/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/030627.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, June 27, 2003, Vol. 4, No. 126 Headlines B E L G I U M SOPHIS SYSTEMS: Blue Fox Offers to Assume Business Activities C Y P R U S BALCHUG LIMITED: Creditors Have Until July 23 to Prove Claims C Z E C H R E P U B L I C IP BANKA: Name Change Proceedings Initiated F R A N C E ARIANESPACE: Space Agency Wants Out of Firm by Year's End VIVENDI UNIVERSAL: NBC Only Offering Alliance, Not Cash G E R M A N Y COMMERZBANK AG: Confirms Disposal of Credit Agricole Holdings DAIMLERCHRYSLER AG: Court Rejects Appeal to Stop Class Action D'IETEREN AUTO: Warns of Lower Results; Considers Restructuring DRESDNER BANK: Channels Bad Loans to Restructuring Division EUROBIKE AG: Fails to Reach Agreement with Creditor Banks MANNHEIMER AG: Insurance Group Doubts Rescue Will Materialize WESTLB AG: Decides to Keep Principal Finance Division WESTLB AG: BaFin Forwards Probe Results to Criminal Prosecutors WESTLB AG: Audit Committee Dismisses PricewaterhouseCoopers I T A L Y FIAT SPA: New Plan Only Good if It Sells Cars, Say Analysts L U X E M B O U R G BANK OF CREDIT: Ex-staff Get US$50 Mln Indemnity for 'Stigma' N E T H E R L A N D S KLM ROYAL: Plans to Undertake Deeper Job-cuts to Save Cost KONINKLIJKE AHOLD: Tops Markets Chief Executive Resigns S W E D E N SONG NETWORKS: Sells Kisa, Rimforsa Metro Network to Local Govt SONY ERICSSON: 500 Jobs at Risk in Plan to Focus on GSM Products TELIASONERA: Outsources Mainframe Computer Operations to Enator S W I T Z E R L A N D SWISS INTERNATIONAL: Picks Barclays to Lead Fundraising Campaign U N I T E D K I N G D O M ABBEY NATIONAL: Morgan Stanley Commends Progress in Portfolio ACCIDENT GROUP: GBP11 Million in Unpaid Income Taxes Uncovered BAE SYSTEMS: Boeing Strikes Down Possible Combination BRITISH ENERGY: Restart of Two Reactors Delayed Further CORDIANT COMMUNICATIONS: Active Wrests Enough Stake to Block WPP CYTOMYX HOLDINGS: Consolidates Cytocell Acquisition to Save Cost ELIZA TINSLEY: Posts Update on Restructuring Program HILL & TYLER: Joint Administrators Offer Business for Sale LISTER PETER: Joint Administrators Offer Business for Sale ROBOTIC TECHNOLOGY: Still Cautious About Market Place Outlook SILENTNIGHT HOLDINGS: Gives Update on State of Business WAREHOUSING BUSINESS: Administrators Offer Business for Sale WINCHESTER ENTERTAINMENT: Restructurings Begin to Show Results * Customers of Firms Declared in Default Urged to File Claims ********* ============= B E L G I U M ============= SOPHIS SYSTEMS: Blue Fox Offers to Assume Business Activities ------------------------------------------------------------- Blue Fox Enterprises N.V. has made a bid for all assets of the recently bankrupt Sophis Systems N.V. of Belgium, which specializes in software used in designing woven and printed textiles. Blue Fox wants to continue Sophis' activities, in combination with its subsidiary NedGraphics, which is active in the same market. This safeguards the continuity of the Sophis software for existing clients of the company. Blue Fox intends to work together with Sophis' employees on the future development of Sophis software. Sophis Systems N.V. was declared bankrupt just over two weeks ago after it failed to meet a previously arranged court-ruled debt-repayment arrangement. Sophis has more than 20 years of experience in the development of software for fabric weaving (Jacquard and Dobby) and the digital printing of fabrics. Sophis has clients in more than 50 countries. =========== C Y P R U S =========== BALCHUG LIMITED: Creditors Have Until July 23 to Prove Claims ------------------------------------------------------------- In the matter of Balchug (Cyprus) Limited and in the matter of the Cyprus Companies Law Cap 113, notice is hereby given that the creditors of Balchug Limited, which is being voluntarily wound up, are required on or before July 23, 2003 to send in: (a) Full names, addresses and descriptions (b) Full particulars of debts or claims and (c) Names and addresses of their solicitors (if any) To the undersigned George Foradiris of PricewaterhouseCoopers, Julia House, 3 Th Dervis Street, P.O. Box 21612, CY-1591 Nicosia, Cyprus, the liquidator of the said company, and if so required by notice in writing from the said liquidator, to come in and prove their debts or claims at such time and place as shall be specified in such notice, or in default thereof they will be excluded from the benefit of any distribution made before such debts are proven. =========================== C Z E C H R E P U B L I C ============================ IP BANKA: Name Change Proceedings Initiated ------------------------------------------- The Czech National Bank has started administrative proceedings relating to the change of IP banka's name following the cancellation of its banking license in August. The loss of the certificate barred the bank from using the word "banka" in its name. It tried to change the name several times in the past but failed due to opposition from shareholder CSOB group. A negative outcome from this administrative proceeding could result in a CZK50 million fine, a company disclosure to the Prague bourse said, according to Czech Happenings. The proceedings are still on going and no decision about the fine has been made yet. IP banka was created as successor to collapsed IPB, which was put under involuntary administration in June 2000 and later taken over by CSOB. The CSOB group controls about 34% of IP banka through subsidiaries taken over from IPB. Dutch company Saluka Investments holds over 46% of the bank. =========== F R A N C E =========== ARIANESPACE: Space Agency Wants Out of Firm by Year's End --------------------------------------------------------- French space agency, CNES, plans to trim down its holdings in satellite-launching consortium Arianespace before the end of 2004, according to AFX. The report cited the agency's president, Yannick D'Escatha, saying in an interview with French daily La Tribune that CNES is in talks to sell its 32% stake to fellow shareholders. He said the agency has commenced talks with European Aeronautic Defense and Space Company (EADS), which holds over 9% in Arianespace; SNECMA, and other minority industrial shareholders. EADS was earlier reported to have said it is interested in taking a controlling stake at Arianespace. "The presence of the State in the capital of Arianespace, at a level of 32%, is no longer necessary and can no longer be justified," Mr. D'Escatha said. But the government, according to him, has not yet decided how much shareholding it would retain. He also indicated his party could expedite the plan ahead of the schedule to restructure Arianespace's shareholder structure by the end of next year. He said the interest of several industrial groups in taking a larger stake confirms that the enterprise has a strong future and real value. VIVENDI UNIVERSAL: NBC Only Offering Alliance, Not Cash ------------------------------------------------------- General Electric's broadcasting unit NBC, which is planning to take control of Vivendi Universal Entertainment, wants to form an alliance with the latter, minus the Universal Music business, AFX reported citing the New York Times. The plus factor in NBC's proposal could be its strong management reputation, according to executives close to the talks, the report says. This could further be enhanced if it offers the possibility for Vivendi to remove debts immediately from its balance sheet, while retaining the option of selling the assets when business conditions improve. NBC has not yet offered any cash as part of its proposal, according to the report. It declined to comment on the matter. The General Electric unit is competing for the assets with Liberty Media, which has now lodged bids for all the entertainment assets, and for Vivendi Universal, excluding