/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/030704.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, July 4, 2003, Vol. 4, No. 131 Headlines F I N L A N D BENEFON OYJ: Reports Availability of Listing Prospectus QPR SOFTWARE: Enters Into Financing Pact to Improve Balance Sheet SENTERA PLC: Concludes Personnel Negotiations Related to Merger F R A N C E ALSTOM: Likely to Accept Areva's EUR1 Billion Offer for Unit ALSTOM: British Workers Join Europe-wide Protest in France ALSTOM: Prime Minister Offers Help to Prevent Job Losses ALSTOM: Expects More Orders During the First Quarter ALSTOM: Suspends Dividend Payments This Year Due to Losses GROUPE BULL: Standard & Poor's Lowers ADEF Short-Term Rating LE PETIT: Loch Fyne Buys Business Out of Administration VIVENDI UNIVERSAL: Messier Seeks to Clarify Ruling on Severance G E R M A N Y ADCON RF: Dutch Management Takes Over After Shares Buyout BAYER AG: Obtains New EUR3.5 Billion Credit Facility from Banks GERLING-KONZERN: Skips Dividend; Bond Interest Payments Deferred INTERSHOP COMMUNICATIONS: Revises Expectations for 2003 WESTLB AG: To Continue International Strategy, Says Bloomberg I T A L Y FIAT SPA: Unloads Aerospace Business to Carlyle and Finmeccanica N O R W A Y RAUFOSS ASA: Board Pushes to Continue Takeover Talks With Umoe S W E D E N BOLIDEN LDM: Restructures to Counter Weak Demand for Products SCANDINAVIAN AIRLINES: Goes Online to Increase Revenues S W I T Z E R L A N D SWISS LIFE: Ratings Affirmed and Removed From CreditWatch U N I T E D K I N G D O M BRITISH AIRWAYS: Increase in June Passenger Traffic Likely BRITISH ENERGY: Consolidating Peel Park Ops to Reduce Costs EASTWOOD CARE: Invitation to Meeting of Unsecured Creditors EDINBURG FUND: Reviews Options & Considers Possible Takeover HEREDITIED LIMITED: Joint Administrative Receiver Sells Business IMPERIAL HOME: Ernst & Young Offers Business for Sale INTERCARE GROUP: Warns of Lower-than-Expected Full Year Results MITCHELL SHACKLETON: Administrators Put Business Up for Sale N BROWN: Braces Investors for Disappointing Development PAPERMAC BUSINESSES: Ops Offered for Sale as a Going Concern PORTER BLACK: Under Administration; Business for Sale SOMERFIELD PLC: Former Director May Offer Bid, Reports Say SOMERFIELD PLC: Reports Improved Financial Results SUNLEY TURIFF: Jobs at Subsidiary Saved at the Last Minute YELL FINANCE: Ratings Under Review for Possible Upgrade YOUNG BARBER: Business and Assets Up for Sale ZWEMMER HOLDINGS: Joint Administrators Offer Business for Sale ********* ============= F I N L A N D ============= BENEFON OYJ: Reports Availability of Listing Prospectus ------------------------------------------------------- The listing prospectus of the directed share issue decided by the shareholders' extraordinary meeting on June 26, 2003 has now been made public and is available at HEX Gate and at the head office of the company. Benefon Oyj Jorma Nieminen Chairman of the Board ***** The company filed an application for statutory corporate reorganization in April, including radical cost-cutting measures, and debt reorganization. Currently, it is seeking equity funding for increasing cash margin through a 1-to-2-million share issuance to be offered to all shareholders. Benefon said in a statement this week: "The ordinary Shareholders' Meeting of May 17, 2002, authorized the Board of Directors, within the time limit of one year from the meeting granting the authorization, to decide on the increase of share capital by rights issue, issue of options or convertible bonds in one or more installments such that in the issue of convertible bonds or options or in the rights issue, in total a maximum of 1.930.977 new investment shares with a book parity value of EUR0.34 (not the exact value) per share, shall be entitled to be subscribed for. The share capital may, based on the authorization, therefore be increased by a maximum of EUR649.533,97. This authority was used in the directed share issue of July 2002 for 104,800 shares." QPR SOFTWARE: Enters Into Financing Pact to Improve Balance Sheet ----------------------------------------------------------------- In order to improve the financial position and the liquidity of the company, the board of QPR Software Plc has in its meeting on July 1, 2003, decided on a financing arrangement and approved the agreements with regard to the arrangement, which have immediately after the completion of the board meeting, been signed by the parties. As a result of the financing arrangement, the company after the general meeting has approved the proposals provided by the board and the transaction with company shares connected with the arrangement have materialized, getting additional funds of EUR615.000. In addition, provided that options in the option program will be fully converted into shares, the company gets additional funds at a maximum of EUR427.500 if all conversion from option to share takes place no later than November 30 2003, and at a maximum of EUR472.500 if all conversion from option to shares takes place after November 30 2003, but prior to March 10 2004. As part of the financing arrangement, QPR Software Plc has decided to sell 5.000 Mawell Ltd. shares to Kauppamainos Ltd. and, in addition, offered to Kauppamainos Ltd. a buy-option for additional 6.000 shares in Mawell Ltd. The company gets EUR165.000 for the sales of the shares and, provided that the options will be converted into shares, additional EUR198.000. As part of the financing arrangement Antti Kosunen, Pohjolan Rahoitus Ltd, Vesa-Pekka Leskinen, Asko Piekkola, MAS -Management Accounting Services Ltd and Innocap Ltd grant to QPR Software Plc a loan of EUR450.000, which the board of the company has decided to draw out. As a security for the loan, QPR Software Plc will pledge, in favor of the lenders, the credit balance of EUR480.000 from Business Game Factory Ltd for the selling price, as well as 10.500 shares in Mawell Ltd. QPR Software Plc and QPR Business Games Ltd have agreed upon dividing the credit balance for the selling price between QPR Software Plc and QPR Business Games Ltd. as: Effective July 1, 2003, all installments added with possible penalty interest from Business Game Factory Ltd for the selling price will be paid to QPR Software Plc until QPR Software Plc's share for the selling price (EUR480.000) added with possible penalty interest has fully been paid. QPR Software Plc will offer the lenders Antti Kosunen, Pohjolan Rahoitus Ltd, Asko Piekkola, MAS -Management Accounting Services Ltd and Innocap Ltd, a subscription for a maximum 1.125.000 option-rights, that entitle a subscription for a maximum 1.125.000 shares, at a book-value of EUR0,11. The price for subscription for shares will be EUR0,38 per share if the subscription takes place no later than November 30 2003, and EUR0,42 per share if the subscription takes place no later than March 10, 2003. The purpose of the arrangement is to improve the financial situation of the company. When materialized, the company is able to pay off all debts under payment plan after which the cash situation in the company can be described as normal. The loan arrangement and sales of 5.000 shares in Mawell Ltd. have no impact on the company profit, as the sales of the shares are conducted at book-value. The effect of these actions on the solidity and balance sheet structure are also minor. However, the solidity of the group will improve by 8%, provided that the option-program mentioned above will result in full subscription for shares. After having sold the above-mentioned 5.000 shares in Mawell Ltd., 16.000 shares will remain in its possession, which is 15.3% of the whole share capital and number of votes. The book value of the shares is EUR528.000. The general meeting of the company has authorized the board to sell the shares under best possible terms and