/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/040108.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 Thursday, January 8, 2004, Vol. 5, No. 5 Headlines F R A N C E ARIANESPACE: Lower Operating Costs Key to 2003 Breakeven ARIANESPACE: Declares 2003 Banner Year; Promises More this Year G E R M A N Y BUNDESLIGA CLUBS: Prexy Admits Bankruptcy Looms for Some Teams COMMERZBANK AG: There's More to Pension Fund Scrapping - Analyst DAIMLERCHRYSLER AG: Chrysler Head Stands by Profit Forecast I R E L A N D SIRIUS FINANCE: Fitch Affirms Class C Notes at 'CCC-' WORLDCOM IRELAND: 2002 Results Suffer from Write-off Charges I T A L Y LAZIO: Could Lose Coach to Rival Team Next Year PARMALAT FINANZIARIA: Faces Shareholder Fraud Lawsuit in S.D. NY PARMALAT FINANZIARIA: Investors Outside Italy Fret over Claims N E T H E R L A N D S IHC CALAND: Wins New Orders; Defies Covenant Breach Predictions S W I T Z E R L A N D ABB LTD.: 'BB+' Rating Assigned to Revolving Credit Facility U N I T E D K I N G D O M ABBEY NATIONAL: Britannic Favored Buyer of Asset Management Unit A & R CARTON: Appoints Grant Thornton Administrator BAE SYSTEMS: Investors, Analysts Apprehensive about Merger Plans BOXCLEVER: Former Owner among Possible Buyers BRITISH AIRWAYS: Demand for Long-haul Travel Recovers CRYSTAL DRINKS: Management Buyout Succeeds; Saves 120 Jobs ELDRIDGE POPE: Miles Templeman Appointed Executive Chairman HENNOVER SALMON: Joint Receivers Offer Business, Assets for Sale HLF GROUP: National Westminster Appoints Receivers for Company INTERNATIONAL POWER: May Abandon Unprofitable U.S. Operations MARCONI CORPORATION: Forecasts Improvement in Sales MG ROVER: Sells Part of Longbridge Site for GBP42.5 Million SAFEWAY PLC: Wm Morrison to Push for Speedy Buyout Process TIMBERTEC JOINERY: Administrators Sell Business, Assets WATERFORD WEDGWOOD: Completes EUR38.5 Million Rights Issue YELL GROUP: Apax Partners Propose Ordinary Share Offering ********* =========== F R A N C E =========== ARIANESPACE: Lower Operating Costs Key to 2003 Breakeven -------------------------------------------------------- Europe's French-based rocket consortium, Arianespace, broke even in 2003, CEO Jean-Yves Le Gall said at a news conference, according to BBC. He attributed the favorable results to lower operating costs and more favorable launch terms. This despite slack market conditions. He also revealed the planned test flight of the now repaired 10- tonne Ariane 5-ECA in mid-2004. The super-rocket blew up on its maiden launch in December 2002. Separately, he also confirmed the planned recapitalization of Arianespace in the second half of 2004. The move will bring the group's equity to around EUR150 million (GBP105 million). This would be shortly after the realignment of Arianespace's shareholder structure, which would see the French space agency, CNES, exit and EADS boost its stake to just over 50%. ARIANESPACE: Declares 2003 Banner Year; Promises More this Year --------------------------------------------------------------- Arianespace maintained its world leadership in the commercial launch services market in 2003 despite fierce competition and a depressed market. The company won eight contracts open for bidding during the year -- representing more than 50% of the market -- and it continues to set the global standards in launch services. In 2003, Starsem won the launch contract for Europe's Venus Express spacecraft. As of January 6, 2004, Arianespace's backlog stood at 33 satellites to be launched, while Starsem had 3 satellites booked for upcoming missions. Arianespace and Starsem carried out six launches in 2003, four from Kourou and two from Baikonur, launching a combined total of 10 satellites: eight commercial and two for governmental missions. Europe confirms its support Another highlight of 2003 was a series of ministerial-level decisions by the European Space Agency Council that guaranteed Arianespace's long-term future by: (a) Reaffirming support for the Ariane 5 program and the resumption of Ariane 5 ECA missions, as well as reorganizing launcher development and production. (b) Officially approving the partnership with Russia, allowing Arianespace to deploy the Soyuz launcher from Europe's Spaceport at the Guiana Space Center by the end of 2006. Following these decisions Arianespace signed with EADS an order letter for 30 Ariane 5 launch vehicles covering Arianespace's needs through 2009. Arianespace now has the resources needed to meet its ambitious objectives, namely a full range of launch vehicles -- Ariane, Soyuz and Vega -- that meet all customer requirements for both government and commercial missions. Arianespace innovates the solutions for tomorrow Arianespace was able to guarantee the launch of the DIRECTV 7S satellite, slated for the first half of 2004, thanks to the launch service alliance agreement signed in July 2003 with Boeing Launch Services and Sea Launch. This innovative solution, a first in the launch services market, means that customers can count on their scheduled launch dates. 