/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/031210.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 Wednesday, December 10, 2003, Vol. 4, No. 244 Headlines C Z E C H R E P U B L I C CK FISCHER: Shareholders to Iron out K&K Merger Details Dec. 18 F R A N C E ALCATEL: Moody's Affirms 'B1' Ratings; Outlook Stable FRANCE TELECOM: Ratings on Review for Possible Upgrade RHODIA SA: Negotiations with Creditor Banks Advance VIVENDI UNIVERSAL: Canal Plus CEO Denies Rumored Sale of TV Arm VIVENDI UNIVERSAL: Hearing on Ex-CEO's Severance Pay Set January I R E L A N D ELAN CORPORATION: European Units Next in Auction List I T A L Y ALITALIA SPA: Strike Disrupts Nearly 100 Flights; More Coming N E T H E R L A N D S HAGEMEYER N.V.: Investors Opposed to Bank-led Rescue Plan KLM ROYAL: Adjusts Capacity for 2004 Summer Schedule KONINKLIJKE AHOLD: Completes Sale of Santa Isabel to Nexus Group NUMICO N.V.: Apollo Management Pays US$750 Million for GNC NUTRECO N.V.: Unveils Restructuring Plan for Dutch Operations N O R W A Y AKER KVAERNER: To Trim down Debt by NOK350 Mln Before Year Ends P O L A N D NETIA HOLDINGS: Posts Changes in Share Capital S W E D E N ELANDERS AB: To Shut down Excess Operation in Trelleborg S W I T Z E R L A N D ABB LIMITED: Final Asbestos Hearing Moved to February 4 ABB LIMITED: To Complete US$2 Billion Divestment Next Year SAS GROUP: Braathens Further Strengthens Competitiveness SAS GROUP: Group Passenger Load Factor Dips Slightly in November U N I T E D K I N G D O M AMP LIMITED: Demerger Plan Approved with 'Overwhelming' Majority CABLE & WIRELESS: U.S. Unit Files for Chapter 11 Bankruptcy CABLE & WIRELESS: Names John Dubel Chief Executive of U.S. Unit CABLE & WIRELESS: U.S. Business Secures DIP Financing CABLE & WIRELESS: Unveils Wide-ranging Cost-cutting Plan CABLE & WIRELESS: Case Summary & 20 Largest Unsecured Creditors EURODIS ELECTRON: Sales Fail to Recover as Expected HOLLINGER INC.: Axel Springer Eyeing Telegraph, Says Report LONDON CLEARING: Submits Petition for Scheme of Arrangement SAFEWAY PLC: Trade Ministry Recommences Bidding SKANDIA U.K.: Chief Executive Justifies Lucrative Bonus ********* =========================== C Z E C H R E P U B L I C =========================== CK FISCHER: Shareholders to Iron out K&K Merger Details Dec. 18 --------------------------------------------------------------- An extraordinary general meeting to decide the changes in the articles of association and management board of the combined companies of entrepreneur Vaclav Fisher and Karel Komarek is scheduled for December 18. The meeting was originally set for November 24, but was postponed because of lack of regulatory approval. The merger of three companies owned by Mr. Fischer with K&K Capital Group was referred to the anti-monopoly office for review on November 6, giving the regulator 30 days to issue its verdict. No questions were raised until November 19, enabling the regulators to come up with a decision before the deadline. The merger will give Mr. Komarek majority control of CK Fischer, Fischer s.r.o. and Fischer Air, UOHS Spokesman Kristian Chalupa said, according to Czech Happenings. CK Fischer had sales of CZK3.276 billion, and net profit of CZK59.2 million last year. This year the company expects a moderate loss for the fiscal year ended October 31. The purchase of Mr. Komarek of 75% of CK Fischer, the largest Czech travel agency, helped the company survived the crisis that's eating the company away. =========== F R A N C E =========== ALCATEL: Moody's Affirms 'B1' Ratings; Outlook Stable ----------------------------------------------------- Moody's Investors Service changed to stable from negative the outlook on Alcatel's ratings after showing progress in addressing rating concerns. All ratings were affirmed at 'B1.' Moody's took note of the efforts to adjust the cost base, improve gross margin, and return to consolidated operating profitability (discounting restructuring charges) since the second quarter of 2003. It expects ongoing cost cutting and divestments to stabilize performance and underpin a gradual improvement in profitability into 2004. It also expects the company's operating cash flow before cash restructuring charges to continue to improve throughout into 2004 minimizing reliance on cash generating working capital movements. It is confident of the company's ability to maintain healthy liquidity and adequate financial flexibility to meet maturing debt obligations. Further, Moody's is hopeful that product and geographic revenue diversification should cushion areas where Alcatel is acutely challenged. As of the end of Q3 2003, Alcatel generated revenues of EUR3.04 billion with an improved gross margin at 35.6% and consolidated operating profit before restructuring charges of EUR160 million. Net cash balances as at September 30, 2003 amounted to EUR541 million. FRANCE TELECOM: Ratings on Review for Possible Upgrade ------------------------------------------------------ Moody's Investors Service might raise its ratings on France Telecom after it showed steady progress in reducing its huge debt burden. The debt reduction is in part a result of an improvement in operational cash flow generation, as well as stronger free cash flow. The rating agency said it will review the level of potential operational cash flow development from France Telecom's cost and revenue initiatives with a view towards possibly upgrading France Telecom's ratings. The company needs to generate sustainable free cash flow of EUR4 billion or more, while resisting debt financed acquisitions or other potentially significant cash flow negative activity, to merit the upgrade. France Telecom intends to reduce debt by EUR15 billion from operational cash flow during a three-year period starting at the beginning of 2003. The ratings under review are the 'Baa3' long-term and Prime-3 short-term debt ratings. The ratings affected by the review are Alcatel's convertible global bonds, Euro MTNs, Eurobonds, Floating Rate Euro MTNs, Floating Rate French Franc Bonds, French Bonds, Swiss Franc Bonds, its issuer rating and bank loan rating. RHODIA SA: Negotiations with Creditor Banks Advance --------------------------------------------------- Rhodia, which recently presented its debt-refinancing plan to 23 creditor banks, is confident that a deal could be finalized soon. La Tribune said in October the French chemicals company is in talks with banks to restructure its debt in a EUR2.1 billion refinancing deal. Rhodia did not provide the details of program, but the report said the transaction would include a EUR800 million syndicated loan, a EUR300 million rights issue and EUR700 million worth of asset sales by the end of 2004. Recently Rhodia reiterated its plan to dispose as much as EUR1.3 billion in assets, but did not update the public on its progress. Rhodia plans to dispose assets at their full value to raise at least EUR700 million over the next 12 months. Moody's has said this could be difficult to achieve because of the depressed environment in the chemicals industry. Last month, the rating agency lowered its Senior Implied rating for Rhodia from 'Ba2' to 'B1,' and its senior unsecured and senior subordinated debt ratings to 'B2' from 'Ba2,' and 'B3' from 'Ba3,' respectively. The outlook is negative. VIVENDI UNIVERSAL: Canal Plus CEO Denies Rumored Sale of TV Arm --------------------------------------------------------------- Canal Plus Chief Executive Bertrand Meheut denied rumors that French media group Lagardere is about to buy the unit of Vivendi Universal. Citing an interview published in newspaper Journal du Dimanche, Dow Jones quoted Mr. Meheut saying his company "is not for sale." Vivendi Universal is already "doing much better," he said. Canal Plus Group had another strong quarter with a positive operating income and a positive cash flow from operations. For the third quarter of 2003, Canal Plus Group's operating income of EUR133 million confirms the significant turnaround observed in the first half of this year. Canal Plus previously had annual losses of EUR325 million. VIVENDI UNIVERSAL: Hearing on Ex-CEO's