/raid1/www/Hosts/bankrupt/TCREUR_Public/040126.mbx                T R O U B L E D   C O M P A N Y   R E P O R T E R

                             E U R O P E

                 Monday, January 26, 2004, Vol. 5, No. 17


                              Headlines

B U L G A R I A

BALKAN AIRLINES: Properties Offered at Open-bidding Tender


G E R M A N Y

MESSER GRIESHEIM: Debt Ratings Under Review for Possible Upgrade


I T A L Y

ITALTRACTOR ITM: Corporate Credit Rating Lowered to 'SD'
PARMALAT FINANZIARIA: To Receive EUR150 Million from Banks
PARMALAT FINANZIARIA: Authorities Look for Proof from S&P
PARMALAT FINANZIARIA: Creditors Receive Approval for Motion
PARMALAT FINAZIARIA: Files Bankruptcy Case for Brazilian Unit

PARMALAT FINANZIARIA: S&P Sheds Light on Parmalat Brazil & Italy
PARMALAT CAPITAL: Cayman JPLs Turn to U.S. Courts for Assistance


N E T H E R L A N D S

ROYAL KPN: Hundreds of Jobs to Go at Fixed Division


U N I T E D   K I N G D O M

ABBEY NATIONAL: To Close In-House Active Fund Management
DAWSON INTERNATIONAL: Appoints New Non-Executive Director
EINSTEIN GROUP: Lenders Okay Proposal for Voluntary Arrangement
EURO DISNEY: Q1 Revenues Up 1% After Continued Decline
HOLLINGER INC.: Forms Committee to Review Press Holdings' Offer

LANCER MANAGEMENT: Creditors Have Until April 1 to File Claim
LEEDS UNITED: Refuses GBP5 Million Lifeline; Won't Sell Smith
MISYS PLC: Revenues in Last Six Months down 10% to GBP471 MM
MISYS GROUP: Managing Director to Retire
NETWORK RAIL: Expects DfT's Review to Back Existing Improvements

THORNTONS PLC: Sales Increase 4.4% to GBP109 MM in First Half
VERSAILLES: Succeeded in Acquiring Loans Within Days of Collapse

     **********

===============
B U L G A R I A
===============


BALKAN AIRLINES: Properties Offered at Open-bidding Tender
----------------------------------------------------------
The State Receivables Collection Agency will hold an open bidding
tender for the properties of bankrupt Bulgarian Balkan Airlines
on January 28, according to Sofia News Agency.

There will be two planes and an unspecified number of trucks
available.  The movables offered in the tender are worth
BGN138,560.

A security deposit, accounting for 10% of the initial tender
price, is required for would-be bidders.

CONTACT:  STATE RECEIVABLES COLLECTION AGENCY
          Public Relations Department
          4 Slavyanska Street
          Sofia
          Phone: 9859 5085
          E-mail: E.Ushatova@adv.government.bg



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


MESSER GRIESHEIM: Debt Ratings Under Review for Possible Upgrade
----------------------------------------------------------------
Moody's Investors Service placed Messer Griesheim Group's debt
ratings, including the B1 senior note ratings, under review for
possible upgrade following an announcement that Air Liquide S.A.
is to acquire part of the company.

The ratings placed on review for possible upgrade are:

(a) Senior Implied rating for Messer Griesheim Group GmbH, the
parent of Messer Griesheim Holding AG rated Ba2.

(b) EUR550 million 10.375% Senior notes due 2011 of Messer
Griesheim Holding AG rated B1.

(c) Secured bank debt facilities made available to Messer
Griesheim GmbH and various subsidiaries rated Ba2.

French company Air Liquide has enteed an agreement to buy the
industrial gas producer's operations in Germany, the U.S., and
the U.K. under a EUR2.7 billion debt-financed acquisition.  The
transaction is subject to regulatory approval, and the
restructuring of Messier's curent shareholder group prior to the
disposal.  The deal includes assumed debt of EUR1.2 billion.

According to the rating agency, the review reflects the planned
repayment of the rated bonds and bank facilities from the
consideration paid by Air Liquide.  It is expected that proceeds
will be more than the company's EUR1.3 billion debt, including
financial leases, at the end of September 2003.

Moody's notes that Messer plans to launch a tender offer for the
senior bonds subject to the successful closing of the deal.



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


ITALTRACTOR ITM: Corporate Credit Rating Lowered to 'SD'
--------------------------------------------------------
Standard & Poor's Ratings Services lowered its corporate credit
rating on Italy-based machinery component maker Italtractor ITM
SpA to 'SD' from 'CC'.  At the same time, the rating was removed
from CreditWatch, where it was placed on December 18, 2003.

"The rating actions follow Italtractor's announcement that, while
it will not repay its notes on their original final maturity of
January 22, 2004, nor pay the related coupon on the normal date
of January 22, 2004, it intends to continue to honor other
liabilities," said Standard & Poor's credit analyst Virginie
Casin.

Standard & Poor's notes that the majority of noteholders accepted
a restructuring of the notes, including a change of the final
maturity to January 2008, instead of January 2004.  The execution
of this change is a condition precedent for changes in the
group's bank facilities.

Due to an intervention from Consob, the public authority
responsible for regulating the Italian securities market,
noteholders will have to formally consent to the debt moratorium
after submission of an information memorandum.  Assuming that
noteholders consent once again, the ratings are likely to be
subsequently raised to reflect the group's longer-term operating
and financial outlook.  Nevertheless, Italtractor's
creditworthiness will remain constrained by tight financial
flexibility (that is, the ability to fund ongoing capital
requirements) and high financial leverage, as well as by the
challenges of cyclical demand patterns and price-driven
competition.


PARMALAT FINANZIARIA: To Receive EUR150 Million from Banks
----------------------------------------------------------
The administrators of Parmalat said a group of Italian banks are
willing to provide Italian dairy group Parmalat up to EUR150
million (US$190 million) in loan, according to the Financial
Times.