2003 ends on a high note with launch of Amos 2 Initially scheduled for launch on an Ariane 5, the Israeli satellite Amos 2 was orbited by a Soyuz-Fregat launcher from the Baikonur Cosmodrome in Kazakhstan on December 28. The change in launchers reflects the family policy set up by Arianespace and Starsem to meet customer requirements. Outlook for 2004 4 to 6 Ariane 5 launches Four to six Ariane 5s are scheduled to be launched this year. The first launch, planned for February 26, will send Europe's Rosetta scientific probe into an interplanetary orbit. Rosetta is scheduled to rendezvous with the comet 67P/Churymov- Gerasimenko in August 2014. Ariane 5 ECA to resume flights Consolidation of the Ariane 5 ECA version will continue in line with the recommendations of the Flight 157 inquiry board. The next flight of Ariane 5 ECA is now scheduled for the middle of 2004. It will orbit the XTAR satellite and a mockup payload. About Arianespace Arianespace is the commercial launch services leader, holding more than 50% of the international market for satellites launched to geostationary transfer orbit. Created in 1980 as the world's first commercial space transportation company, Arianespace has signed contracts for the launch of more than 250 satellite payloads. For further information, see the Arianespace Web site at http://www.arianespace.com ============= G E R M A N Y ============= BUNDESLIGA CLUBS: Prexy Admits Bankruptcy Looms for Some Teams -------------------------------------------------------------- The president of the German Football Association, Gerhard Mayer- Vorfelder, admitted the current efforts to save troubled Bundesliga clubs may not be enough to prevent some of them from going under. According to him, the German Football League is currently discussing a solidarity fund to help bail out struggling clubs, yet "the tangle of private interests and the general good of the league tends more towards the individual interests of the clubs." German Deutschlandfunkradio quoted Mr. Mayer-Vorfelder saying during the weekend that, based on experience in Spain and Italy, the collapse of a Bundesliga club is "quite possible." But he was optimistic a row between the DFL and Swiss rights trader, Infront, over marketing rights for the Bundesliga could be settled in a way that clubs could eventually improve their financial situation, according to the report. German clubs were forced to borrow heavily following the collapse of the Kirch media empire in 2002, which cost them millions of euros in television revenues. COMMERZBANK AG: There's More to Pension Fund Scrapping - Analyst ---------------------------------------------------------------- MM Warburg banking analyst, Joern Kissenkoetter, commented that Commerzbank's step to cease company pension contributions as of 2005 establishes the operating weakness of Germany's third largest bank. According to Intesatrade, Mr. Kissenkoetter said the latest move "confirms our skeptical view on (the bank's) operating strength over the next years." He said, "the worst is over, but we're not sure that the best is yet to come." He added, "takeover speculation could support the stock price further on, despite its relatively high valuation." Commerzbank has been on the foreground of merger rumors over the years. It made a EUR2.3 billion (US$2.9 billion) writedown in November that led to a net loss for the three months to September. TCR-Europe recently said the Frankfurt-based bank is planning to cancel the employee pension schemes for its 26,000 staff beginning 2005. This is part of an effort to save millions of euros a year at a time of difficult economic conditions. Frankfurt bankers were quoted as saying that the move is a way of making the bank "more attractive" to potential buyers as the German government pushes for local mergers to ward off "internationally operating raiders." "Unpredictable" pension provisions are considered discouraging factors for merger plans, the report said. DAIMLERCHRYSLER AG: Chrysler Head Stands by Profit Forecast ----------------------------------------------------------- The chief executive of DaimlerChrysler's Chrysler unit expects a narrow loss in 2003. Dieter Zetsche told Frankfurter Allgemeine Zeitung recently: "If there is a loss, then it will be a small one." The company is sticking to its target of achieving a slight operating profit in 2003, he said, expecting modest growth in the U.S. car market this year. He puts total sales of light vehicles in 2004 at 17 million, or 300,000 higher than last year's 16.7 million. DaimlerChrysler's shares have fallen 55% since the combination of Daimler-Benz and Chrysler was completed in November 1998. Billionaire Kirk Kerkorian, formerly Chrysler's largest investor, has lodged a case claiming he was deceived into thinking the transaction was a merger when it was actually a takeover. ============= I R E L A N D ============= SIRIUS FINANCE: Fitch Affirms