/raid1/www/Hosts/bankrupt/TCREUR_Public/030317.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
Monday, March 17, 2003, Vol. 4, No. 53
Headlines
* A U S T R I A *
EMTS AUSTRIA: Termination of Contract Forces Insolvency
* D E N M A R K *
NYCO HOLDINGS: Moody's Assigns Ratings Following Acquisition
* F I N L A N D *
BENEFON OYJ: To Extend Bridge Share Issue Subscription Period
* F R A N C E *
CANAL PLUS: Restructuring to Bring Down Axe on 305 Employees
SCOR: Ratings Downgraded in View of Execution Risks in Plan
SUEZ SA: Moves to Dispel Liquidity Concerns to Buoy Shares
* G E R M A N Y *
BAYER AG: Expects Growth in Operating Result in 2003
DEUTSCHE TELEKOM: Closes Sale of Remaining TV Activities
GERLING-KONZERN: CNA Provides Information on Receivables
* I T A L Y *
TELECOM ITALIA: Moody's Places Debt Ratings on Review
* N E T H E R L A N D S *
KONINKLIJKE AHOLD: Chairman Moves to Reassure Public of Future
ROYAL KPN: Outlook Positive Due to Improving Performance
ROYAL PHILIPS: Unveils Recovery Plan for Semiconductor Division
* P O L A N D *
OCEAN COMPANY: Plans to Appeal Court's Ruling on Bankruptcy
* R U S S I A *
URAL-SIBERIAN: Long-Term Rating Raised to 'B-', Outlook Stable
* U N I T E D K I N G D O M *
AMP LIMITED: Pays Former Chief Executive AU$2.1 Million
BRITISH AIRWAYS: Reduces Supplier Base to Cut Expenditure
BRITISH SKY: Set to Lose BBC When Contract Ends in May
CORUS GROUP: Court Rejects Bid to Sell Aluminum Business
CORUS GROUP: Calls Off Planned Sale of Aluminum Business
CORUS GROUP: Dutch Unit Moves Toward Obtaining Independence
INVENSYS PLC: Bans Employees' Plan to Exit Pension Fund
LAIRD GROUP: To Close Plants, Move to Low-Cost Countries
LAURA ASHLEY: Warns of Pre-tax Loss Amounting to GBP5 Million
THISTLE HOTELS: Reit Asset Has Joined Bidding Race for Asset
* Alvarez & Marsal Launches Global Power and Utilities Group
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A U S T R I A
=============
EMTS AUSTRIA: Termination of Contract Forces Insolvency
-------------------------------------------------------
EMTS Austria GmbH, a subsidiary of EMTS Technologie AG, was
forced to file for insolvency after terminating an agreement with
Nokia Corp., from which it derives 60% of its revenue.
Revenues in EMTS Austria GmbH amounted to around EUR18.2 million
in 2002.
The filing was inevitable despite the company's return to
positive earnings in January, according to Dow Jones. The
insolvency will affect some 190 employees in the Parndorf plant
and in centers throughout Austria.
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D E N M A R K
=============
NYCO HOLDINGS: Moody's Assigns Ratings Following Acquisition
------------------------------------------------------------
Moody's Investors Service assigned to Nyco Holdings 3 ApS a B1
senior implied rating, and a B1 senior secured credit facilities
rating (for a EUR430.0 million credit facility). It also
assigned to Nyco Holdings 2 ApS a B3 unsecured issuer rating, and
a B3 senior notes rating (for its EUR225.0 million notes due
2013). The outlook for all ratings is stable.
The ratings reflect the company's highly leveraged capital
structure as a result of the acquisition of Nycomed Holdings A/S
by CSFB Private Equity, Blackstone Capital Partners and NIB
Capital Private Equity from Nordic Capital. The B1 senior
implied rating reflects financial risks from Nycomed's highly
leveraged capital structure at the start.
Moody's expects the company's absolute debt levels to grow over
the next three years as a result of plant expansion, scheduled
in-licensing payments and consolidation of Leiras, its Finnish
JV. Moody's expects this to cause Nycomed to generate negative
free cash flow over the next two years.
The action also reflects expectation that the company's future
growth will be highly dependent on in-licensing new products and
geographic expansion.
The rating also shows potential changes in regulatory policies in
the highly regulated pharmaceuticals industry.
It as well anticipates Nycomed's exposure to pricing pressures
from governments and healthcare organizations, which are anxious
to cut increasing healthcare costs.
The rating also predicts competitive threats posed by different
national and global pharmaceutical companies.
Lastly, it warns of structural issues leading to bondholder
subordination of the senior notes--used in part to fund the
acquisition--to the senior credit facilities at Nyco Holdings 3
ApS, the parent company.
The acquisition of Nycomed was funded by EUR 625 million in debt
and EUR 644.3 million of straight equity contributed from the
buyers.
On the positive side, the ratings reflect Nycomed's solid
position in the Nordic pharmaceuticals market, and its strong and
diversified product base.
It as well affirms the company's solid past performance and track
record of cash flow generation since Nordic Capital bought it in
1999.
It also acknowledges the management's experience in working with
high leverage, and the ability of business plan to withstand
negative shocks mainly because of its senior credit facilities.
Lastly it recognizes the company's relatively more conservative
strategy of targeting in-licensing rather than in-house R&D.
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F I N L A N D
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BENEFON OYJ: To Extend Bridge Share Issue Subscription Period
-------------------------------------------------------------
By virtue of the authorization resolution of the shareholders'
annual general meeting of May 17, 2002, registered in the trade
register June 18, 2002, the Board of Benefon has, by request of
the subscriber, decided to extend the subscription period for the
directed share issue resolved by the Board in March 10, 2003,
until March 21, 2003.
The company has received subscription commitment from Xpediant
LLC, the sole subscriber of the issue, for all of the 1,323,530
shares offered for subscription at a subscription price of 0.34
per share. According to the terms of the subscription commitment
and to the extended subscription period, the shares shall be
subscribed by March 21, 2003.
Salo March 13, 2003
BENEFON OYJ
Jorma Nieminen
Chairman of the Board
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F R A N C E
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CANAL PLUS: Restructuring to Bring Down Axe on 305 Employees
------------------------------------------------------------
305 jobs are ready to be cut under the restructuring plan of
Canal Plus Group, the Vivendi Universal television arm that is
saddled with EUR5 billion (US$5.5 billion) in debt.
251 of those jobs will be cut from the company's headquarters,
Canal+ SA, CanalSatellite and Canal+ Distribution. The balance of
54 posts will be cut from StudioCanal.
The unit, which suffers from annual losses of EUR325 million,
also plans to outsource 140 jobs.
The layoffs are part of a program aimed at cutting costs,
divesting non-core assets and bringing the company back to
profitability in 2003.
