/raid1/www/Hosts/bankrupt/TCREUR_Public/040312.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
Friday, March 12, 2004, Vol. 5, No. 51
Headlines
B E L G I U M
CARESTEL N.V.: Completes Sale of Global Hotel Stake
F R A N C E
ALCATEL: Ratings Raised to 'BB-'; Outlook Stable
ALSTOM SA: May Have to Renegotiate Debt Due to Cash Shortfall
RHODIA SA: Unexpected Costs May Lead to Cash Crunch
G E R M A N Y
DEUTSCHE TELEKOM: Achieves Turnaround with EUR1.3 Bln Net Income
DEUTSCHE TELEKOM: S&P Elevates Ratings to CreditWatch Positive
DRESDNER BANK: 'B-' Rating Assigned to UkrSibbank's Eurobond
MVV ENERGIE: To Restructure Telecommunications Business
VOLKSWAGEN AG: Thousands to Lose Jobs in Cost-cutting Plan
* S&P Affirms Negative Outlook on German Life Insurance Sector
H U N G A R Y
ANTENNA HUNGARIA: Delisted from 'Elite' List
RABA RT: Kicked out of Budapest Stock Exchange Index
SYNERGON RT: Dropped from Budapest Stock Exchange Index
I T A L Y
PARMALAT FINANZIARIA: U.S. Units Allowed to Keep Bank Accounts
PARMALAT FINANZIARIA: U.S. Units Retain Cash Management System
L U X E M B O U R G
INVERSUD INVESTMENT: Extraordinary General Meeting March 19
N E T H E R L A N D S
ISPAT INTERNATIONAL: Ispat Inland's Proposed Bond Rated 'B-'
PETROPLUS N.V.: Full-year Net Loss Balloons to EUR64.2 Million
N O R W A Y
PETROLEUM GEO-SERVICES: To Announce Preliminary Results March 16
P O L A N D
WIRTUALNA POLSKA: Rumors of Yahoo! Entry in Local Market Swirl
R U S S I A
BABAEVO FURNITURE: Declared Insolvent
ENERGOUPRAVLENIYE: Kemerovo Court Opens Bankruptcy Proceedings
KASPIYSKY: Declared Insolvent
KULSHARIPOVSKAYA: Begins Bankruptcy Procedure
RZHEVSELCHOZENERGO: Under Bankruptcy Supervision Procedure
TVER PIVO: Moscow Court Appoints Insolvency Manager
UE VODOKANAL: Under Bankruptcy Supervision Procedure
VOTKINSKY BRICKWORKS: Names A. Ashichmin Insolvency Manager
S W E D E N
JULIUS BAER: Second-half Earnings Jump Significantly
SAS GROUP: Continues to Reorganize Legal Structure
SAS GROUP: To Split into Three Independent Companies
S W I T Z E R L A N D
SWISS INTERNATIONAL: Chairman Bouw Takes over as Interim CEO
U N I T E D K I N G D O M
ABBEY NATIONAL: Completes Sale of Royal Saint Georges Banque
ALIDON LIMITED: Names Carter Clark Liquidator
APPLE MANAGEMENT: Appoints Marks Bloom Liquidator
BAE SYSTEMS: Hawk Contract with Indian Govt. Hits Glitch
BLUE IN GREEN: Designates Elliot Woolfe Liquidator
BRADFORD CITY: Appoints Kroll Limited Administrator
CAREER DEVELOPMENT: Hires Administrator from Kroll Limited
CITY LIFTS: Calls in Administrator from Rothman Pantall & Co
DESIGN MOVEMENTS: Hires Liquidator from Poppleton & Appleby
EVERYVALVE EQUIPMENT: Resolves to Wind up Firm
FRESHMOORE DEVELOPMENTS: In Voluntary Liquidation
GOVETT ASIAN: Investors Approve Voluntary Winding-up Proposal
HARVEY HOUSE: Hires Liquidator
HOTHOUSE CREATIONS: HSBC Appoints Grant Thornton Receiver
INDEPENDENT COMPUTER: Creditors Meeting Set March 16
JOHNSON HAYNES: Creditors Assembly March 25
KESAN AUTOMATION: Creditors to Gather March 16
KINGSBURY CONTRACTS: Creditors Meeting Set March 16
KINSTRUT LIMITED: Creditors to Meet March 19
LANCASTER FIBRE: HSBC Appoints Joint Administrative Receivers
LLOYDS TSB: Upbeat about 2003 Performance
LTT ESTATES: Appoints Baker Tilly Liquidator
MAPLERING LIMITED: Creditors Meeting Set March 23
MINTWOOD LIMITED: Hires O'Sullivan Liquidator
NETWORK RAIL: Standard & Poor's Retains MTN Finance Ratings
OPTIMUM LIMITED: Creditors to Meet March 19
PICKMONT RESIDENTIAL: Designates Simon Gwinutt Liquidator
