/raid1/www/Hosts/bankrupt/TCREUR_Public/030916.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, September 16, 2003, Vol. 4, No. 183


                            Headlines


F R A N C E

AGZ FINANCE: Long-term Senior Unsecured Debt Rating Raised to B+
LEGRAND SA: Fitch Affirms 'BB-' Rating on EUR600 Million Notes
VIVENDI UNIVERSAL: Regulator Issues 'Notice of Grievance'


G E R M A N Y

DEUTSCHE TELEKOM: Inks Deal with Elektrim, Vivendi on PTC Offer
GERLING LIFE: VHV to Take Over Gerling Life Reinsurance


I T A L Y

ALITALIA SPA: Chairman Open to KLM, Air France Tie-up


N E T H E R L A N D S

KAPPA BEHEER: Outlook Revised to Stable; Ratings Affirmed
KONINKLIJKE AHOLD: Chairman Leaving Firm, Sources Say
ROYAL PHILIPS: Reports Progress in Semiconductor Division


P O L A N D

ELEKTROWNIA TUROW: Fitch Cuts Rating to 'B-' from 'BB'
KREDYT BANK: HSBC Cleared to Buy Polski Kredyt Bank
LOT AIRLINES: FAA Rating Change Won't Affect Flight Schedules


S W E D E N

SAS GROUP: Members Lower Prices by 20% to Improve Flexibility
SCANDINAVIAN AIRLINES: Acquires 49 Percent of Estonian Air


S W I T Z E R L A N D

ABB LTD.: Sale of Oil, Gas and Petrochemicals Unit Imminent
MOUNT10 HOLDING: Execs to Control Consulting Unit After Spinoff


U N I T E D   K I N G D O M

ALLDAYS PLC: Receivers Sell Stores to Co-operative Group
BAE SYSTEMS: Denies Using Govt Money to Seal Saudi Contracts
CABLE & WIRELESS: Shortlist of Bidders for U.S. Unit Out Soon
EMI GROUP: Standard & Poor's Changes Outlook to Negative
KINGSTON COMMUNICATIONS: Plans to Cancel CEO's Separation Pay

NETWORK RAIL: Freight Operators Call for Cost-cutting
ROYAL & SUNALLIANCE: In Exclusive Talks with Cendant
ROYAL & SUNALLIANCE: Posts Documents Related to Rights Issue
SILENTNIGHT HOLDINGS: Difficult Trading Condition Hits Results
SILENTNIGHT HOLDINGS: Soundersleep Offers GBP72.2 Mln in Cash

SILENTNIGHT HOLDINGS: Finance Chief to Become Non-exec Director
SILENTNIGHT HOLDINGS: Yorkshire Bank Backs Soundersleep's Bid
SILENTNIGHT HOLDINGS: Retirement Scheme Has GBP27.1 Mln Hole
SSL INTERNATIONAL: Eric Anstee Leaves Board
TELEWEST COMMUNICATIONS: Could Announce Debt Restructuring Soon

TRINITY MIRROR: Investor Encouraged by CEO's Turnaround Scheme
WESTPOINT STEVENS: Peddles 22 European Dept. Store Concessions
YORKSHIRE GROUP: Exits U.S. Specialty Chemicals Business

* Large Companies with Insolvent Balance Sheets


                            *********


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F R A N C E
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AGZ FINANCE: Long-term Senior Unsecured Debt Rating Raised to B+
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit rating on AGZ
Holding, the second-largest liquid petroleum gas distributor in France, to
'BB' from 'BB-', reflecting the company's healthy operating performance and
improving financial structure.  The outlook is stable.

At the same time, Standard & Poor's also revised its long-term senior
unsecured debt rating to 'B+' from 'B' on the EUR165 million senior
unsecured notes issued by AGZ Finance, a wholly owned finance subsidiary of
AGZ Holding, maturing in 2011 and fully guaranteed by AGZ Holding.

"The rating actions signal the strong resilience of AGZ Holding's operating
earnings in a high crude price environment, continued significant free cash
flow generation, and deleveraging of its financial structure," said Standard
& Poor's credit analyst Eric Tanguy."  Also taken into consideration are the
company's strong market positions in a stable industry with limited growth
and competition."

AGZ Holding holds a 23% share of the French liquefied petroleum gas
distribution market, a stable sector with limited competition, some barriers
to entry, and a loyal customer base because of cash deposit arrangements.
Structured as an LBO, the company continues to be highly leveraged, with 83%
gross debt to capital as of March 2003 (86% a year before).  Cash flow
generation is, however, adequate for the current 'BB' rating, with funds
from operations (FFO) representing 18% of total debt and EBITDA gross
interest coverage of 3.6x at year-end 2003.

Thanks to cost saving initiatives, better management of logistics, and tight
control over working capital, Standard & Poor's expects AGZ Holding to
generate some EUR70 million of operating cash flow every year.  "The company
should maintain capital expenditures below EUR40 million annually and
generate discretionary cash flow -- after dividends, if any -- in excess of
EUR30 million every year, so as to adequately cover scheduled debt
amortization under the senior secured banking facilities," added Mr. Tanguy.

The stable outlook reflects Standard & Poor's expectation that AGZ Holding
will continue to maintain resilient and healthy operating margins and cash
flow, even in times of LPG price pressures or unfavorable weather
conditions.  The outlook also assumes that the company will continue to
generate positive discretionary free cash flow and gradually deleverage its
balance sheet, and that management will remain committed to maintaining
credit quality.


LEGRAND SA: Fitch Affirms 'BB-' Rating on EUR600 Million Notes
--------------------------------------------------------------
Fitch Ratings, the international rating agency, affirmed the ratings of
Legrand SA's 10-year EUR600 million equivalent Senior Unsecured notes at
'BB-' (BB minus), and EUR2,083 million senior secured facilities at 'BBB-'
(BBB minus).  The Outlook for the ratings remains Stable.

The three-notch differential between the 'BB-' (BB minus) rating assigned to
the notes and the 'BBB-' (BBB minus) rating assigned to the senior secured
facilities reflects the agency's view of the significant difference in the
potential recovery prospects between the two classes of debt in the event of
any future forced restructuring or distress scenario.  As pointed out in our
press release of February 6, 2003, the rating of the notes reflects their
structural subordination to both the senior secured lenders and to the other
classes of creditor at the FIMAF, Legrand SA and operating subsidiary
levels.  Given the weak position of noteholders and their uncertain
treatment in a restructuring or distress situation, Fitch believes that
potential recoveries for the noteholders would be likely to be severely
restricted.  A more detailed rating rationale and a full analysis of the
company are provided in the agency's full report, which was published
Friday.

Legrand is a leading worldwide manufacturer of low-voltage electrical
fittings and accessories.  For the full year to December 31, 2002, the
company achieved sales and EBITDA of EUR2,970 million and EUR612 million
respectively, compared to sales and EBITDA of EUR3,096 million and EUR625
million in 2001.  The results for the half-year ended June 30, 2003 show an
8.8% decline in revenues year-on-year, mainly due to adverse exchange rate
movement.  The shortfall in revenues is in line with other European
manufacturers, such as Schneider, a competitor and former owner of Legrand.
However, on a like-for-like basis, Legrand was able to increase its EBITDA
margin to 20.6% (19.4% 1H02), which is considered a positive development in
the current economic climate.


VIVENDI UNIVERSAL: Regulator Issues 'Notice of Grievance'
---------------------------------------------------------
In line with usual procedures, Vivendi Universal (Paris Bourse: EX FP;
NYSE:V) has received notice of grievance from France's Commission des
Operations de Bourse.  The notice, which invites the company to make
comments within 3 months, is being examined by Vivendi Universal and its
advisors.

Vivendi Universal underlines that it intends to continue to cooperate fully
with the COB's investigations into the company's financial information on
fiscal years 2000, 2001 and 2002.

                              * * *

According to the Guardian, COB could censure Vivendi after the comment
period ends in December.  The regulator issued the notice of grievance after
its inquiry found out that the company's financial disclosures for 2000-02
were not "exact, precise and sincere."

CONTACT:  VIVENDI UNIVERSAL
          Paris
          Antoine Lefort
          Phone: +33 (1).71.71.1180
          Agnes Vetillart
          Phone: +33 (1).71.71.3082
          Alain Delrieu
          Phone: +33 (1).71.71.1086


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G E R M A N Y
=============


DEUTSCHE TELEKOM: Inks Deal with Elektrim, Vivendi on PTC Offer
---------------------------------------------------------------
Deutsche Telekom, Vivendi Universal, Elektrim (in agreement with the
bondholder's representative on the Management Board) and Ymer Finance
reached an agreement in principle on Deutsche Telekom's offer to increase
its shareholding in Telefonya Cyfrowa Sp.zo.o (PTC) from 49% to 100% for a
revised total cash offer of EUR1.1 billion.

All the parties have agreed to make their best efforts, in good faith, to
reach a definitive agreement not later than September
19, 2003. The purchase price will be allocated among the shareholders of
Elektrim Telekomunikacja as: Vivendi Universal EUR691 million, Elektrim
EUR400 million and EUR9 million for Ymer.

Payment of the proceeds by Deutsche Telekom will be made upon closing which
should occur during the first week of January 2004.