Earlier, a Financial Times source said: "We are in the process of
streamlining the assets."
It is understood that the company has pointed out several assets
for sale, including Expand, the group's TV production company,
Numericable, its cable network, and operations in Scandinavia and
the Benelux region.
CONTACT: VIVENDI UNIVERSAL
Headquarters
42 Avenue de Friedland
75380 Paris Cedex 08
France
Phone: +33 1 71 71 10 00
Fax: +33 1 71 71 11 79
Contact:
Investor Relations
E-mail: investor-relations@groupvu.com
Daniel Scolan, Executive VP
Investor Relations
Phone: +33.1.71.71.12.33
E-mail: daniel.scolan@groupvu.com
Laurence DANIEL
IR Director, Europe
Phone: +33.1.71.71.12.33
E-mail: laurence.daniel@groupvu.com
Edouard LASSALLE
Associate Director, Europe
E-mail: edouard.lassalle@groupvu.com
SCOR: Ratings Downgraded in View of Execution Risks in Plan
-----------------------------------------------------------
Moody's Investors Service downgraded SCOR's ratings in
expectation of significant execution challenges that the company
could face in the comprehensive implementation of its "Back on
Track" Plan.
SCOR's insurance financial strength rating was lowered to Baa2
from Baa1 and its subordinated debt to Ba2 from Ba1.
The company had earlier announced it is strengthening its risk
management, internal controls, underwriting, and corporate
governance--a process that Moody's believes could take years,
with 2003 as a transitional year. It expects SCOR to return to
profitability in 2003.
The action considered SCOR's currently high financial leverage
relative to its tangible equity. The rating agency believes that
SCOR's current debt level is significant given its estimated
capital base of EUR1.4 billion, including the proceeds of the
rights issue and minority interests.
SCOR has debts of EUR854 million as of September 30, 2002 as per
its French GAAP statements. Approximately US$100 million in
commercial paper and debt matures in less than one year, as of
September 30, 2002.
While recognizing that the maturity of SCOR's debt is long-term,
Moody's says SCOR has already fully utilized its debt capacity.
SCOR does not have any large maturities until January 2005 and
the bulk of its debt matures after 2007. Approximately EUR250
million of SCOR's debt is subordinated.
Moody's, meanwhile, confirmed SCOR's senior debt rating of Baa3
following SCOR's EUR381 million rights issue, the announcement of
its "Back on Track" Plan with measures to reduce the company's
risk profile.
The rating agency believes that the proceeds of the rights issue
will help stabilize the company's capital position in the short
term.
All ratings have a negative outlook, reflecting the possibility
that the company might need further measures to strengthen its
reserve.
The following ratings have been downgraded and assigned a
negative outlook.
SCOR- insurance financial strength rating to Baa2 from Baa1,
SCOR Canada Reinsurance Company- insurance financial strength
rating to Baa2 from Baa1.
SCOR Deutschland Reinsurance -- insurance financial strength
rating to Baa2 from Baa1
SCOR Italia Riassicurazioni S.p.A.- insurance financial strength
rating to Baa2 from Baa1,
SCOR Reinsurance Company (US)- insurance financial strength
rating to Baa2 from Baa1
SCOR UK Company- insurance financial strength rating to Baa2 from
Baa1
SCOR- Subordinated debt rating to Ba2 from Ba1.
The following rating has been confirmed and assigned a negative
outlook:
SCOR- Senior debt rating of Baa3.
SCOR based in Paris, France had total shareholders' equity of
EUR1.2 billion as of June 30, 2002 and gross written premiums of
EUR2.5 billion for the six months ended June 30, 2002.
SUEZ SA: Moves to Dispel Liquidity Concerns to Buoy Shares
----------------------------------------------------------
Waste, water and energy conglomerate Suez SA is reaffirming its
assurance that it has enough cash to meet debt payments this
year, after liquidity concerns pulled down the company's shares
to a record low last Wednesday.
Shares in the company closed down 14%, or EUR1.39, at EUR8.80 on
the Paris stock market. The drop brings its shares down more
than 45% since the start of the year.
Suez also promised to focus on reducing its EUR26 billion (US$29
billion) debt pile by selling assets, including its 37% stake in
French TV network M6-Metropole Television SA and Northumbrian
Water Ltd.
The group's chief executive, Gerard Mestrallet, initiated an
emergency restructuring plan for the company in January to cut
the company's debt and bring focus to the business.
These measures resulted in the departure of Chief Financial
Officer Francois Jaclot from the company. Now, investors are
calling for Mr. Mestrallet's departure.
The board is urging him to accelerate the asset sales to restore
the confidence of investors who no longer believe the management
will be able to execute the disposals quickly. They're skeptical
of the move since Suez failed to divest the assets when market
valuations were still significantly higher.
Suez officials didn't return calls seeking comments, according to
Dow Jones.
Suez, which has EUR46 billion in annual revenue, plans to slash
debt by over 30% by late 2004.
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G E R M A N Y
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BAYER AG: Expects Growth in Operating Result in 2003
----------------------------------------------------
2002 figures: Net income up 10 percent to 1.1 billion euros /
Sales from continuing operations 1 percent lower/ Net debt down
significantly to 8.9 billion euros/Ambitious medium-term profit
targets declared
The Bayer Group expects to see an increase in its operating
result from continuing operations in 2003. "To achieve this we
are relying mainly on the steps we have taken to improve our
earning power," the Chairman of Bayer's Board of Management,
Werner Wenning, told the spring financial news conference in
Leverkusen - although a precondition, he said, is that the
present economic situation does not radically deteriorate. He
regards the development of sales and operating result in the
first two months of 2003 as encouraging and as grounds for
cautious optimism. The Bayer CEO described 2002 as "a year of
transition." The targets set for realigning the Group were
reached. Bayer delivered on its goals and in some cases exceeded
them. "I am convinced that our realignment has given us an
excellent foundation for future success," he said. He said he was
not satisfied with the business trend in 2002. The adverse
economic environment, high one-time costs connected with the
acquisition of Aventis CropScience (ACS) and a large number of
restructuring measures all had an impact on the operating
business. Sales from continuing operations declined by 1 percent
to 29 billion euros, while the operating result before
exceptional items fell by 46 percent to 989 million euros. Net
income, on the other hand, rose 10 percent to 1.1 billion euros.
A major factor here was the proceeds from the extensive program
of divestments.
To enable the stockholders to share appropriately in this
exceptional income, the Supervisory and Management Boards are to
recommend to the Annual Stockholders' Meeting an unchanged
dividend of 0.90 euros. Based on Bayer's current share price this
represents a return of about 8 percent. "This underlines that,
even in difficult times, we maintain continuity in our dividend
policy in the interest of our stockholders," said Wenning.
