/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/030919.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Friday, September 19, 2003, Vol. 4, No. 186 Headlines A U S T R I A ADCON TELEMETRY: Korneuburg Court Begins Bankruptcy Proceedings C Z E C H R E P U B L I C CESKE RADIOKUMIKACE: Commission Blocks Voluntary Takeover F R A N C E ALSTOM SA: Thousands of U.K. Jobs Hang in the Balance ALSTOM SA: European Commission Blocks Refinancing Package G E R M A N Y BAYER AG: Class Action Certification Denied in Baycol Litigation BERTELSMANN AG: Plans to Offer Assets to Strike Merger Deal DEUTSCHE BA: Seeks Partner to Prepare for Industry Consolidation DEUTSCHE TELEKOM: Decides to Keep Directories Publisher KIRCHMEDIA GMBH: Sells Stake in Entertainment Unit to Constantin MOBILCOM AG: Sells 20% of Shareholding in Freenet WESTLB AG: Bridgewell Mulls Bid for London-based Brokerage I R E L A N D SCALA SYNTHETIC: S&P Cuts Class B Notes Rating to 'CCC' N E T H E R L A N D S KLM ROYAL: Confirms Alliance Talks with Air France KONINKLIJKE AHOLD: CEO Tells Board to Alter Remuneration Package R O M A N I A TRANSELECTRICA SA: Long-Term Ratings Equalized at 'BB-' S W I T Z E R L A N D SWISS INTERNATIONAL: Changes Winter Timetable ZURICH FINANCIAL: Issues US$1 Billion Subordinated Notes U N I T E D K I N G D O M ABBEY NATIONAL: Sells Italian Bank to UniCredito for GBP46.2 Mln ABERDEEN INTERNATIONAL: Winds Up Latin American Fund ABERDEEN INTERNATIONAL: Winds Up Frontier Markets Fund CORUS GROUP: Mulls Asset Disposals to Fund Restructuring ELDRIDGE POPE: C.I. Traders Withdraws Bid MARLON INSURANCE: Court Sanctions Scheme of Arrangement MYTRAVEL GROUP: Issues Shares to Replace Bonds Due 2007 ROYAL MAIL: Postmen Say No to Union-endorsed National Strike THISTLE HOTELS: New Owners Sell Thistle Islington, London Ryan WORLD TRAVEL: Has Until Oct. 31 to Settle Liabilities or Go Bust ********* ============= A U S T R I A ============= ADCON TELEMETRY: Korneuburg Court Begins Bankruptcy Proceedings --------------------------------------------------------------- The court of Korneuburg, Austria commenced bankruptcy proceedings for Adcon Telemetry AG on September 16, 2003 under file number GZ 36S91/03d. Furthermore, Dr. Matthias Schmidt has been appointed estate administrator. ***** Adcon Telemetry AG, which is listed in the FWBs Prime Standard segment filed for bankruptcy at the commercial court of Korneuburg, Austria on Monday. The original plan, presented by the Executive Board, to show a positive EBIT in 2004 and to achieve the operative turnaround of the company cannot be maintained. Thus, CEO Felix Primetzhofer, who was appointed by the Supervisory Board June 16, 2003, cannot justify a going concern for the company. Additionally occurring risks, a deterioration in business development as well as expiring frame contracts led to lower sales, additional costs and thus to significantly higher financing needs than originally anticipated. The reasons for the negative outlook (a) A letter of comfort issued for French subsidiary Adcon RF Technology SA could bear significant financial risks for Adcon Telemetry AG. (b) A significant deviation in planned U.S. business as well as lots of products in stock at our distributors substantially deteriorate the outlook for 2003 and 2004. (c) Expiring frame contracts without the chance of renewal or new business. (d) Imminent litigations with foreign companies CONTACT: ADCON TELEMETRY AG DI Felix Primetzhofer Phone: 0043 (0)2243 38280-0 E-mail: investor-relations@adcon.at Home Page: http://www.adcon.com =========================== C Z E C H R E P U B L I C =========================== CESKE RADIOKUMIKACE: Commission Blocks Voluntary Takeover --------------------------------------------------------- On September 15, 2003, the Commission issued a decision whereby it declined the request for granting the consent with contents of the voluntary takeover bid destined for the shareholders of the Ceske radiokomunikace, a.s., (ERa) shares. The Commission conducted the administrative proceeding by virtue of the proposal of the company Bivideon B.V., which is the majority shareholder of the ERa. The request for granting the consent with the contents of the takeover bid was submitted to the Commission on September 4, 2003. The Commission has assessed the formalities of the content of the takeover bid and the expert opinion, enclosed to document reasonability of the price to the value of the shares. The Commission found major deficiencies in the expert opinion. These deficiencies have determined, that the price of CZK245 per share cannot be considered reasonable. Hence, the request for granting the consent with the contents of the takeover bid has been declined. ***** In July, Bivideon withdrew its application for SEC approval of a public takeover offer to all ordinary shareholder of Ceske Radiokomunikace. It said that the reason for the withdrawal of the Application is to allow Bivideon B.V. to address certain technical aspects of the settlement process of the Offer and the opportunity to submit an additional expert valuation to support the offer. Ceske Radiokomunikace posted a net loss of CZK108 million last year, down from a profit of CZK809 million in 2001. The company expects to return to profitability this year. CONTACT: CZECH SECURITIES COMMISSION Washingtonova 7 P.O. Box 208 111 21 Praha 1 Phone: 221 096 111 Fax: 221 096 110 E-mail: podatelna@sec.cz =========== F R A N C E =========== ALSTOM SA: Thousands of U.K. Jobs Hang in the Balance ----------------------------------------------------- Ten thousand British jobs were put at risk of being axed as the European Commission decided Wednesday to block the rescue plan of the French government for engineering group, Alstom. The Commission is currently investigating the EUR3.1 billion in subsidies that the government has already allegedly