the Universal Music group; Edgar Bronfman Jr., the former CEO of Seagram and a Vivendi shareholder; Marvin Davis, and Metro-Goldwyn-Mayer. ============= G E R M A N Y ============= COMMERZBANK AG: Confirms Disposal of Credit Agricole Holdings -------------------------------------------------------------Germany's third-largest bank, Commerzbank AG, confirmed it has unloaded its over 1% stake in Credit Agricole, although it did not provide financial details for the transaction, according to AFX. Dealers are expecting the German bank to book a EUR280 million gain from the sale of the shares, which a spokesman said were sold at market value. The spokesman, however, did not confirm the dealer's estimates. They said earlier that Goldman Sachs and Commerzbank were placing 16.8 million shares in Credit Agricole through an accelerated book-building, with the stock being placed at around EUR16.65. Commerzbank recently reversed its first annual loss in 2002 with net profit of EUR3 million in the first quarter. Despite this, ex-CEO and head of supervisory board, Martin Kohlhaussen, hinted that the group could be a target of a takeover bid. A Dow Jones source said he does not believe Commerzbank will attract offers until it fully recovers. DAIMLERCHRYSLER AG: Court Rejects Appeal to Stop Class Action ------------------------------------------------------------- U.S. District Judge Joseph Farnan Jr. dismissed DaimlerChrysler's appeal to dismiss a shareholders lawsuit relating to the 1998 combination of Chrysler and Daimler-Benz. The shareholders claim they were deceived in the transaction when DaimlerChrysler said it was a merger when it was actually a takeover. DaimlerChrysler argued shareholders knew Daimler-Benz would take control of the combined entity following the deal. It blamed media speculations for the shareholders' confusion. But the Judge said it failed to establish sufficient evidence it was so, according to Bloomberg. "Defendants are basically seeking to punish plaintiffs for trusting their word," Judge Farnan said in his 23-page decision, according to the report. "Plaintiffs had a right to believe in and trust the position of management who knew the terms of the arrangement intimately, as opposed to the speculation of media analysts and commentators who analyzed it from afar." The report cited an e-mailed statement from DaimlerChrysler saying Judge Farnan ruled solely on the company's request for summary judgment on the statute of limitations issue. The firm stands to pay as much as US$15 billion if it losses the trial. Shareholders seeking compensation from DaimlerChrysler includes billionaire investor Kirk Kerkorian's Tracinda Corp. Judge Farnan certified the DaimlerChrysler suit as a class action on June 11. D'IETEREN AUTO: Warns of Lower Results; Considers Restructuring --------------------------------------------------------------- New car registrations in Belgium fell by about 11% compared to the first half of 2002, despite intense promotions by manufacturers. The Volkswagen make was introduced in the key segment of small people carriers in May. For the first six months, D'Ieteren Auto recorded a decline in new vehicle volume, including commercial vehicles, of around 16% to 46,100 units, and a decrease in revenues of about 4%. These developments, compounded by intense promotional activities, will impact first half results. Based on current trends, the profession has revised its estimate of the 2003 market to 440,000 new car registrations, down by 6% compared to 2002. D'Ieteren Auto is maintaining its market share objective of 18% for the full year, counting, in the second half of the year, on the new models likely to generate high sales volumes, such as the VW Touran small people carrier, the Audi A3, the VW Transporter and the new VW Golf expected in November 2003. Given the expected evolution of D'Ieteren Auto's revenues, the continuation of promotional activities, and the launching costs of new models, results for 2003 will be lower than prior year. In order to restore the competitiveness and to ensure the future of the Brussels VW-Audi agencies, which are directly managed by D'Ieteren Auto -- in parallel to the national network of independent dealers -- the company is pursuing its investments and is considering a restructuring program. In accordance with the law and company traditions, D'Ieteren Auto has begun the necessary consultation with its staff and unions to examine possible social consequences. Vehicle glass repair and replacement: Dicobel/Belron Belron has maintained its strong commercial performance of 2002 in the first half of 2003. Despite the negative effect of exchange rates, revenues have increased by about 8%, compared to the first half of 2002. Growth has occurred in most of its markets thanks to a sustained focus on quality of service to both motorists and partners. Belron's commitment to further geographic expansion materialized with the signing of a franchise contract in Poland in February 2003. The group continues to make good progress on the standardization of its IT systems, which, when completed, will further improve its operational efficiency. The full year 2003 should show continued revenue growth for Belron. However, results will be impacted by development costs made by the group to ensure its future growth. Prospects for 2003 for the D'Ieteren group Given the trends and in accordance with the communication made at the Annual General Meeting on June 5, results for 2003 of the D'Ieteren Group should be lower than prior year. D'Ieteren will publish its half-yearly results on Monday, September 1, 2003 and will hold a press conference and an analysts' meeting on that day. CONTACT: D'IETEREN Jean-Pierre Bizet, Group Executive Vice President Benoit Ghiot, Group Financial Manager Catherine Vandepopeliere, Financial Communication Phone: + 32 (0) 2 536.54.39 E-mail: financial.communication@dieteren.be DRESDNER BANK: Channels Bad Loans to Restructuring Division ----------------------------------------------------------- Dresdner Bank recently shifted some EUR3 billion (US$3.5 billion) of debt, mostly bad loans, to its so-called bad bank unit. According to the Financial Times, the German bank owned by Allianz AG was able to move over EUR23 billion of committed credit -- out of a total of EUR123 billion -- to the Institutional Restructuring Unit. More than 40% of the amount is German domestic loans, the report said. Dresdner management Board Member Jan Eric Kvarnstroem, who heads the Institutional Restructuring Unit, said the move to transfer the EUR3 billion- debt was a third of the way towards the bank's goal of securitizing EUR10 billion by the end of 2004. Last year, Allianz transferred to the Institutional Restructuring Unit EUR30.9 billion in bad loans. Dresdner plans to break out its financial results from those of IRU to show a distinction between the "good bank" and the "bad bank," the report said. Allianz recorded a loss amounting to nearly EUR1.2 billion in March, mainly due to a EUR2 billion- operating loss at Dresdner Bank. The affiliate has cut non-personnel costs by 10% and reduced non-guaranteed bonus and performance related pay to restore profitability. CONTACT: ALLIANZ AG Koniginstrasse 28 D-80802 Munich, Germany Phone: +49-89-38-00-00 Fax: +49-89-34-99-41 Home Page: http://www.allianz.com Contact: Paul Achleitner Member of the Management Board (Finance) DRESDNER BANK AG Jurgen-Ponto-Platz 1 D-60301 Frankfurt/Main, Germany Phone: +49-(0) 69/2 63-0 Fax numbers: General enquiries +49-(0) 69/2 63-48 31 +49-(0) 69/2 63-40 04 EUROBIKE AG: Fails to Reach Agreement with Creditor Banks --------------------------------------------------------- As a result of the meeting of the pool banks on Tuesday, the board of directors of the Eurobike AG has been informed by the pool leader, that there will be an extraordinary termination of all credit