Business in HealthCare was down by 12 percent to 9.4 billion
euros, and the operating result before exceptionals dropped by 21
percent to 739 million euros. Wenning said this was mainly due to
the pharmaceuticals division, which had to contend with the
effects of the withdrawal of Lipobay/Baycol and declines in sales
of the medicines Ciprobay and Adalat. Pharmaceutical sales fell
by 23 percent to 3.7 billion euros. There was also a marked
decline in the operating result pre-exceptionals. Bayer's CEO
reported that the number of lawsuits filed in connection with
Lipobay/Baycol, which was voluntarily withdrawn from the market
in summer 2001, has reached 8,400. Of these, he said, 4,600 are
virtually identical complaints filed by a single law firm which
has not provided details regarding the ailments claimed by the
plaintiffs. More than half of the approximately 600 new suits
also originate from this firm. These numbers are subject to
change and the company is providing periodic updates on its
website.
Without concession of liability, Bayer has so far have entered
settlement agreements with more than 500 individuals who
experienced serious side effects. To date, a total of
approximately 140 million euros has been paid for such
settlements. Where serious side effects are involved, Bayer is
continuing its efforts to reach out-of-court settlements on a
case-by-case basis and is currently in settlement negotiations
for several hundred further cases. Wenning reiterated that Bayer
is vigorously defending itself in all cases in which there is no
connection between Lipobay/Baycol and the health problems that
are the subject of the claims, or where a fair settlement cannot
be reached. In the event plaintiffs substantially prevail despite
existing defense arguments, it is possible that Bayer could incur
charges in excess of its insurance coverage. Due to the
considerable uncertainty associated with these proceedings, it is
currently not possible to more accurately estimate potential
liability. For this reason, provisions for any amount for which
liability might exceed insurance coverage have not presently been
made. Bayer's auditor agrees with this assessment. "We continue
to watch the situation very closely," said Wenning, "and, as the
litigation progresses, we will regularly reconsider the need to
establish provisions."
The Board Chairman also pointed out that a shareholder lawsuit
has been filed in New York against Bayer AG and against Dr.
Manfred Schneider as former Management Board Chairman and himself
as current Chairman. "We will examine the complaint and
vigorously defend ourselves," he said. Wenning said Bayer remains
firmly convinced it acted responsibly and appropriately in the
management of Lipobay/Baycol. The drug was prescribed for over
six million patients worldwide. The overwhelming majority of
these individuals took it safely and effectively, with no serious
side effects. In the courtroom Bayer is showing evidence that
Lipobay/Baycol was a safe and effective drug when taken as
directed. The company is also showing documents that prove that
it shared all pertinent safety information with the health
authorities, including the U.S. Food and Drug Administration,
beginning before Lipobay/Baycol ever went on the market and
continuing until after Lipobay/Baycol was voluntarily withdrawn
from the market. "And, most importantly, we are demonstrating
that at all times patient safety was, and is, our first and
foremost priority."
Bayer CropScience saw sales rise by 66 percent to 4.7 billion
euros through the acquisition of Aventis CropScience. "It was
especially significant that the existing Bayer business, despite
the integration process, was able to increase its share in a
market which shrank 9 percent," said Wenning. The operating
result before exceptionals was negative to the tune of minus 15
million euros, although this has to be seen against the
background of the ACS acquisition. While the acquired business
contributed 120 million euros to earnings, 536 million euros in
amortization and inventory write-downs associated with the first-
time consolidation of ACS, along with 125 million euros in
integration costs, had a negative effect.
Programs to improve efficiency show results
Bayer's industrial business was hit in 2002 by the economic
situation, exchange rate fluctuations, falling prices and
increased raw material costs. Polymer sales fell 2 percent to
10.8 billion euros, although the operating result before
exceptional items was held at 418 million euros, the same level
as the previous year. "This was an indication of the success of
our extensive programs to improve efficiency, which already
produced significant savings in 2002," said Wenning. Chemicals
saw sales fall by 12 percent to 3.3 billion euros; the operating
result before exceptionals declined by 41 percent to 160 million
euros. Account should be taken, he said, of the situation at
subsidiary H.C. Starck, which suffered especially from the slump
in the electronics industry.
Excluding H.C. Starck, the decline in the operating result for
Chemicals pre-exceptionals was only 2 percent, while sales fell 9
percent. This shows the action taken in Chemicals, too, is
bearing fruit.
Bayer's top priorities for the current year are to improve
performance and resolve strategic issues. This includes strictly
implementing the efficiency improvement programs, which will
bring planned savings of 500 million euros in 2003 alone,
streamlining the investment program, and further optimizing
current assets. It is planned to bring down net debt, which was
already reduced to 8.9 billion last year, to about 7 billion
euros by year-end.
Capitalizing on value creation and growth potentials Finally,
according to Wenning, every effort will be made to capitalize on
potentials to increase value creation and growth. The Group is
deliberately targeting markets, which promise future growth and
will continue to do so, he said. Bayer is now a leader in 80
percent of the businesses in which it operates, and "only
activities which can earn more than the capital costs in the long
term will remain in our portfolio."
As part of the corporate realignment, the Chairman said, medium-
term profit targets have been redefined. "Our targets are
ambitious, but we believe they are a realistic reflection of our
strategic scenario," he said. Assuming that overall economic
demand will pick up from 2004 at the latest and without counting
possible portfolio changes, the Group is aiming for an EBITDA
margin of 21 percent (2002: 10 percent) by 2006. In Polymers and
Chemicals the medium-term profit targets are 19 and 17 percent
EBITDA, respectively, and 29 percent for Bayer CropScience. In
HealthCare the profit target is 20 percent EBITDA. "We are very
confident we will also be able to significantly improve our
performance in the HealthCare field," said Wenning. The four
divisions - Animal Health, Biological Products, Consumer Care and
Diagnostics - are already leading players in their respective
markets today.
Bayer is currently making maximum efforts to strengthen the
earning power in Pharmaceuticals. This relates not only to the
restructuring, in which great progress has been made, but also to
the launch of new products. Wenning cited the very recent E.U.
approval for Levitra and other very promising launches such as
Cipro XR in the United States and the availability of the
hypertension drug Kinzalmono in five European countries. Bayer's
research is to be concentrated on cardiovascular drugs, products
to treat metabolic disorders, and anti-infectives. Activities and
investments in the field of cancer therapy will be continuously
expanded. With these measures, already announced at the news
conference in November 2002, Bayer has strengthened its business
in order to maximize the value of its pharmaceutical activities.
"This is an important precondition for finding a strategic
solution for our pharmaceuticals division, a process we are
energetically pursuing," said the Bayer CEO.