Severance Pay Set January ---------------------------------------------------------------- In the context of Vivendi Universal's (Paris Bourse: EX FP; NYSE: V) suit for damages against Mr. Messier and Mr. Licoys, based on their failure to obtain authorization by the Board of Directors before signing a termination agreement granting Mr. Messier severance payments amounting to EUR20.5 million, the Paris Tribunal de Commerce (commercial court) decided to simultaneously hear Vivendi Universal's claim and the objections submitted by Messrs. Messier and Licoys. A hearing on procedural matters will take place on January 26, 2004. Another hearing on the parties' claims and defenses will occur on March 1, 2004. The court has requested that on January 26, 2004, Vivendi Universal produce records of Board meeting minutes and attendance, as well as the notifications concerning those meetings. Vivendi Universal will produce those documents pursuant to rules set by the court to ensure their confidentiality. This filing will enable the court to verify that all relevant extracts from the minutes have already been produced. CONTACT: VIVENDI UNIVERSAL Investor Relations Paris Daniel Scolan Phone: +33 (0) 171 71 32 91 Laurence Daniel Phone: +33 (0) 1 71 71 12 33 ============= I R E L A N D ============= ELAN CORPORATION: European Units Next in Auction List ----------------------------------------------------- Elan Corporation confirmed it is negotiating with a third party for the disposal of certain European operations, primarily consisting of its sales and marketing business there. Elan said, however, it "cannot make any assurances that the transaction will be completed or the timing of such completion." The businesses are spread over U.K., France, Italy, and Spain. Together the operations employ about 200 people and have revenues of US$110 million. Research and development operations are understood to be excluded from the sale, the Guardian said. David Marshall, a pharmaceutical analyst at Irish stockbrokers NCB, estimated the value of the assets at between US$150 million and US$200 million, according to the report. "The other main area which we would expect to be sold is the drug delivery operations," said Mr. Marshall, explaining the business "has little overlap with the rest of the business." The company has raised around US$2 billion (EUR1.64 billion) in asset disposals in the past year. Last month it completed a US$630 million (EUR517.11 million) share and bond offering to pay almost US$500 million (EUR410.4 million) in debt due later this month. ========= I T A L Y ========= ALITALIA SPA: Strike Disrupts Nearly 100 Flights; More Coming ------------------------------------------------------------- Troubled Italian carrier Alitalia S.p.A. last week cancelled 42 national flights and 50 international flights in anticipation of the scheduled strike that happened early this week. The protest action staged by Alitalia flight controllers on Tuesday affected 11,000 passengers. Workers will also go on strike tomorrow, December 11 and December 17. Alitalia employees are against the company's plan to cut 1,500 of the company's 21,000 jobs and outsourcing a further 1,200 under its restructuring program. Last month employees of the national air carrier staged a four-hour strike, which grounded 195 flights and stranded 25,500 passengers. ===================== N E T H E R L A N D S ===================== HAGEMEYER N.V.: Investors Opposed to Bank-led Rescue Plan --------------------------------------------------------- Institutional investors of troubled Dutch trading firm, Hagemeyer, are reportedly considering joining forces to block the rescue plan being prepared by the company's lenders. Intesatrade, citing Het Financieele Dagblad, said the investors consider the plan too lopsided in favor of the banks. The creditors are proposing a EUR350 million to EUR450 million rights issue priced at EUR1.20, whereby the banks could get the majority of Hagemeyer shares. The Dutch electrical equipment distributor has been hard-hit by problems in its U.K. business, where the failure of a new IT and logistics system introduced last year led to a collapse in market share. Its net debt rose to EUR973 million (US$1.2 billion) by end-September from EUR896 million in June. It has forecasted cash-drain the rest of the year. KLM ROYAL: Adjusts Capacity for 2004 Summer Schedule ---------------------------------------------------- KLM Royal Dutch Airlines will restore capacity this summer to the level originally projected last year. KLM substantially cut back capacity during the 2003/04 summer and winter schedules, in response to declining demand as a result of the SARS crisis. The upcoming summer schedule commences on Sunday, March 28, 2004, and ends on Saturday, October 30, 2004. KLM will launch scheduled services to the new destinations Riga in Latvia and Kristiansand in Norway at the start of the 2004 summer schedule. In addition, KLM will adjust flight frequency and switch aircraft types on many routes, in response to traffic developments. Europe The new roundtrip services to Riga and Kristiansand will be operated by KLM cityhopper with Fokker 70 aircraft. Riga will be served twice daily and Kristiansand once daily. Services to Bristol, Budapest, Edinburgh, Glasgow and Hanover will be reduced by one flight a day, but larger aircraft types will be deployed on most of these routes. North America KLM and Northwest Airlines will further extend their successful joint venture this summer, with additional KLM-operated services to Minneapolis and Houston. Flight frequency between Amsterdam and Minneapolis will be raised from two to three daily roundtrips, while frequency between Amsterdam and Houston will increase from seven to nine weekly roundtrips. The number of weekly roundtrips between Amsterdam and Miami will be reduced from seven to five. KLM will deploy its new Boeing 777-200 ERs on routes to New York JFK and San Francisco in the summer of 2004. Capacity will be increased on daily services to Toronto by deploying Boeing 747-400s instead of Boeing 777s. Central & South America Flight frequency to Caracas will be raised from four to five weekly roundtrips as of May 1, 2004. Services to Sao Paulo will be operated by Boeing 777s in the summer of 2004. Asia/Pacific This summer, KLM will begin exercising its extended landing rights for China and Japan, operating daily roundtrips to Beijing, Shanghai and Tokyo. Several weekly flights to Shanghai and Tokyo will be operated with Boeing 777 equipment. Frequency to Almaty will be raised from three to four weekly roundtrips. Africa Frequency to Cape Town will be reduced from seven to five weekly roundtrips in response to seasonal traffic fluctuations. In the summer, these daytime flights will be operated with Boeing 777 equipment. Frequency on the Kilimanjaro and Dar-es-Salaam routes will be reduced from seven to five weekly roundtrips in April and May, which mark the rain season in these popular tourist destinations, traditionally resulting in a decline in traffic on these routes. KLMs flights to Cairo will be switched to different days, but frequency will be maintained at five weekly roundtrips Middle East KLM is still unable to commence services to Baghdad, owing to the continuing instability. Passengers bound for Baghdad are currently being flown to nearby Kuwait. The daily services to Dubai will be operated with Boeing 777 equipment during the summer. KLMs 2004 summer schedule can be found on http://www.klm.comand in reservations systems. KONINKLIJKE AHOLD: Completes Sale of Santa Isabel to Nexus Group ---------------------------------------------------------------- Ahold has reached an agreement with Grupo Interbank and a group of investors led by Nexus Group on the sale of Peruvian unit, Supermercados Santa Isabel S.A. The shares of Santa Isabel will be transferred through the Lima stock exchange. Santa Isabel listed its shares on the Lima stock exchange on December 5, 2003. The transaction is expected to close before year-end. The purchase price was not disclosed. Grupo Interbank is one of the largest financial