/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/030805.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 Tuesday, August 5, 2003, Vol. 4, No. 153 Headlines A U S T R I A RHI AG: Bankrupt US Companies File Chapter 11 Plans in Pittsburgh F R A N C E ALCATEL: Closes Sale of Optical Components Business to Avanex ALSTOM SA: Completes Sale of Turbines Business to Siemens ELITE INTERNATIONAL: Selling Losing Factories in France, Belgium EURO DISNEY: European Travel, Tourism Downturn Hits 3Q Revenue SUEZ SA: Reports 4.3% Growth in Revenues in First Half of 2003 G E R M A N Y EM.TV & MERCHANDISING: Closes Sale of The Jim Henson Company LION BIOSCIENCE: Expects to Break Even in the Fourth Quarter PROSIEBENSAT.1 MEDIA: Haim Saban Returns with New Buyout Proposal USU-OPENSHOP: Lowers Net Loss to EUR1 Million in First Half 2003 WESTLB AG: Clarifies Reported Risks in Principal Finance Unit WESTLB AG: LT Ratings Lowered One Notch; ST Ratings Affirmed WESTLB AG: S&P Ranks Receivables Servicer as Above Average I T A L Y CIRIO FINANZIARIA: Decides to Put Company in Liquidation N E T H E R L A N D S B2B INTEGRATION: To Sell TIE Commerce as it Reviews Options HEAD N.V.: Conference Call for 2Q Results Set Next Week KONINKLIJKE AHOLD: Fights Argentina Seizure of Disco Assets KONINKLIJKE AHOLD: Completes Sale of Santa Isabel to Cencosud N O R W A Y PETROLEUM GEO: Files Plan and Disclosure Statement in Delaware S W I T Z E R L A N D ABB LTD.: Asbestos Settlement Plan Gets District Court's Okay ABB LTD: BB+ Rating Remains Despite Asbestos Settlement Approval SWISS AIRLINE: Government Leaves Airline to its Own Resources U N I T E D K I N G D O M ABERDEEN ASSET: May Pull Out of Negotiations For Property Arm ASTON VILLA: Dismisses Rumors of Buyout Amidst Difficulties BAE SYSTEMS: Orders for Latest Hawk Aircraft Saves 470 Jobs CORUS GROUP: Secures New EUR1.2 Billion Banking Facility GOLDFISH: Centrica Sells Interest in Loss-making Business CORDIANT COMMUNICATIONS: WPP Group Completes Acquisition J SAINSBURY: Market Share in Region Now Falls Behind Asda's HENLYS GROUP: Expects Profits Downfall; Finance Director to Quit MYTRAVEL PLC: Agrees in Principle to Extend Convertible Bonds ROYAL MAIL: Faces Possible Workers' Strike Over Pay SOMERFIELD PLC: Acquisition by Sainsbury Open for Questions * Large Companies with Insolvent Balance Sheets ********* ============= A U S T R I A ============= RHI AG: Bankrupt US Companies File Chapter 11 Plans in Pittsburgh ----------------------------------------------------------------- In early 2002, RHI initiated the split from all its refractories companies in the USA due to asbestos-related problems. These companies were deconsolidated at December 31, 2001, and RHI successfully implemented the required capital restructuring. As a result of the steps taken by the US management, North American Refractories Co. and Global Industrial Technologies Inc. with the core companies Harbison-Walker and A.P.Green have been operating under Chapter 11 and reorganization proceedings since 2002. On Friday, the plans of reorganization for the North American Refractories Co. and Global Industrial Technologies Inc. groups were presented at the competent court in Pittsburgh. Thus another important step has been taken towards completing the Chapter 11 proceedings successfully. The parties involved in the Chapter 11 proceedings, especially the former owners of the refractories companies, the court in Pittsburgh and RHI, are reviewing the legal and economic implications of the plans. The scope and time at which RHI will be able to realize contractual claims for payments against parties involved will be determined in the course of this review. Objections against the presented plans of reorganization can be lodged at court at any time until the confirmation hearing, the final hearing to be set by the court. Due to the complexity of the reorganization, the court review may take several months before a date is set for the confirmation hearing. RHI continues to be confident that the development and conclusion of the Chapter 11 proceedings will not constitute a burden on the company's financial performance and results. =========== F R A N C E =========== ALCATEL: Closes Sale of Optical Components Business to Avanex ------------------------------------------------------------- Alcatel (Paris: CGEP.PA and NYSE: ALA) announced that it had completed the transaction to divest its optical components business to Avanex in a stock for stock transaction, following the approval of Avanex's shareholders and adherence to all customary regulatory requirements. The acquired business includes operations based in Nozay, France and Livingston, U.K. As part of this transaction, Avanex also acquires certain assets of Corning's photonics activities. Alcatel holds 28% of the combined entity. About Alcatel Alcatel provides end-to-end communications solutions, enabling carriers, service providers and enterprises to deliver contents to any type of user, anywhere in the world. Leveraging its long- term leadership in telecommunications networks equipment as well as its expertise in innovative applications and network services, Alcatel enables its customers to focus on optimizing their service offerings and revenue streams. With sales of EUR16.5 billion in 2002, Alcatel operates in more than 130 countries. ALSTOM SA: Completes Sale of Turbines Business to Siemens --------------------------------------------------------- ALSTOM announces that it has now completed the major part of the disposal of it medium gas turbines and industrial steam turbines businesses to Siemens AG. This was the second of the two transactions with Siemens AG announced on April 28, by which ALSTOM sold its industrial turbines businesses for an enterprise value of EUR1.1 billion and net cash proceeds of EUR950 million. Completion of this second transaction follows receipt of formal merger clearance from merger control authorities, principally in the U.S. and Europe. The disposal of the small gas turbine business to Siemens AG was completed on April 30, 2003. Certain minor parts of the business have not yet been transferred to Siemens AG pending completion of legal procedures in some jurisdictions. ALSTOM is a global leader in energy and transport infrastructure. The company serves the energy market through its activities in the fields of power generation and power transmission and distribution, and the transport market through its activities in rail and marine. In fiscal year 2002/03, ALSTOM had annual sales in excess of EUR20 billion and employed around 100,000 people in over 70 countries worldwide. CONTACT: ALSTOM SA Investor relations E. Chatelain Phone: +33 1 47 55 25 33 E-mail: investor.relations@chq.alstom.com ELITE INTERNATIONAL: Selling Losing Factories in France, Belgium ---------------------------------------------------------------- Elite International, a division of the Strauss-Elite Group, is reportedly looking for buyers for its factories in France and Belgium. According to Globes Online, Elite is in serious negotiations with a private brand firm in the region over a possible acquisition of its candy factory in France and its private coffee brand plant in Belgium, which are considered among the company's biggest losers. Last year, the plants which manufacture Elite's private brands in Europe, had a NIS12 million operating loss on sales of NIS270 million. First quarter sales amounted to NIS45 million this year, down NIS30 million from 2002 first quarter results. First quarter operating loss was NIS 2.2 million. Strauss-Elite Group CEO Erez Vigodman commented: "The private label in Europe is not part of our core business, and the company is focusing its efforts on its brand coffee business. We're considering the inquiries we've received, but there are no specific negotiations." A senior Elite source, however, told Globes Online that a serious offer had been received from one of Elite's customers in Europe, and was being assessed. The source added that Elite had not yet reported the negotiations to the Tel Aviv Stock Exchange, since it did not believe they necessitated a report. Moreover, Elite wishes to continue producing brand products in its European plants. The company said executives at Strauss- Elite Group regard it to be strategically worthwhile, which is contrary to a statement made by Vigodman in the past that the group would welcome a strategic partner or an issue for the group's coffee factories. EURO DISNEY: European Travel, Tourism Downturn Hits 3Q Revenue -------------------------------------------------------------- Euro Disney S.C.A., operator of Disneyland Resort Paris, reported that the ongoing European travel and tourism downturn, and recent strikes and work stoppages throughout France, combined with challenging general economic conditions in its key markets, have negatively impacted its operating results. Disneyland Resort Paris total revenues for the nine months ended June 30, 2003 amounted to EUR748.2 million compared to EUR734.9 million for the corresponding period of the prior year, an increase of 2%. Theme park revenues increased 1% to reach EUR352.6 million for the nine months ended June 30, 2003 primarily as a result of slightly higher attendance partially offset by slightly lower average spending per guest. The increase in attendance reflects a full nine months of Walt Disney Studios, which opened in March of 2002. Hotels and Disney Village revenues increased 6% for the nine months ended June 30, 2003 to EUR307.1 million, driven by strong increases in average guest spending per room and stable hotel occupancy. Disney Village revenues reported an 8% increase during the period as a result of higher guest volumes mainly due to the opening of Walt Disney Studios Park. Revenues generated by the Real Estate Development Activities Segment were EUR12.1 million, resulting in a decrease of EUR2.6 million, in line with our expectations. During the most recent quarter, the sustained and significant slowdown in European travel and tourism, as well as other economic factors mentioned above, have negatively impacted Disneyland Resort Paris to a greater extent than was previously anticipated. For the quarter ending June 30, 2003, total revenues decreased 7% to EUR275.6 million from EUR297.3 million