In his review of the financial statements for 2002, CFO Klaus
Khn highlighted the positive cash flow development and the
related reduction of net debt to 8.9 billion euros. The operating
cash flow rose by 3 percent to a little more than 3 billion
euros. A reduction of 1.4 billion euros in working capital
boosted net cash flow by 15 percent to a record 4.4 billion
euros. "We easily surpassed our target of bringing indebtedness
down to below 10 billion euros," said Khn. "Achievement of this
goal was aided by the reduction in capital expenditures,
aggressive working capital management and the proceeds of the
divestment program, which was successfully implemented despite
difficult conditions on the capital market."
Bayer is also taking a longer-term view of its financing and will
continue to pursue its sound financing policy in the future, Khn
stressed. The proceeds of divestments already agreed upon will be
used primarily to repay debt.
"Thanks to consistent reduction in debt, Bayer therefore
continues to have a very healthy balance sheet," said Khn. Total
assets rose by 4.7 billion to 41.7 billion euros. Financial
liabilities increased by a net amount of 2.8 billion euros due to
the financing of the ACS takeover. Stockholders' equity fell by
1.6 percent to 15.3 percent, mainly because of currency factors,
and equity coverage of total assets was thus 37 percent.
DEUTSCHE TELEKOM: Closes Sale of Remaining TV Activities
--------------------------------------------------------
Deutsche Telekom has completed the sale of its six remaining
cable TV regions, resulting in their transfer to the consortium
of Apax, Goldman Sachs Capital Partners and Providence Equity.
The sale, which took place today, involved a purchase price of
EUR 1.725 billion was paid in cash. The proceeds from the sale
will be used to reduce debts.
The sale concerns the cable activities that are still owned by
Deutsche Telekom in the regions of Hamburg/Schleswig-
Holstein/Mecklenburg-Western Pomerania, Lower Saxony/Bremen,
Berlin/Brandenburg, Saxony/Saxony-Anhalt/Thuringia, Rhineland-
Palatinate/Saarland and Bavaria, together with the central units
belonging to them. The consortium has taken over the cable TV
network, the existing customer relationships and the companies-
current workforce of approximately 2,500 employees.
GERLING-KONZERN: CNA Provides Information on Receivables
--------------------------------------------------------
CNA Financial Corporation announced Wednesday that as of December
31, 2002, its property and casualty insurance subsidiaries had
approximately USD600 million of reinsurance receivables due from
Gerling-Konzern Allgemeine Versicherungs AG and its property and
casualty insurance subsidiaries (collectively, the Gerling
Group).
Of this amount, all but approximately USD170 million is supported
by collateral in the form of letters of credit, trust agreements,
funds withheld balances and other payable offsets. The
uncollateralized amount is primarily due from the Gerling Group's
New York-domiciled insurance subsidiaries. CNA continues to bill
reinsured losses and collect payments from the Gerling Group in
the normal course. At December 31, 2002, CNA's GAAP equity was
USD9.4 billion.
About the Company
CNA is the country's fourth largest commercial insurance writer,
the ninth largest property and casualty company and the 51st
largest life insurance company. CNA's insurance products include
standard commercial lines, specialty lines, surety, reinsurance,
marine and other property and casualty coverages; life and
accident insurance; group long term care, disability and life
insurance; and pension products. CNA services include risk
management, information services, underwriting, risk control and
claims administration. For more information, please visit CNA at
www.cna.com. CNA is a registered service mark, trade name and
domain name of CNA Financial Corporation.
CONTACT: CNA
Dawn M. Jaffray, 312/822-7757
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I T A L Y
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TELECOM ITALIA: Moody's Places Debt Ratings on Review
-----------------------------------------------------
Moody's Investors Service continues to review Telecom Italia's
ratings following the Milan-based company's announcement of an
intention to merge with Olivetti.
The rating agency recently placed Telecom Italia's senior
unsecured Baa1 long-term debt ratings on review for possible
downgrade. The review will also cover Telecom Italia's
guaranteed subsidiaries.
According to Moody's, "The review will address the increased
financial risk for the group as a whole that will result from a
significant debt-financing requirement."
Telecom Italia earlier announced its plan to publicly tender for
cash a maximum amount of EUR9 billion for approximately 15% of
the shares of Telecom Italia in order to proceed with the merger.
The merger is expected to result to Telecom Italia's adjusted
retained cash flow to gross debt ratio to range between 16 and
20%.
Moody's took note of the management's promise to reduce this
higher debt level within the next 18 to 24 months. It said it
will also consider the potential financial pressure deriving from
the complex ownership structure above Olivetti.
The rating agency will also consider mitigating factors such as
the elimination of the dilution resulting from the dividends to
TI minorities, the large and stable operating cash flows of TI
and Telecom Italia Mobile, the potential benefits from tax
related considerations after the write-down of SPG and TI shares,
the liquidity facility to be put in place, as well as the
potential to realize cash from non-core asset disposals.
Ratings placed under review for possible downgrade are the
following:
The Baa1 long-term senior unsecured ratings on Telecom Italia
S.p.A.'s guaranteed MTNS and bank facility, Telecom Finance SA's
revolving credit facility and MTNS (former Societe Financiere
Pour Les Telecom et L'Elec's and Sogerim) guaranteed by TI and
Telecom Italia Capital S.A.'s MTNS guaranteed by TI.
The Baa2 long-term senior unsecured ratings on Olivetti S.p.A.'s
guaranteed eurobonds issued by Olivetti International SA and
Olivetti International N.V.
=====================
N E T H E R L A N D S
=====================
KONINKLIJKE AHOLD: Chairman Moves to Reassure Public of Future
--------------------------------------------------------------
Royal Ahold supervisory board chairman, Henny de Ruiter, rallied
confidence that the Dutch retailer is not heading towards
bankruptcy or takeover.
The chairman of the retailer, which saw its stock plunge
following the discovery of accounting irregularities at its U.S.
Foodservice unit, strongly denied that his company is near
collapse when he was questioned about the subject on Dutch
television, stating, "I don't believe a takeover is the only
means of rescuing Ahold."
He also dismissed the idea that Ahold could sell its Dutch
supermarket chain, Albert Heijn.
Several parties have expressed interest in acquiring the assets
of the troubled company should they be offered for sale.
Wal-Mart Stores Inc. reportedly indicated that the U.S. group is
considering the possible purchase of Ahold stores in the region.
A top executive of Tesco, which is currently expanding outside
the U.K., said Tesco is considering a GBP10 billion plan to
acquire some Ahold operations, and French retailer Carrefour, as
also reportedly expressed interest.
Casino Guichard Perrachon said it would consider looking at any
assets of the company that were for sale in countries where it is
already present. Casino co-Chief Executive Christian Couvreux
said his company has EUR4 billion in unused credit lines, which
could be used to help meet convertible bond requirements in 2003
as well as funding any acquisitions in the event of "significant
market opportunities."
