/raid1/www/Hosts/bankrupt/TCREUR_Public/040115.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 15, 2004, Vol. 5, No. 10


                            Headlines

B E L G I U M

CROSS HELMET: Outsources Production to Czech Republic, Asia


F R A N C E

VIVENDI UNIVERSAL: Unties Bind at UGC S.A.; Lowers Stakes to 40%


G E R M A N Y

HVB GROUP: CEO Denies Schoellerbank Is for Sale


H U N G A R Y

MALEV HUNGARIAN: To Pare Down In-flight Services to Save Cost


I T A L Y

PARMALAT FINANZIARIA: Tetra Pak Denies Rebate Payments to Tanzi
PARMALAT FINANZIARIA: Investigators Turn to Cayman Transactions
PARMALAT FINANZIARIA: Brazilian Unit Told to Pay or Go Bankrupt
PARMALAT FINANZIARIA: Founder Implicates Capitalia in Cirio Deal
TELECOM ITALIA: Prices Euro Benchmark Bond Offering at EUR3 Bln


L U X E M B O U R G

BCCI: Liquidators Lodge GBP800 Mln Suit Versus Regulator


N E T H E R L A N D S

KONINKLIJKE AHOLD: Urges Dutch Shareholders to Drop Demands
NUMICO N.V.: Spelling to Replace Ruitenberg in Supervisory Board


S W I T Z E R L A N D

ADECCO SA: Senior Unsecured Rating Lowered One Notch above Junk
ADECCO SA: Under Regulatory Investigation in U.S.
SKANDIA INSURANCE: Long-time Head of Phased out Unit Leaves


U N I T E D   K I N G D O M

ABBEY NATIONAL: Outsourcing to Cost Glasgow Jobs
BALLAST PLC: Faces Compensation Claims from Scottish Firms
BOWMAN POWER: Power Generation Systems Business for Sale
CARPETS INTERNATIONAL: Emerges from Receivership with New Name
COLVIS FINANCE: US$107.5 Million Notes Rated 'B'

DARLINGTON FOOTBALL: Administrators in Search for Buyer
DELOITTE & TOUCHE: Scandals Mar Name; Future Hangs in Balance
EUROPEAN ROLL: Business, Assets for Sale as Going Concern
GREENWOOD DENTAL: Administrators Offer Business, Assets for Sale
JASMIN PLC: In Sell-off Talks to Avoid Possible Default

LLOYDS TSB: Finance Director Philip Hampton Leaves
PACE MICRO: Reports Modest 2003 Pre-tax Profit
PNEUMATIC CONVEYORS: Administrator Seeks Buyers for Business
PRINCIPLE PACKAGING: Business for Sale as 'Going Concern'
RAILTRACK PLC: Grills Liquidator Over Documents, Service Fees
REGUS GROUP: Out of U.S. Chapter 11 Bankruptcy Protection
RICHARD ROBERTS: Knitwear, Jerseywear Supply Line for Sale


                            *********


=============
B E L G I U M
=============


CROSS HELMET: Outsources Production to Czech Republic, Asia
-----------------------------------------------------------
Some 107 workers will lose their jobs after Cross Helmet
Manufacturing ships its manufacturing activities to Czech and
Asian subcontractors, Intesatrade, citing newspaper l'Echo,
reported.

Part of Atenor Group, Cross Helmet said the move was necessary
to survive the highly competitive market that is unfortunately
saddled by weak demand.  The administration, sales, marketing
and research & development departments would remain in the town
of Nivelles.  The units employ a total of 20 people.

Atenor Group is a development company traded on a continuous
basis on the Euronext Brussels market and included in the Next
Prime index.

CONTACT:  ATENOR GROUP
          Avenue Reine Astrid 92
          1310 La hulpe
          Phone: 02 / 387 22 99
          Fax: 02 / 387 23 16


===========
F R A N C E
===========


VIVENDI UNIVERSAL: Unties Bind at UGC S.A.; Lowers Stakes to 40%
----------------------------------------------------------------
Vivendi Universal (Paris Bourse: EX FP; NYSE: V) and the family
shareholders of the UGC Group signed an agreement on December
31, 2003, modifying the structure of UGC S.A.'s equity capital.

Under the terms of the agreement:

(a) Vivendi Universal will hold only 40% of UGC S.A.'s equity
capital (after elimination of the treasury stock), and the
family shareholders' stake will be 56.20%.  Vivendi Universal
holds five of the 14 seats on the UGC Board of Directors.

(b) Vivendi Universal is freed of the agreement to buy all UGC
S.A. shares previously owned by family shareholders.  This
transaction removes a significant off-balance-sheet commitment
for Vivendi Universal.

(c) Vivendi Universal also signed an agreement with the family
shareholders to sell its UGC S.A. shares at a price of EUR80
million until December 31, 2005.  The price may be raised in the
case of a sale at a later date with an increase in value of the
shares bought by UGC family shareholders.

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


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


HVB GROUP: CEO Denies Schoellerbank Is for Sale
-----------------------------------------------
HVB Group Chief Executive Officer Dieter Rampl denied reports
the group is close to selling its Austrian unit Schoellerbank
private bank to Kredietbank S.A. Luxembourgeoise.

Dow Jones Newswires quoted Mr. Rampl as saying: "Schoellerbank
is not up for sale."  He said Austria is one of the core markets
for HVB Group and therefore it was important to maintain a
strong presence there.  "It's more important than Switzerland,"
he added.

Germany's second-largest bank, HVB posted losses the past two
years as a result of the slump in the country's economy.  It has
been selling non-core assets over recent months; including Swiss
bank, Bank von Ernst; German private bank, Bethman Maffei; and
consumer bank, Norisbank.

On speculations of a possible sale of Activest, the groups'
asset management unit, Mr. Rampl said it's not for sale either:
"We have decided not to merge Activest with a third party but
rather to further develop overall asset management activities
within the HVB Group."

Turning to much-awaited consolidation in the German banking
sector, Mr. Rampl said HVB would certainly not remain passive,
but added no one could forecast how or when consolidation would
take place.


=============
H U N G A R Y
=============


MALEV HUNGARIAN: To Pare Down In-flight Services to Save Cost
-------------------------------------------------------------
Malev Hungarian, the struggling aircraft servicing company, is
planning to scale back its HUF4 billion annual in-flight
services outlay to reduce annual costs by HUF800 million.
Customer Services Manager Zoltan Vermes told Budapest Business
Journal the amount of food served on Malev flights will be
tailored to the flight's duration and destination.  Newspapers
will be cut back from the economy class, he added.

Malev is currently aiming to reduce its losses -- HUF8.7 billion
in the first nine months of 2003 -- in order to receive a HUF3
billion capital injection from the State Privatization and
Holding Company in the first quarter of 2004.  It recently
announced a restructuring at its Aeroplex Kft unit, which was
awarded a five-year contract with an unnamed partner for
maintenance and hangar service and is expected to sign another
similar contract at the end of January.


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


PARMALAT FINANZIARIA: Tetra Pak Denies Rebate Payments to Tanzi
---------------------------------------------------------------
Tetra Pak will provide authorities its documentation of payments
to Parmalat aid them in their investigation of Parmalat.  Tetra
Pak will also inform the authorities that all discount payments
have gone to companies as directed by Parmalat.

"Parmalat, as all other large customers of Tetra Pak, has
benefited from marketing support and discounts on the packaging
material Parmalat has bought from us," Tetra Pak said in a
statement. "The discounts to Parmalat are similar to those that
benefit other large customers.  Average Tetra Pak sales to
Parmalat have been EUR224.4 million per year between 1995 and
2003.  On average, the discounts paid from central units have
been approximately EUR12.2 million per year during the same
period, or an average about 5.4 % per year."

"We have reviewed our discount payments to Parmalat since 1995
and we cannot identify any payments knowingly made directly to
either the Tanzi family or any other individuals.  On the
contrary, the payments have always been made to the companies to
which Parmalat has directed us," the statement reads.

"We regard this issue of high importance and we therefore offer
the Italian authorities our continued support," said Jorgen
Haglind, Senior Vice President, Communications, Tetra Pak.

CONTACT:  TETRA PAK
          Jorgen Haglind
          Phone: +46 708 36 46 10


PARMALAT FINANZIARIA: Investigators Turn to Cayman Transactions
---------------------------------------------------------------
Parmalat-related companies based in the Cayman Islands, the
ultimate corporate tax haven, raised more than US$1 billion
through issues of bonds, notes and shares, people close to the
investigations of the Italian food giant said, according to the
Financial Times.

The amount is apparently separate to the US$5 billion that
Bonlat, a Parmalat subsidiary in the Caymans, falsely claimed to
have in a bank account.  As for the newly discovered amount, how
much of it is true has not been established yet, said the
Financial Times sources.

The group's offshore operations are currently under
investigation by PricewaterhouseCoopers, the accounting firm
tasked by Parmalat administrator, Enrico Bondi, to find the
whereabouts of the money found missing in the company's
accounts.  Sources say Parmalat had 10 related companies in the
Caymans, and several raised money, including Epicurum, a mutual
fund.  Bonlat's role in the fund-raising is unclear because no
figures are available, the sources said.

It is thought that two companies in the Caymans, holding more or
less US$70,000, were arranged as trusts by the company, with
Calisto Tanzi, Parmalat's jailed founder, as the sole
beneficiary.


PARMALAT FINANZIARIA: Brazilian Unit Told to Pay or Go Bankrupt
---------------------------------------------------------------
Brazilian food company Orlandia S.A. filed a request for
bankruptcy proceedings against Parmalat Brazil in the 29th
branch of the Sao Paulo civil court, according to Dow Jones.

Parmalat Brazil, the world's biggest supplier of milk, was
unable to pay its obligations last year after it diverted funds
to help its ailing Italian parent, TCR-Europe recently reported
citing Folha de S. Paulo newspaper.  According to the report,
Parmalat Brazil transferred BRL188 million to the Italian dairy
group through its private Brazilian controlling company,
Parmalat Participacoes, which doesn't publish accounts.  The
filing prompted the local stock exchange to halt trading in the
company's highly illiquid shares as of Tuesday, demanding a
clarification about "bankruptcy proceedings reported in the
press."

Orlandia said Parmalat Brasil has until February to meet
payments of up to BRL0.9 million.


PARMALAT FINANZIARIA: Founder Implicates Capitalia in Cirio Deal
----------------------------------------------------------------
Italian food giant Parmalat could drag Capitalia, Italy's fourth
largest bank, into the scandal it is currently mired, according
to the Wall Street Journal.

Parmalat founder, Calisto Tanzi, had said during an
interrogation in December that Capitalia Chairman Cesare Geronzi
pressured him into buying Eurolat, a Rome-based dairy company,
from Cirio Finanziaria S.p.A. at inflated prices in 1999.  The
transaction enabled Cirio to reduce its debt burden and for
Capitalia to lower its exposure to Cirio, a person familiar with
Mr. Tanzi's interrogation said, according to the report.

Mr. Geronzi, a banker with a host of political clout, is also
linked to investigations in the bankruptcy of Cirio.  He is also
accused of presenting false information to the Bank of Italy
concerning Capitalia's loan book.

Mr. Tanzi sits on the board of Capitalia, Parmalat's major
creditor.  In late December, Capitalia pegged its loans and
other exposure to Parmalat operating companies at about EUR393
million.


TELECOM ITALIA: Prices Euro Benchmark Bond Offering at EUR3 Bln
---------------------------------------------------------------
Telecom Italia announces that the Euro multi-tranche benchmark
bond offering announced Monday was finalized with full success.
On the basis of a total order book, equal to approximately EUR5
billion, the total amount of the issue has been set at EUR3
billion, split in three tranches: a 3 years and 9 months
floating rate note, and a seven and fifteen year fixed rate
notes.

The transaction is the first public Eurobond offering by Telecom
Italia after the merger with Olivetti, and allows refinancing of
maturing debt at low interest rates and spreads; it also allows
to call an outstanding Telecom Italia EUR1.5 billion floating
rate note bearing a less favorable interest margin.

The main features of the issue are:

First tranche

Issuer: Telecom Italia S.p.A
Amount: EUR1 billion
Issue date: January 29, 2004
Maturity: October 29, 2007
Tenor: 3 years and 9 months, callable at each coupon date
starting on January 29, 2006
Coupon: Euribor 3 months +0,33% per year, paid on a quarterly
basis
Issue price: 99,927
Discount margin: Euribor 3 mesi + 0,35% per year

Second tranche

Issuer: Telecom Italia S.p.A
Amount: EUR750 million
Issue date: January 29, 2004
Maturity: January 28, 2011
Tenor: 7 years
Coupon: 4,50% per year, paid every January 28
Issue price: 99,56
Yield to maturity: 4,575% per year, which is equivalent to a
yield of +70 basis points over mid-swap

Third tranche

Issuer: Telecom Italia S.p.A
Amount: EUR1 billion 250 million
Issue date: January 29, 2004
Maturity: January 29, 2019
Tenor: 15 years
Coupon: 5,375% per year, paid every 29 January
Issue price: 99,07
Yield to maturity:5,4675% per year, which is equivalent to a
yield of +85 basis points over mid-swap

The issue is part of Telecom Italia Euro 10,000,000,000 Euro
Medium Term Note (EMTN) Program and has been jointly arranged by
Barclays Capital, BNP Paribas, Caboto, Deutsche Bank, JP Morgan,
MCC, Mediobanca and UBM as Lead Arrangers and Book Runners.

The notes are to be listed on the Luxembourg Stock Exchange.
They are also expected to be listed on Mercato Obbligazionario
Telematico, the Italian electronic exchange by Borsa Italiana
S.p.A.

The securities referred to in this press release have not been
and will not be registered under the U.S. Securities Act of 1933
and may not be offered or sold in the United States absent
registration or an applicable exemption from registration
requirements.


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


BCCI: Liquidators Lodge GBP800 Mln Suit Versus Regulator
--------------------------------------------------------
Deloitte & Touche, liquidators of Bank of Credit & Commerce
International (BCCI), is suing the Bank of England over its
supervision of the institution that collapsed in 1991.

Gordon Pollock QC is expected to detail to the High Court that
regulators acted in bad faith by granting BCCI a license to
operate in 1980 and failing to supervise it properly before
revoking the license in 1991, according to Bloomberg News.
Deloitte & Touche is claiming GBP800 million in damages for the
bank's depositors.  The trial is expected to last between 12 to
18 months.

BCCI, a bank incorporated in Luxembourg and run from London,
collapsed in 1991 with as much as US$16 billion in debt.  The
Bank of England, which has in court documents called the lawsuit
a "highly outrageous claim," will be represented by Nicholas
Stadlen QC.  Christopher Grierson, a partner with Lovells will
be representing the liquidator.


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


KONINKLIJKE AHOLD: Urges Dutch Shareholders to Drop Demands
-----------------------------------------------------------
Ahold appealed Tuesday to the Association of Dutch Stockholders
to discontinue the claims [to nullify annual accounts for fiscal
years 1998, 1999, 2000, 2001 and 2002] it has announced against
Ahold.  These claims are not in the interests of shareholders.

Ahold has issued this appeal in an open letter.  This letter has
been published in several Dutch national newspapers.  This
letter has also been published on Ahold's Web site in English,
so that non-Dutch speaking shareholders can be informed about
Ahold's appeal.  Ahold's Web site can be found at:
http://www.ahold.com

CONTACT:  KONINKLIJKE AHOLD
          Corporate Communications
          Phone: +31.75.659.57.20


NUMICO N.V.: Spelling to Replace Ruitenberg in Supervisory Board
----------------------------------------------------------------
The Supervisory Board of Royal Numico N.V. proposes to appoint
Barrie M. Spelling as member of Numico's Supervisory Board at
the Annual General Meeting of Shareholders to be held on May 6,
2004.

Joost Ruitenberg has decided after a period of 8 years to step
down as member of Numico's Supervisory Board at the end of his
second term in May 2004.

Barrie M. Spelling (59), of British/U.S. nationality, was
President and Corporate Officer Global Oral Care of Colgate-
Palmolive Company, New York, until the end of 2002.

Colgate-Palmolive is a global consumer products company, with
market leadership in major personal care, household and pet
nutrition product categories with sales of approximately USD 9
billion in 2002.  Barrie Spelling managed the US$3.7 billion
Oral Care business, the company's number one business sector,
after having held numerous management positions in Europe and
the United States.

Rob Zwartendijk, Chairman of the Numico's Supervisory Board: "We
are very pleased that Barrie Spelling is willing to join our
Supervisory Board.  With his knowledge and worldwide experience
in the consumer sector and specifically oral care, he will
especially provide us with additional fast moving consumer and
medical support for our Baby Food division.  His nomination also
represents the next step in the internationalization of Numico's
Supervisory Board.  We would also like to thank Joost Ruitenberg
for his dedication and valuable support over the last 8 years."

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 (see also: http://www.numico.com).


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


ADECCO SA: Senior Unsecured Rating Lowered One Notch above Junk
---------------------------------------------------------------
Moody's cut Adecco's senior unsecured rating to 'Baa3' from
'Baa2', after the company announced delays on the audit of its
consolidated financial statements for the 2003 fiscal year.
Adecco had expected to release its report February 4.  Moody's
is maintaining all Adecco ratings on review for further possible
downgrade.

Moody's took note of the company's announcement that Adecco "has
identified material weaknesses in internal controls in its U.S.
operations; the company's debt protection measurements had
previously positioned it only weakly in its rating category" and
that "the weakness in controls represent a new risk."

It said the rating review will focus on an assessment of:

(a) the impact of the audit results on Adecco's credit metrics
for its rating category, and in particular the impact on
operating cash flow and debt repayment capacity, as well as;

(b) the potential for the accounting and control issues to
significantly distract management's time away from focusing on
recovering revenue growth; and

(c) any changes to Adecco's liquidity position and potential
demand for cash.

The rating could be confirmed at Baa3 if the problems do not
involve significant accounting or control issues, otherwise
there is a possibility the rating could be further downgraded,
the rating agency said.

The ratings affected by the downgrade are:

(a) Meridian B.V.: Baa3 from Baa2 senior unsecured rating,
domestic currency issue.

(b) Adecco Financial Services (Bermuda) Ltd.: Baa3 from Baa2,
senior unsecured rating.

(c) Olsten Corporation: Baa3 from Baa2, senior unsecured rating.


ADECCO SA: Under Regulatory Investigation in U.S.
-------------------------------------------------
The U.S. Securities and Exchange Commission has launched an
investigation into Adecco S.A., the world's largest provider of
temporary workers, people familiar with the probe said,
according to Bloomberg News.

The company warned of a delay on its audit this week due to
"material weaknesses in internal controls" at its North American
business and "possible accounting, control and compliance issues
in certain countries."

Adecco has reportedly retained William Baker, a former SEC
enforcement official now employed at Latham & Watkins in
Washington, to handle regulatory investigations, the people
familiar with the investigation said.  Mr. Baker, and a
spokeswoman for Adecco at the company's U.S headquarters in
Melville, New York declined to comment on the SEC probe,
according to the report.

The U.S. Attorney in Manhattan, has also started inquiries into
Adecco, according to the Wall Street Journal.  A spokeswoman for
the firm refused to discuss the U.S. Attorney office's move.


SKANDIA INSURANCE: Long-time Head of Phased out Unit Leaves
-----------------------------------------------------------
Cecilia Kragsterman has been head of the Global Business
Development unit and a member of the executive management team
since January 2002.  Due to changing market conditions and
priorities within the company, management made the decision in
the summer of 2003 to phase out the unit and transfer
development work to the group's respective regions.  The phase-
out of Global Business Development has now been completed.  In
connection with this, Cecilia Kragsterman has decided to leave
Skandia.

"With the phase-out of Global Business Development, I have
decided to leave Skandia.  My 19 years at Skandia, of which six
years were spent leading SkandiaLink through its build-up and
expansion, have been tremendously instructive and stimulating.
Now that my most recent area of responsibility has been properly
integrated with the operating units, it feels natural to look at
new challenges, this time outside Skandia," says Cecilia
Kragsterman.

"We thank Cecilia for her commendable work during her time at
Skandia.  She has had a number of leading positions and has made
many important contributions to the company's development," says
Hans-Erik Andersson, CEO of Skandia.  "We wish Cecilia well in
her future endeavors."

CONTACT:  SKANDIA INSURANCE
          Cecilia Kragsterman
          Phone: +46- 8-788 25 00

          Gunilla Svensson, Press Manager
          Phone: +46-8-788 42 97

          Corporate Communications
          S-103 50  Stockholm, Sweden
          Phone: +46-8-788 10 00
          Fax: +46-8-788 23 80
          Homepage: http://www.skandia.com


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


ABBEY NATIONAL: Outsourcing to Cost Glasgow Jobs
------------------------------------------------
Abbey National is in talks to outsource its fund management
operations to U.S. financial group State Street, information
that leaked to the press revealed.

The Herald reported that, according to Glasgow Herald Newspaper,
the action plan includes a "mop-up meeting" after the fund
management announcement to deal with "staff, press and customer
reaction."  The company confirmed the scheme, reportedly
codenamed Project Indigo, adding it had really intended to
reveal its details to Abbey National Asset Managers staff on
January 22.  The move could see GBP28 billion of funds being
moved from Glasgow to London, and more than 170 jobs axed.
Abbey, which employs 1,200 people in Glasgow, has 173 personnel
running its fund management operation.  About one-third of them
are fund managers.

Abbey National Fund Managers manages GBP13 billion of closed
with-profits funds and GBP16 billion of other funds, including
unit trusts.  The group is currently improving efficiency and
customer service as it focuses on its core retail financial
services operations.


BALLAST PLC: Faces Compensation Claims from Scottish Firms
----------------------------------------------------------
Scottish companies owed money by construction firm Ballast are
planning a legal action against the sub-contractor of the East
Lothian PPP Schools project.  These companies have more than
GBP5 million in collectibles from the firm.

The Scotsman said Albann, Richard Edward Construction, Rolland
Group, VB Contracts and Proactive Recruitment agreed on Monday
that a suit is "the only realistic way" of reaching a
settlement.  They plan to hire corporate lawyers to help them.

Ballast suspended work on six school sites and two community
facilities in the region after falling into administration in
September.


BOWMAN POWER: Power Generation Systems Business for Sale
--------------------------------------------------------
The Joint Administrators, Antony Fanshawe and Steve Adshead of
Fanshawe Lofts, offer for sale as a going concern, the business
and assets of Bowman Power Systems Limited, manufacturer of
small-scale compact systems for secure, energy efficient and
environmentally friendly power generation in Hampshire, U.K., in
Administration.

Principal features of the business include: supplier of Combined
Heat and Power units; substantial R&D program (including micro-
turbines and power conditioning electronics); offices and
distributors strategically located across the globe; 43
employees; well-equipped leasehold facility based in
Southampton, U.K.

For further information, please contact Angela Stevenson or
Jenny Jerrard at the following address:

Fanshawer Lofts
41 Castle Way
Southampton
SO14 2BW
Phone: 023 8023 3522 / 023 8023 3504
Fax: bowman@fanshawe-lofts.co.uk


CARPETS INTERNATIONAL: Emerges from Receivership with New Name
--------------------------------------------------------------
Former managers of Carpets International Ltd. was able to start
a new company out of the troubled firm after securing funding
from a number of sources, according to Breaking News.

Donaghadee carpets re-started operation Monday, saving up to 116
jobs at the Co Down carpet factory.  This was made possible
through the help of backers, including Invest NI, Enterprise
Equity and Ulster Bank.  The reopening of the plant follows the
receivership of Carpets International Ltd. five months ago.  The
West Yorkshire-based company, with plants at Donaghadee and
Killinchy, employs around 1,190 people across the U.K.


COLVIS FINANCE: US$107.5 Million Notes Rated 'B'
------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' foreign
currency senior unsecured debt rating to Colvis Finance
Limited's upcoming US$107.5 million notes.

The 'B' rating on the notes is the same as the long-term
sovereign credit rating on Ukraine (B/Positive/B), as all
amounts payable under the loan agreement that backs the notes
are guaranteed by Ukraine.  This guarantee is a direct, timely,
unconditional, unsubordinated, unsecured, and general obligation
of Ukraine. This guarantee also ranks pari passu with all other
unsecured and unsubordinated obligations of Ukraine.  The
guarantee covers all amounts due, under the loan agreement, by
Production Association Yuzhny Machine Plant (Yuzhmash).  There
is no exchange risk, as the guarantee is payable in the currency
in which the amounts in respect of the notes are payable (U.S.
dollars).

The structure is viewed as a pass-through structure between
Yuzhmash and the noteholders.  In particular, the issuer meets
Standard & Poor's criteria for insolvency-remote special purpose
entities.  In addition, Colvis Finance Limited will also charge
in favor of the Trustee for the benefit of the noteholders all
its rights under the guarantee.

The proceeds of the transaction will ultimately be used to
finance an investment project by Yuzhmash.  The issuer, Colvis
Finance Limited, is a special purpose company limited by
guarantee, whose member (known as The Law Debenture) holds the
applicable rights on trust for charitable purposes.  The issuer
has the single objective of participating in this transaction.

Colvis Finance Limited will issue $107.5 million's worth of
notes, the proceeds of which will be used to grant a loan of an
equal amount to Yuzhmash.  The repayment of this loan by
Yuzhmash to Colvis Finance Limited is guaranteed by the Ministry
of Finance of Ukraine.

Initially, Ukraine issued an irrevocable and unconditional
guarantee to First Manhattan on the payment by Yuzhmash of all
amounts due to First Manhattan with respect to a non-revolving
10-year loan of $107.5 million.

This initial loan granted by First Manhattan to Yuzhmash was
never drawn upon by Yuzhmash. Subsequently, First Manhattan
irrevocably sold and assigned to Colvis Finance Limited all its
interests (including the guarantee provided by the Ministry of
Finance of Ukraine) in and to First Manhattan's rights and
obligations under the initial loan agreement.

Headquartered in Dnepropetrovsk (a city 250 miles east of
Ukraine's capital, Kiev), Yuzhmash is one of the world's leading
rocket manufacturers and one of the largest industrial
enterprises in the Ukraine. Yuzhmash's main business is launch
vehicles for commercial use and related support services and
products. Yuzhmash also produces an array of transport,
agricultural, wind power generating and other industrial
products, as well as satellites for scientific research. The
company is wholly owned by government of the Ukraine.

Yuzhmash holds a 10% stake in Sea Launch, a joint venture
company led by Boeing Commercial Space Company, which provides
commercial satellite launch services from a ship-based platform
in the equatorial Pacific Ocean.  Sea Launch exclusively uses
Yuzhmash's Zenith launch vehicle for the first and second stages
of its delivery vehicle. Yuzhmash also provides Sea Launch
with launch vehicle integration support and mission operations
services.

Colvis Finance Limited is a special purpose vehicle based in the
United Kingdom.


DARLINGTON FOOTBALL: Administrators in Search for Buyer
-------------------------------------------------------
The sale of troubled Darlington Football Club has attracted only
less than six interested parties, according to BBC News.  This
includes a consortium made up of local businessmen and the
club's supporters trust.

Darlington Football club called in administrators from
insolvency firm Wilson Field in December after the Inland
Revenue demanded that it winds up.  The Third Division club has
debts of more than GBP1 million, which involve items related to
the construction of the GBP25 million Reynolds Arena.

Dave Field, a partner in insolvency firm Wilson Field, still
hopes a buyer could be found for the business.


DELOITTE & TOUCHE: Scandals Mar Name; Future Hangs in Balance
-------------------------------------------------------------
These days have especially been difficult for "Big Four" audit
firm Deloitte & Touche.  After getting under fire for its role
in the Parmalat scandal, the accountancy firm's U.K. chief came
under renewed criticism for his involvement in the Barlow Clowes
savings scandal.

Two of Deloitte & Touche's Italian directors are currently in
question about the accuracy of Parmalat's accounts.  The
Telegraph said the link of its two directors in the Parmalat
investigation puts Deloitte's future in the balance.

This week, its U.K. chief, John Connolly, was under pressure to
resign on account of his credibility.  Mr. Connolly, who became
Deloitte's U.K. senior partner and chief executive in 1999, was
fined GBP40,000 and severely reprimanded by the profession's
watchdog in 1995 for failing to ascertain the true state of
Barlow Clowes' finances.  The 1995 report said his "competence
fell below the standard that should be displayed."

According to the report, Norman Lamb, the Liberal Democrat
shadow Treasury minister and member of the Treasury Select
Committee said: "In terms of restoring confidence both generally
and in terms of Deloitte, it seems to be that Mr. Connolly's
position is no longer tenable," Mr. Lamb said.


EUROPEAN ROLL: Business, Assets for Sale as Going Concern
---------------------------------------------------------
The Joint Administrative Receivers, R H Kelly and G Wilson offer
for sale as a going concern the business and assets of European
Roll Makers Limited (in Administrative Receivership).

(a) High quality producer of rolls for the steel industry

(b) Worldwide blue chip customer base

(c) Annual turnover of GBP7 million

(d) Freehold site at Sheffield with potential for sub-division

(e) High specification CNC machining equipment

(f) 96 skilled employees

For further information please contact Lindsey Hudson, Ernst &
Young, Cloth Hall Court, 14 King Street, Leeds LS1 2JN, Phone:
(0113) 298 2326; Fax: (0113) 298 2206; E-mail: lhudson@uk.ey.com


GREENWOOD DENTAL: Administrators Offer Business, Assets for Sale
----------------------------------------------------------------
The Joint Administrators Shaun Neil Adams and Tyrone Shaun
Courtman offer for sale the business and assets of Greenwood
Dental Laboratory Limited (In Administration), a dental
laboratory specializing in providing quality products and
services to dental customers throughout the U.K.

Principal features:  extensive customer base throughout the
U.K.; experienced and skilled workforce; annual turnover circa
GBP2 million.

For further information, please contact Shaun Adams of:  Cooper
Parry LLP, 14 Park Row, Nottingham, NG1 6GR, Phone: 0115 958
0212; Fax: 0115 958 8800; E-mail: Shauna@cooperparry.com


JASMIN PLC: In Sell-off Talks to Avoid Possible Default
-------------------------------------------------------
In response to the recent increase in the Company's share price,
Jasmin PLC announces that it has entered into preliminary
discussions with a prospective purchaser (which may or may not
lead to an offer for the company), with a view to establishing
an arrangement that will allow Jasmin to trade out of it's
current cash constrained position as reported in its trading
update on December 24, 2003.

The potential buyer has yet to give any indication of its
valuation of Jasmin.  The Board also believes that there are a
number of other interested parties, but at this stage there have
been no formal discussions with any of the other interested
parties whilst the prospective purchaser, with whom the Company
is in talks, conducts due diligence.  If none of the prospective
approaches lead to the sale of the Company, then the Board will
be required to renegotiate its ongoing financial support by its
lenders in respect of the Company's future trading.

The Directors will keep the market informed of developments.

CONTACT:  JASMIN PLC
          Mark Thickbroom
          Finance Director
          Phone: 01159 165 165

          BELL POTTINGER FINANCIAL
          Billy Clegg/Robin Tozer
          Phone: 0207 861 3232


LLOYDS TSB: Finance Director Philip Hampton Leaves
--------------------------------------------------
Lloyds TSB Finance Director Philip Hampton resigned from the
high street bank Tuesday after being unable to reconcile
strategies with the board.

According to The Guardian, company observers said his
resignation could have been triggered by his conflicting view
regarding dividends, among other factors.

He is understood to believe the company's dividend is
unsustainable at the current levels, as the payout of 34.2p a
share to investors is a higher proportion of the company's
profits than that of its rival banks.

"The suddenness of the move coupled with the timing suggest that
the issues regarding capital and dividend had reached an
impasse," said analysis from investment bank Merrill Lynch,
according to the report.

Mr. Hampton, who is known to adopt a conservative view of the
group's future, is unconvinced about the strategy of the company
to operate as high street bank and a life assurance company.  It
is understood he also thinks Scottish Widows should not be a
core part of the group's strategy.

His resignation could mean the company is highly likely to
return to shareholders some of the proceeds of the GBP2 billion
sale of its New Zealand business last year.

Mr. Hampton's position will temporarily be taken over by deputy
chief executive, Mike Fairey.

Lloyds TSB Group has been battling falling earnings for the last
two years.  It fell from being Britain's biggest bank by market
value eight years ago to fifth as its return on equity lagged
other banks.  Shares in Edinburgh-based Lloyds have declined
about 60% from a record high in April 1998.


PACE MICRO: Reports Modest 2003 Pre-tax Profit
----------------------------------------------
Pace Micro Technology's Chairman Sir Michael Bett commented: "I
am pleased to announce that Pace has returned to profit
following a difficult couple of years.  We see opportunities for
development in both continental Europe and Asia, which should
result in a modest improvement in the performance of the
business."

Chairman's Statement

Pace's results for the six months ending November 29, 2003
continued the improvement that started in the first half of
calendar 2003 and the Board is pleased to report that the Group
has made a welcome return to profit.

Results

Turnover on Pace's digital set-top box sales and additional
services rose 32% to GBP110 million (2002: GBP83 million).
Profit before tax and amortization of goodwill was GBP1.1
million (2002: loss GBP15.9 million).  Earnings per share were
0.7p (2002: loss 7.3p).

Trading and financial review

During the period under review Pace shipments rose 51% to
985,000 units and approximately 50% of these units were for the
U.K. market.  In the U.K. revenues remained fairly stable; a
decline in average selling prices was offset by an increase in
unit shipments through BSkyB's continued acquisition of
subscribers and a marked increase in Sky+ demand towards the end
of the period.  However as expected, our cable customers took
very little product.

Asia Pacific and continental Europe generated the majority of
Pace's growth in this period, accounting for 45% of shipments by
volume.  These markets are now showing more activity than they
have for several years and Pace shipped boxes to over 20
different countries, with Sky Italia becoming one of our largest
customers.  We made our first shipments to Viasat in Scandinavia
and the first boxes were shipped to Foxtel in Australia to
enable them to commence their trials.  In Germany, our box is in
final testing at Premiere and we have recently signed a contract
with Kabel Deutschland.  We envisage that these markets will be
important sources of demand over the next year.

Within the U.S. market, demand remains slow and Pace shipped
45,000 boxes, albeit at better margins than previously achieved.
The low level of shipments, high level of engineering and
customer support have resulted in continuing losses in our U.S.
operations.  However consumer demand for high-definition (HD)
content, set top boxes, televisions and displays is
accelerating.  Cable operators are beginning to focus their
attention on digital video recorders (DVRs), during the period
Pace commenced its DVR development program for this market.

The global set-top box market remains highly competitive,
reflected in the gross margin of 19.1% (2002: 12.7%).  The 2002
margin was lower than normal due to one-off losses incurred on
the initial Sky+ shipments, removing this impact gives a like-
for-like margin comparison of 19.1%.

As a result of the business restructuring effected in the last
financial year, overheads for the half-year were reduced to
GBP20.1 million, with the annual cost run rate reducing to GBP40
million from GBP52.3 million in the year ended May 31, 2003.

Net assets were unchanged at around GBP45 million.  Within net
current assets, debtors decreased to GBP56.2 million (May 31,
2003: GBP57.2 million), creditors decreased to GBP34.1 million
(May 31, 2003: GBP38.6 million), stocks decreased to GBP14.3
million (May 31, 2003: GBP16.0 million) and net cash increased a
little to GBP13.8 million (May 31, 2003: GBP13.1 million).

Our world class engineering expertise is being enhanced, which
includes development of some software in India.  We are also
improving competitiveness through new product innovation, cost-
effective designs and quality improvements.

Dividend

The Board has decided not to declare an interim dividend (as
last year).  The position for the full year will be reviewed in
the light of the results for the second half of the year.

Outlook

The dynamics of the global digital TV markets means that the
outlook varies from region to region.

In the U.K., more than half of homes have digital TV and the
increase in penetration is likely to continue.  However, due to
the decline in average selling prices, we expect to see a
reduction in our U.K. revenues over current levels.

Continental Europe and Asia represent opportunity for future
growth, which will be stimulated by lower set-top box prices and
DVR deployments, enabling broadcasters and operators to roll out
their digital services in a profitable way.

In the U.S. our goal is to grow our relatively small market
share through our engagements with Comcast and Time Warner,
together accounting for over 50% of the U.S. cable market.

Since the close of the first half the U.S. dollar has declined,
which in principle should benefit margins, as lower product
costs will offset the decline in average selling prices.
However, it is not possible to predict the impact of future
exchange rate developments.

Overall we expect our business performance to continue to
improve.  This will depend on our ability to win the available
business and our customers' willingness and financial ability to
develop their services and utilize Pace set-top box technology
in volume.