conditions, as deemed by the board. QPR Software Plc Teemu Malmi Chairman of the Board CONTACT: QPR SOFTWARE PLC Sornaisten rantatie 27 A, 3. kerros 00500 Helsinki Finland Phone: +358 (0)9 4785 411 Home Page: http://www.qpr.fi Fax: +358 (0)9 4785 4222 E-mail: info@qpr.com Contact: Teemu Malmi, Chairman of the Board Phone: +358-(0)40-510 0827 SENTERA PLC: Concludes Personnel Negotiations Related to Merger --------------------------------------------------------------- Personnel negotiations related to the combination of Sentera Plc and Solagem Oy, as reported by Sentera Plc on May 28, 2003, have been concluded. The negotiations that were held in Sentera Plc, Iocore Finland Ltd. and Solagem Oy were carried out in close cooperation between the companies. During the negotiations it was discovered that overlapping operations and possible personnel reductions related to them affect fewer people than estimated. During the personnel negotiations the companies evaluated the need for personnel reductions based on financial and production- related reasons and for reasons due to the reorganization of operations within the new company. The overall need for personnel reductions within the entire group have led to the termination of four employees and temporary lay- offs of two employees. CONTACT: SENTERA PLC Markku Toivanen, Acting Chief Executive Officer Phone: +358 9 374 7800 E-mail: markku.toivanen@solagem.com Home Page: http://www.iocore.fi =========== F R A N C E =========== ALSTOM: Likely to Accept Areva's EUR1 Billion Offer for Unit ------------------------------------------------------------ French state-owned power company Areva could acquire Alstom's transmission and distribution unit, with its EUR1 billion (US$1.16 billion) offer, the Financial Times said. Although Areva's offer is at the lowest end of the range of valuations by CSFB and Toulouse et Associes, who estimated the unit at between EUR1 billion and EUR1.3 billion, the amount is still higher than the bid of private equity groups CVC and Permira, which reportedly valued the business at about EUR700 million-EUR800 million. Cable manufacturer Nexans might offer a bid, but its ability to finance the deal has been often questioned by analysts. It is noted that the original assessment of the unit by analysts values the division between EUR1.5 billion and EUR1.7 billion. The proposal now depends on the results of the due diligence on the transmission and distribution unit, the report said. Sources close to the deal say that if the deal goes through, Areva will restructure Alstom's unit, sacrificing an estimated 5,000 jobs. Alstom is currently disposing assets to offset an expected EUR1.3 billion loss in the year to March 2003. The transmission and distribution unit sale is part of a drastic restructuring plan aimed at reducing its debt load from EUR5 billion to EUR2 billion-EUR2.5 billion by March 2005. Earlier this year, it sold its turbines business to Siemens for EUR1 billion. Patrick Kron, the recently appointed Alstom chief executive, is expected to unveil Areva's bid during his first general meeting with shareholders. ALSTOM: British Workers Join Europe-wide Protest in France ---------------------------------------------------------- Alstom workers from the firm's Birmingham plant joined the protest march of more than 7,000 Alstom workers from Germany, France, Spain and Italy, in Paris near the Champs Elysse. The British employees, numbering hundreds, combined their fury on the company's plan to end train manufacturing at the Midlands site, with the dissent of other workers over a lack of information and consultation rights regarding the firm's decisions. The protest was launched as shareholders convene for an annual meeting at Alstom's international headquarters in the French capital, according to Ananova. Alstom plans to end train manufacturing at the Midlands site because of a lack of orders, and to switch production of London Underground trains to Spain. This puts in the balance 1,400 jobs in Britain. A total of 5,000 are also under threat across Europe. According to the report, Derek Simpson, joint general secretary of Amicus, reiterated the organization's warning of possible asset divestments and job cuts in the U.K. as the company transfers production back to France. "This is now coming true," Mr. Simpson said. ALSTOM: Prime Minister Offers Help to Prevent Job Losses -------------------------------------------------------- Prime Minister Tony Blair has offered government support to Alstom, the French train maker badly affected in recent years by faulty gas turbines, the bankruptcy of a major shipping client and a slump in the power market. The Department of Trade and Industry is ready to meet representatives of the company and trade unions "to see what we can do," Mr. Blair told the House of Commons, according to AFX. The offer was aimed at preventing job losses--The Times said--as the firm plans to close its Birmingham factory, threatening the jobs of more than a thousand employees. "In the end these are decisions that have to be taken by the company, but we will give whatever help we possibly can." "At the present time we are in discussion with the company about their restructuring plan and I hope that we can get a positive outcome," he said. The Times said the help is likely to involve Regional Development Agencies working with Alstom in its restructuring program. Alstom tried to convince angry shareholders at its annual meeting on Tuesday to back a second rights issue in two years, scaring them with the possibility that their investments could further diminish without the issue. The company wants to use the proceeds of the offering to refinance a EUR1-billion (GBP700 million) lifeline. Alstom creditor banks threatened to withdraw the funding should the company fail to raise EUR600 million of additional funding. Alstom said, according to The Times, a "no" vote on the rights issue could force it into bankruptcy. ALSTOM: Expects More Orders During the First Quarter ---------------------------------------------------- Speaking at the Annual General Meeting in Paris, ALSTOM's Chairman and Chief Executive Officer Patrick Kron gave the following update on trading and the execution of the Action Plan announced on 12 March: "In our full-year results announcement on 14th May we reported a slowdown in orders during fiscal year 2003, particularly during the final quarter of the year, reflecting the weak global economy, tightening financial markets and sharp deterioration in the worldwide power generation equipment market. While these difficult market trends continue, we expect order intake for the first quarter 2003/04, on a comparable basis, to be above the preceding quarter's level (EUR3.4 billion), although well below the high level registered during the equivalent period last year (EUR5.2 billion). Detailed sales and orders figures for the first quarter 2003/04 will be published on July 18. We are actively implementing the action plan. We have already secured EUR1.5 billion proceeds from disposals. In the sales process of our Transmission & Distribution Sector, we are at the stage of receiving definitive offers. We have just received one such offer which we will study over the coming days. On the basis of an analysis of all the offers received, we will decide how to proceed. Furthermore, the actions aiming at improving our operational performance have been launched." ALSTOM will publish a press release at the end of the Annual General Meeting covering the main resolutions adopted. CONTACT: ALSTOM S.A. Investor relations J-G. Micol/A. RebiSre Phone: +33 1 47 55 26 34 E-mail: investor.relations@chq.alstom.com ALSTOM: Suspends Dividend Payments This Year Due to Losses ---------------------------------------------------------- Alstom's annual shareholders meeting was held Wednesday