lines within the pool. As a result the company expects that the concept for the recapitalization of the group will not come into effect. Eurobike holds investments in retail companies in the field of motorbike clothing and accessories. Its brands are POLO, Hein Gericke and GoTo Helmstudio. Its subsidiary Intersport Fashions West operates in the U.S. market. It is responsible for design and distribution for Hein Gericke and First Gear, as well as for the design of the Harley-Davidson clothing line. MANNHEIMER AG: Insurance Group Doubts Rescue Will Materialize ------------------------------------------------------------- Mannheimer AG said in a terse statement on Wednesday that the German Insurance Association had informed the Management Board that the currently planned rescue of Mannheimer with the injection of new capital was unlikely to take place. BaFin, the financial services regulator, earlier rejected a rescue plan for the insurer whose reserves had been depleted by falling stock markets. Mannheimer warned in its 2002 annual report that its life unit would post a EUR250 million net loss in 2003 and would have undisclosed losses of EUR34 million if the German DAX ended 2003 around 2892 points -- where it ended last year -- and if the same German writedown rules on capital investment don't change from last December. Mannheimer also said its life unit would only break even if the DAX rose to 5000. Earlier this month, CEO Hans Schreiber resigned from the Management Board following reports that he could be forced to step down for pressuring the company's finance chief "to buy stock at the wrong time." Mr. Schreiber was trying to convince shareholders to back a capital increase. WESTLB AG: Decides to Keep Principal Finance Division ----------------------------------------------------- WestLB decided to keep its principal finance unit that was responsible for the controversial refinancing of TV rental business, BoxClever, according to AFX citing the Wall Street Journal. The unit was recently closed to new business in anticipation of any possible sale. A valuation of the unit's holdings of equity and debt in five U.K. companies showed they are safely worth more than their book value, the report said. The Financial Times, in a separate report, said investment banks, Lehman Brothers and Citigroup, and several private equity groups, would be interested in the unit if it were on sale. The principal finance assets include Mid Kent Water, whisky distiller Kyndal International and Odeon cinemas. WESTLB AG: BaFin Forwards Probe Results to Criminal Prosecutors --------------------------------------------------------------- Germany's chief financial regulator, BaFin, has asked the Dusseldorf prosecutor's office to examine whether there was an element of criminal breach of trust in the activities of WestLB's principal finance unit. BaFin handed over the result of its investigation into the bank's EUR430 million- (US$503 million) provisions related to a loan made by the division to U.K. television rental business BoxClever. The amount forced WestLB to report a EUR1.67 billion- (US$1.2 billion) loss for 2002 in May, up from an initial estimate of EUR1 billion. WestLB said on Wednesday its own internal investigation had so far found no grounds for criminal proceedings, according to the Financial Times. But members of the supervisory board, who have seen the report, suggested CEO Jurgen Sengera and Andreas Seibert, responsible for corporate finance until this year, could be held responsible for failing to take proper note of the concerns of the bank's central credit management department. The prosecutor's office has declined to say whether any company executive is under investigation, the Telegraph said in a separate report. WESTLB AG: Audit Committee Dismisses PricewaterhouseCoopers ---------------------------------------------------------- The audit committee of WestLB's supervisory board voted against renewing PricewaterhouseCoopers' mandate as the bank's auditor, according to the Financial Times. The move comes as BaFin bared its report into WestLB's refinancing of TV rental business BoxClever. The Telegraph, meanwhile, said it is believed Ernst & Young will replace PricewaterhouseCoopers. The firm was the one who prepared the report on the investigation of WestLB's EUR350 million- writedown on the financing of BoxClever for German regulator BaFin. WestLB is the largest credit institution under public law in Germany. It was founded in 1969 by the merger of its old-established predecessor institutions, Landesbank fur Westfalen Girozentrale, Munster and Rheinische Girozentrale und Provinzialbank, Dusseldorf. ========= I T A L Y ========= FIAT SPA: New Plan Only Good if It Sells Cars, Say Analysts ----------------------------------------------------------- Market observers doubt creditors and investors will be convinced that the new restructuring plan of Fiat SpA is the right strategy this time. Analysts interviewed by Bloomberg this week all agreed that after several failed attempts to resuscitate the company, the only consideration investors are interested in is: whether or not the new plan will sell cars. "The whole plan only works if they manage to sell cars," Emanuele Vigano, who manages US$807 million at Bipielle Fondicri SGR, told Bloomberg. "There's a chance for Fiat's shares to rise if it works, but there's more chance that it won't." Paolo Wenk, who helps manage the equivalent of US$1.1 billion at Banco di Sardegna in Milan, agrees: "It's going to be very difficult for any plan to convince the market... I want to see radical restructuring, with many layoffs, the closure of some car plants and the transfer of others to more productive areas." Newly appointed CEO Giuseppe Morchio was expected yesterday to present his grand plan -- a combination of 10,000 layoffs and EUR1.8 billon in share sale. Majority of the layoffs, according to Bloomberg, will likely be overseas, with reductions in Italy limited among white-collar workers. Fiat isn't expected to shut down any of its car plants. Last year, the company shed 6% of its workforce and is currently firing 8,000 employees at the car unit. In all, over the past 18 months, Fiat has disposed of EUR9 billion of assets to cover the huge hole on its pocket -- the result of several acquisition-spree by former chief executives, Paolo Fresco and Paolo Cantarella. Meanwhile, according to Bloomberg, the company continues to lose its market share in Western Europe. In May, Fiat's share further fell to 7.3 percent from 8.2 percent in the same month last year. London-based consultancy, Autopolis, estimates that Fiat's European share will drop to 5 percent by 2010. =================== L U X E M B O U R G =================== BANK OF CREDIT: Ex-staff Get US$50 Mln Indemnity for 'Stigma' ------------------------------------------------------------- After 12 years of waiting, employees of collapsed Bank of Credit & Commerce International on Wednesday received a sweet reward -- US$50 million. According to the Telegraph, the money is payment for the stigma suffered by employees as a result of "having worked for a corrupt and fraudulent organization." Of the amount, the report said, US$45 million was to write off the cheap mortgages employees obtained from the bank, while the balance will be distributed to over 600 employees in cash. BCCI Campaign Committee member, Mohammed Qayuum, told the Telegraph that what made this payout possible was the acquiescence of creditors to forego part of the payment due them. The creditors, who are scattered in 140 countries, also received clearance for the fourth installment of their repayment worth US$1.25 billion. The paper said creditors have now been repaid 75% of their money. Liquidator Christopher Morris of Deloitte & Touche says the money paid to creditors and former employees came from the recovery of loans and the litigation