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/raid1/www/Hosts/bankrupt/TCREUR_Public/030710.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, July 10, 2003, Vol. 4, No. 135 Headlines F R A N C E VIVENDI UNIVERSAL: Bronfman Denies Partner Is Ditching Joint Bid VIVENDI UNIVERSAL: CSFB Pulls Out of Marvin Davis' Team G E R M A N Y ALBI: Closes Plant in Hochdal; Cuts 290 Jobs in Berghuelen BRAU UND BRUNNEN: HVB Group Seeks Buyer for 56% Stake INFINEON TECHNOLOGIES: Approval of E.U. Grant Expected Today I R E L A N D DAIRYGOLD CO-OP: Vote of 'No Confidence' Nearly Wipes Out Board I T A L Y FIAT SPA: Fitch Downgrades Rating; Retains Negative Outlook N E T H E R L A N D S KONINKLIJKE AHOLD: Names Operations Director at Albert Heijn KONINKLIJKE AHOLD: Albert Heijn to Reduce Board Composition NUMICO N.V.: Optimizes European Baby Food Manufacturing Platform P O L A N D BANK MILLENNIUM: Lawsuit Relating to Share Purchase Dismissed S W I T Z E R L A N D SWISS RE: Submits Final Application for China Branch License U N I T E D K I N G D O M ACCOUNTANCY TUITION: Administrative Receivers Appointed ACCOUNTANCY TUITION: Mark Shaw Named Administrative Receiver AWG PLC: Admits Bonus Paid to Restructuring Team Was Improper CORUS GROUP: Appoints Andrew Robb Non-Executive Director EQUITABLE LIFE: Action Group Urges Clients Not to Waive Claims H BEESLEY: Administrators Offer Business and Assets for Sale HEALTH FOOD: Liquidator Offers Business for Sale INTERIOR SERVICES: Adverse Markets Dash Turnaround Hopes IREVOLUTION GROUP: On the Brink with No Bidder for Part or Whole LAPOINTE LIMITED: Receivers Auction Business, Assets LE MERIDIEN: Saudi Prince's Offer Won't Likely Get Support LE MERIDIEN: Sells Hildesheim-Hanover Hotel for EUR5.7 Million LOMBARD MEDICAL: Board Proposes Recapitalization to Secure Biz MAXIFREEZE LIMITED: Administrator Sells Firm as Going Concern PNC TELECOM: Announces Changes in Management Board ROYAL & SUN: Considers Divesting Real-Estate Brokerage Operation ROYAL & SUN: Standard & Poor's Revises Outlook to Negative SAFEWAY PLC: Long-term Prospect Remains Hazy, Says Analyst SMF TECHNOLOGIES: Board Says Sale of Subsidiaries Underway SUNSTREET LIMITED: Joint Administrative Receivers Sell Business TXU EUROPE: German Unit Sells 74.9% Stake in Local Utility WORLD SPORTS: Posts Final Results for Year-ended October 2002 WS ATKINS: Sells Subsidiary's Office to Reduce Debt YELL GROUP: Speculations Drive IPO Price to As High As 300p * S&P: Risk of State Intervention Affects Ratings of Utilities ********* =========== F R A N C E =========== VIVENDI UNIVERSAL: Bronfman Denies Partner Is Ditching Joint Bid ---------------------------------------------------------------- The team of Edgar Bronfman Jr. has denied suggestions that partner Cablevision Systems Corp. might pull out of their joint effort to bid for the U.S. entertainment assets of Vivendi Universal, according to Reuters. "Cablevision is shoulder to shoulder with us and we are moving ahead quickly," said Spokesman Tod Hullin to suggestions that a government probe into the company might affect the partnership. Edgar Bronfman and another financial suitor, Marvin Davis, has always been seen as having only a slim chance of winning in the high-profile auction, but Mr. Bronfman's group has somehow made it to the second process of the bidding with four other bidders, NBC, Liberty Media Corp., Metro-Goldwyn-Mayer Inc., and Viacom Inc. Mr. Bronfman's effort to bid for the Universal film, television and theme park business had not been easy. It has been beset by concerns about his team's ability to raise the amount expected for the assets, which is more than US$10 billion. It also suffered a setback after Vivendi indicated it did not want to sell the part Mr. Bronfman is eyeing -- Universal Music. VIVENDI UNIVERSAL: CSFB Pulls Out of Marvin Davis' Team ------------------------------------------------------- Credit Suisse First Boston, which initially advised magnate Marvin Davis on his bid for Vivendi Universal's U.S. entertainment empire, has switched side to rival bidder General Electric Co.'s NBC, according to reports. The news, which came out first from the New York Post, follows the exclusion of the Davis consortium from the short list of five bidders drawn by the French company. Mr. Davis' group was excluded from the second round of bidding, which will now be participated only by NBC, Liberty Media Corp., Metro-Goldwyn-Mayer Inc., Viacom Inc., and the team led by Edgar Bronfman. Observers were not surprised at the switch, as CSFB had warned Mr. Davis from the onset that it was looking for a more lucrative advisory mandate. Mr. Davis, who was been predicted together with Mr. Bronfman to unlikely survive the battle with bigger rivals, is considering either coming back with a higher bid or teaming up with another bidder, Reuters said. ============= G E R M A N Y ============= ALBI: Closes Plant in Hochdal, Cuts 290 Jobs in Berghuelen ---------------------------------------------------------- Declining sales in non-returnable bottles in Germany has claimed another victim after German fruit juice producer, Albi, closed one of its bottling plants in Hochdahl near Dusseldorf, western Germany. A total of 60 employees will lose their jobs from the closure, and another 290 will be made redundant from Albi's plant in Berghuelen near Ulm, southern Germany, which is currently not at full capacity. According to Justdrinks.com, the decrease in sales of juice in non-returnable bottles is mainly due to the introduction of a system of deposits on cans and plastic bottles in 2003. The system was designed to encourage recycling, as mandated by one of the new environmental laws implemented in Germany beginning January. Consumers who do not wish to pay the deposit stopped buying fruit juices in non-returnable bottles. As a consequence, retailers decided to exclude them from their shelves. BRAU UND BRUNNEN: HVB Group Seeks Buyer for 56% Stake ----------------------------------------------------- Germany's second largest listed bank, HVB Group, has sent out sales prospectus to a dozen investors who may be interested in bidding for its 56% stake in brewery conglomerate, Brau und Brunnen. Online news agency Justdrinks.com, citing Dow Jones Newswires, said the bank expects the sale to be completed by the end of the year. The choice of possible buyers is yet to be narrowed down. The report also quoted a Dow Jones report saying HVB Group could book a net capital gain of more than EUR100 million from the sale of the stake. HVB further plans to offload the business by the end of this year, according to Drinks Business. The report said the bank has already made an assessment on the level of interest on the business from the drinks industry and other financial investors, but it would not yet mention names. Brau & Brunnen's business is in soft drinks, a sector that many brewers have been exiting in recent years. INFINEON TECHNOLOGIES: Approval of E.U. Grant Expected Today ------------------------------------------------------------ The European Commission is expected to approve today the EUR100 million grant to Infineon Technologies, which will use the money to put up a development center in Saxony, the Irish Examiner says. The Munich-based company offers semiconductor and system solutions for the automotive and industrial sectors, for applications in the wired communications markets, secure mobile solutions as