Raising its stake in PTC to 100% means Deutsche Telekom will be able to
fully consolidate PTC from 2004.  The Polish mobile network operator is
profitable both before and after taxes.  In 2002, with revenue of around
EUR1.3 billion, PTC achieved EBITDA of EUR535 million and generated profit
after taxes of around EUR90 million.  The increase of the holding to 100%
will further improve Deutsche Telekom's Group EBITDA.  It will not be
earnings dilutive.  Deutsche Telekom's debt reduction targets remain
unchanged.


GERLING LIFE: VHV to Take Over Gerling Life Reinsurance
-------------------------------------------------------
VHV Vermogensanlage AG, a subsidiary of VHV Vereinigte Hannoversche
Versicherung a.G., Hanover, is set to take over Gerling Life Reinsurance
GmbH in trust from Gerling-Konzern Globale Ruckversicherungs-AG.  The boards
of the two companies have given their consent.  Germany's Federal Financial
Supervisory Authority has raised no objections to the transaction, but the
transfer is subject to the approval of foreign supervisory bodies and the
cartel authorities.

In October Gerling Life Reinsurance is to be renamed "Revios
Ruckversicherung," and a conversion into a senior limited liability company
under German law is planned before the end of this year.

The transfer will secure the continuation of Gerling-Konzern Globale's
profitable life reinsurance under Revios.  The transaction enables Revios to
operate as a financially strong and attractive partner for primary life
insurers independent from the future developments at Gerling-Konzern
Globale.  As a trustee, VHV Vermogensanlage AG will receive a trust fee and
will assume no commercial risk in Revios' business.

VHV Vermogensanlage AG and Gerling-Konzern Globale intend at an opportune
time to offer shares in Revios through either a private or public placement.

As of December 31, 2002, capital and surplus of the Gerling Life Reinsurance
(Revios) totaled EUR441.8 million; the current capitalization amounts to
EUR530.8 million.  Capitalization is expected to reach EUR579.0 million by
year's end 2003.  In 2002, the consolidated premium volume of Revios and its
subsidiaries on an IAS basis was over EUR1.4 billion, and income after tax
on an IAS basis was EUR43.1 million.

In view of its financial strength and its successful business model, the
company anticipates favorable ratings from two internationally respected
rating agencies.

Revios is engaged in life reinsurance business in all of the world's
important insurance markets.  Core areas are Continental Europe, the United
Kingdom/Ireland and North America.  Revios is also well positioned in the
emerging markets of Asia and Latin America.  In Life business, Revios is one
of the world's ten largest reinsurers.

Revios is ensuring continuity of management and staff.  Mr. Uwe Eymer will
continue at the helm together with Dr. Norbert Pyhel, Dr. Klaus Miller and
Dr. Michael Kastenholz.  The international executive management teams are
unchanged, together with their life reinsurance specialists whose ranks will
be augmented to support Reviosī future growth.

VHV Vermogensanlage AG is a subsidiary of VHV Vereinigte Hannoversche
Versicherung a.G.), Hanover.  VHV is active in the motor, property,
liability and accident lines and also specializes in the construction
industry.  With approval of its assembly of policyholders VHV recently
merged with Hannoversche Lebensversicherung a.G.  At year's end 2002, total
premium income, including Hannoversche Leben, was EUR2.0 billion.


=========
I T A L Y
=========


ALITALIA SPA: Chairman Open to KLM, Air France Tie-up
-----------------------------------------------------
Alitalia SpA is favorable to a tie-up with Groupe Air France and KLM Royal
Dutch Airlines NV, AFX News reported, citing Alitalia Chairman Giuseppe
Bonomi.  KLM and Air France are believed to be closed to agreeing to an
alliance.

Mr. Bonomi was quoted during a press conference saying: "We are favorable to
the idea of a corporate integration with Air France and why not KLM."

The Italian state-controlled airline also wants closer ties with Air France,
said Mr. Bonomi, who bared on Friday a burgeoning first-half losses.
Alitalia announced a EUR315 million net loss for the first half, compared
with a net loss of EUR49 million a year earlier, and an operating loss of
EUR266 million, compared with a EUR62.8 million loss.

Chief Executive Francesco Mengozzi added at the conference that the company
is overstaffed but the matter is still under study.
Press reports have said the airline will cut about 2,000 jobs.

Meanwhile, Mr. Bonomi said the company is ready to sue low-cost airlines
that benefit from financial aid from local governments and privileges from
airport companies.  He said some airports offer low-cost airlines free
luggage handling services and rebates on airport fees, and that it is time
to "legally challenge" these airlines.


=====================
N E T H E R L A N D S
=====================


KAPPA BEHEER: Outlook Revised to Stable; Ratings Affirmed
---------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
Netherlands-based Kappa Beheer B.V., a holding company in the Kappa
Packaging group, to stable from positive.  At the same time, the 'BB-'
long-term corporate credit rating and the 'B' subordinated debt rating on
Kappa Beheer were affirmed.

The outlook revision is based on the reduced likelihood of Kappa
Packaging's credit protection measures improving in the intermediate term to
a level supportive of a higher rating, as a result of
weaker-than-anticipated cash generation.

"Although the group has demonstrated an ability to produce fairly stable
operating results through the cycle, the expected improvement in credit
protection measures has been limited due to weaker-than-anticipated market
conditions and volatile input prices," said Standard & Poor's credit analyst
Andreas Kindahl.

"The stable outlook incorporates expectations of continued stability in
Kappa Packaging's operating and financial performance," added Mr. Kindahl.

The ratings on Kappa Beheer reflect Kappa Packaging group's competitive cost
position within a cyclical industry, good market positions of the group's
board businesses, and an aggressive financial risk profile.  The group's net
debt at June 30, 2003, was about EUR1.9 billion ($2.1 billion).

High financial risk results from a leveraged capital structure and exposure
to cyclical markets.

The company was in compliance with its bank covenants at quarter end June
30, 2003.  However, in both the third and fourth quarters of 2003, as well
as in 2004, the group's bank covenants step up, reducing headroom.  The
ratings and outlook, however, incorporate expectations that the company
would be able to obtain bank covenant relief if necessary.

Kappa Packaging is one of the largest European producers of containerboard
(linerboard and fluting), solid board, corrugated board, and solid board
packaging.  About 80% of sales are generated from containerboard and
corrugated board, with the remainder from solid board.


KONINKLIJKE AHOLD: Chairman Leaving Firm, Sources Say
-----------------------------------------------------
Ahold's supervisory board Chairman Henny de Ruiter is considering options to
help the Dutch retailer survive, including the possibility of stepping down
from the group.

According to the Financial Times, sources close to the company said Mr. de
Ruiter could determine that his resignation would help Ahold re-establish
investor confidence.  They added he will likely reach a decision soon.

"A decision could come sooner than we expect because the pressure is just
too great at this moment," one source told the Financial Times.

Charles Huijskens, Mr. de Ruiter's personal public relations adviser said:
"There are people within the company that want him to leave and I think that
is the most painful aspect for him."

Mr. de Ruiter may step down before the supermarket group publishes its
audited 2002 results by the end of the month so that the company could vote
on his successor at a meeting following the release of the financial
results.


ROYAL PHILIPS: Reports Progress in Semiconductor Division
---------------------------------------------------------
In a meeting with investors and financial analysts on Friday, Royal Philips
Electronics N.V. (NYSE:PHG) (AEX:PHI) gave an update on the progress in the
company's recovery plan for its Semiconductor division.  Philips also
highlighted the growing role of its Nexperia(TM) platform of programmable
integrated circuits as a contributor to growth in a market that is beginning
to show signs of improved strength.

"Third quarter sequential sales growth in U.S. dollars, excluding our mobile
displays business, are expected to exceed our earlier 3% forecast by a few
percentage points, and we expect further sequential growth in the fourth
quarter," says Scott McGregor, CEO of Philips Semiconductors.  The order
book for the fourth quarter is progressing well, with the business on track
to being profitable in the fourth quarter.

In reviewing the five-point recovery plan that was unveiled in March 2003,
Philips will show that good progress continues to be made in reducing its
R&D costs through sharpening the focus of its spending, while adapting
production capacity as part of the business' asset-light strategy.  The
company will also outline its achievements in making the Semiconductor
organization simpler and more effective.  Furthermore, Philips will
elaborate on a third-quarter restructuring charge in Semiconductors of
EUR150 million relating to previously announced plant closures in
Albuquerque, New Mexico and San Antonio, Texas, and measures to focus R&D
spending and simplify the organization.

Philips will also use the meeting to review design wins for the Nexperia(TM)
platform with leading players for DVD +RW and cellular handsets, which are
strengthening Philips' position in serving the home entertainment and mobile
telephony markets.

About Royal Philips Electronics

Royal Philips Electronics of the Netherlands is one of the world's biggest
electronics companies and Europe's largest, with sales of EUR31.8 billion in
2002.  It is a global leader in color television sets, lighting, electric
shavers, medical diagnostic imaging and patient monitoring, and one-chip TV
products.  Its 164,000 employees in more than 60 countries are active in the
areas of lighting, consumer electronics, domestic appliances,
semiconductors, and medical systems.  Philips is quoted on the NYSE
(symbol:PHG), London, Frankfurt, Amsterdam and other stock exchanges.  News
from Philips is located at http://www.philips.com/newscenter

CONTACT:  ROYAL PHILIPS
          Philips Corporate Communications
          Jayson Otke
          Phone: +31 20 59 77 215
          E-mail: jayson.otke@philips.com


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P O L A N D
===========


ELEKTROWNIA TUROW: Fitch Cuts Rating to 'B-' from 'BB'
------------------------------------------------------
Fitch Ratings downgraded Elektrownia Turow SA's Senior Secured rating in
respect of the debt secured by Power Purchase Agreement-backed revenues,
including Elektrownia Turow BV's EUR270 million guaranteed secured bonds
maturing in 2011, to 'B-' from 'BB'.  The rating remains on Rating Watch
Negative.