PORTE A PORTE: Creditors to Meet March 16
R J C DAVIS: Assigns Royce Peeling Green Administrator
SMG PLC: Returns to Black; Expects Promising Future
SULLIVAN ENGINEERING: Hires Administrator from Grant Thornton
T E W LIMITED: Designates Baker Tilly Administrator
THE MONOGRAPH: Initial Creditors Meeting Set March 25
TS TECH: Court Hearing Scheduled March 17
TZAR LIMITED: Brings in Liquidator from Rothman Pantall & Co.
WEMBLEY PLC: BLB Mulls Offer, Conducts Due Diligence
*********
=============
B E L G I U M
=============
CARESTEL N.V.: Completes Sale of Global Hotel Stake
---------------------------------------------------
Carestel N.V. finalized on March 10, 2004 the sale of Global
Hotel BVBA. On February 3, 2004, Carestel N.V. signed a
conditional agreement with Westmont International Development
Inc. for the transfer of its participation in Global Hotel BVBA
and Carestotel N.V., the companies grouping the hotel activities
of the Carestel group. The buyer has now completed the external
financing of the transaction and the effective transfer of
Carestel's shares in the Global Hotel group was realized
Wednesday.
As a result of this transaction, the Carestel group will incur a
consolidated loss of EUR0.7 million. At the closing of this
transaction, Carestel will use the net proceeds from the sale to
pay off EUR27 million of its bank debt and as a result, the net
bank debt will then be reduced to EUR30 million versus EUR78
million at the start of the restructuring of the group.
Carestel was assisted in this transaction by Petercam N.V.
Carestel N.V. is a listed catering group, which is based on 3
core activities: motorway catering, airport catering, and Lunch
Garden N.V. At the end of 2002, Carestel N.V. reported a
turnover of EUR258.9 million, and employs approximately 2,800
people.
===========
F R A N C E
===========
ALCATEL: Ratings Raised to 'BB-'; Outlook Stable
------------------------------------------------
Standard & Poor's Ratings Services raised its long-term
corporate credit and senior unsecured debt ratings on France-
based telecommunications equipment supplier, Alcatel, to 'BB-'
from 'B+' following release by the company of its fourth-quarter
and year-end 2003 results. The outlook is stable. The rating
actions follow a review by Standard & Poor's of the global
telecommunications equipment industry.
At the same time, Standard & Poor's affirmed its 'B' short-term
corporate credit rating on the company. At December 31, 2003,
Alcatel had gross debt outstanding of EUR5.3 billion ($6.5
billion), which included EUR4.8 billion worth of notes
outstanding.
"The upgrade reflects Alcatel's improving operating and
financial performance on the back of healthier market conditions
and prospects for the telecoms equipment industry and the
company's severe cost cutting," said Standard & Poor's credit
analyst Leandro de Torres Zabala.
After three years of severely depressed conditions, demand for
telecoms equipment is expected to stabilize at constant currency
exchange rates in 2004, supported by renewed investment by
financially stronger European operators and by the expected
stabilization of the U.S. long-haul fiber-optic market in the
second half of 2004. After very severe cost cutting over the
past two years, Alcatel has produced a leaner cost structure,
which -- combined with more sustained sales levels -- should
translate into progress toward the achievement of positive and
sustainable profitability and free cash flow.