well as memory products. HVB analyst Michael Hollfender recently said Infineon might post a loss of 98 cents a share for the three months ended June, up from a previous forecast of 94 cents a share, according to Bloomberg. The loss comes with the underperformance of the chipmaker's unit Secure Mobile Solutions, which accounts for about a quarter of its revenue. The unit's third-quarter loss could be EUR14 million; revenues could be down to EUR380 million from EUR405 million, the analyst said. Infineon is due to present its interim report (2003, third quarter) on July 22, its Web site says. ============= I R E L A N D ============= DAIRYGOLD CO-OP: Vote of 'No Confidence' Nearly Wipes Out Board --------------------------------------------------------------- Dairygold Co-op lost nine board members after shareholders during the annual general meeting recently passed a vote of 'no confidence' on the executives due to the underperformance of the business. Only Terence O'Donnell was left after the resignation of the rest of the members of the 10-man board, including chairman Denis Cronin and his deputy John Walsh. Farmer shareholders lost confidence on the management of one of the country's largest multi-purpose businesses after profits fell by 80% at Mallow-based Dairygold last year. They were critical of milk prices, store closures and processing costs in the co-op. Newly recruited CEO Jerry Henchy, who is tasked with restructuring the company, hopes to turn Dairygold from being a "sleeping giant" into becoming the country's most efficient dairy processor, according to Business World. A strategic plan for building a new Dairygold, already being prepared, is expected to be ready by next March, according to the Irish Examiner. Dairygold has more than 8,000 shareholders, employs over 3,000 people and has an annual turnover of almost EUR989 million. ========= I T A L Y ========= FIAT SPA: Fitch Downgrades Rating; Retains Negative Outlook ----------------------------------------------------------- Fitch Ratings, the international rating agency, has downgraded Fiat SpA's Senior Unsecured rating to 'BB' from 'BB+', while the company's short-term rating was affirmed at 'B'. The outlook for the senior unsecured rating remains negative. The downgrade reflects the worse than expected current operating performance of Fiat Auto. Fitch is concerned that this business will remain affected by the adverse conditions in its main markets. These developments have made it necessary to intensify the relaunch plan. The Negative Outlook is based on the modest earnings prospects during the next two years, while the relaunch plan underway, as well as the substantial execution risk involved in the implementation of the initiatives started. During this time, Fiat is expected to retain a negative net free cash flow generation. The cyclical markets in which Fiat operates are undergoing structural changes and consolidation. The agency also expects the European auto market to decline by 2% in FY03 due to the weaker economic environment, which will increase competitive pressure. Under the new plan, Fiat aims to break even on an operating profit level in FY04 and return to profitability and positive cash flow generation in FY05. The restructuring plan also includes EUR3.1 billion in cost reductions. Material and component purchases will be cut by EUR2 billion until FY06. A program to rationalize production plants involves the closure of 12 production plants, five of which are for the group's agricultural and construction equipment business CNH and four in the components business Magneti Marelli, alongside a headcount reduction of 12,300 employees. Until FY06 the group plans to invest some EUR19.5 billion, the majority of which will represent investments in new products, R&D and restructuring expenses to improve the product range across all core operations, which is expected to lift margins by EUR1.6 billion. Fiat forecasts that the profitability enhancing measures would result in a 4.1% return on sales in FY05. In the meantime Fiat will continue to be able to access substantial committed bank lines, which will back its credit profile in the short term. The group has just launched an equity increase, which is expected to result in a cash inflow of EUR1.8 billion by end of July 2003. Proceeds from disposals are expected to total EUR7 billion, including the disposals of Fiat Avio (during 2H03) and of Toro Assicurazioni (during 3Q03) which are expected to generate a cash inflow of EUR1.5 billion and EUR2.4 billion, respectively. Earlier this year Fiat has already completed the sale of Fiat's European retail finance operations Fidis and Fraikin. Fitch notes that the financial flexibility obtained from the EUR7 billion to be received during FY03, the mandatory convertible loan arranged with Fiat's banking partners and its cash holding and c.EUR3.6 billion worth of committed facilities, represents a weak substitute for strong operational cash flow generation in the medium term. During FY02, Fiat recorded a net loss of EUR4.26 billion, which to a large extent reflected non-recurring and non-cash items, including a EUR1.1 billion capital loss on the sale of its c.6% stake in GM, goodwill impairment on asset disposals and asset write-downs following the reduction in production capacity at the automobile operations, and the marking-to-market of equity investments at Toro. Fiat Auto recorded an operating loss of EUR1.34bn, including over EUR1 billion in restructuring charges. Its YE02 net financial position of EUR3.8 billion complied with the target set in the mandatory convertible loan. Fitch views that the successful realization of the restructuring requires a stabilization of Fiat Auto's competitive position. A failure to successfully finalize the disposals underway as well as a shortfall of the group's operating performance from the restructuring plan would trigger another rating review. ===================== N E T H E R L A N D S ===================== KONINKLIJKE AHOLD: Names Operations Director at Albert Heijn ------------------------------------------------------------ The Ahold Corporate Executive Board has named Albert Voogd as Director of Store Operations at Albert Heijn. Mr. Voogd currently serves as Executive Vice President Store Operations at Bompreco, one of Ahold's Brazilian operating companies. Prior to that, he was a regional manager within Store Operations at Albert Heijn, Program Director Ahold Corporate Business Development and Director International Projects for Ahold Project Services in the United States. Mr. Voogd started at Ahold as a management trainee in 1989, as did Chris Dik, the new Albert Heijn Chief Financial Officer. Mr. Voogd succeeds Ronald van Zetten, who has accepted a new position with Vendex KBB as Chairman of the Board at Hema. As previously reported, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Netherlands-based food retailer and food service distributor Ahold Koninklijke N.V. to 'BB-' from 'BB+', following the announcement by the group that accounting irregularities at its U.S. Foodservice arm were materially larger than expected. In addition, the senior unsecured debt ratings on Ahold were lowered to 'B+' from 'BB+', reflecting structural subordination. At the same time, Standard & Poor's affirmed its 'B' short-term rating on the group. KONINKLIJKE AHOLD: Albert Heijn to Reduce Board Composition ----------------------------------------------------------- Ahold's