Banco Populare di Lodi is reportedly the lead bank in the
proposal.  The funds will be provided when the full rescue plan
for the company comes out, possibly late next month.  Prior to
that, an immediate EUR15 million in financing will be provided to
cover operating costs in Italy and abroad while a restructuring
plan is being drawn up.

The government-appointed administrator, meanwhile, promised
unions during a meeting they will be paid salaries for January.

The group's sales rose 8% during the first 20 days of the year,
despite the scandal involving missing funds in the company,
administrators informed attendees of the meeting.


PARMALAT FINANZIARIA: Authorities Look for Proof from S&P
---------------------------------------------------------
The Italian police last week searched the office of U.S. rating
agency Standard & Poor's to gather documents in relation to the
probe on the finances of Italian food group Parmalat.

S&P stressed that magistrates told the agency it was not under
official investigation.  Authorities are only interested in
documents sent by Parmalat to the rating agency, a spokeswoman
said.

The rating agency said it was apparently deceived by Parmalat's
former managers who supplied them with "detailed, false
information."  S&P kept an investment grade rating for Parmalat
ten days before troubles in the company surfaced.  When the news
broke out, S&P had to slash Parmalat's ratings by eight notches
in just 24 hours.

An S&P spokesman in London said: We welcome the opportunity to
cooperate with the Italian authorities," according to Reuters.

Investigators are currently trying to unwind an international
network of bogus transactions that the group claims to have
entered upon.  Eleven people have so far been arrested in
relation to the probe.


PARMALAT FINANZIARIA: Creditors Receive Approval for Motion
-----------------------------------------------------------
The U.S. Bankruptcy Court Judge Robert Drain in New York approved
on Wednesday a motion that will put consideration of three
filings by Parmalat SpA creditors under one judge, according to
Reuters.

The news follows the filing on Tuesday of a motion under Section
304 of the U.S. bankruptcy code that "would prevent the
preferential distribution of assets to certain creditors..."

The filing was made by Gordon MacRae and James Cleaver as joint
provisional liquidators of Parmalat Capital Finance Ltd., Dairy
Holdings Ltd. and Food Holdings Ltd., the three Cayman Islands
units that issued Parmalat debt.

The report citing court papers said the move was done on behalf
of six U.S. insurance companies.

According to the report, creditor representatives expressed fears
Parmalat's Italian creditors may get preferential treatment under
the new especially designed Italian bankruptcy law.

The Cayman Islands creditor group is led by New York lawfirm
Cadwalader, Wickersham & Taft.

The Section 304 Petition Summary:

Petitioners: Gordon I. Macrae and James Cleaver,
             as Joint Provisional Liquidators of the Debtor
             Ernst & Young Ltd.
             4th Floor, Bermuda House
             Dr. Roy's Drive
             George Town, Grand Cayman

Debtor: Parmalat Capital Finance Limited
        P.O. Box 1102 GT
        George Town, Grand Cayman
        Cayman Islands

Case No.: 04-10362

Debtor affiliates:

   Entity                                     Case No.
   ------                                     --------
   Dairy Holdings Limited                     04-10363
   Food Holdings Limited                      04-10364

Type of Business: Procuring and placing funds within the
                  Parmalat group and in the raising of finance
                  for the group from institutional and other
                  investors.

Section 304 Petition Date: January 20, 2004

Court: Southern District of New York (Manhattan)

Petitioners' Counsel: Gregory M. Petrick, Esq.
                      Cadwalader, Wickersham & Taft LLP
                      100 Maiden Lane
                      New York, NY 10038
                      Tel: 212-504-6373
                      Fax: 212-504-6666

Estimated Assets: more than $100 Million

Estimated Debts:  more than $100 Million


PARMALAT FINAZIARIA: Files Bankruptcy Case for Brazilian Unit
-------------------------------------------------------------
Produtos Alimenticios Orlandia SA Comercio e Industria asks the
29th Civil Court of Sao Paulo, Brazil -- the Tribunal de Justica
do Estado de Sao Paulo -- to declare Parmalat Brasil SA
insolvent.

Court records available at http://cpoacv.tj.sp.gov.br/relate the
Brazilian proceeding was filed on January 12, 2004, and is
identified as Proceeding No. 000.04.001896-2.  Orlandia's lawyer,
Gilberto Massaro, filed the petition

Orlandia CEO Flavio Marcelo Cotian Alves says that Parmalat
Brazil's oil division owes Orlandia BRL900,000 or $320,000.  The
Debt became due on December 15, 2003.  Orlandia has given
Parmalat until February 2004 to meet its obligation.

Orlandia may withdraw the involuntary bankruptcy proceedings if
Parmalat enters into a settlement, News Italia Press reports.

Orlandia provides vegetable fat and grain for Parmalat Brazil.
Orlandia started doing business with Parmalat few months before
the scandal in Italy unfolded.

The local stock exchange halted trade in Parmalat Brazil's
(LCAS4.BR) highly illiquid shares as of Tuesday, demanding a
clarification about "bankruptcy proceedings reported in the
press." (Parmalat Bankruptcy News, Issue No. 3; Bankruptcy
Creditors' Service, Inc., 215/945-7000)


PARMALAT FINANZIARIA: S&P Sheds Light on Parmalat Brazil & Italy
----------------------------------------------------------------
In the wake of the default of Italy's Parmalat SpA, certain
questions arise regarding the fate of the rating on the Brazilian
credit receivables fund, Parmalat - Fundo de Investimento em
Direitos Creditorios (the Parmalat FIDC), by Standard & Poor's
Ratings Services.

Standard & Poor's downgraded Parmalat Finanziaria SpA and
Parmalat SpA (Parmalat Italy) to 'D' and withdrew their ratings,
as well as those of related entities, Dec. 19, 2003. On Dec. 22,
2003, however, Standard & Poor's affirmed its 'brAAAf' Brazilian
national scale fund rating on the Parmalat FIDC. The affirmation
was based on the lack of direct impact that these events had on
the creditworthiness of the Parmalat FIDC. How is this possible?
The following answers to FAQs shed light on the relationship
between the Parmalat FIDC and the Italian company, Parmalat SpA.