in the corresponding period of the prior year. Resort Segment revenues decreased 9% to EUR268.8 million compared to EUR293.9 million in the prior year, reflecting the slowdown in travel and tourism, work stoppages and strikes throughout France, plus a difficult comparison with the prior year grand opening of Walt Disney Studios Park. Although average guest spending per room at the hotels increased significantly, third quarter theme park attendance and hotel occupancy were below prior year levels. Real Estate Development Activities Segment revenues increased EUR3.4 million during the quarter to EUR6.8 million. As a result of these travel and tourism and economic trends, the Company no longer forecasts to achieve its previously anticipated levels of theme park attendance and hotel occupancy for fiscal years 2003 and 2004. Consequently, the company does not expect to be in compliance with certain bank covenants for these periods, despite last quarter's agreement by The Walt Disney Company to waive royalties and management fees for the last three quarters of fiscal year 2003 and to defer the payment of fiscal year 2004 royalties and fees to the first quarter of fiscal year 2005. Therefore, the management team, recently strengthened with the appointment of Jeffrey Speed as the new Chief Financial Officer, has initiated discussions with its agent banks and The Walt Disney Company to secure the necessary bank covenant waivers or modifications and supplemental financing. If unsuccessful, the company would not expect to be able to repay its ongoing debt service obligations beginning with the June 2004 maturity of its EUR167.7 million line of credit with The Walt Disney Company, or sooner if the company's lenders were to accelerate, under the financing agreements, the maturity of approximately EUR1.7 billion of debt (including that of the unconsolidated financing companies). However, management believes that its discussions with the agent banks and The Walt Disney Company will ultimately be successful. Commenting on the situation, Andre Lacroix, Chairman and Chief Executive Officer of Euro Disney S.A., said: "We are currently facing a difficult period in the travel and tourism industry; however, I am optimistic concerning the future growth of Disneyland Resort Paris, the number one visited tourist destination in Europe. The recent trends demonstrate that we need to rebalance our financial structure over the coming months, and we believe that our consistent history of delivering solid operating performance will be the foundation upon which the company, our lenders, and The Walt Disney Company seek to reach a mutually acceptable resolution to our future financing needs. In the meantime, I want to assure our guests, our business partners and our 12,000 cast members, that Disneyland Resort Paris will continue to be a driving force in the European travel and tourism industry and will remain the premier European resort destination." Next Scheduled Release: Full Year Earnings in mid-November 2003 Additional Financial Information can be found on the Internet at http://www.eurodisney.com Euro Disney S.C.A. and its subsidiaries operate the Disneyland Resort Paris which includes: Disneyland Park, Walt Disney Studios Park, seven themed hotels with approximately 5,800 rooms, two convention centers, Disney Village, a dining, shopping and entertainment center, and a 27-hole golf facility. The Group's operating activities also include the management and development of the 2,000-hectare site, which currently includes approximately 1,100 hectares of undeveloped land. CONTACT: EURO DISNEY Philippe Marie, Corporate Communication Phone: +331 64 74 59 50 Fax: +331 64 74 59 69 E-mail: philippe.marie@disney.com Sandra Picard-Rame, Investor Relations Phone: +331 64 74 56 28 Fax: +331 64 74 56 36 E-mail: sandra.picard@disney.com SUEZ SA: Reports 4.3% Growth in Revenues in First Half of 2003 -------------------------------------------------------------- Highlights of First-half results: (a) Group revenues: +4.3% (EUR20.7 billion) (b) Revenues in Europe and North America: EUR18.6 billion, i.e. 89.7% of total revenues Total Group revenues at June 30, 2003 were EUR20.7 billion, an increase of 4.3% compared with the figure for the same period in 2002. Most revenues are generated in Europe and North America which together represent 89.7% of the total. Revenues generated there grew by 9.4% in relation to the 1st half of 2002. These revenues growth figures include the negative impact of exchange rate fluctuations, the favorable impact during the first six months of 2003 of natural gas price increases compared with 1st-half 2002 and the effect changes in Group structure. (a) Exchange rate fluctuations (negative impact EUR1,002 million), the main factors being the depreciations of the U.S. dollar (-EUR436 million), South American currencies (including Brazil for -EUR286 million and Argentina for - EUR58 million), and the depreciation of the pound sterling (- EUR66 million). (b) Changes in Group structure (positive impact EUR8 million). The main factors were the partial sale of Northumbrian (- EUR404 million), consolidation by the proportional method of AceaElectrabel S.p.A. and of Tirrenopower (the former Interpower) in Italy, and the full consolidation of Polaniec in Poland (+EUR401 million for the three companies). (c) Natural gas prices: natural gas prices were higher during 1st-half 2003 in relation to the same period in 2002, resulting in a revenue increase of EUR312 million. On a comparable basis, Group organic revenues were up 8.4%, as a result both of Energy (+9.2%) and Environment (+7.1%) activities. Energy benefited from sustained activity in the natural gas sector, which led in particular to portfolio optimization transactions (+EUR178 million). Also favorably impacting energy activities were a cold winter and the startup of four new power plants (+EUR176 million), including two in the United States. Environment activities benefited from the startup of the Porto Rico contract (+EUR226 million). Those various factors of one-off growth, accounting for more than 3% of organic growth during the first six months of 2003, will furthermore have a slight impact on the Group's margins. GROUP BUSINESS REVENUES TREND ENERGY Energy revenues grew by 9.7%, of which 9.2% came from organic growth. The favorable impact of changes in Group structure (EUR323.5 million) and natural gas price increases (EUR312 million) was nearly offset by the unfavorable impact of foreign exchange fluctuations (-EUR520 million). 1. Revenues of Electricity & Gas in Europe (EGE) increased by 18.4% during 1st-half 2003. On a comparable basis, revenues increased EUR525 million reflecting 10.0% organic growth, thanks to strong growth in natural gas sales: Electricity (a) In Belgium, electricity volumes sold to captive and deregulated customers increased slightly in volume terms despite the steady deregulation of the market. In value terms, these sales were level. (b) Outside Belgium sales progressed, up EUR80 million over the same period in 2002. Natural gas (a) sales to distributors in Belgium by Electrabel and Distrigaz increased following the growth in volume terms noted for the first quarter due to the harsher winter than in 2002. (b) export volumes grew substantially (+EUR73 million) following one-off sales in Spain during the first half of 2003 and the signing of new contracts in France. Sales completed in connection with the optimization of production assets and contract portfolios (a) these sales of electricity, natural gas and other fuels reached EUR664 million, or an increase of EUR178 million, mainly due to natural gas sales. 2. Electricity & Gas International revenues increased by 24.8% or EUR417 million on a comparable structural, exchange rate, and natural gas price basis, while having been favorably influenced by rationing in Brazil during 1st-half 2002. This growth was due mainly to: (a) North America, with the progression in LNG activity (+EUR160 million), the impact of a harsh winter for Trigen, and the startup of three new power plants, Red Hills, Mississippi on April 1, 2002, Ennis, Texas on May 2, 2002, and Monterrey, Mexico on April 12, 2003 (EUR124 million). (b) Latin America where, excluding the impact of rationing, sales increased in particular following the replacement in Brazil of the initial contractual volumes sold to distributors with new bilateral contracts (+EUR54 million). (c) Asia, with the startup of the Bowin power plant (Thailand) since the end of January 2003 (+EUR52 million) and the fine performance turned in by Hanjin City Gas (South Korea) (+EUR19 million). (d) non-North American LNG activity (+EUR54 million). 3. Revenues from Energy and Industrial Services increased by 3.1% (due to an increase in service activities and a slight drop in the operation and maintenance business), of which 2.3% came from organic growth. ENVIRONMENT Organic growth for Environment businesses was 7.1%. Exchange rate fluctuations and changes in Group structure (particularly the partial sale of Northumbrian) had unfavorable impacts of -EUR 482 million and -EUR354 million respectively. SUEZ Environment Local Services generated EUR5.9 billion in revenues, an overall decrease of 2.8%, including changes in Group structure (-EUR356 million), mainly related to the partial sale of Northumbrian, and to exchange rate fluctuations (-EUR270 million), offset by a sustained increase in organic growth. In fact, excluding Puerto Rico, the net progression amounted to EUR232 million, or 4.4% (including the Puerto Rico contract, the increase was 8.7%). This increase was due mainly to water and waste services activities in France (+3.8% and 5.5% respectively), as well as in Spain. In France, the continued development of sanitation activities in the municipal and industrial markets and increased hazardous waste landfill volumes are the main drivers of growth. Degremont continued its expansion in Europe (with numerous contracts signed in France, Spain, and Italy totaling EUR36 million). International activities benefited from strong organic growth in water in North America, with the July 1, 2002 startup of the new Puerto Rico contract which generated EUR226 million during the 1st half of 2003. Revenues from Environment Industrial