ROYAL KPN: Outlook Positive Due to Improving Performance
--------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
Netherlands-based telecommunications services provider
Koninklijke KPN N.V. (KPN) to positive from stable due to the
group's continued success in deleveraging and improving
operational performance. At the same time, the 'BBB' long-term
and the 'A-2' short-term corporate credit ratings were affirmed.
"The positive outlook reflects the fact that ratings could be
raised if KPN continues to apply a material part of its free
operating cash flow to reduce net debt, and does not experience
any weakening in its competitive position or operating
performance", said Standard & Poor's credit analyst and Head of
European Telecoms, Peter Kernan.
KPN's free operating cash flow of EUR2.8 billion (operating cash
flow less capital expenditure) for 2002 was materially higher
than expected and, as a result, KPN's net debt and leverage has
fallen ahead of Standard & Poor's expectations. The group's
operational performance also improved significantly in 2002 due
to the successful implementation of a restructuring program,
which has boosted operating and capital efficiency.
KPN's strong free operating cash flow, allied with the proceeds
from asset sales, enabled the group to reduce net debt to EUR12.4
billion (about EUR14.0 billion lease-adjusted) at Dec. 31, 2002.
KPN's debt has reduced further since year-end 2002, following the
EUR500 million cash sale of the group's directories business and
given KPN's continuing generation of positive free operating cash
flow.
ROYAL PHILIPS: Unveils Recovery Plan for Semiconductor Division
---------------------------------------------------------------
Division expected to return to profitability in Q4 2003
Royal Philips Electronics outlined its action plan to return its
Semiconductor division to profitability in the fourth quarter of
this year.
The plan includes five main elements:
FOCUS: An acceleration of the sharpening of focus on Philips
Semiconductors' core portfolio of connected consumer
applications, both in terms of strategy and R&D spending, while
exiting unprofitable non-core businesses. This focus is expected
to deliver annualized savings of EUR 200 million, leading to a
EUR 240 million per quarter R&D spending rate by Q4 2003,
excluding the Mobile Display Systems business.
CAPACITY: In addition to the previously announced closure of
Philips' semiconductor fabrication operation (fab) in
Albuquerque, New Mexico, Philips plans to close its San Antonio,
Texas fab in 2003. The combined Albuquerque and San Antonio
actions will reduce overall CMOS capacity by approximately 20%,
leading to a utilization rate that is expected to deliver
positive operating results in the fourth quarter and still
include capacity for growth. The San Antonio closure will result
in restructuring charges of approximately EUR 200 million; EUR 30
million of which will be taken in Q1 2003, with EUR 70 million
and EUR 100 million taken in Q2 and Q3 respectively. Of the
anticipated EUR 200 million charges, EUR 45 million are cash
costs.
SIMPLIFICATION: Over the course of 2003, Philips Semiconductors
will complete the consolidation of a number of smaller non-
manufacturing related sites and associated businesses, mainly in
Europe and the USA.
PROCESS IMPROVEMENTS: A heightened focus on supply chain
management and reduction of working capital will be driven by the
activation of new IT systems. Customer lead times in particular
will be dramatically improved as a result, including a reduction
in end-to-end lead times from the initiation of an order to
product shipment by up to 30 days to approximately 85 days,
approaching best-in-class per external benchmarks. As well as the
increased customer intimacy, these process improvements will lead
to annual savings of approximately EUR 50 million.
DESIGN WINS: Increased revenues will be seen in the second half
of 2003 as programs related to earlier design wins take off.
Examples include NexperiaT products for the communications and
consumer markets, and other products in fast growing categories
where Philips has a unique proposition, such as CMOS cameras and
FM radio chips for mobile phones.
"With attention to swift and exact execution, we expect that
these actions will see Philips Semiconductors again making a
positive contribution to the Philips Group in the fourth quarter
of this year," said Scott McGregor, CEO of Philips
Semiconductors.
"With the ongoing softness in the industry, we still face a tough
couple of quarters before our efforts will truly show through. As
we said at the presentation of our 2002 results, we are prepared
to take the tough decisions to not only put things back on track,
but more importantly, create a healthy and sustainable profitable
business for the future. We know that parts of the plan will be
painful to the organization, and our San Antonio employees in
particular, and we will do everything we can to work together
with all involved, to minimize the impact."
The above actions will involve an overall headcount reduction of
approximately 1,600 by the end of 2003, including approximately
520 in San Antonio. Philips will work closely with employees and
local leaders to offset as far as possible the negative
consequences of the decision. Most of the San Antonio product
lines are already dual-sourced, and others will be relocated to
other Philips facilities, minimizing the impact on existing
customers.
===========
P O L A N D
===========
OCEAN COMPANY: Plans to Appeal Court's Ruling on Bankruptcy
-----------------------------------------------------------
The management of Ocean Company is planning to appeal a
bankruptcy ruling by declaring that a potential investor is
interested in buying its debts and taking it over, according to
Warsaw Business Journal.
Ocean President Szymon Jachaz said: "Annulment of the court
ruling is our only chance and that is why we will use this
option."
Sieradz's Regional Development Agency, Ocean's potential
investor, has originally expressed willingness to buy the company
prior to the court's decision. However, the creditors who were
not given proof that the Sieradz company had the necessary money
for the transaction rejected it.
Meanwhile, the receiver warns that there are problems with
selling Ocean's assets.
Receiver proxy Ryszard Cytynski said assets of the company are
"scattered across the country and are mostly industrial" adding
that current demand for them is low.
CONTACT: OCEAN COMPANY S.A.
Ul. Opoczynska
12/5 02-526
Warszawa
Phone: (022) 646-06-10
Fax: (022) 646-27-53
E-mail: ocean@ocean.pl
Homepage: http://www.ocean.pl
===========
R U S S I A
===========
URAL-SIBERIAN: Long-Term Rating Raised to 'B-', Outlook Stable
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised its
long-term counterparty credit rating on Russia-based Ural-
Siberian Bank OJSC (URALSIB) to 'B-' from 'CCC+'. At the same
time, the short-term counterparty credit rating was affirmed at
'C'. The outlook is stable.
The rating action reflects the continued dominance of the bank's
commercial position in the Republic of Bashkortostan
('B/Positive/--') and its close relationship with the regional
government, which currently owns 50% of the bank. The ratings are
constrained, however, by URALSIB's relatively high, albeit
decreasing, level of geographic concentration in loans and
deposits, weakening profitability, and the continued significant
risks inherent in the Russian economy.