groups of Peru, with investments in banking, mutual funds and insurance. Nexus Group is an active investor in Peru, with operations in entertainment and tourism. The divestment of Santa Isabel in Peru is part of Ahold's strategic plan to restructure its portfolio in order to focus on high-performing businesses and to concentrate on its mature and most stable markets. In this divestment process, Ahold sought a buyer willing to ensure business continuity, providing the best possible option for the customers, employees and suppliers of Santa Isabel and the stakeholders of Ahold. Ahold entered the Peruvian market in 1998. In terms of sales, Santa Isabel is the second largest food retailer in Peru, currently operating 35 stores, of which 8 hypermarkets, and employing approximately 5,000 associates. CONTACT: AHOLD Corporate Communications Phone: +31.75.659.57.20 NUMICO N.V.: Apollo Management Pays US$750 Million for GNC ---------------------------------------------------------- Royal Numico N.V. completed the sale of GNC (U.S.) to Apollo Management for US$750 million in cash on Friday. With this transaction, Numico has entirely withdrawn from the nutritional supplements sector. The proceeds of the transaction were received December 5, 2003. It will be used to pay down the dollar-denominated part of the existing senior bank loan facility. GNC was deconsolidated on the same day. With the completion of this transaction, Numico expects to be able to fully focus on its core businesses, Baby Food and Clinical Nutrition, and become a high-growth, high-margin specialized nutrition Company. Royal Numico is a specialized nutrition company with leading positions in Baby Food and Clinical Nutrition. The company operates in over 100 countries and employs approximately 11,000 people (http://www.numico.com) CONTACT: ROYAL NUMICO N.V. Investor Relations Phone: +31 79 353 9003 NUTRECO N.V.: Unveils Restructuring Plan for Dutch Operations ------------------------------------------------------------- Nutreco's subsidiary for fresh poultry products in the Benelux, Pingo Poultry, bared the measures taken to carry out the restructuring of its activities in the Netherlands, which was announced earlier this year. Around 125 jobs (FTE) will be lost. Pingo Poultry will make every effort, in conjunction with the trade unions and works council, to re-employ as many employees as possible within its own company or other Nutreco companies. Earlier this year, Nutreco announced that the drastic consequences of the outbreak of Avian Influenza for the poultry sector necessitated a restructuring of its poultry activities in the Benelux. Pingo Poultry will further concentrate its activities on the production of fresh poultry and poultry products for large supermarket chains in the Netherlands and Belgium. Other segments supplied include the industrial food market and the food service industry in North-West Europe. In September 2003, Pingo Poultry announced a reorganization of its Belgian activities. The production location in Stevoort has since been closed and all Belgian activities are now concentrated in Maasmechelen. The Dutch headquarters of Pingo Poultry were also reorganized. Pingo Poultry plans to close the production location in Cuyk, while the activities in Mierlo (Brabant) will be expanded. The production in Goor (Overijssel) will be continued. In the new situation for the Netherlands and Belgium, the company will employ approximately 1,040 employees at three production locations. The total costs of the restructuring of the Dutch and Belgian activities, including asset write-offs, are estimated to be around EUR14 million. These costs will fully materialize in the second half of 2003. Nutreco Holding N.V. Nutreco Holding N.V. is an international company with leading positions in high-quality food for human and animal consumption. The company is present at various stages of the fish, poultry and pork production chains. These activities are organized into two Business Streams, Nutreco Aquaculture and Nutreco Agriculture. Eight Business Groups with eighteen Business Units operate within these Streams, incorporating more than 120 production and processing plants in 22 countries with approximately 13,000 employees. Since its flotation in June 1997, Nutreco made acquisitions in the Netherlands, Spain, Germany, Canada, Poland, Chile, France, Portugal, Scotland, Belgium, Hungary, Norway, Australia and the United States of America. Nutreco's sales in 2001 were EUR3,835.3 million. Nutreco is quoted on the Official Segment of the stock market of Euronext (Amsterdam) and is included in the Amsterdam Midkap Index, the Euronext 150 Index and the Next Prime Index (Euronext). =========== N O R W A Y =========== AKER KVAERNER: To Trim down Debt by NOK350 Mln Before Year Ends --------------------------------------------------------------- Aker Kvaerner will repay about NOK350 million of debt by the end of this year, and thereby reduce the outstanding balance on debt maturing December 31, 2004. In doing so, the company applies some of its surplus liquidity to reduce debt and thereby current interest charges. Cash and bank deposits in the group totaled NOK5.2 billion at September 30. The outstanding balance on the three-year credit before the partial repayment is roughly NOK3.5 billion. For the bondholders in "Flytende rente Kvaener ASA obligasjonslan 2002/2004" with ticker KVI 55 on the Oslo Stock Exchange the partial repayment will be made by a drawing among bondholders registered in VPS on December 18, 2003. Aker Kvaerner ASA is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner spans a number of industries, including Oil & Gas production, Refining & Chemicals, Pharmaceuticals & Biotechnology, Mining & Metals, Power, Pulping and Shipbuilding. Aker Kvaerner has aggregated annual revenues of approximately US$6 billion and employs around 29,000 employees in more than 30 countries. CONTACT: AKER KVAERNER Investor relations Tore Langballe, Vice President Investor Relations Phone: +47 67 51 31 06 =========== P O L A N D =========== NETIA HOLDINGS: Posts Changes in Share Capital ---------------------------------------------- Netia S.A. (WSE: NET), Poland's largest alternative provider of fixed-line telecommunications services, announced its share capital has increased in connection with the exercise of certain warrants issued by Netia. (a) Share Capital As of December 1, 2003, Netia's issued and outstanding share capital was PLN344,393,550 and represented 344,393,550 shares, PLN1 par value per share, each share giving right to one vote at Netia's general meeting of shareholders. A motion for the registration of the share capital increase by the Polish court was filed on December 8, 2003. (b) Warrants Issued. As of December 1, 2003, Netia issued 348,338 series J shares pursuant to the exercise of 220,717 two-year subscription warrants and 127,621 three-year subscription warrants by their holders at an issue price of PLN2.53 per share. Each series J share entitles its holder to one vote at Netia's general meeting of shareholders. Netia's series J shares are publicly traded on the Warsaw Stock Exchange under the same code as all other ordinary shares of Netia i.e. PLNETIA00014. The subscription warrants were exercised in accordance with Netia's Polish prospectus, dated April 17, 2002, as amended. (c) Outstanding Warrants As of December 2, 2003, these warrants were traded on the Warsaw Stock Exchange: (i) 32,203,504 two-year subscription warrants were traded on Warsaw Stock Exchange under the ticker "NETPPO2, entitling their holders to subscribe for Netia's series J shares by April 29, 2005; and (ii) 32,296,600 three-year subscription warrants were traded on Warsaw Stock Exchange under the ticker "NETPPO3, entitling their holders to subscribe for Netia's series J shares by April 29, 2006. (d) Updated Information on Netia's Share Capital Current information on Netia's share capital increases is constantly updated and made available at the Polish National Depositary for Securities and Warsaw Stock Exchange as well as on Netia's website (http://www.investor.netia.pl). The