chaired by Patrick Kron, Chairman and Chief Executive Officer. Shareholders approved all the proposed resolutions. In particular, shareholders have adopted: (a) the 2nd resolution related to the approval of the modified consolidated accounts, (b) the 12th resolution related to the reduction of the nominal value of the shares from EUR6 to EUR1.25, (c) the 13th resolution authorizing the Board of Directors to increase the share capital of the Company by the issue of shares, with maintenance of preferential subscription rights. Patrick Kron commented: "The capital increase, which our shareholders have just approved, is an important step in our program to strengthen the balance sheet of the Company; it will be implemented when we have adequate visibility on the disposal of our Transmission & Distribution Sector and on the refinancing of the part of our debt due to mature in the course of next year." As a result of the losses registered during the fiscal year 2002/2003, no dividend will be paid to shareholders for this fiscal year. CONTACT: ALSTOM S.A. Investor relations J-G. Micol/A. RebiSre Phone: +33 1 47 55 26 34 E-mail: Investor.relations@chq.alstom.com GROUPE BULL: Standard & Poor's Lowers ADEF Short-Term Rating ------------------------------------------------------------ Standard & Poor's Ratings Services said it had lowered its ADEF short-term French rating scale on the French IT company Groupe Bull (Bull) to 'T3' from 'T2', following the company's announcement that it was unlikely to fully repay its outstanding EUR200 million convertible issue due in 2005. Bull suffers from a shareholder deficit of over EUR700 million and is currently seeking new capital in order to restore some balance sheet strength. Bull's EUR450-million loan from the French state was due at the end of June 2003, but French government recently announced that it would extend the maturity until recapitalization talks with investors were completed. As of today, no clear deadline regarding the loan repayment has been announced. Bull's operating performance has greatly improved since its last restructuring in June 2002. After years of losses, the company recorded an operating profit at the EBIT level in second-half 2002, and should continue to do so in first-half 2003. However, Bull is unlikely to have sufficient financial resources to repay its EUR450 million loan at the end of the ongoing recapitalization negotiations in the near-to-medium term. The company has also stated that holders of its convertible bonds could face a repayment made on terms materially below par. As part of its ongoing balance sheet restructuring, Bull could launch a coercive distressed exchange offer for its outstanding debt, and ultimately, if all other options fail, face bankruptcy proceedings. LE PETIT: Loch Fyne Buys Business Out of Administration ------------------------------------------------------- Argyll-based Loch Fyne Restaurants has entered into agreement to take over operations of Le Petit, the brasserie chain that was put under administration last April, for GBP1.125 million, online news agency Leisure Opportunities said. Loch Fyne will take over Chef Raymond Blanc's four Le Petit Blanc's restaurants in Birmingham, Cheltenham, Manchester and Oxford. It will have Mr. Blanc continue a major involvement in the business. The chef is positive that Le Petit would benefit in working with a "proven restaurant company that has expanded profitability throughout the U.K." The deal is also considered a significant development for Loch Fyne, the restaurant operator which saw its estate grow from three sites to 21 in four years. Mark Derry, group managing director, said: "We have been seeking a second brand to complement the Loch Fyne business for some time. The Le Petit Blanc opportunity is perfect for us." Le Petit went into receivership due to a history of accumulated losses. TCR-Europe reported that the business has lacked investment for some time and a significant amount of money would be needed to fund a turnaround for the company. CONTACT: LOCH FYNE Oysters Limited Clachan, Cairndow, Argyll Scotland PA26 8BL Phone: +44 (0)1499 600264 Fax: +44 (0)1499 600234 E-mail: info@Loch-Fyne.com VIVENDI UNIVERSAL: Messier Seeks to Clarify Ruling on Severance --------------------------------------------------------------- Former Vivendi Universal chief executive Jean-Marie Messier is seeking to clarify his claim to some US$23.7 million (EUR20.6 million) in severance from his former employer. Reuters, citing court documents, said Mr. Messier, who racked up debts for Vivendi during his term, has petitioned a New York court to confirm a ruling regarding the payment package. His move came after an arbitration ruling concerning the remuneration circulated in news reports on Monday. Vivendi's new bosses led by current CEO Jean-Rene Fourtou promised to block the payment saying in a statement it would examine "all available legal actions," both in France and the U.S. to void the agreement that led to the severance package. A Vivendi spokeswoman declined to comment beyond Tuesday's statement, according to the report. The petition was filed in New York State Supreme Court. ============= G E R M A N Y ============= ADCON RF: Dutch Management Takes Over After Shares Buyout --------------------------------------------------------- In the course of a management buy out of the Dutch subsidiary Adcon RF Technology B.V., Adcon Telemetry AG retains a 30% shareholding and the current Dutch management takes over company responsibility and 70% of the shares. The business focus of the company continues to be at Audio and IEEE 802.15.4 products. By keeping a share in the Dutch company, Adcon Telemetry AG stays in close connection with the technological know-how of Adcon RF Technology B.V., with no future financial risks, especially the cost risks occurred in the past, influencing the development of the Adcon group. Through the management buyout, the management of Adcon RF Technology B.V. gains the maximum flexibility in developing and selling its technology solutions. CONTACT: ADCON TELEMETRY AG Felix Primetzhofer, Chief Executive Officer Phone: +43 2243 38280 DW 31 E-mail: f.primetzhofer@adcon.at Homepage: http://www.adcon.com HOCHEGGER FINANCIALS Andrea Wolbitsch Phone: +43 1 504 69 87 DW 41 E-mail: a. woelbitsch@hochegger.com BAYER AG: Obtains New EUR3.5 Billion Credit Facility from Banks --------------------------------------------------------------- Bayer has arranged a credit facility of EUR3.5 billion with an international consortium of more than 30 banks. The money, if needed, would be used for general corporate financing purposes. Appointed as lead managers are Banc of America Securities Limited, Citigroup, Credit Agricole Indosuez, Deutsche Bank AG and HSBC Bank plc, which have also involved further selected partner banks of Bayer AG. The syndication was substantially oversubscribed. This credit facility replaces the commercial paper backstop facility, also of EUR3.5 billion, agreed upon a year ago, under which Bayer did not draw. The new transaction comprises two tranches of equal volume with maturities of 12 months and five years respectively. Bayer has also signed an asset-backed securities transaction of up to EUR600 million, arranged by ABN AMRO, on the revolving sale of trade receivables. This transaction provides Bayer with additional competitive financing via the highly liquid A1+/P1 commercial paper market. Both agreements secure long-term sources of finance for the Bayer Group. GERLING-KONZERN: Skips Dividend; Bond Interest Payments Deferred ---------------------------------------------------------------- In compliance with the rules and regulations of the Luxembourg Stock Exchange, Article 9, Gerling Globale Finance Alpha B.V., Amsterdam, makes the announcement: Because of the lack of distributable