against auditors, advisers and senior people implicated in the bank's transactions. A pending case against Bank of England could be the source of another payout in the future, according to the paper. The bank collapsed in July 1991. ===================== N E T H E R L A N D S ===================== KLM ROYAL: Plans to Undertake Deeper Job-cuts to Save Cost ---------------------------------------------------------- KLM Royal Dutch Airlines plans to intensify its cost-cutting drive by axing an additional 1,500 jobs on top of the 3,000 announced earlier, AFX said citing De Telegraaf. The move brings the total planned job cuts to 4,500 as the airline pursues its goal of bringing total cost savings to EUR650 million. KLM recently reported an operating loss of EUR252 million for the fourth quarter ended March 31, 2003. This result is an increase from an operating loss of EUR124 million last year. Leo van Wijk, President and CEO of KLM, said in the firm's financial results: "Our yields are decreasing and our cost base does not currently compensate for this development. We must therefore work hard with our employees, suppliers, the Dutch Government and other partners to reduce our cost base to match the new revenue environment." CONTACT: KLM ROYAL Investor Relations Phone: 31 20 649 3099 KONINKLIJKE AHOLD: Tops Markets Chief Executive Resigns ------------------------------------------------------- William Grize, president and CEO of Ahold USA, announced that he has accepted the resignation of Frank Curci, effective immediately. Mr. Curci, who served as president and CEO of Tops Markets, LLC since 2000, was transitioning to a new role as chief operating officer at Giant Food of Landover, Maryland. In May, Ahold announced that through an internal audit, accounting irregularities for the year 2002 were discovered at Tops. In Mr. Curci's role as CEO he held responsibility for oversight and control of the business. As such, Mr. Curci and Grize determined it was not appropriate for him to assume his new role at Giant-Landover and therefore Mr. Curci tendered his resignation. Mr. Curci had been with Ahold serving in a variety of positions for eight years. Max Henderson has assumed the role of executive vice president and general manager at Tops, reporting to Tony Schiano, president and CEO of Giant Food Stores, another Ahold USA company. Giant-Landover does not plan to fill the chief operating officer position at this time. CONTACT: ROYAL AHOLD N.V. P.O. Box 3050 1500 HB Zaandam Netherlands Home Page: http://www.ahold.com Phone: +31 (0)75 659 57 20 Fax: +31 (0)75 659 83 02 =========== S W E D E N =========== SONG NETWORKS: Sells Kisa, Rimforsa Metro Network to Local Govt --------------------------------------------------------------- Song Networks Svenska AB is selling the Kisa and Rimforsa metro network to Kinda municipality for SEK3.5 million. "Running a metro network optimally requires local presence and knowledge of the area. We're, therefore, pleased to see Kinda municipality, in Ostergotland, take over the network and continue to develop the enterprise to the benefit of the region," said Mats Lundqvist, Deputy Managing Director of Song Networks. The sale is a natural progression of a long-term business relationship, as Kinda municipality has been the metro network's biggest customer for some time. The deal now enables the municipality to pursue collaborative work with neighboring areas. "With our own network, we can develop new IT services in cooperation with neighboring authorities. For example, we'll be able to offer residents and businesses Internet connection at a competitive price. We're delighted with the purchase," said Alberto Necovski of Kinda municipality. Song Networks Svenska AB is a wholly owned subsidiary of Song Networks Holding AB. (Stockholmsborsen: SONW) Song Networks is a data and telecommunications operator with activities in Sweden, Finland, Norway and Denmark. The company's business concept is to offer the best broadband solution for data communication, Internet and voice to businesses in the Nordic region. The company has built local access networks in the largest cities in the Nordic region. The company was founded in 1995 in Sweden and has approximately 830 employees per March 2003. The head office is located in Stockholm and Song Networks have 24 offices located in the Nordic region. Song Networks said last month its net result for the quarter was SEK -38 million compared with SEK -336 million in the same period the previous year. SONY ERICSSON: 500 Jobs at Risk in Plan to Focus on GSM Products ---------------------------------------------------------------- Sony Ericsson's application-focused business strategy has started to drive market share growth in both the Japanese and GSM markets. Sony Ericsson's recent GSM-products have made a strong impact on the market and the recently introduced imaging phones for the Japanese market have broken new ground in mobile imaging. In order to strategically focus Sony Ericsson's business on GSM/UMTS/EDGE and to further strengthen profitability, it decided on these measures: (a) North American CDMA mobile phone operations to be phased out (b) GSM/UMTS R&D activities streamlined and Munich R&D-site closed Sony Ericsson Mobile Communications has decided to prioritize development of its GSM/UMTS/EDGE business and discontinue the development of CDMA mobile phones for the North American market. Sony Ericsson remains committed to the continued development of CDMA phones for the Japanese market and CDMA machine-to-machine modules. In addition, to further increase efficiency and productivity in Sony Ericsson's global R&D operations, GSM/UMTS R&D activities will be reduced to fewer sites. As a consequence, R&D activities in Munich, Germany will be phased out. In total approximately 500 employees will be affected in Munich, Germany and at Sony Ericsson's CDMA R&D center in Research Triangle Park, North Carolina, USA. "[The] announcement ensures the continued growth and development of Sony Ericsson. The actions reflect our strong forward momentum as we intensify our business focus and work to achieve profitability," says Katsumi Ihara, President of Sony Ericsson. Sony Ericsson Mobile Communications AB offers mobile communications products for people who appreciate the possibilities of powerful technology. Established in 2001 by Telefonaktiebolaget LM Ericsson and Sony Corporation, the joint venture continues to build on the success of its two innovative parent companies. Sony Ericsson creates value for its operator customers by bringing new ways of using multimedia communications while mobile. The company's management is based in London, and has 4,000 employees across the globe working on research, development, design, sales, marketing, distribution and support. For further information, please visit: http://www.SonyEricsson.com CONTACT: SONY ERICSSON Corporate Communications Phone: +44 (0) 208 762 5858 E-mail: info@SonyEricsson.com TELIASONERA: Outsources Mainframe Computer Operations to Enator --------------------------------------------------------------- TeliaSonera has signed a contract to outsource its mainframe computer operations to Tieto Enator. The 101 employees working with these operations at TeliaSonera Sweden will be transferred to Tieto Enator. By utilizing Tieto Enator's economies of scale, TeliaSonera Sweden can secure a competitive production cost. TeliaSonera Sweden is outsourcing its mainframe computer operations (Unisys OS/2200, IBM AS/400, HP Compaq VMS and IBM S/390 mainframes). Other computer operations run by TeliaSonera Sweden's IT service unit will remain in the company. The outsourcing of mainframe operations will enable TeliaSonera to continue to offer competitive prices to customers in the future. "To be a cost-effective alternative in the long term, TeliaSonera's mainframe computer capacity in Sweden