leading supermarket fascia, Albert Heijn, will reduce the number of board members with the departure of merchandising and replenishment director, Jeroen Smits. Justfood.com, citing a report by Dow Jones International News, said the Dutch supermarket chain will eliminate Mr. Smits' position to trim down its corporate headquarters. Albert Heijn Spokesman Hans Koeleman confirmed to Justfood.com that Mr. Smits' position was to be eliminated to generate cost-savings and improve efficiency. Marketing director Sander van der Laan will take over Mr. Smits' functions, the online news agency said. Last week Albert Heijn's CFO Joost Sliepenbeek was appointed vice president controller at Ahold. Chris Dik, currently logistics director at the chain, will fill his position. Consequently, Mr. Dik's job will be taken over by Johan Boeijenga, who was Ahold's country manager in Indonesia until Ahold sold that unit. Ahold, which recently had its long-term corporate credit rating lowered to 'BB-' from 'BB+' by Standard & Poor's Ratings Services, is also streamlining management at a number of its Dutch units. NUMICO N.V.: Optimizes European Baby Food Manufacturing Platform ---------------------------------------------------------------- Royal Numico N.V. announces that it has initiated a plan to optimize its European manufacturing platform within the Baby Food Division. This plan is an integral and important part of Numico's strategy to become a high-growth, high-margin specialized nutrition company. Expected annualized net cost savings of EUR35 million in 2006, representing 350 basis points of Baby Food net sales in 2002, will be used to support initiatives that will drive top line growth and increase margins. Commenting on this strategic initiative, Jan Bennink, CEO of Numico, stated: "The proposed optimization of our European Baby Food manufacturing platform is the fifth of a five-pronged program to transform Numico into a high-growth, high- margin nutrition player. "This plan, in concert with the other actions we have taken, will allow us to reinvest in our core business to achieve our superior growth and margin targets. This strategic plan provides a foundation of focus and resources, which will enable the Baby Food Division to lead in innovation, expand into selected developing markets and be the most cost-efficient supplier. "The proposed plan will result in a net reduction of 525 jobs, from a loss of 750 jobs in the 7 redundant factories with the creation of 225 jobs in the remainder. We will work together with our social partners to create the best possible support for the people concerned. "The key aspects of our strategic plan are well underway: (a) Renewal of our Executive Board and implementation of a divisional structure. (b) Divestiture of non-strategic/high- investment assets in process. (c) Refinancing of our debt completed. (d) Reduction of working capital by EUR100 million (of which EUR65 million has been achieved by Q1 03). (e) Optimization of our supply chain and manufacturing base. "With these actions in place, we feel comfortable that we will be able to deliver on our strategic objective to become a high-growth, high-margin company." (1) Optimization of the Baby Food Division's European manufacturing platform. . . Over the last decade, Numico's Baby Food business has developed through organic growth as well as through acquisitions. This has resulted in a widely dispersed manufacturing platform in Europe with significant overcapacity. The objective of the announced plan is to optimize the European manufacturing platform of the Baby Food Division by reducing the number of plants from 16 to 9 by the end of 2005. As a consequence, the total workforce related to the manufacturing platform of the Baby Food Division in Europe is intended to be reduced by 750 FTE by the end of 2005. However, 225 new positions will be created in the remaining plants. Consequently the intended net reduction in the European manufacturing platform is 525 FTE by the end of 2005. The two-year time frame enables us to execute this plan with the highest possible amount of care. The necessary changes will be implemented in close consultation with our social partners in the respective countries, to minimize the personal impact as much as possible. (2) . . .will lead to significant long -term benefits Numico will substantially improve the efficiency of its manufacturing platform by maximizing the utilization of the plants that offer the most favorable cost structure and have the possibility to increase volume. The related cost savings will be reinvested in innovation, marketing and sales programs to support the growth strategy of the Baby Food Division and to ensure and grow margins. Moreover, this initiative will significantly simplify the network complexity as well as the use of technology per plant within the European manufacturing platform. This will result in improved manufacturing standards in terms of quality and effectiveness, which in turn will ensure and improve the quality of our products and customer service levels. Financial implications Total pre-tax restructuring costs related to this plan will be EUR88 million, of which approximately EUR70 million will be accounted for in the second quarter of 2003. The remainder of the total restructuring costs will be accounted for in 2004 and 2005. Cost savings will be generated as of 2004 and will lead to net annualized pre-tax cost savings of EUR35 million in 2006, which represents 350 basis points of Baby Food net sales in 2002. Royal Numico N.V. is a leader in specialized nutrition including baby food, clinical nutrition and nutritional supplements. The company operates in over 100 countries and employs approximately 28,500 people (http://www.numico.com). Appendix Manufacturing plants intended to be taken out of the network Puch Austria Colmar France Friederichsdorf Germany Seulberg Germany Beelitz Germany Valdemoro Spain Wells United Kingdom Composition of the optimized European manufacturing platform for Baby Food Fulda Germany Infant Milk Formula Macroom Ireland Infant Milk Formula Wexford Ireland Infant Milk Formula Krotoszyn Poland Infant Milk Formula Cuijk The Netherlands Infant Milk Formula Opole Poland Infant Milk Formula, Cereals & Jars Deva Czech Republic Jars Benavente Portugal Cereals Kampen will no longer be part of the Baby Food network but will focus solely on third party industrial production. CONTACT: ROYAL NUMICO N.V. Corporate Communications Phone: +31 79 353 9765 Investor Relations Phone: +31 79 353 9003 =========== P O L A N D =========== BANK MILLENNIUM: Lawsuit Relating to Share Purchase Dismissed ------------------------------------------------------------- The Management Board of Bank Millennium S.A. announces that on July 8, 2003 the bank received the decision of the District Court in Warsaw, XX Economic Division dated June 30, 2003 on discontinuance of proceedings on a claim brought by Mr. Wiktor Jedamski against the Bank, Banco Comercial Portugues S.A. and Eureko B.V., in the matter of establishment of invalidity of agreements on purchase of shares of former BIG Bank GDANSKI S.A. (now Bank Millennium S.A.) by Banco Comercial Portugues S.A. and Eureko B.V. from subsidiaries of the Bank and prescription of redemption of these shares. At the same time the Court adjudged from Mr. Wiktor Jedamski in favor of the Bank, Banco Comercial Portugues S.A. and Eureko