Although Alcatel will still face sales weakness in some
activities, price pressures and strong competition, a leaner
cost structure, continuing cost cutting, and strong cash
position confers management with a substantial margin for
reaction.
"Demand for telecoms equipment is expected to stabilize in 2004
and Alcatel is expected to continue to restructure its cost base
as needed," added Mr. de Torres Zabala. "We expect Alcatel,
therefore, to show further positive and sustainable
profitability and free cash flow."
CONTACT: STANDARD AND POORS RATING SERVICES
Analyst E-mail Addresses
leandro_detorreszabala@standardandpoors.com
guy_deslondes@standardandpoors.com
CorporateFinanceEurope@standardandpoors.com
ALSTOM SA: May Have to Renegotiate Debt Due to Cash Shortfall
-------------------------------------------------------------
The Board noted with satisfaction that orders expected to be
booked during the current fiscal year (April 1, 2003 to March
31, 2004) could be over the previously forecast figure of EUR15
billion, with estimated margins in line with Alstom's profit
objectives.
Alstom's operating margin in fiscal year 2003/04 is expected to
be slightly below the 2%/2.5% foreseen in November, mainly due
to additional charges related to the execution of a boiler power
plant contract in the U.S. (Seward).
Progress in implementing restructuring programs should lead to
the recording of the related costs in the accounts earlier than
foreseen: approximately EUR650 million in fiscal year 2003/04
compared to EUR450/500 million previously foreseen, and around
EUR300 million in fiscal year 2004/05.
The Board also noted that Alstom's free cash-flow for fiscal
year 2003/04 is expected to be between -EUR1,000 and -EUR1,200
million (of which -EUR800 million, as expected, relates to
former GT24/GT26 contracts). This performance would be slightly
below the previous forecast mainly due to the expected levels of
operating margin and restructuring costs during the fiscal year.
The Board noted that if these forecasts were confirmed in the
actual results, it would be necessary, in due time and with the
agreement of Alstom's banks, to amend the covenants relating to
EBITDA and consolidated net worth.
CONTACT: ALSTOM SA
Press Relations
S. Gagneraud
G. Tourvieille
Phone: +33 1 47 55 25 87)
Investor relations:
E. Chatelain
Phone: +33 1 47 55 25 33)
RHODIA SA: Unexpected Costs May Lead to Cash Crunch
---------------------------------------------------
French chemicals company, Rhodia, on Wednesday warned of a
possible liquidity crunch, according to the Financial Times.
The troubled group, in its latest regulatory filing, said:
"Rhodia cannot assure that it will be capable of repaying its
debt or of financing it on time. Financing it may even prove
impossible."
The company, however, clarified that the warning of possible
liquidity problems are disclosed for legal reasons, saying that
the prospect had already been disclosed. The liquidity crunch
may occur should the company incur unexpected costs, the company
said. According to the report, a Rhodia official said: "There's
nothing new in this document. These risks may or may not
happen. But we're confident about our rescue plan."
Rhodia is currently suffering from high raw material costs for
petrochemical, weak demand, and strong euro. It is expected to
launch a rights issue of about EUR300 million to EUR450 million
soon and dispose EUR700 million in assets at the same time.
Despite these, it expects to remain in red until at least 2006.
It must find additional sources of funding to avoid bankruptcy.
Rhodia's new chief executive, Jean-Pierre Clamadieu, has warned
that several of its banking covenants could be breached. In
January, Rhodia negotiated a reduced credit line of EUR758
million with its 23 creditor banks.