must be increased. By outsourcing these operations to Tieto Enator, we gain economies of scale which will enable us to offer services of higher quality, and at attractive prices, to customers," says Ove Alm, head of the Networks and Production unit at TeliaSonera Sweden. The agreement requires the approval of the Swedish Competition Authority. ===================== S W I T Z E R L A N D ===================== SWISS INTERNATIONAL: Picks Barclays to Lead Fundraising Campaign ---------------------------------------------------------------- Investment bank, Barclays Capital, will advise Swiss International in its latest restructuring efforts and lead its campaign to raise CHF500 million in new financing, the Telegraph said yesterday. The carrier did not say up to what extent Barclay's role will be nor did it say whether or not the bank will take on some of its debts. In a statement Tuesday, the airline -- which rose from the ashes of erstwhile national flag carrier, Swissair, just over a year ago -- said its new restructuring plan will result in 3,000 redundancies and reduction of aircrafts to 74. According to the Telegraph, the airline is rumored to be losing about CHF2 million a day due to the downturn in air travel. Barclays will unlikely look towards Swiss International's existing bankers, UBS and Credit Suisse, for the extra capital. "Both Swiss banks have shown reticence towards providing new lines of credit, saying any application for fresh capital would be treated in the same way as applications from new clients," the Telegraph said. "The two banks inherited the debt from their loans to Swissair, which collapsed into bankruptcy before being partially recreated as Swiss International." Swiss, meanwhile, said the government has agreed to waive fuel tax on its domestic flights, saving the airline about CHF6 million per year. The Telegraph says the carrier is next seeking an export-risk guarantee from the government, which is seen as crucial to getting new financing. "If Swiss International is unable to raise the money, analysts fear it may be heading for the bankruptcy fate of its predecessor, Swissair," the Telegraph said. =========================== U N I T E D K I N G D O M =========================== ABBEY NATIONAL: Morgan Stanley Commends Progress in Portfolio ------------------------------------------------------------- Morgan Stanley has hiked its price target for Abbey National from 472 pence to 526 pence and repeated its 'overweight stance,' according to AFX. The broker said the progress of the bank's Portfolio Business unit is "excellent." It believes that fears over the requirement to re-invest capital in the PFS operation are overdone. Abbey National recently said in its trading statement for the first four months: "Asset sales from the Portfolio Business Unit are running ahead of target, bringing forward associated risk reduction, capital ratio improvement and loss recognition." It disclosed that at the end of May, asset balances had been reduced from GBP60 billion at the year-end to around GBP33 billion, a reduction approaching 45%, and equating to a broadly comparable reduction in risk weighted assets. It also said: "PFS trading profit before tax is running circa 10-15% below a proportionate amount of the pro forma figure given in February for 2002 as a whole. This is consistent with guidance previously provided." ACCIDENT GROUP: GBP11 Million in Unpaid Income Taxes Uncovered -------------------------------------------------------------- The Accident Group failed to remit some GBP11 million collection of employees' income tax and National Insurance contributions since January, according to the Telegraph. Without commenting on The Inland Revenue's move, a spokesman for the no-win-no-fee personal claims firm said: "We are aware that the Inland Revenue may have a claim." A spokesman for the Inland Revenue, meanwhile, said the agency was bound by law not to discuss individual cases, according to the report. He also said that the agency would honor employees' claim providing there had been no connivance by the workers to withhold the insurance contributions. The group, which is currently under administration, fired 2,500 staff earlier due to a series of problems with its business model. The company failed to win as many as 50% of the personal injury cases it had. Although the failure did not directly make the business loss-making, it nevertheless worried insurers, prompting them to put an end to writing new business with it in April this year. BAE SYSTEMS: Boeing Strikes Down Possible Combination ----------------------------------------------------- Boeing dismissed the possibility that it could be the company that would materialize BAE's dream of merging with a U.S. firm. Chairman Phil Condit said recently the U.K. and European defense markets are low priority as far as the company is concerned. He said Boeing would rather develop new commercial airplanes and pursue its U.S. defense systems strategy. "It [the European defense market] is on the list, but it is not at the top," the Telegraph quoted him saying recently. He also said he had never spoken to Tony Blair or Defense Secretary Geoff Hoon about a deal with the U.K. defense group, according to the report. BAE said last week it is interested in merging with a U.S. defense group to gain presence in the region that has the world's largest defense budgets. BAE Systems CEO Mike Turner clarified, however, that no deal was imminent. Weak operating and cash flow outlook, challenges in improving core profitability, and significant cash outlays related to troubled programs led Moody's in February to downgrade BAE System's long- and short-term debt ratings to Baa1 and Prime-2 from A2 and Prime-1, respectively. According to Moody's BAE's profits and cash flows have deteriorated over the past several years due to sizeable charges related to shipbuilding programs in the U.K., the closure of its regional jet business, and losses at Astrium. BRITISH ENERGY: Restart of Two Reactors Delayed Further ------------------------------------------------------- Further to its announcement of 13 June 2003 regarding the anticipated dates for the re-start of Units 3 and 4 at Bruce A, British Energy has been notified by Bruce Power that there will be further delays in the timing of the restart of Units 3 and 4. Bruce Power has informed British Energy that all required submissions in respect of Unit 4 have been made to the Canadian Nuclear Safety Commission, and that regulatory approval to the restart of Unit 4 is expected shortly. However Bruce Power no longer expects to achieve the restart of Unit 4 by 30 June 2003. Furthermore, as a result of this delay, Bruce Power has notified British Energy that it now expects Unit 3 will not restart by 30 July 2003. Under the terms of the sale and purchase agreement announced in December 2002, if the restart of the two Units is delayed beyond 15 June 2003 and 1 August 2003 respectively, subject to certain exceptions, the consideration of C$50M per Unit payable to British Energy decreases on a sliding scale falling to zero after 9 months delay. A further announcement will be made in due course. CONTACT: BRITISH ENERGY Paul Heward, Investor Relations Phone: 01355 262 201 CORDIANT COMMUNICATIONS: Active Wrests Enough Stake to Block WPP ---------------------------------------------------------------- Court administration is now a distinct possibility for Cordiant Communications after Active Value, the company's largest shareholder, upped its stake beyond 25%, enough to block the takeover offer of WPP. In a stock exchange disclosure Wednesday, the fund manager said it bought an additional 2.5 million shares last Tuesday, raising its total shareholding to 25.13%. WPP's takeover proposal needs a 75% endorsement from shareholders in order to pass. It's no secret that Active Value plans to block WPP's offer