Class C Notes at 'CCC-' ----------------------------------------------------- Fitch Ratings downgraded Sirius Finance 2000 Plc's Class A notes to 'BBB-' ('BBB' minus) from 'A' and Class B notes to 'B-' (B minus) from 'BB-' (BB minus). At the same time, Fitch has affirmed Sirius' Class C notes at 'CCC-' (CCC minus). Sirius is a special purpose vehicle incorporated under the laws of Ireland as a public company with limited liability. It was established by Credit Lyonnais as part of a collateralized loan obligation transaction. The Class A to C notes, totaling EUR150 million, assume the economic risks of a total reference portfolio of currently EUR1.952 billion worth of loans advanced to corporates, mainly located in Europe, above a first loss threshold of currently 0.22% of the portfolio. The reference portfolio was reduced to EUR1.952 billion from its initial size of EUR2 billion following two credit events in October 2001. The actual recovery rates obtained on these two reference entities led to a net loss of EUR40.7 million, compared with a first loss threshold amounting to EUR45 million (or 2.25% of the portfolio) when the deal was rated. Fitch's rating action reflects further credit deterioration of the pool. As of the last reporting date, 16.48% of the pool is sub-investment grade, up from 12.60% as of December 2002. The agency will closely monitor any changes to the existing portfolio and will take further action as and when required. WORLDCOM IRELAND: 2002 Results Suffer from Write-off Charges ----------------------------------------------------------- MCI WorldCom Ireland lost almost EUR117 million in 2002, the Irish Times found out, according to BizWorld. The company's results, which came out after the bankruptcy of its U.S. parent, noted a huge decline in sales and an exceptional write-off of more than EUR110 million. In its latest disclosure with the Companies Registration Office, the company said almost EUR70 million of the exceptional items was related to the restatement of the value of the impairment of MCI WorldCom Ireland's telecoms network and other assets. The restatement was taken following a review of the company by its new auditor, KPMG. WorldCom's bankruptcy filing also forced the company to make a provision for bad debt owed to it by the U.S. parent. Revenue at the Dublin-based company fell 10% to EUR31.2 million in 2002. ========= I T A L Y ========= LAZIO: Could Lose Coach to Rival Team Next Year ----------------------------------------------- Lazio coach Roberto Mancini is rumored to be leaving to become manager of Tottenham, according to The Gazette. Mr. Mancini is reportedly getting frustrated at being unable to buy players for the Roman club. "I've heard there has been interest, but there have been no official discussions and there are many complications," Athole Still, Mr. Mancini's agent, told BBC Sport. Mr. Mancini's still has four years on his contract with Lazio. "The club is undergoing a difficult time at the moment, so we cannot guarantee he will remain next season," Lazio sporting director Oreste Cinquini said. "But Mancini will remain at Lazio this season. That is certain." Lazio is on the edges of the relegation zone this season. PARMALAT FINANZIARIA: Faces Shareholder Fraud Lawsuit in S.D. NY ---------------------------------------------------------------- Italian food company Parmalat Finanziaria S.p.A. faces a shareholder class action filed in the United States District Court for the Southern District of New York, after it became entangled in a multi-billion dollar accounting scandal, Reuters reports. Prominent American class action firm Milberg Weiss Bershad Hynes & Lerach initiated the suit, on behalf of the Southern Alaska Carpenters Pension Fund, and all other investors who purchased Company securities between 1999 and 2003. The suit names as defendants the Company and: (1) Citigroup, Inc., (2) Deloitte & Touche Tohmatsu, (3) Deloitte & Touche S.p.A., (4) Grant Thornton International, (5) Grant Thornton S.p.A., (6) former Parmalat Chairman Calisto Tanzi, (7) former chief financial officer Fausto Tonna, (8) Parmalat unit Bonlat Financing Corporation, (9) Coloniale S.p.A., the holding company owned by the Tanzi family that controlled Parmalat, (10) New York based law firm Zini & Associates, and (11) Buconero LLC, a Delaware corporation set up by Citigroup The Company and its outside advisors allegedly perpetuated a massive scheme involving overstating its profits and assets by billions of dollars for more than 10 years, allegedly "one of the largest financial frauds ever perpetuated" in Europe. The suit represents investors who held Parmalat's American depositary receipts and bonds. As of November 2002, there were more than 804 million Parmalat shares and more than $5 billion of Parmalat debt outstanding, the complaint revealed, Reuters states. The complaint did not specify what fraction of the Italian company's shares and bonds were sold in the U.S. PARMALAT