The rating action reflects the increasing probability that, consistent with
the draft act ('on the rules of compensating costs of the termination of
long-term contracts for power and electricity sales an on amendments to
certain acts'), the PPA will be unilaterally canceled.

Although the government still has not finalized and approved the act that
will govern the restructuring, its submission to the Parliament is now
expected in middle October.  During the on-going consultation period, banks
and generators involved in the sector have requested various changes to the
act.  But Fitch believes, based on discussions with the Ministry of Economy,
that there will be no major changes in respect of these key risks to the PPA
secured creditors:

(a) The draft act allows securitization bonds (to be issued) to be allocated
to power generators (in lieu of cash) as a part of the compensation for the
PPA cancellation.  The proportion (currently believed not to exceed 20%),
not being explicitly set by the act, adds further uncertainty.  Although the
securitization bonds are to be monetized by the power generators to redeem
its secured creditors, there is a likelihood of economic loss compared to
cash compensation.

(b) A proportion of the total compensation associated with generating units
under modernization at the time of cancellation of PPAs will be delayed
until these units are commissioned.  In case of Elektrownia Turow Fitch
estimates that, based on the available capacity of Unit 6, around 13% of the
compensation would be delayed until early 2005.

(c) Under the proposed sequence of events, the compensation (for the
operating units) will be paid to power generators within 14 days after the
cancellation of PPAs.  As such, the 2011 bonds are expected to default (PPA
cancellation is an event of default) before any compensation is received.

(d) Unless 'execution' proceedings are instigated by the bonds' Security
Trustee (which could only happen following non-payment), the compensation
may be used for early prepayment of all secured debt, not just the PPA
secured debt, which, in Fitch's view, would lead to a deterioration of the
PPA secured creditor position.

Fitch notes that some of the lending banks are requesting a level of
compensation that would fully repay the PPA-secured debt (or a direct
government guarantee for the shortfall) prior to their consent to the
restructuring plan.  While it remains possible that the previously indicated
compensation level (at c.91% of the Elektrownia Turow's PPA secured debt as
of August 31, 2003) will be increased, this does not mitigate the
possibility of default triggered by the loss of PPA security.

The proposed restructuring is designed to improve the creditworthiness of
Polskie Sieci Elektroenergetyczne SA ahead of unbundling of its transmission
and trading activities and full market liberalization.  There remains a
possibility, remote in the agency's view, of the Polish power sector
restructuring being postponed or cancelled, such postponement would
negatively impact the creditworthiness of Polskie Sieci Elektroenergetyczne,
the PPA counter party.  Fitch will continue to monitor the process and is
likely to take further rating action as the legislation procedure advances.
A research update on Elektrownia Turow dated August 8, 2003 is available to
subscribers from the http://www.fitchresearch.com


KREDYT BANK: HSBC Cleared to Buy Polski Kredyt Bank
---------------------------------------------------
Banking giant, HSBC, last week received the go-signal from Polish
authorities to acquire Polski Kredyt Bank, a subsidiary of Kredyt Bank that
it has tried to buy for GBP5.2 million.  HSBC plans to rename the business
to HSBC Bank Polska following completion, which is expected later this year,
according to This is London.  It will later launch a consumer finance
operations offering unsecured loans, credit cards and affinity cards.

The board of directors of Kredyt Bank, the Polish subsidiary of KBC Bank
N.V., in August decided to propose a PLN665,564,256 capital increase as part
of a restructuring plan intended to address losses in the past financial
year.  The scheme is aimed at improving Kredyt Bank's capital ratios and
protecting its strong position.


LOT AIRLINES: FAA Rating Change Won't Affect Flight Schedules
-------------------------------------------------------------
In connection with the information regarding the move of Poland into
Category 2 rating by FAA, LOT Polish Airlines would like to inform its
passengers that it will not influence the current flight schedule in any
way.

On September 5, 2003 LOT signed a co-operation agreement with United
Airlines, which confirmed plans to operate together connections to over 30
American cities.  Moreover, the decision of FAA does not impact LOT upcoming
accession to the new airline alliance.  According to accepted time schedule,
Polish flag carrier will become the official member of the Star Alliance as
of October 26, 2003.

During this year and past years LOT Polish Airlines has been subject to
numerous audits carried out by foreign carriers (such as American Airlines,
Lufthansa, United Airlines) as well as Star Alliance and French Aviation
Inspection.  Each time we have completed them successfully with full
compliance to all possible safety standards.  The mentioned audits were
required both by international ICAO regulation and national law of LOT
Polish Airlines' foreign destinations.  FAA decision has absolutely nothing
to do with LOT Polish Airlines as a carrier.

                     *****

LOT is a member of the bankrupt Sairgroup and it has not seen any profit
since 1997.  It posted a net profit in 2002, but this was because some of
its aircraft were resold to their leasing companies.


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S W E D E N
===========


SAS GROUP: Members Lower Prices by 20% to Improve Flexibility
-------------------------------------------------------------
The airlines in the SAS Group, Scandinavian Airlines, Braathens, Wideroe's
announced that they will lower prices by approximately 20%.  The prices in
the lower segments will also be lowered and the rules will be simplified.
The changes are part of the SAS Groups' measures within Turnaround 2005 that
enables price reductions due to lowered cost level.

The expected effect on the group total yield in 2003 will be limited and
revenues will be partly offset by expected increased volumes.

For detailed information please refer to respective release from
Scandinavian Airlines, Braathens and Wideroe's.

The cuts in service are expected to save SAS up to NOK100 million per year,
according to newspaper Dagens Naeringsliv.


SCANDINAVIAN AIRLINES: Acquires 49 Percent of Estonian Air
----------------------------------------------------------
SAS AB has signed an agreement with Danish Maersk Air A/S to acquire 49% of
the shares in the Estonian airline Estonian Air.  The other shareholders of
Estonian Air are the Estonian Government with 34% and the Estonian
investment-banking firm AS Cresco with 17%.  SAS AB has also signed an
agreement with Cresco covering a possible increase of SAS shareholding in
Estonian Air.  In addition to Estonian Air, SAS AB acquires 100% of the
shares of Maersk Air Maintenance Estonia AS, a company based in Tallinn
providing technical maintenance for aircraft. The total purchase price is
SEK180 million.

Strong position in the Baltic States
The acquisition is part of the SAS Group's strategy to strengthen its
position in the Baltic region.  Scandinavian Airlines inaugurated traffic
between Stockholm and Tallinn already in 1989 and at the time was the first
Western European airline that opened scheduled flight connections to
Estonia.  Since then, expansion in the Baltic States and Finland has played
a central role in the SAS Group's positioning in the area.  This includes
the SAS Group's involvement in airBaltic, Latvia, and the wholly owned
Finnish company Air Botnia.

Estonian Air has a strong base in its routes to Copenhagen and Stockholm and
has favorable prospects for future expansion.

"Estonian Air is a profitable, strong and growing company in a strategically
highly attractive region.  Traffic to and from Estonia is expected to
increase by at least 8-10% annually," says Gunnar Reitan, Executive Vice
President, Subsidiary & Affiliated Airlines.

The acquisition is expected to have a neutral effect on the SAS Group's
earnings during 2003 and a positive effect in 2004.  In addition, synergy
effects are estimated to arise in 2004 amounting to about SEK35 million.
Estonian Air has a positive net debt (net cash) and the EDITDAR/capitalized
leasing expenses plus net debt amounts to about 0.22 (0.13 for the SAS
Group).  The Group's capitalized leasing expenses will not be affected by
the acquisition.  Net debt for the Group increases by SEK180 million,
corresponding to 0.8% of the Group's total net debt.

Favorable development in Estonian Air
Estonian Air was formed in 1991 and privatized in 1996.  At that time,
Maersk Air acquired 49% of the shares.  In conjunction with the
privatization, the company was restructured and Boeing 737-500s and Fokker
50s were leased.  Estonian Air serves routes between Tallinn and Copenhagen,
Stockholm, Moscow, Kiev, Vilnius, Frankfurt, Hamburg, Berlin, Oslo, Paris
and London. Most traffic is to Stockholm and Copenhagen.

Estonian Air has 311 employees and during the past two years has reported
net profit of EEK14 million in 2001 and EEK39 million in 2002.  Estonian Air
will continue to operate as an independent airline under its own brand.


=====================
S W I T Z E R L A N D
=====================


ABB LTD.: Sale of Oil, Gas and Petrochemicals Unit Imminent
-----------------------------------------------------------
ABB Limited will sell its Oil, Gas and Petrochemicals unit to a consortium
made up of 3i Group PLC, Candover Investments PLC and JP Morgan, AFX said,
citing a report by NZZ am Sonntag.

The leading power and automation technology group that is currently
disposing assets is reportedly divesting the division for over US$1 million.
Talks with these companies are already in advanced stages, a company
spokesman was quoted as saying.  London investment banking sources also said
an agreement will be reached in the coming days, once the last juridical
details have been fixed.