Services (Ondeo Nalco and OIS) recorded net growth of 0.7%. Nalco revenues remained stable at +0.4%, while Ondeo Industrial Solutions revenues expanded with significant contracts signed during the 1st half 2003, representing over EUR 80 million in activity. OTHERS Revenues from the Communications sector grew by 21.7%, an increase of EUR67.3 million over 1st half 2002 due to good performance by M6 and to increased sales by Noos. This sector's organic growth was 9.4%. REVENUE BREAKDOWN BY GEOGRAPHIC ZONE Growth in France and Belgium was sustained. The Other European Union zone declined due to the partial sale of Northumbrian. Very substantial growth in North America resulted for 40% from the new Puerto Rico contract, that of the Other European countries resulted from the full consolidation of Polaniec. The decline in revenues from South America, Asia, and Oceania is mainly due to the depreciation of local currencies and the dollar. SUEZ, a worldwide industrial and services Group, provides companies, municipalities, and individuals innovative solutions in Energy - electricity and gas -- and the Environment -- water and waste services. In 2002, SUEZ generated revenues of EUR40.218 billion (excluding energy trading). The Group is listed on the Euronext Paris, Euronext Brussels, Luxembourg, Zurich and New York Stock Exchanges. CONTACT: SUEZ S.A. Financial Analysts Arnaud Erbin Phone: (331) 4006 6489 Eleonore de Larboust Phone: (331) 4006 1753 Bertrand Haas Phone: (331) 4006 6609 Homepage: http://www.suez.com ============= G E R M A N Y ============= EM.TV & MERCHANDISING: Closes Sale of The Jim Henson Company ------------------------------------------------------------ Following a nearly unanimous shareholder vote to approve the sale of The Jim Henson Company at the Annual General Meeting of EM.TV & Merchandising AG on July 23, 2003, the transaction was completed on July 31, 2003. As a result of contractual adjustments of the purchase price at closing, EM.TV received a reduced cash amount totaling approximately US$84 million. Simultaneously with the closing, the remaining Junior loan amounting to EUR12.5 million was repaid in its entirety. As a result, in accordance with current planning, the group's liquidity is now secured well into 2004. LION BIOSCIENCE: Expects to Break Even in the Fourth Quarter ------------------------------------------------------------ LION bioscience has reached a turnover of EUR3.9 million (vs. EUR7.3 million in the same period last year) in the first quarter (June 30) of the business year 2003/2004 and at the same time improved the net result in comparison to the same time span last year, from -EUR19.2 million to -EUR6.1 million. For the whole business year, the company now plans to reach revenues of EUR27.5 million (vs. EUR29.7 million in the same period last year), after having previously calculated with a considerable increase in turnover to EUR40 million. Due to successes in the restructuring program and because of additional measures announced [Fri]day, LION bioscience still expects to break even on an EBITDA-basis in the last quarter of 2003/2004. On the cost- and cash-side, the restructuring program showed a considerable effect in the first quarter: Total costs and expenditures sank to EUR9.2 million (vs. EUR19.8 million in the same period last year), the operative cash flow of -EUR7.2 million improved considerably (vs. -EUR16.4 million in the same period last year). Cash burn reduced during the reporting period to EUR7.9 million after EUR20.2 million in last years first quarter. In the reporting period, further measures were introduced to reduce costs. The most important step is the closure of the site in Columbus, Ohio, which is expected to be completed prior to the end of the current calendar year. On June 30, 40 people were employed in Ohio. The company explained that the expected, considerable rise in turnover towards the second half of the current business year is largely due to LION Target EngineTM, which was introduced in June 2003. In combination with the previously launched LION DiscoveryCenterTM, LION Target EngineTM is supposed to bring substantial value to the customer. The liquidity at the end of the year should amount to about EUR35 million (vs. the previously anticipated EUR30 million). The expected increase in liquidity is based mainly on the faster than expected realized cost effects from the restructuring activities. CONTACT: LION BIOSCIENCE Gunter Dielmann Phone: +49/6221/4038-249 E-mail: guenter.dielmann@lionbioscience.com PROSIEBENSAT.1 MEDIA: Haim Saban Returns with New Buyout Proposal ----------------------------------------------------------------- U.S. billionaire Haim Saban has renewed efforts to acquire German broacaster ProSiebenSat.1, AFX said citing a pre-release report of Sueddeutsche Zeitung. According to the report, Mr. Saban is able to pay EUR700 million for a majority stake in ProSiebenSat.1, to finance the high-yield bond of EUR200 million and to participate in a EUR300 million capital increase. He will now also make a mandatory offer for the remaining shares in the broadcaster. The report quoted Bayerische Landesbank chairman Werner Schmidt saying: "If Saban proves his financing is solid and he can pay immediately, then the deal will be closed, otherwise not." The Businesss also quoted sources close to the discussions saying Mr. Saban, who is being backed by five investment banks and an international bank, is willing to offer EUR470 million for the broadcaster. A deal with creditors of insolvent KirchMedia, which owns the 52.5% of ProSiebenSat.1, and insolvency administrator Michael Jaffe, could be agreed Tuesday next week, Mr. Schmidt said. "The sale could be closed within a week, we are not prepared to barter for months," he said, according to the report. USU-OPENSHOP: Lowers Net Loss to EUR1 Million in First Half 2003 ---------------------------------------------------------------- Highlights of six-month figures: (a) Significant reduction of net loss with lower costs (b) Restrained sales development in the first half of 2003 (c) Stable balance sheet structure and secure liquidity base (d) Further improvement of result expected for second half of 2003 In the first six months of the 2003 financial year USU-Openshop improved EBIT significantly against the previous year, to -EUR2.1 million (PY: -EUR11.5 million, pro forma* PY: -EUR14.5 million), on the basis of the targeted cost reduction. At -EUR1 million, the net loss was also considerably lower (PY: -EUR10.0 million, pro forma* PY: -EUR15.3 million). At EUR10.0 million (PY: EUR9.1 million, pro forma* PY: EUR13.5 million) consolidated sales of the company during the reporting period were below the pro forma sales of the previous year. The Management Board anticipates a further improvement of result in the second half of 2003 against the first six months of the current financial year. USU-Openshop succeeded in significantly reducing its cost basis in the first half of 2003 due to the restructuring measures executed in the previous year. Thus the marketing and sales, research and development as well as general and administrative costs in the reporting period dropped considerably against the previous year, to EUR5.4 million (PY: EUR13.3 million, pro forma* PY: EUR14.6 million). As a result, group EBIT improved from -EUR11.5 million in the previous year (pro forma* PY: -EUR14.5 million) to -EUR2.1 million in the reporting period. The net loss of the first six months of the 2003 financial year was also considerably lower at -EUR1.0 million than in the previous year (PY: -EUR10.0 million, pro forma* PY: -EUR15.3 million). With the average number of outstanding shares being 17,211,186 (PY: 14,255,231 shares, pro forma* PY:17,211,186 shares), the company achieved a result per share of -EUR0.06 (PY: -EUR0.70 per share, pro forma* PY: -EUR0.89 per share) over the reporting period. At EUR10.0 million, consolidated half-year sales were under the yoy value on a pro forma* basis of the previous year (PY: EUR9.1 million, pro forma* PY: EUR13.5 million). Apart from the adjustment of the portfolio, the extensive reduction of personnel and the increasingly fierce price competition in the first half of 2003, budget cuts and delayed projects negatively impacted sales development in the licensing area. Structured by segment, the product sector IT-Controlling achieved revenues of EUR4.2 million and the solution sector Business Solutions EUR5.8 million. In operating business, projects at companies such as AGIS, Wustenrot & W�rttembergische, Stadt Koln and Volkswagen, were continued. In the automotive area USU-Openshop gained a further well-known customer for the software product Valuemation, in MAN. Liquid funds and investments totaled EUR48.7 million (December 31, 2002: EUR55.3 million) at the end of Q2 2003. The reduction of liquid funds results predominantly from the reduction of liabilities at the company to a total of EUR8.1 million to the end of the reporting period (December 31, 2002: EUR13.0 million). The company also purchased a further 165,000 shares of USU AG in April 2003 and posted costs of EUR1.6 million in the context of the scheduled complete takeover of USU AG. As a result, the balance sheet total dropped to EUR81 million (December 31, 2002: EUR86.4 million) as per June 30, 2003. Equity amounted to EUR72.8 million (December 31, 2002: EUR72.9 million) as at June 30, 2003. The equity ratio was 89.9% (December 31, 2002: 84.4%). The Management Board anticipates an overall improvement in business development for the second half of 2003. A focus will be on the further reduction of the deficit. Achieving the goal of profitability will largely depend on the stabilization of licensing fees. *The reporting period comprises the first half of 2003, consisting of the six months from January 1, 2003 to June 30, 2003. Correspondingly, the comparative period of the previous year consists of the six months from January 1, 2002 to 30 June 2002. In the previous year USU AG was consolidated with effect of March 11, 2002. To secure comparability of information for the first half of 2003 with that for the comparable period of the previous year additional pro forma details are posted for the profit and loss statement, presenting a pro forma consolidation