FINANZIARIA: Investors Outside Italy Fret over Claims -------------------------------------------------------------- Foreign investors are concerned their claim might be ranked subordinate to that of Italian banks in the bankruptcy process of Parmalat, according to New York Times. Local companies and banks are usually given preferential treatment in Italy, as exemplified by the case of Telecom Italia in 2001. Telecom Italia shareholders outside of a stake held by Olivetti, many of them foreign, received no premium when the company was taken over by Pirelli. Olivetti received an 80% premium. Compounding their fears is Italy's bankruptcy law, which unlike the law in the United States, does not require creditors' approval to have a restructuring plan forged out. Parmalat bondholders outside Italy say the outcome of the process will determine their decision regarding future investment in Italy. "If the Italian courts and regulators are not going to treat non-domestic investors fairly, that will not be a country we are going to participate in," said Gary E. Wendlandt, chairman and chief executive of New York Life Investment Management, which owns US$30 million in Parmalat private placement bonds. Parmalat has issued more than EUR5 billion in the last four years, and most of the bonds are held by foreign investors. The company's three Italian bank lenders, Capitalia, Banca Intesa and San Paolo IMI, are owed more than EUR1 billion, about the same as foreign banks. ===================== N E T H E R L A N D S ===================== IHC CALAND: Wins New Orders; Defies Covenant Breach Predictions --------------------------------------------------------------- Dutch shipbuilding and engineering group IHC Caland defied predictions it would breach debt covenants. Proving otherwise J.P. Morgan's expectation in October that its high gearing could force it to fall short of its obligations, the company said Tuesday it is in the position to continue meeting its banking covenants. The statement came with an announcement of more than US$100 worth of new orders won over the last few weeks. The company also said that U.S. oil major Exxon Mobil Corporation would keep one of its floating production and storage platforms on a long-term lease rather than buying it as initially planned. "Although the sale of the unit would have had short-term benefits, the long-term lease will be overall more profitable, and the decision not to purchase will have no adverse financial consequences for the group," the IHC statement partly reads. It added its liquidity position was satisfactory. Meanwhile, the company also revealed that Chief Financial Officer Gerry Docherty will step down on May 14 at the company's annual general meeting. Mark Miles, current controller of SBM, will replace Mr. Docherty, who cited personal reasons for his resignation. ===================== S W I T Z E R L A N D ===================== ABB LTD.: 'BB+' Rating Assigned to Revolving Credit Facility ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its long-term 'BB+' bank loan rating to the $1 billion senior unsecured revolving credit facility, which matures in 2006, for Switzerland-based engineering company ABB Ltd. (BB+/Positive/B). Related entities ABB Asea Brown Boveri Ltd. (BB+/Positive/B) and ABB Capital B.V. (BB+/Positive/B) will be the borrowers. The facility is guaranteed by the borrowers as well as ABB Ltd. and will be used for general corporate purposes including refinancing. Pricing for the three-year facility will remain linked with the corporate credit rating on ABB. Covenants include a leverage ratio and an interest coverage ratio. The main non-financial covenants include a negative pledge and limitations on subsidiary indebtedness, both of which have significant exceptions. The loan has been given the same rating as the existing corporate credit rating on ABB because the facility is senior and unsecured and there are no material structural subordination issues. =========================== U N I T E D K I N G D O M =========================== ABBEY NATIONAL: Britannic Favored Buyer of Asset Management Unit ---------------------------------------------------------------- Many are reportedly rooting for a Britannic takeover of Abbey's asset management unit based in Glasgow, according to The Herald. Abbey National is expected within this month to either sell the division's contracts to run what are mainly in-house life funds for about GBP200 million, or shut the operation and outsource management of the funds. Industry sources said Abbey had not yet issued an information memorandum on Abbey National Asset Managers. Britannic manages more than GBP14 billion in assets in Glasgow via Britannic Asset Management. An acquisition of Abbey's asset management unit would mean Abbey National Asset Managers' GBP28 billion of funds would remain in the city. A high-level source told The Herald failure by Britannic to snatch Abbey would be bad news for Glasgow. "At the moment, we have