share capital as currently registered by the Polish court, in the amount of PLN 344,393,130, reflects the status as of November 1, 2003, and will be amended following the consideration of a motion for the share capital increase filed with the court on December 8, 2003. Share capital increases in connection with the exercise of Netia's outstanding warrants will be announced both in Poland and in the U.S. in the form of a press release once a month by the 8th day of each month, and, in addition, each time in the event of an exercise of warrants constituting 5% or more of all warrants issued by Netia. CONTACT: NETIA Anna Kuchnio, Investor Relations Phone: +48-22-330-2061 =========== S W E D E N =========== ELANDERS AB: To Shut down Excess Operation in Trelleborg -------------------------------------------------------- Elanders continuously adjusts capacity based on market conditions in the regions and segments where the Group is active in order to be competitive in the long run. The Group also works successfully on raising productivity in its various production units, which gradually increases available capacity. Large volumes, primarily in the mobile telephone segment, have previously been placed in Elanders' foreign plants as a result of customer relocation. The market in the Skane region for certain types of printing is and has been in decline. With all these factors combined it is no longer profitable for Elanders to maintain two similar operations so geographically close to each other in Skane. Operations in Berlings Skogs AB in Trelleborg will be phased out and 48 employees have been given notice conditional upon customary union negotiation, which will begin immediately. The operations are expected to be shut down by the end of the first quarter in 2004. The decision to close the unit in Trelleborg and direct resources to the unit in Malmo is based on the strategic importance for the Group's development Elanders places on being located in Sweden's third largest city and within the Oresund region. The cost of closing down the Trelleborg unit charges Group profits for 2003. The previous forecast presented by Elanders for 2003 of pre-tax profits of around SEK50 million and a continued positive cash flow remains the same. CONTACT: ELANDERS AB Patrick Holm, President and CEO Phone: +46 300 50 195 +46 708 210 410 ===================== S W I T Z E R L A N D ===================== ABB LIMITED: Final Asbestos Hearing Moved to February 4 ------------------------------------------------------- The Pennsylvania-based Third Circuit Court of Appeals has rescheduled the final hearing of ABB Limited's asbestos case from January 12 to February 4, 2004, AFX News agency reported Friday, citing the company. According to the report, the postponement was due to administrative reasons. The company said although there has been a change in the schedule of the hearing, it will not affect the outcome, which it expects would be favorable to the company. "The change in schedule is of no significance for the outcome of the hearing... we are confident our plan will be confirmed," ABB said. In June, TCR-Europe said a proposed US$1.2 billion asbestos settlement was approved by Delaware bankruptcy Judge Judith Fitzgerald on the condition that the company will provide documents about its efforts to find people who had claims only against ABB Lummus or Basic Inc. and what the company did to get their votes for the plan. Thirteen claimant groups have lodged appeals against the proposed settlement. ABB's asbestos suit stems from its U.S. unit Combustion Engineering that produced boilers that were insulated with the cancer-causing fiber. More than 100,000 people have sued ABB, claiming to have come in contact with asbestos. The unit filed for bankruptcy on February 17 with a pre-negotiated reorganization plan to deal with millions of dollars in asbestos-related personal injury claims. ABB LIMITED: To Complete US$2 Billion Divestment Next Year ---------------------------------------------------------- ABB Limited's disposal program could generate US$2 billion for the troubled company, which is aiming to reduce debt to US$6.5 billion by year's end. According to Intesatrade, ABB Chief Financial Officer Peter Voser told German weekly Euro am Sonntag the company already generated US$860 million from the sell-offs. "[A]round US$1.1 billion is still to come... We will complete this in 2004," Mr. Voser said. ABB is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. It is currently disposing assets, including a power network and the Red Bank coal-powered electricity station in Australia, to reduce a debt that has reached US$8.3 billion at the end of the second quarter. SAS GROUP: Braathens Further Strengthens Competitiveness -------------------------------------------------------- In the presentation of the SAS Group's third-quarter interim report, the measures to be taken within Braathens as part of Turnaround 2005 were specified at SEK500 million. These measures are being implemented. At a Board meeting of Braathens it was decided to initiate additional measures amounting to SEK500 million, which means that Braathens' total savings within Turnaround 2005 amount to SEK1,000 million. The new cost reductions will further strengthen Braathens' competitiveness in relation to low-cost competitors in the Norwegian market. With this action, Braathens establishes the foundation for being able to compete at the price levels currently prevailing on the market and in the future with satisfactory profitability. The effects from the new measurements in Braathens will mainly take effect during 2004, and partly in 2005. Full effect will take place as from 2006. All airlines in the SAS Group are currently implementing actions to secure a strong position in the various markets with competitive prices. Scandinavian Airlines and Braathens have carried out several price reductions as a result of cost improvements. With the new measures, Braathens will achieve a total unit cost of about NOK0.60 per available seat kilometer (ASK). As opposed to the purely low-cost companies, Braathens will retain some of the service elements such as transfers, transit check-in, baggage transfer and interlining with other airlines. These service elements are important to all of the passengers who travel with several connections. With a unit cost of NOK0.60 per seat kilometer (ASK), Braathens achieves a cost level that is fully competitive with both Norwegian and international low-cost airlines and further strengthens Braathens' competitiveness in relation to other carriers. Compared with the current unit costs level of about NOK0.76, this represents a unit cost reduction of about 20%. Unit costs are the base for airlines' competitiveness, price level and profitability. The additional measures now approved for implementation within Braathens comprise a broad number of activities such as increasing productivity of the aircraft, pilots, cabin crews and administration. Braathens will also focus on increased Internet sales and ticket-less travel. The measures involve improvements and efficiency enhancements within all parts of Braathens' organization. "The new measures will give Braathens a significantly improved competitiveness and strengthen Braathens' position on the Norwegian market as an efficient and inexpensive supplier of travel, both domestic and to Southern Europe, but with a full-service product that the low-cost companies cannot deliver," says Knut Solberg, President of Braathens. "We have noted that our largest competitor on the Norwegian domestic market via the media has steadily referred to Braathens and moreover stated that the costs between the companies differed considerably in 2003 and that this difference will be even greater in the future. This is incorrect. This year Braathens has a unit cost that is on par with the level given by Norwegian as its unit cost during 2003. As a result of the new measures, in the future we will be able to compare ourselves with any other carrier," says Solberg. SAS GROUP: Group Passenger Load Factor Dips Slightly in November ---------------------------------------------------------------- Market trends and yield development The traffic development in November showed a small increase, but with reduced passenger yields across all airlines in the Group. Overall passenger load factor decreased 1.1 p.u. and passenger traffic increased by 0.5% during November. In general, growth has improved slightly on European and intercontinental routes, but the domestic and Intrascandinavian markets are still characterized by weak demand. Braathens traffic increased in November driven by the positive development on international routes. Adjusted for a method change Spanair's traffic increased in November with improved load but with reduced yields. A slightly reduced overall yield decrease was expected for October compared with earlier months and the outcome showed yields down 10.1% month by month and 12.4% for the period Jan- Oct. Yields on the European routes were down approx 18% in October. The overall yield development in October showed some improvements compared with previous months, but indications for the last two months of 2003 shows continued pressure on yields. Price cuts were implemented in Scandinavia as from October 26 and it will push yields further as from November by approx. 2-3% vs. 2002. The restructuring plan "Turnaround 2005", is proceeding according to plan in order to secure a sustained profitability level in a lower yield environment. Due to the situation with continued yield pressure, the outlook remains cautious. Scandinavian Airlines (a) Scandinavian Airlines traffic (RPK) decreased by 1.3% in November 2003 compared with 2002. (b) Scandinavian Airlines passenger load factor decreased by 1.6 p.u. to 61.8% Demand on the long haul routes showed some strength during November. Intercontinental traffic in November increased by 0,4% vs. 2002 and load factors improved by 2.9 p.u. Traffic on the European routes was up 4.5%. Snowflake has its low season now and showed a load factor slightly below 50%. Intrascandinavian traffic was characterized by slow demand. Norwegian domestic market has improved compared with previous months, while demand on Swedish domestic routes has weakened significantly. Internet Sales The proportion of Internet sales on http://www.scandinavian.net was 5,1% in October 2003 compared with 1,7% in October 2002. Punctuality Within 15 minutes 89,8% of flights departed on time and within 2 minutes 66.1% of flights departed on time. Spanair traffic development Spanair adjusted to the seasonal variations and reduced the total capacity slightly in November. The overall ASK decreased by 4.0% and the RPK with 3.6% compared to last year. Within the domestic network, capacity has been moved from the Balearic Islands to the Canary Islands and also to routes within the Iberian Peninsula. Compared to November last year, the domestic ASK decreased by 1.4% and the RPK by 5.1%, resulting in a 2.1 p.u. lower load factor. Generally, the European markets developed slower than the domestic but through a careful capacity adjustment, Spanair managed to increase the load factor with 6.3 p.u. The ASK was 11,1% lower than last year while the RPK grew with 1.9%. The route between Madrid-Frankfurt expanded from two to three daily flights in May 2003. Valencia-Munich developed from 1 to 2 daily flights compared to November last year compensating for the cancellation of Malaga-Munich from the beginning of September. The route Madrid-Stockholm is temporarily suspended until summer 2004. Last year "part charter" flights were accounted as schedule, but are not included in the figures since January 2003. Adjusted for this method change overall ASK grew by 3.5% compared to last year, RPK grew by 6% and load factor grew with 1.1 p.u. to 52.6%. Braathens traffic development: Braathens scheduled passenger traffic (RPK) showed an overall increase of 15.5% in November 2003 vs. November 2002 and the number of passengers increased by 1.0%. Capacity (ASK) increased by 11,4% and the passenger load factor increased by 2.0 p.u. to 55.5%. The Norwegian domestic routes showed a 2.6% decrease in RPK while ASK increased by 1.1 % in November 2003 vs. November 2002. Domestic passenger load factor decreased by 2,0 p.u. to 51,9% in November 2003 vs. November 2002. The increase in number of passengers, RPK and ASK on international routes reflects the opening of new routes on March 30, 2003. Passenger load factor on international routes increased by 14.9 p.u. to 66.9% in November 2003 vs. November 2002. Wideroe's traffic development Total number of passengers was reduced by 0.8% in November compared with last year. However, traffic in RPKs was up by 0.9%, as a result of increased average distance. With a capacity increase of 0.8%, overall load factor increased slightly to 52.7%. Load factor on the domestic sector developed positively, but on the U.K. market the load factor declined as traffic did not increase in line with capacity. Blue 1's traffic development Blue1's total passenger traffic (RPK) increased with 58% compared to last year and the capacity (ASK) increased with 56%. With a passenger increase of 52%, Blue1 continued to gain market share. =========================== U N I T E D K I N G D O M =========================== AMP LIMITED: Demerger Plan Approved with 'Overwhelming' Majority ---------------------------------------------------------------- AMP Limited shareholders have overwhelmingly approved the demerger proposal to create two regionally based companies. Pending Federal Court approval, the two entities -- AMP in Australasia and HHG in the United Kingdom -- will be operating independently by the end of the year. AMP Chairman Peter Willcox said the AMP Board was delighted that shareholders had endorsed the demerger proposal, which has unanimously recommended by the Board. Shareholders approved three resolutions at an Extraordinary General Meeting in Sydney. All three resolutions were passed with large majorities. The vote on the demerger resolution attracted an overwhelmingly positive result with 99.35% of shares voted in favor. Mr. Willcox said he was particularly pleased with the shareholder vote, the highest at an AMP meeting since demutualization. A total of 142,717 AMP shareholders or almost 15% of the shareholder base voted either by proxy or at the meeting. At the 2003 Annual General Meeting, just 4.7% of shareholders voted. "Today's historic vote by shareholders to approve the demerger is a defining moment for AMP," Mr. Willcox said. "Shareholders have been justifiably angry with the post-demutualization performance of AMP and the new Board and management team were determined to deal with the issues of the past." "From the moment the Board announced the demerger proposal in May, our aim has been to create two strong, viable companies -- AMP and HHG -- that will have better opportunities as separate businesses, than if they continued to be managed together. "With the process almost complete, each company will now be focused on strong improvement in operating performance to deliver better long-term value to shareholders." The final step to make the demerger effective will be Court approval of the Scheme of Arrangement. AMP expects the Court hearing to commence December 11 and hopes to be completed by Monday, December 15. On December 16-17, AMP shares will be placed in a trading halt to allow the institutional bookbuild for the AMP Rights Offer to proceed. The fully underwritten Rights Offer will raise AU$1.2 billion, which will be used to redeem AMP's Reset Preferred Securities (RPS). The bookbuild price and outcome of the Rights Offer will be announced on December 17. AMP shareholders who participate in the Rights Offer will receive a 10% discount to the bookbuild price. On December 18 AMP shares will begin trading as the new AMP, without entitlement to HHG shares. If the HHG capital raising proceeds, the offer price is expected to be announced on December 22. HHG shares are expected to list on the London and Australian Stock Exchanges on December 22 and 23 respectively. Shareholders should receive their HHG shares certificates/holding statements, along