of USU AG as at January 1, 2002. This corporate announcement and further information material on USU-Openshop AG are available under http://www.usu-openshop.com CONTACT: USU-OPENSHOP AG Corporate Communications Dr. Thomas Gerick Phone: +49 71 41 / 48 67 440 Fax: +49 71 41 / 48 67 909 E-mail: t.gerick@usu-openshop.com Investor Relations Falk Sorge Phone: +49 71 41 / 48 67 351 Fax: +49 71 41 / 48 67 108 E-mail: f.sorge@usu-openshop.com WESTLB AG: Clarifies Reported Risks in Principal Finance Unit ------------------------------------------------------------- WestLB AG issued the following statement: In an article published in the Rheinische Post newspaper on July 24, 2003, the impression is given that risks in an amount of EUR1.5 billion had accumulated in the Principal Finance unit of the Bank. This is incorrect. In the article transaction volume and risk are confused with one another. Two reputable international investment banks recently examined the portfolio of the Principal Finance unit - with the exception of the well-publicized case of risk provisioning - and confirmed its intrinsic value. WESTLB AG: LT Ratings Lowered One Notch; ST Ratings Affirmed ------------------------------------------------------------ Standard & Poor's Ratings Services said it lowered its long-term counterparty credit and certificate of deposit ratings on WestLB AG and Landesbank Nordrhein-Westfalen to 'AA' from 'AA+'. The 'A-1+' short-term ratings were affirmed. The outlook is negative. At the same time, the 'AAA' ratings on Offentliche Pfandbriefe issued by Landesbank Nordrhein-Westfalen were affirmed. The outlook is stable. In a related action, Standard & Poor's Ratings Services also lowered its long-term counterparty credit and certificate of deposit ratings on Westdeutsche Immobilienbank and WestLB Covered Bond Bank PLC to 'AA-' from 'AA'. The 'A-1+' short-term ratings were affirmed. The outlook is negative. The 'AAA' ratings on Offentliche and Hypothekenpfandbriefe issued by Westdeutsche Immobilienbank were affirmed. The outlook is stable. The rating action follows the downgrade of WestLB's key guarantor the State of North Rhine-Westphalia (AA/Stable/A-1+; for rating actions on North Rhine-Westphalia, please see separate media release entitled "North Rhine-Westphalia LT Rating Cut to 'AA' on Deficits and High Debt; Outlook Stable", published on Aug. 1, 2003, on RatingsDirect, Standard & Poor's Web-based credit analysis system). The counterparty credit ratings on WestLB and Landesbank Nordrhein-Westfalen reflect that the banks will continue to benefit from State of North Rhine-Westphalia's maintenance obligation (Anstaltslast) and statutory guarantee (Gewahrtragerhaftung), which can be maintained until July 18, 2005. The counterparty credit ratings on Westdeutsche Immobilienbank reflect that the bank will continue to benefit from the maintenance obligation and statutory guarantee of its key owner, WestLB, which can be maintained until July 18, 2005. The one notch distinction between Westdeutsche Immobilienbank and WestLB reflects that Standard & Poor's relies less on indirect state guarantees as direct state guarantees are seen as the strongest form of creditor protection. The counterparty credit ratings on WestLB Covered Bond Bank PLC are based on support from its owner WestLB. The one notch distinction between WestLB Covered Bond Bank PLC and WestLB reflects that WestLB Covered Bond Bank PLC does not benefit directly from maintenance obligation and statutory guarantee of WestLB's owners or WestLB itself. It should be noted that any of WestLB's, LB State of North Rhine-Westphalia 's, and Westdeutsche Immobilienbank 's obligations incurred after July 18, 2001, and maturing after 2015, are not guaranteed and that Standard & Poor's issue ratings on these obligations would be lower. Ratings on WestLB Covered Bond Bank PLC's obligations incurred after July 18, 2001, and maturing after 2015 would also be lower. "Although the downgrade follows that on State of North Rhine- Westphalia, WestLB's weak earnings and capitalization, severe asset quality problems, and its tarnished reputation as a result of inadequate risk management systems at least in some of WestLB's business units have put additional pressure on the bank in the lead-up to the forthcoming abolition of state guarantees," said Standard & Poor's credit analyst Stefan Best. Although WestLB's strategy and business units are under review following the release of substantial losses and the concomitant turmoil and management reshuffle, Standard & Poor's believes that WestLB's strategic options are limited -- similar to most of its Landesbank peers. At present, a strengthening of ties with the owner savings banks and a stronger focus on corporate banking in its home region, while maintaining a downsized international banking business is being discussed. Stronger cooperation with the savings banks is likely to be required to weather the restructuring process and to develop and implement a sustainable business model for a new competitive environment from 2005 onward, because Standard & Poor's considers its former strategy as a pure wholesale-oriented international investment bank to be very challenging for WestLB. "The negative outlook on the counterparty credit ratings on WestLB, Landesbank Nordrhein-Westfalen, Westdeutsche Immobilienbank, and WestLB Covered Bond Bank PLC reflects Standard & Poor's expectation that future counterparty credit ratings on the bank will be lower than at present as the state guarantees, Anstaltslast and Gew"hrtr"gerhaftung, can only be maintained until July 18, 2005," said Mr. Best. The stable outlook on debt issue ratings maturing until July 18, 2005, reflects the outlook on State of North Rhine-Westphalia, as Anstaltslast and Gewahrtragerhaftung can be maintained until that date. The negative outlook on grandfathered debt obligations reflects Standard & Poor's view, that the agreement between the European Commission and the German federal government does not remove all uncertainties regarding timely payment. Grandfathered obligations include debt obligations issued between July 19, 2001, and July 18, 2005, and maturing between July 19, 2005, and Dec. 31, 2015, as well as obligations issued until July 18, 2001, irrespective of their maturity. Although Standard & Poor's believes that State of North Rhine-Westphalia will not exploit the ambiguities in the wording of the laws, and will make payments in a timely fashion, the commitment of the owners might change over time, which would then lead to moderate ratings changes for such grandfathered debt. Consequently, Standard & Poor's will continue to monitor the guarantor's ability and willingness to honor its obligations under the agreement. WESTLB AG: S&P Ranks Receivables Servicer as Above Average ---------------------------------------------------------- Standard & Poor's Ratings Services said it affirmed its forfaiting receivables servicer rankings on WestLB AG as ABOVE AVERAGE. The outlook is stable. The ranking reflects the bank's level of automation, experienced management, and good internal controls. WestLB is one of Germany's largest public-sector banks and is an industry leader in trading in both primary and secondary forfaiting markets. It has pioneered the introduction of forfaiting receivables collateral into the asset-backed securitization marketplace. The bank's forfaiting administration and trading operations have withstood severe market turbulence in the past with relatively minor losses. Further, the bank's senior management has signaled its continuing support by rejecting the proposed establishment of a subsidiary finance company, and approving further bespoke systems development. Despite recent changes, the organization has the strength and depth to maintain its market-leading position. Standard & Poor's servicer evaluations offer a comprehensive assessment of a company's operational capabilities, providing a means of benchmarking a servicer's performance against its peers, industry standards, and prudent servicing practices. In its analysis, Standard & Poor's considers, among other factors, an organization's background, control environment, staffing, systems, key asset administration functions, financial profile, and compliance with applicable laws, regulations, and industry standards to derive an overall servicer ranking. The full servicer evaluation report titled "Servicer Evaluation: WestLB AG" can be found on RatingsDirect, Standard & Poor's Web- based credit analysis system, at http://www.ratingsdirect.com For more details on Standard & Poor's servicer evaluation product, see "Servicer Evaluations Ranking Criteria", which was published on RatingsDirect on Feb. 3, 2003. For either of these reports, 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. ========= I T A L Y ========= CIRIO FINANZIARIA: Decides to Put Company in Liquidation -------------------------------------------------------- Italian canned goods maker Cirio Finanziaria on Friday decided to appoint liquidators for the company after it failed to convince bondholders to accept a recovery plan put forward by the group's advisors. On Cirio Holding's proposal, the assembly appointed Emanuele Dinnella, Stefano Saponara and Vittorio Silvestri as liquidators, according to Agenzia Giornalistica Italia. Following the decision, the Cirio-Del Monte Italia assembly received Cirio-Del Monte N.V.'s request for commissioning under Law 270 dated 1999. According to the report, the Rome Court will set a date for proceedings and will consort with the Industry Ministry on the appointment of one or more commissioners. The assembly can start commissioning of other companies in the group, which may last as long as 15 months. Cirio was unable to repay ungraded bonds totaling EUR1.1 billion in November, forcing it to seek new financing from creditor banks. The rescue plan it proposed to bondholders last week involved a debt-for-equity swap that could effectively wipe off up to 80% of the value of their bonds. ===================== N E T H E R L A N D S ===================== B2B INTEGRATION: To Sell TIE Commerce as it Reviews Options ----------------------------------------------------------- B2B Integration Software Company TIE Holding N.V. listed on the EuroNext Amsterdam