Sir Michael Bett
Chairman

To view financials: http://bankrupt.com/misc/Pace_Micro.htm


PNEUMATIC CONVEYORS: Administrator Seeks Buyers for Business
------------------------------------------------------------
P Sargent of Sargent & Company, Administrator of Pneumatic
Conveyors (Huddersfield) Limited, offers the company's business
and assets for sale.

Key features of the business:

(a) Planners, Designers, Manufacturers and installers of fiber
opening, preparation, blending and card/web former feeding
systems for the textile industry

(b) Annual turnover 1.1 million

(c) Skilled workforce

(d) Product range

(e) Long leasehold site approximately 1.62 acres and A62, 1/2
mile from Huddersfield Town Centre (possibly suitable for
redevelopment) and freehold premises located 5 miles west of
Huddersfield

(f) Modern fabrication and engineering plant

For further information please contact Mark Hodgson or Kelly
Smith at 0845 130 3332, Leeds Manchester; Fax: 0113 247 1776; E-
mail: plant@eddisons.com; Homepage: http://www.eddisons.com


PRINCIPLE PACKAGING: Business for Sale as 'Going Concern'
---------------------------------------------------------
The Joint Administrators, J M Titley and A Poxon, offer for sale
as a "Going Concern," the business and assets of Principle
Packaging Limited.

Key features include turnover of CGBP 3 million; located at
Runcorn, Chesire; 37 employees; full service printing company -
flexographic and gravure printing; specializing in food and
gift-wrap markets; and blue chip customer base

For further details contact Andrew Roe at Cerberus Asset
Management at Phone 0161 737 5252; E-mail:
andy.roe@cerberus.group.com.

Alternative contact: Keith Turpin or Iain Swinson at DTE Leonard
Curtis, 1 North Parade, Parsonage Gardens, Manchester, M3 2NH;
Phone: 0161 831 9999; E-mail: kturpin@dtegroup.co.uk


RAILTRACK PLC: Grills Liquidator Over Documents, Service Fees
-------------------------------------------------------------
Railtrack shareholders are calling on the company's liquidators
to identify documents that could help them in their efforts to
recover investments.

Shareholders, who are keen to prove Railtrack was forced into
administration, sought the documents from liquidators at
Deloitte at a meeting Monday.

They also brought up the liquidator's GBP380-an-hour fees for
winding up RT Group, the successor to Railtrack.

According to the report, shareholder John Edwards asked joint
liquidator Jamie Smith if professional fees of GBP3.67 million
were 'unreasonably high.'   The amount includes GBP1.25 million
paid to property agents Jones Lang Lasalle, GBP1.5 million to
bankers Lehman and GBP39,000 to solicitors Ashurst Morris Crisp.

Smith said: "Clearly they were very large sums of money, but we
are dealing with very complex negotiations."

The fees were approved by 97.8% of proxy voters.  Mr. Smith has
returned GBP1.26 billion, or 243p a share, to investors.   Mr.
Smith is expected to return 9p to 17p in June.


Because of litigation fears, the wind-up may go on until 2009,
the report said.


REGUS GROUP: Out of U.S. Chapter 11 Bankruptcy Protection
---------------------------------------------------------
Regus Group plc confirms its formal exit from Chapter 11.  The
Effective Date of its Plan of Reorganization occurred, as
scheduled, on January 12, 2004.  Regus Group plc is no longer
subject to any court or creditor supervision.

                              *****

In mid-January (2003), Regus filed for Chapter 11 creditor
protection under the Bankruptcy Code in order to reorganize the
Group's principal loss-making operations in the U.S.

CONTACT:  REGUS PLC
          Stephen Jolly
          Group Communications Director
          Phone: 01932 895138


RICHARD ROBERTS: Knitwear, Jerseywear Supply Line for Sale
----------------------------------------------------------
The joint administrators, Nick Dargan and Neville Kahn, offer
for sale the businesses and assets of the Richard Roberts group.
Including Richard Roberts Knitweat Limited, Richard Roberts
International Holdings Limited, Richard Roberts Fashions Limited
(All in Administration).

The group is a major supplier of knitwear and jerseywear to U.K.
retailers, with a turnover of approximately GBP32 million.

(a) Leicester (head office, sales, design, logistics),
Loughborough (yarn & garment dyeing, 63,000 sq. ft.), Kirby in
Ashfield (knitting & make up, 53,000 sq. ft. 300 staff, 40,000
garments/month)

(c) Overseas manufacturing units: Sri Lanka (85% owned, 100,000
sq. ft. 770 staff, 120,000 garments/month), Tunisia (50% JV,
60,000 sq. ft. 300 staff, 40,000 garments/month)

(d) All with associated plant (including electronic, fully-
fashioned and versatile knitting plants)

(e) Three factory outlets - Leicester, Derbyshire, Godalming

(f) Property - freehold: Kirby in Ashfield, leasehold:
Leicester, Hinckley, Loughborough, and factory outlets

For further details please contact nick Dargan at Deloitte&
Touche LLP, PO Box 36833, 180 Strand, London WCR 1WL, Fax: 020
7007 3442 or Charles Hawley at Phone: 0121 695 5279, Mobile:
07769 880214, E-mail: chhawley@deloitte.co.uk


                            *********


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-
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Copyright 2004.  All rights reserved.  ISSN 1529-2754.

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