with an information pack, in early January 2004. For AMP shareholders who participate in the AMP Rights Offer, statements for their additional shares in AMP should also be received in early January. Shareholders who choose not to participate in the AMP Rights Offer should receive their payment of 8.2 cents for the value of their rights at this time. It is expected that RPS Holders will be issued a notice of redemption on December 23 and redemption payments received by January 14, 2004. In terms of Capital Adjustment Resolution approved by shareholders [yesterday], the proportion of total AMP shares to be cancelled will be calculated by reference to the volume weighted average price (VWAP) of AMP shares sold on the Australian Stock Exchange for the ten business days prior to [yesterday's] meetings. The VWAP price is AU$5.91. For further details of the calculation, refer to section 3.2.2 of the EM. To view voting results: http://bankrupt.com/misc/amp_limited01.pdf To view related notification by HHG Plc: http://bankrupt.com/misc/amp_limited02.pdf To view Chairman's address to the shareholders: http://bankrupt.com/misc/amp_limitedO3.pdf CONTACT: AMP LIMITED Media Inquiries Karyn Munsie Phone: +61 2 9257 9870 0421 050 430 Matthew Coleman Phone: +61 2 9257 2700 0421 611 138 Investor Inquiries Mark O'Brien Phone: +61 2 9257 7053 CABLE & WIRELESS: U.S. Unit Files for Chapter 11 Bankruptcy ----------------------------------------------------------- Cable and Wireless plc announced on June 4, 2003 its intention to exit its U.S. businesses for the least cost, compatible with taking into account customers' interests. In November 2003 it highlighted that to make the business more commercially viable it had reduced operating losses, cash outflow, headcount, outstanding lease obligations and the number of data centers. In reporting progress at the interim results in November, the company described a more formal separation from Cable & Wireless America. On Monday, Cable and Wireless plc announces that an affiliate of Gores Technology Group LLC has entered into an agreement with its subsidiaries Cable & Wireless USA and Cable & Wireless Internet Services, together called Cable & Wireless America (CWA), to acquire substantially all of the assets of CWA for a sum of $125 million payable on the terms discussed in more detail below. As a condition of the Asset Purchase Agreement and at the request of Gores Technology, CWA has agreed to conduct the sale of the U.S. Businesses under Chapter 11 Section 363 of the U.S. Bankruptcy Code. The Chapter 11 filing made on Monday by CWA will facilitate the sale by permitting a restructuring of CWA to create a substantially lower cost base, primarily through the elimination and renegotiation of certain lease and other contractual commitments. Other qualifying bidders will have an opportunity to submit higher and better offers for the U.S. Businesses through a court-supervised competitive bidding process. The offer from Gores comprises US$50 million in cash and $75 million in a loan note from Gores Technology, in each case to be delivered on completion of a sale of the U.S. Businesses to Gores Technology. It is subject to closing adjustments based on business performance targets, which have been set for working capital, revenue and certain overhead expenses. Although the Purchase Price could be reduced if CWA does not achieve these targets, under the terms of the Asset Purchase Agreement, it cannot be reduced to less than $50 million. CWA expects the Purchase Price from the asset sale process will be applied to satisfy outstanding liabilities of CWA in accordance with the U.S. Bankruptcy Code. Francesco Caio, CEO, Cable and Wireless plc, said: "As I said last June, we were looking for ways to achieve a least cost exit, whilst taking account of our customers' interests. I am therefore pleased we have found a solution that will allow the U.S. Businesses to have a positive future under new ownership." He added: "One of our key priorities is ensuring that we maintain service for customers, whether they are U.S. based customers, or international customers requiring services to, from and within the U.S., and we will keep customers appropriately informed." Richard Lapthorne, Chairman, Cable and Wireless plc said: "The use of Chapter 11 is a well-recognized procedure in the U.S. to sell and restructure businesses, and should enable an orderly transition. The Cable and Wireless plc Board believes that this route to exit our U.S. operations is in the best interests of the group, shareholders, customers and employees.' Cable and Wireless plc will continue to be a major service provider to customers whose international communications needs include services to, from and within the U.S. To provide these services independently of CWA, Cable and Wireless plc has established new, appropriately sized facilities, service delivery platforms and access provision for the U.S., all connected to its international network. The U.S. businesses will continue to provide IP and Hosting services to its customers and operate the U.S. Businesses in the ordinary course throughout the court-supervised auction process. To provide CWA with cash to meet its ongoing obligations to customers, employees and suppliers during this period, Cable and Wireless plc has signed an agreement with CWA to provide up to $100 million of funding (known as `debtor-in-possession' financing). Cable and Wireless plc cannot determine the final precise cost of the U.S. exit process being executed through Chapter 11 until it has been completed. However, at this stage, Cable and Wireless plc expects that the remaining cash costs of exit to the Group, including the `debtor-in-possession' financing, from October 1, 2003 to completion should not exceed GBP300 million. Notwithstanding the installation of alternative facilities to continue to support customers, Cable and Wireless plc expects there to be a consequential impact of the sale of the U.S. Businesses on the revenues and costs of certain of its other subsidiary companies. Cable and Wireless plc currently estimates that the aggregate of these impacts could result in a reduction in operating profits in the remaining quarter of this financial year in the range GBP10 million - GBP15 million. Cable and Wireless plc currently expects this impact to reduce in future years. The net assets of the Group's interest in the U.S. as at September 30, 2003, excluding inter-Group balances, was a net liability of approximately GBP500 million, of which the net assets of CWA constitute the substantial part. The operating loss before exceptional items of the U.S. Businesses in the half-year to September 30, 2003 was GBP50 million as reported in the interim results announcement. These figures are unaudited. Cable and Wireless plc and its other subsidiaries will continue to operate as normal during this process. In addition, the listing and trading of Cable and Wireless Plc's shares on the London Stock Exchange and on the New York Stock Exchange will not be affected by the auction process or sale of the U.S. Businesses. Cable and Wireless plc expects the asset sale process to be completed by the end of the current financial year, ending March 31, 2004. This press release was issued on Monday by CWA: Cable & Wireless USA Inc. and Cable & Wireless Internet Services, Inc. (CWA), wholly-owned subsidiaries of Cable and Wireless plc (NYSE: CWP; LSE: CW), announced that they, together with their subsidiaries, have entered into an asset purchase agreement with an affiliate of Gores Technology Group, LLC for the sale of their hosting and IP solutions businesses. In accordance with the terms of this agreement and to facilitate the sale transaction, CWA filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code. During the sale transaction CWA will continue to operate and focus on its core competencies of hosting and IP services while delivering uninterrupted customer service. Under the terms of the Asset Purchase Agreement, which is subject to Bankruptcy Court approval, an affiliate of Gores Technology Group, LLC will acquire