during the extraordinary general meeting on July 23. The Telegraph believes, however, that such a move would be fatal, as the fund manager could lose everything, including its GBP30 million investment in the company so far. Already, WPP has paid off all Cordiant's debtors; thus it could put the company in administration and receive the assets in return for the debt without paying shareholders, the paper said. An acceptance of the takeover offer, however, would mean debt relief for the company, as WPP has pledged to pay Cordiant's debt in full in return for Cordiant shareholders agreeing to exchange 205 shares for one WPP share. The Telegraph says Active Value's strategy is still unknown, raising suspicions that it "may be hoping to extract a better offer from WPP in return for saving it from the trouble and expense of placing Cordiant in administration." "There is also speculation that a 'white knight' may be waiting to trump WPP's offer. U.S. giant Grey Advertising, which is reported to have been approached for such a role, refused to comment," the Telegraph said. CORDIANT COMMUNICATIONS: Active Value Requests Meeting ------------------------------------------------------ Cordiant announces that it is posting a circular to its shareholders on Wednesday concerning the shareholder meeting requisitioned by a nominee for funds advised by Active Value Advisors Limited, which will be held on 23 July 2003. CONTACT: COLLEGE HILL Phone: +44 (0) 20 7457 2020 Alex Sandberg Adrian Duffield CYTOMYX HOLDINGS: Consolidates Cytocell Acquisition to Save Cost ---------------------------------------------------------------- Cytomyx Holdings Plc announces that following the acquisition of goodwill and assets from Cytocell Limited in March 2003, it is undertaking a consolidation of its operations into the Cambridge site. All operations at Banbury, formerly the premises of Cytocell, will move to t he main Cytomyx facility in Cambridge by August 2003. As part of the consolidation, the company has announced nine redundancies across the two sites. The move will streamline costs and facilitate an efficient integration of the businesses. Chief Executive Mike Kerins commented: "Cytomyx has acquired two exciting businesses in the last nine months and we have also recently reported promising progress in our interim results, taking us close to break-even. This restructuring is a necessary step that will enable us to realize synergies and substantial cost efficiencies for our overall operation, which has expanded rapidly in the last year. The reduction in manpower costs and the inevitable overhead savings associated with merging two sites into one will be of great benefit to the Group. "Our aim is to continue our growth with a more efficiently integrated operation on our Cambridge site, and to achieve profitability at the earliest possible opportunity." As part of the realignment, Dr. Nick Pay the Group's Commercial Director and acting Managing Director of the Banbury site will step down from these roles and revert to Non-Executive director with a continuing role for business development. Specific managers with responsibility for commercial development within the different business units have been appointed. CONTACT: CYTOMYX 6-7 Technopark Cambridge CB5 8PB UK E-mail: info@cytomyx.com Home Page: http://www.cytomyx.com Karen Chandler-Smith Phone: +44 1223 508 191 Fax: +44 1223 508 198 Andrew Marshall Marshall Robinson Roe Phone: 020 7489 2033 ELIZA TINSLEY: Posts Update on Restructuring Program ---------------------------------------------------- Eliza Tinsley released this statement by Chairman Michael Borlenghi recently, along with its latest financial results: The year under review has been an extremely difficult and challenging one for all those engaged in U.K. manufacturing or related services. The need for Eliza Tinsley Group management to take tough decisions and reduce U.K. capacity was crucial for the on-going future of the Group. In the Off-Highway Division, our customers have seen demand for their products shrink as the western world economies moved into decline and teetered on the edge of recession. This, in turn, led to the dual challenges of our plants suffering highly volatile scheduled demand and increasing excess capacity in the U.K. To help mitigate this drain on the Group's resources and profitability the Board decided, in September 2002, to exit the agricultural vehicle sector and, in January 2003, to close its loss making plant in Chesterfield. Both of these actions have now been successfully completed. The cost of this rationalization/re-structuring program was some GBP3.8 million, of which only GBP1.9 million was a cash cost. We believe that much of this cash cost should be recouped following the sale of the now vacant freehold property in Chesterfield, which has a book value of GBP1.55 million. The Chesterfield plant losses of GBP1.5 million per year have been eliminated and its profitable business transferred to other plants. These actions were in line with my guidance to shareholders in last year's Annual Report when commenting that there would be 'a continuation of the program of balancing capacity between the UK sites in the face of on-going margin pressure, thereby avoiding the need to chase volume at any cost and creating unsustainable customer pricing expectations'. In the North American market the Group has continued to diversify its customer base. This, together with the drive towards higher value-added business and resultant new contract wins in the latter part of the year, gives our US operation a broader spread whilst at the same time showing progress in our stated objective to reduce our dependency on any one major customer. As I outlined to shareholders in my Interim Announcement last December, investment in the latest machining technology for large fabrications was made in our Italian plant, Tinsley Group - For.Teq S.r.l, which, whilst the installation process led to a need to sub-contract production for a short period, is already producing returns. A major production contract supplying into mainland Europe has been transferred to For.Teq from the Chesterfield plant and the utilization of the new facility has resulted in the ability to meet an increase of some 70% in the customer's demand under the contract. This investment together with the revenue investment in a large number of prototypes for new products supplied to customers during the year is anticipated to produce positive benefits in the current financial year. The Consumer Products Division generally traded strongly through the period to December 2002. However, as we reported to shareholders in our trading update in March 2003, January and February 2003 saw a significant slowing in the market, which then reversed in March 2003. During the financial year, the Consumer Products Division successfully implemented the introduction of a new GBP0.5m computer system. As well as giving far greater visibility on margins and inventory levels, the new system has removed the Division's dependency on an old bespoke system and, more importantly, allows for growth in the business. The impact and related costs of the closure of the Chesterfield plant and the related trading losses distort the Group's results for the year. The remaining operations produced an operating profit of GBP1.6 million before goodwill amortization (2002: GBP3.6 million) and the Group had net interest charges of GBP0.95 million (2002: GBP1.04 million), reflecting the benefit of falling interest rates and controlled borrowings. After the exceptional closure and related costs and goodwill amortisation, the operating loss was GBP4.2m (2002: profit GBP1.7m). Pensions The good progress on managing the Group's pension liability, as outlined in my interim statement, has continued in the second half of the year. The Group has paid GBP425,000 in additional contributions