ABB's disposals, including a power network and the Red Bank coal-powered
electricity station in Australia, are part of efforts to reduce debt to
US$6.5 billion by year's end.  The engineering company's debt burden reached
US$8.3 billion at the end of the second quarter.

TCR-Europe recently said ABB is banking on the pending sale of the Oil, Gas
and Petrochemicals division to achieve its debt reduction target this year.


MOUNT10 HOLDING: Execs to Control Consulting Unit After Spinoff
---------------------------------------------------------------
Within the process of becoming a focused software solution provider, Mount10
is selling a majority holding in its Business Consulting division to
vice-presidents Thomas Panek and Per Flindt-Hansen.

Mr. Panek and Mr. Flindt-Hansen will assume a majority of the partnership
shares of the newly founded Mount10 PCM GmbH, which will be based in
Rotkreuz, Switzerland.  They will be leaving Mount10 Holding AG after 3 and
2 years respectively as vice-presidents.  Mount10 Holding AG will retain a
minority share in the newly founded company.  The spin-off of the business
unit will ensure the neutrality of the Business Consulting activity.  It
will have no major influence on Mount10's operating results for business
year 2003.

The executive board of Mount10 Holding AG will, therefore, now comprise the
three existing members: Adrian Knapp CEO, Markus Bernhard CFO and Erik Wirz
COO.  Mount10 would also like to take this opportunity to announce that
renowned specialist Dr. Detlef Kreuz will be taking over as head of Software
Development.

The company's U.S. business activities will be complemented by a branch
office in Los Angeles.  Mark Ashley formerly with PricewaterhouseCoopers
joined the company as new managing director at the beginning of September
2003.  The focus of our business activities in the USA is on establishing
the OEM channel and key account business in California.  Our support
organization will remain in Houston, Texas.  Mount10's customers in the USA
include General Mills and AIG.

A new branch office was opened in Munich at the end of August 2003, so the
German market is now being developed from Dresden, Hamburg and Munich.

                     *****

In June, part of the company's management and administrative board as well
as other strategic investors subscribed to new shares in the company to the
value of EUR1.5 million.  Part of these incoming funds was allotted to pay
creditor banks in order to secure unconditional write-offs by the banks
amounting to EUR2.1 million.  This transaction was expected to reduce the
company's indebtedness to EUR2.8 million.  The company entered into said
arrangement to avert possible insolvency.

CONTACT:  MOUNT10 HOLDING AG
          Grundstrabe 12
          CH-6343 Rotkreuz
          Phone: +41 41 798 3344
          Fax: +41 41 798 3393
          Home Page: http://www.mount10.com
          Contact
          E-mail: lorena.caccese@mount10.com
                  claudia.schumacher@mount10.com


===========================
U N I T E D   K I N G D O M
===========================


ALLDAYS PLC: Receivers Sell Stores to Co-operative Group
--------------------------------------------------------
David Hargrave and Bruce Cartwright, partners of PricewaterhouseCoopers,
were appointed as Joint Administrative Receivers to Alldays plc, the
convenience store operator, and subsequently announced the sales of its
operations and businesses to Co-operative Group (CWS) Limited.

Alldays plc was the parent company of a group that operated over 600
convenience stores throughout the U.K. with some 10,500 employees.  However,
due to the level of debt in the group the directors of the company had
sought in recent months to find a buyer for the whole of the group.
Subsequent to their efforts, offers were received from various parties the
best of which, from the Co-operative Group, was pursued even though
consummation would have resulted in a substantial shortfall for the group's
secured lenders.

Based on the circumstances of the offer made and the surrounding
circumstances, the directors concluded that a sale to the Co-operative Group
could only be achieved by utilizing a formal insolvency process.  Therefore,
following negotiations with the Co-operative Group, they invited the secured
lenders to appoint administrative receivers.

Following their appointment, the Joint Administrative Receivers from
PricewaterhouseCoopers, with the full agreement of the secured lenders,
reached agreement with the Co-operative Group for a sale of the assets and
business of the Company which resulted in a transfer of all the employees to
the Co-operative Group, together with the payment of all trade creditors.

David Hargrave commented: "This is a great deal for the creditors of the
group and the employees alike.  I am delighted that through a sale to the
Co-operative Group, we have been able to reach a conclusion that, in the
circumstances, produced substantial value for all the creditors of the group
including the secured lenders who fully supported the sale.  Further, the
sale also secured the employment of all 10,500 employees of the group who
are joining a well known and respected name in the business."

CONTACT:  PRICEWATERHOUSECOOPERS
          David Hargrave
          Phone: 020 7804 4780

          Lorna Siddall
          PricewaterhouseCoopers
          Phone: 020 7213 4731


BAE SYSTEMS: Denies Using Govt Money to Seal Saudi Contracts
------------------------------------------------------------
BAE Systems insists it acted "within the laws of the U.K.," as allegations
emerged it endorsed fraudulent use of government money to "entertain" Saudi
Arabian military officials.  BAE is the contractor in the 25-year, Ministry
of Defense-administered Al Yamamah deal with the Saudi Arabian government.

The "possibility of fraud" was mentioned in the letter of Serious Fraud
Office CEO Rosalind Wright to the Ministry of Defense Permanent
Undersecretary Sir Kevin Tebbit in March 2001.
The communication cited allegations of Edward Cunningham, who was employed
by Robert Lee International Ltd., a company used by BAE to arrange travel
and visas for employees it sent to Saudi Arabia.  Mr. Cunningham had a
pending case against Robert Lee for unfair dismissal at the time.

The Serious Fraud Office letter raises the prospect that "Government money
ha[d] been misused," although it says there was insufficient evidence to
pursue a criminal investigation.

"If evidence of financial misconduct is subsequently uncovered, we would be
pleased to look at the case again with a view to a criminal investigation,"
the letter said.

Chief executive Mike Turner in response to the accusations only said: "They
are old allegations.  They are old hat," according to the Telegraph.


CABLE & WIRELESS: Shortlist of Bidders for U.S. Unit Out Soon
-------------------------------------------------------------
Cable & Wireless could come up with a shortlist of bidders for its
loss-making U.S. arm within the next few weeks, people close to the company
said, according to the Financial Times.

The report said Cable and Wireless is now examining about six possible
buyers for its web-hosting and business services division.  It could pick
one or two interested parties in the pool, believed to include U.S. telecoms
operators and private venture capital groups.

The progress has raised hopes that a sale could be concluded before the end
of the year, the report said.  This is good news considering the ongoing
cash drain at the division and the potentially huge costs of shutting down
the U.S. arm with no buyer.

The report cited one investor saying: "We estimate Cable & Wireless is
burning through GBP1 million of cash a day in the U.S., so the sooner it can
dispose of the U.S. [arm], the better."

James Harper, analyst at Citigroup Smith Barney, considers a sale by the end
of the year a "step in the right direction," but he raised the question of
"how much is it going to cost to exit the U.S."

Basing on Cable & Wireless' property lease commitments in the U.S., which
totaled GBP400 million last year, it is estimated that shutdown costs of the
division is potentially large.  Analysts expect the amount could be over
GBP1 billion, which is disastrous for a company with only GBP1.6 billion in
cash pile.


EMI GROUP: Standard & Poor's Changes Outlook to Negative
--------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on U.K.-based
music producer and distributor EMI Group PLC and related entities to
negative from stable following a review of EMI's credit quality in light of
the continued evolution of the global recorded music market.

At the same time, Standard & Poor's affirmed all its ratings on EMI,
including its 'BBB-/A-3' corporate credit ratings on the group.  In
addition, related entity EMI Group Finance (Jersey) Ltd.'s $243 million
5.25% convertible notes due 2010 (guaranteed by EMI Group PLC and Capitol
Records Inc.) were assigned a 'BBB-' senior unsecured debt rating, subject
to Standard & Poor's review of final documentation.  At March 31, 2003, EMI
had gross debt of GBP960 million ($1.6 billion).

EMI's relatively narrow business profile compared with integrated media
rivals increases risks to the group's business.  Despite EMI's progress with
restructuring, challenging market conditions imply that the group's credit
ratios are likely to remain below investment-grade medians over the next few
years.

"Sustained recovery of EMI's ratios back into investment-grade territory
depends upon the success of industry-wide initiatives to combat piracy, a
recovery in consumer spending, maintained improvements in the group's
operating margin, and the group's recovery of lost market share," said
Standard & Poor's credit analyst Trevor Pritchard.  "EMI must also maintain
strict financial discipline regarding shareholder distributions in order to
make meaningful inroads on its financial debt."


KINGSTON COMMUNICATIONS: Plans to Cancel CEO's Separation Pay
-------------------------------------------------------------
The board members of struggling Kingston Communications could cut any
pay-off to ousted CEO Steve Maine.  According to the Telegraph, some
directors of the company are concerned potential criticism could ensue if
Mr. Maine is granted his full entitlement, which is a year's salary of
GBP380,000.  Mr. Maine was forced to resign last week after a profit warning
that prompted the company to hunt for a possible merger partner.

According to the report, one source close to the company said: "I have no
doubt the board will have this in mind when they meet. The first thing to do
is to find what he is legally entitled to and take it from there. The
outside perception of this is obviously important. They will have to see
what recommendations the human resources director makes to the board when it
meets again in a fortnight."