"URALSIB's concentration in Bashkortostan is decreasing due to
its expansion policy, which is also widening its customer base
and increasing its potential for core revenue growth in the
future. Moreover, the bank's good business franchise and
commercial profile give it every chance of succeeding in its
expansion plans," said Standard & Poor's credit analyst Ekaterina
Trofimova.
The future direction of the ratings on URALSIB will depend on an
improvement in the regulatory and legal environment of the
Russian Federation, and the bank's success in competing with
larger peers. The bank's ability to expand its market share in
loans and deposits, to sustain profits, and the maintenance of
asset risk-management standards during expansion will also be
key.
===========================
U N I T E D K I N G D O M
===========================
AMP LIMITED: Pays Former Chief Executive AU$2.1 Million
-------------------------------------------------------
AMP has paid former Chief Executive Officer Paul Bachelor AU$2.1
million as compensation for his termination in September 2002.
Chairman Peter Wilcox said AMP had delivered the former CEO a
check for AU$1.4 million, which is net of US$0.7 million after
tax. The gross figure is equivalent to approximately 18 months'
base salary.
Mr. Wilcox said the cessation payment had been made in an attempt
to bring the matter to a close.
"Despite protracted discussions and negotiations, Mr. Batchelor
and AMP have failed to reach an agreed settlement," he said.
"We belive this payment is fair and reasonable and it has been
made in the interests of resolving the matter.
"If he believes he is entitled to any additional payments, he is
free to take legal action."
Mr. Wilcox said that the Board had considered making Mr.
Batchelor no payment. However in view of the legal issues
involved, a US$2.1 million was considered an appropriate
reflection of his legal entitlements.
"We believe this is an adequate payment in the circumstances,
particularly considering the actions we have had to take since
Mr. Batchelor left," Mr. Wilcox said.
CONTACT: AMP LIMITED
Level 24, 33 Alfred Street
Sydney NSW 2000 Australia
ABN 49 079 354 519
Contact: Mark O'Brien, Investor Inquiries
Phone: 9257 7053
BRITISH AIRWAYS: Reduces Supplier Base to Cut Expenditure
---------------------------------------------------------
British Airways PLC is planning to reduce supplier base in its
bid to cut external expenditure by a further GBP450 million
(USD725.8 million) during the next two years. The measure is in
addition to the current two-year program aimed at taking GBP650
million out of the cost base by March 2004.
British Airways' U.K. controlled suppliers have already been cut
from 14,000 last year to 5,000. Now, the group aims to further
reduce this to about 2,000 by March 2005.
Significant cuts are also planned in the ranks of its 2,000 local
suppliers overseas.
Struggling to improve its profitability in a weakening air travel
market, the airline is seeking to cut its GBP3 billion external
expenditure by 10% or GBP300 million during the next two years in
addition to internally generated cost savings of GBP150 million.
However, BA chief financial officer John Rishton revealed that
the airline would only able to achieve the 10% target through a
recovery in the market bringing higher revenues as well as
through a decline in fuel prices despite all the actions to cut
costs.
"Flat" revenues have been projected for the airline in the coming
financial year to the end of March 2004.
Mr. Rishton also warned that BA would face significant headwinds
from higher costs in the next financial year totaling an
estimated GBP300 million to GBP400 million, including higher fuel
charges estimated at around GBP100 million, higher landing
charges and increases in pay, pensions and insurance.
Fuel accounts for some 11% of BA's total costs and according to
reports, jet fuel has risen by about 50% from USD249 to USD375 a
ton in the past six months.
BA reacted by implementing hedging policies, significantly
reducing fuel costs by GBP63m in the first three months of this
year.
Lord Marshall, BA chairman, said that the "current situation is
as bad as the [global] aviation industry has ever experienced."
In effect, a massive shift is underway in the airline supply base
as BA aims concentrates its long-term procurement strategy on
building partnerships with around 100 strategic suppliers and
close collaboration with a further 500.
Relationships with a further 1,5000 suppliers would be much more
opportunistic and transaction-based and usually carried out
electronically, reports say.
CONTACT: BRITISH AIRWAYS PLC
Waterside, Harmondsworth
London UB7 0GB, United Kingdom
Phone: +44-20-8562-4444
Fax: +44-20-8759-4314
Toll Free: 800-545-7644
Home Page: http://www.british-airways.com
BRITISH SKY: Set to Lose BBC When Contract Ends in May
------------------------------------------------------
BBC will cut its five-year tie with British Sky Broadcasting when
it ends its contract with the company in May, in a move that
would cost BSkyB up to GBP17 million a year, according to the
Times.
The company said it will broadcast its digital channels "in the
clear" using a new Astra satellite that focuses its beam on the
U.K., rather than through BSkyB's access system. BBC has been
paying GBP5 million a year for the service. To protect program
rights, the BBC digital channels will be scrambled.
BSkyB, which is 35.45 owned by The News Corporation, also stands
to lose other commercial broadcasters, such as ITV, Channel 4 and
Five, when existing contracts run out.
BSkyB could retaliate by removing the prime positions for the
digital versions of BBC One and BBC Two -- 101 and 102 -- on its
electronic program guide, the report says.
BSkyB is the U.K.'s no.1 pay-TV provider. It distributes
entertainment, news, and sports programming to 10.2 million
subscribers in the U.K. and Ireland, including 6 million who
subscribe to its digital direct-to-home satellite service.
The company terminated its analog satellite service in 2001.
BSkyB also offers interactive TV services, holds broadcast rights
to the leading football leagues in England and Scotland, and has
minority stakes in several clubs.
As of the quarter ended June 2002, BSkyB has total assets of
US$3.372 billion, and total liabilities of US$3.832 billion.
CONTACT: BRITISH SKY BROADCASTING
6 Centaurs Business Park, Grant Way
Isleworth, Middlesex TW7 5QD, United Kingdom
Phone: +44-20-7705-3000
Fax: +44-20-7705-3060
Home Page: http://www.sky.com
CORUS GROUP: Court Rejects Bid to Sell Aluminum Business
--------------------------------------------------------
Pechiney regrets to announce that Corus Group plc has informed it
that the Amsterdam Enterprise Court has rejected its application
to overrule the decision of the board of Supervisory Directors of
its Dutch Subsidiary.
As a consequence, Corus Group plc is unable to proceed with the
sale of its aluminum conversion business to Pechiney.
Pechiney is very disappointed that Corus Group plc -with whom an
agreement in principle was signed last October- is not able to
transfer its aluminum conversion business meaning that the
transaction cannot go ahead. Pechiney has always been convinced
of the excellent strategic fit that this transaction would bring
to both Pechiney and the aluminum side of Corus and also of the
very high level of synergies that had been identified. As a
consequence, Corus Group plc will pay Pechiney an agreed break-up
fee of 20 million euros, according to its contractual
obligations.