Stock Exchange has decided to sell the activities of TIE Commerce, its subsidiary in the United States. TIE has engaged in discussions with a number of parties interested in acquiring the activities of TIE Commerce. Following the negative EBITDA in the last reported quarter, the adverse performance of the company has meant that the placement of 1.7 million shares with Navigator Investments Holding III Ltd. and Mercury Investments Ltd. as announced on May 5, 2003 was not completed. Navigator has only taken up 182.779 of the shares allocated. The application for the admission to the listing on EuroNext for the remaining 1.5 million shares foreseen in the placement will now be withdrawn. The resultant cash shortfall has meant that the company is investigating strategic alternatives for the future of the Company. Delta Lloyd Bank and Berkshire Investments, are the principle lenders to the Company and hold collateral in TIE Commerce. Negotiations are under way to determine what part of the proceeds of the sale of TIE Commerce will be used to pay back their loans. As announced previously, TIE will publish its third quarter results on August 20, 2003. HEAD N.V.: Conference Call for 2Q Results Set Next Week ------------------------------------------------------- Conference call to discuss the second quarter results for 2003 will be held on Tuesday August 12, 2003 at 15:00 London time Head Chairman and CEO Johan Eliasch will host a conference call on Tuesday August 12, 2003 at 15:00 London time (10:00 New York). He will be joined by Ralf Bernhart, Chief Financial Officer, and Clare Vincent, Head of Investor Relations. They will discuss: Head's second quarter results for 2003. A presentation, which will be discussed during the conference call, will be available on the Investor Relations section of our website, (http://www.head.com)by 10:00 London time on the 12, of August 2003. You can join the conference call using these phone numbers: Country - Phone Number U.K. 0800 953 0810 Europe Phone: +44 (0)1452 560 068 USA Phone: 1866 789 2220 Please note that there will be no audio link on the web site. A transcript of the conference call will be posted to the investor relations section of our website. A Replay Service is also available until August 22, 2003, the dial in numbers are: U.K. 0800 953 1533 Europe Phone: +44 (0) 1452 550 000 USA Phone: 1866 276 1167 or 1866 247 4222 (Back up) Access Code 350358# Head N.V. is a leading global manufacturer and marketer of premium sports equipment. Head N.V.'s ordinary shares are listed on the New York Stock Exchange and the Vienna Stock Exchange. Its business is organized into four divisions: Winter Sports, Racquet Sports, Diving and Licensing. We sell products under the Head (tennis, squash and racquetball racquets, alpine skis and ski boots, snowboards, bindings and boots), Penn (tennis and racquetball balls), Tyrolia (ski bindings), and Mares/Dacor (diving equipment) brands. It holds leading positions in all of our product markets and our products are endorsed by some of the world's top athletes including Andre Agassi, Marat Safin, Gustavo Kuerten, Marco Buechel and Francisco "Pipin" Ferreras. For more information, visit: http://www.head.com ***** Standard & Poor's Ratings Services said this month it revised its outlook on The Netherlands-based sports equipment company Head N.V. to negative from stable, as ongoing weak industry conditions impair profitability and credit protection measures. It also affirmed the company's 'BB-' long-term corporate credit and its 'B' senior unsecured debt ratings. "The outlook revision follows 18 months of weak industry conditions in the sports equipment market, highlighting the discretionary nature of sports equipment spend and a poor outlook for the rest of 2003," said Standard & Poor's credit analyst Olli Rouhiainen. The recent weakness has depressed Head's profitability and credit ratios. CONTACT: HEAD N.V. Clare Vincent, Head of Investor Relations Phone: +44 207 499 7800 Fax: +44 207 491 7725 E-mail: htmcv@aol.com Ralf Bernhart, Chief Financial Officer Phone: +43 1 70 179 354 Fax: +43 1 707 8940 KONINKLIJKE AHOLD: Fights Argentina Seizure of Disco Assets ----------------------------------------------------------- Troubled Dutch retailer Ahold is lodging an appeal to a decision by a court in Argentina to seize the assets of its local retailing unit Disco, online news agency Just-food.com relates, citing a report by Reuters. A creditor at the failed Banco Montevideo, part of Grupo Velox -- Ahold's former partner in Argentina, which the retailer bailed out after it defaulted on debt -- requested the seizure of the assets in early June. According to the report, Ahold spokeswoman Martha van Dijk told Reuters that the group is currently in talks with an Argentine judge. The retailer maintains that the original Uruguayan court did not order the seizure of the assets. It was miscommunication that led the judge in Argentina to "an error." Ms. Dijk said the group expects the ruling to be lifted "within days." "We think this seizure is unjustified," Van Dijk was quoted saying, adding that Ahold did not expect the case to stop its attempts to sell its Argentine unit. CONTACT: KONINKLIJKE AHOLD P.O. Box 3050 1500 HB Zaandam Netherlands Corporate Communications Phone: +31.75.659.5720 Fax: +31 (0)75 659 83 02 Home Page: http://www.ahold.com KONINKLIJKE AHOLD: Completes Sale of Santa Isabel to Cencosud ------------------------------------------------------------- Ahold on Friday announced it has successfully closed the sale of its 99.6% interest in Santa Isabel SA to Chilean retailer Cencosud SA. Ahold and Cencosud completed the transaction based on a total value, excluding any liabilities, of approximately US$150 million for Ahold's operations in Chile, which is equal to the amount announced at the time of the initial discussions with Cencosud. After adjustment of the value for net working capital and external interest-bearing debt, the net proceeds of the transaction for Ahold amount to approximately US$77 million. Cencosud will assume the external interest-bearing debt of US$17.5 million. The transaction is limited to Ahold's supermarket activities in Chile. Its activities in Peru and Paraguay, previously subsidiaries of Santa Isabel, remain with Ahold and will also be divested, as was announced on April 3, 2003. Cencosud has interests in real estate, do-it-yourself stores and hypermarkets in Chile and Argentina. Its wholly-owned subsidiary, Hipermercados Jumbo SA, is the third-largest food retailer in Chile with 7 hypermarkets, 16 do-it-yourself stores and 3 shopping centers. The company also operates 11 hypermarkets, 23 do-it-yourself stores and 11 shopping centers in Argentina. Santa Isabel has been part of Ahold's store portfolio since 1998. At year-end 2002, Santa Isabel operated 77 stores in Chile. Santa Isabel employs approximately 7,000 people in Chile. The divestment of Santa Isabel in Chile, the intention of which was announced on February 5, 2003, is part of Ahold's strategic plan to restructure its portfolio to focus on high-performing businesses and to concentrate on its mature and most stable markets. CONTACT: KONINKLIJKE AHOLD Corporate Communications Phone: +31.75.659.57.20 =========== N O R W A Y =========== PETROLEUM GEO: Files Plan and Disclosure Statement in Delaware -------------------------------------------------------------- Petroleum Geo-Services ASA filed its Chapter 11 Plan Of Reorganization and Disclosure Statement with the U.S. Bankruptcy Court for the Southern District of New York. Full-text copy of the Debtor's Disclosure Statement is available for a fee at: http://www.researcharchives.com/bin/download?id=030731012442 This Disclosure Statement describes how Claims against, and Equity Interests in, the Debtor will be treated under the Plan and the terms of the securities to be issued under the Plan. The Plan provides for the distribution and treatment of 8 classes of claims and equity interests: Class Description Treatment Recovery ----- ----------- --------- -------- 1 Secured Claims Unimpaired; either 100% a) leaves unaltered the legal, equitable, or contractual rights entitled to the Claimholder or b) leaves such Allowed Claims unimpaired pursuant to Section 1124(2) 2 Piority Non-Tax Unimpaired; will receive 100% Claims cash equal to the Claim 3 General Unse- Unimpaired; either 100% cured Claims a) leaves unaltered the legal, equitable, or contractual rights entitled to the holder of the Claim or b) leaves such Allowed Claims unimpaired pursuant to Section 1124(2) 4 Bondholder Impaired; will receive a A: 61% Claims and Bank Pro Rata share - 73% Claims B: 64% 5 Junior Impaired; if Class 5 11% Subordinated votes to accept the Plan; Debentures will receive a Pro Rata Claims Share 6 Securities Law Impaired; will not receive N/A Claims or retain any distribution under the Plan 7 Ordinary Shares Impaired; if holders vote N/A vote to accept the Plan, will receive a pro rata share of the Rights 8 Equity Interests Impaired; will be deemed 0% cancelled and will not receive or retain any distribution under the Plan The Debtor believes that the Plan is fair and equitable in light of the relative rights of its creditors and shareholders and that it represents the best opportunity for the Debtor to emerge from this proceeding. The Plan represents an integrated set of compromises and agreements that are highly beneficial to the Estate and should strengthen the Company's ability to operate effectively post-confirmation. Petroleum Geo-Services ASA, headquartered in Lysaker, Norway is a technology-based service provider that assists oil and gas companies throughout the world. The Company filed for chapter 11 protection on July 29, 2003 (Bankr. S.D.N.Y. Case No. 03-14786). Matthew Allen Feldman, Esq., at Willkie Farr & Gallagher represents the Debtor in its restructuring efforts. As of May 31, 2003, the Debtor listed total assets of $3,686,621,000 and total debts of $2,444,341,000. ===================== S W I T Z E R L A N D ===================== ABB LTD.: Asbestos Settlement Plan Gets District Court's Okay ------------------------------------------------------------- The U.S. District Court Judge Alfred Wolin has approved ABB Ltd.'s US$1.22 billion asbestos settlement plan, the company