                              FAQs

* What Is a Brazilian Fundo de Investimento em Direitos
  Creditorios (an FIDC)?

An FIDC is a financial vehicle that works under the financial
structure and administrative shell of a fund, in both open- and
closed-end types, but is a bankruptcy- remote entity that
demonstrates uniqueness of both structured transactions and
investment funds. Additionally, each fund manager can incorporate
a combination of credit portfolios (representing at least 50% of
the fund's total assets) and debt securities as an underlying
asset of the fund.

Compared with fixed-income securities, FIDCs do not promise
investors (shareholders) specific interest payments or principal
repayments. Thus, each shareholder only expects to receive a
targeted return on their investment (in the case of the Parmalat
FIDC, the targeted return is the Brazilian Spot Depositos
Interfinanceiros index plus 1.7%), and based on the performance
and the characteristics of the fund they can choose at any time
to redeem their shares.

The legal and administrative framework for credit receivables
funds was created Dec. 17, 2001, by the Security Exchange
Commission of Brazil's (Comissao de Valores Mobiliarios)
regulation Instrucao 356.

* What Distinguishes Brazilian National Scale FIDC Ratings From
  Other Standard & Poor's Ratings?

Standard & Poor's assigns credit quality ratings to FIDCs, fixed-
income funds, and other managed pools of fixed-income assets. The
credit quality rating assigned to a fund addresses the level of
protection its portfolio holdings provide against losses from
credit defaults.

Standard & Poor's Brazilian national scale credit quality
ratings, which range from 'brAAAf' (highest level of protection)
to 'brCCCf' (least protection), are based on an analysis of the
fund's overall portfolio credit quality, interest rate risk,
credit quality, liquidity, concentration, and currency risk.
Standard & Poor's Brazilian national scale credit ratings carry a
"br" prefix to denote "Brazil" and the scale's focus on Brazilian
financial markets. The Standard & Poor's Brazilian national
credit rating scale is not directly comparable with Standard &
Poor's global scale or with any other national rating scale
operated by Standard & Poor's or its affiliates, reflecting its
unique structure that is tailored to the needs of the Brazilian
financial markets.

On the other hand, a Standard & Poor's credit rating on a debt
obligation addresses an issuer's ability to pay interest and
principal on the obligation, according to the terms and
conditions of the obligation. This applies to ratings on debt
securities in the U.S. and across the globe, including emerging
markets.  Standard & Poor's role when rating a debt obligation is
to analyze associated credit risks and any protections for those
credit risks to assess the likelihood that an issuer will meet
all of its promised payment obligations.

Standard & Poor's credit quality and credit ratings do not
address market risks such as the risk of early repayment of
principal or early redemption of shares to investors.

* What Are the Key Analytical Considerations Factored Into the
  Rating on the Parmalat FIDC?

The Parmalat FIDC is a closed-ended fund whose main underlying
assets originally consisted of trade receivables directly
originated by Parmalat Brasil S.A. and Batavia S.A., both
indirectly controlled subsidiaries of Parmalat SpA, in Brazil.
These receivables were originated through the sale of shipped
products to specified obligors, cash, and other specified
investments. Senior shares of the fund total Brazilian reais
(BrR) 110.5 million and were sold to investors Nov. 27, 2003.
Subordinated shares amount to BrR19.5 million and were retained
by the originators. The fund has a defined final maturity of
three years, which began Nov. 27, 2003. Under the terms and
conditions of the Parmalat FIDC, the fund's manager is able to
include credit receivables and other fixed-income securities in
the fund's portfolio at any time.

The credit enhancement mechanism determined for the 'brAAAf'
rating affords credit support for the Parmalat FIDC's senior
shares and is provided in the form of structural subordination.
The subordination level was originally set by the fund's sponsor
at 15%, while Standard & Poor's requirement consisted of the
larger of a floor subordination of 12% and a variable (dynamic)
subordination calculated regularly. The key strengths of the
Parmalat FIDC's senior shares observed during Standard & Poor's
rating analysis were:

(a) The experience of Parmalat Brasil and Batavia as trade
   receivables originators;

(b) The robust cash flow structure in the form of
   senior/subordinated shares;

(c) The credit quality of the trade receivables supporting the
    senior shares, which have a good historical performance
    record in terms of payment;

(d) The dynamic reserve (credit enhancement mechanism) included
    in the structure to cover related credit risks (initial
   subordination of 15% for the senior shares);

(e) The capability of Banco Itau S.A., as custodian of the
   transaction, to manage and perform servicing and reporting on
   the transaction; and

(f) The legal structure of the transaction, which has adequate
   provisions for legally safeguarding the shareholders.

* Has the Recent Default of Parmalat SpA Affected the Performance
of the Parmalat FIDC?

The Dec. 19, 2003, default of Parmalat SpA has not directly
affected the performance or creditworthiness of the Parmalat
FIDC.

The Parmalat FIDC is a bankruptcy-remote Brazilian credit
receivables fund that has no legal or direct financial connection
with Parmalat SpA or any of its subsidiaries. The fund has
sufficient receivables isolated from the originators to provide
the appropriate level of credit enhancement for a 'brAAAf'
rating.

Other factors that keep the creditworthiness of the Parmalat FIDC
unaffected by Parmalat SpA's default are:

(a) The servicer of the receivables is Banco Itau, an entity
   unaffiliated with the originators (which are not rated by
   Standard & Poor's);

(b) The receivables represent sales of products that have
   already been delivered;

(c) The fund stopped purchasing new receivables Dec. 19, 2003;

(d) The fund's outstanding receivables (representing less than
    10% of the fund's portfolio as of Jan. 14. 2004) are short-
    term in nature and are due to be paid within approximately
    15 days; and

(e) The fund manager is now allocating all collections to the
   fund's permitted investments.