Although the Pechiney Group will in principle remain open to a
possible transaction in the future should Corus Group plc wish to
reopen discussions, it will now pursue other investment targets,
in line with Pechiney's strategic objectives and strict
investment criteria. As in the past two years, the Group remains
committed to selective and profitable growth, which has proved in
2002 to deliver the synergies expected from the Soplaril and
Eurofoil acquisitions in 2001.
CORUS GROUP: Calls Off Planned Sale of Aluminum Business
--------------------------------------------------------
On March 11, 2003, Corus Group plc announced that it would be
commencing proceedings before the Enterprise Chamber of the
Amsterdam Court of Appeal to seek redress in respect of the
decision of the Supervisory Board of Corus Nederland BV to reject
the sale of the aluminim rolled products and extrusions
businesses to Pechiney.
Further to the announcement at 7am Thursday, Corus regrets to
announce that its request for redress has been unsuccessful. As
no appeal procedure is available that could resolve the issue in
time for the Sale to proceed, Corus accepts the Court's decision
as final.
Following the Court's decision, Corus has informed Pechiney that
it will not now proceed with the Sale, and as a result a break
fee of EUR 20 million is payable to Pechiney. Additionally,
Pechiney retains exclusive negotiation rights over the businesses
until 23 October 2003.
The Board of Corus views this outcome as extremely disappointing,
especially as every effort was made to address the legitimate
concerns of the Supervisory Board. Notwithstanding today's
outcome before the Court, Corus feels that the position taken by
the Supervisory Board left it with no alternative but to ask the
courts to review the Supervisory Board's decision.
The Group's preliminary results will be issued on Friday, March
14, 2003 at 12 noon (London time).
CORUS GROUP: Dutch Unit Moves Toward Obtaining Independence
-----------------------------------------------------------
The Dutch side of Corus Group is seeking independence from the
group's unprofitable U.K. steel business, documents filed in an
Amsterdam court on Wednesday revealed.
Corus Nederland Supervisory Board Chairman Leo Berndsen has
presented the proposal as early as January 31 to Corus Group
Chief Executive Tony Pedder.
According to the document, "The Dutch supervisors came to the
point of view that they wanted to make their own judgment whether
the Dutch unit has a future within the group or whether they will
need to take into account the possible sale of the Dutch unit by
the group."
As part of the initiative, the unit's supervisory board offered
its parent a loan intended as a substitute for the sale of the
unit's aluminum business, which the board has strongly opposed.
Shares in Corus Nederland may be or have already been offered as
security to the group's banks for credit, the documents said.
Corus had made known it is negotiating with its lender banks
about extending a EUR2.4-billion credit facility through May 2004
and also about renegotiating those funds for the medium term.
The document indicated that failure of Corus Group to meet
requirements made by its banks, would give Corus the signal to
demand "expansion of its independence" or start a "path to
independence."
INVENSYS PLC: Bans Employees' Plan to Exit Pension Fund
-------------------------------------------------------
Troubled engineering group Invensys PLC admitted that it adopted
controversial guidelines, including banning employees from
leaving its under-funded pension scheme to try to stave off a
potentially disastrous run on the GBP3 billion fund.
Laid down by the Occupational Pensions Regulatory Authority
(Opra) last week, the guidelines indicate that trustees of
company pensions can delay requests from members for a valuation
of their pension rights.
A valuation is required if a member wants to transfer funds into
another employer's scheme or personal pension.
"The trustees have decided to suspend quotations. Any member who
has written in the last couple of weeks will not receive a
transfer value quotation. We will honor any outstanding
requests," a spokesman for the Invensys pension scheme said.
The guidance will remain in force until the Department for Work
and Pensions can implement a new legislation, hopefully in June,
which will allow pension trustees to reduce valuations to members
who want to transfer their benefits early.
Just 12 months ago, Invensys' pension fund was worth GBP3 billion
(USD4.83 billion). At that time it had a healthy GBP265 million
surplus.
However, caught out by the sudden downturn in the technology and
telecoms sectors, it acquired billions of pound in debt.
Half of the firms' pension fund is currently invested in
equities.
Actuaries who have scrutinized Invensys' annual report and
accounts reportedly say that the GBP3 billion pension fund is
likely to be hundreds of millions of pounds in deficit.
Invensys PLC is a global leader in production technology and
energy management. The group helps customers improve their
performance and profitability using innovative services and
technologies and a deep understanding of their industries and
applications.
CONTACT: INVENSYS PLC
Invensys House, Carlisle Place
London SW1P 1BX, United Kingdom
Phone: +44-20-7834-3848
Fax: +44-20-7834-3879
Home Page: http://www.invensys.com
Contact:
Lord (Colin) Marshall, Chairman
Richard Haythornthwaite, CEO
Dan Leff, COO, Energy Management
LAIRD GROUP: To Close Plants, Move to Low-Cost Countries
--------------------------------------------------------
Laird Group is closing plants as low demand for electronics from
the telecom, automotive and information technology markets takes
its toll on the company's finances.
The company will close its East Kilbride technologies factory,
its last remaining Scottish interest following its disposal of
its subsidiary, Fullarton Computer Industries, in August.
The move to unload the business to Dunfermline-based Simclar is
perceived as a signal of the group's move into the low-cost
markets to deal with a depressed electronics industry.
According to Chief Executive Peter Hill, the company is moving
into low-cost countries, such as China, to meet the needs of
clients shifting production to Asia and to cut its own costs.
Laird Group said it was relocating its European technologies
interests to "reduce operating profits."
Earlier efforts to cut jobs from the technologies arm in the US
and Europe in 2002 enabled the group to record a 26% rise in
annual pre-tax profits to GBP31.8 recently; but it did not
prevent a GBP60.2 million loss after tax, interest, goodwill and
exceptional items.
The loss is attributed mainly to a GBP58.8 million hit from
losses resulting from the disposal of Fullarton and other non-
core businesses.
The company is considering relocating the business to the Czech
Republic, pending approval of employees who stand to lose 50 of
their companions as a result.
LAURA ASHLEY: Warns of Pre-tax Loss Amounting to GBP5 Million
-------------------------------------------------------------
Laura Ashley Holdings plc announced on January 8, 2003 that the
company's results for the year ended January 25, 2003 would be
broadly in the range of breakeven.
The company is currently in the process of finalizing the
accounts for the year ended January 25, 2003 and now expects a
pre-tax loss before exceptional items of approximately GBP5
million.
This difference is due to a combination of three principal
factors arising out of the year end process: first, lower sales
and margins in January 2003 than had been anticipated; secondly,
a higher write-down of stock arising, in part, out of the year
end closing process and, in part, from improved stock
reconciliation processes and thirdly, an increase in accruals and
other accounting year end adjustments.