into the final salary pension plan during the year. People All employees of Eliza Tinsley Group have again continued to show great dedication to the Company and have responded professionally to the reduction in our cost base and the hard decisions that have been taken. On behalf of the Directors and shareholders, I would like to thank them all for their tireless efforts in what has been a difficult year. Outlook In overall terms, trading in the early months of this new financial year has been in line with the Board's expectations with increased activity in America and mainland Europe looking likely to offset the potential slowness of some areas in the UK Off-Highway sector. Trading in the Consumer Products Division is also in line with expectations. With the elimination of the GBP1.5m trading losses at the Chesterfield plant from the end of May 2003, the Group is looking forward to an improved trading performance in the current year. Our confidence in a steady recovery this year supports the logic behind the Board recommending the maintained final dividend for the year being reported. Dividend The Board is recommending a final dividend of 1.5p (2002: 1.5p) that, together with the interim paid of 0.8p makes 2.3p for the year (2002: 2.3p). This dividend, which is subject to shareholders' approval at the Annual General Meeting on 12 September 2003, will be paid on 1 October 2003 to all shareholders on the Register on 5 September 2003. To See Financial Statements: http://bankrupt.com/misc/Eliza_Tinsley_Update.htm CONTACT: ELIZA TINSLEY Andrew Hall, Chief Executive Paul Hill, Group Finance Director Phone: 01384 263123 Mobile: 07831 255511 CITIGATE DEWE ROGERSON Fiona Tooley Phone: 0121 455 8370 Mobile: 07785 703523 HILL & TYLER: Joint Administrators Offer Business for Sale ---------------------------------------------------------- By order of J.P.W. Harlow Esq., BSc, FIPA, FABRP & kK. Mistry Esq., BSc., FCA., MIPA of Harlow Khandia Mistry, the joint administrators of Hill & Tyler Limited offers for sale the business and assets of the commercial color printer and finisher servicing mail order companies, banking and financial institutions, retailers and other industries. Principal features include: long leasehold premises in Nottingham, turnover circa GBP7.25 million, good forward order book, excellent customer base, six color and five color presses (web reel-reel of related equipment). CONTACT: MALCOLM GOOD, PHILIP DAVIES AND SONS Edward House, 133 Bramcote Avenue Nottingham NG9 4EY Phone: 0115 943 6444 Fax: 0115 943 6555 E-mail: sg@pdsauctioneers.co.uk LISTER PETER: Joint Administrators Offer Business for Sale ---------------------------------------------------------- The joint administrators, Lee Manning and Andrew Pepper, seek expressions of interest for investment in the business and assets of Lister Peter UK Limited (in administration). Principal features are: long established experience in manufacturing diesel engines and generator sets up to 75 hp; extensive design, development and engineering support functions; new range of emission compliant engines for USA and Europe; recognized brand name with Worldwide distribution; profitable at operating level; strong order book; extensive stock of components and aftermarket spares; approximately 250 employees; turnover in 2002 GBP35.5 million; leasehold factory premises approximately 205,000 sq. ft. in Dursley Gloucestershire. CONTACT: KROLL 10 Fleet Place London EC4M 7RB Fax: 020 7029 5001 E-mail: cleeds@krollworldwide.com hfoster@krollworldwide.com ROBOTIC TECHNOLOGY: Still Cautious about Market Place Outlook ------------------------------------------------------------- At the AGM of Robotic Technology Systems on Wednesday, the company made this statement on current trading and its view of market conditions as it approaches the end of the first half: We are pleased to report that order intake in our largest US-based business has improved as the year has progressed. Order input in the US in the second quarter of the current year will be higher than the comparative quarter in 2002 and is already the second highest quarterly intake since the third quarter of 2001, with good wins in the Assembly Systems, Build-to-Print and Tooling Systems business groups. Its order backlog at the end of the current quarter will therefore be some GBP4 million higher than at the end of the first quarter. Whilst customers are still cautious, confidence in the US industrial market appears to be slowly improving and we are starting to see opportunities of a higher value than for some months. The lower breakeven point of our US operations, resulting from the decisive and substantial cost reduction program executed over the past year, is now within reach at these order input levels and should enable a substantial turnaround from the large losses incurred in 2002. We are also pleased to report continuing progress in the UK-led businesses in Life Science and Nuclear Solutions which both had record performances in 2002. Life Science, the Group's highest margin business, booked orders in the first half of 2003 in line with forecast and its current order backlog stands at GBP13 million. A large Swiss pharmaceutical company has been added to the impressive list of global customers with two orders being received in the first half. Robotic Technology Systems Life Science recently entered into a partnership with Syrrx Inc, a drug discovery company based in California which is directing its efforts towards developing therapeutics to treat cancer, metabolic diseases and inflammation, to develop and market an automated high throughput system for use in structural biology applications. The product, which will be known as the HTSB FactoryTM, will aim to enhance greatly the performance of chemists in this area of drug discovery. Syrrx, has partnered with RTS Life Science to develop the next generation of automation for protein crystallography because of Robotic Technology Systems' experience in providing automated solutions for compound management, cell culture and high throughput screening to the pharmaceutical industry. In the past, protein crystallography process that will be used was repetitive, slow and hampered by lack of automation. Having transformed high throughput screening automation over the last four years, Robotic Technology Systems believes that this partnership could do the same in this field. Nuclear Solutions business in the UK continues to progress. A long term and prestigious contract to provide design services to BNFL for the B38 Hazard Reduction Project at Sellafield has been awarded to an alliance headed by Robotic Technology Systems Nuclear Solutions. This represents a significant advance for our Nuclear Solutions Business Group as design solutions had previously been provided by the Alliance members and others on a piecemeal basis. The Nuclear Solutions business unit based in the US has recently won its first significant order at the Hanford nuclear site and is busily quoting on a range of other opportunities at Hanford and other sites including Savannah River, where RTS is well established, which are anticipated to be let over the next few months. We are pleased to report that our UK-based Flexible Systems business, which specializes in advanced robotic applications, is making significant progress in its target market which is technology based packaging and product handling applications for the food industry. First orders have been won during the year from two major UK companies including one for GBP750,000 from a national bakery group for intelligent bread tin handling. The Group's proprietary software technology, which is embedded in our Vision Integration Platform VIPTM and FlexMillTM products, is now firmly established in the UK following its successful transfer from the Group's Finnish operations which were sold in late 2002. In summary, the