* What Has Happened Since the Jan. 6, 2004, Parmalat FIDC
  Shareholder Meeting?

Because of the events that affected Parmalat SpA and its
subsidiaries, the fund's sponsor, Intrag DTVM Ltda, called for an
extraordinary shareholders' meeting to take place Jan. 6, 2004.
The only resolution reached during that meeting was that another
meeting would be held Jan. 19, 2004, during which shareholders
will decide whether the fund should continue operating or be
redeemed early (repayment of shareholders).

Since the Parmalat FIDC started operating Nov. 27, 2003, Standard
& Poor's has been receiving several servicing reports and
additional portfolio information from the servicer, as requested.

These reports confirm that the fund's portfolio performance is in
line with the historical payment performance of the originators'
client base. Additionally, no early amortization or liquidation
event has occurred. As of the date of the present report, credit
receivables represent less than 10% of the fund's total assets.
The remaining holdings of the fund are permitted investments not
related to Parmalat SpA or any of its subsidiaries. These
permitted investments consist of overnight investments in 'brAA'
rated financial institutions, government bonds, or shares of
other fixed-income funds rated or assessed by Standard & Poor's.

* What Could Happen to the Rating on the Fund After the Upcoming
  Jan. 19, 2004, Shareholders' Meeting?

Standard & Poor's opinion of the Parmalat FIDC's credit risk has
not changed significantly since its Dec. 22, 2003, rating
affirmation. Nevertheless, the impact of Parmalat SpA's default
could affect the originators' ability to continue generating
healthy receivables to be sold to the fund.

In addition, the originators' ability to generate new receivables
depends on the potential for recovery of their credit and
financial situation, which at the moment remains uncertain.
Consequently, Standard & Poor's would likely lower its rating on
the Parmalat FIDC significantly if the fund's shareholders decide
during the Jan. 19, 2004, meeting to continue with the fund's
operations and purchase new receivables from Parmalat Brasil and
Batavia. The downgrade would reflect the uncertainty of the true
credit and legal risks of the new receivables. Nevertheless, it
is Standard & Poor's opinion that the Parmalat FIDC's
shareholders are likely to liquidate the fund, in which case the
rating would be maintained until liquidation and then withdrawn,
assuming there are no other changes to the fund's performance or
Standard & Poor's opinion of its future performance.


PARMALAT CAPITAL: Cayman JPLs Turn to U.S. Courts for Assistance
----------------------------------------------------------------
The Grand Court of the Cayman Islands appointed Gordon I. Macrae
and James Cleaver at Ernst & Young Ltd., to serve as Joint
Provisional Liquidators for Parmalat Capital Finance Limited,
Food Holdings Limited and Dairy Holdings Limited after winding-up
petitions were filed against the finance companies by a group of
creditors.

Since the commencement of the Cayman Islands winding up
proceedings, the JPLs have been working diligently to gather the
books and records of the Companies and to ascertain the assets
and liabilities of the Companies.  Parmalat Capital's 2002
financial statements show that the company had $7 billion in
assets and $5.7 billion of debt.  The JPLs suspect Parmalat
Capital has at least one bank account in a New York branch of
Bank of America.

Pursuant to Section 304 of the U.S. Bankruptcy Code, the JPLs ask
the U.S. Bankruptcy Court to issue a Temporary Restraining Order
and Preliminary Injunction in order to preserve the status quo
and prevent Parmalat, SpA, Parmalat Finanziaria SpA, Mr. Enrico
Bondi, or any other entity from grabbing any cash at BofA or any
other U.S. asset.

The JPLs tell the U.S. Bankruptcy Court that they understand Mr.
Bondi has already instructed Maples and Calder, his Cayman
Islands attorneys, to petition for their removal.

Although Parmalat Capital is organized and incorporated in the
Cayman Islands, the JPLs relate, on March 31, 2002 the directors
of Parmalat Capital transferred the management and control of the
company to Malta.  Consequently, many of the books and records of
Parmalat Capital are currently in the offices of Deloitte &
Touche in Malta.  The JPLs understand that the Maltese Financial
Services Authority will be taking possession of those books and
records and that the JPLs will be permitted access to the books
and records shortly thereafter.

Bruce R. Zirinsky, Esq., Gregory M. Petrick, Esq., and Jason A.
Cohen, Esq., at Cadwalader, Wickersham & Taft LLP, represent the
JPLs in the Section 304 Proceeding (Bankr. S.D.N.Y. No. 04-10362)
filed January 20, 2004. Guy Locke, Esq., at Walkers represents
the JPLs before the Grand Court of the Cayman Islands.



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


ROYAL KPN: Hundreds of Jobs to Go at Fixed Division
---------------------------------------------------
As a result of efficiency measures and the introduction of new
technologies, approximately 800 jobs will be lost from within
KPN's fixed network services division in 2004.  The largest part
of the reduction, approximately 500 jobs, will be realized
through natural wastage.  The bundling of marketing and sales
activities at the head office results in some 300 compulsory
redundancies.

KPN considers improvements in efficiency and effectiveness to be
essential now that the division's turnover is under continuing
pressure due to the erosion of prices, increased competition and
an increase in the number of people who only use a mobile phone.
The works council and the unions have been consulted for advice.
Provisions will be made with regard to the severance scheme in
accordance with KPN's social plan.  Costs amounting to
approximately EUR20 million are expected to fall in the first
quarter of 2004.

CONTACT:  ROYAL KPN
          Press Office
          Phone: +31 (0)70 446 63 00.

          Investor Relations
          Phone: +31 (0) 70 446 09 86

          Corporate Communications
          Fax: +31(0)70 446 6310
          E-mail: press@kpn.com

          Investor Relations
          Fax: +31(0) 70 446 0593
          E-mail: ir@kpn.com



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


ABBEY NATIONAL: To Close In-House Active Fund Management
--------------------------------------------------------
In a significant change in its investment strategy, Abbey is
introducing a multi manager approach to its actively managed bond
and equity-based Unit Linked Life & Pensions and Unit Trusts.  At
the same time it will move its With Profits funds to an
investment strategy involving a mix of index-tracking management
and a multi manager approach.  This is expected to produce better
and more consistent risk-adjusted returns for customers in the
long term.  Abbey National Asset Managers (ANAM) 2 will cease the
majority of in-house active fund management for its GBP29 billion
portfolio.