handed Alstom. The plan could give the government nearly one-third ownership of the company. Alstom has been hit by cost overruns on key projects, accounting irregularities at its U.S. operation, and the bankruptcy of a major client. The company's share price has plunged 90%, and it has shed thousands of jobs over the past two years. It received a massive order worth over GBP100 million to build new Jubilee Line rolling stock, but it plans to build these trains in France, Germany or Spain. An Alstom spokesman insisted the executives intend to carve out a solution, but a source close to the state said the government had already run dry of ideas, according to The Times. ALSTOM SA: European Commission Blocks Refinancing Package --------------------------------------------------------- A refinancing package agreed by ALSTOM, its banks and the French State was announced on August 6, 2003. This plan included the French State entering into the company's share capital and providing a long-term loan. The European Commission on Wednesday announced the opening of an in-depth enquiry and its decision in principle to prohibit the French State from participating in the capital increase or from providing the long-term loan. ALSTOM's Board of Directors met Wednesday evening to review the consequences of this situation. It said it will issue a press release following the Board meeting. ALSTOM has requested that trading in its shares be suspended. ***** The prohibition covers the proposed EUR300 million- capital injection and the EUR300 million- loan that France plans to grant the troubled engineering group. CONTACT: ALSTOM SA E. Chatelain, Investor Relations Phone: +33 1 47 55 25 33 E-mail: investor.relations@chq.alstom.com ============= G E R M A N Y ============= BAYER AG: Class Action Certification Denied in Baycol Litigation ---------------------------------------------------------------- Bayer said that it is pleased that the Federal District Court in Minneapolis, Minnesota found in favor of the company and denied plaintiff's motion to certify a nationwide class action in the Baycol litigation. Bayer opposed certification of a nationwide class for Baycol. The company argued that certification of a class action was not appropriate because the claims of the possible class members involve too many diverse and individual issues. Some of these include differences in state law, medical histories, Baycol dosages and Baycol use with other drugs. In addition, Bayer believes that a class action would have proven to be unmanageable. Bayer will continue its strategy of analyzing the specific circumstances of each case and the nature of each claim. It will also continue to pursue its policy of trying to agree on fair compensation for anyone who experienced serious side effects from Baycol on its own initiative and without acknowledging any legal liability. Bayer has successfully settled more than 1342 cases in the United States to date. In cases where an examination of the facts indicates that Baycol played no part in the patient's medical situation, or where a settlement is not achieved, Bayer will continue to defend itself vigorously. Bayer believes this is the most fair and reasonable manner in which to handle the litigation. BERTELSMANN AG: Plans to Offer Assets to Strike Merger Deal ----------------------------------------------------------- German media group Bertelsmann is preparing a proposal that could usher a 50-50 merger of Warner Music and BMG, the recorded music arm of Bertelsmann, according to the Financial Times. It has plans of offering AOL Time Warner music publishing assets or cash worth more than US$100 million, the report said. The operation could be integrated into the U.S. group's Warner Chappell publishing business. But AOL could only realize the value from BMG's publishing assets if the enlarged Warner Chappell business is sold. The report emerged after the expiry of exclusive negotiations between AOL Time Warner and Bertelsmann. EMI, who is believed to have sufficient banking facilities in place to make a cash offer for control of Warner Music, could now enter the scene. A deal, though, is thought unlikely because of potential disagreements regarding the sharing of the venture. Bertelsmann's debt ballooned to an estimated EUR4 billion after Zomba exercised a 'put' option worth US$3 billion for Bertelsmann to acquire the remaining shares in Zomba last year. DEUTSCHE BA: Seeks Partner to Prepare for Industry Consolidation ---------------------------------------------------------------- German millionaire Hans Rudolf Woehrl, new owner of Deutsche BA, said the airline is open to any form of cooperation, suggesting Air Berlin and Germania would fit well with the low-cost airline. AFX News, citing a pre-published article of Focus Money magazine, said Mr. Woerhl believes the budget airline industry will consolidate in the future. He projected a shakeout of the industry in the long-term, saying: "The airlines, which first form a strong alliance, will later set the tone." German airline Deutsche BA is competing against a growing number of no-frills airlines in Germany and Europe. It has been loss-making even before British Airways sold the airline to Mr. Woerhl. Formed in 1992, Deutsche BA has yet to turn a profit and has accumulated losses of GBP250 million. DEUTSCHE TELEKOM: Decides to Keep Directories Publisher ------------------------------------------------------- Deutsche Telekom has resolved not to sell its subsidiary DeTeMedien. The company will not pursue any offer made for the sale. Deutsche Telekom plans to henceforth continue its cooperation with publishers to develop additional services around printed and electronic telephone books. This will have no repercussions on the realization of the group's financial targets by the end of the year. Together with the publishing community, DeTeMedien, a wholly owned subsidiary of Deutsche Telekom, edits and publishes all telecommunications directories for Deutsche Telekom services. It publishes material in a variety of technical media formats, e.g. more than 100 million printed copies and directory enquiry information on CD-ROM, while offering the corresponding Internet portals. The best-known DeTeMedien directories are undoubtedly "Das Telefonbuch" (the telephone book), Die "GelbenSeiten" (the Yellow Pages) and "Das Ortliche" (local directory). KIRCHMEDIA GMBH: Sells Stake in Entertainment Unit to Constantin ---------------------------------------------------------------- Constantin Film AG (ISIN DE 000 5800809) has concluded a contract about the acquisition of 61% of the shares in KirchMedia Entertainment GmbH with Taurus Produktion GmbH, a wholly owned subsidiary of the insolvent company KirchMedia GmbH & Co. KGaA. After the Supervisory Board of Constantin Film AG had agreed to the acquisition unanimously, all necessary approvals were issued by Dr. Michael Jaffe, the official receiver for KirchMedia, on September 16, 2003, thereby making the acquisition legally effective. Fred Kogel, founder shareholder of KirchMedia Entertainment GmbH, is not selling any shares in the context of the transaction and will continue to own a 30% interest in the company. The management of KirchMedia Entertainment GmbH holds the remaining 9% of the company shares. The purchase price for 61% of the shares in KirchMedia Entertainment GmbH amounts to EUR4.5 million. Constantin Film AG was supported by the international auditing company Ernst & Young AG in the valuation of the company and the determination of the purchase price. Since it was established in 2001, KirchMedia Entertainment GmbH has developed into one of the leading show and entertainment production companies on the German market. Its productions include the successful series "Das Strafgericht" for RTL, the courtroom show "Richter Alexander Hold" and the fiction documentary series "Lenben und Partner" (both for SAT.1) -- all of them programs that are market leaders in their respective slots. With its stable sales generated by TV entertainment the production portfolio of KirchMedia Entertainment GmbH is an ideal addition to the fiction production range of Constantin Film AG. KirchMedia Entertainment GmbH will in future be operating as Constantin Entertainment GmbH. Dr Daniel Wiest, Finance and Investor Relations Director: "We are delighted that we have been able to add a very attractive and promising area to the Constantin Group operations by making this acquisition and we are convinced that the directors Ulrich Brock, Otto Steiner and Onno Muller as well as the staff of Constantin Entertainment will make a valuable contribution to the further strengthening and expansion of the leading position Constantin Film AG holds among German media companies." CONTACT: CONSTANTIN FILM Corporate Communications Frauke Allstadt Phone: +49 89-3860 9-271 Fax: +49 89-3860 9-196 E-mail: frauke.allstadt@constantin-film.de Investor Relations Yara Kes Phone: +49 89-3860 9-172 Fax: +49 89-3860 9-196 E-mail: kes@constantin-film.de MOBILCOM AG: Sells 20% of Shareholding in Freenet ------------------------------------------------- Following a decision by the company's executive and supervisory boards, MobilCom AG, Budelsdorf, is to reduce its 73% holding (13.65 million shares) in freenet.de AG, Hamburg, by up to 20% (3.75 million shares) at short notice. After this transaction, to be carried out by Deutsche Bank in accelerated bookbuilding, MobilCom AG will maintain its majority holding in freenet AG with at least 52.89% (9.90 million shares) in the long term. MobilCom AG will use the funds generated by this sale to completely clear its debts to the sum of EUR117.6 million. Any returns in excess of this sum will be invested in expanding the company's core business as a mobile telephony service provider. This marks the final completion of restructuring at MobilCom AG. By selling these shares, MobilCom has achieved several goals in one: The company is free of debt, it maintains a majority holding in freenet, and freenet stock is rendered more attractive by increased freefloat. WESTLB AG: Bridgewell Mulls Bid for London-based Brokerage ---------------------------------------------------------- Bridgewell, the investment bank currently trying to expand, might bid for WestLB's London-based brokerage Panmure Gordon, according to the Telegraph. The report quoted Bridgewell chief executive, Ian Dighe, saying: "We look at all opportunities to accelerate the growth of our business. We have always admired the Panmure people and the Panmure franchise." Bridgewell is believed to have already sought out possible backers. WestLB is also reported in talks with the management of Panmure regarding a buyout, but it is believe to prefer a trade sale. Panmure's key staff, however, has the power to block any transaction. Bridgewell is poised to benefit from the brokerage's strong presence in the drinks and transport sector, where it has little presence. But it might get competition from rivals such as Teather and Greenwood. ============= I R E L A N D ============= SCALA SYNTHETIC: S&P Cuts Class B Notes Rating to 'CCC' ------------------------------------------------------- Standard & Poor's Ratings Services said it lowered its credit rating on the class B floating-rate asset-backed notes issued by Scala Synthetic 3 PLC, an SPE, to 'CCC' from 'CCC+'. At the same time, the rating on the class A notes was affirmed. The rating actions follow negative credit migration in the pool of reference names, which has led scenario loss rates to rise to levels incommensurate with the rating on the class B notes. Credit enhancement was, however, sufficient to maintain the rating on the class A notes, despite the decreased credit quality of the pool. The reference portfolio at closing was an EUR805 million static pool comprising 80 reference bonds and loans issued by investment-grade corporates in the U.S., western Europe, and Australia. Defaults during the life of the transaction have reduced subordination available to the rated notes by EUR24.25 million. The ratings on Scala Synthetic 3's notes continue to reflect the credit quality of the reference credits, the new level of credit enhancement provided by subordination, and the ability of IntesaBci SpA (A-/Stable/A-2) to meet its payment obligations as counterparty under the credit default swap. ===================== N E T H E R L A N D S ===================== KLM ROYAL: Confirms Alliance Talks with Air France -------------------------------------------------- KLM Royal Dutch Airlines and Air France confirm that detailed discussions between the two companies are taking place in view of an intensive cooperation, concurrently with KLM's entry into the SkyTeam alliance. These negotiations are in an advanced stage. However, critical points are still under discussion between the parties and further communication will follow as soon as an agreement is expected to be reached. ***** KLM Royal negotiated with Air France regarding the tie-up and a possible entry into the latter's SkyTeam alliance late in August. This follows failed merger talks with British Airways and Alitalia SpA. The Amsterdam-based carrier reported a EUR416 million ($470 million) loss for the year ended in March. Air France, meanwhile, reported a profit for the three months through June and forecast a profit before interest and tax for the fiscal year ending in March 2004. "An alliance would drive KLM stock higher as Air France is a good company and there are lots of synergies between the two," says Eric Raets, who helps manage US$46 billion at KBC Bank N.V. in Brussels and holds about 40,000 KLM shares. KONINKLIJKE AHOLD: CEO Tells Board to Alter Remuneration Package ---------------------------------------------------------------- Anders Moberg, President and CEO of Ahold said Wednesday: "I have been concerned by the recent public debate in the Netherlands caused by the terms of my remuneration package. I have listened to the criticism and am aware of its negative impact on the company and its associates, and I would like to respond. "I understand that my current severance benefits and my guaranteed bonus are considered unacceptable in the Dutch environment, so I have taken the decision to modify both. I have today advised the Ahold Supervisory Board and they have accepted that any severance benefits, should they be necessary, will be established on the basis of all the relevant circumstances prevailing at the time. So, there will be no guaranteed severance compensation. In addition, we also agreed that my bonus compensation will be fully performance-related and will not contain any guaranteed elements. "I believe that these measures are in the interests of our company as a whole, all stakeholders, and everyone interested in the continuity of Ahold. "In April 2003, when I decided to accept the position of CEO of Ahold, there was very little financial or other information that could be provided at the time to help guide a personal decision to accept a very great risk. Without such information, I felt that there was the distinct possibility that events which happened before my arrival would prevent me from fulfilling my duties as CEO. In addition, I felt that my reputation as a successful business leader could also be damaged. "Being at Ahold over the past months, I have gained more insight into the company. No one should underestimate the magnitude of the challenge in turning this company around. But it is my strong belief and my commitment that by working together with my associates we can get the company back to where it could be, should be and will be. "I trust that my decision on the remuneration package will bring an end to the public debate. Please give me the opportunity to devote my resources and energy to the task for which I have been hired. This task is to return Ahold to prosperity, to create value for our customers and our shareholders and to create a company of which our associates can be proud. "A healthy company is in everyone's interests." Anders Moberg President and CEO Ahold CONTACT: ROYAL AHOLD N.V. P.O. Box 3050 1500 HB Zaandam Netherlands Phone: +31 (0)75 659 57 20 Fax: +31 (0)75 659 83 02 ============= R O M A N I A ============= TRANSELECTRICA SA: Long-Term Ratings Equalized at 'BB-' ------------------------------------------------------- Standard & Poor's Ratings Services said it raised its long-term foreign currency corporate credit rating on Romanian national transmission grid monopoly C.N. Transelectrica SA to 'BB-' from 'B+'. At the same time, Standard & Poor's affirmed its 'BB-' long-term local currency rating on Transelectrica. The outlook is positive. The rating actions follow the upgrade of the ratings on the Republic of Romania (foreign currency BB/Positive/B; local currency BB+/Positive/B; see "Romania Long-Term Ratings Raised to 'BB' FC and 'BB+' LC; Outlook Still Positive", published on Sept. 17, 2003, on RatingsDirect, Standard & Poor's Web-based credit analysis system). Standard & Poor's believes that, after a second upgrade of the sovereign foreign currency rating in 2003, Transelectrica's ability to service its foreign currency-denominated debt is no longer constrained at the 'B+' level. The foreign currency rating was therefore equalized with the local currency one. The ratings on Transelectrica reflect its strong business position as a strategically important state-owned monopoly electricity transmission grid operator and a supportive regulatory environment. These strengths are balanced, however, by exposure to Romania's still-weak transition economy environment, the company and the regulators' short operating track records, significant debt-funded investment needs, and continuing payment collection problems. Standard & Poor's ratings on Transelectrica do not factor in any significant government support and primarily reflect the company's stand-alone credit quality. Transelectrica's new debt is not expected to be covered by government guarantees, although some of its existing debt is. The positive outlook reflects Standard & Poor's expectation that improvement in Romania's economic and political environment could have a positive effect on Transelectrica's business profile. Evidence of the elimination of payment collection problems would be required before the rating could be raised, however. ===================== S W I T Z E R L A N D ===================== SWISS INTERNATIONAL: Changes Winter Timetable --------------------------------------------- SWISS will no longer operate flights to Washington D.C. once the winter timetable comes into effect on October 26, 2003. Despite its best efforts, SWISS has not been able to find a partner for the Zurich - Washington route following the announcement of its new route network last July. On the other hand, a reassessment of the Middle East market now means that flights to Jeddah will be maintained at a rate of 3 a week with the start of the winter timetable. The newly revised route network will still allow SWISS to serve all the major business destinations throughout the world. In North America, SWISS now operates daily non-stop flights from Zurich to New York JFK (twice daily - including one non-stop flight from Geneva), New York Newark, Chicago, Boston, Miami, Los Angeles and Montreal. As from October 26, 2003 (start of the winter timetable), a fleet of 79 aircraft will serve 71 destinations. SWISS will be contacting any passengers who have already booked a flight to Washington departing after October 25. Alternative fights will be arranged. Contrary to what was originally announced, Jeddah will remain in the SWISS route network. When the winter timetable comes into effect, SWISS will operate three flights a week to this destination via Riyadh, thereby ensuring optimum coverage of the market in Saudi Arabia. ***** Swiss was formed in April 2002 from the remains of failed Swissair and the regional carrier Crossair with a CHF2.7 billion private-public cash drive. It is going through its biggest restructuring ever and has slashed its fleet and workforce by about a third and cutting route network by over a quarter. CONTACT: SWISS INTERNATIONAL Corporate Communications P.O. Box, CH-4002 Basel Phone: +41 (0) 848 773 773 Fax: +41 61 582 35 54 E-mail: communications@swiss.com Homepage: http://www.swiss.com ZURICH FINANCIAL: Issues US$1 Billion Subordinated Notes -------------------------------------------------------- Zurich Financial Services Group (Zurich) announced its intention to raise approximately US$1 billion equivalent through the issuance of subordinated debt (hybrid capital) in the Euro and Sterling markets. The debt will be issued via Zurich Insurance Company's Euro Medium Term Note Program. Size and terms of the transaction will be finalized following marketing to investors and subject to market conditions. Application will be made to list the notes on the Luxemburg Stock Exchange. Zurich has appointed Barclays Capital, Citigroup, Credit Suisse First Boston and Deutsche Bank as Joint Bookrunners for the transaction, with Barclays Capital acting as Structuring Advisor. The funds raised will strengthen the Group's capital base and will be used to refinance debt. Due to the subordinated nature and long-term structure of these funds, regulators and rating agencies will count them towards equity. By taking advantage of historically low long-term interest rates, the Group will be able to lower its weighted average cost of capital. Patrick O'Sullivan, Group Finance Director of Zurich Financial Services, said: "The transaction is a further step in Zurich's ongoing commitment to strengthen its long-term capital base in a non-dilutive and shareholder friendly way." Zurich Financial Services is an insurance-based financial services provider with an international network that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in more than 50 countries and employs about 64,000 people. CONTACT: ZURICH FINANCIAL Mythenquai 2 P.O. Box 8022 Zurich Switzerland Phone: +41 (0)1 625 21 00 Fax: +41 (0)1 625 26 41 Home Page: http://www.zurich.com =========================== U N I T E D K I N G D O M =========================== ABBEY NATIONAL: Sells Italian Bank to UniCredito for GBP46.2 Mln ---------------------------------------------------------------- Abbey National plc (LSE: ANL.L) has entered into an agreement to sell the mortgage business of Abbey National Bank Italy to UniCredit Banca per la Casa SpA, a wholly owned subsidiary of UniCredito Italiano SpA. As at June 30, 2003, the mortgage business of Abbey National Bank Italy had total assets of GBP2.6 billion (EUR3.6 billion). UniCredit Banca per la Casa SpA will pay a cash premium upon completion of GBP46.2 million (EUR65.5 million) for total projected mortgage assets of GBP3 billion (EUR4.3 billion) at that time. The deal is subject to approval by the Bank of Italy and is expected to be completed before year-end. Abbey National Bank Italy is a specialist mortgage provider that enables both Italian and non-Italian nationals to purchase, through direct and intermediary sales channels, residential mortgages on properties in Italy. As at August 31, 2003, Abbey National Bank Italy employed approximately 250 people. Headquartered in Milan, it has 14 branches located in cities throughout the country. As announced at the Abbey National plc annual results presentation in February 2003, the company is focusing solely on providing personal financial services in the U.K. Abbey National Bank Italy does not have a natural position within the new strategy and is therefore expected to prosper more readily under the ownership of UniCredit Banca per la Casa SpA. In the financial year to December 2002, the combined pre-tax profit of Abbey National Bank Italy and Abbey National France was GBP8 million (EUR11.3 million). ***** Hawkpoint (financial) and Bonelli Erede Pappalardo (legal) advised Abbey National on this transaction. As at August 31, Abbey National Italy had branches in Milan, Torino, Genova, Bergamo, Padova, Bologna, Florence, Rome, Naples and Bari. CONTACT: ABBEY NATIONAL PLC Rohith Chandra-Rajan, Investor Relations Phone: +44 (0) 20 7756 4184 E-mail: rohith.chandra-rajan@abbeynational.co.uk ABERDEEN INTERNATIONAL: Winds Up Latin American Fund ---------------------------------------------------- The Board of Directors of the Aberdeen International Fund wish to notify Shareholders of the Latin American Fund that, in accordance with Article 13.03 of the Articles of Association of the company, all outstanding shares in the Latin American Fund will be compulsorily redeemed on October 17, 2003. The Directors of the company regret the need for this decision, but it was taken because throughout the six week period commencing on July 18, 2003 and ending on August 29, 2003 the aggregate value of the Fund was less than US$15,000,000. Under Article 13.03 of the Articles of Association of the company, the Directors have the power to compulsorily redeem all participating shares when the fund value falls below US$15,000,000 for a six-week period. The actual net asset value of the Fund on August 29, 2003 did not exceed $2,880,000. The size of the Fund has diminished to the point where it will be difficult to provide an appropriate level of diversification of the investment portfolio. In addition, the fixed running costs of the Fund may start to have an adverse effect on the performance of the share price and it is not anticipated that sufficient new monies will be received by the Fund to overcome this in the short term. For these reasons the Directors have determined that the shares in the Fund will be compulsorily redeemed on October 17, 2003. Shareholders may elect to reinvest the proceeds of this redemption (free of initial or conversion charge), in the Emerging Market Fund of the company. The Emerging Markets Fund was formed as a result of a name change and a change in investment objectives of the Turkish Opportunities Fund following shareholder approval on September 5, 2003. Shareholders in the Latin American Fund of the company will have the opportunity to reinvest their holdings in the Emerging Markets Fund when the Emerging Markets Fund opens on October 17, 2003. To be effective this instruction form must be received by the Administrator no later than 12 Noon (Dublin time) on October 16, 2003. Copies of the Prospectus of the company, the Key Features Documents and the latest Fund Factsheets are available upon request free of charge from the Administrators' office, BNP Paribas Security Services Limited (formerly known as Cogent Investment Operations Ireland Limited), 6 George's Dock, IFSC Dublin 1, Ireland, (Tel: 00 353 1 670 2115). Shareholders are advised to consult these documents before deciding whether to reinvest in the Emerging Markets Fund. CONTACT: ABERDEEN INTERNATIONAL FUND PLC Contact: Mr. Leon Thomas Phone: (+44 020) 7463 6321 NCB STOCKBROKERS LIMITED Contact: Ms Tara O' Grady Phone: (+3531) 611 5907 ABERDEEN INTERNATIONAL: Winds Up Frontier Markets Fund ------------------------------------------------------ The Board of Directors of the Aberdeen International Fund wish to notify Shareholders of the Frontier Markets Fund that, in accordance with Article 13.03 of the Articles of Association of the company, all outstanding shares in the Frontier Markets Fund will be compulsorily redeemed on October 17, 2003. The Directors of the company regret the need for this decision, but it was taken because throughout the six week period commencing on July 18, 2003 and ending on August 29, 2003 the aggregate value of the Fund was less than US$15,000,000. Under Article 13.03 of the Articles of Association of the company, the Directors have the power to compulsorily redeem all participating shares when the fund value falls below US$15,000,000 for a six-week period. The actual net asset value of the Fund on August 29, 2003 did not exceed $5,870,000. The size of the Fund has diminished to the point where it will be difficult to provide an appropriate level of diversification of the investment portfolio. In addition, the fixed running costs of the Fund may start to have an adverse effect on the performance of the share price and it is not anticipated that sufficient new monies will be received by the Fund to overcome this in the short term. For these reasons the Directors have determined that the shares in the Fund will be compulsorily redeemed on October 17, 2003. Shareholders may elect to reinvest the proceeds of this redemption (free of initial or conversion charge), in the Emerging Market Fund of the company. The Emerging Markets Fund was formed as a result of a name change and a change in investment objectives of the Turkish Opportunities Fund following shareholder approval on September 5, 2003. Shareholders in the Latin American Fund of the company will have the opportunity to reinvest their holdings in the Emerging Markets Fund when the Emerging Markets Fund opens on October 17, 2003. To be effective this instruction form must be received by the Administrator no later than 12 Noon (Dublin time) on October 16, 2003. Copies of the Prospectus of the company, the Key Features Documents and the latest Fund Factsheets are available upon request free of charge from the Administrators' office, BNP Paribas Security Services Limited (formerly known as Cogent Investment Operations Ireland Limited), 6 George's Dock, IFSC Dublin 1, Ireland, (Tel: 00 353 1 670 2115). Shareholders are advised to consult these documents before deciding whether to reinvest in the Emerging Markets Fund. CONTACT: ABERDEEN INTERNATIONAL FUND PLC Contact: Mr. Leon Thomas Phone: (+44 020) 7463 6321 NCB STOCKBROKERS LIMITED Contact: Ms Tara O' Grady Phone: (+3531) 611 5907 CORUS GROUP: Mulls Asset Disposals to Fund Restructuring -------------------------------------------------------- Corus board is considering disposing non-core assets, amounting to as much as 10% of the company's GBP6 billion-a-year steel sales, according to the Financial Times. The plan could be announced as early as next week during the presentation of the Dutch steelmaker's interim results, the report said. The assets believed likely to be sold include its large Teesside plant in the U.K., and its small U.S. steel operation. The U.K. operation, which employs 2,000 staff, had been earmarked as a stand-alone unit selling unfinished "slab" steel to other steel companies. The sale could raise more than GBP100 million, and could lower the amount the company might have to seek through a rumored rights issue next week or through bank loans or bond issues. Corus needed the amount to help pay GBP250 million of redundancies and investments required in the U.K. part of the company over the next two years. Corus, whose stock market capitalization went down to less than GBP1 billion in the past year, decided in April to restructure its operation to return the U.K. side of the business to profitability. ELDRIDGE POPE: C.I. Traders Withdraws Bid ----------------------------------------- On August 26, 2003 the Board of C.I. Traders Limited made an announcement in respect of Eldridge Pope to confirm that discussions had taken place with a view to exploring whether acceptable terms could be agreed upon for a possible offer by C.I. Traders for Eldridge Pope. The announcement went on to state that active discussions were not taking place at that time. After consideration of various factors including the result of the tender offer, the content of the recent shareholder meeting at which senior management presented their strategy and following further evaluation the Board wishes to state that C.I. Traders has no present intention of making an offer for Eldridge Pope. The Board does however reserve the right to change this view in the event of a third party partial or full offer being made for Eldridge Pope or in the event of C.I. Traders securing an Eldridge Pope board recommendation for an offer from C.I. Traders on terms acceptable to C.I. Traders. The Board also reserves the right at the same time to change this view in the event that Eldridge Pope announces a rights issue or other public funding or seeks to enter into a transaction that requires the approval of shareholders in a general meeting. ***** Eldridge owns 121 managed and 54 tenanted pubs, mostly in its heartland of Devon, Dorset and Hampshire. Earlier this year Michael Johnson was ousted as chief executive, after takeover talks with a number of groups collapsed. MARLON INSURANCE: Court Sanctions Scheme of Arrangement ------------------------------------------------------- Notice is hereby given that, by three Orders dated July 25, 2003 made in the High Court of Justice in England and Wales in the matter of Marlon Insurance Company Limited (formerly Skandia Marine Insurance Company (U.K.) Limited and Vesta (U.K.) Insurance Company Limited), The National Insurance & Guarantee Corporation Limited (formerly The National Insurance & Guarantee Corporation PLC), Riverstone (Stockholm) Insurance Corporation (Publ) (formerly Odyssey Re (Stockholm) Insurance Corporation (Publ) and Skandia International Insurance Corporation (Publ), the schemes of arrangement proposed to be made between the Companies and their Scheme Creditors (as defined in the Scheme) pursuant to section 425 of the Companies Act 1985, which were voted on and approved by Scheme Creditors during the meetings held on July 10, 2003, were sanctioned. A copy of the Scheme was lodged with the registrar of companies on August 14, 2003, and the Scheme became effective on that date. Scheme Creditors are required to submit a completed Claim Form by November 12, 2003 or will be adjudged to have a claim valued at nil. Returned Claim Forms must reach PricewaterhouseCoopers on or before this date. Should you have any questions regarding this Notice, please address them to Fiona Christie at: PricewaterhouseCoopers LLP, Plumtree Court, London EC4A 4HT, United Kingdom (Phone: +44 (0))20 7583 5000, Fax: +44 (0)20 7212 6316). MYTRAVEL GROUP: Issues Shares to Replace Bonds Due 2007 ------------------------------------------------------- Application has been made to the London Stock Exchange and the U.K. Listing Authority of the FSA for the Block Listing of 49,490,060 Ordinary Shares of 10p each fully paid, ranking pari passu with the existing Ordinary shares, to the Official List. Some 24,745,030 shares will be issued in connection with the Conversion of 7% Subordinated Convertible Bonds due 2007. Another 24,745,030 shares will be issued in connection with the Exercise of Warrants to subscribe for Ordinary Shares of 10p each. ***** Bondholders of MyTravel recently extended until January 2007, the repayment of one of the tour operator's significant outstanding loan -- GBP222 million worth of convertible bonds that will come due next year. The deal was the final piece of MyTravel's rescue refinancing. MyTravel issued a profits warning in August saying: "In the medium term, the group's earnings and cash flows will remain subject to significant risk through its high fixed cost structure and high levels of indebtedness." While saying that the deal would give it "time and space" to focus on implementing its turnaround plan, it