two big players (in Glasgow), Britannic and Abbey. It would be disappointing if one of the two of them didn't end up being in Glasgow," the source said. Aside from ISIS -- which bought life fund management contracts from Royal & SunAlliance in 2002 -- HBOS subsidiary, Insight Investment, and Standard Life might also join the bidding. Sources put the possible price of Abbey National Asset Managers at GBP200 million. The actual price any buyer would pay would depend on the length of the contract to run Abbey National Asset Managers' life funds, and on the fee, the report said. A spokeswoman for Abbey did not comment on the issue, except to reiterate the company's statement last month. She said they are still determining the strategy with regards to investment activities. A & R CARTON: Appoints Grant Thornton Administrator --------------------------------------------------- Nature of business: Manufacture of corrugated cartons, boxes and cases Trade classification: 11 Date of appointment of Administrator: December 12, 2003 Andrew David Conquest, Administrator (office holder no 5329) of Grant Thornton, Grant Thornton House, Melton Street, Euston Square, London NW1 2EP. BAE SYSTEMS: Investors, Analysts Apprehensive about Merger Plans ---------------------------------------------------------------- The news of the impending resignation of BAE System non- executive Director Paolo Scaroni seemed to have encouraged a growing discontent over the company's plan to merge with a North American rival to surface. Mr. Scaroni, who is known to have been critical of the plan, is set to leave the company in the next few months. He may no longer be there to oppose the strategy, but it is noted his views have sympathy among investors and analysts. The Telegraph quoted one shareholder saying the merger is logical provided the company is trading well, and it is strong enough to have some command of the negotiations. In the meantime, he said, what is important is that "BAE delivers contracts to cost and on time." BAE is still in the process of rehabilitating its reputation after its share price collapsed last year when it incurred cost overruns on two government contracts for new Astute submarines and the refurbishment of Nimrod maritime patrol planes. Analysts, meanwhile, said they approve of BAE's chase for contracts in the growing U.S. defense market, but considers the hunt for a merger partner a difficult task in a region where defense businesses are valued highly. BOXCLEVER: Former Owner among Possible Buyers --------------------------------------------- Goldman Sachs' shortlist of bidders for struggling television rental business, BoxClever, includes Terra Firma Capital Partners, Cerberus Capital Management, the U.S hedge fund, and Martin Dawes, the telecoms entrepreneur, according to The Times. Behind Terra Firma is Guy Hands, who sold the business to WestLB three years ago. Cerberus' bid is being made in cooperation with Roger Mavity, the former chief executive of BoxClever and non-executive chairman of Citigate Dewe Rogerson. Mr. Dawes success in buying the operation would mean the return to the Dawes family the chain of rental shops that his father, Fred, built in the 1960s, which evolved through a series of deals into BoxClever. WestLB's EUR430 million- writedowns in BoxClever accounted for most of the German bank's record loss last year. BRITISH AIRWAYS: Demand for Long-haul Travel Recovers ----------------------------------------------------- Summary of Traffic and Capacity Statistics In December 2003, passenger capacity, measured in Available Seat Kilometers, was 2.3% above December 2002 and traffic, measured in Revenue Passenger Kilometers, was higher by 4.8%. This resulted in a passenger load factor up 1.7 points versus last year, to 73.3%. The increase in traffic comprised a 4.7% increase in premium traffic and a 4.8% increase in non-premium traffic. Cargo, measured in Cargo Ton Kilometers, rose by 15%. Overall load factor rose 3.1 points to 70%. For the October to December quarter, ASKs rose by 2.9%, with RPKs rising by 5.3%. This resulted in an increase in passenger load factor of 1.7 points, to 72.7%. This comprised a 3.5% increase in premium traffic and a 5.6% increase in non-premium traffic. CTKs rose by 11%. Market conditions Long haul premium volumes continue to increase year on year and are driving some improvement in the revenue outlook. Short haul premium continues to be weak and below last year's levels. Traffic volumes in non-premium remain very sensitive to yield. Costs As a result of yen depreciation against sterling, there will be a non-cash accounting profit of GBP27 million in the third quarter financial results. Strategic Developments British Airways, Iberia Airlines and BA franchise partner GB Airways were given exemption from competition legislation by the European Commission. The exemption allows them to share airport facilities, extend code-sharing services, coordinate sales and marketing