These changes to how it will manage its customers' investments in
future are part of Abbey's ambition to provide customers with
excellent investment performance and choice.  Abbey intends to
achieve this by identifying and utilizing the leading managers in
the market for each type of investment, while Abbey restricts its
direct activities to areas of core competence.  The changes will
not have a material financial effect to Abbey initially, though
the anticipated customer gains and management focus are expected
to be beneficial to Abbey over time.

Abbey has signed an agreement with State Street Global Advisors3,
the investment arm of State Street Corporation, to assist in the
program of change from Monday January 26, 2004 and they will be
one of a number of multi manager partners once mandates have been
agreed.  The fund objectives and charges will remain the same.
All that will change is the approach used to deliver those
objectives.

Unit trust and unit-linked customers to benefit from multi
manager approach

In time, through a multi manager arrangement, Abbey will no
longer directly manage funds itself, but instead will use some of
the world's leading fund managers to do so, while maintaining the
all-important relationship with its direct customers through
providing advice on their individual investment requirements.
With multi manager, Abbey will:

(a) select appropriate fund managers for each asset class;

(b) monitor their performance;

(c) change them when necessary.

Abbey selects the fund managers from a global pool of leading
institutional and retail fund managers.  It enters into contracts
with them to deliver specific objectives, including appropriate
return targets and risk parameters for its equity and bond-based
funds.

Objective of better long-term returns for With Profits customers
The equity component of Abbey's With Profits funds will be
managed through a combination of multi manager and index-tracking
management. This approach will allow for a degree of active
management while, at the same time, aiming to reduce
underperformance risk and therefore improve consistency of
return.

Luqman Arnold, Abbey's Chief Executive said: "Over the last three
years Abbey has used two different models in its fund management
approach.  Our in-house manager, Abbey National Asset Managers,
on a single manager basis, managed all Scottish Mutual, Scottish
Provident and Abbey-branded funds whilst the Inscape funds were
based on a multi manager model.  The multi manager approach has
proved extremely successful and we expect it to provide the
optimal solution for our customers.

"By extending a multi manager approach to the majority of our
investment range, we will be giving customers access to a range
of top-class specialist fund managers, many of which are normally
only available to institutional investors.

"For With Profits customers, we believe that their needs are also
better met by the new approach, which we expect to deliver both
peace of mind and performance."

A program to rationalize the existing fund range of more than 550
funds is now underway and will continue in the coming months.
The outcome of this program of rationalization will be that
existing customers will get access to the same multi manager
benefits as new customers.  Abbey will also exit from managing
funds on behalf of third party institutions.

Around 60 roles from within fund management and from the back
office at Glasgow-based ANAM will be made redundant over the next
few months.  Every effort will be made to find suitable
employment within Abbey for those affected.  Full support will be
given to help them find alternative employment if redeployment is
not possible.  The specialist direct property investment team of
11 in Glasgow will be retained.


DAWSON INTERNATIONAL: Appoints New Non-Executive Director
---------------------------------------------------------
Dawson International PLC, the world's leading cashmere business,
announced the appointment of Aidan Creedon (49) as a non-
executive director.  He joins the Board with immediate effect.

A chartered accountant with considerable expertise in a range of
industries, Mr. Creedon's experience extends across textiles,
luxury goods and the retail sectors.  He has been providing
advice to the company on a consultancy basis for some months.  He
is currently Deputy Chairman and Finance Director of two
companies, luggage retailer Tripp Holdings Limited and golf
clothing company Proquip Ltd.  He was previously a main board
director of Pittards Plc and East Surrey Holdings Plc.

Commenting on the appointment, Mike Hartley, chairman of Dawson
International PLC said: "I welcome Aidan Creedon to the Board of
Dawson International.  I am confident that his background and
experience will add value to the strategic review currently
underway aimed at returning the Group to profitability."

No details require to be disclosed under paragraph 6.F.2(b) to
(g) of the Listing Rules.


Dawson International is planning to launch a fund-raising
exercise early in 2004 to stabilize the short-term financial
position of the group.

CONTACT:  DAWSON INTERNATIONAL
          Mike Hartley, Chairman
          Phone:01577 867000


EINSTEIN GROUP: Lenders Okay Proposal for Voluntary Arrangement
---------------------------------------------------------------
Results of Creditors and Members Meetings

The Company has been subject to an Administration Order since
July 30, 2003.  On December 23, 2003, the joint Administrators,
Lane Bednash and Asher Miller of David Rubin and Partners, sent
out a proposal to all creditors recommending a Company Voluntary
Arrangement.  The proposal was also sent to all members on
January 8, 2004.  Meetings for Creditors and Members to vote on
the proposal was held January 22, 2004.

At the creditors' meeting the resolution that the Company
Voluntary Arrangement be adopted was overwhelmingly approved.

At the members' meeting the resolution that the Company Voluntary
Arrangement be adopted was approved.  Voting was unanimously in
favor of the proposal.  (There were no votes against).

A further announcement relating to the Company's future will be
made shortly at which point it is expected that further details
regarding the restoration to trading of the Company's shares on
AIM will be provided.


EURO DISNEY: Q1 Revenues Up 1% After Continued Decline
------------------------------------------------------
Euro Disney S.C.A., the operating company of Disneyland Resort
Paris, reported record first quarter revenues lifted by a strong
holiday season and a successful Halloween period.  This revenue
growth follows two previous consecutive quarters of significant
revenue decline.

Disneyland Resort Paris revenues for the three months ended
December 31, 2003 amounted to EUR264.1 million compared to
EUR262.2 million for the corresponding period of the prior year.