Mr. Maine was the one who oversaw the flotation of the company's phone
business in 1999.  The shares were valued at 225p each, reaching GBP15.90
during the dotcom boom.  But after the stock markets slumped, the shares
fell down to 96c.  Kingston made losses under his scheme of expanding across
Britain and spending millions for the development of the group's interactive
TV service.


NETWORK RAIL: Freight Operators Call for Cost-cutting
-----------------------------------------------------
The Rail Freight Group, in its response to the rail regulator Tom Winsor's
third consultation paper for his "interim review" of Network Rail's charges,
urged the operator to curve cost to ensure viability, according to the
Telegraph.

The group represents 180 companies, including Britain's biggest rail freight
business EWS, logistics group Exel, shipping line Maersk and port operators.

It said: "It is of paramount importance for the very survival of the railway
that Network Rail reduces its costs to an affordable level."  It told Mr.
Winsor not to believe Network Rail when it said it is facing a "bow wave" of
investment because of underspending by British Rail and Railtrack.

Mr. Winsor has told Network Rail to cut current spending to GBP4 billion
annually within five years.

"We do not believe that there has been a fundamental change in the cost of
running a railway since privatization, or that the network is suffering from
an unprecedented backlog of maintenance and renewals expenditure, which
justifies the current level of cost," the group also said.

Network Rail is currently spending around GBP6 billion a year.  It said it
has a 4,000-mile backlog of track that needs replacing, hence it needed such
amount.  But the group of leading freight operators in Britain said "Network
Rail's knowledge of asset condition and its understanding of future
maintenance and renewal requirements remains inadequate."  It is concerned
that the budget may affect the budget for freight improvements on the
railways.

The rail operator's latest 10-year business plan to 2012-13 forecasts a need
for GBP54 billion, with GBP10.4 billion for maintenance, GBP27.2 billion for
renewing the network, GBP6 billion for the West Coast main line upgrade and
GBP10.4 billion for operational expenditure.  The scheme, which expects to
cut costs by one fifth, or GBP1.3 billion over the next three years,
includes 2,000 redundancies.

The group of leading freight operators in Britain agrees with Mr. Winsor
that part of the West Coast main line upgrade could be delayed for a year.
This could save around GBP1 billion.


ROYAL & SUNALLIANCE: In Exclusive Talks with Cendant
----------------------------------------------------
Life insurer Royal & SunAlliance is now talking exclusively with a foreign
company that wants to buy its estate agency business, AFX News said, citing
a report by The Sunday Times

According to the article, Cendant is the frontrunner to buy the chain.  The
group is America's largest travel and property-services company and has
ambitions to expand internationally.  Its brands include Ramada Inn, Avis
and Budget rental cars, and the property firm Coldwell Banker.  Buying Royal
& Sun's 360-strong chain, which has been rebranded Sequence, will give the
American group a significant presence in Britain.

Royal & Sun's CEO Andy Haste identified the chain as "non-core" and it has
been on the block for several months.  However, the sale price could only be
less than GBP30 million.

TCR-Europe recently said the sale of Skipton, Britain's seventh largest
building society, is part of Royal & SunAlliance's drive to raise capital to
repair finances hit by asbestos claims and three years of falling stock
markets.  The sale, which could be announced within days, could fetch the
company as much as GBP50 million, the report said.


ROYAL & SUNALLIANCE: Posts Documents Related to Rights Issue
------------------------------------------------------------
A copy of these documents:

(a) Prospectus relating to the proposed Rights Issue by Royal & Sun Alliance
Insurance Group plc of up to 1,440,000,000 new ordinary shares at 70p each
per new ordinary share

(b) Notice of Extraordinary General Meeting

(c) Proxy Form

has been submitted to the U.K. Listing Authority, and will shortly be
available for inspection at the U.K. Listing Authority's Document Viewing
Facility, which is situated at:

Financial Services Authority
25 The North Colonnade
Canary Wharf
London E14 5HS
Phone: (0)20 7676 1000

                     *****

The rights issue is aimed at restoring growth in the company after a crisis
following the bear market.  Royal & Sun suffered a series of dismal results
and dividend cuts, which forced former chief Bob Mendelsohn to quit last
year.


SILENTNIGHT HOLDINGS: Difficult Trading Condition Hits Results
--------------------------------------------------------------
We indicated in our Annual General Meeting trading update in June 2003 that
trading conditions were challenging.  This continues to be the case and has
impacted on our results for the six months to August 2, 2003.

As previously indicated, given the continuing level of losses, the board
does not consider it prudent to pay an interim dividend.

Trading Review

Turnover from continuing operations fell by GBP3.1 million to GBP120.3
million (2002: GBP123.4 million).  Overall, the Group's operating profit on
continuing operations before exceptional items fell by 29% to GBP3.5 million
(2002:GBP4.9 million).  These results reflect a deterioration in our beds
business, where operating profits have decreased by 23% and trading losses
in the continuing operations of our furniture businesses of GBP2.0 million
(2002:trading losses of continuing operations of GBP2.3 million).  The
operating losses arising from discontinued operations before exceptional
costs were GBP0.7 million (2002: GBP2.6 million).

Exceptional costs of GBP2.4 million were charged against profit during the
period of which GBP2.1 million related to the Furniture Division,
particularly Cornwell Parker Cabinets and Parker Knoll Upholstery (2002:
exceptional costs of GBP9.2 million).  Additionally a total charge of GBP7.0
million has been shown as a loss on discontinued operation that represents
the closure costs of Ducal's manufacturing sites at Andover and Bridgend.

The loss on ordinary activities before tax for the first six months of the
year was GBP6.5 million (2002: loss before tax of GBP7.1 million).

Offer by Soundersleep Limited

Soundersleep Limited, which controls 50.81% of the issued share capital of
the company, approached the board with an indicative offer of 140 pence per
share to purchase the remainder of the shares that it did not already own.
This was announced on July 16, 2003.  Following detailed discussions with
the independent directors, this has now been superseded by an increased
offer of 155 pence per share details of which are announced Friday and are
contained in an offer document being sent to shareholders Friday.  This
offer has been recommended by the independent directors following advice
from Evolution Beeson Gregory, the company's financial adviser.

Review of Divisional Results

U.K. Bed Division

Turnover in the period fell slightly to GBP81.0 million (2002: GBP81.5
million) with operating profits decreasing from GBP7.4 million in 2002 to
GBP5.7 million in 2003.

Sales and profits in our businesses serving the lower end of the market
continued to decline due to unrelenting pressure on margins.  We are
concerned that this is now also affecting our premium branded businesses.
To mitigate the effect of these we are implementing a range of operational
improvement programs but it will take some time before the benefits of these
start to show through.

Furniture Division

The Furniture Division's turnover from continuing operations decreased to
GBP33.5 million (2002: GBP36.9 million) a fall of 9% The fall in turnover
was principally in the branded furniture businesses. Operating losses from
continuing operations continued to run at a high level but were reduced to
GBP2.0 million (2002: Operating losses of GBP2.3 million).  Operating losses
in Ducal were reduced from GBP2.6 million to GBP0.7 million which was a
result of one-off sales of end of lines from the Ducal manufacturing
operations and the requisite accounting treatment which shows some of the
losses on the discontinued operation under exceptional closure costs.

In my statement in the 2003 Annual Report I advised that we were embarking
on fundamental restructuring and rebasing of the Furniture Division.  The
current status is that Ducal's factories in Andover and Bridgend have been
closed and Cornwell Parker Furniture's cabinet factory in Edmonton is being
run down.  A new site in Enfield is being developed to house and distribute
imported cabinet furniture.  Meanwhile, at Chipping Norton we have
discontinued the loss making activities of contracts, export and renovations
for Parker Knoll Upholstery.

Plans to relocate the main Chipping Norton site are presently on hold as we
seek alternative sites.

Overseas Bed Division

Sales in this division rose by 16% from GBP5.0 million in 2002 to GBP5.8
million in 2003 with an operating loss of GBP0.24 million (2002: GBP0.24
million).

Growing pressure on margins removed the benefit of the additional turnover.

Cashflow

As at February 1, 2003, the Group had net cash of GBP7.6 million. Since then
the Group has invested GBP4.6 million in fixed assets, representing 148% of
depreciation.  The Group generated a net cash inflow from operating
activities of GBP0.1 million (2002: net cash inflow of GBP4.2 million), paid
GBP2.7 million in respect of the final 2002/3 dividend and received a net
tax refund of GBP0.2 million.  Overall, the cash flows resulted in a
reduction of GBP6.5 million in our net cash balances to GBP1.1 million.

Property

As of August 2, 2003 we have incorporated a triennial property revaluation
that uplifted the value of the Group's properties by GBP6.9 million.

We are showing as assets held for resale GBP10.9 million being the expected
net sales proceeds of properties at Andover and Edmonton.

Directors

David Adam, Finance Director, will become a non-executive director of
Silentnight on October 31, 2003.  The company is in the process of
appointing a successor.

Outlook

To date, 2003 has been a difficult year for the Group, which has had to cope
with a weakening market, increasing pressure on margins and a substantial
reorganization of its branded furniture businesses. Trading conditions
remain weak and with little visibility in our order books it is not easy to
predict when this will change.  I am confident that management is
approaching the changes needed with a high level of urgency and in a
structured manner and provided that there is an accompanying pick-up in the
market, these changes can deliver the improvement in profitability that we
are all striving for.  However this may take some time to achieve.

Roger Pedder
Chairman

To See Financial Statements:
http://bankrupt.com/misc/Silentnight_Interim.htm


SILENTNIGHT HOLDINGS: Soundersleep Offers GBP72.2 Mln in Cash
-------------------------------------------------------------
The Independent Directors of Soundersleep announced Friday that they have
reached agreement on the terms of a recommended cash offer, to be made by
Williams de Broe on behalf of Soundersleep, for the whole of the issued
share capital of Silentnight that Soundersleep does not already own.

The Silentnight business was established in 1946 by Tom and Joan Clarke and
was floated on the London Stock Exchange in 1973.  Famco was formed in 1982
in order to hold shares in trading companies on behalf of the Clarke family.
Famco is controlled by 20 Clarke family trusts.  These trusts have common
trustees, none of whom has a beneficial interest in any of the trusts.
Famco's shares are owned by the trusts and the 19 beneficiaries of the
trusts all of whom are members of the Clarke family.

Soundersleep, a subsidiary of Famco, was established as a private limited
company in May 2002 to bring together the interests of the Clarke family in
Silentnight with those of Antonino Allenza and Michelle Scott with a view to
making an offer for the share capital of Silentnight which they did not then
already own.  To date, Soundersleep has been financed by the cash investment
of GBP250,000 in its share capital by Antonino Allenza and Michelle Scott.

The directors of Soundersleep are Antonino Allenza, John Clarke, Peter
Clarke and Michelle Scott.

The Offer

The Offer, which will be made on the terms and conditions summarized below
and in Appendix I to this announcement and on the further terms which will
be set out in the Offer Document and in the Form of Acceptance, will be made
on this basis:

for each Silentnight Share:  155 pence in cash

The Offer values the whole of the issued share capital of Silentnight at
GBP72.2 million and represents a premium of approximately 32% to the closing
middle market price of 117.5p per Silentnight Share on 15 July 2003, being
the last business day prior to the announcement by Silentnight that it was
in discussions regarding a possible offer and a premium of approximately 12%
to the  closing middle market price of 138.5p per Silentnight Share as
derived from the Daily Official List at the close of business on September
11, 2003 (the latest practicable date prior to the publication of this
document).

The Silentnight Shares to be acquired pursuant to the Offer will be acquired
by Soundersleep fully paid and free from all liens, equities, charges,
encumbrances and other interests and together with all rights now or
hereafter attaching thereto, including the right to receive and retain all
dividends and other distributions declared, made or which become payable on
or after the date of this document.

Background and reasons for the Offer

As a result of seeing its investment deteriorate in terms of share value and
performance over recent years, in the summer of 2002 Famco made an approach
to the board of Silentnight with a view to acquiring the Silentnight Shares
it did not already own.  During the course of discussions, it became clear
that Famco had underestimated the significant operational issues facing the
business and concluded that immediate action was required to protect the
value of its and other shareholders' investments in Silentnight.  The board
of Famco now believes that the indicative offer made at the time
substantially overvalued the business and did not reflect the market
difficulties and significant risks associated with the plans to turnaround
the loss-making branded furniture businesses and would not have been
fundable once sufficient due diligence had been conducted on behalf of Famco
and the proposed funders.  The approach was therefore withdrawn to enable
Famco, outside the constraints of an offer period, to use its controlling
interest to effect a change in the senior management of the company.

The board of Soundersleep believes that the Offer will enable it to address
the issues being faced by the Silentnight businesses.  Together with the
existing management team of Silentnight, it is the intention of the
directors of Soundersleep to work towards the turnaround of Silentnight's
branded furniture businesses and to address the margin pressures and long
term market trend away from traditional divan sets being faced by the Bed
Division.  The directors of Soundersleep believe that returning Silentnight
to private ownership will enable the necessary measures to be taken and
investment required to be made more efficiently outside the demands of a
public market.

The new management team is now implementing a major turnaround plan that
involves considerable risk.  The board of Soundersleep therefore believes
that this can be done more effectively outside the restrictions of the U.K.
Listing Authority and the London Stock Exchange.  Soundersleep is not
willing to dilute its holding of Silentnight Shares to 50% or below and, as
a result,
Silentnight has not been able to use its share capital to grow the business.
For these reasons, Soundersleep is making the Offer in order to take full
ownership of the business and proposes to apply to de-list Silentnight from
the Official List of the U.K. Listing Authority and the London Stock
Exchange.

Recommendation

The Independent Directors, who have been so advised by Evolution Beeson
Gregory, consider the terms of the Offer to be fair and reasonable.  In
providing advice to the Independent Directors, Evolution Beeson Gregory has
taken into account the commercial assessments of the Independent Directors.
The Independent
Directors, taking account of all of the circumstances, therefore unanimously
recommend that Silentnight Shareholders accept the Offer.

Reasons for the recommendation of the Offer by the Independent
Directors

In considering the Offer and their recommendation, the Independent Directors
have taken into account a number of factors in relation to Silentnight and
its current status and structure.

Over the last year, the new management team together with David Adam, the
Finance Director, has reviewed both the operating divisions of Silentnight,
being the Bed Division and the Furniture Division.  Each of these divisions
has encountered trading difficulties over the last year and measures have
been implemented by the Board to address these difficulties.

In the Furniture Division there were inefficiencies related to too many
product lines, too many production sites and high manufacturing costs as a
result of being based in the United Kingdom.  In addition, the Board was of
the opinion that some of the brand names were perceived to be old fashioned
and expensive.  The new management team has tackled these issues with site
closures at Andover and Bridgend, manufacturing run down at Edmonton,
redundancies, new management for some of the brands, new product lines and
by starting to source product from overseas rather than manufacturing in the
U.K.

In the U.K. Bed Division, Silentnight enjoys a majority market share of
approximately 26% and the division has delivered steady cash returns for
Silentnight over the last few years. However, the U.K. Bed Division has
suffered from the market shift away from divan sets (some 27% of the market)
towards bedsteads (some 22% of the market) which currently represent only a
small part of the Bed Division's sales, increasing margin pressure from the
large retail chains and growing input cost pressures from suppliers.  In
response to another change in market demand, Silentnight has been converting
one of its bed businesses to become a pocket spring mattress manufacturer
rather than a manufacturer of open coil mattresses.  Whilst this strategy is
being progressively adopted the business is still producing a small loss.

The actions being taken to address the difficulties in each division are
still at a very early stage and whilst the Board believes that these actions
will lead to improved trading and profitability in the future, it is
unlikely that such improvements will be fully reflected for at least 18 to
24 months.  There also remains a degree of uncertainty as to how effective
the actions taken will prove to be and therefore, of the future trading
performance.  This may, in turn, result in some volatility in the share
price.  Consequently, the Independent Directors believe that it would be
more appropriate for the shares to be privately held.

The Offer values Silentnight at GBP72.2 million whilst the net asset value
at August 2, 2003, extracted from the interim accounts, was GBP84.1 million.
In making their assessment of the Offer, the Independent Directors consider
that this value is potentially diminished by the deficit on the Defined
Benefit Pension Scheme, which was GBP19 million at February 1, 2003 under
FRS 17 (net of deferred tax), and by further trading losses and exceptional
costs to be incurred during the second half of this financial year.

The Independent Directors have also considered the Offer in the context of
the existing capital structure of the company.  The company has always had a
controlling shareholder, which limits the influence of the minority
shareholders over the strategic direction of the company.  Furthermore,
Soundersleep has confirmed that it does not intend to sell its Silentnight
Shares, which makes it unlikely that any other party would make an offer to
acquire the Silentnight Shares not owned by Soundersleep.  The Silentnight
Shares are therefore relatively illiquid and the ability of a minority
shareholder to sell Silentnight Shares at the market price, other than in
small amounts, is restricted.

Undertaking to accept the Offer

Soundersleep has received an irrevocable undertaking to accept, or procure
the acceptance of the Offer from David Adam in respect of his and his wife's
entire holding of Silentnight Shares amounting to 6,878 Silentnight Shares,
representing approximately 0.01% of the entire issued share capital of
Silentnight.  Such undertaking will cease to be binding only if the Offer
lapses or is withdrawn.

Further irrevocable undertakings have been received from other Silentnight
Shareholders in respect of an aggregate of 1,610,230 Silentnight Shares
representing 3.4% of the issued share capital of Silentnight.  These
undertakings will cease to be binding if, before the Offer becomes or is
declared unconditional in all respects, another person makes an offer to
acquire the entire issued share capital of the company at a value that
exceeds the value of the Offer.

In addition, non-binding letters of intent have been received from other
Silentnight Shareholders to accept the Offer in respect of an aggregate of
9,300,988 Silentnight Shares, representing 20.0% of the issued share capital
of Silentnight.

In total, Soundersleep holds irrevocable undertakings and non-binding
letters of intent to accept the Offer in respect of approximately 23.4% of
the issued share capital of Silentnight which, together with its holding,
and those of its connected persons, amounting to 23,699,880 Silentnight
Shares representing 50.9%, gives Soundersleep an interest in 74.3% of the
issued share capital of Silentnight.

The Acceptance Condition

Soundersleep has stated that the Offer will be declared unconditional as to
acceptances if the acceptances, when aggregated with the Silentnight Shares
already held by Soundersleep, are at the level of 75% or more of the issued
share capital of Silentnight.  This level will be achieved by acceptances of
50% of the Silentnight Shares to which this Offer relates.

To See Full Copy of Cash Offer:
http://bankrupt.com/misc/Silentnight_CashOffer.htm


SILENTNIGHT HOLDINGS: Finance Chief to Become Non-exec Director
---------------------------------------------------------------
Silentnight directors and employees

The board of directors of Soundersleep has given assurances to the
Independent Directors that the existing employment rights, including
pensions rights, of all employees of Silentnight will be fully safeguarded.
It is intended that the executive and non-executive directors of Silentnight
will, following the Offer becoming or being declared unconditional, continue
in their existing positions, save for David Adam who will become a
non-executive director of Silentnight on the appointment of a sufficiently
well qualified replacement as finance director as announced on April 9,
2003.

Information relating to Famco and Soundersleep

The Silentnight business was established in 1946 by Tom and Joan Clarke and
was floated on the London Stock Exchange in 1973.  Famco was formed in 1982
in order to hold shares in trading companies on behalf of the Clarke family.
Famco is controlled by 20 Clarke family trusts.  These trusts have common
trustees, none of whom has a beneficial interest in any of the trusts.
Famco's shares are owned by the trusts and the 19 beneficiaries of the
trusts all of whom are members of the Clarke family.

Soundersleep, a subsidiary of Famco, was established as a private limited
company in May 2002 to bring together the interests of the Clarke family in
Silentnight with those of Antonino Allenza and Michelle Scott with a view to
making an offer for the share capital of Silentnight which they did not then
already own.  To date, Soundersleep has been financed by the cash investment
of GBP250,000 in its share capital by Antonino Allenza and Michelle Scott.

The directors of Soundersleep are Antonino Allenza, John Clarke, Peter
Clarke and Michelle Scott.

Summary financial information on Famco:

Three years ended 31 January 2003
                2003           2002           2001

                GBP'000       GBP'000        GBP'000

Turnover        277,887       300,679        230,730

Operating (loss) / profit
               (11,326)        11,682         11,510
(Loss) / profit on ordinary activities before tax
               (12,114)        11,503         13,308
(Loss) / profit for the financial year
                (5,069)         3,541          4,214

To See Full Copy of Cash Offer:
http://bankrupt.com/misc/Silentnight_CashOffer.htm


SILENTNIGHT HOLDINGS: Yorkshire Bank Backs Soundersleep's Bid
-------------------------------------------------------------
Soundersleep financing arrangements

Full acceptance of the Offer by existing Silentnight Shareholders would
require the payment by Soundersleep of GBP35.5 million in cash.  Williams de
Broe has confirmed that the necessary financial resources are available to
Soundersleep to enable it to implement the Offer in full.

The cash consideration payable by Soundersleep under the Offer, together
with the expenses of the Offer, will be financed from bank facilities to be
provided to Soundersleep by Yorkshire Bank.  Draw down of the facilities
made available to Soundersleep by Yorkshire Bank will be made as and when
required following the Offer becoming or being declared wholly
unconditional.

It is the intention of Soundersleep, once it has received acceptances, which
when aggregated with its existing holding of Silentnight Shares, give
Soundersleep a holding of over 75% of the Silentnight Shares, to declare the
Offer wholly unconditional.  It also intends to delist the Silentnight
Shares from the Official List, to cancel trading of Silentnight Shares on
the London Stock Exchange, to re-register the company as a private limited
company and to implement procedures to enable Silentnight's assets to be
used as security for the bank facilities.

Information relating to Silentnight

Silentnight was established by Tom and Joan Clarke in 1946 and its principal
activity is the manufacture of beds and assembled cabinet furniture for the
U.K. domestic furniture market.  The bed division includes the brand names'
Silentnight Beds', 'Sealy' and 'Rest Assured'.  The furniture division
includes the 'Ducal', 'Nathan' and 'Homeworthy' brand names and 'Parker
Knoll' upholstery.

In its last financial year ended February 1, 2003, Silentnight reported
turnover of GBP277.3 million and a loss before taxation of GBP11.2 million.
Turnover had fallen 8% in an increasingly challenging market and losses in
the furniture division continued to grow.  Measures had already been taken
to start to address these issues and the Group's Keighley factory was closed
and its operations in Sunderland were consolidated onto one site.  In
recognition of the poor performance, in particular the drop into loss at the
post exceptional level and the serious erosion of net worth, the dividend
was also cut from 13.5p in 2002 to 8.5p for the year to February 1, 2003.

At its Annual General Meeting on June 25, 2003 Silentnight reported that
trading conditions in its Bed Division continued to be difficult and that in
line with a declining market its first half order book was down year on
year, although hope remained for a slight pick up in the second half of the
financial year.  In the first six months of the current financial year order
intake has been below the previous year for five out of the six months.
Only June 2003 showed an increase over the previous year. Overall, order
intake in the first six months was 7% down on the previous year. An
unprecedented level of margin pressure from key customers was exacerbating
an already difficult trading climate and whilst rationalization and
re-launch plans for the branded furniture businesses were progressing, some
delays were being experienced in the relocation of the Group's Chipping
Norton and Edmonton facilities.  Other competitors in the market have also
reported difficult trading conditions.

Since Silentnight's last Annual General Meeting, it has closed its
manufacturing facility at Andover.

In the Company's interim results statement announced earlier, the Chairman
reported that trading conditions continued to be challenging.  It was also
reported that the Group's turnover from continuing operations fell by
GBP3.1million to GBP120.3 million (2002: GBP123.4 million).  Operating
profit from continuing operations had fallen by 29%, compared to the
corresponding period last year, to GBP3.5 million (2002: GBP4.9 million).
The loss on ordinary activities before tax for the same period was GBP6.5
million compared to GBP7.1 million in 2002, also GBP1.7 million of trading
losses since April 4, 2003 have been included in the loss from discontinued
operation.

In the Bed Division the sales and profits for the lower end of the market
remain subject to severe margin pressure and the effects of this are
beginning to be seen in the premium branded business.  The attempt to
diversify into bedsteads to mitigate the gradual decline of divan sales is
at an early stage but the
Directors remain confident that this change and other operational
improvements will be successful in time.  The difficulties faced by the Bed
Division are highlighted by the results for the six months to August 2,
2003, which show a small decline in turnover of GBP546,000 but a decline in
profitability of 23% on the same period in 2002.

In the Furniture Division most of the reinvestment and exceptional costs
required to effect the restructuring and closure have now been incurred.
The division remains loss making.  In the interim results losses on the
discontinued operation at Ducal were reduced from GBP2.6 million to GBP0.7
million as a result of one-off sales of end of lines from the Ducal
manufacturing operation and the requisite accounting treatment which shows
GBP1.7 million of the loss from the operation under exceptional closure
costs.  There are some indications that the new product lines have gained an
audience but it is too soon to forecast a return to profitability in the
near term.

To See Summary financial information on Silentnight:
http://bankrupt.com/misc/Silentnight_Summary.htm

To See Full Copy of Cash Offer:
http://bankrupt.com/misc/Silentnight_CashOffer.htm


SILENTNIGHT HOLDINGS: Retirement Scheme Has GBP27.1 Mln Hole
------------------------------------------------------------
Silentnight pension schemes

The accounting treatment of the Group's contributions to the defined benefit
pensions scheme currently follows the accounting standard, SSAP24
'Accounting for pension costs'.  A new actuarial valuation of the ongoing
Silentnight Group Defined Benefit Scheme is being undertaken as at December
1, 2002 and this will determine future SSAP24 accounting.  This scheme was
formed by merger of the traditional Silentnight scheme, the Silentnight
Staff Retirement Benefits Scheme, and the former Cornwell Parker scheme.  In
summary, the provisions of the Silentnight Group Defined Benefit Scheme for
future service accrual require increased employee contributions, and produce
reduced benefits for existing members.  Entry to new members is restricted.
The Group has provided alternative money purchase schemes for most new
employees eligible for pension benefits.

Employee contributions to the Silentnight Group Defined Benefit Scheme were
maintained up to November 30, 2002.  The employer's contribution holiday in
the former Cornwell Parker scheme ceased upon the merger as at December 1,
2002.

Employer contributions to the combined scheme have been maintained in full.

The effects of the adoption of FRS17 'Retirement Benefits' as at February 1,
2003, would show a deficit of GBP27.1 million in the merged scheme on the
basis of the assumptions made.  The full adoption of FRS17 would have the
effect of reducing Silentnight Shareholders' funds by GBP21.6 million.

De-listing

As soon as it is appropriate and possible to do so and subject to the Offer
becoming or being declared unconditional in all respects, Soundersleep
intends to apply for cancellation of the listing of Silentnight Shares on
the Official List and cancellation of trading on the London Stock Exchange's
market for listed securities.  It is anticipated that cancellation will,
subject to the Listing Rules, take effect no earlier than 20 business days
following the Offer becoming or being declared unconditional in all
respects.  It is also the intention to re-register Silentnight as a private
limited company under the relevant provisions of the Act.

In addition, on receipt of acceptances of the Offer in respect of 90% or
more of the Silentnight Shares to which the Offer relates, Soundersleep
intends to apply the provisions of sections 428 to 430F of the Act to
acquire compulsorily any Silentnight Shares that are outstanding.