said, according to Dow Jones. The ruling will cap ABB's total asbestos lawsuits costs at $2.3 billion and will protect its U.S. unit Combustion Engineering from future asbestos litigation. ABB plans to put the unit, which faces around 130,000 lawsuits, under Chapter 11 bankruptcy protection. The positive development is expected to hasten the crucial sale of ABB Ltd.'s non-core oil, gas and petroleum division because the settlement also includes ABB's unit Lummus Global, which is up for sale. The transaction could potentially help the engineering group reduce its US$8.3 billion debt to US$6.5 billion by the end of the year. The district judge's decision comes several weeks after a U.S. bankruptcy court decided to accept ABB's plan. The timing, as well as Judge Wolin's rejection of opposing arguments, makes the chances of plaintiff lawyers seeking to overturn the decision very slim, according to the report. ABB LTD: BB+ Rating Remains Despite Asbestos Settlement Approval ---------------------------------------------------------------- Standard & Poor's Ratings Services said the ratings and outlook on Switzerland-based engineering company ABB Ltd. (BB+/Negative/B) are not immediately affected by the U.S. District Court ruling in favor of the group's proposed asbestos plan. Nevertheless, Standard & Poor's will consider a revision of its outlook to stable once improvements in the group's currently fair liquidity position are achieved. [Fri]day's positive ruling constitutes a sound position from which to execute some of the group's most important operational and financial transactions. Standard & Poor's believes the ruling will allow ABB to make quick progress with the planned disposal of its Oil, Gas, and Petrochemicals division. The ruling will also improve ABB's access to capital markets at more favorable conditions, which should support the group's ability to complement its existing liquidity provisions, improve its debt maturity schedule, and structure other capital market transactions to reduce the group's financial leverage. The good news on this significant progress with the asbestos legal settlement follows better-than-expected second-quarter results, which ABB published earlier this week, despite a difficult trading environment. The group's extensive restructuring program is also showing its first benefits in terms of cost savings. SWISS AIRLINE: Government Leaves Airline to its Own Resources ------------------------------------------------------------- Switzerland's government asked troubled airline Swiss to explore all options for the survival of the company as it rules out further cash injection. Transport ministry spokesperson Hugo Schittenhelm told AFP: "The Federal Council (government) expects that Swiss will examine all scenarios for the future, ranging from co-operation, an alliance, up to a merger." Mr. Schittenhelm said the government's position was a request, not an order. To recall, the Swiss economics minister, Joseph Deiss reiterated in a newspaper interview on Sunday that the airline could not count on further state cash. "What is of primary importance for the Federal Council is that good services are guaranteed. How that is organised, the market must decide," he told Sonntagszeitung. "Personally I am of the opinion that it is not up to the government to support certain branches of industry," he added. The Swiss government, which helped build Swiss from the collapsed airline Swissair, holds the 20.4% in the airline, the largest single stake in the carrier. Swiss announced in June plans to downsize fleet by a third, and slash more than 3,000 jobs after realizing it would not be able to return to profit as planned in 2003. It blamed the continuing economic instability, the SARS crisis and major changes in European air travel caused by increasing influence of low-cost carriers, for its woes. It also now lacked the political support it enjoyed two years ago. Swiss recorded CHF1980 million net loss in 2002. =========================== U N I T E D K I N G D O M =========================== ABERDEEN ASSET: May Pull Out of Negotiations For Property Arm ------------------------------------------------------------- Negotiations on the sale of Aberdeen Asset Management PLC's property arm to British Land PLC are reportedly on the verge of collapse, as the below GBP45 million currently being offered is deemed too low by Aberdeen's management. Online news agency The Telegraph said Aberdeen chief executive Martin Gilbert is believed dismayed by British Land's low offer. Aberdeen put Aberdeen Property Investors, which has GBP6.5 billion of property under management, up for sale last November. Back then, the company hoped to raise GBP125 million through a sale or flotation. The disposal was part of a plan to reduce Aberdeen's debt, which then stood at GBP250 million. Aberdeen, meanwhile, has renegotiated its debt and has cut its debt to GBP70 million of bank loans and GBP100 million of convertible loan notes. With the price coming down below GBP45 million, the company is poised to pull out of negotiations as Aberdeen is not prepared to sell the business "at any price," according to company insiders. This is despite the fact that earlier talks already went as far as discussing remunerations for top managers at Aberdeen Property Investors. Some of Aberdeen's clients are also believed not in favor of off- loading the property arm as it would endanger its independence. ASTON VILLA: Dismisses Rumors of Buyout Amidst Difficulties ----------------------------------------------------------- Sports club Aston Villa tackles speculations of buyout as it reported widening losses of GBP12 million in a tough season. The chairman of the club dismissed takeover rumors that emerged last month involving an approach from Venezuelan millionaire Gustavo Cisneros, as mere speculations. Doug Ellis said: "These calls were speculative in nature and no further details have become available." In its preliminary results for the year ended May 31, 2003, the team reported disappointing results, including finishing on the 16th place in the Premiership, and failing to build a run in the FA Cup, and losing its manager Graham Taylor. "Aston Villa continues to operate within its resources and this has made the challenge of competing regularly for honors, but remaining financially stable extremely difficult," the chairman said. The company also said that as a result of the losses for 2003 and the continuing difficulties for next year, the Board have decided not to recommend a dividend. While admitting his disappointment in the playing performance of the first team last season, Mr. Ellis assured the management continues to improve the infrastructure at the club. He also promised to improve results substantially, "on and off the pitch." It boasts of continued growth in conference, banqueting and catering income, as well as other commercial areas "not related to playing matters". It even has plans of developing the Aston Villa Leisure Center. To View Report and Financials: http://bankrupt.com/misc/ASTON_VILLA.htm Contact: Mark Ansell, Deputy Chief Executive Aston Villa PLC Phone: 0207 466 5000 (today) Mark Edwards/Suzanne Brocks Buchanan Communications Phone: 0207 466 5000 BAE SYSTEMS: Orders for Latest Hawk Aircraft Saves 470 Jobs ----------------------------------------------------------- The U.K. MoD has selected the latest generation of Hawk aircraft, the Hawk Mk 128 as its new Advanced Jet trainer for the 21st century. 20 Hawk Mk 128 aircraft will be ordered, with an option for up to a further 24, going into service from 2008 as replacements for some of the current Hawk TMK1s at RAF Valley. Hawk and Brough Managing Director Mark Parkinson said, "This excellent news keeps the Hawk at the leading edge of fast jet training technology and reinforces its position as the world's most successful advanced jet trainer. We will now work hard to deliver to the MoD an aircraft that will meet all their requirements and represents value for money for the taxpayer. This decision ensures that the redundancy notice for 470 posts at BAE SYSTEMS Brough will not be exercised. We are very grateful to our employees at Brough, the trade unions and our local MPs for their support." The Hawk 128 is the next generation of trainer aircraft and will be used to train future fighter pilots that will fly the Eurofighter Typhoon and the Joint Strike Fighter. The Hawk 128 is a new development from the successful Hawk family of aircraft, designed around a fully digital cockpit, open architecture computers and airborne simulation systems. BAE SYSTEMS Chief Executive Mike Turner said "We recognize that this has been an important and difficult decision for the Government in the context of spending priorities. The U.K. commitment to Hawk will directly secure 2,200 jobs across BAE SYSTEMS at Brough and 70 companies within the supplier base, reflects the intent of the Government's Defense Industrial Policy issued under the authority of the Secretary of State for Defense and the Secretary of State for Trade and Industry in October 2002, and will therefore be widely welcomed by the U.K. defense industry. We are delighted by this decision - especially for our employees at Brough who will be producing the best advanced jet trainer in the world." CORUS GROUP: Secures New EUR1.2 Billion Banking Facility -------------------------------------------------------- Corus Group plc is pleased to announce that it has signed a new EUR1.2 billion banking facility on Friday, to replace the existing facility that was due to expire at the end of January 2004. The new amortizing syndicated facility has a final maturity date of June 30, 2006, and provides committed bank financing for Corus' working capital requirements. In addition, Corus is continuing to progress a range of options with respect to the funding of the Group's proposed U.K. restructuring measures, as set out at the time of Corus' AGM on April 29. Trading Corus progressively achieved a more consistent manufacturing performance across the Group during the first half of 2003, including the successful resumption of two blast furnace operations at Port Talbot in January, which has brought greater stability to the U.K. businesses. In EU markets generally, despite subdued levels