profits no dividend will be declared in respect of any class of shares of Gerling-Konzern Globale Ruckversicherungs Aktiengesellschaft (GGRe), the guarantor of the EUR220.000.000 subordinated step-up fixed/floating rate bonds, at the general meeting of GGRe resolving on the payment of a dividend for the business year 2002. Therefore, Gerling Global Finance Alpha B.V., Amsterdam, intends to make use of its contractual right to defer interest payments pursuant to sec. 6 (3) of the terms and conditions of the bonds. INTERSHOP COMMUNICATIONS: Revises Expectations for 2003 ------------------------------------------------------- Intershop Communications AG announced revised revenue and EBITDA expectations for fiscal year 2003, ending December 31, 2003. Intershop also announced significant restructuring initiatives. Due to lower than expected second quarter 2003 total revenue of approximately EUR6 million, Intershop expects to generate fiscal year 2003 revenue in the range of EUR20 million to 25 million as well as negative EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately EUR20 million. The company had previously expected total fiscal year 2003 revenue to be slightly lower than last years total revenue of EUR45.1 million and a negative EBITDA of approximately EUR5 million. Due to weaker than expected revenue in the first half of 2003 of approximately EUR12.4 million, lower expectations for the remainder of the fiscal year 2003, and an available cash balance of approximately EUR3 million as of June 30, 2003, Intershop is implementing several significant restructuring. In line with revised revenue expectations for fiscal year 2003, Intershops restructuring initiatives include a significant reduction in worldwide headcount of 445 employees as of June 30, 2003. Headcount reductions will impact most areas of the company, with the least impact expected in research and development as the company seeks to preserve its core technological expertise. To serve the international markets, the company will foster indirect sales through local distributors. In addition to these initiatives, Intershop continues to explore alternatives to strengthen its cash position. As of June 30, 2003, Intershop expects to record cash, cash equivalents, marketable securities, and restricted cash totaling EUR10.5 million, as compared to EUR16.7 million as of March 31, 2003. Intershop anticipates that approximately EUR5 million in currently restricted cash will become unrestricted in the near future. Intershop will report complete financial results for the second quarter of 2003 and will provide further details on the restructuring measures on July 31, 2003. About Intershop Intershop Communications (Nasdaq: ISHP; Prime Standard: ISH1) is the market leader in Unified Commerce Management, which can create strategic differentiation for companies by integrating online commerce processes across the extended enterprise. Intershop Enfinity, based on the best practices of Unified Commerce Management, enables companies to manage multiple business units from a single commerce platform, optimize their business relationships, improve business efficiencies and cut costs to increase profit margins. By streamlining business processes, companies can achieve a higher return on investment at a lower total cost of ownership, increasing the lifetime value of customers and partners. Intershop has more than 300 enterprise customers worldwide in a broad range of industries, including multichannel retail and high technology. Customers including Hewlett-Packard, Bosch, BMW, TRW, Bertelsmann, Otto and Homebase have selected Intershop's Enfinity as the cornerstone of their global online commerce strategies. More information about Intershop can be found on the Web at http://www.intershop.com CONTACT: INTERSHOP COMMUNICATIONS Investor Relations and Press: Klaus F. Gruendel Phone: +49-3641-50-1307 Fax: +49-3641-50-1002 E-mail: k.gruendel@intershop.com Home Page: http://www.intershop.de WESTLB AG: To Continue International Strategy, Says Bloomberg ------------------------------------------------------------- WestLB AG's supervisory board and management agreed to maintain the bank's international focus while locally providing services to savings banks and medium-sized companies, Bloomberg said citing a faxed statement from the firm. The announcement follows a review of the state-owned bank's strategy after a disastrous expansion into investment banking last year that caused it a EUR1.7-billion (US$1.96 billion) loss for the period. The report also said the supervisory board confirmed the appointment of Johannes Ringel as chief executive officer until a replacement is found for Juergen Sengera, who resigned last week. Mr. Sengera left his office at about the same time as the disclosure of the German financial services watchdog's report on its investigation regarding the funding of U.K. company Box Clever by a London-based unit of WestLB. The transaction led to EUR430 million in writedowns. Bloomberg also cited the company saying its operating profit before risk provisions in the first five months of the year rose by EUR350 million to EUR476 million as personnel costs declined and interest income increased. ========= I T A L Y ========= FIAT SPA: Unloads Aerospace Business to Carlyle and Finmeccanica ---------------------------------------------------------------- The Carlyle Group and Finmeccanica have signed an agreement for the acquisition from Fiat Group of the aerospace businesses of FiatAvio SpA, the leading Italian manufacturer of aircraft and naval engines and a leader in space propulsion. The acquisition will be carried out through a special purpose vehicle, Avio Holding SpA, which will be 70% owned by The Carlyle Group and 30% by Finmeccanica. Avio Holding will purchase the entire share capital of Avio SpA, to which all aerospace businesses of FiatAvio have been transferred with effect from July 1, 2003. The total value of the acquired businesses is approximately EUR1.5 billion, which will be funded through a combination of debt financing and equity. Finmeccanica is to invest approximately EUR150 million, which will be funded by ordinary treasury sources of the Group. The acquisition should be completed by the end of 2003 and is subject to the approval of competition authorities. Finmeccanica, as an industrial partner in the deal, will assume a board seat and voting rights in accordance with corporate governance, and will be involved in defining Avio's corporate strategy and managerial decisions. "We are delighted to add Avio to our portfolio. This deal confirms our ability to make large acquisitions in Europe and underlines our deep aerospace expertise. The company has great potential; we will support the management to develop further Avio's activities and to find new opportunities for growth," said Edoardo Lanzavecchia, managing director of The Carlyle Group". The FiatAvio businesses acquired include the design, development and production of components of aeronautical engines, accessory gearboxes, low-pressure turbines, naval and space propulsion systems as well as the maintenance, repair and overhaul activities for military and commercial aircraft engines. Fiat Avio has 14 manufacturing plants, 9 research centers and over 5,000 employees. In 2002, the company reported sales of 1,534 million euros and an operating profit of 210 million euros. The acquisition will be financed with equity from The Carlyle Group and Finmeccanica and debt provided by Banca Intesa, Citigroup, Goldman Sachs, Lehman Brothers and Mediobanca. Banca Intesa, Citigroup (bookrunner), Lehman Brothers (bookrunner) and Mediobanca are acting as mandated lead arrangers of the senior debt; Citigroup, Lehman Brothers and Goldman Sachs are lead underwriting the subordinated debt, while Banca Intesa is acting as underwriter. Goldman