UK-based businesses in Life Science and Nuclear Solutions continue to perform strongly and Flexible Systems is progressing in line with expectations. More importantly, the trading conditions for our US-based businesses have shown some signs of improvement over recent months and the cost savings anticipated from the rationalization program in our US operations of some GBP8 million annualized are on track. However, whilst we are pleased with the progress that has been made so far this year, we will continue to be extremely cautious in our view of the market place, especially so in the US, until there is more evidence of a sustained improvement. We will continue therefore to maintain tight cash and cost controls throughout the group. CONTACT: ROBOTIC TECHNOLOGY SYSTEMS PLC Phone: 0161 777 2000 Phil Johnson, Chief Executive Officer David Timmins, Group Finance Director COLLEGE HILL Matthew Smallwood Phone: 020 7457 2020 SILENTNIGHT HOLDINGS: Gives Update on State of Business ------------------------------------------------------- Silentnight Holdings Plc at its Annual General Meeting held on June 25, 2003 issued this statement regarding trading: As reported within the preliminary announcement, on 1st May 2003, trading conditions in our bed division continue to be difficult. In line with a declining market our first half order book is down year on year, although we remain hopeful of a slight pick up for the second half of our financial year. On top of this, we are experiencing an unprecedented level of margin pressure from our key customers that is exacerbating the effects of an already difficult trading climate. The rationalization and re-launch plans for our branded furniture businesses are progressing. The closure of the Ducal factories in Andover will be complete as planned in July but the relocation of our cabinet making facility in Edmonton has been delayed for three months and is now scheduled for September 2003. The closure and relocation of Parker Knoll's upholstery factory at Chipping Norton has been further delayed from January to July 2004. Despite these setbacks, we are maintaining our forecast to expend some GBP17 million in exceptional reorganization costs of which GBP1 million will be spent next year. CONTACT: SILENTNIGHT HOLDINGS Nino Allenza, Chief Executive Phone: 01282 811177) WAREHOUSING BUSINESS: Administrators Offer Business for Sale ------------------------------------------------------------ The joint administrators of a warehousing business offer for sale, as a going concern, the business and assets of the Stoke on Trent based warehousing business. The principal features of the operation include: freehold site of c.7.1 acres and 118,000 sq. ft. of buildings close to the A500/A50 Stoke-on-Trent; principal activities are warehousing, distribution, rental of self-contained units, vehicle parking and outside storage; income from third-party licenses currently is at cGBP107 K pa; residential development potential (planning consent already granted on part); turnover of cGBP1.0 million pa with potential for growth. CONTACT: KPMG CORPORATE RECOVERY 2 Cornwall Street, Birmingham, B3 2DL Home Page: http://www.kpmg.co.uk Contact: Richard Voice Steven Newey Phone: 0121 232 3278 Fax: 0121 335 2501 WINCHESTER ENTERTAINMENT: Restructurings Begin to Show Results -------------------------------------------------------------- Winchester Entertainment Plc releases this preliminary results for the year ended March 31, 2003. The highlights are: (a) Turnover GBP5.1 million (2002: GBP6.5 million) (b) Pre-tax loss GBP11.2 million (2002: GBP8.3 million) (c) Loss per share 40.2p (2002: 27.4p) (d) Net assets 53p per share (2002: 93p per share) (e) Significantly reduced losses for 2nd half year of GBP2.2 million compared to GBP9.0 million in first half year. (e) Improved cash position at year's end of GBP5 million (30th September 2002: GBP2.9 million) Operational Summary (a) Option agreed with Paramount Pictures for 'Daughter Queen of Sheba' and with Stratus Film Company LLC for 'Forever and a Day' from Winchester's U.S. film slate. (b) Acquisition of worldwide distribution rights to 'Red Dwarf' -- pre-sales and film funding being secured. (c) Successful release of four films, including 'Lantana' through UK distribution business. Universal video/DVD deal completed. (d) Five films already acquired by Winchester, are due for release through UK distribution in 2003 including 'The Man who sued God' with Billy Connolly. (e) Successful resolution of debt owed by German tax fund. (f) Disposal of loss making subsidiary, Optical Image Limited. (g) Proposed acquisition of Cobalt Pictures Ltd funded through shares, as announced on 17 June 2003. Huw Davies, Chairman of Winchester Entertainment plc said: "There is reason to believe that our interim results announced in December 2002 marked the low point in the Company's fortunes. The remedial action taken to address the losses of the last two years is beginning to show results. Winchester, with its strong balance sheet, clear strategic vision and feature film infrastructure, is in a prime position to benefit from any improvement in market conditions. Nevertheless, in the short term your management team believes that the next twelve months with not be easy for the business: indeed the year to 31 March 2004 is still likely to see a modest loss, whilst foundations are laid for future prosperity." To See Financial Results: http://bankrupt.com/misc/Winchester_Entertainment.htm CONTACT: WINCHESTER ENTERTAINMENT PLC Phone: 020 7851 6500 Gary Smith, Chief Executive Shawn Taylor, Group Operating and Financial Officer * Customers of Firms Declared in Default Urged to File Claims ------------------------------------------------------------- The Financial Services Compensation Scheme is encouraging consumers who may have lost money as a result of their dealings with any one of four firms recently declared in default by the Scheme, to claim compensation. Declaring a firm in default opens the way for anyone who has lost money, as a result of dealings with such a firm, to make a claim for compensation to FSCS. The limit for investment compensation is GBP48,000. Consumers who believe they may have a claim, should contact the Scheme on +44 (0)20 7892 7300. The declaration of default is the final part of a process whereby a regulated firm (for example, an independent financial adviser) is deemed unable to pay claims for compensation against it. This is usually because it has insufficient assets, for example, because it has ceased trading or is insolvent. FSCS is the single compensation scheme covering investments, deposits and insurance. It provides a safety net for consumers who have claims against regulated firms that are unable to pay them. A list of the four investment firms is attached, and a list containing the full address of each of the firms is available from FSCS' website at http://www.fscs.org.uk/. Consumers can also use the default database on the website to check to see if a firm they have dealt with previously has already been declared in default. FSCS became the single compensation scheme in the financial services sector on 1 December 2001, when the Financial Services and Markets Act came into force. All previous compensation schemes, including the Investors Compensation Scheme, ceased to operate at this time. Default Declarations by Financial Services Compensation Scheme Midlands: Fairbairn Financial Services Limited, Grantham Scotland: Corrie Realisations Limited, formerly known as Kidsons Impey Financial Services (Edinburgh) Limited, Edinburgh South West: Ernest Bertie Financial Services Limited, Yelverton West: KCC Insurance Services (Life & Pensions) Limited, Newbury ********* 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. 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 publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *