/raid1/www/Hosts/bankrupt/TCREUR_Public/030929.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

                 Monday, September 29, 2003, Vol. 4, No. 192


                              Headlines



G E R M A N Y

BERTELSMANN: Halts Merger Talks with Time Warner, Seeks Out Sony
DEUTSCHE TELEKOM: Plans to Sell EUR600 Million Bonds This Year
DEUTSCHE TELEKOM: Rules Out Further East-wise Acquisitions
JENOPTIK AG: Addresses Weakness in Capital Base, Indebtedness
JENOPTIK AG: S&P Assigns 'BB-' Rating with Negative Outlook


I R E L A N D

BRAUN IRELAND: Resolves Industrial Row, Lifts Protective Notice


L U X E M B O U R G

MILLICOM INTERNATIONAL: Customers Continue to Grow in the Quarter


N E T H E R L A N D S

ROYAL NUMICO: Shareholders Appoint New Supervisory Board Members
PETROPLUS INTERNATIONAL: Working Capital Facility Now Committed


N O R W A Y

STATOIL ASA: Corporate Assembly Voice Out Support for Board


P O L A N D

DAEWOO-FSO: To Decide on Capital Hike, Debt-for-Equity Swap
NETIA SA: Sets Extraordinary General Meeting on October 30
NETIA SA: To Release Third Quarter Financial Results November 5


R U S S I A

METROMEDIA INTERNATIONAL: Shares Knocked Off OTC Bulletin Board


S W I T Z E R L A N D

CLARIANT AG: To Close U.K. Plant as it Streamlines Portfolio
SWISS INTERNATIONAL: EasyJet Attacks Deal with British Airways
ZURICH FINANCIAL: Ups Issuance of Subordinated Debt to US$1.3 B


U N I T E D   K I N G D O M

ABBEY NATIONAL: Announces Listing of Shares in London Bourse
AVON ENERGY: Fails to Reach Creditor Agreement Over Bond Price
BAE SYSTEMS: Selling Acoustics Systems Facility to Ultra
CALEDONIA INVESTMENTS: Refutes Attacks on Performance
CORUS GROUP: Invests GBP90 Million in Engineering Steels

COX INSURANCE: Outsources Administration of Discontinued Biz
EQUITABLE LIFE: Former Directors Challenge GBP3.2 BB Lawsuit
EXETER INVESTMENT: Jolliffe, Whittingslow Resign as Directors
F.C.P. LIMITED: Meeting of Unsecured Creditors Set October 3
MARCONI CORPORATION: Partially Redeems Secured Notes Due 2008

MIDLANDS ELECTRICITY: Aquila Ends Arrangement to Sell Interest
NEW POWERHOUSE: New Owner to Make Sure Customers Get Goods
PREMIER FOODS: S&P Revises Outlook to Stable From Negative
SCOTTISH WIDOWS: To Concentrate on Specific Segments of Operation
WALT DISNEY: Hunts Buyers for Troubled Stores in Europe, U.S.

WESTPOINT STEVENS: Will File Disney License Agreement Under Seal
YORKSHIRE GROUP: Half Year 2003 Net Loss Increases to GBP7.6 MM


                         *********


=============
G E R M A N Y
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BERTELSMANN: Halts Merger Talks with Time Warner, Seeks Out Sony
----------------------------------------------------------------
German media company Berterlsmann has suspended a four-month long
negotiation regarding the combination of its music divisions with
that of Time Warner, according to the Telegraph.

The falloff came after EMI confirmed it was in preliminary talks
with Time Warner over a possible $1.6bn bid for the U.S. media
group's Warner Music division.

Bertelsmann is now seeking to enter negotiations with rival Sony.
Talks are not thought to have started, though, according to the
report.

In June, Moody's said trading environment for Bertelsmann's key
activities "remains tough" and its domestic market remains
threatened by a further economic downturn.  The gloomy outlook
loomed even after the operating media and media services company
successfully reduced debt burden incurred with the late-2002
acquisition of music company, Zomba, through the disposal of a
scientific publishing unit.

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 TELEKOM: Plans to Sell EUR600 Million Bonds This Year
--------------------------------------------------------------
Deutsche Telekom, the former German monopoly aiming to reduce
borrowings to EUR52 billion this year, is planning to put EUR600
billion (US$687.3 million) worth of bonds in the market as a
EUR12.6 billion debt matures next year.

Company spokesman Andreas Leigers told Dow Jones Newswires that
Deutsche Telekom has hired Dresdner Bank AG and Landesbank
Hessen-Theuringen Girozentrale to sell the bonds in a framework
agreement.

The bonds will be backed by receivables at its T-Mobile
International wireless-phone unit in the fourth quarter, Deutsche
Telekom AG Chief Financial Officer Karl-Gerhard Eirck confirmed
during a conference with members of the Schmalenbach Gesellschaft
in Berlin.

Deutsche Telekom has been selling assets and cutting costs to
reduce a net debt of EUR21 billion -- EUR12.6 billion of which is
due next year and 8.4 billion in 2005 -- while selling new bonds
to refinance more expensive debt.  It has sold bonds backed by
the receivables of its fixed-line and information-technology
units.

Mr. Eick was confident that "all debt coming due from 2006 can be
financed with free cash flow," as the company is "fully finance
ad infinito."


DEUTSCHE TELEKOM: Rules Out Further East-wise Acquisitions
----------------------------------------------------------
Deutsche Telekom AG Chief Financial Officer Karl-Gerhard Eirck,
speaking during a conference with members of the Schmalenbach
Gesellschaft in Berlin, said the company plans no further
expansion in Eastern Europe.

The company, which has been selling assets and cutting costs to
reduce a net debt of EUR21 billion, expects to complete its
agreed purchase of a majority stake in Warsaw-based Polska
Telefonia Cyfrowa Sp. z.o.o., for EUR1.1 billion this week.

Mr. Eirck also said he is still talking to Singapore
Telecommunications Ltd. and Ayala Corp. about the sale of the
company's stake in Globe Telecom Inc.   He said he is "confident"
of doing a transaction this year, though it will be no problem if
it takes until next year.

Mr. Eick revealed that the company has sold EUR24.4 billion worth
of assets since 200, while raising almost EUR100 billion in debt
sales.  The company will exceed its EUR25 billion target for
assets sales this year, he said.

He also said the company is sticking to its budget of spending
EUR1.6 billion on a new third-generation wireless infrastructure
through 2004.  He said EUR400 million to EUR500 million will be
invested this year with the rest to be invested next year.


JENOPTIK AG: Addresses Weakness in Capital Base, Indebtedness
-------------------------------------------------------------
The board of directors of Jenoptik AG, with the approval of the
supervisory board, has decided to strengthen the company's
capital base by increasing its share capital through issuance of
8.14 million new shares.  The capital increase will be carried
out with pre-emptive rights with existing shareholders being
offered one new share for every five Jenoptik shares held.  The
new shares will be entitled to full dividends for the current
fiscal year 2003.  The capital increase is expected to occur in
October.

Separately, Jenoptik intends to take advantage of currently
favorable market conditions to issue long-term debt in the near
future in an amount expected to exceed EUR100 million.
Jenoptik intends to use the proceeds from the contemplated
transactions to strengthen its capital base, reduce short-term
indebtedness and finance further growth, in particular in the
Photonics business division.

Specific terms of the capital increase and debt issuance will be
determined and published shortly prior to launch of the
respective transaction based on prevailing market conditions.
Jenoptik AG has received a company rating from Standard & Poors
of BB- (Outlook: Negative) and from Fitch of BB (Outlook:
Stable).

CONTACT:  JENOPTIK AG
          Steffen Schneider, Investor Relations
          Phone/Fax: +49(3641)-652290/2157
          Home Page: http://www.jenoptik.com


JENOPTIK AG: S&P Assigns 'BB-' Rating with Negative Outlook
-----------------------------------------------------------
Standard & Poor's Ratings Services said it assigned its 'BB-'
long-term corporate credit rating to Germany-based engineering
group Jenoptik AG.  The outlook is negative.

"The rating primarily reflects the group's customer concentration
in facility engineering services to the semiconductor industry,
which represents about one-third of revenues, as well as the
challenging market environment in which the company operates, and
the group's exposure to cost overruns and delay penalties," said
Standard & Poor's credit analyst Eve Greb. "The ratings are
further constrained by Jenoptik's weak cash flow generation and
high reliance on short-term funding."

These weaknesses are mitigated by Jenoptik's strong position and
long track record in the competitive segment of clean-room
engineering, and by the high level of outsourcing in this field.
The ratings are also supported by the company's fair geographic
diversification and long-term privileged customer relationships.

"Jenoptik's financial flexibility is currently weak, with a high
reliance on short-term funding, but a refinancing package that is
expected to be completed by mid-October 2003 will improve the
company's liquidity and will extend the group's maturity
profile," said Ms. Greb.  The refinancing package will consist of
more than EUR100 million long-term financing and a capital
increase of 8.14 million shares.  It will enable the group to
refinance most of its short-term maturities of about EUR220
million at June 30, 2003. In addition, the group had unused
credit lines of about EUR50 million at June 30, 2003.

The negative outlook reflects the uncertainty of Jenoptik's cash
generation ability in 2003 and beyond under the prevailing
difficult market conditions.  The outlook also reflects the
uncertainty of Jenoptik's business and financial profile owing to
strategic changes the company is considering with regard to its
Clean Systems division.



=============
I R E L A N D
=============


BRAUN IRELAND: Resolves Industrial Row, Lifts Protective Notice
---------------------------------------------------------------
The protective notice issued to Braun Ireland employees was
lifted last week following a series of meetings between the
management and SIPTU representatives at the facility, according
to RTE Interactive News.

The report quoted a SIPTU spokesperson saying that a major
progress had been made on the issue of voluntary redundancies and
that further meetings have also been scheduled for this week.

Hundreds of workers feared for their jobs when a protective
notice was issued to them Monday last week, following an
unofficial overtime ban.

Braun Ireland said in a statement that it was placing 600 of its
industrial and technical workforce on protective notice.  It
claimed that emergency steps had not been taken to resolve a row
over redundancy terms before an overtime ban was initiated.

The Co Carlow factory that produces hair-care and electrical
appliances is the largest private sector employer in town,
employing around 700 people.



===================
L U X E M B O U R G
===================


MILLICOM INTERNATIONAL: Customers Continue to Grow in the Quarter
-----------------------------------------------------------------
Millicom International Cellular SA (Nasdaq Stock Market: MICC),
the global telecommunications investor, announced that it passed
the 5 million-customer mark during September.

Marc Beuls, President and CEO of Millicom International Cellular
commented: "With the consolidation of 460,000 subscribers in El
Salvador, Millicom now has over 5.25 million subscribers,
reflecting the continued growth in subscriber acquisition during
the third quarter".

Millicom International Cellular S.A. is a global
telecommunications investor with cellular operations in Asia,
Latin America and Africa.  It currently has a total of 16
cellular operations and licenses in 15 countries.  The Group's
cellular operations have a combined population under license of
approximately 382 million people.  In addition, MIC provides
high-speed wireless data services in five countries

                     *****

An improved liquidity position and reduced leverage as a result
of the completion of the company's exchange offer and subsequent
issuance of 5% mandatory exchangeable bonds that will help retire
approximately US$167 million of 11% senior notes led Moody's to
upgrade its ratings on Millicom International Cellular SA this
month.

The debt instruments upgraded were its senior implied rating (to
B1 from Caa1), issuer rating (to B2 from Caa2), and 13.5% senior
subordinated discount note due 2006 (to B3 from Caa3).  Its 11.0%
senior unsecured notes due 2006 was assigned a B2 rating.

CONTACTS:  MILLICOM INTERNATIONAL CELLULAR SA
           Marc Beuls, President and Chief Executive Officer
           Phone:  +352 27 759 101

           SHARED VALUE LTD., LONDON
           Andrew Best, Investor Relations
           Phone:  +44 20 7321 5022



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


ROYAL NUMICO: Shareholders Appoint New Supervisory Board Members
---------------------------------------------------------------
Royal Numico N.V. announces the official appointments of
Messrs. Hessel Lindenbergh and Per Wold-Olsen as members to the
Supervisory Board.

The Extraordinary General Meeting of Shareholders, held on
September 23, 2003, endorsed the appointments of Messrs
Lindenbergh and Wold-Olsen.  Both are appointed for a period of
four years, ending on the date of the Annual General Meeting of
Shareholders in 2007.

Hessel Lindenbergh (60), of Dutch nationality, was member of the
Executive Board of ING Group N.V. until his retirement in July
2003.  He also chaired the Executive Committee of ING Europe.
Mr. Lindenbergh was also member of the European Banking
Federation and chairman of the Netherlands Bankers' Association
(NVB).

Per Wold-Olsen (55), of Norwegian nationality, is a member of the
Management Committee of Merck & Co., Inc. U.S.A., a global
research-driven pharmaceutical products and services company with
revenues of US$51.8 billion in 2002.  Mr. Wold-Olsen is President
of the company's Human Health business in Europe, Middle East and
Africa and is also responsible for its Worldwide Human Health
Marketing group.

Royal Numico is a leader in specialized nutrition, including baby
food, clinical nutrition and GNC (nutritional supplements).  The
company operates in over 100 countries and employs approximately
26,500 people.

                     *****

Numico posted a loss of EUR1.64 billion in 2002, after it was
forced to writedown the value of Rexall and General Nutrition Co.
stores.  It bought GNC for $2.5 billion in 1999.
The company, now in debt by about EUR2.1 billion, is currently
trying to sell the operation.

CONTACT:  ROYAL NUMICO N.V.
          Investor Relations
          Phone: +31 79 353 9003


PETROPLUS INTERNATIONAL: Working Capital Facility Now Committed
---------------------------------------------------------------
Petroplus International N.V. announces that it has finalized the
documentation of its revised US$580 million uncommitted Secured
Revolving Trade Finance Facility.  The signing took place on
September 23, 2003.  Of the total Facility, US$480 million will
now be provided on a committed basis.  The duration of the
Facility is not affected by these changes.

Petroplus furthermore announces the following changes in its 2004
financial calendar with respect to the scheduled publication
dates for its quarterly financials and the date of the Annual
General Shareholders' Meeting:

* Annual figures fiscal year 2003
Tuesday March 9, 2004 (formerly March 11, 2004)

* First quarter figures fiscal year 2004
Wednesday May 19, 2004 (formerly May 25, 2004)

* Annual General Shareholders' Meeting
Wednesday May 19, 2004 (formerly May 25, 2004)

* Semi-annual figures fiscal year 2004
Friday August 20, 2004 (formerly August 26, 2004)

* Third quarter figures fiscal year 2004
Monday November 22, 2004 (formerly November 26, 2004)

The new schedule reflects internal changes in the reporting
timeline.

Profile of Petroplus International NV

Petroplus International N.V. was established 10 years ago and has
since developed into a leading player in the European midstream
oil market.  The midstream sector encompasses refining, marketing
and logistics (predominantly tank storage).

Petroplus is the owner of refineries in Antwerp (Belgium),
Cressier (Switzerland) and Teesside (United Kingdom) with a total
capacity of 270,000 barrels per day.  Petroplus has a sales
volume in excess of 20 million tons a year of oil products and a
storage capacity of almost 5 million m³ throughout Western
Europe.  Petroplus started in 2001 with the Tango formula of
selling fuel to motorists from unmanned filling stations.  Tango
is active in The Netherlands as well as Belgium and is
considering further expansion within Europe.

Petroplus, with its head office in Rotterdam and regional head
offices in Zug and Hamburg, has branch offices in more than 20
countries and employs approximately 1000 employees.  Petroplus
International N.V. is publicly listed in the NextPrime segment of
Euronext, Amsterdam.

CONTACT:  PETROPLUS INTERNATIONAL NV
          P.O. Box 85002
          3009 MA Rotterdam
          The Netherlands
          Phone: +31 (0)10 242 5900
          Fax: +31 (0)10 242 6052
          E-mail: IR@petroplus.nl
          Website: http://www.petroplusinternational.com
          Marcel van Poecke
          Willem Willemstein
          Executive Board

          Martijn Schuttevaer, Investor Relations Manager
          Phone: +31 10 242 5900
          Home Page: http://www.petroplusinternational.com



===========
N O R W A Y
===========


STATOIL ASA: Corporate Assembly Voice Out Support for Board
-----------------------------------------------------------
The corporate assembly of Statoil ASA has considered the
controversial consultancy contract at its meeting on September
24.

It has confidence in the remaining members of the company's board
of directors, and takes note of the resignations of former chair
Leif Terje Loddesol and former chief executive Olav Fjell.

The corporate assembly supports the board's assessment that the
controversial consultancy contract should never have been
concluded.  It approves the work done by Statoil's internal
audit, which shows that the internal control routines function.

The corporate assembly takes a positive view of the action plan
presented by the board, and will monitor the board's work on
this.

Kaci Kullmann Five has been appointed by the corporate assembly
to act as chair of the board.

The corporate assembly has requested its election committee to
start work on recommending a new chair.

                     *****

Statoil CEO Olav Fjell stepped down Tuesday as the police
investigate claims of fraud on the US$15.2 million contract the
Norwegian company entered with a group of Iranian consultants.



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


DAEWOO-FSO: To Decide on Capital Hike, Debt-for-Equity Swap
-----------------------------------------------------------
Investors in Daewoo-FSO will decide on a rescue of the carmaker
during a key shareholder meeting on September 29, according to
Interfax-Europe.

The convention was arranged courtesy of a protocol signed late
Wednesday between Poland and the receiver of South Korea's Daewoo
Motor in Seoul.

Daewoo Motor representatives refused to back a capital increase
and debt-for-equity swap proposal on lack of time to scrutinize
the Daewoo-FSO-creditor banks-Polish government deal, thus
prompting the postponement of the meeting to September 29.

"On the basis of the agreement, the Korean side agreed to take
all steps to secure court approval to allow for acceptance of an
increase in capital via debt conversion during the September 29
general shareholder meeting in Warsaw," the Polish government
said.

A possible signing of the court agreement could also usher in a
debt reduction deal between Daewoo-FSO, the Polish Treasury and
Polish creditor banks early last week.

Daewoo-FSO owes PLN591 million to major Polish banks, including
Bank Pekao, Bank Przemyslowo-Handlowy PBK, Bank Handlowy,
Millennium, ING Bank Slaski and Kredyt Bank.


NETIA SA: Sets Extraordinary General Meeting on October 30
----------------------------------------------------------
Netia SA (WSE: NET), Poland's largest alternative provider of
fixed-line telecommunications services, announced that it will
hold an extraordinary general meeting of shareholders in Warsaw
on October 30, 2003 at 3:00 PM CET, to approve Netia's merger
with the following Netia's wholly-owned subsidiaries, in
connection with the ongoing process of internal consolidation of
the Netia group companies: Netia Telekom SA, Netia South Sp. z
o.o., Netia Telekom Mazowsze SA, Netia Telekom Warszawa SA, Netia
Telekom Modlin SA, Netia Telekom Lublin SA, Netia Telekom
Ostrowiec SA, Netia Telekom Swidnik SA, Netia Telekom Torun SA,
Netia Telekom Wloclawek SA, Netia Telekom Kalisz SA, Netia
Telekom Pila Sp. z o.o., Netia Telekom Silesia SA, Netia Telekom
Telmedia SA, Optimus Inwest SA, Netia Network SA, Telekom
Building Sp. z o.o., Netia 1 Sp. z o.o., and Telko Sp. z o.o.

Participating in the Meeting

Shareholders holding publicly traded bearer shares and registered
shares shall have the right to participate in the Meeting,
provided that, at least 7 days prior to the date of the Meeting
(i.e. by October 23, 2003 at 17.00 hours Warsaw time) they
deliver to Netia the depository certificates issued by the
brokerage house keeping such shareholder's securities account, or
by Centralny Dom Maklerski PEKAO SA.

Shareholders who own non-publicly traded bearer shares shall have
the right to participate in the Meeting, provided that, their
shares are deposited with Netia at least 7 days prior to the date
of the Meeting, i.e. by October 23, 2003 at 17.00 hours Warsaw
time.

Proxies of shareholders who are legal persons must present an up-
to-date copy of an extract from an appropriate register stating
who is authorized to represent such entities, and respective
powers of attorney.  The power of attorney authorizing a proxy to
participate in the Meeting must be in writing.

The list of shareholders authorized to participate in the Meeting
shall be available for inspection at Netia's offices 3 days prior
to the Meeting.

CONTACT:  NETIA SA
          Anna Kuchnio (IR)
          Phone: +48-22-330-2061


NETIA SA: To Release Third Quarter Financial Results November 5
---------------------------------------------------------------
Netia SA (WSE: NET), Poland's largest alternative provider of
fixed-line telecommunications services, confirmed that its 2003
third quarter results will be released after the close of the
Warsaw Stock Exchange on Wednesday, November 5, 2003.

On Thursday, November 6, 2003, President of the Management Board
and CEO, Wojciech Madalski, and Chief Financial Officer, Zbigniew
Lapinski, will host a conference call at 5:00 PM (CET)/ 4:00 PM
(U.K.)/11:00 a.m. (Eastern) to review the results.  The
conference call will be available for replay purposes as well.
Netia followers will receive invitations to participate in this
conference call.

                     *****

Netia Holdings announced unaudited consolidated financial results
for the first quarter 2003 with a net loss of PLN80.3 million
(US$19.8 million), a year-on-year decrease of 67% achieved due to
improved operating results and lower financial expense following
the financial restructuring.

CONTACT:  NETIA HOLDINGS
          Anna Kuchnio (IR)
          Phone: +48-22-330-2061



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R U S S I A
===========


METROMEDIA INTERNATIONAL: Shares Knocked Off OTC Bulletin Board
---------------------------------------------------------------
Metromedia International Group, Inc. (currently traded as:
OTCPK:MTRM - Common Stock and OTCPK:MTRMP - Preferred Stock), the
owner of interests in various communications and media businesses
in Russia, Eastern Europe and Georgia, announced that:

(a) The quotation of the company's equity securities on the OTC
Bulletin Board trading system was removed on September 24, 2003
because the company was not then in compliance with NASD Rule
6530.  Under Rule 6530 the Company was required to file its
Quarterly Report on Form 10-Q for the quarter ended June 30, 2003
with the United States Securities and Exchange Commission by
September 23,2003.  The company anticipates that it will file its
Form 10-Q within the next 12 business days and thus again be in
compliance with OTCBB trading eligibility requirements.

(b) As part of its continuing corporate restructuring
initiatives, the company has undertaken to move its corporate
headquarters from New York City to Charlotte, North Carolina.  A
much downsized, Charlotte-based, accounting and financial
reporting work force has been successfully recruited and, in
October, will commence operations in newly leased office space in
Charlotte.  Although this action has contributed to the delay in
the filing of the Company's current Form 10-Q, its immediate
effect will be a substantial reduction in continuing overhead
expenditures.  The company expects to close its New York City
office before the end of 2003.

(c) The company remitted Monday US$7.98 million to U.S. Bank
Corporate Trust Services, the trustee of its $152.0 million 10
1/2 % Senior Discount Notes due 2007, thereby effecting the
required semi-annual interest payment prior to the September 30,
2003 due date.

(d) To conserve cash in anticipation of further business
development opportunities and potential refinancing of the
Company's Senior Discount Notes, the company has elected to not
declare a dividend on its 7 1/4% cumulative convertible preferred
stock for the quarterly dividend period ending on September 15,
2003.  Accordingly, as of the September 15, 2003 due date for
such dividend, aggregated dividends in arrears is $37.5 million.

In making these announcements, Mark Hauf, Chairman and Chief
Executive Officer of the Company, commented: "Our delay in filing
the second quarter Form 10-Q is an unfortunate, but unavoidable
consequence of the otherwise very positive corporate
restructuring initiatives we began in the first quarter of 2003.
We recognized an acute need to promptly and substantially
downsize and reorganize the Company's support forces as part of
our commitment to resolve the significant liquidity issues that
the company had long faced.  Such actions unavoidably disrupt
internal corporate workflow processes and, given the scale of
restructuring required to adequately address our situation, the
disruption has been significant.  These actions have limited our
ability to file timely public financial statements; but, in
broader terms, the restructuring and other initiatives we have
taken in the company have substantially contributed to resolving
the liquidity issues we faced at the start of the year.  Upon
completing the move of our much-streamlined U.S. support
operations to Charlotte later this year, we expect that any
further adverse effects of the restructuring program will end and
the Company will be positioned to enjoy the long term benefits
intended when we began this work in March 2003."

With respect to the removal of quotation of the company's equity
securities on the OTCBB trading system, Ernie Pyle, Senior Vice
President and Chief Financial Officer of the Company commented:
"We regret that our tardiness in filing a second quarter Form 10-
Q has had this unfortunate consequence and any temporary
inconvenience that may result for investors of our equity
securities.  Work leading to filing of the second quarter Form
10-Q commenced with urgency after the company filed its 2002 Form
10-K and first quarter 2003 Form 10-Q in July, but was much
encumbered by the significant reduction in corporate accounting
and finance personnel that we had sustained and the timing of
such departures in relation to the recruitment of replacement
personnel from Charlotte.  Nonetheless, I am confident that the
accounting and finance personnel that are currently engaged and
work flow processes that are currently in place are sufficient to
ensure that we will complete the filing of the second quarter
Form 10-Q within the next 12 business days.  Once the Company has
filed this Form 10-Q with the SEC and is again in compliance with
SEC filing requirements, the equity securities of the Company can
only resume trading on the OTCBB system if one of the Company's
OTCBB's market makers files a petition with the OTCBB (Form 211)
and the OTCBB then determines that the Company's equity
securities can be quoted on the OTCBB trading system."

Regarding the move of the company's headquarters to Charlotte,
NC, Mr. Pyle further commented: "The company's decision to move
its corporate headquarters operation from New York City was
principally driven by our commitment to substantially reduce
corporate overhead expenditures.  Upon completing this move, the
Company will benefit from significant reductions in continuing
office-related, personnel and professional service costs.
Furthermore, this new headquarters operation and its counterpart
in Moscow, Russia are being sized and organized specifically to
fit the much streamlined corporate structure that will result
upon the Company's divestiture of all but its core foreign
business operations."

In summarizing matters announced Monday, Mr. Hauf, commented:
"These announcements, with the exception of that concerning
prompt payment of our current interest obligations, unfortunately
do not demonstrate the significant progress that we have made in
the past two quarters to fundamentally restructure the Company
and prepare it for the future.  Although this work has had
several disruptive consequences, I remain convinced that the
course we are pursuing will yield best long-run results for our
stakeholders.  We are currently finalizing preparations for our
2003 annual shareholder meeting, the date of which will be
announced shortly.  We look forward to meeting with our
shareholders at that time to review events of this volatile year
and discuss future opportunities that we are certain have been
created through this year's efforts."

About Metromedia International Group

Through its wholly owned subsidiaries, the Company owns
communications and media businesses in Russia, Eastern Europe and
Georgia.  These include mobile and fixed line telephony
businesses, wireless and wired cable television networks and
radio broadcast stations.  The company has focused its principal
attentions on continued development of its core telephony
businesses in Russia and Georgia, while undertaking a program of
gradual divestiture of its non-core media businesses.  The
Company's non-core media businesses are comprised of seven cable
television networks, including operations in Russia, Romania,
Belarus, Moldova, Lithuania and Georgia.  The company also owns
interests in seventeen radio businesses operating in Finland,
Hungary, Bulgaria, Estonia, Latvia and the Czech Republic. The
Company's core telephony businesses include Peterstar, the
leading competitive local exchange carrier in St. Petersburg,
Russia, and Magticom, the leading mobile telephony operator in
Georgia.

CONTACT:  METROMEDIA INTERNATIONAL GROUP, INC.
          New York
          Ernie Pyle
          Phone: 212/527-3800, # 112



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


CLARIANT AG: To Close U.K. Plant as it Streamlines Portfolio
------------------------------------------------------------
Clariant is continuing to streamline its portfolio and is exiting
the hydrosulfite business.  The company announced that its last
hydrosulfite production facility in Widnes, U.K., will be closed
at the end of 2003.  Clariant sold its North American
hydrosulfite business at the end of 2002.

Hydrosulfite is widely used as a bleaching agent in the paper
industry but represents only a small share of Clariant's global
paper business.  Business Unit Paper is part of the TLP (Textile,
Leather & Paper Chemicals) Division.

Certain assets of the business will be sold to Silox SA based in
Belgium who will ensure the continued supply of Hydros® and HY-
BRITE® to all of the affected customers from their own production
facilities.  The existing technical service function will be
integrated into the Silox business and will continue unchanged.

After the sale of the North American hydrosulfite business at the
end of 2002, Widnes was the only remaining production facility.
After carefully reviewing all options, Clariant has now decided
to close the Widnes facility and to exit the hydrosulfite
business completely.

The closure of the Widnes plant affects 61 employees.  Clariant
will make efforts to find alternative positions for those
concerned.  However, redundancies will be inevitable.

Exiting the hydrosulphite business is a further step in the
systematic implementation of Clariant's strategy to increase its
concentration in specialty chemicals.

Calendar of Corporate Events

November 4, 2003
Nine months results

February 24, 2004
2003 results

April 2, 2004
Annual General Meeting

Clariant - Exactly your chemistry.

Based at Muttenz near Basel, Switzerland, Clariant is a global
leader in the field of fine and specialty chemicals.  Some 28 000
employees in more than 100 group companies on five continents
generate annual sales of over CHF9 billion.

Clariant is divided into five Divisions: Textile, Leather & Paper
Chemicals, Pigments & Additives, Masterbatches, Functional
Chemicals, Life Science & Electronic Chemicals.

Clariant's innovative products play a decisive role in the
customers' manufacturing and treatment processes or add value to
their end-products.  The company's success is based on the know-
how of its staff, and on their ability to identify new customer
needs at an early stage and to work together with customers to
find innovative, efficient solutions.

Clariant is committed to sustainable growth springing from its
own innovative strength.  Our objective is to achieve 30% of
sales with products and services that are no more than five years
old.

CONTACT:  CLARIANT INTERNATIONAL LTD.
          Rothausstrasse 61
          CH-4132 Muttenz 1/Switzerland
          Investor Relations
          Phone: +41 61 469 67 48
          Fax: +41 61 469 67 67

          Iris Welten
          Phone: +41 61 469 67 47

          Holger Schimanke
          Phone: +41 61 469 67 45

          Daniel Leuthardt
          Phone: +41 61 469 67 49


SWISS INTERNATIONAL: EasyJet Attacks Deal with British Airways
--------------------------------------------------------------
Budget airline Easyjet is threatening to change the terms of the
recent cooperation between British Airways and Swiss
International, according to The Times.

Swiss International recently agreed to give British Airways eight
pairs of daily runway slots at Heathrow in exchange for a CHF50
million (GBP22.5 million) credit facility.

But Easyjet, which has a base at Zurich and flies to Switzerland
from Luton and Gatwick, said it plans to demand that British
Airways and Swiss relinquish take-off "slots" at Heathrow to
create competition.

The report quoted EasyJet spokesman Toby Nicol saying: "We have
no desire to go into Heathrow but other airlines might.  Given
that it is impossible to get into Heathrow, we will demand this
alliance give up slots at Heathrow."

Dominic Edridge, an aviation analyst at Commerzbank, agrees the
deal could raise competition issues for the European Commission,
but it does not constitute a solid ground.

"The Commission will probably concentrate on competition from all
London airports, rather than from just Heathrow to Switzerland.
This makes a difference as EasyJet operates from Gatwick to
Switzerland and so could be judged as competition."


ZURICH FINANCIAL: Ups Issuance of Subordinated Debt to US$1.3 B
---------------------------------------------------------------
Zurich Financial Services Group set the terms of its issue of
subordinated debt.  The transaction has met with very positive
investor response and was four times oversubscribed.  As a result
of this strong demand, Zurich has decided to increase the total
issuance from US$1 billion to US$1.3 billion.  The proceeds will
be used to strengthen the Group's capital base and refinance
existing debt.  After refinancing the Group's net debt will have
increased by approximately US$500 million.

As announced on September 17, the debt will be issued via Zurich
Insurance Company's Euro Medium Term Note Program in the Euro and
Sterling markets.  The debt issued in Sterling consists of a
GBP450 million perpetual tranche callable in 2022 and with a
fixed-rate coupon of 6.625%.  The debt issued in Euro consists of
a EUR500 million tranche with a 20-year maturity callable in 2013
and a fixed-rate coupon of 5.75%.  Settlement of the issue is
expected on October 2, 2003.

The transaction is expected to be rated A- (Standard and Poor's),
Baa2 (Moody's), and BBB+ (Fitch).  Application will be made to
list the notes on the Luxemburg Stock Exchange.

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.



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


ABBEY NATIONAL: Announces Listing of Shares in London Bourse
------------------------------------------------------------
Application has been made to the Financial Services Authority and
the London Stock Exchange plc for 1,928,522 Ordinary shares of
10p each to be admitted to the Official List.

It is expected that admission to admit the shares will be granted
on October 1, 2003 and that admission and trading will commence
on October 6, 2003.

These shares are being issued under the Abbey National
Alternative Dividend Plan offered to shareholders in respect of
the dividend payable on October 6, 2003.

These shares will rank pari passu with the existing issued
Ordinary shares.

                     *****

U.K.'s sixth largest bank, Abbey National posted GBP1 billion in
losses last year.  It is now in the process of restructuring its
ailing finances.


AVON ENERGY: Fails to Reach Creditor Agreement Over Bond Price
--------------------------------------------------------------
Aquila, Inc. FirstEnergy Corp. and Scottish and Southern Energy
plc announced that they and representatives of the ad hoc
committee representing certain holders of the GBP360 million
variable coupon bonds due 2006, the US$250 million 7.05% notes
due 2007 and the US$250 million 6.46% notes due 2008 issued by
Avon Energy Partners Holdings have been unable to agree on a
purchase price for the Bonds.  Accordingly, discussions with the
Committee have been terminated.

It is a condition to the sale of Aquila Sterling Limited and its
subsidiaries, including AEPH and Midlands Electricity plc, by
Aquila Sterling Holdings LLC, which is indirectly owned by Aquila
and FirstEnergy, to SSE Power Distribution Limited, a subsidiary
of SSE, that the Bonds be purchased at a price equal to 86% of
their par value plus accrued interest.  In light of the failure
to reach agreement with the Committee, Aquila, FirstEnergy, SSE
and their respective subsidiaries have initiated steps to
terminate the sale and purchase agreement with respect to the
sale of Aquila Sterling Limited.

CONTACT:  AQUILA, INC.
          Al Butkus,
          Phone: 816-467-3616
          Homepage: http://www.aquila.com

          FIRSTENERGY CORP.
          Kristen Baird
          Phone: 330-761-4261
          Homepage: http://www.firstenergycorp.com

          SCOTTISH AND SOUTHERN ENERGY PLC
          Alan Young
          Phone: +44-0870-900-0410
          Homepage: http://www.scottish-southern.co.uk


BAE SYSTEMS: Selling Acoustics Systems Facility to Ultra
--------------------------------------------------------
BAE Systems North America and Ultra Electronics Holdings plc
(Ultra) announced they have reached a definitive agreement under
which Ultra will acquire BAE SYSTEMS Ocean Systems business.

Ocean Systems, located in Braintree, Massachusetts, has 80
employees and produces special purpose acoustic and RF devices
and systems for submarines, surface ships and acoustic test
ranges.  Ocean Systems also operates an open water test site to
conduct acoustic research and production testing.

Closing of the sales agreement, negotiated at US$10 million in
cash, is expected to occur within 45 days, subject to completion
of regulatory reviews and approvals.

Jeff Markel, president of BAE SYSTEMS Communication, Navigation,
Identification and Reconnaissance business unit, said the sale
was made because the focus and strategy of BAE SYSTEMS North
America is moving from component provider to systems integration.

"Ocean Systems has a proven tradition of excellence in providing
quality high performance acoustic solutions for the military and
civilian community.  We're confident the business and the
talented workforce will be a good fit with Ultra," he added.

Ocean Systems has provided ship self-defense systems and services
for more than 40 years.

About BAE SYSTEMS:

BAE SYSTEMS is an international company engaged in the
development, delivery, and support of advanced defense and
aerospace systems in the air, on land, at sea, and in space.  The
company designs, manufactures, and supports military aircraft,
surface ships, submarines, radar, avionics, communications,
electronics, and guided weapon systems.  It is a pioneer in
technology with a heritage stretching back hundreds of years.  It
is at the forefront of innovation, working to develop the next
generation of intelligent defense systems.

BAE SYSTEMS has major operations across five continents and
customers in some 130 countries.  The company employs more than
90,000 people and generates annual sales of approximately $19
billion through its wholly owned and joint-venture operations.

BAE SYSTEMS North America is a high-technology U.S. company
employing more than 25,000 people who live and work in some 30
states, the District of Columbia, and the United Kingdom.  The
company is dedicated to solving its customers' needs with highly
innovative and leading edge solutions across the defense
electronics, systems, information technology, and services
arenas.

BAE SYSTEMS, innovating for a safer world.

About Ultra Electronics:

Ultra Electronics, headquartered in Greenford, Middlesex, U.K.,
is a group of specialist businesses designing, manufacturing and
supporting electronic and electromechanical systems, sub-systems
and products for aircraft, ships, submarines, armored vehicles,
airports and transport systems worldwide.  The Group, which
employs 2,600 people in the U.K. and North America, focuses on
high integrity sensing, control, communication and display
systems with an emphasis on integrated Information Technology
solutions.

CONTACT:  BAE SYSTEMS
          Information and Electronic Systems Integration Sector:
          Joan Ferguson
          Phone: 603-885-2816
          Homepage: http://www.na.baesystems.com

          ULTRA ELECTRONICS HOLDINGS PLC
          Dr. Julian Blogh
          Phone: +44 (0) 20-8813-4321
          Homepage: http://www.ultra-electronics.com


CALEDONIA INVESTMENTS: Refutes Attacks on Performance
-----------------------------------------------------
The Board of Caledonia Investments plc notes Wednesday's
announcement by the two liquidation vehicles chaired by Sir John
Craven.  The announcement sought to claim that Caledonia's
performance had been inconsistent.

Independent statistics published monthly by The Association of
Investment Trust Companies ('AITC')# and which are available on
the AITC website at http://www.aitc.co.uk,show that as at August
31, 2003 Caledonia, measured on a total shareholder return basis,
is the top performer in its sector (Global Growth) over 1 year
and 3 years and is in the top quartile over all other periods
measured up to 10 years.

Caledonia's TSR also continues to deliver strong outperformance
against the FTSE All-Share Total Return index as the table below
demonstrates.

Total Shareholder Return to August 31, 2003

TSR to 31 August 2003# Caledonia  FTSE All-Share Outperformance

Short Term (1 year)      +42%         +5%         +37%

Medium Term (5 years)    +53%         -3%         +56%

Long Term (10 years)    +164%        +86%         +78%


Put another way, GBP100 invested in Caledonia one year ago would
have grown to GBP142, or GBP153 if invested five years ago, or
GBP264 if invested ten years ago.

The same GBP100 invested in the FTSE All-Share Total Return index
over these periods would be worth only GBP105, GBP97 and GBP186
respectively.

The Board of Caledonia believes that the above demonstrates that
the company has delivered a strong performance record over the
short, medium and long term.

# AITC statistics quoted are derived from the Monthly Information
Service dated September 2003 from the AITC prepared by
Fundamental Data Limited on behalf of AITC Services Limited.

CONTACT:  CALEDONIA INVESTMENTS PLC
          Phone: +44 (0)20 7802 8080
          Tim Ingram, Chief Executive

          COLLEGE HILL
          Phone: +44 (0)20 7457 2020
          Tony Friend
          Tom Allison


CORUS GROUP: Invests GBP90 Million in Engineering Steels
--------------------------------------------------------
Philippe Varin, Chief Executive of Corus, launched Phase One of
Corus' U.K. restructuring program with a major investment in its
Engineering Steels (CES) business.

The total cost of some GBP90 million will be financed from a
combination of Export Credit Agency-backed finance and disposals.

Preparatory work is already underway on the Engineering Steels
investment program to provide manufacturing and product
improvements in the major parts of the process.

Commenting on the announcement, Nick Cragg, Managing Director of
Corus Engineering Steels, said: "This is the largest single
investment in the engineering steels business in South Yorkshire
for 15 years and it demonstrates Corus' commitment to creating a
strong, profitable European engineering steels business."

Over the next two years, Corus Engineering Steels will be
implementing a planned restructuring and rationalization of its
current manufacturing facilities.  This investment in the world's
best practices will ensure Corus secures its long-term
competitiveness and enhances its product range, quality and
consistency.

The key features of the plan are to:

(a) develop the Rotherham, South Yorkshire, site as the focus for
steelmaking, casting, rolling and bar processing.

(b) develop the Stocksbridge, South Yorkshire, site to be the
focus for primary product finishing and specialized processing of
aerospace and other re-melted steels.

(c) close Stocksbridge steelmaking and rolling; and the Tipton
bright bar site in the West Midlands.

                     *****

Corus' intention to restructure its U.K. manufacturing operations
was first announced on April 29, 2003.

Engineering steels are high grade and special steels used by the
world's leading companies in a range of markets including
automotive, aerospace, oil and gas extraction and power
generation.

Corus is Europe's largest producer of free cutting steels and is
the world's largest producer of leaded steel bar.

Corus Engineering Steels is a fully integrated business with
manufacturing, commercial, stockholding and distribution
operations and directly exports to more than 40 countries.  It is
also a significant global supplier to the aerospace industry.

Besides Rotherham, Stocksbridge and Tipton, CES has manufacturing
facilities at Wednesbury in the Midlands and stockholders/service
centers in Sheffield, Wolverhampton, Bolton, Hetton and Slough.
It has an annual turnover of GBP400 million and produces around
one million tons of steel a year.  The size and specification of
its range is the most comprehensive in Europe.


COX INSURANCE: Outsources Administration of Discontinued Biz
------------------------------------------------------------
Cox Insurance Holdings Plc announces that Cox Syndicate
Management Limited, its subsidiary managing agency, has signed an
outsourcing agreement with CMGL Syndicate Management Limited to
manage the ongoing run-off administration of its discontinued
commercial portfolio underwritten by Syndicate 1208.  The
agreement is designed to maintain Cox's current program of
rigorous cost control and risk elimination.  It remains subject
to Lloyd's approval.

Cox entered into a contractual agreement with Lloyd's in March
2002 that isolated the commercial underwriting liabilities from
the rest of the Group.

Recently Cox announced that the commercial run-off was proceeding
well and that the number of live risks had been further reduced
by over 80% since January 2003.

CMGL Syndicate Management Limited, the Lloyd's managing agency of
Claims Management Group Limited, is an industry leader in the
specialist management of discontinued lines of business with a
ten-year track record.  The contract provides for administration
of Syndicate 1208 by CMGL until final  'reinsurance to close'.

Peter Owen, Executive Chairman, Cox Insurance Holdings Plc, said;

"This transaction provides real stability for the commercial
underwriting operations in run off and provides an excellent
career opportunity to all transferring staff to whom we owe a
great debt for their ongoing loyalty.  CMGL fit all our
requirements for a business partner able to offer the highest
service standards and an ability to maximize value as part of the
final drive for ultimate finality from the commercial operations.
We have structured the arrangements so that our aims are mutually
aligned and look forward to a rewarding relationship with CMGL."

Jerry McArthur, Managing Director, Claims Management Group
Limited, said;

"CMGL welcomes the opportunity to work in partnership with Cox,
one of the premier names in the Lloyd's Market, and is delighted
to have been selected.  This is one of the largest outsourcing
arrangements in the Lloyd's market and is an important step both
for Cox and for CMGL.  Outsourcing is a growing area in the
insurance sector as forward thinking insurers are increasingly
looking to this as a way of managing their business cycles more
effectively."

Cox Insurance Holdings Plc

Cox Insurance Holdings Plc is a broad based, mature and fast
developing player in the U.K. retail insurance market, focusing
on underwriting, broking and insurance services.  Cox is the
eighth biggest motor insurer in the U.K. with over 1 million
customers.  For further information visit Cox at
http://www.cox.co.uk

Claims Management Group Limited

Claims Management Group Limited is a leading provider of
outsourced claims, insurance and run-off management services that
are offered to Lloyd's Agencies, London Market Companies, General
Insurers and FTSE quoted Corporations.  With an international
network of 11 offices and employing 550 personnel, CMGL manages
over 220,000 claims representing in excess of US$6.8 billion of
gross liabilities and over US$2.5 billion reinsurance
recoverables.  For further information visit CMGL at
http://www.cmgl.com

CONTACT:  COX INSURANCE HOLDINGS PLC
          Peter Owen, Chairman
          Phone: 020 7265 6711

          BRUNSWICK GROUP LIMITED
          Rupert Young
          Phone: 020 7404 5959

          CLAIMS MANAGEMENT GROUP LIMITED
          Jerry McArthur, MD
          Phone: 020 7680 6555

          CITIGATE DEWE ROGERSON
          Phil Anderson
          Phone: 020 7638 9571


EQUITABLE LIFE: Former Directors Challenge GBP3.2 BB Lawsuit
------------------------------------------------------------
Peter Martin, and Jennie Page, former non-executive directors of
Equitable Life, argued on Wednesday they should not be held
liable for the near-collapse of the company in 2000.

The two appeared in the High Court hearing the GBP3.2 billion
damages suit filed by the management against 15 former board
members of Equitable Life.  Equitable said the directors erred
when it did not seek legal advice when applying a differential
bonus policy in the early 1990s.  It further argues that the
directors should have acted earlier to cut all bonuses in 1999
and 2000 when it knew it was likely to face financial problems.

Peter Martin, a former lawyer who served on the board from 1984
to 2001, told the court: "I was neither negligent nor in breach
of duty.  During the period under review by the court, I behaved
honestly and reasonably."  He said he could not afford in
bankruptcy to pay even "one-ten-thousandth part" of the claims
the lawsuit is seeking.

"It is no secret that the insurance available to the former
directors under the claimant's Directors and Officers cover is
limited to GBP5 million overall," he said.

The House of Lords in July 2000 ruled Equitable breached the
society's constitution when it paid reduced final bonuses to
holders of matured guaranteed annuity rate policies.  The ruling
left a GBP1.5 billion black hole in the firm's accounts.

Ms. Paige, meanwhile, asserted she was not yet appointed director
when the payment of differential bonuses to guaranteed annuity
rate policyholders were made in 1993.

Jennie Page is a civil servant who became chief executive of the
Millennium Experience, and who served from 1994 to 2001.

"I did not know that one element of (the society's) settled
framework was a differential bonus policy," she said.


EXETER INVESTMENT: Jolliffe, Whittingslow Resign as Directors
-------------------------------------------------------------
As indicated in the company's circular dated August 6, 2003
regarding the disposal of open ended fund mandates Mr.
Christopher Whittingslow and Mr. Ian Jolliffe have resigned as
Directors of Exeter Investment Group plc with effect from
September 25, 2003.  They will leave the company on October 3,
2003.

                     *****

In August, the subsidiary of Exeter Investment, EFM,
conditionally agreed to sell the rights to manage its open-ended
fund to New Star for a maximum cash consideration of GBP10.0
million.

Exeter intends to use the net proceeds (after transaction
expenses, tax and redundancy costs) of approximately GBP5.4
million to strengthen the Group's balance sheet.


F.C.P. LIMITED: Meeting of Unsecured Creditors Set October 3
------------------------------------------------------------
Notice is hereby given pursuant to Section 48(2) of the
Insolvency Act 1986, that a meeting of the unsecured creditors of
F.C.P. Limited (In Administration) will be held at RSM Robson
Rhodes LLP, 186 City Road, London EC1V 2NU on October 3, 2003 at
11: a.m. for the purpose of having laid before it a copy of the
report prepared by the Joint Administrative Receivers under
section 48 of the said Act.  The meeting may, if it thinks fit,
establish a creditors' committee to exercise the functions
conferred on it, by, or under the Act.

Creditors are only entitled to vote if:

(a) they have delivered to us at the address shown above, no
later than 1200 hours on the business day before the meeting,
written details of the debts they claim to be due, and the claim
has been duly admitted under the provisions of the Insolvency
Rules 1986; and

(b) there had been lodged with us any proxy which the creditor
intends to use on his behalf.

Creditors may obtain a copy of the report, free of charge, on
application to the Joint Administrative Receivers at RSM Robson
Rhodes, 186 City Road, Londond EC1v 2NU.

CONTACT:  Michael Jonathan Christopher Oldham
          Geoffrey Paul Rowley
          Joint Administrative Receivers


MARCONI CORPORATION: Partially Redeems Secured Notes Due 2008
-------------------------------------------------------------
Marconi Corporation plc confirms to the owners of its 10%
guaranteed Junior Secured Notes, due 2008 (the Securities) the
parameters of the redemption of $103,195,433 aggregate principal
amount of Securities that was announced on September 16, 2003.

The Record Date shall be the close of business in London on
September 29, 2003.  The Redemption Date, as previously
announced, shall be on September 30, 2003.  In line with the
mechanism used for the previous partial redemption of the Junior
Secured Notes which took effect on July 31, 2003, an additional
pool factor of 21.1951859% will be applied to every holding,
calculated with reference to the original issue amount of
$486,881,472.

As at September 30, 2003 the total pool factor, including the
previous redemption effective on July 31, 2003, will be
34.7710194%, calculated with reference to the original issue
amount of $486,881,472.  On the Redemption Date, the redemption
price, together with accrued interest, will become due and
payable.  The Redemption Securities shall cease to bear interest
from and after the Redemption Date.  Any queries in respect of
payment, pool factor or related matters should be directed to
Emma Wilkes at Bank of New York on (+44) 20 7964 7662, who are
the Registrar, the Depositary and the Paying Agent.

About Marconi Corporation plc

Marconi Corporation plc is a global telecommunications equipment,
services and solutions company.  The company's core business is
the provision of innovative and reliable optical networks,
broadband routing and switching and broadband access technologies
and services.  The company's customer base includes many of the
world's largest telecommunications operators.  The company is
listed on the London Stock Exchange under the symbol MONI.
Additional information about Marconi Corporation can be found at
http://www.marconi.com


MIDLANDS ELECTRICITY: Aquila Ends Arrangement to Sell Interest
--------------------------------------------------------------
Aquila, Inc. announced that it has initiated steps to terminate
the agreement to sell its 79.9% interest in Aquila Sterling
Limited, the owner of Midlands Electricity plc, to a subsidiary
of Scottish and Southern Energy plc.

The agreement amongst Aquila, Inc., FirstEnergy Corporation and
Scottish and Southern Energy plc, announced on May 22, 2003,
called for a subsidiary of Scottish and Southern Energy plc to
purchase Aquila Sterling Limited from Aquila, Inc. and
FirstEnergy Corporation.  The sale was subject to a number of
conditions including the successful redemption of outstanding
bonds issued by Avon Energy Partners Holdings, an Aquila Sterling
Holdings subsidiary, at 86% of their nominal value plus all
accrued interest.  The collective efforts to meet this bond
redemption condition were unsuccessful and, therefore, all three
parties have agreed to initiate steps to terminate the sales and
purchase agreement.

"We are very confident with this business, and we are comfortable
with this outcome," said Keith Stamm, Aquila's chief operating
officer.  "We will now continue to work with the management and
employees of Midlands to maximize the value of the business in
the best interest of our customers and shareholders."

Aquila Sterling is held by a joint venture company that is owned
79.9% by Aquila and 20.1% by FirstEnergy.  Midlands is the fourth
largest electricity distribution utility in the United Kingdom,
serving 2.4 million network customers through a 38,000-mile
distribution network.  Midlands also owns interests in a combined
884 megawatts of net generation capacity in the United Kingdom,
Turkey and Pakistan.

Based in Kansas City, Mo., Aquila operates electricity and
natural gas distribution networks in Colorado, Iowa, Kansas,
Michigan, Minnesota, Missouri and Nebraska, as well as in the
United Kingdom.  The company also owns and operates power
generation assets.  More information is available at
http://www.aquila.com.

CONTACT:  AQUILA, INC.
          Investor Relations
          Neala Clark
          Phone: 816-467-3562


NEW POWERHOUSE: New Owner to Make Sure Customers Get Goods
----------------------------------------------------------
Pacific Retail Group, which bought PowerHouse from
administration, said it will honor deliveries of goods ordered by
customers before the electrical chain's collapse.

The New Zealand-based group took over PowerHouse's 14,000
customers, 134 stores and 2,000 employees when it acquired the
company last month.  PowerHouse collapsed after a trade insurer
withdrew cover for some of its suppliers in August.

Pacific Retail was able to safeguard 35,000 warranties earlier.
It is further working to ensure cover for another 170,000
policies, including convincing those managing Easycare and
Extracare extended warranty policies to honor the schemes.

Peter Halkett, chief executive of New PowerHouse, said: "We felt
that it was deeply unfair that many of the customers of the old
PowerHouse business had lost out.  New PowerHouse is about making
it easier for our customers and building a long-term relationship
with them."

Pacific is paying more than GBP2 million to wipe out the legacy
of the previous operation, although it is not obliged to do so.

The group also arranged to deliver to customers products already
paid for within three weeks.


PREMIER FOODS: S&P Revises Outlook to Stable From Negative
----------------------------------------------------------
Standard & Poor's Ratings Services said it revised its outlook on
U.K.-based food manufacturer Premier Foods PLC to stable from
negative, following an improvement of the company's financial
profile.

At the same time, the 'B+' corporate credit rating on Premier was
affirmed.

"The outlook revision reflects the progress achieved by Premier
in its debt reduction, underpinned by the improvement of its
profitability and free cash flow generation," said Standard &
Poor's credit analyst Vincent Allilaire.  "The stable outlook
also reflects Premier's ability to meet its debt repayments in
the near term," he added.

At the end of June 2003, Premier had net debt of GBP431 million
($714 million).

The outlook assumes that the company will continue to grow cash
flows to meet its increasingly demanding debt amortization
schedule over the medium term, through the evolution of its sales
mix, the ongoing restructuring of its manufacturing operations,
and the moderation of its cash outflows.


SCOTTISH WIDOWS: To Concentrate on Specific Segments of Operation
-----------------------------------------------------------------
The new chief executive of Scottish Widow, Archie Kane, together
with the insurer's owner, Lloyds TSB, will implement a new way of
selling insurance to banking customers.

Mr. Kane, who replaced Mike Ross last week, said Scottish Widows
products will be specifically targeted at three segments of the
life market: high net worth individuals, the "mass advice" market
and customers requiring no sales advice.

New products will be developed to target each segment, which will
be served by separate sales teams, he said, according to the
Telegraph.

Scottish Widows has been in dire straits for the past three
years, weighing down on Lloyds TSB's dividend all the while,
under the directives of Mr. Ross.

Commenting on the status of Scottish Widows, Mr. Kane said: "I do
not see it as a problem at all. It is a great opportunity.  This
is why I have taken the job."

Mr. Kane Lloyds was TSB's director of information technology and
operations.  He also becomes group insurance and investments
director.  He has been at the group for 16 years, carrying out
the role of strategic development director for TSB before the
bank was bought by Lloyds in 1995.

TSB boss Eric Daniels initially planned to sell Scottish Widows
but decided against it in August.  He said during the
announcement of the firm's interim results he intends to keep and
restructure it.

He said: "Archie Kane has an exceptional track record in the
financial services industry.  We have a clear five-year plan for
Scottish Widows, which Archie Kane has the wide financial
services experience to implement."


WALT DISNEY: Hunts Buyers for Troubled Stores in Europe, U.S.
-------------------------------------------------------------
Walt Disney is selling as a going concern 480-strong chain of
Disney Stores in North America and Europe for up to US$500
million (GBP310 million).

Goldman Sachs, which was hired to manage the transaction, could
release details of the sale in the next few weeks, according to
the Telegraph.  Interested parties are thought to include private
equity firm Electra Partners, KKR, Permira, and PPM Ventures.


Disney is hoping to receive a percentage of the profits in the
sale as it did with the divestment of its Japanese stores two
years ago.  The sell-off sounded out the first signs of downturn
in the animation company famous for its Mickey Mouse and Snow
White characters.

The group at present has 374 stores in the U.S., 46 in
continental Europe and 60 in the U.K. including at Covent Garden
and Oxford Street in London.

One property analyst said: "There is a big question mark over the
profitability of the U.K. stores, which are no longer a great
attraction at shopping centers.  They are virtually all leasehold
stores and if they were on a market rent they would not be able
to afford it."


WESTPOINT STEVENS: Will File Disney License Agreement Under Seal
----------------------------------------------------------------
A significant portion of the WestPoint Stevens Debtors' sales is
derived from licensed, designer trademarks enabling them to
capitalize on well-known consumer brands.  These brands are
supported by their owners with investments for marketing and
advertising.  The Debtors enter into various licensing agreements
to obtain the right to manufacture and sell products
incorporating license trademarks.  The Debtors typically pay
licensing and royalty fees on the sales of licensed products,
which are offset by charging a premium for the established
brand.  Consumers tend to pay a premium for a particular brand
because they are seeking that designer's "lifestyle" look, just
as in apparel.

Before the Petition Date, the Debtors entered into a License
Agreement with Disney Enterprises, Inc.  According to John J.
Rapisardi, Esq., at Weil, Gotshal & Manges LLP, in New York, the
License Agreement allows the Debtors to produce Disney brand-name
bedroom and bathroom home fashion products targeted to the
juvenile market in the United States and Canada.  Pursuant to the
License Agreement, the Debtors paid Disney license fees and
yearly royalty fees based on a revenue percentage.

The terms of the License Agreement will end on December 31, 2005.
However, before the Petition Date, Disney decided to exercise its
option to terminate the License Agreement on December 31, 2003
and notified the Debtors that it had not met its performance
goals.

Mr. Rapisardi tells the Court that the Debtors derive great
benefits from their relationship with Disney, which is a
successful and respected company.  The Debtors believe that the
termination would have an adverse effect on their ongoing
business operations.  Thus, the Debtors negotiated with Disney
for the continued use of its trademarks.  As a result, the
parties came up with a Letter Agreement dated September 12, 2003
that sets forth terms for a new license agreement.

The Letter Agreement states that the new license agreement would
commence on January 1, 2004 until December 31, 2005.  The new
license agreement will contain a substantial reduction in the
minimum royalty fees due each year.  Further, Disney agreed to
reduce the Debtors' anticipated 2003 royalty shortfall payment
due on December 31, 2003.

Mr. Rapisardi contends that the use of Disney trademarks is
critical to the Debtors' business operations.  Producing and
selling bed and bath products using Disney characters allows the
Debtors to participate in the lucrative juvenile home fashions
market.  Without a license agreement with Disney, the Debtors
would soon have to cease production of goods that have a
potential market in millions of households.

Continuing an essential relationship with Disney for at least an
additional two years will allow the Debtors to benefit from
Disney's perennial popularity through the production and sale of
a wide variety of products featuring popular Disney characters,
Mr. Rapisardi says.

Mr. Rapisardi adds that Section 365(b)(1)(A) of the Bankruptcy
Code prohibits a debtor from assuming an executory contract
unless the debtor cures, or provides adequate assurance of
payment.  The Debtors estimate that the cure amount due Disney
with respect to the assumption of the License Agreement will
total approximately $960,000.

The Debtors believe that assuming the license agreement with
Disney will be invaluable to the continued viability of their
business operations.  Furthermore, the assumption will reduce the
royalty shortfall payment due to Disney as well as minimum yearly
royalty fees called for under the new license agreement.

       Debtors Want to File Disney Agreements Under Seal

Unless the Agreements are filed under seal, Disney is unwilling
to enter into a new license agreement.  Disney consented to
provide copies of the Agreements to the Committee and lenders if
they execute a confidentiality agreement.

Mr. Rapisardi informs Judge Drain that the information contained
in the Agreements constitutes confidential information that is
commercially sensitive.  In the course of its business, Disney
enters into various licensing agreements with third parties,
which are confidential and proprietary in nature.  Mr. Rapisardi
relates that if the information contained in the Agreements were
to become publicly known, Disney's ability to negotiate future
agreements would be compromised.  Mr. Rapisardi contends that
public dissemination of Disney's commercial information would be
very damaging to the company.

Accordingly, Judge Drain authorizes and directs the Debtors to
file copies of the Agreements with the Court under seal.
(WestPoint Bankruptcy News, Issue No. 9; Bankruptcy Creditors'
Service, Inc., 609/392-0900)


YORKSHIRE GROUP: Half Year 2003 Net Loss Increases to GBP7.6 MM
---------------------------------------------------------------
Chairman's Statement

Overview

Trading conditions in the six-month period to June 30, 2003
continued to be very difficult with relative stabilization in
Europe more than offset by adverse conditions in America and
Asia.

In the six-month period to June 30, 2003 the operating loss after
exceptional items was GBP7.6 million, on a turnover of GBP45.4
million against an operating loss after exceptional items of
GBP4.7 million on a turnover of GBP56.3 million in the six month
period to June 30, 2002.   Despite these losses and the GBP3.2
million of interest and similar charges in the period, effective
management of working capital restricted the borrowings to
GBP43.1 million at June 30, 2003 against GBP40.2 million at
December 31, 2002.

Although the Group has made progress in its asset realization
strategy through the sale of peripheral assets, it has become
clear that the best interests of the Group and its stakeholders
will be served by an operational and financial restructuring
which restores operational profitability to its core business and
ensures that the financial debt burden on this business is
sustainable.  Despite the poor operating results in the first
half of 2003, I have been encouraged by the progress made this
year towards the establishment of a profitable core business and
the level of support, which the Group has enjoyed from its
lenders.

Trading results

Group turnover in the six-month period to June 30, 2003 of
GBP45.4 million compares with GBP56.3 million in the first half
of 2002 and GBP47.5 million in the second half of 2002.

The operating loss of GBP5.3 million before exceptional items
compares with an operating loss of GBP1.8 million in the first
half of 2002.  The European business made some progress in
difficult conditions with an operating loss of GBP3.1 million
before exceptional items in the first half of 2003 against a loss
of GBP3.8 million in the second half of 2002.

Exceptional items of GBP3.9 million include GBP1.4 million of
business rationalization costs relating to the restructuring of
the American business and GBP1.6 million arising from the
termination of an interest swap agreement.  The interest swap was
agreed at the time of the Crompton and Knowles acquisition in
1999, and the termination was crystallized by the banks
exercising their rights under the terms of swap and rolling the
amount payable into bank debt.

The ordinary interest expense of GBP1.6 million (first half 2002
GBP1.7 million) reflected the fall in interest rates.

Loss per ordinary share before exceptional items was 14.3p (2002
7.0p loss per ordinary share), and after exceptional items, 21.7p
(2002 12.5p loss per ordinary share).  The directors are not
declaring an interim dividend.

Net assets of the Group before minority interests at June 30,
2003 were GBP15.5 million, being 30p per ordinary share.

Europe

The reorganization of the U.K. manufacturing base announced in
January 2002 has recently been completed, the objective being a
highly efficient dyestuff manufacturing plant at the Hunslet Road
site in Leeds.  The benefits began to flow in the first half of
2003 but will not be fully seen until the fourth quarter.  We are
continuing to seek further improvements in manufacturing
efficiency.

Having reduced the costs of the European manufacturing operation,
Steve Meredith, our recently appointed European MD is now
focusing on a restructuring of the division's sales and marketing
operations and supply chain to increase efficiencies, reduce
working capital and enhance the levels of service we provide to
our customers.  We anticipate further cost reductions will result
which will allow us to reduce the break even level of turnover
for the European business.

European turnover was GBP20.9 million against GBP22.6 million in
the first half of 2002, a 7.6% decline, against a decline of 20%
in the first half of 2002 against 2001.

Americas

The U.S. textile sector continues to be in severe economic
decline with many high profile companies in the manufacturing
sector experiencing difficulties.

Reflecting this we saw a large decline in American turnover from
GBP27.0 million in the first half of 2002 to GBP19.4 million in
the first half of 2003, although an element of the sterling
decline has arisen from movement in the GBP/$ exchange rate.
This compares with sales, at the time of the Crompton & Knowles
acquisition, during the first half of 2000 of GBP36.5 million.

America showed an operating loss before exceptional costs of
GBP0.3 million in the first half of 2003, against a profit of
GBP1.5 million in 2002 and a loss of GBP0.8 million in the second
half of 2002.

There is little prospect of a short-term upturn and we therefore
implemented a major restructuring in May to reduce capacity and
our cost base.  We have also performed a strategic review, the
first consequence of which was the recently announced phased exit
from our specialty chemicals business.  Further details of the
review and its consequences will be provided in due course.

Asia Pacific

The Asia Pacific business began the year well but the SARS virus
had a major negative impact from April onwards.  Given the
ordering and manufacturing cycle and lead times in the area the
lack of travel in that period continues to have an impact.

In response to the decline in sales we have cut overhead costs
and outsourced non core operations such as warehousing, moving
the break even level of trading significantly downwards.

Directors and employees

There have been further changes at Board level during 2003.

Jim Perrie who joined the Group as interim Finance Director on
January 23, and was appointed the Board on 3rd March has agreed
to join the Group in the permanent position of Chief Financial
Officer from 1st October 2003, and one of his responsibilities
being the implementation of the changes resulting from the
strategic review of the American Operations.

Steve Meredith, who joined the Group as European Managing
Director on 1st August from Clariant where he was responsible for
a number of European and worldwide operations, will join the
Board of Yorkshire Group plc from October 1, 2003.

The Board was pleased to welcome Malcolm Shilton to the Group as
Company Secretary with effect from June 17.

The continuing financial difficulties, which have been
experienced by the company during the first half of 2003 have
placed a severe burden on all our employees.

The Board would like to acknowledge their tolerance and the
support they have given during this period.

Prospects

In Europe the benefits from our ongoing manufacturing
improvements, the further benefits we expect to gain from the
restructuring of our sales and marketing operations and the
slowdown in the decline of turnover leave us cautiously
optimistic that we can restore the business to profitability in
the medium term.

The American business continues to be impacted by the difficult
economic conditions in the U.S. textile sector, and we can see
little prospect of an upturn.  We will announce the results of
our strategic review in due course.

Trading conditions in Asia Pacific continue to be difficult,
however the re-alignment of the cost base means that our business
is sustainable at current sales levels, and positions us for any
growth in demand.

Asset realization strategy

As announced we have disposed of surplus property assets in
Australia and the USA and non-core business units in Indonesia
and the USA.  We continue to review all of the Groups assets and
business streams for opportunities to reduce debts.  We are
currently exploring a number of other alternative realizations
and are making slow but steady progress with these.

Pat Barrett
Chairman

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

CONTACT:  YORKSHIRE GROUP
          Andrew Dick, Chief Executive
          Jim Perrie, Finance Director
          Tom Leatherbarrow
          Phone: 0113 244 3111

          THE HOGARTH PARTNERSHIP
          Phone: 020 7357 9477
          Mobile: 07770 272 083


                         *********


S U B S C R I P T I O N   I N F O R M A T I O N

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Copyright 2003.  All rights reserved.  ISSN 1529-2754.

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