programs, undertake joint network planning, coordinate capacity and pricing and cargo services. The U.K. government, in its Aviation White Paper, approved new runways at London Stansted airport by around 2011, and subject to resolving the level of nitrogen dioxide emissions, at London Heathrow airport between 2015 and 2020. The airline announced an increase in capacity between Nairobi and London from seven flights to 10 per week from March 28, 2004. British Airways' new year sale began on December 30, with more than 500,000 discounted flight tickets to more than 120 worldwide destinations with savings up to GBP308. The sale also includes some bargain British Airways Holidays breaks to the Caribbean, USA (including Florida), Canada and Dubai with savings up to GBP339 per person. The World Offer tickets are on sale until January 27, 2004 and are valid for travel for differing time periods from January1 until June 15. To view statistics: http://bankrupt.com/misc/British_Airways_Statistics.htm CONTACT: BRITISH AIRWAYS Investor Relations Waterside (HCB3) PO Box 365 Harmondsworth UB7 OGB Phone: +44 (0) 20 8738 6947 Fax: +44(0) 20 8738 9602 CRYSTAL DRINKS: Management Buyout Succeeds; Saves 120 Jobs ---------------------------------------------------------- A group of managers at West Yorkshire drinks maker, Crystal Drinks, bought the company out of administration for an undisclosed sum, according to Yorkshire Today. The transaction saved all 120 jobs at the Featherstone-based plant. Administrators from the Leeds office of PricewaterhouseCoopers consider the management's offer as the only viable offer in order to save the company from imminent closure. Crystal Drinks went into administration in November after suffering from slim margins and failing to secure a lucrative contract. The company, which has annual turnover of GBP16 million, had GBP4 million in debts during the filing. Crystal Drinks makes soft drinks and trades under the Crystal, Fontana, Curries and Robertson brands and also supplies own- label products to supermarkets and independent retailers. It will continue trade under the name after the management buyout. ELDRIDGE POPE: Miles Templeman Appointed Executive Chairman ----------------------------------------------------------- Eldridge Pope is pleased to announce the appointment of Miles Templeman to the Board as part-time Executive Chairman with immediate effect. He succeeds Robert Colvill who had assumed the role of Acting Chairman following the illness of Christopher Pope. Robert will remain a non-executive Director of the Company. Miles Templeman has 18 years experience in the leisure industry and more particularly the pubs and drinks sector. Most recently he was Chief Executive of H P Bulmer Holdings plc, which was sold to Scottish and Newcastle plc in 2003. Previously, from 1988 he held a number of roles at Whitbread plc becoming Managing Director of the Whitbread Beer Company in 1990. He also held positions as Group Marketing Director and Managing Director of Thresher Wine Merchants. Mr. Templeman also holds non-executive directorships at Melrose PLC, Shepherd Neame Limited and Ben Sherman Limited. Previously he was a non-executive Director of the Royal Mail Plc between 1999-2003 and also at Albert Fisher Group plc between 1994-2000. The Board can confirm that there is no relevant information to disclose under paragraphs 6.F.2 (b) to (g) of the Listing Rules in relation to Mr. Templeman's appointment. Susan Barratt, Chief Executive of Eldridge Pope & Co plc said: "I am delighted to welcome Miles Templeman to the role. He brings a wealth of experience, which will be very valuable to us. "Miles comes with a proven track record and a real understanding of the business and what we are trying to achieve. The Board wishes to thank Robert Colvill for stepping into the chair during a testing time for the Company and carrying out his task admirably." Miles Templeman said: "I am delighted to be joining Eldridge Pope. It is a well established Company that I have known for a long time and I look forward to working with a team that is dedicated to maximizing shareholder value." CONTACT: ELDRIDGE, POPE & CO PLC Phone: 01305 258195 Susan Barratt, Chief Executive COLLEGE HILL Phone: 020 7457 2020 Justine Warren, Jamie Ramsay HENNOVER SALMON: Joint Receivers Offer Business, Assets for Sale ---------------------------------------------------------------- The Joint Receivers, Bruce Cartwright and Laurie Manson, offer for sale the business and assets of Hennover Salmon Limited (In Receivership), a salmon farm based in Shetland. Principal features of the business include: (a) Modern owned and leased salmon farming stations (b) Currently c540,00 salmon in the water (c) Highly experienced and loyal workforce (d) SEPA consent for 700 tons of salmon For further information, please contact Laurie Manson or Alan Brown of PricewaterhouseCoopers LLP, Kintyre House, 209 West George Street, Glasgow G2 2KW. Phone: 0141 245 2222; Fax: 