Revenues by segment and activity were:

                            First Quarter          Variation
                           ended December 31,

Unaudited (EURin millions)   2003        2002     Amount      %

Theme Parks                131.2       128.8       2.4       2 %

Hotels and Disney Village  102.7       103.5     (0.8)     (1) %

Other                       26.4        26.3       0.1       - %

Resort Activities Segment  260.3       258.6       1.7       1 %

Real Estate Development      3.8         3.6       0.2       6 %
Activities Segment

Total Revenues             264.1       262.2       1.9       1 %

Theme Parks revenues increased EUR2.4 million to EUR131.2
million, an improvement of 2% over the prior year first quarter,
resulting from increased spending per guest and stable theme park
attendance.

Hotels and Disney Village revenues decreased EUR0.8 million to
EUR102.7 million, a decrease of 1% from the prior year.  These
revenues reflect an expected decrease in hotel occupancy
following the opening of additional third party on-site hotels
that was almost entirely offset by an increase in average
spending per room.

Real Estate Development Activities revenues increased EUR0.2
million over the prior year quarter, in line with our
expectations.

As previously announced in November 2003, the Company obtained
waivers through March 31, 2004 from its lenders with respect to
certain financial covenants and other obligations, including the
level of its debt security deposit requirements.  The purpose of
the waivers was to provide a period of time to reach resolution
to the Company's financial situation.  Negotiations with the
Company's various stakeholders are ongoing.

The Company finished the quarter ended December 31, 2003 with
EUR26.1 million of cash and short-term investments and a balance
of EUR110.0 million outstanding (out of a total amount available
of EUR212.7 million) under the credit facilities provided by The
Walt Disney Company.

Commenting on the situation, AndreLacroix, Chairman and Chief
Executive Officer of Euro Disney S.A., said:

"I am pleased with our first quarter revenue performance,
especially after the downward trend in our revenue performance
during the second half of fiscal 2003 (-7% in the third quarter
and -11% in the fourth quarter) due to various factors negatively
impacting the travel and tourism industry.

These first quarter revenues reflect our new product developments
with the launch of our enhanced Halloween and Christmas seasonal
products, combined with innovative marketing.  The second quarter
will include the launch of our new
Lion King Carnival and our new pan-European advertising campaign:
Needmag?c.  We will continue to work at strengthening the
Disneyland Resort Paris brand in the European marketplace.

I am convinced that these two key pillars of our re-launch
strategy -- new product and innovative marketing -- will
contribute to the growth at Disneyland Resort Paris, the premier
European resort destination."

Additional financial information can be found on the internet at
http://www.eurodisney.com

Euro Disney S.C.A. and its subsidiaries operate Disneyland Resort
Paris which includes: Disneyland Park, Walt Disney Studios Park,
seven themed hotels with approximately 5,800 rooms, two
convention centres, Disney Village, a dining, shopping and
entertainment centre, and a 27-hole golf facility.  The Group's
operating activities also include the management and development
of the 2,000-hectare site, which currently includes approximately
1,000 hectares of undeveloped land.  On-site lodging capacity
includes approximately 1,600 additional units, which are owned by
third parties.  Euro Disney trades in Paris
(SRD), London and Brussels.

CONTACT:  EURO DISNEY
          Corporate Communication
          Philippe Marie
          Phone: +331 64 74 59 50
          Fax: +331 64 74 59 69
          E-mail: philippe.marie@disney.com

          Investor Relations
          Sandra Picard-Rame
          Phone: +331 64 74 56 28
          Fax: +331 64 74 56 36
          E-mail: sandra.picard@disney.com


HOLLINGER INC.: Forms Committee to Review Press Holdings' Offer
---------------------------------------------------------------
Hollinger International Inc. (NYSE: HLR) announced the formation
of a Corporate Review Committee of its Board of Directors to
evaluate the implications of the letter sent to the Board by
Press Holdings International Limited and to review all
appropriate actions and alternatives available to the Company.

The members of the Corporate Review Committee are: Amb. Richard
R. Burt; Dr. Henry A. Kissinger; Mr. Shmuel Meitar; Mr. Paris;
Mr. Richard N. Perle; Mr. Graham W. Savage; Amb. Raymond G.H.
Seitz; and Gov. James R. Thompson.

The Board also elected Gordon A. Paris, Interim Chief Executive
Officer and President, as Interim Chairman of the Board.

Prior to the meeting Lord Black transmitted to Board members a
letter seeking to justify his receipt of the unauthorized
payments previously disclosed by the Company and expressing his
rationale for failure to comply with the agreement Lord Black
reached with the Company in November 2003 requiring repayment of
these sums and other matters.  At Thursday's Board meeting the
Special Committee reviewed certain facts concerning the payments,
and Lord Black expressed further views.  The Board thereupon
voted that there was no reason to change its views that led to
adoption of the November Agreement, and the Board confirmed its
insistence on implementation of the November Agreement.

Hollinger International Inc. is a global newspaper publisher with
English-language newspapers in the United States, Great Britain,
and Israel.  Its assets include The Daily Telegraph, The Sunday
Telegraph and The Spectator magazine in Great Britain, the
Chicago Sun-Times and a large number of community newspapers in
the Chicago area, The Jerusalem Post and The International
Jerusalem Post in Israel, a portfolio of new media investments
and a variety of other assets.

The company's September 30, 2003, balance sheet discloses a
working capital deficit of about $293 million.


LANCER MANAGEMENT: Creditors Have Until April 1 to File Claim
-------------------------------------------------------------
To: All Investors, Creditors and Interested Persons of Lancer
Management Group, LLC, Lancer Management Group II, LLC, Lancer
Offshores, Inc., Omnifund, Ltd., LSPV Inc., LSPV, LLC, Alpha
Omega, Inc., and G.H. Associates, LLC.

You are hereby notified that Marty Steinberg, Esq. is the Court-
appointed Receiver for the Receiver Entities.  Your are further
notified that the United States District Court for the Southern
District of Florida has entered an order establishing the April
1, 2004, as the deadline by which all persons having claims
against any of the Receivership Entities must file written Claim
Forms with Receiver.