B.V. the amount of PLN36,000 to each, on account of costs of representation of the lawsuit. ===================== S W I T Z E R L A N D ===================== SWISS RE: Submits Final Application for China Branch License ------------------------------------------------------------ Swiss Re announced Monday that it had submitted business plans for its China branch, the final stage of its license application in that country. The company was granted approval on July 10, 2002 to proceed with branch application in China. The process required that full business plans be submitted for consideration of the China Insurance Regulatory Commission within one year, before a formal license could be issued. Swiss Re is confident that its application will be met with speedy approval. The license, once issued, will allow Swiss Re to operate on a national basis from its proposed China branch. Swiss Re opened representative offices in Beijing in 1995 and in Shanghai in 1996. Upon approval, the branch will be located in Beijing and an office will also be maintained in Shanghai. Swiss Re is a leading reinsurer and the world's largest life and health reinsurer. The company is global, operating from 70 offices in 30 countries. Since its foundation in 1863, Swiss Re has been in the reinsurance business. Swiss Re has three business groups: Property & Casualty, Life & Health and Financial Services. Swiss Re offers a wide range of traditional reinsurance products and related services, which are complemented by insurance-based corporate finance solutions and supplementary services. Swiss Re is rated "AA+" by Standard & Poor's, "Aa1" by Moody's and "A++" by A.M. Best. Swiss Re has operated in China since 1995, and now has over 200 staff in the China region, and more than 600 in Asia Pacific. In July 2002, the company received branch approval from the Chinese Government, making it among the first foreign reinsurers to enter China after the country joined the WTO. ***** Swiss Re is hoping to return to profit this year after posting a net loss of CHF91 million in 2002, is expecting first-half write-downs to be narrower than the impairment charges carried into the current business year. A spokesman for the world's largest reinsurer said investment write-downs will impact first half results but at a lower level than SFR1.4 billion. There is no current need for a capital increase as well, and no acquisitions are planned. CONTACT: SWISS RE Corporate Communications Hong Kong, Phone: +852 2582 3660 E-mail: asia@swissre.com =========================== U N I T E D K I N G D O M =========================== ACCOUNTANCY TUITION: Administrative Receivers Appointed ------------------------------------------------------- The Insolvency Act 1986 COMPANY NAME: Accountancy Tuition Centre Limited REGISTERED NUMBER: 01927499 FORMER COMPANY NAMES: ATC Chart Limited, Accountancy Tuition Centre Limited, Broton Limited TRADING NAME: ATC Limited NATURE OF BUSINESS: 8021 - General Secondary Education, 7487 - Other Business Activities CLASSIFICATION: 41 and 46 DATE OF APPOINTMENT OF ADMINISTRATIVE RECEIVERS: July 1, 2003 NAME OF PERSON APPOINTING THE ADMINISTRATIVE RECEIVERS: HSBC Bank plc and Close Investment Partners Limited NAMES OF PERSONS APPOINTED: Mark Shaw and Office holder No: 8893 Moore Stephens 1 Snow Hill London, EC1A 2EN Phillip Sykes Office holder No: 6119 Moore Stephens 1 Snow Hill London, EC1A 2EN ACCOUNTANCY TUITION: Mark Shaw Named Administrative Receiver ------------------------------------------------------------ The Insolvency Act 1986 COMPANY NAME: Accountancy Tuition Centre (Holdings) Limited REGISTERED NUMBER: 04033310 FORMER COMPANY NAME: Hillgate (168) Limited TRADING NAME: ATC Limited NATURE OF BUSINESS: 8021 - General Secondary Education, 7484 - Other Business Activities TRADE CLASSIFICATION: 41 and 46 DATE OF APPOINTMENT OF ADMINISTRATIVE RECEIVERS: July 1, 2003 NAME OF PERSON APPOINTING THE ADMINISTRATIVE RECEIVERS: HSBC Bank plc and Close Investment Partners Limited NAMES OF PERSONS APPOINTED: Mark Shaw and Office holder No: 8893 Moore Stephens 1 Snow Hill London, EC1A 2EN Phillip Sykes Office holder No: 6119 Moore Stephens 1 Snow Hill London, EC1A 2EN AWG PLC: Admits Bonus Paid to Restructuring Team was Improper ------------------------------------------------------------- AWG admits it has breached the rules of corporate governance by paying executives, involved in the group's financial restructuring, special bonuses, the Evening Standard said. It emerged in the company's annual accounts that ousted CEO Chris Mellor received a GBP150,000 one-off bonus for organizing the debt refinancing of its Anglian Water services, in addition to a GBP1.2 million pay off when he left. Finance director Elliot Mannis also got GBJP200,000, increasing his total pay for the year by more than 90% to GBP585,000. Anglian Water executives Roy Pointer and Tony Eckford also shared GBP125,000 in 'additional bonuses' on top of GBP173,000 'annual bonuses'. The remuneration committee admitted there might have been a mistake in granting special bonuses. The report of Logica executive Jim McKenna said: "The payments were made in July 2002. In accordance with best practice, the committee has now determined that special or transaction bonuses would not be expected to be paid in the future." CORUS GROUP: Appoints Andrew Robb Non-Executive Director -------------------------------------------------------- The Board of Corus Group plc appointed Andrew Robb a non-executive director of the company with effect from August 1, 2003. He will also become chairman of the Audit Committee. Mr. Robb retires from Pilkington plc on July 31, having been its Finance Director between 1989 and 2001 and since then the executive director responsible for relations with major partners and affiliates worldwide. He is a non-executive director of KESA Electricals plc and was a non-executive director of Alfred McAlpine plc from 1993 until May 2003. Commenting on Mr. Robb's appointment Jim Leng, the Chairman of Corus, said: "We are delighted that Andrew is joining us where his considerable experience in finance and international manufacturing industry will be of particular value as we re-shape and re-position Corus." Standard & Poor's Ratings Services last month lowered its long-term corporate credit, senior unsecured debt, and bank loan ratings on the U.K.