0141 245 2100; E-mail: alan.a.brown@uk.pwc.com HLF GROUP: National Westminster Appoints Receivers for Company -------------------------------------------------------------- Registered number: 3857869 Former Company Names: Pollwin Public Limited Company, HLF Insurance Holdings Limited Nature of Business: Insurance Trade Classification: 33 Date of appointment of Administrative Receivers: December 17, 2003 Name of person appointing the administrative receivers: National Westminster Bank Plc Joint Administrative Receivers: Magie Mills and Gareth Hughes (office holder No.s: 5318 and 6529) both of Ernst & Young LLP, 1 More London Place, London SE1 2AF INTERNATIONAL POWER: May Abandon Unprofitable U.S. Operations ------------------------------------------------------------- The future of International Power's U.S. power plants hinges on the decision of the London-based company's creditors regarding its US$900 million debt. The international power plant operator may opt to abandon its unprofitable U.S. power plants if banks, including Citigroup Inc. and Deutsche Bank AG, do not agree to renegotiate the debt, the Financial Times reported without citing sources, according to Bloomberg News. The company has started talks with 18 banks about financing its non-recourse U.S. debt. It is expected to propose to banks the extension of the loans and the reduction of short-term interest payments. Chief Executive Philip Cox declined to say if the company is in talks with the banks, according to the report. Analysts forecast International Power's U.S. business to report a full- year loss before tax of GBP80 million, it said. MARCONI CORPORATION: Forecasts Improvement in Sales --------------------------------------------------- Marconi Chief Executive Mike Parton said the telecoms equipment maker will report third-quarter sales that is slightly higher than that of the preceding quarter, according to BizWorld. The firm reported sales of GBP389 million in the second quarter to September 30. He, however, ruled out going up the list in terms of market share. "Although Marconi will be one of the survivors in European tech hardware, it is unlikely to turn itself into one of the winners in terms of market share gains. Its sales rely mainly on legacy products, with new generation offer struggling to break through to customers," he said. The statement came after it announced the disposal of its North American Access business, which provides high-speed communications services, to California-based Advanced Fibre Communications for US$240 million cash. Mr. Parton said Marconi would use the money raised to the deal to pay off all its junior notes and a small portion of its senior debt. The transaction is to close in the first quarter of 2004. More details on Marconi's current trading would be given on January 27, he said. MG ROVER: Sells Part of Longbridge Site for GBP42.5 Million ----------------------------------------------------------- St. Modwen Properties Plc has entered into a sale and long-term leaseback arrangement of part of MG Rover Group's Longbridge site for GBP42.5 million. MG Rover Group will invest the funds directly in the car company's business activities. 4.25m sq. ft. of buildings on 228 acres of land are included in the transaction. MG Rover has been granted a lease of up to 35 years over this land at an initial rent of GBP3.6 million with annual fixed uplifts and on expiry of the lease will have the option to renew. Throughout the term of the lease MG Rover's operational activities on the land will not be restricted but provision is made for the sensible release of surplus land at MG Rover's option. Kevin Howe, Chief Executive of MG Rover Group said: "This deal generates cash for our cars business today and allows us to continue to invest in the car company's many product development activities. It puts to work one of our assets but in no way restricts the day-to-day running of our business." Richard Froggatt, Executive Director of St Modwen Properties Plc said: "We set up a partnership with MG Rover in 2001 to regenerate land which was surplus to operational requirements. We are delighted to extend our relationship with MG Rover to support the ongoing operations. This is a very similar sale and leaseback transaction to those we have already completed with Goodyear, Corus, Alstom, Invensys and others. "The realization of value locked up in their property assets is being seen by many companies as an effective way of significantly improving their use of capital. This is particularly relevant to larger manufacturers, which often have extensive land holdings whose ownership and management is not part of their core business." CONTACT: ST. MODWEN PROPERTIES PLC Home Page: http://www.stmodwen.co.uk Anthony Glossop, Deputy Chairman and Chief Executive Phone: 0121 456 2800 Bill Oliver, Managing Director WEBER SHANDWICK SQUARE MILE Kevin Smith/Katie Hunt Phone: 020 7067 0700 MG ROVER GROUP Suzanne Bartch, The Maitland Consultancy