Further to the company's announcement on 23 January 2003, the
Company is now in advanced negotiations with a prospective
franchisee in respect of the Laura Ashley companies in Germany,
Switzerland and Austria. If successfully concluded, the Company
expects to be able to exit these countries at much reduced costs
and, additionally, to be able to develop and expand its franchise
operations in these countries.
*****
The announcement sent shares in the retailer down more than 16%
to a record low of 6p on Thursday valuing the group at GBP37.5
million (US$60.5 million).
In January, the company advised it was reviewing its store
portfolio in Continental Europe and as a result, it intends to
close a further 35 stores across Continental Europe including all
its remaining stores in Germany.
CONTACT: LAURA ASHLEY
David Cook, Chief Financial Officer
Phone: 020 7880 5100
BRUNSWICK
Phone: 020 7404 5959
Katya Reynier
THISTLE HOTELS: Reit Asset Has Joined Bidding Race for Asset
------------------------------------------------------------
Reit Asset Management has offered to buy Orb's Thistle Hotels, a
37-hotel portfolio, for GBP700 million, according to the
Telegraph. The deal is believed to include Thistle Kensington
Palace, Lancaster Gate and Kensington Park.
Thistle has long been considered a takeover target, with its
management coming under fire for poor performance, and a
reluctance to return cash to investors.
The management has rejected an earlier offer by Singapore's BIL
International, which already owns a 46% stake in the company.
The Board said, "BIL's offer of 115 pence per Thistle share is
wholly inadequate."
It is currently planning to sell three top Londong hotels to
thwart BIL's GBP554 million takeover bid.
Proceeds of the transaction are to be distributed as a special
dividend to shareholders, whose majority decision is crucial to
the success of the plan.
CONTACT: THISTLE HOTELS PLC
Phone: 020 7895 2304
Ian Burke, Chief Executive Officer
* Alvarez & Marsal Launches Global Power and Utilities Group
----------------------------------------------------------------
With an increasing number of energy companies facing distressed
situations, Alvarez & Marsal (A&M), a premier worldwide corporate
restructuring, crisis management and creditor advisory firm,
announced it has launched a new Global Power and Utilities Group,
established to focus on serving the specific needs and interests
of this sector.
Headed by power industry veterans, Gerald K. Lindner, Alan R.
Rosenberg and Gordon Travers, all Managing Directors at A&M, the
group will provide workout, restructuring and bankruptcy advisory
and operating services to power companies, utilities, and
unregulated utility subsidiaries, as well as bank lenders,
bondholders and other stakeholders of companies in this area.
"The California energy crisis, the collapse of majors players
such as Enron, supply and demand imbalances and the liquidity
crisis facing independent power companies have caused the entire
industry to undergo a fundamental structural transformation,"
said Bryan Marsal, co-founder of A&M. "With many companies
already involved in the restructuring process and more likely to
follow, there is an unprecedented demand for senior industry
expertise to help companies and creditors successfully navigate
these situations."
Gerald K. Linder has had a long and distinguished career in the
independent power industry, having previously held senior
executive management and operating positions at Fluor
Corporation, GE Power Systems and Hadson Power Systems/LG&E, a
leading developer and owner of independent power projects. He
also has served as the general partner of LCRW, a power-focused,
private equity partnership formed by Chase and Westinghouse, and
on the Executive Committee and Board of the National Independent
Energy Producers Association, a leading independent power trade
association. Prior to joining A&M, he was Senior Strategic
Advisor to AEP Resources, the independent power subsidiary of
American Electric Power Company, and also co-founded and headed
Opus Energy, which served as an investment platform and advisor
to a number of leading private equity firms in connection with
power-related investment activities in the US and offshore.
Alan Rosenberg's career spans 18 years at major money center
banks, most recently with Bank of America Securities, where he
served as Head of its European Power and Energy Group and Global
Head of Power Project Finance & Asset-Based Advisory Services. As
Head of the European Power and Energy Group, Mr. Rosenberg
developed an M&A team and expanded BofA's corporate finance
franchise for European and American energy and power clients
within local markets and on a trans-Atlantic basis. As Global
Head of Power Project Finance, he had direct responsibility for
all origination and execution of BofA's structured advisory,
asset-based M&A and project lending businesses in the power
industry. As one of the leading financial institutions in the
industry, his team of 45 professionals, located in North America,
Europe, Asia, and Latin America closed in excess of $10 billion
of transactions annually.
Gordon Travers joined A&M from Opus Energy, which he co-founded
with Gerald Lindner. Prior to that, he practiced finance and
energy law for over 20 years. Over the course of his career,
Gordon has led many notable financing and restructurings for
power projects and utilities on behalf of leading money center
banks, including the bank debt restructurings of Consumers Power
Company, LILCO and Valero Energy Corporation, and new money
project financings for projects sponsored by such companies as
Duke, Transco (now Tractebel), El Paso Energy and AEP Resources.
A&M's Global Power & Utilities Group will also include Senior
Managing Director Joseph Bondi, currently serving as Chief
Restructuring advisor to PG&E's National Energy Group; Managing
Director Ray Dombrowski, who prior to joining the firm served as
Senior Vice President and Chief Financial Officer of Ogden
Corporation, a leading alternative energy and independent power
company; and Dean Swick, a Managing Director in the firm's
Houston office, who has extensive experience in the upstream,
midstream, downstream and oilfield service sectors of the energy
industry.
About Alvarez & Marsal
Founded in 1983, Alvarez & Marsal is one of the world's premier
corporate restructuring, crisis management and creditor advisory
firms.
A&M's senior professionals are dedicated to solving complex
business, financial and operational problems in order to unlock
and realize maximum value for corporate owners and stakeholders.
Through 12 offices and 170 employees worldwide, A&M provides
unparalleled financial and operational services to troubled and
under performing companies through its core services which
include, Turnaround Consulting, Crisis and Interim Management,
Creditor Advisory, Bondholder Advisory. Corporate Finance and
Performance Improvement. For more information please contact
Rebecca Baker, Director of Global Marketing and Communications at
rbaker@alvarezandmarsal.com mailto:rbaker@alvarezandmarsal.com
Alvarez & Marsal, Inc.
101 East 52nd Street, New York, NY 10022
Hannah Arnold, Maria Brown, 212-575-4545
Linden Alschuler & Kaplan, Inc. Public Relations
***********
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. Kimberly
MacAdam, Larri-Nil Veloso, Ma. Cristina Canson, and Laedevee
Gonzales, Editors.
Copyright 2003. All rights reserved. ISSN 1529-2754.
This material is copyrighted and any commercial use, resale or
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Information contained herein is obtained from sources believed to
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The TCR Europe subscription rate is US$575 per half-year,
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