-based steel consortium and related entities to 'B' from 'BB-', following a review. Credit analyst Olivier Beroud said: "Standard & Poor's expects European steel prices to fall in the second half of 2003 and it is likely, therefore, that Corus will only be able to generate funds from operations or free operational cash flows in line with what is expected of a 'B' rating category at best." EQUITABLE LIFE: Action Group Urges Clients Not to Waive Claims -------------------------------------------------------------- Attempts of Equitable Life to settle liabilities with a large group of policyholders encountered a glitch after a claimants' group warned former clients against entering into agreement with the society. Equitable Life plans to compensate thousands of victims of mis-selling of savings, but its move to pay policyholders 5% compensation on condition that the concerned parties waive claim on future negligence claim, was ridiculed by the Equitable Late Joiners Action Group. The group is composed of clients who were sold savings policy by the society after September 1998 when Equitable Life is supposed to have known it faces a huge bill for pension liabilities. The Times quoted Neil Britten, chairman of the action group, saying that Equitable Life wanted to "clear away outstanding claims for misrepresentation before the full evidence comes out in the open." Policyholders are expecting a Treasury-sponsored report on the investigation into the collapse of the society. The report is due in autumn. H BEESLEY: Administrators Offer Business and Assets for Sale ------------------------------------------------------------ The joint administrators offer for sale the business and assets of this manufacturer of specialist precision components for the aerospace, gas turbine and defense (marine) industries. Principal features include: leasehold premises at Freemans Common, Leicester, c25,000 sq ft; established Blue Chip customer base; original business founded in 1926; turnover of cGBP2.5 million per annum; and skilled workforce of 56 employees. CONTACT: Allan Graham or Chris Pole KPMG Corporate Recovery 1 Waterloo Way, Leicester, LE1 6LP Phone: 0116 256 6000 Fax: 0116 256 6033 E-mail: chris.pole@kpmg.co.uk Homepage: http://www.kpmg.co.uk HEALTH FOOD: Liquidator Offers Business for Sale ------------------------------------------------ The Liquidator offers for sale a health sector food brand. Principal features include two registered trademarks, U.K. wide distribution, 22 fully tested (HFMA approved) products, record of steady sales growth since September 2001, and developed and endorsed by one of Europe's leading complementary health specialists. CONTACT: Roger Barnbrook McTear Williams & Wood Phone: 01223 370115 Fax: 01223 370116 E-mail: rogerbrook@mw-w.com INTERIOR SERVICES: Adverse Markets Dash Turnaround Hopes -------------------------------------------------------- Prior to entering its closed period following the end of its financial year to 30th June 2003, Interior Services Group plc is providing this trading update: Overview At the time of our interim results in March we reported 'whilst trading conditions generally are getting tougher, the key drivers for growth in our business remain valid'. And so it has proved, with a number of adverse situations occurring together. The cumulative effect will be a weaker second half compared to first. The general uncertainty created by the Iraq war and SARS (affecting our Asian JV) resulted in a general underperformance in new sales, leaving the order book just below last year's levels. Facilities Creation The core businesses in the Facilities Creation division, Interior and Exterior, have done well to weather the substantial decline from occupiers for Central London fit out, with new build and refurbishment work for property owners in London and the Regions. The transition from a London biased fit out business to a national business serving both occupiers and owners is well advanced. Recent new orders have further reduced the dependency on the private commercial sector, with more than 50% of work secured coming from non-commercial sectors. In the Education sector we now have significant experience, including the most recently awarded Goldsmiths College, University of London. Following review of our European operations, we are reducing our stake from 50% to 20% in our French JV and mothballing our wholly owned German business where activity has been weak. All costs, which are limited, have been absorbed in this half. In Asia our plan to convert our 50% JV share in Hong Kong into 22% of listed CityAxis Holdings in Singapore is awaiting shareholder approval, expected in August. ISG Occupancy Following reorganization in the first half at a cost of GBP800,000, our expectations of a return to profitability have been dashed on two fronts. This has been due to the continuing decline in Advisory and transactional income in an ongoing difficult market place, and by not meeting new sales targets. As a result, a further overhead reduction program has been undertaken at a cost of GBP700,000 in the second half, which will include the closure of a surplus office in the City and a part closure of the Bristol Office. We will be reviewing the carrying value of various assets in this division on the balance sheet post the year-end. Outlook With the growth in public expenditure there is plenty of potential for the ISG offering. As PFI and PPP will play a major role as the distributor of government funds, we will be further targeting this area where we have already had some success as both a principal (Willesden Hospital) and as a Tier One Supplier for a remand center in Bedford. We are currently bidding for LIFT health schemes as a principal in partnership with others and as a Tier One construction partner for outsourced schools. With a budget of over GBP1 million set aside for further PFI bids in 03/04, profits will be subdued in the coming year. With benefits from this investment hopefully starting to flow through in 04/05, the group is well positioned to benefit from the potential growth of our markets in the medium to long-term. CONTACT: INTERIOR SERVICES GROUP PLC David King, Executive Chairman Phone: 020 7392 5251 Robert Horvath, Group Managing Director Phone: 020 7392 5323 David Lawther, Group Financial Director Phone: 020 7392 5307 Homepage: http://www.theoccupancybusiness.com City Profile Simon Courtenay Phone: 020 7448 3244 IREVOLUTION GROUP: On the Brink with No Bidder for Part or Whole ---------------------------------------------------------------- The Directors of iRevolution Group plc announce that they are no longer in discussions in connection with a potential offer for the company. The group currently has cash resources of approximately GBP250,000, which is not sufficient to finance the group on an ongoing basis. In the light of this, the Directors are currently in discussions with a third party concerning the potential disposal of the Group's remaining operating subsidiary, iRevolution Limited. As a result of the trading of that subsidiary, the proposed level of consideration payable under the disposal would not add significantly to the limited cash resources of the group. Due to the difficult cash position and with no alternative offers for either the subsidiary or for the company as a whole, there is unlikely to be any value remaining for shareholders following the disposal. A further announcement will be made in due course. LAPOINTE LIMITED: Receivers Auction Business, Assets ---------------------------------------------------- The Joint Administrative Receivers, G S Johal and L A Manning offer for sale as a going concern the business and assets of Lapointe Limited (In Administrative Receivership) t/a Forst Broach (a) Largest broaching design and manufacturing company in the U.K. operating from two sites: Leicester (1) Approximately 20,000 sq ft (1,800 sq. m) freehold premises (2) CNC automatic profile grinding machines with CAD (3) Largest subcontract broaching facility in the U.K. (4) Vertical broaching machines available up to 40 ton x 2-meter stroke (5) Skilled workforce (55 employees) (6) Visit http://www.lapointe.co.ukfor more detailed product information Waterford (1) Approximately 90,000 sq ft (8,100 sq m) leasehold premises (2) Manufacture of vertical pull down machines (3) Forst "table up" and "Lapointe Champion" machines (4) Skilled workforce (52 employees) (5) Visit http://www.lapointe.co.ukfor more detailed product information. CONTACT: Gurpal