Phone: 020 7379 5151 SAFEWAY PLC: Wm Morrison to Push for Speedy Buyout Process ---------------------------------------------------------- Lawyers acting in behalf of William Morrison Supermarkets PLC will ask the court to approve a scheme-of-arrangement bid for rival store Safeway Plc next Thursday, Dow Jones said citing a report from The Times. The boards of Morrisons and Safeway have reached agreement on the terms of a new GBP3 billion recommended offer for Safeway last month. The Offer values each Safeway Share at 283 pence, comprising 1 new Morrisons Share plus 60 pence in cash. Wm Morrisons offered the bid after Trade Secretary Patricia Hewitt published the agreed undertakings in relation to offers for Safeway in December. The undertakings provide that Wm Morrison disposes 53 stores under its buyout agreement, and that rival bidders Tesco, Asda/Wal-Mart and Sainsbury keep out of the bidding for Safeway. Rules were are put in place regarding Tesco's and Asda's possible buyout of some of the 53 stores. TIMBERTEC JOINERY: Administrators Sell Business, Assets ------------------------------------------------------- The Joint Administrative Receivers, Alan Lovett and Ian Best, offer for sale as a going concern the business and assets of Timbertec Joinery Limited (in Administrative Receivership). Key features of this quality bespoke joinery company are: (a) Turnover of circa GBP3 million p.a. (b) High class residential and commercial customer base (c) Offerings include high-class bespoke shop fitting joinery, staircases etc. along with in-house traditional drawing and state of the art CAD services (d) Circa 40 employees, freehold premises available in Berkshire For further information please contact Karen Over or Surinder Bougan, Ernst & Young LLP, One Colmore Row, Birmingham B3 2DB. Telephone: (0121) 55 142; Fax: (0121) 535 2448; E-mail: sbougan@uk.ey.com WATERFORD WEDGWOOD: Completes EUR38.5 Million Rights Issue ---------------------------------------------------------- The Board of Waterford Wedgwood plc is pleased to announce that valid acceptances in respect of 188,149,973 Rights Issue Units have been received from Qualifying Stockholders, representing an aggregate take-up of approximately 88.07% of the total number of Rights Issue Units offered. Directors of Waterford Wedgwood, including Sir Anthony O'Reilly and Mr. Peter John Goulandris, subscribed for their full entitlements under the Rights Issue. Davy Stockbrokers has procured subscribers for all of the remaining 11.93% (25,490,146 Rights Issue Units) including the entitlements of Overseas Shareholders, at a price of EUR0.21 per unit, completing the Rights Issue. This announcement should be read in conjunction with the Listing Particulars dated December 1, 2003. Terms defined in the Listing Particulars have the same meaning in this announcement. CONTACT: DAVY STOCKBROKERS Hugh McCutcheon Eugenee Mulhern Phone: +353(0)1 679 6363 COLLEGE HILL ASSOCIATES (U.K./EUROPE) Kate Pope James Henderson Phone: +44(0)207 457 2020 DENNEHY ASSOCIATES (IRELAND) Michael Dennehy Phone: +353(0)1 676 4733 YELL GROUP: Apax Partners Propose Ordinary Share Offering --------------------------------------------------------- Apax Partners and Hicks, Muse, Tate & Furst Inc. announce that certain funds managed or advised by them intend to sell up to all of their respective shareholdings in Yell, subject to demand, price and market conditions. This will be achieved by way of an accelerated bookbuild placing of up to approximately 230 million shares, representing in aggregate approximately 34% of the issued share capital of Yell. The Placing will be arranged by Goldman Sachs International and Merrill Lynch International. In connection with the Placing, Goldman Sachs and Merrill Lynch have agreed to waive the lock-up undertakings given by Apax Partners and Hicks, Muse, Tate & Furst Inc. in connection with Yell's listing and global offering in July 2003 in respect of, and only to the extent of, the shares subject to the Placing, or, in the event that Apax Partners and Hicks, Muse, Tate & Furst Inc. sell all of their respective shareholdings in Yell, to release the undertakings in their entirety. The shares held by Apax Partners and Hicks, Muse, Tate & Furst Inc. which are not subject to the Placing are still subject to the lock-up undertakings which are due to expire on January 11, 2004. In the event that Apax Partners and Hicks, Muse, Tate & Furst Inc. sell all of their respective shareholdings in Yell, the shareholders agreement entered into with Yell in connection with Yell's listing and global offering in July 2003 will no longer have effect. CONTACT: GOLDMAN SACHS INTERNATIONAL Phone: 020 7774 1000 Tim Bunting Simon Eaton MERRILL LYNCH INTERNATIONAL Phone: 020 7628 1000 Bob Wigley Rupert Hume-Kendall ********* 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 2004. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. 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