Sachs acted as advisor to The Carlyle Group and Lehman Brothers as co-advisor; Mediobanca was advisor to Finmeccanica. About The Carlyle Group The Carlyle Group is a global private equity firm with more than $16 billion under management. Carlyle invests in buyouts, venture, real estate, high yield, and turnarounds in North America, Europe, and Asia, focusing on aerospace & defense, automotive, consumer & industrial, energy & power, healthcare, technology & business services, telecommunications & media, and transportation. Since 1987, the firm has invested $8.1 billion. The Carlyle Group employs more than 500 people in 12 countries. The Carlyle Group is active in Europe through the buyout fund Carlyle Europe Partners, the Carlyle Europe Venture Partners and the Carlyle Europe Real Estate Partners. Visit http://www.carlyle.comfor additional information. About Finmeccanica SpA Finmeccanica is Italy's second-largest manufacturing company and its leading high-tech company. The group operates primarily in the aerospace and defense sectors, but also has significant know- how and manufacturing assets in sectors such as rail transport, energy and IT. Finmeccanica's aerospace and defense activities account for around 70% of consolidated sales, and employ more than 32,000 staff. Finmeccanica also ranks as Italian number one in research and development: the group invests around EUR1 billion a year (or 13% of its value of production) in advanced technology, notably dual technologies. Visit http:www.finmeccanica.it for additional information. About Avio SpA Avio is one of the leading companies in the commercial aircraft engines business. Its most recent partnership programs include the collaboration with General Electric for the 115,000-pound thrust version of the GE90 engine; work on the Trent 900 project with Rolls Royce to produce a turbofan engine for Airbus Industrie's A380 Superjumbo; and a partnership with Pratt & Whitney Canada regarding the engines for the Falcon 2000EX and Raytheon Hawker Horizon business jets. In military engines, Avio has a 21% stake in Eurojet Turbo Gmbh, which produces the EJ200 engine for the Eurofighter Typhoon. It is a partner in the RB199 program for the Tornado, and the new F124 engine for the future Aermacchi M346 training aircraft, for which it is supplying the gearbox and the low-pressure turbine. In helicopters, Avio's partners include General Electric for the production of the T6A and T6E versions of the T700 engine, which will equip the NH90 and AgustaWestland EH101 helicopters, respectively. In the naval sector, Avio and General Electric jointly produce aero engine derivative propulsion systems, including LM2500 turbines, which will also be used by the Italian navy's Nuova Unit. Maggiore. It also produces electronic automation systems for propulsion control, automatic pilot and steering gear management systems for ships and submarines. In the sector of maintenance, repair and overhaul services for aircraft and naval engines, Avio provides services to the Italian Army in Brindisi and to commercial airline companies in Pomigliano d'Arco, near Naples. In the space sector, Avio is a leader in solid and liquid propellant boosters, used by the Ariane 4 and Ariane 5 rockets. In 2001, Avio founded ELV, a joint venture with the Italian Space Agency in which Fiat Avio has a 70% share. ELV was awarded a contract by ESA (European Space Agency) to oversee the design, development and production of the new Vega launcher. Avio also supplies tactical propulsion systems for Iris-T air-to- air missiles-adopted by the armies of Germany, Canada, Greece, Italy, Norway and Sweden-and the Aster surface-to-air missile. Avio's headquarters are in Turin, a centre of excellence for machining processes, while the other plants are in: Colleferro, Rome (space propulsion); Pomigliano D'Arco, Naples (maintenance of civil engines); Acerra, Naples (aircraft engines blades); Brindisi; Bielsko Biala, Poland (research and development, design of power transmission gearboxes for planes and helicopters, and development of low-pressure turbine components); and Kourou, French Guyana (assembly and charging of Ariane 5 boosters with solid propellant). =========== N O R W A Y =========== RAUFOSS ASA: Board Pushes to Continue Takeover Talks With Umoe -------------------------------------------------------------- The board of troubled car parts maker Raufoss ASA clung to its last hope of avoiding a possible bankruptcy saying it intends to continue takeover talks with Umoe Industri AS. Raufoss has to pursue the talks or face the possibility of being shut down and having its 500 employees thrown out of work, according to Norway's Aftenposten. Negotiations over a sale of the company were continued, following creditors' rejection of an agreement reached earlier between Raufoss and Umoe. The creditors, led by Den norske Bank, were not adept to accepting terms regarding the price Umoe would pay, nor how much of Den norske Bank's debt would be forgiven. Other necessary options are being considered if takeover talks fail, the board told Aftenposten. The report, however, did not detail what other alternatives the company has. =========== S W E D E N =========== BOLIDEN LDM: Restructures to Counter Weak Demand for Products ------------------------------------------------------------- Boliden (TSE:BLS) (Other OTC:BDNNF) is reorganizing operations at the Dutch brass company Boliden LDM in Drunen. In order to increase profitability, production will be concentrated on the manufacturing of billets (raw material) and brass rods to be marketed mainly in the BeNeLux, Germany and selected export countries. Approximately 40 positions will be affected by the reorganization. "The reorganization is a direct result of the weak demand for brass products in Europe, mainly due to the deterioration of the construction market. Profitability is essential in spite of the difficult market situation," said Jan Johansson, President and CEO of Boliden. The organizational changes at LDM will be implemented on October 1, 2003. A number of cost-cutting and efficiency-boosting programs are already in progress within Boliden's Business Area Fabrication. Boliden is an international mining and metal-producing company that mines, processes and markets copper, zinc, lead, gold and silver. Boliden owns seven mines and two smelting plants in Sweden and one mine in Canada. The range of activities also includes sales of technology. Copper and brass products are manufactured at plants in Europe. The number of employees is approximately 3 800 and the turnover amounts to approximately 10 billion SEK annually. The Boliden share is quoted on the Stockholm Stock Exchange in Sweden as well as on the Toronto Stock Exchange in Canada. CONTACT: BOLIDEN Jan Johansson, President and Chief Executive Officer Phone: +46 8 610 16 02/+46 70 555 02 02 Bengt Olof Johansson, Vice President Business Area Fabrication Phone: +46 70 217 69 89 SCANDINAVIAN AIRLINES: Goes Online to Increase Revenues ------------------------------------------------------- Scandinavian Airlines will make it possible for passengers to surf the Internet or send e-mail aboard some of its long-haul flights via Boeing Co.'s wireless broadband service Connexion. The high-speed Internet access will be installed aboard two planes in February, while the rest of its long-haul fleet will be provided with the same facility in 2005. Trans-Atlantic flights and routes to and from Asia will be the first to enjoy the amenity, Jens Willumsen, senior vice president for market and product management at Scandinavian Airlines, said, according to seattlepi.com. Financial details of the connection were not disclosed, but Willumsen said, the service will cost between US$30 and US$35 a flight for unlimited use. The report citing Willumsen said the company hopes