Johal or Ravi Sembi Aspect Court, 4 Temple Row Birmingham B2 5HG Phone: 0121 212 4999 Fax: 0121 212 4944 E-mail: rdeane@krollworldwide.com LE MERIDIEN: Saudi Prince's Offer Won't Likely Get Support ---------------------------------------------------------- Lehmans Brothers could still remain as main player in attempts to rescue troubled hotel chain Le Meridien despite the emergence of Saudi billionaire Prince al-Waleed bin Talal's name in the process. Corporate financier Guy Hands tipped The Guardian that an offer from the prince is unlikely to win the backing of the company's main banks, as the lenders are still pinning hopes in the efforts of U.S. investment bank Lehmans Brothers. The company risks going under administration after missing a GBP20 million quarterly rent payment to Royal Bank of Scotland. The report said Mr. Hands wields substantial influence within the camp of senior debt holders, who prefer the rescue package being put together by Lehmans. This package, however, could force the investment bank to write down more than GBP200 million in mezzanine debt to Le Meridien if a rescue is not secured. Senior debt holders include CIBC and Merrill Lynch. Mr. Hands is expected to provide GBP150 million investment as part of a rescue package, but a deal has not yet been reached after some weeks on failure of the parties to agree on interest rates. Le Meridien stakeholders now have until July 16 to agree on a rescue deal. According to the report, Prince al-Waleed, who had been in talks with Terra Firma about a counter rescue, could only steal the show if Lehmans fail on its role. LE MERIDIEN: Sells Hildesheim-Hanover Hotel for EUR5.7 Million -------------------------------------------------------------- Christie & Co International, on the instructions of Le Meridien, offers in the region of EUR5,750,000 freehold Hildesheim-Hanover Hotel. Landmark hotel property overlooking the market square; 1111 en suite letting bedrooms; range of conference, restaurant and banqueting facilities; indoor pool and sauna; and circa 30 minutes by car to Hanover and Trade Fair. CONTACT: CHRISTIE & CO INTERNATIONAL OFFICES London Phone: +44 (0) 20 7227 0747 Frankfurt Phone: +49 (0) 69 90 74 57-0 Paris Phone: +33 (0) 1 53 96 72 72 Barcelona Phone: +34 93 343 61 61 Homepage: http://www.christie.com LOMBARD MEDICAL: Board Proposes Recapitalization to Secure Biz -------------------------------------------------------------- The board of Lombard announces that, following consideration of the most appropriate mechanism for making available funds from Advanced Medical Technologies plc, the Board is proposing a recapitalization of Lombard. Currently funds from Advanced Medical Technologies are being made available to Lombard in the form of a short-term loan repayable on demand. In the view of the Board this does not give Lombard long-term stability. The Board therefore wishes to capitalize Lombard on a basis appropriate to Lombard's status as a development company. It is proposed that the recapitalization of Lombard will be in the form of an offer for subscription of an equity based instrument (yet to be determined), to be implemented following the close of the recommended offer for Lombard by Advanced Medical Technologies due to take place at 3.00 p.m. on July 11, 2003 and the subsequent cancellation of listing on AIM of the Lombard Shares, which is anticipated to take place with effect from 7.00 a.m. on July 28, 2003. In accordance with statutory pre-emption rights, all shareholders on the Lombard register at the relevant record date will be eligible to subscribe under the Recapitalization on a pro-rata basis. Advanced Medical Technologies has indicated to Lombard that it will take up its entitlement under the Recapitalization in full. The Recapitalization will be subject to shareholder approval at an extraordinary general meeting of the Company. The Board will be writing to shareholders in due course with further details of the Recapitalization. CONTACT: LOMBARD MEDICAL Simon Stock Director Phone: 020 7710 4500 MAXIFREEZE LIMITED: Administrator Sells Firm as Going Concern ------------------------------------------------------------- North East Frozen Food Retail Outlet Chain The Administrator Ian William Kings offers for sale as a going concern the business and assets of the company. Principal features of the business include central distribution with 16,000 sq ft cold store; network of 12 retail outlets covering North East of England; and turnover approximate GBP3 million. Potential purchasers should contact Ian Kings or Steven Ross at: Tenon, Tenon House, Ferryboat Lane, Sunderland, SR5 3JN. Phone: 0191 511 5000 Fax: 0191 511 5001 E-mail: steven.ross@tenongroup.com PNC TELECOM: Announces Changes in Management Board -------------------------------------------------- PNC Telecom announced Tuesday that Geremy Thomas and Jeffrey Pack ceased to be directors of the company on July 3, 2003 and that on June 26, 2003, Jeremy Brade resigned as a director. Late in June, the Board of PNC Telecom confirmed that the firm's application to the High Court for an administration order was successful and that Christopher Laughton and Jonathan Birch of Numerica have been appointed joint administrators. The Board believes the making of the order is in the best interests of all stakeholders within the business. In May, PNC Telecom sold its two principal businesses, KJC Mobile Phones, a mobile phone retail and distribution business, and PNC Telecom Services, a fixed line telecom business, to Harthall Limited. The disposals left the company with no ongoing business. In the year ended March 31, 2002, KJC made an operating loss of GBP2.1 million and Services made an operating loss of GBP2.9 million. As of March 31, 2002, KJC had net operating assets (excluding goodwill) of GBP0.8 million and Services had net operating liabilities (excluding goodwill) of GBP2.5 million. CONTACT: PNC TELECOM PLC Ian Gray Phone: 08700 775776 ROYAL & SUN: Considers Divesting Real-Estate Brokerage Operation ---------------------------------------------------------------- Royal & Sun Alliance Insurance Group Plc is considering divesting its loss-making residential real-estate brokerage operation, Sequence, Bloomberg said citing people familiar with the plan. Malcolm Gilbert, spokesman for U.K.'s second-biggest property and casualty insurer which is currently selling units to raise capital, declined to confirm the plan, but said: "We are in a series of actions that would release capital from that which we don't see as core to the prime property and casualty business." Sequence, the third-biggest real-estate chain in the U.K. with 330 branches, sustained a net loss of GBP4.8 million in 2002, while recording revenue of GBP101 million, a filing with U.K. regulators showed. Analysts said the operation could be sold at as much as GBP50 million (US$82 million), but Robin Savage, an analyst at WestLB Panmure in London said restrained earnings growth due to falling consumer confidence could constrain Royal & Sun from getting the price it wants for. "It's a buyer's market," he said. ROYAL & SUN: Standard & Poor's Revises Outlook to Negative ---------------------------------------------------------- Standard & Poor's Ratings Services said it revised its outlook on various entities of U.K.