of steel demand, improvements in average selling prices were secured. Against this background, the Group's operating result before exceptional items for the first half of 2003 is anticipated to be around GBP100 million better than in the second half of 2002, when a loss of GBP141 million was incurred. Net borrowings at the end of the half-year have increased to around GBP1.55 billion, principally due to higher working capital requirements reflecting improved selling prices and increased output levels. The Group's interim results are scheduled to be released on September 24, 2003. Outlook During the second half of 2003 the Group expects to continue to benefit from the improvements being made in its manufacturing performance, particularly in the U.K., as well as from the strengthening of the Euro against Sterling, as currency exposure hedging of up to six months unwinds. Nevertheless, conditions in EU markets remain both challenging and uncertain. In addition Corus' results for the second half of the year will include the normal seasonal impact of planned Summer and Christmas maintenance periods. ***** As indicated above, the new revolving multi-currency syndicated facility is a working capital facility. Under the terms of this facility, Corus has successfully agreed with its banks considerable flexibility as to the raising of additional funding to fully implement the U.K. restructuring program. The principal terms of the new syndicated facility, which is normal for a facility of this type, include: *Committed funding of EUR1.2 billion until the end of January 2004, reducing to EUR1.0 billion until the end of June 2005; then EUR0.8 billion until the end of December 2005; and, EUR0.6 billion until the end of June 2006. *Fixed security over shares in Corus U.K. Limited, and over shares in Corus Nederland BV. A floating charge over the assets of Corus Group plc and Corus UK Limited. The charge over Corus U.K. Limited is subject to a cap of 20% of tangible assets, consistent with the terms of the GBP150 million 2016 debenture stock. Covenants: *Group EBITDA/net interest cover shall not be less than: 2 times until the end of December 2003; 2.5 times until the end of June 2004; 3 times until the end of December 2004; 3.5 times until the end of December 2005; and, 4 times until the end of June 2006. *Group net tangible worth shall not be less than GBP2.5 billion (after allowing for impairment/restructuring costs). *Dividends of up to 30% of net distributable earnings from ordinary activities are permitted, subject to a Group EBITDA/net interest cover of at least 7 times. * Group gearing (net debt/net tangible worth, after allowing for impairment/restructuring costs) shall not exceed: 75% until the end of June 2004; 65% until the end of June 2005; and, 60% until the end of June 2006. * Corus Nederland net tangible worth shall not be less than EUR2 billion, and Corus Nederland cumulative EBITDA shall not be below EUR150 million for the six months to the end of December 2003, plus EUR75 million for each quarter thereafter. Taking account of the new facility, together with the Group's existing bonds and debentures, total committed borrowing facilities available to the Group now amount to around GBP1.9 billion. CONTACTS: CORUS GROUP Investor Relations Phone: (44) (20) 7717 4503/4504 Corporate Relations Phone: (44) (20) 7717 4502/4505 GOLDFISH: Centrica Sells Interest in Loss-making Business --------------------------------------------------------- Centrica plc announced that Goldfish Bank Ltd. has reached agreement to sell to Lloyds TSB for cash the Goldfish credit card, personal loan business and associated business assets for a premium of GBP112.5 million or around 14% of net credit card receivables as at June 30, 2003. The transaction also includes the Goldfish brand and loyalty program. Centrica and Lloyds TSB have economic interests of 70% and 30% respectively in Goldfish Bank. The consideration will ultimately be distributed on a pro rata basis to Centrica and Lloyds TSB following an orderly closure of the bank's activities. In addition, Goldfish Bank will receive from Lloyds TSB an amount equal to the net book value of the finance receivables as at completion of around GBP900 million, such monies to be applied in repayment of Goldfish Bank's customer deposits and bank loans. Centrica believes this agreement will deliver the best long-term value for its shareholders. Goldfish remains a sub-scale business operating in an increasingly competitive market and a tight regulatory climate. A sale to Lloyds TSB avoids very significant costs in migrating customers from Goldfish which would have been incurred under a sale to a third party. The Goldfish credit card and its associated loyalty scheme were originally developed as a customer retention initiative within the group's energy supply business. Since then, Centrica has retained its position as the U.K.'s leading household gas supplier and transformed itself into the leading domestic electricity supplier, with an overall household energy market share of around 41%. Goldfish credit card holders will continue to be able to redeem their loyalty points against British Gas bills. Sir Roy Gardner, Chief Executive of Centrica, said: "Centrica has a rigorous approach to managing its businesses for value. Goldfish has developed into a very strong brand but we believe that the capital investment required to achieve the necessary scale would be better directed towards our core businesses." The transaction is expected to complete in the fourth quarter of 2003. ***** As at June 30, 2003, Goldfish's net finance receivables (credit card and personal loans) had a net book value of around GBP900 million. The credit card portfolio comprised approximately 1.18 million card holders and the Goldfish personal loans book comprised over 11,000 accounts as at 30 June 2003, while the Goldfish retail savings book had over 17,000 accounts. During the six months to June 30, 2003, Goldfish Bank made an operating loss of GBP30 million. Centrica estimates a net loss on disposal as at completion of approximately GBP45 million, net of tax and minority interests after the write-off of goodwill and the estimated costs of disposal. The disposal will be shown as an exceptional item in the second half of 2003. The Goldfish Bank joint venture structure will remain in place at least until it has fulfilled all its obligations in accordance with banking regulations. Centrica will apply such monies then received to reducing group net debt. Following completion, Goldfish Bank will outsource the management of its savings account to Lloyds TSB for a transitional period and will continue to honour its commitment to savers under its "Price Promise" to track base rates. CONTACT: CENTRICA Investor relations Phone: 01753 494900 CORDIANT COMMUNICATIONS: WPP Group Completes Acquisition -------------------------------------------------------- WPP announces that the scheme of arrangement, under section 425 of the Companies Act 1985, effecting the acquisition of Cordiant became effective August 1, 2003. Application has been made to the U.K. Listing Authority for the admission of 2,041,526 new ordinary shares of 10 pence each in WPP to the Official List and to the London Stock Exchange for these shares to be admitted to trading. The application has been made in respect of shares to be issued as consideration for the acquisition of Cordiant. These new ordinary shares will rank pari passu in all respects with the current issued ordinary shares of WPP including the right to receive and retain in full all dividends or other distributions (if any) declared, made or paid hereafter. The new ordinary shares of WPP will be admitted to the Official List, and dealings in the shares on the London Stock Exchange will commence, at 8 a.m. August 1, 2003. CONTACT: WPP GROUP Phone: 020 7408 2204 Paul Richardson Chris Sweetland Feona McEwan BUCHANAN COMMUNICATIONS Phone: 020 7466 5000 Richard Oldworth Mark Edwards J SAINSBURY: Market Share in Region Now Falls Behind Asda's ----------------------------------------------------------- J Sainsbury is no longer the country's second largest supermarket group, a data from TNS, which tracks consumer spending at Britain's supermarkets, show. Wal-Mart's Asda took the position after gaining a current market share of 17% during the four weeks ending July 20, compared with Sainsbury's 16.2%. For the same time last year, Asda had 16.15 while Sainsbury had 17.1%. According to The Telegraph, Edward Garner of TNS said: "Our data has been showing a consistent growth from Asda over the last ten years, with decline from Sainsbury's over the last six years. This is a considerable shake-up at the top of the British supermarket rankings." Tesco currently occupies the number position after it overtook Sainsbury in 1996. It currently has a market share of more than 27%. Sainsbury, though, remained U.K.'s second-largest grocer with 15.5% of the grocery market, compared to Asda's 13%, a Sainsbury spokeswoman said, according to the report. The report adds pressure to Sir Peter Davis, Sainsbury's chief executive, who is overseeing the company's three-year restructuring plan. The company's worse than expected first quarter trading has shown his management has not achieved considerable progress. Sainsbury's same-store sales excluding petrol was "slightly negative" in the 12 weeks to June 21. Sir Peter himself admitted he was "dissatisfied" with the company's sales performance. HENLYS GROUP: Expects Profits Downfall; Finance Director to Quit ---------------------------------------------------------------- Henlys Group warned on annual profits for the second time in the past two months as it announced the early retirement of its finance director. The bus and coach manufacturer expects underlying profits to fall to about GBP2 million in the year to September 30, and exceptional charge relating to the restructuring of the Blue Bird plant in North Georgia to exceed expectations by GBP3 million to GBP13 million. Allan Welsh, chief executive said: "The capacity constraint at the North Georgia factory is more serious than we thought." The company warned that production problems at the Blue Bird plant will keep it from meeting high demand for buses in the remainder of the