the service could drive revenue. Scandinavian Airlines is trying to cut cost and save money amidst a drop in demand and increased competition from low-cost no-frills carriers. It said in April it plans to shed 4,000 jobs or nearly 13% of its workforce. ===================== S W I T Z E R L A N D ===================== SWISS LIFE: Ratings Affirmed and Removed From CreditWatch --------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its 'A-' long-term counterparty credit and insurer financial strength ratings on Switzerland-based life insurer Swiss Life/Schweizerische Lebensversicherungs- und Rentenanstalt AG. At the same time, Standard & Poor's affirmed its 'BBB-' long-term counterparty credit rating on Swiss Life Holding and its 'BBB-' long-term senior unsecured debt rating on the mandatory convertible securities issued by Swiss Life Cayman Finance Ltd. and guaranteed by Swiss Life Holding. All ratings were removed from CreditWatch, where they had been placed on March 6, 2003. The outlook is negative. "The rating actions follow an improved earnings outlook for Swiss Life as a result of the group's revised corporate strategy," said Standard & Poor's credit analyst David Harrison. The ratings also reflect Swiss Life's strong capitalization and very strong business position. Although Swiss Life pursued an aggressive acquisition program following the 1997 demutualization, events over the past two years have forced management to reassess the group's strategy and risk appetite, and Swiss Life is now undergoing a process of retrenchment back into its core markets. "At the operating level, the group has implemented a number of measures to improve profitability in a continued challenging environment," said Mr. Harrison. These measures range from enhancing margins (by reducing expenses and repricing products) to reducing volatility (by rebalancing the portfolio and disposing of non-core activities, including private banking and some insurance operations). "The negative outlook reflects the risk inherent in executing Swiss Life's strategy," said Mr. Harrison. Standard & Poor's expects Swiss Life to leverage its very strong domestic business position as the Swiss life market develops. This will be partly driven by competitors withdrawing from the market and/or by proposed structural reforms, which would lead to enhanced profitability. The group is expected to at least break even in 2003, and should achieve a return on International Accounting Standards equity of about 6% in 2004, with the ratio increasing to at least 10% by 2005. Over this period, as earnings recover, capitalization is expected to be maintained at least a strong level through active balance sheet management. The ratings on Swiss Life and related entities may be lowered if these expectations are not met. =========================== U N I T E D K I N G D O M =========================== BRITISH AIRWAYS: Increase in June Passenger Traffic Likely ---------------------------------------------------------- Analysts are expecting British Airways to report a 3% increase in traffic in June as concerns about the war in Iraq and the outbreak of severe acute respiratory syndrome subside, according to Bloomberg. The week ended June 22 saw a 1.1% increase in European airlines' traffic, the first increase in March, the report said citing the Association of European Airlines. ``We expect British Airways to report one of the strongest sets of traffic data for June of the major European airlines,'' said Andrew Light, an analyst at Citigroup's Smith Barney unit who has an ``outperform'' rating on London-based British Airways shares. ``North Atlantic traffic appears to be staging a strong recovery,'' he said, and because of the airline's high exposure to the North Atlantic, it is expected to greatly benefit on this. Economy-class travel is expected to be the driving force for the increase of British Airways passenger traffic for June. ``British Airway's figures will confirm that the trend is looking a bit better, we hope,'' said Morgan Stanley analyst Martin Borghetto, who rates the stock ``equal-weight.'' BRITISH ENERGY: Consolidating Peel Park Ops to Reduce Costs ----------------------------------------------------------- As announced in its preliminary statement last month, British Energy is developing programs to underpin the long-term viability of the company. As part of its drive for enhanced operational effectiveness and reduced costs, the company has concluded that it can no longer maintain two large office complexes, one of which (Peel Park, East Kilbride) contains a mixture of operational support staff and a variety of corporate functions. It is therefore proposed that 150 operational jobs based in Peel Park are transferred to Barnwood, Gloucester to be integrated into the company's major operational and engineering support base. Consolidation in Peel Park would not be practical since there is almost three times as many Barnwood staff based in these functions. Simultaneously the Corporate headquarters functions will be restructured, commensurate with the change of the Company's remit to a U.K. rather than an international electricity generator. British Energy's headquarters and head office will remain in Scotland, but at a smaller office yet to be identified. Peel Park will therefore be closed. The Chairman, Chief Executive and other corporate directors will continue to have their principal offices at the new location along with the headquarters staff including the Finance, Legal and HR functions. British Energy will therefore remain a major employer in Scotland with over 1,000 staff based at its two power stations and corporate offices. It is regretted that as a result of this proposal some 80 jobs may be lost. The company is commencing a process of consultation with staff and their representatives. ***** (a) British Energy is in the process of a financial restructuring and has also received support from the Government. These developments are the Company's own measures to help ensure the future of British Energy. (b) British Energy is the U.K.'s largest electricity generator owning and operates the eight most modern nuclear power stations and a coal-fired plant at Eggborough in Yorkshire. (c) Total UK employees: 5,091. (d) Total Scottish employees: 1,299 made up of: Hunterston 459, Torness 467, Peel Park 373 CONTACT: BRITISH ENERGY Investor Relations Paul Heward Phone: 01355 262201 Homepage: http://www.british-energy.com EASTWOOD CARE: Invitation to Meeting of Unsecured Creditors ----------------------------------------------------------- Notice is hereby given pursuant to Section 48(2) of the Insolvency Act 1986, that a meeting of the unsecured creditors of the above-named company will be held at 11.00 am on July 7, 2003 at Quality Hotel, Ashby New Road, Loughborough, for the purpose of having laid before it a copy of the report prepared by the Joint Administrative Receivers under section 48 of the said Act. The meeting may, if it thinks fit, establish a creditors' committee to exercise the functions conferred on it, by, or under the Act. Creditors are only entitled to vote if: (a) they have delivered to us at the offices of RSM Robson Rhodes, 186 City Road, London EC1V 2NU, no later than 1200 hours on the business day before the meeting, written details of the debts they claim to be due, and the claim has been duly admitted under the provisions of the Insolvency Rules 1986; and (b) there had been lodged with us any proxy which the creditor intends to use on his behalf. Creditors may obtain a copy of the report, free of charge, on application to the Joint Administrative Receivers at RSM Robson Rhodes, 186 City Road, London EC1V 2NU. CONTACT: Simon Peter Bower and Michael John Hore Joint Administrative Receivers EDINBURG FUND: Reviews Options & Considers Possible Takeover ------------------------------------------------------------ Edinburg Fund Managers responded to reports regarding a possible offer for the company saying the board continues to review its strategic options. It confirmed the alternatives include discussions with potential buyers for the company. The report sent shares in the company soaring more than 22% to close at 90p, giving it a market capitalization of GBP25 million, the Independent said on Wednesday. According to the report, the buyer may pay up to GBP30 million for the company. It mentioned Isis Asset Management as the top candidate to acquire the company which has lost GBP1 billion of fund management mandates in the past three months. The report suggested compatibility of Edinburg Fund's operation, which has about 35% of its GBP3.5 billion fund portfolio in investment trusts, with Isis, which also a large investment trust manager. Edinburg Fund's assets under management have halved since 2001 to GBP3.5 billion and its share price has fallen from 278.5p this time last year after a period of continued under performance. HEREDITIED LIMITED: Joint Administrative Receiver Sells Business ---------------------------------------------------------------- The Joint Administrative Receiver of Hereditied Ltd offer for sale the total assets of this fine figurine production company Features: Heredities quality brand name; freehold & leasehold premises in Cumbria; finished stock cGBP855 k; WIP/part finished stock cGBP100 k; 300 Models in product range, Cost Price cGBP1 million; 800 Established retail customers CONTACT: THOMLINSONS St. John's Court 72 Gartside Street Manchester M3 3EL Phone: 0161 834 9797 Ref: NC FPDSAVILLS Fountain Court 68 Fountain Street Manchester M2 2FE Phone: 0161 244 7700 Ref: GHH IMPERIAL HOME: Ernst & Young Offers Business for Sale ----------------------------------------------------- The Joint Administrative Receivers, S. Allport and G. Wilson of Ernst & Young LLP, offer for sale as a going concern the business and assets of The Imperial Home Decor Group (UK) Ltd., currently under administrative receivership. Features: (a) Wall coverings division incorporating a large-scale wallpaper business based in Darwen, Lancashire with operations also in Morecambe, Lancashire; approximately 650 employees; gravure screen print and finishing technology; historical turnover of approximately GBP50 million p.a. (b) Transprints division incorporating a transfer printing business producing paper print for the fast fashion clothing business and soft furnishings; based in Morecambe, Lancashire with approximately 145 employees; historically profitable with a turnover of approximately GBP10 million p.a.; gravure, digital and flexographic printing machinery (c) 279,000 sq ft freehold properties in Morecambe, Lancashire (d) 356,000 sq ft freehold and long leasehold property in Darwen, Lancashire (e) 155,000 sq ft leasehold warehouse in Middleton, Manchester (f) Approximately GBP5 million of finished wallpaper stock (g) Significant wallcoverings related plant and machinery CONTACT: ERNST & YOUNG LLP 100 Barbirolli Square Manchester, M2 3EY Phone: 0161 333 2807 Fax: 0161 333 3008 E-mail: awilliams1@uk.ey.com INTERCARE GROUP: Warns of Lower-than-Expected Full Year Results --------------------------------------------------------------- Drugs supplier Intercare issued its second profit warning in under three months saying full year results would be "somewhat lower than the current consensus of analysts' estimates." Shares in the company dropped 5p to 131.5 p after the announcement. Angry shareholders, who said they were not warned of the extent of the damage earlier, called for a shakeup of the company's management team, according to Yorkshire Today. Intercare's distribution division suffered as a result of the patent expiry of Zocor, which is used to treat patients with high cholesterol. This is compounded with the rise in value of the euro against the pound over the last six months. The weakening of the euro in the past two weeks did nothing to appease investors, the report said. Concerns also arose in that the company's current low valuation could force a cheap sale. The group's valuation is now so low that its assets could be worth more than the company itself, the report says. CONTACT: THE INTERCARE GROUP PLC Phone: 01423 535500 John Parker, Chief Executive Homepage: http://www.intercareplc.co.uk Jeremy Earnshaw, Group Finance Director Andrew Kay, Chief Operating Officer FINANCIAL DYNAMICS Phone: 020 7831 3113 David Yates MITCHELL SHACKLETON: Administrators Put Business Up for Sale ------------------------------------------------------------ The joint Administrators: Derek Oakley and Simon Thomas of Tenon Recovery, offer for sale the business and assets of this manufacturer of crankshafts (for large, medium speed diesel engines and reciprocating compressors). Key features include: annual turnover of approximately GBP3.5 million; leasehold premises; extensive range of machine tools; skilled workforce; worldwide customer base. CONTACT: TENON RECOVERY Michelle Nield Arkwright House Parsonage Gardens Manchester, M3 2LF Phone: 0161 834 3313 Fax: 0161 827 8402 E-mail: michelle.nield@tenongroup.com N BROWN: Braces Investors for Disappointing Development ------------------------------------------------------- Home shopping group N Brown warned performance at its men's wear and footwear units remain "disappointing" as trading conditions continued to be challenging. It assured, though, that after a "slow start," the group is making its way towards achieving expectations for the year. It also reported a 2% rise in both group and home shopping during the first 17 weeks of the year. Its ladies and electrical goods also continue to perform well. It plans to launch an expanded autumn catalogues later in the month in conjunction with a refocused marketing campaign to lure new customers. N Brown warned in January that the group's full year profits would fall due to higher pensions and marketing costs, sending its share to a five-year low. PAPERMAC BUSINESSES: Ops Offered for Sale as a Going Concern ------------------------------------------------------------ The Joint Administrative Receivers/Administrators, J M Titley and A Poxon, offer for sale as a going concern the business and assets of: Papermac Limited (In Administrative Receivership) (a) Turnover: GBP20 million (b) Location: two freehold and leasehold sites in Brunley (c) 250 employees (d) Manufacture and conversion of paper and board Papermac Merton Limited (In Administrative Receivership) (a) Turnover: GBP11 million (b) Location: Freehold site in Gwent (c) 90 employees (d) Manufacture of water resistant board packaging products Papermac Recycling Limited (formerly Unicorn Recycling Limited) (In Administration) (a) Turnover: GBP7 million (b) Location: operates from Lichfield and Burnley (c) 12 employees (d) Waste paper collection and recycling with 150 waste collection points in UK The companies are part of a group which has accredited reprocessing status and issues up to 86,000 Packaging Recovery Notes per annum. Other companies in administrative receivership are Bowden Holdings Limited and Papermac Properties Limited. CONTACT: Mandi Jackson, GVA Grimley 81 Fountain Street, Manchester M2 2EE Phone: 0161 956 4318 Fax: 0161 956 4009 Matt Beckley and Keith Turpin DTE Corporate Recovery a& Insolvency Phone: 0161 831 9999 PORTER BLACK: Under Administration; Business for Sale ----------------------------------------------------- The Joint Administrative Receivers, BC Nimmo and GA Friar, offer for sale as a going concern the business and assets of Porter Black Holdings Limited, owners and operators of a portfolio of licensed properties. Principal features: portfolio of 16 established pubs, 2 of which also offer accommodation; outlets located mainly in the South of