General

The Offer will be subject to the applicable requirements of the City Code.
The formal Offer Document, setting out the details of the Offer, together
with the Form of Acceptance, will be dispatched to Silentnight Shareholders.
This announcement does not constitute an offer or an invitation to purchase
any securities.

The Offer is not being made, directly or indirectly, in or into the USA,
Canada, South Africa, Australia or Japan and this announcement, the Offer
Document and the Form of Acceptance will not be, and must not be, mailed,
forwarded, transmitted or otherwise distributed or sent in or into the USA,
Canada, South
Africa, Australia or Japan and persons receiving this document (including
custodians, nominees and trustees) must not distribute or send them in, into
or from the USA, Canada, South Africa, Australia or Japan.

The availability of the Offer to Silentnight Shareholders who are not
resident in the United Kingdom may be affected by the laws of the relevant
jurisdictions.  Silentnight Shareholders who are not resident in the United
Kingdom should inform themselves about and observe any applicable
requirements.  Further details in relation to overseas shareholders will be
contained in the Offer Document.

Williams de Broe, a company authorized and regulated by the Financial
Services Authority Limited and a member of the London Stock Exchange plc, is
acting exclusively for Soundersleep and no-one else in connection with the
Offer and the preparation and distribution of this document and will not be
responsible to anyone other than Soundersleep for providing the protections
afforded to customers of Williams de Broe or for giving advice in relation
to the Offer, the contents of this document or any transaction or
arrangement referred to in this announcement or in the Offer Document.

Evolution Beeson Gregory, a company authorized and regulated by the
Financial Services Authority Limited and a member of the London Stock
Exchange plc, is acting for Silentnight as financial adviser in relation to
the Offer and is not acting for any other person in relation to the Offer.
Evolution Beeson Gregory will not be responsible to anyone other than
Silentnight for providing the protections afforded to its clients or for
providing advice in relation to the contents of this document or any
transaction or arrangement referred to in this announcement or in the Offer
Document.

Williams de Broe has approved the contents of this announcement solely for
the purposes of section 21 of the Financial Services and Markets Act 2000.

Appendix III to this announcement contains definitions of certain
expressions used in this announcement.

To See Full Copy of Cash Offer:
http://bankrupt.com/misc/Silentnight_CashOffer.htm

CONTACT:  SOUNDERSLEEP
          Nino Allenza
          Phone: 01282 815888

          WILLIAMS DE BROE
          Financial Adviser to Soundersleep
          Joanne Lake
          Phone: 0113 243 1619
          Ian Stanway
          Phone: 0121 609 0050

          SILENTNIGHT HOLDINGS
          Roger Pedder
          Phone: 01458 842626

          EVOLUTION BEESON GREGORY
          Financial Adviser to Silentnight
          Tim Worlledge
          Phone: 020 7071 3000

          Luther Pendragon
          Jon Bennett
          Phone: 020 7518 9100
          Simon Maule
          Phone: 020 7518 9100


SSL INTERNATIONAL: Eric Anstee Leaves Board
-------------------------------------------
On June 24, 2003, SSL announced that Eric Anstee would be leaving the board
as a consequence of his appointment as Chief Executive of the Institute of
Chartered Accountants of England and Wales.

SSL can now confirm that Mr. Anstee has resigned as a non-executive director
with effect from Thursday, September 11, 2003.

                     *****

SSL International recently ended talks regarding a takeover of the company
after it received no formal offer from potential buyers.  SSL, best-known
for making Durex condoms and Scholl sandals, was hit by allegations of
overstating its results in 1999 and 2000.  In July, it announced it was in
talks over a potential takeover offer.


TELEWEST COMMUNICATIONS: Could Announce Debt Restructuring Soon
---------------------------------------------------------------
Telewest is already close to reaching a deal with major bondholders and
shareholders regarding a GBP3.5 billion debt restructuring, according to the
Telegraph.

The ITV and cable operator could announce the deal, which could see it
switch its primary listing to the U.S., this week, the report said.

But the agreement is still to be approved by Telewest's lending banks, and
it might yet be scuttled since some of the banks are known not to favor the
transfer of Telewest's listing from the U.K. to the U.S., and its
headquarters to Delaware.  The banks, whose outstanding loans amount to more
than GBP2 billion, could lose their privileged creditor position if the
group fell under U.S. bankruptcy laws.

Telewest's bondholders are mostly American, and they were behind many of the
terms of the financial restructuring, which provides for their taking 98.5%
of the restructured company.

Telewest's banks are perceived likely to use the plans of the company's
largest bondholder, hedge fund manager Bill Huff, to shift the business'
headquarters and listing to the U.S. to obtain a better deal, possibly by
getting some of their debt paid off more quickly, according to the report.
Bill Huff controls as much as 15% of the bonds.


TRINITY MIRROR: Investor Encouraged by CEO's Turnaround Scheme
--------------------------------------------------------------
A large trinity Mirror investor admitted there was no longer a need for the
U.K. newspaper publisher to sell its national titles because its turnaround
plan is already making progress. The investor, described only as "a large
U.S.-based investment firm that holds more than 5% of the group" by the
Financial Times said CEO Sly Bailey's turnaround plan for the group "made
sense," and that she was "making the right decisions."

The Financial Times said the investor had previously insisted Trinity Mirror
sell the national titles, and that it would consider selling its shares if
Trinity did not begin responding more rapidly to the "slow but predictable
decline" of its national titles.  It also criticized the performance of
Trinity's regional titles.

After a six-month review in August, Mr. Bailey initiated a cost-cutting
program that involves 550 job cuts, the sale of the group's Northern Ireland
newspapers, and the revamp of the management structure at Trinity.

But while saying it was encouraged by the increase in the Daily Mirror's
circulation figures, and Ms. Bailey's drive to improve margins, eradicate
duplicate management structures and improve circulation, the shareholder
also raised the question of whether she will be able to implement the plan.

Daily Mirror's circulation figures fell below the 2 million mark earlier
this year, according to analysts.  The reduction was blamed in a large part
to the tabloid's anti-war stance before and after hostilities erupted in
Iraq.


WESTPOINT STEVENS: Peddles 22 European Dept. Store Concessions
--------------------------------------------------------------
WestPoint Stevens (Europe) Ltd. is selling its retail business that trades
through 22 large department store concessions, primarily in the United
Kingdom and France.  The wholesale operation includes over 600 customer
accounts throughout Europe.
WestPoint Europe customers include Harrods, Harvey Nichols, House of Fraser,
John Lewis, Selfridges and El Cortes Ingles.

According to the Joint Administrators, N. G. Edwards and N. B.
Kahn, the business achieves a GBP17,000,000 turnover and employs
123 personnel.  Other assets that will be sold include finished goods and
work-in-progress stocks as well as exclusive license and distribution
agreements. (WestPoint Bankruptcy News, Issue No. 8; Bankruptcy Creditors'
Service, Inc., 609/392-0900)


YORKSHIRE GROUP: Exits U.S. Specialty Chemicals Business
--------------------------------------------------------
Yorkshire Group PLC announces that its wholly owned subsidiary, Yorkshire
Americas Inc., has agreed the terms of a sale and purchase agreement and
supply agreement with Chemical Technologies LLC.  The transaction forms part
of the company's previously announced debt reduction strategy and net
proceeds will be used to reduce Group indebtedness.

Under the terms of the SPA, Yorkshire Americas will transfer the goodwill of
its specialty chemicals business (principally its customer list and
know-how) and all debtors outstanding for under sixty days at completion in
respect of the chemicals business in exchange for cash consideration of
approximately US$1.4 million (GBP0.9 million), payable on completion.  The
assets the subject of the SPA had a net book value of US$1.1 million (GBP0.7
million) as at August 31, 2003.

Under the terms of the Supply Agreement, Yorkshire Americas will manufacture
and supply specialty chemicals to Chem Tech for an anticipated period of up
to six months.  Yorkshire's direct costs and certain indirect costs will be
covered by Chem Tech during this period.

Yorkshire Americas contains two businesses, a dyes business and the
specialty chemicals business, the subject of this transaction.  The
specialty chemicals business supplies auxiliary chemicals used in the dyeing
processes.  It generated a gross profit of approximately US$4.1 million
(GBP2.6 million) on turnover of US$11.1 million (GBP7.0 million) in the year
ended December 31, 2002.

Since the year end the profitability of the business has declined and,
taking into account the substantial operating costs associated with the
specialty chemicals business, the Board of Yorkshire concluded that it was
in the financial interests of the Group for the business to be sold.

Following the termination of the Supply Agreement, Yorkshire will be left
with certain residual assets relating to the chemicals business from which
it will seek to realize maximum value.

CONTACT:  YORKSHIRE GROUP
          Phone: 0113 244 3111
          Jim Perrie (Group Finance Director)

          HOGARTH PARTNERSHIP
          Nick Denton


* 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                       (101)       1,151       179
Bull SA                   BULP      (760)         893      (130)
Compagnie
   des Machines Bull                (116)         136       (20)
Compagnie Francaise de
   l'Afrique Occidentale             (65)         256        21
Cofidur SA                            (5)         102        19
Dollfus-Mieg & Co.        DOLP         0          187        28
European Computer System            (110)         682       377
Grande Paroisse SA                  (845)         383       107
Pneumatiques Kleber SA               (34)         480       139
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)         307       (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)       3,438       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       (211)         762       (66)
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       (161)         949        41
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 * * *