In the event you intend to assert a claim against any of the
Receivership Entities, you must complete a Claim Form and return
it along with any supporting documents to the Receiver so that it
is a claim on this form regardless of whether you have previously
forwarded proof of your claim in any form to the Receiver, the
Securities and Exchange Commission, the Court, the Eastern
Caribbean Supreme Court, In the High Court of Justice, The Virgin
Islands or their respective agents, officers, directors,
employees, attorneys, accountants or other professionals.

All claims not so filed will be forever barred.

If you do not receive a claim for by mail, you may request one by
calling (866) 285-5897, emailing your request to
lancer@hunton.com, or at the following website:
http://www.hunton.com/news_events/legal_dev/Lancer_Receivership_I
nformation.html


LEEDS UNITED: Refuses GBP5 Million Lifeline; Won't Sell Smith
-------------------------------------------------------------
Leeds United turned down a GBP5 million joint offer from
Tottenham for players Paul Robinson and James Milner.  It also
said it would not sell striker Alan Smith.

The refusal came despite the Yorkshire club's bad need for GBP5
million to convince their creditors they have sufficient funds to
last the end of the season.  Leeds United has until Monday to
assure its creditors of its survival.

The club, meanwhile, denied Newcastle had put in an official bid
for Smith, whom it said is "definitely not for sale."

The club, which has debts of around GBP82 million, risked going
into administration should it fail to find necessary funding
soon.


MISYS PLC: Revenues in Last Six Months down 10% to GBP471 MM
------------------------------------------------------------
Misys plc, the global software products and solutions company,
announces its interim results for the six months ended November
30, 2003:

Highlights: Banking and Securities - continued weak market
conditions, but reorganization now complete; Healthcare - good
market conditions and another strong operating performance;
Financial Services - continued weak market conditions; Disposal
of non-core Banking and Securities businesses completed;
Acquisition of LoanIQ product completed after the half year end;
Financial - Group revenues down 10% to GBP471 million, statutory
operating profit down 45% to GBP17 million, adjusted operating
profit* down 22% to GBP48 million, basic EPS at 4.1p up from 2.6p
last year, adjusted basic EPS* at 6.9p down from 8.1p last year,
interim dividend payable of 2.44p per share, up by 15%.

* Adjusted to exclude goodwill amortisation and, in respect of
EPS, the non-operating exceptional items and the 2003/04
exceptional tax credit in respect of prior years.

Commenting on the results, Kevin Lomax, Executive Chairman of
Misys said:

"While these results were disappointing, we have made good
progress across the Group in developing our products,
strengthening our businesses, and repositioning our portfolio, in
order to position ourselves for an improvement in market
conditions.  Our businesses are healthy, and we remain confident
that the Group is well placed to continue to take advantage of
market opportunities and to create shareholder value."

To see financial statements:
http://bankrupt.com/misc/Misys_6Month.htm

CONTACT:  MISYS PLC
          Kevin Lomax, Executive Chairman
          Phone: +44 (0)20 7368 2300

          Howard Evans, Finance Director
          Phone: +44 (0)20 7368 2300

          Andrew Farmer, Head of Investor Relations
          Phone: +44 (0)20 7368 2307
          Mobile: +44 (0)7909 895094


MISYS GROUP: Managing Director to Retire
----------------------------------------
John Sussens, Group Managing Director of Misys plc, has announced
his intention to retire from the Board on May 31, 2004.

Consequent on John's departure Ivan Martin and Tom Skelton,
respectively Chief Executives of the Banking and Healthcare
Divisions, will report directly to the Executive Chairman.

Commenting on John's decision, Kevin Lomax, Executive Chairman of
Misys plc, said, "John joined the Group in 1989 and has been at
the heart of its management and its success ever since.  His
contribution, as the driving force behind the Group's operational
management, and as a friend and colleague, has been immense.
John's decision to retire is part of an orderly program of
succession planning, on which he and I have been working together
for some time.  I am grateful to John for his courageous
leadership, steadfast support and wise counsel.  He will be
sorely missed both by me and by his many friends across the
Group."

About Misys PLC

Misys is a global software products and solutions company,
supplying the international banking and securities, U.S.
healthcare, and U.K. retail financial services sectors.  The
Group also carries out transaction and claims processing for U.S.
physicians and UK independent Financial Advisers.  Misys partners
with its customers to deliver outstanding IT solutions to
essential industries and employs over 6,500 people
internationally.

CONTACT:  MISYS PLC
          Kevin Lomax, Chairman
          Phone: 020 7368 2300

          Andrew Farmer, Head of Investor Relations
          Phone: 020 7368 2307
          Mobile: 07909 895094


NETWORK RAIL: Expects DfT's Review to Back Existing Improvements
----------------------------------------------------------------
Network Rail warmly welcomed the announcement by the Department
for Transport of a review of the structure and regulation of the
rail industry.  It hopes the review will support the early
improvements in train punctuality which have been seen recently
and Network Rail intends to play a positive role in the
consultation process.

The Secretary of State made clear that the structure of Network
Rail will not be reviewed as part of this process.  Speaking in
the House of Commons, Mr. Darling said: "The first stage of
reform was to set up Network Rail. the second stage is to
streamline the remaining structure of the railway."

The willingness of the DfT to review the institutional
arrangements governing railway safety is especially welcome.
Rail is already a very safe mode of transport and Network Rail is
committed to continually improving rail safety.

Network Rail was created in October 2002 and has already taken
significant steps to restructure the organization it inherited.
In October 2003, the ground-breaking decision to bring all rail
maintenance in-house was announced, and the company is currently
reorganizing itself to focus on its customers and improving
performance.

The reorganization includes the creation of Integrated Control
Centers to continue the recent improvements in train punctuality.
The move to Integrated Control Centers, whereby a single manager
takes overall responsibility for ensuring train movements are
determined by the needs of rail users, is due to commence at
Waterloo in early February.