-based Royal & Sun Alliance Insurance Group PLC to negative from developing. At the same time, Standard & Poor's affirmed its long-term counter-party credit and insurer financial strength ratings on the group. In addition, Standard & Poor's affirmed its 'BBB' long-term junior subordinated debt rating on the notes issued by Royal & Sun Alliance Insurance Group PLC and guaranteed by Royal & Sun Alliance Insurance PLC (local currency A-/Negative/--, foreign currency A-/Negative/A-2), the main operating company of Royal & Sun Alliance Insurance Group PLC. Standard & Poor's also affirmed its 'A-2' short-term debt rating on Royal & Sun Alliance Insurance PLC's US$1 billion CP program. "The outlook revision reflects Standard & Poor's concerns that the group may not achieve the necessary recovery in operating performance or fully deliver on the group restructuring and capital-release program," said Standard & Poor's credit analyst Rowena Potter. "These concerns relate primarily to the U.S. operations." The ratings reflect Royal & Sun Alliance Insurance Group PLC's strong business position, poor recent operating performance, adequate capitalization, and restricted financial flexibility (defined as the ability to source capital relative to requirements). The negative outlook reflects Standard & Poor's concerns that ongoing issues relating to reserve adequacy at the U.S. operations may hinder prospective group operating performance and capital formation. Standard & Poor's expects the combination of increases in premium rates, risk reduction, and group restructuring to translate into a reported combined ratio of less than 102% in 2003, with an ROR in excess of 5%. The U.S. operations are collectively expected to achieve a combined ratio below 108%. Significant progress has already been made in Royal & Sun Alliance Insurance Group PLC's wide-ranging restructuring and capital-release program, including the IPO of its Australian and New Zealand operations and the sales of the health business in the U.K. and Royal Specialty Underwriting Inc. in the U.S. Nevertheless, there remains some risk that the group will be unable to restore capital adequacy into the 'A' range according to Standard & Poor's risk-based capital model by 2004, due primarily to concerns about the U.S. operations. SAFEWAY PLC: Long-term Prospect Remains Hazy, Says Analyst ---------------------------------------------------------- Safeway failed to earn solid confidence regarding its financial standing despite reporting steady trading performance in a challenging environment. Chairman David Webster said: "Despite the clearly challenging environment, our trading performance has continued to be resilient and first quarter profits were in line with last year before bid costs." The supermarket reported a 1.1% increase in total sales at its annual meting, although like-for-like sales fell 0.6% in the first 12 weeks, against a 0.8% lift in the first six weeks. Paul Smiddy, an analyst at Baird said: "To keep profits stable is a bit of a victory. But they are hacking away at every cost and are obviously running the business for the short term. I would be surprised if Safeway reported similarly good sales in the second quarter." The Telegraph attributed the lower like-for-like sales and flat first quarter profits to the uncertain bid status of rivals Tesco, J Sainsbury, Asda, Morrisons and BHS owner Philip Green, for the supermarket. SMF TECHNOLOGIES: Board Says Sale of Subsidiaries Underway ---------------------------------------------------------- The Board of SMF Technologies plc made this statement at the Extraordinary General Meeting held July 8, 2003: Following the announcement of the conditional sale of the trading subsidiaries of the company, the Board received two approaches seeking to buy these in competition to the offer from management. Neither of these offers have been progressed by the other parties. At the Extraordinary General Meeting held Tuesday all resolutions were passed. Completion of the sale of the trading subsidiaries is now taking place. The capital reconstruction is also therefore implemented and the ordinary shares of EUR0.01 each will commence trading on AIM Wednesday. The Board hopes to announce details of a proposal to use the Company as a shell in the near future, but if such an approach is not brought to fruition the company will be placed in members voluntary liquidation in line with the timetables set out in the Circular to shareholders. SUNSTREET LIMITED: Joint Administrative Receivers Sell Business ------------------------------------------------------------- The Joint Administrative Receivers, Angus Martin and Ian Brown, offer for sale the business and assets of Sunstreet Limited, the Keighley based print, direct mail and storage & distribution company. (a) Combined turnover of GBP8 million (b) Separate printing, direct mail and storage & distribution businesses (c) Freehold warehouse with extensive racking (d) Other freehold and leasehold premises (e) Printing and direct mail machinery (f) Existing blue chip customer base (g) Dedicated and skilled workforce CONTACT: Dan Butters Deloitte & Touche 1 City Square, Leeds LS1 2AL Phone: 0113 243 9021 E-mail: dbutters@delloite.co.uk TXU EUROPE: German Unit Sells 74.9% Stake in Local Utility ---------------------------------------------------------- The German arm of TXU Europe, TXU Stadtwerke Holding GmbH & Co KG, has formally retreated from its investment in northern Germany by selling its 74.9% stake in Braunschweiger Versorgungs AG, supplier of power gas, heat and water. The deal is yet to be approved by the city of Braunschweigh, which holds the remaining 25.1% of the share capital of raunschweiger Versorgungs through its 100% subsidiary, Stadtwerke Braunschweig GmbH. Utilities Avacon and Stadtwerke Hannover indicated they would participate in the process. Mannheim utility, Dutch utilities Nuon, and Essent, are mentioned as possible subscribers. South German utility EnBW could also be interested. TXU Europe announced in November its intention to sell its German utility shareholdings after slumping U.K. wholesale power prices sent it into administration. Dutch bank ABN Amro is advising TXU in the sale. WORLD SPORTS: Posts Final Results for Year-ended October 2002 ------------------------------------------------------------- Shareholders will be aware from a number of announcements that have been published since the company's last interim results that there has been significant change in the company. The company's trading subsidiary, World Sports Solutions (International) Limited, went into creditors' voluntary liquidation in March 2003. Given that World Sports Solutions (International) Limited is in liquidation and had not been included previously in group accounts, and the audited accounts to October 31, 2002 are not available, this company has been excluded from consolidation. As a consequence of this, a group profit and loss account has not been presented. The company's shareholding in World Sports Solutions (International) Limited has been treated as an investment which now has no value. Shareholders will see that this has resulted in a loss before tax of GBP9,763 million after an exceptional charge of GBP9,462 million in respect of the World Sports Solutions (International) Limited investment. World Sports & Media Limited was acquired as part of the original reversal of World Sports Solutions (International) Limited into the company, as it held an interest in World Sports Solutions (International) Limited, and as such the