substantially all of the assets of CWA for $125 million. The offer from Gores comprises $50 million in cash and $75 million in a note from Gores Technology, in each case to be delivered on completion of a sale of the U.S. Businesses to Gores Technology. It is subject to closing adjustments based on business performance targets, which have been set for working capital, revenue and certain overhead expenses. Although the Purchase Price could be reduced if CWA does not achieve these targets, under the terms of the Asset Purchase Agreement, it cannot be reduced to less than $50 million. The Purchase Price from this process will be applied to satisfy outstanding liabilities of CWA in accordance with the U.S. Bankruptcy Code. In accordance with Section 363 of the Bankruptcy Code, qualifying bidders will have an opportunity to submit higher and better offers through a court-supervised competitive bidding process. CABLE & WIRELESS: Names John Dubel Chief Executive of U.S. Unit --------------------------------------------------------------- John S. Dubel has joined the U.S. business as chief executive officer along with Eric A. Simonsen, who joins the U.S. business as chief restructuring officer and chief financial officer. Both are principals of AlixPartners LLC. Mr. Dubel and Mr. Simonsen have extensive experience in restructuring and turnaround services for organizations such as WorldCom, Acterna and other Fortune 500 companies. Continuous Customer Service "[The] actions provide a clear path to a much stronger organization," stated John S. Dubel, CWA's new chief executive officer. "Fulfilling the needs of our customers remains our number one objective, and this sale represents a very positive outcome for them. Throughout the sale process, continuity of service will be maintained for our customers," Mr. Dubel stated. "CWA's products and market position are strong, its technology is leading-edge, and there is significant value in the core business. That is why we determined that a sale of the business was in the best interests of all CWA's constituents and would support the continued development of the business in an expanding market going forward." CABLE & WIRELESS: U.S. Business Secures DIP Financing ----------------------------------------------------- CWA also announced that it has received a commitment for up to $100 million in debtor-in-possession financing from Cable and Wireless plc, subject to Bankruptcy Court approval. The debtor-in-possession financing will be used to maintain uninterrupted business operations through the completion of the sale transaction. "With the availability of up to $100 million in debtor-in-possession financing our customers and employees should be reassured that we will continue business as usual through the completion of the sale transaction," said Clint Heiden, executive vice president of sales for CWA. CABLE & WIRELESS: Unveils Wide-ranging Cost-cutting Plan -------------------------------------------------------- Streamlining Operations Through the Chapter 11 and sale transaction processes CWA will be taking further cost reduction steps. The measures include network consolidation and rationalization, contract renegotiations and the continuation of previously announced headcount reductions. Over the past year CWA has successfully implemented a series of initiatives to reduce costs and streamline operations, including headcount reductions and the closure of eight underutilized data centers while successfully migrating customers to the 15 remaining data centers. Pre-exceptional operating losses were reduced by GBP100 million and free cash outflow by GBP156 million compared to the second half of 2002/03. Background Following a strategic review of all its businesses, on June 4, 2003, Cable and Wireless plc announced its decision to withdraw from the U.S. domestic market. Cable and Wireless plc fully supports and endorses the decision of the Board of CWA to enter into the sale agreement and to commence proceedings under Chapter 11. CWA with their subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware in Wilmington. The filing entities include Cable & Wireless USA Inc., Cable & Wireless Internet Services, Inc., Cable & Wireless USA of Virginia, Inc., Exodus Communications Real Property I, LLC, Exodus Communications Real Property Managers I LLC and Exodus Communications Real Property I, LP. Cable & Wireless America (CWA) is among the leading providers of complex hosting and IP solutions for global enterprises, counting 40% of the Fortune 100 among their customers. Their portfolio of services includes a wide range of flexible and secure IP connectivity and networking solutions along with complete and secure infrastructure to support complex web hosting. CWA is part of the Cable & Wireless group, whose principal operations are in the United Kingdom, continental Europe, the United States, Japan, the Caribbean, Panama, the Middle East and Macau. For more information about CWA, go to http://www.cwusa.comfor Chapter 11 information About Cable and Wireless plc Cable & Wireless is one of the world's leading international communications companies. It provides voice, data and IP (Internet Protocol) services to business and residential customers, as well as services to other telecoms carriers, mobile operators and providers of content, applications and internet services. Cable & Wireless' principal operations are in the United Kingdom, continental Europe, the United States, Japan, the Caribbean, Panama, the Middle East and Macau. For more information about Cable and Wireless plc, go to http://www.cw.com About Gores Technology Group, LLC. Gores Technology Group, LLC is a private investment firm focused on the technology and telecommunications sectors. The firm combines the seasoned M & A team of a traditional financial buyer with the operational expertise and detailed due diligence capabilities of a strategic buyer. Gores has a long standing record of creating sustainable value in its portfolio companies by focusing on customers and employees, supporting management with operational expertise and providing the capital required for growth. Headquartered in Los Angeles, California, Gores maintains offices in Boulder, Colorado; New York, New York; London, United Kingdom; and Zurich, Switzerland. (http://www.gores.com) An interview with Francesco Caio, CEO of Cable and Wireless plc, is now available in video, audio and text on http://www.cw.com and on http://www.cantos.com CONTACT: CABLE AND WIRELESS PLC Investor Relations: Louise Breen Phone: 020 7315 4460 Caroline Stewart Phone: 020 7315 6225 Virginia Porter Phone: +1 646 236 1758 CABLE & WIRELESS: Case Summary & 20 Largest Unsecured Creditors --------------------------------------------------------------- Lead Debtor: Cable & Wireless USA, Inc., A Delaware corporation 11700 Plaza America Drive Reston, Virginia 20190 Bankruptcy Case No.: 03-13711 Debtor affiliates filing separate chapter 11 petitions: Entity Case No. ------ -------- Cable & Wireless USA of Virginia, Inc. 03-13712 Cable & Wireless Internet Services, Inc. 03-13713 Exodus Communications Real Property I, LLC 03-13714 Exodus Communications Real Property Managers I, LLC 03-13715 Exodus Communications Real Property I, LP 03-13716 Type of Business: Provider of Internet access services, Internet backbone services, domain name registration services, web page design services, Internet hosting services, and telecommunications- related services. Chapter 11 Petition Date: December 8, 2003 Court: District of Delaware (Delaware) Judge: Peter J. Walsh Debtors' Counsels: Curtis A. Hehn, Esq. Laura Davis Jones, Esq. Pachulski Stang Ziehl Young Jones 919 North Market Street 16th Floor Wilmington, DE 19801 Tel: 302-652-4100 Fax: 302-652-4400 Estimated Assets Estimated Debts ---------------- --------------- Cable & Wireless USA, Inc. $50M to $100M more than $100M Cable & Wireless USA of $0 to $50,000 $0 to $50,000 Virginia, Inc. Cable & Wireless Internet more than $100M more than $100M Services, Inc. Exodus Communications Real $0 to $50,000 $50M to $100M Property I, LLC Exodus Communications Real $10M to $50M $50M to $100M Property Managers I, LLC Exodus Communications Real $0 to $50,000 $50M to $100M Property I, LP Debtor's 20 Largest Unsecured Creditors: Entity Nature Of Claim Claim Amount ------ --------------- ------------ L&B Tysons Commerce Center Leased Real Property $590,559 c/o L&B Institutional Property Managers, Inc. 8750 N. Central Expressway, Suite 800 Dallas, TX 75231-6437 909 Third Company, LP Leased Real Property $495,374 c/o MRC Management, LLC 330 Madison Avenue New York, NY 10017 Ernst & Young LLP Leased Real Property $449,517 1300 Huntington Building 925 Euclid Avenue Cleveland, OH 44115 Vertical Communications, Trade Debt $399,284 Inc. 1095 Avenue of the Americas New York, NY 10036 Alcatel USA Sourcing LP Leased Real Property $363,670 8280 Greensboro Drive, Suite 601 McLean, VA 22102 GTE North Pennsylvania Trade Debt $308,736 c/o Vertical Communication 1095 Avenue of the Americas New York, NY 10036 Augustine Partners II Leased Real Property $298,632 c/o Menlo Iniquities Management Company 2901 Tasman Drive, Ste. 220 Santa Clara, CA 95054 Alcatel Network Systems Trade Debt $266,755 15036 Conference Center Drive Chantilly, VA 20151 Nortel Networks Inc. Trade Debt $212,470 U.S. West Trade Debt $207,259 One Bay Plaza Associates Leased Real Property $178,045 Walton 311 Wacker Investors Leased Real Property $139,666 III Conshohocken Associates LP Leased Real Property $93,315 AT&T Trade Debt $83,014 Amberjack Leased Real Property $82,475 MCI Trade Debt $63,620 Cypress Center LLC Leased Real Property $62,540 Medwell Associates Leased Real Property $64,472 Boyd Enterprises Utah, LLC Leased Real Property $53,685 Crescent Real Estate Funding Leased Real Property $53,150 EURODIS ELECTRON: Sales Fail to Recover as Expected --------------------------------------------------- In the second quarter to November 30, 2003, Group sales have been substantially higher than the first quarter, but the rate of recovery still remains below expectations. Reports on the global electronic component industry continue to show positive trends, driven principally by demand in Asia, and analysts continue to be positive on the prospects for the European market. The Board thus expects to see an upturn in its market, though the timing of this remains difficult to predict. Proposed additional financing As announced on October 24, 2003, working capital management remains a priority for the Board and considerable progress has been made in improving the Group's working capital utilization. Having reviewed the Group's requirements, including, inter alia, working capital implications of market growth, the Board has now concluded that it should raise additional equity and has initiated discussions with its existing and potential shareholders to secure such finance in the next three months. During this process, the Group will confirm the continuing support of its principal bankers. A further announcement will be made as appropriate. CONTACT: EURODIS ELECTRON PLC Phone: 01737 242464 Doug Rogers Steve Swayne Peter Grant Bell Pottinger Phone: 020 7861 3232 John Coles HOLLINGER INC.: Axel Springer Eyeing Telegraph, Says Report ----------------------------------------------------------- German newspaper publishing group, Axel Springer, is among the interested groups looking into the U.K. flagship Telegraph titles of Hollinger Inc., the Financial Times reported, according to AFX. The report said Springer's lawyers are examining the legal complexities involved in a cross-border bid for the Telegraph group, which includes The Daily and Sunday Telegraph. If successful, the transaction would be Axel Springer's first attempt to establish itself in the U.K. The possible sale of Hollinger's business in the U.K. came out after the resignation of its chief executive, Lord Conrad Black. His departure marks the culmination of a two-year investigation launched into a controversial payout he awarded himself. The asset has attracted The Washington Post Co, Daily Mail & General Trust, Tony O'Reilly's Independent News & Media, venture capital groups Candover, Apax and 3i, the Barclay Brothers, and Richard Desmond, owner of Express Newspapers, according to the report. LONDON CLEARING: Submits Petition for Scheme of Arrangement ----------------------------------------------------------- Notice is hereby given that a Petition was presented to Her Majesty's High Court of Justice, Chancery Division on November 27, 2003 for the sanction of a Scheme of Arrangement and the confirmation of the reduction of share capital of the above named Company And notice is further given that the said Petition is directed to be heard before the Judge of the Companies Court at the Royal Courts of Justice, Strand, London WC2A 2LL on Thursday, December 18, 2003. Any Creditor or shareholder of the said Company desiring to oppose the making of an Order for the confirmation of the said reduction of share capital should appear at the time of the hearing in person or by Counsel for that purpose A copy of the said Petition will be furnished to any person requiring the same by the undermentioned Solicitors on payment of the Regulated Charge for the same. Clifford Chance Limited Liability Partnership 10 Upper Bank Street, London E14 5JJ (Ref:KO/L1255/02661) Solicitors to the Company SAFEWAY PLC: Trade Ministry Recommences Bidding ----------------------------------------------- Trade Secretary Patricia Hewitt published the agreed undertakings in relation to offers for Safeway on Monday, effectively restarting the long-running takeover attempt for the supermarket group. WM Morrison's announcement in January of an agreed GBP2.9 billion all-share deal to buy Britain's fourth-biggest supermarket chain, started a takeover battle among Safeway rivals. But the Competition Commission blocked the potential bids from Tesco, Asda/Wal-Mart and J Sainsbury by putting tight rules on store disposals. The Office of Fair Trading set that Wm Morrison disposes 53 stores under its buyout agreement. It also tried to make sure Tesco, Asda/Wal-Mart and Sainsbury would not contest the bid, and that rules are put in place regarding their acquisition of some of the 53 stores. Now that the undertakings have been agreed and published Wm Morrison has 21 days, or until December 29, to launch a fresh bid. The chairman of Wm Morrison, Sir Ken Morrison, is yet to reopen talks with David Webster, his counterpart at Safeway, according to the Telegraph. Once he submits a bid, he has 28 days to post the offer document, and one month to complete the offer. SKANDIA U.K.: Chief Executive Justifies Lucrative Bonus ------------------------------------------------------- The chief executive of Skandia U.K. insisted on the legality of the multi-million-pound bonus he received through a controversial incentive scheme devised by the former executives of Skandia's parent company. Alan Wilson told the Financial Times he had no knowledge of mismanagement at Skandia Insurance, and that the CHF111 million bonus he received between 1997-2000 in addition to his GBP400,000 in salary were justified because they were linked to performance. When it was pointed out that the bonuses were bigger than what executives from high-profile insurance companies receive, he said: "It's more often difficult to run a smaller company." An independent report into the management of Swedish company Skandia Insurance, which came out last week, criticized former company leaders of greed and deception. It emerged that the firm's top management awarded themselves huge bonuses and unauthorized perks. Mr. Wilson was not directly reproved in the report. Since Mr. Wilson became managing director in 1991, assets under management have grown from GBP1 billion to GBP15 billion. He received no bonus in 2001 and since 2002, a more modest bonus scheme has been introduced. ********* 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., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Larri-Nil Veloso, Ma. Cristina Canson, and Laedevee Gonzales, Editors. Copyright 2003. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. 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