deterioration in environmental standards." Hyder, the struggling Welsh water and electricity group, said this week it was considering a similar scheme for its water interests. The agency, established by the government in 1996 to police environmental controls, said the mutual and contracted operating company would need to allocate clearly responsibilities for environmental damage. It said: "Confusion could arise unless it is clear who is responsible for asset failure. Such confusion would greatly hinder the mounting of prosecutions." The agency said it would need to be reassured that the mutual had sufficient operating capital to carry out its obligations and that contracted operators were technically competent. It said contracts should not be too short as "frequent changes or abrupt handover periods will lead to heightened environmental risk". The board of the mutual should contain directors "with environmental interests and an executive director with explicit environmental responsibilities". Kelda, in its evidence to the water industry regulator, which was published yesterday, said its proposals would reduce costs by using debt rather than equity to finance investment. The lower cost of capital would provide greater room to lower prices and improve services. * Water companies reduced leakage by 7 per cent last year in line with targets set by the water regulator, Sir Ian reported yesterday. Only two companies, South East Water and Dee Valley, failed to meet targets. Thames Water was asked "to improve its leakage performance and address the poor quality of its leakage data". YORKSHIRE WATER: Water Regulator Ofwat Opposes Sale ------------------------------ Yahoo July 25 2000 Ofwat, the UK water regulator on Tuesday ruled out plans by Kelda, the regional utility that owns Yorkshire Water, to sell its assets to a mutual company owned by its customers. Sir Ian Byatt, director general of Ofwat, said the current equity-based system of running water companies had worked well and that the plans could not proceed in their present form. Kelda immediately withdrew its proposal but said it would continue to seek a way of restructuring that was acceptable to Ofwat. In early trading Kelda's shares were down 15p or 4.7 per cent to 303p. The mutualisation plans came in response to tough regulatory price caps imposed in April that will cut the average household water bill in the UK by 12.3 per cent this year. Kelda argued that the proposals would allow the assets to be financed more efficiently and would free it to become an operating company that could bid for work anywhere in the UK or overseas. Most of the other large water companies were understood to be considering similar proposals after seeing their share prices dive over the last 12 months. Sir Ian said that while shareholder-owned companies had delivered savings to customers, a programme of environmental improvements and investment in infrastructure, the benefits of a mutual were yet to be demonstrated. "It is clear that shareholders would gain in the short-term from the restructuring proposed by Kelda. It is not clear that the proposals would necessarily bring any reduction in risks for the business as a whole," he said. Sir Ian added that the proposal had been rejected because Kelda had failed to properly inform and consult with its customers about the plans; had not ensured that water quality standards could be rigorously enforced; and had failed to demonstrate that there would be no continuing links between the mutual company and Kelda. "The consultation and work done so far shows that more work would need to be done on these ideas before they could be put into practice. And there can be no guarantee that the problems can all be satisfactorily solved," he said. Kelda said it continued to believe there were benefits from mutualisation but that it was withdrawing the plans for the time being. "Kelda believes that the regulator's concerns, when taken together, cannot be met by amendments to the current proposal," said John Napier, Kelda chief executive. Sir Ian has written to David Perry, chairman designate of the proposed mutual company, outlining the steps that would be needed to get the plans approved. One suggestion is that the proposal is put to a customer vote either on a one customer, one vote basis, or weighted to give larger customers more say. YORKSHIRE WATER: Kelda Withdraws Mutual Plan ------------------------------ REUTERS July 25,2000 Utility group Kelda has withdrawn its plans to mutualise Yorkshire Water after Ofwat, the UK water industry regulator, rejected the proposal. Kelda had proposed restructuring the company by setting up a mutual organisation, to be owned by customers, to run Yorkshire Water and its assets. But Sir Ian Byatt, director general of water services, said the current ownership system had worked well, had delivered savings to customers, made environmental improvements and infrastructure investment. "The gains to 1.9 million customers offered by a mutual have yet to be demonstrated," Ofwat said. YORKSHIRE WATER: Moody's May Still Cut Kelda Group Ratings ------------------------- Yahoo July 25,2000 Moody's Investors Service continues to review for possible downgrade the A2/Prime-1 ratings of Kelda Group plc and the A1 long-term rating of debt issued or guaranteed by its core operating subsidiary Yorkshire Water Services Limited ("YWSL") following today's rejection of the group's restructuring proposal by the regulator Ofwat. In a strongly-worded statement, outgoing regulator Ian Byatt said Kelda's proposals "fail to address important issues and so cannot receive regulatory approval." Our ratings action was initiated in April 2000 after Kelda announced a wide-ranging strategic review that might include returning capital to shareholders. While Kelda has withdrawn the current proposal, Moody's expects the group will continue to pursue options that would release value to shareholders while also proving acceptable to the regulator. Our continued review for downgrade anticipates that any subsequent restructuring proposal is likely to result in weaker debt protection measurements for bondholders. Any such proposal is now likely to be considered by Ian Byatt's successor Philip Fletcher. Under the proposed structure, Kelda would have sold its regulated water assets to a new financing vehicle (a Registered Community Asset Mutual or "RCAM") owned in effect by its customers rather than shareholders. The 100% debt-financed sale would take place at close to the Regulatory Asset Value of YWSL, around GBP 2.5 billion, which is effectively a premium to today's market value, with much of the difference repaid to shareholders. The regulator retains a statutory duty to ensure efficient companies can finance themselves, and must also promote customer interests. He was concerned that the implications for Kelda's customers have not been fully addressed, while the financial and other benefits been not been explored. Importantly, the regulator also questioned the possible conflict of interest that could arise if Kelda provided operating services to the RCAM which would only be put out to competitive tender after several years. A further issue, raised by the Environment Agency and Drinking Water Inspectorate, is the potential for ambiguity as to which entity is ultimately responsible for quality and safety: the asset owner or the provider of services. Resolving this concern could negate one of the apparent strengths of the original proposal, that operating risks could effectively be outsourced with little recourse to the owner of the assets. Furthermore, the regulator would expect the Board of the new asset owner to be independent of the existing licence holder. "This independence must be demonstrated before negotiations begin on the price to be paid for the assets of the regulated business and the terms of operating agreements." The price to be paid for those assets would be a key determinant in our rating assessment. Deals proposing to acquire assets at a discount to the Regulatory Asset Value, retaining funds to provide adequate levels of reserves, have far more potential to be rated in the single-A category than more highly leveraged transactions. Kelda Group plc is the holding company of a group whose main operating subsidiary is Yorkshire Water Services Limited, one of the 10 water and waste water utilities in England and Wales. Its head office is in Leeds, United Kingdom. The group announced turnover of GBP 783 million in the year ended 31 March 2000. 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 USA, and Beard Group, Inc., Washington, DC USA. Lexy Mueller, Mercy Villacastin and Cristina Pernites Editors. Copyright 2000. All rights reserved. ISSN 1529-2754. 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