investment is considered to have no continuing value. Consequently it has been fully written off in the year. Given the charges which have been made to account for the investment in World Sports Solutions (International) Limited, the net assets of the Company are now substantially less than its called-up share capital. Accordingly, as required by section 142 of the Companies Act 1985, as well as the notice convening the Annual General Meeting, shareholders are being sent a notice convening an Extraordinary General Meeting of the Company to consider whether any, and if so, what steps should be taken to deal with the situation. With regard to the company, details of various arrangements were announced to the London Stock Exchange on May 1, 2003. These included certain substantial creditors of the Company having agreed to accept shares in the Company in settlement of sums due to them and Mr. Simon Eagle, a recently appointed director of the Company, having provided certain loan monies to the company. Mr. Eagle has since been appointed Chief Executive Officer. Also, as was announced on May 1, 2003, your Board intends to broaden the company's focus to include financial consultancy services. I am pleased to say that in line with this intention, as well as SP Active Limited, based in London, which provides a range of marketing support services, the company has established a legal, accounting and compliance services business through its subsidiary Mottram Partners Limited based in Bishop's Stortford. The company also intends to establish SP Financial Services Limited to provide a range of financial advisory services and SP Bell Limited to be an execution-only stockbroking business based in Manchester. The Board is also investigating the provision of services in the areas of taxation advice, wills and probate, and human resources. The company will advise shareholders of future developments with regard to its business in due course. On behalf of your Board, I would like to offer apologies to shareholders for the late publication of the company's financial statements, but am pleased to report that since the audited accounts have now been published the company's shares have ceased suspension. Shareholders will be aware that my chairmanship of the company is a temporary measure following the resignation of Lord Taylor of Warwick in February 2003. Your Board will now look to appoint a permanent successor. Shareholders will also be aware of the resignation of Ian Bullough as the Company's Chief Financial Officer in May 2003, and I would like to thank him for his services to the Group. His successor is Darren Edmonston who was appointed on May 29, this year. It is the Board's intention also to appoint another non-executive director who can bring complementary skills to the Company. Finally, as well as the usual business, shareholders will note that it is proposed that a resolution is put to the Annual General Meeting to change the name of the company to 'SP Holdings PLC'. This, together with the other steps that have been taken by the Board over recent months, provides a strong foundation for the future of the company. Selwyn Lewis Non-Executive Chairman To view full report and financials: http://bankrupt.com/misc/World_Sports.htm WS ATKINS: Sells Subsidiary's Office to Reduce Debt --------------------------------------------------- WS Atkins plc said on Tuesday it has completed the sale of the Belfast office of its subsidiary Lambert Smith Hampton Group Limited to BTW Shiells Limited. The office has GBP305,000 net assets attributable. The company further said the disposal will not have a material impact on Atkins. It plans to use the proceeds to reduce debt, which has increased from GBP71.9 million as of March from GBP57.2 million in the same period last year. Atkins is one of the world's leading providers of professional, technologically based consultancy and support services. Atkins operates around the world and employs 15,000 permanent staff. CONTACT: WS ATKINS Richard Scrase, Head of Communications Phone: 01372 752897 E-mail: richard.scrase@atkinsglobal.com Rebecca Blackwood or Craig Breheny Phone: 020 7404 5959 Brunswick YELL GROUP: Speculations Drive IPO Price to As High As 300p ----------------------------------------------------------- Fund managers planning to invest in the Yell public offering can't seem to agree what price to expect for the shares this week, with some betting for the higher end towards 300p, while many others at the lower end at 250p. Investors relying on indications from Yell's advisers believes the share price will be 280p, valuing the international directories business at GBP1.97 billion (US$3.2 billion). But many fund managers also expect the company to price the shares at the low end of this latest range to ensure a successful after-market, according to the Financial Times. The company could announce the flotation price later Wednesday after Yell's management and advisers, Merrill Lynch and Goldman Sachs, are able to test investor reaction in the U.S. Yell Group is conducting a capital raising of approximately GBP433 million (gross proceeds) as part of a primary and secondary equity offering, Yell Finance B.V. said. A portion of the proceeds will be used to repay existing debt. Standard & Poor's placed its 'BB-'long-term corporate credit rating on Yell on CreditWatch with positive implications following the announcement. Standard & Poor's credit analyst Anna Overton said: The CreditWatch placement reflects management's intention to reduce Yell's cash paying net debt to GBP1.30 billion ($2.20 billion) in financial 2003/2004 from GBP1.55 billion at the end of March 2003, to repay GBP100 million of vendor loan notes held by British Telecommunications PLC, and to exchange GBP700 million of shareholder bonds into equity." * S&P: Risk of State Intervention Affects Ratings of Utilities -------------------------------------------------------------- When the ratings on regulated U.K. electricity and water operating companies falls close to non-investment-grade, default risk for lenders to the holding companies is heightened, according to a report released by Standard & Poor's Ratings Services. "The risk of regulatory intervention to restrict cash flows between the operating company and holding company is particularly marked if the corporate credit ratings on the operating company fall to the investment-grade threshold of 'BBB-'," said Standard & Poor's credit analyst Paul Lund. The report examines Standard & Poor's approach to ratings on U.K. utility holding companies in such a situation. It also highlights the case of Midlands Electricity PLC (B/Watch Pos/--), Avon Energy Partners Holdings (CC/Watch Neg/--), and Aquila Networks PLC (BBB-/Watch Pos/A-3), in which regulatory action was taken. The commentary article entitled "U.K. Regulatory Ring-Fencing Risk to Utility Holding Companies: Standard & Poor's Approach" was published on July 8, 2003, and is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at http://www.ratingsdirect.com Alternatively, call one of Standard & Poor's Ratings Desks: London (44) 20-7847-7400; Paris (33) 1-4420-6705; Frankfurt (49) 69-33-999-223; or Stockholm (46) 8-440-5916. Members of the media may contact the Press Office Hotline on (44) 20-7826-3605 or via media_europe@standardandpoors.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. 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 * * *