England; annual turnover of cGBP7 million; 200 employees; mixture of freehold and leasehold interests. CONTACT: KPMG CORPORATE RECOVERY Tony Friar 24 Blythswood Square, Glasgow G2 4QS Phone: 0141 226 5511 Fax: 0141 204 1584 Homepage: http://www.kpmg.co.uk SOMERFIELD PLC: Former Director May Offer Bid, Reports Say ---------------------------------------------------------- The former head of Abbey National's wholesale bank, Gareth Jones, could start a new twist in the takeover of supermarket chain operator Somerfiled Plc. Jones, who also served as non-executive director at Somerfield until August, is having negotiations with two unidentified private equity groups about a possible bid for Somerfield, Bloomberg said citing a report from the Times. Somerfield Plc, the U.K. owner of Kwik Save and Somerfield food stores, previously rejected an offer from entrepreneurs John Lovering and Robert Mackenzie. The failure of the negotiations leading to the acquisition means the potential buyers could not approach Somerfield with a new offer within six months, unless a third party comes in with an alternative offer. J Sainsbury Plc, the U.K.'s second-largest supermarket chain, who previously indicated it would like to buy certain assets from the would-be bidders, is still seeking approval from U.K. regulators for the possible purchase of 171 of the company's 1,280 stores, in case potential buyout negotiations resume. SOMERFIELD PLC: Reports Improved Financial Results -------------------------------------------------- Somerfield plc announced its results for the 52 weeks ended 26 April 2003. The key points are: (a) Operating profit of GBP30.1 million, compared with GBP28.1 million last year; (b) Attributable profit of GBP39.8 million, compared with GBP28.2 million last year; (c) Underlying earnings per share of 6.3p compared with 5.5p last year; (d) Recommended final dividend of 1.25p per share; total for the year of 1.65p per share; (e) Capital expenditure of GBP189.6 million; GBP116.7 million last year; (f) Strong ungeared balance sheet with net cash of GBP2.5 million; (g) Like-for-like sales growth for the year for Somerfield +0.9%, Kwik Save +1.2% and Group +1.0%; (h) The first 9 weeks of the new year like-for-like sales growth for Somerfield +1.1%, Kwik Save +1.1% and Group +1.1%; John von Spreckelsen, Executive Chairman, comments: "While we are pleased to report further progress in rebuilding profitability, we recognize that the pace of recovery was not fast enough. However, following organizational changes, we have a strong executive management team focused on delivering the renewal of the Company with urgency and pace. The Board is confident that the delivery of the refocused Group strategy will create substantial shareholder value and we are already seeing good returns from past years' investment in store refits and product development. We expect sales growth to gather momentum as this investment continues.' To view Full Report And Financials: http://bankrupt.com/misc/Somerfield_plc.htm SUNLEY TURIFF: Jobs at Subsidiary Saved at the Last Minute ---------------------------------------------------------- The jobs of 266 employees in Glasgow and Edinburg were saved after the management of Lilley Construction bought the developer shortly before its holding company was placed in administration on Tuesday. Keith Hyam, chief executive, and chairman Graham Hallworth bought Lilley Construction for an undisclosed sum, from Sunley Turiff, which collapsed under mounting losses. The transaction did not involve additional bank debt since Lilley had sufficient cash, according to The Herald. The report says Mr. Hallworth dispelled market rumors that Lilley -- which Sunley bought from receivers in 1993 and brought to the Glasgow-based Lilley Group - was itself in trouble. He assured that despite strong competition for work, which has put margins under pressure across the industry, Lilley had remained profitable and cash generative. "We've got a decent order book, margins are always difficult but there's plenty of work out there for everybody," he told The Herald. He said Lilley Construction's turnover rose from around GBP32 million to GBP47 million in the last five years, and it made an undisclosed pre-tax profit last year. It is currently working on significant contracts such as the refurbishment of Glasgow's Tron Theatre and parts of Strathclyde University. According to the report, senior watchers at Construction News said Cheshire-based Sunley had racked up heavy losses on several contracts. It made a GBP3.8-million loss in its last accounts for 2001. YELL FINANCE: Ratings Under Review for Possible Upgrade ------------------------------------------------------- Moody's Investors Service said it will review the B2 debt rating of Yell Finance BV's senior notes and the Ba3 rating of the company's senior bank facilities at the operating and intermediate holding company level with a view of possibly upgrading the ratings. The announcement follows the directories publisher's recent announcement of its planned initial public offering and flotation on the London Stock Exchange that Moody's says could possibly reduce its debt materially and improve capital structure. The rating agency said it will focus its review on Yell's business and finance strategy following the IPO and in particular on the company's acquisition strategy and financial comfort parameters going forward. The IPO is expected to raise approximately GBP403 million in net primary proceeds to prepay: approximately GBP54 million principal amount outstanding under its senior bank facilities and redeem up to 35% (or approximately GBP173 million) of its senior notes and senior discount notes; and approximately GBP100 million principal and related interest of approximately GBP8 million under deeply subordinated vendor loan notes issued to an affiliate of BT and convert approximately GBP708 million of deeply subordinated shareholder loans into common equity. Ratings under review for possible upgrade are: - The B2 ratings on Yell Finance BV's GBP 250 million of 10.75% senior notes due 2011, the $200 million of senior notes due 2011 and the US$ 288 million of 13.5% senior discount notes due 2011. - The Ba3 senior implied rating. - The Ba3 rating of the company's senior bank facilities at the operating and intermediate holding company level. YOUNG BARBER: Business and Assets Up for Sale --------------------------------------------- The Joint Administrative Receivers, Alistair Grove and Robert Hunt, offer for sale the business and assets of this long established West Midlands based business, manufacturing precision turned parts for the automotive industry. Principal features of the business include: annual turnover GBP2 million; established customer base; skilled workforce of 56 employees; CNC and single and multi-spindle turning capacity; currently located within 80,000 sq ft leasehold factory on 2.6 acre site. CONTACT: Karen Wilkins PricewaterhouseCoopers LLP Cornwall Court 19 Cornwall Street Birmingham B3 2DT Phone: 0121 265 5631 Fax: 0121 265 5651 E-mail: karen.t.wilkins@uk.pwc.com ZWEMMER HOLDINGS: Joint Administrators Offer Business for Sale -------------------------------------------------------------- The Joint Administrators, David Coyne and David Clements of Haines Watts offer for sale as a going concern the business and assets of Zwemmer Holdings Co Ltd. (Home Page: http://www.zwemmer.com) Features: leasehold shops at 72 & 80 Charing Cross Road; well established Design &Media Book Retailer; nationwide concessions (7 locations); 2002 turnover cGBP2.8 million; experienced, loyal staff. CONTACT: Greg Tytherleigh Edward Symmons Phone: 020 7955 8454 Homepage: http://www.edwardsymmons.com ********* 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. 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