The recent publication of the Regulator's conclusions from the
interim review provided the necessary certainty, stability and
visibility regarding the level of expenditure for which it will
be funded over the next five years.  This will enable the firm to
plan properly for the future and focus on delivering the very
significant improvements in both efficiency and the performance
of the railway that are needed.  The review also clarified and
reinforced the company's accountability for these improvements to
both our customers and to the Regulator.  Network Rail therefore
welcomes the government's confirmation the principle of
independent economic regulation is essential and will be central
to its proposals.

Railway punctuality is currently showing significant
improvements.  Since October 2002, Network Rail has put in place
clear plans of action to drive performance improvements.  Autumn
delays were down 27%.  In 2002, there were 1,177,375 autumn delay
minutes; in 2003 it was reduced to 855,390.  Year-on-year, delays
are currently down by 6%.  It is important that any changes
support this promising improvement.

The Secretary of State endorsed the improvements Network Rail is
delivering, saying that "Network Rail is already making
significant progress improving the performance of the track and
signaling and getting a grip on costs."

Commenting on the announcement of the review, Ian McAllister,
Chairman, said:  "I warmly welcome this review and thank the
Secretary of State for his positive comments about the work
Network Rail is doing.  The management team at Network Rail will
work hard to provide constructive ideas to improve the
effectiveness of the rail industry and deliver better
performance."

Mr. McAllister continued: "It is particularly pleasing that this
consultation exercise includes rail safety arrangements.  It is
imperative that rail safety is treated in a rational and
proportionate manner.

"Train punctuality is showing early but significant signs of
improvement.  We will work closely with government in the months
ahead to help ensure that the outcome of this review builds on
the progress already being achieved."


THORNTONS PLC: Sales Increase 4.4% to GBP109 MM in First Half
-------------------------------------------------------------
Thorntons PLC, the speciality retailer and manufacturer of high
quality chocolate, toffee and other sweet foods, reports sales
figures for the 28 weeks ended January 10, 2004.

Highlights:

(a) Total company sales increased by 4.4% to GBP109.3 million.

(b) Own shop sales increased by 2.4% on an estate virtually
unchanged in size at 388 with the number of cafes rising by one
to 27.

(c) Own Shop like-for-like sales for the half-year were +2.5%.
Strong growth over Christmas resulted in like-for-like sales of
+4.6% for the seven weeks ended Saturday December 27.  However,
margin levels did not fully meet our internal expectations.

(d) franchise sales growth of only 1.3% despite 10 more outlets
was mainly due to de-stocking and some short-term summer re-
merchandising into gifts and cards.  In addition most Franchises
do not sell ice cream in contrast to almost all our own stores.

(e) Commercial: The strategy to widen distribution of Thorntons
products into other retailers continues to be highly successful.
Private label commercial sales rose by 6.0% to GBP8.8 million and
Thorntons branded commercial sales were up 140%, driven by new
listings, to GBP3.6 million.

(f) Thorntons Gift Delivery Service sales fell by 2.9% to GBP3.3
million which was a disappointment given the previous exceptional
growth.  However, there is still great scope to continue growing
this business.

(g) Royalty income from the licensed range of cakes, puddings,
biscuits and other sweet food was static at GBP248,000 in the
half year, as a result of our decision to concentrate on certain
product categories and discontinue others.

Peter Burdon, Chief Executive, commented: "I am pleased with the
strong performance over Christmas.  Whilst I would have wished
for our margin to have been stronger, we were left with little
surplus stock post Christmas.  Progress on new Commercial
listings has been very good and we now have products on the shelf
of every major food retailer.  We are developing the range
further into this new market with a range of boxed chocolates and
Easter eggs.

While the turnaround in sales since the summer is very
encouraging, we recognize that creating consistent sales growth
is key and this is central to our strategy.  In addition, we
intend to give further impetus to margin and cost improvement."

Thorntons plc will be announcing their Interim Results on
Tuesday, February 24, 2004.

On October 29 the Company announced that preliminary discussions
were being held with a number of parties, which may or may not
lead to an offer for the company.  Those discussions are
continuing and shareholders will be kept informed as and when
there is any material development.

CONTACT:  THORNTONS PLC
          Peter Burdon, Chief Executive
          Phone: 01773 540550
          Martin Allen, Finance Director
          Phone: 01773 540550

          Corporate Issues:
          John Jackson, Non-executive Director
          Phone: 01243 622223

          BUCHANAN COMMUNICATIONS
          Charles Ryland/Catherine Miles
          Phone: 020 7466 5000


VERSAILLES: Succeeded in Acquiring Loans Within Days of Collapse
----------------------------------------------------------------
The prosecutor in the fraud case against former executives of
trade finance group Versailles pointed out to the court last week
the defendants continued with their anomalous transaction almost
up to the last days of the company's existence.

The court is hearing the case against Versailles' founder, Carl
Cushnie, and accounts controller, Lorraine, and Fred Clough, the
finance director at Southwark Crown Court.  Mr. Clough has
admitted conspiring to defraud creditors to the company, while
the other two pleaded not guilty.

According to the Telegraph, Anthony Evans, QC, prosecuting,
claims Mr. Cushnie made GBP37 million from the fraud.  The jury
was also told that to the very end, Mr. Cushnie courted banks and
traders for extra funds, despite making GBP29 million from
selling his own shares.  He is accused of falsely declaring the
company was owed over GBP500,000 by British Aerospace, British
Steel and the Ministry of Defense.

Barclays Bank is said to have lent GBP10 million to Versailles
just two before the group's shares were suspended in 1999.

The fraud is said to have run soon after the company was set up
in 1991 until it was discovered in 1999, when the DTI began
investigating the company.

Versailles' debt stands at GBP70 million when the firm collapsed
late in 1999.




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.  Additional e-mail subscriptions for
members of the same firm for the term of the initial subscription
or balance thereof are US$25 each. For subscription information,
contact Christopher Beard at 240/629-3300.


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