also cautioned, "there are still challenges ahead. The trading environment is still difficult." ROYAL MAIL: Postmen Say No to Union-endorsed National Strike ------------------------------------------------------------ Royal Mail postmen voted against a national strike to demand an increase in pay, defying the recommended yes vote of the leaders of the Communication Workers' Union. Talks between Royal Mail management and Communication Workers Union failed to end a deadlock Monday night. Royal Mail said it offered a pay rise worth 14.5% over 18 months, which would raise every postal worker's basic wage to GBP300 per week. The union says the offer amounts to only 4.5% upfront money with 3% paid in October and 1.5% next April, and still tied to productivity. It could also lead to 30,000 redundancies. The union wants an immediate 8% rise. But the ballot held following the failure of the talks showed only 49.1% of the 160,000 members are in favor of staging the industrial action. Some union executives blamed the negative result due to "management pressure" on workers and "propaganda" spread by Royal Mail, according to the Telegraph. Without the fear of a national industrial strike, Royal Mail said it would now concentrate on "completing the company's turnaround." THISTLE HOTELS: New Owners Sell Thistle Islington, London Ryan -------------------------------------------------------------- The new Singaporean owners of Thistle Hotels are selling two of the properties of the hotel operator at a combined price of GBP60 million. According to The Times, investment firm BIL decided to sell the 375-room Thistle Islington and the 211-room London Ryan, near King's Cross, after a strategic review of Thistle's portfolio ran by BIL chief operating officer Arun Amarsi. Mr. Amarsi, who replaced Ian Burke as Thistle's chief executive shortly after completion of the takeover in May, is believed to be tidying up the company by selling its poorer quality properties in an attempt to make the Thistle brand more attractive to suitors when BIL eventually decides to realize its investment. BIL is thought to have appointed Christie & Co, the leisure property specialist, to seek buyers for the Thistle properties, the report said. Formerly Brierley Investments Limited, BIL launched a takeover bid for the troubled hotel, which suffered a protracted downturn in trading caused by factors such as foot-and-mouth disease, the September 11 attacks and the Iraq war. WORLD TRAVEL: Has Until Oct. 31 to Settle Liabilities or Go Bust ---------------------------------------------------------------- At Wednesday's AGM, John Biles, Chairman, made these statement: "As shareholders will be aware, the company has now withdrawn completely from the travel industry and is now a shell. We are also left with liabilities from the past, which we have agreed to settle for approximately GBP550,000 if that settlement can be made by October 31, 2003. "As I said in my statement accompanying the annual accounts, agreement has been reached with Culver for the acquisition of Wanbase. Unfortunately it has not been possible to finalize the documentation for this transaction prior to Wednesday's meeting. "We have also been examining a number of other acquisition opportunities but I am disappointed that negotiations have not yet reached any agreement. "We have a very tight deadline of October 31 to meet to get the funding necessary to enable us to continue. All I can do is to assure shareholders that my colleagues and I will do our best to find a suitable solution." Outcome of meeting All the resolutions put to the meeting were duly passed. The meeting was then adjourned to October 16, 2003 when resolutions 3, 7, 8 and 9 set out in the notice of the annual general meeting will be considered. These resolutions relate to the adoption of a new employee share option scheme, a change of the company's name, an elimination of the amount standing to the credit of the share premium account and the acquisition of Wanbase respectively. At the Extraordinary General Meeting which followed the AGM shareholders resolved pursuant to the provisions of S142(1) of the Companies Act 1985 to take no further steps to deal with the Company's financial situation. Consolidation of ordinary shares Further to resolutions 4 and 5 duly passed at the AGM, the company's issued ordinary shares are to be consolidated on the basis of 1 New Ordinary Share in World Travel for every 20 existing ordinary shares held. Dealings in the New Ordinary Shares are expected to commence on September 18, 2003. New share certificates are expected to be dispatched to holders of shares in certificated form on or about September 24, 2003. Conversion of Loan Stock As highlighted in the company's announcement of its preliminary results for the year ended December 31, 2002, the holders of the outstanding loan stock in the company have agreed to accept New Ordinary Shares in World Travel at an aggregate value of �787,378 (equal to the nominal value outstanding) in return for the redemption of their loan stock. Based upon the current market capitalization of the company of GBP1.0 million, these New Ordinary Shares will be issued at a price of 1.2p per New Ordinary Share. This reflects the secured creditor status attaching to the loan stock. The conversion of the loan stock into World Travel ordinary shares will, accordingly, mean that the former Loan Stock Holders will hold approximately 80% of the issued share capital of the company. It is expected that the new ordinary shares to be issued to the company's loan stock holders as a result of the proposed conversion will be admitted to trading on AIM on Thursday, September 25, 2003. CONTACT: WORLD TRAVEL John Biles, Chairman Phone: 020 7456 1351 ********* 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. 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