year. The facility is plagued with delivery delays and internal quality failures. According to the Financial Times, Tony Lancelot, an analyst at Arbuthnot Securities foresees a possible bid. He said: "There is a strongly increased chance this [the fall in profit] will be the catalyst for a bid from AM Volvo, which owns a 29% effective blocking stake in the group." Together with its trading update, the company also announced the early resignation of Finance Director Mr. B A C Chivers. He is expected to step down "as soon as a suitable replacement" is found, which is expected before the end of this calendar year. MYTRAVEL PLC: Agrees in Principle to Extend Convertible Bonds ------------------------------------------------------------- MyTravel Group plc announces that it has reached agreement in principle on the extension of GBP221.6 million of Convertible Bonds (being the outstanding amount of the MyTravel Group plc GBP300 million 5.75% subordinated convertible bonds due 2004 - the 'Bonds') with an ad hoc committee of holders of the Bonds. The ad hoc committee of holders of the Bonds has agreed in principle to: (a) The extension of the maturity of the Bonds by three years to January 2007. (b) The issue to Bondholders of shares and warrants to subscribe up to 128.6 million ordinary shares (representing approximately 26% of the existing issued share capital and approximately 21% of the enlarged issued share capital) in return for conversion of the same nominal amount of Bonds (i.e., converting 10p nominal of Bonds into one new ordinary share). (c) An increase in the rate of interest payable on the Bonds from 5.75% per annum to 7.0% per annum. (d) A 'success fee' broadly equivalent to the success fee payable to the banks and other creditors (the 'Override Banks') which are party to the Override Agreement announced by the company on June 6, 2003. This would be based on a percentage of the increase in the market capitalization of the company (above GBP40 million) at the date the Bonds are redeemed or refinanced. The maximum percentage would be 2.5%, capped at GBP11 million. (e) Certain other improvements in the non-financial terms of the Bonds. The terms of the proposal need to be formally put to Bondholders for their approval at a Bondholders meeting, and need to be agreed by the Override Banks. MyTravel Group plc has revised its expectations for its financial results for the current year. At the time of our interim results on June 6, we indicated that we expected that the summer performance would be better than last year, although we did not expect to recover the operating losses suffered in the first half year. The Board now believes that operating profit for the second half will be similar to the result for the second half last year. This change in expectations arises principally because the margins achieved during the summer are lower than had been expected. This results from pricing decisions made last year in the U.K., cost controls in the U.K. airline and difficult market conditions in Scandinavia and North America. Actions have been taken in the U.K. to ensure pricing and cost control actions going forward are more robust. The Board believes the turnaround can be achieved although the Group still faces significant challenges which will take time to overcome. The Board continues to be confident about its ability to deliver the cost savings it has identified having already achieved its targets for 2003. In the medium term the Group's earnings and cash flows will remain subject to significant risk through its high fixed cost structure and high levels of indebtedness and the Group will have to continue to manage its resources carefully. The Group is implementing necessary measures designed to ensure that it will be able to meet its obligations. In addition to the cost savings described in the interim results announcement the Board will focus on managing its working capital, and is pursuing opportunities to make disposals of businesses where it believes acceptable prices can be achieved. The company has identified a number of businesses, which could be attractive to purchasers, including a number of stand-alone US businesses. CONTACT: BRUNSWICK Phone: 0207 404 5959 Sophie Fitton Craig Breheny ROYAL MAIL: Faces Possible Workers' Strike Over Pay --------------------------------------------------- A threat of a first national strike is threatening to hit Royal Mail the nationwide postal service operated by holding company Consignia. According to The Scotsman, about 160,000 members of the Communication Workers' Union are due to be balloted on industrial action in a dispute over pay this year. The union accused Royal Mail of being "disingenuous" by claiming the offer was worth 14.5% over 18 months, when the only definite money on offer was 3% from October and a further 1.5% next April. The union also described the wage as having more "strings" than the Royal Philharmonic Orchestra. Royal Mail recently reported to Postcomm, the industry regulator, it lost GBP197 million at operating level. CONTACT: ROYAL MAIL GROUP PLC 148 Old Street LONDON EC1V 9HQ Home Page: http://www.royalmail.com/group SOMERFIELD PLC: Acquisition by Sainsbury Open for Questions ----------------------------------------------------------- The Trade and Industry Secretary, Patricia Hewitt, has asked the Competition Commission to look into the proposed acquisition by J Sainsbury plc of 171 Somerfield Stores from the "Springwater" Bidding Group. The Commission has been asked to consider whether the proposed merger may be expected to operate against the public interest. The Commission has been asked to report to the Secretary of State for Trade and Industry by November 28, 2003. The report will be published at a later date. The Commission would like to hear from all interested parties, in writing, by 21st August 2003. To submit evidence, please write to: The Inquiry Secretary (Sainsbury/Springwater) Competition Commission New Court 48 Carey Street LONDON WC2A 2JT Or e-mail clare.gallimore@competition-commission.gsi.gov.uk Paul Geroski, one of Deputy Chairmen of the Commission, will chair the Group conducting the inquiry. The other members will be appointed soon. Their details will be announced on the website http://www.competition-commission.org.ukshortly. ***** The Fair Trading Act 1973 empowers the Secretary of State to refer to the Competition Commission actual or proposed mergers which create or increase a market share of 25% of the supply of particular goods or services in the U.K. or a substantial part of the U.K., or involve the transfer of assets exceeding GBP70 million. The reference concerning the proposed merger was made on July 30, 2003. (See DTI Press Notice ref: P/2003/424) Further information can be obtained from the Commission's website at: http://www.competition-commission.org.uk Enquiries should be directed to Francis Royle, Press Officer, Phone: 0207 271 0242 * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------ -------- AUSTRIA ------- Libro AG (111) 174 (182) BELGIUM ------- Real Software REAL (35) 244 (1) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (2,186) DENMARK ------- Elite Shipping (28) 101 19 FRANCE ------ Banque Nationale de Paris Guyane (41) 352 N.A BSN Glasspack (102) 1,151 179 Bull SA BULP (39) 1,512 (17) Compagnie des Machines Bull (6) 231 (3) Compagnie Francaise de l'Afrique Occidentale (66) 256 21 Cofidur SA (5) 102 19 Dollfus-Mieg & Co. DOLP 0 187 28 European Computer System (110) 682 377 Financiere St. Fiacre (1) 111 33 Grande Paroisse SA (845) 383 107 Immobiliere Hoteliere HOIN (66) 185 (54) Pneumatiques Kleber SA (34) 480 139 Sa des Usines Chausson (23) 249 35 SDR Picardie (135) 413 N.A. Soderag (3) 404 N.A. Sofal SA (305) 6,619 N.A. Spie-Batignolles (16) 5,281 75 St Fiacre (FIN) (1) 111 (33) Trouvay Cauvin TRCN 0 134 10 Usines Chauson (23) 249 35 GERMANY ------- Dortmunder Actien-Brauerei DABG (13) 118 (29) Edel Music AG EDLG (66) 353 (159) Eurobike AG EUBG (32) 158 (31) F.A. Guenther & Sohn AG GUSG (8) 111 N.A. Kaufring AG KAUG (19) 151 (51) Nordsee AG (8) 195 (31) Schaltbau AG SLTG (16) 163 20 Vereinigter Baubeschlag-Handel Holding AG VBHG (24) 306 (63) ITALY ----- Binda SpA BND (11) 129 (20) CIRIO FINANZIARI CBDI (422) 1,583 (396) Credito Fondiario e Industriale SpA CRF (200) 4,218 N.A. NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 NORWAY ------ Pan Fish ASA PAN (117) 806 259 Petroleum-Geo Services PGO (32) 2,963 5,250 POLAND ------ Animex SA (1) 108 (86) Exbud Skanska SA EXBUF (9) 315 (330) SPAIN ----- Altos Hornos de Vizcaya SA (116) 1,283 (278) Santana Motor SA (46) 223 41 Tableros de Fibras SA TFI (43) (2,107) 116 SWITZERLAND ----------- Kaba Holding AG KABZN (64) 515 252 UNITED KINGDOM -------------- Abbot Mead Vickers (2) 168 (16) Alldays Plc ALD (120) 252 (202) Amey Plc AMY (49) 932 (47) Bonded Coach Holiday Group Plc (6) 188 (44) Blenheim Group (153) 198 (34) Booker Plc BKRUY (60) 1,298 (8) Bradstock Group BDK (2) 269 5 Brent Walker Group (1,774) 867 (1,157) BRITISH ENERGY BGY (5,342) 3438 229 British Nuclear Fuels Plc (2,627) 36,359 1,948 British Sky Broadcasting BSY (459) 3,364 (40) Compass Group CPG (668) 2,972 (298) Costain Group COST (34) 329 (12) Dawson Holdings DWSN (32) 135 (25) Easynet Group Plc ESY (12) 332 53 Electrical and Music EMI Industries Group (885) 3,053 (435) Euromoney Institutional ERM (119) 173 20 Gallaher Group GLH (543) 5,527 68 Gartland Whalley (11) 145 (8) Global Green Tech Group (156) 408 (18) Heath Lambert Fenchurch Group PLC (10) 4,109 (10) HMV Group PLC HMV (606) 664 (133) Imperial Tobacco Group ITY (117) 10,083 (190) Intertek Testing Services ITRK (134) 425 (67) IPC Media Ltd. (685) 254 16 Lambert Fenchurch Group (1) 1,827 (3) Lattice Group (1,290) 12,410 (1,228) Misys PLC MSY (86) 961 (7) Orange PLC ORNGF (594) 2,902 7 Regus PLC RGU (46) 367 (60) Rentokil Initial Plc RTO (1,130) 2,809 (37) Saatchi & Saatchi SSI (119) 705 (41) Seton Healthcare (11) 157 (0) Yell Group PLC (196) 3,964 289 Each Tuesday edition of the TCR-Europe contains a list of companies with insolvent balance sheets based on the latest publicly available balance sheet available to our editors at the time of publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* 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 * * *