=============
G E R M A N Y
=============
DEUTSCHE TELEKOM: Achieves Turnaround with EUR1.3 Bln Net Income
----------------------------------------------------------------
Deutsche Telekom increased its net revenue, according to
preliminary figures for the 2003 fiscal year-by 4% year-on-year
to EUR55.8 billion. With adjusted EBITDA of EUR18.3 billion,
Deutsche Telekom exceeded its target by far. This represents
growth of 12.1% and reflects the efficiency improvements the
Group has made on its path towards profitable growth. Group
EBITDA for the full 2003 financial year amounted to EUR18.5
billion. Special factors impacting EBITDA in the fourth quarter
of 2003 amounting to negative EUR0.3 billion relate mainly to
personnel accruals. The Group's adjusted EBITDA margin improved
to 32.8% compared with 30.4% for the full 2002 financial year.
All divisions contributed to this increase. These are the
highlights/key figures:
millions of EUR FY/03 FY/02 change %
--------------- ----- ----- --------
Net revenue 55,838 53,689 4.0
Net income/loss 1,253 -24,587 n.a.
EBITDA 18,475 16,116 14.6
EBITDA adjusted to 18,288 16,314 12.1
exclude special factors
Free cash flow before dividend 8,285 4,838 71.2
Investments in property, plant, and
6,234 7,928 -21.4
equipment and intangible assets
Net debt 46,576 61,106 -23.8
Fourth quarter of 2003
millions of EUR Q4 2003 Q4 2002 change %
Net revenue 14,550 14,512 0.3
Net income/loss -364 -77 n.a.
EBITDA 4,178 4,734 -11.7
EBITDA adjusted to exclude 4,503 4,354 3.4
special factors
Deutsche Telekom achieved the turnaround with net income of
EUR1.3 billion, after recording a net loss of EUR24.6 billion in
2002. Adjusted net income totaled EUR0.2 billion compared with
a loss of EUR4.8 billion in 2002. Net income decreased in the
fourth quarter of the year, mainly due to the burden of the Toll
Collect project, amounting to EUR442 million.
The provision for risks included in this figure means that, from
the current perspective, all foreseeable risks are covered.
Despite these negative effects, Deutsche Telekom achieved its
net income target for the full financial year, both in absolute
and adjusted figures.
Net debt was reduced further in the fourth quarter of 2003 by
EUR2.6 billion to EUR46.6 billion at the end of the year. This
means net debt has decreased by a total of EUR17.7 billion since
the strategic review in 2002. This achievement is attributable
to the sale of non-core assets totaling EUR6.7 billion, as well
as to the continued progress made in increasing profitability
and sustained growth in key areas of the Group. With free cash
flow before dividend of EUR8.3 billion in 2003 and EUR8.5
billion since the strategic review in the third quarter of 2002,
Deutsche Telekom exceeded its target of generating free cash
flow of more than EUR6 billion by the end of 2003 by a clear
margin of over EUR2 billion.
The focus in the 2004 financial year is on profitable growth.
Deutsche Telekom is aiming to generate adjusted Group EBITDA of
at least EUR19.2 billion. The use of free cash flow will depend
on the opportunities that arise: to further reduce debt and to
increase investments. The possibility of selective acquisitions
has not been ruled out, provided they offer an opportunity to
further increase the value of the Group.
The Board of Management and the Supervisory Board will propose
to this year's shareholders' meeting that no dividend be paid.
The Board of Management plans, however, to generate a dividend
in 2004 for payment in 2005.
To see selected financial data:
http://bankrupt.com/misc/Deutsche_2003.htm
Among the divisions, T-Com was once again the largest revenue
generator in the Deutsche Telekom Group with revenue of EUR29.2
billion in 2003. The 2003 financial year was one of strong
growth rates in broadband business for T-Com. Revenue in this
division decreased by around 4% in comparison with the 2002
financial year as a result of the sale of the remaining regional
cable companies in February 2003, as well as the impact of
national regulatory interventions and the weak economic
environment.
Excluding special factors, EBITDA increased slightly by 1.1%
from EUR10.3 billion to EUR10.4 billion. The adjusted EBITDA
margin thus increased by almost 2%age points to 35.5%.
Including special factors, EBITDA increased by 1.1% from EUR10.1
billion to EUR10.2 billion.
The T-Mobile division recorded strong growth in total revenues
of more than 15%, around EUR3.0 billion, to EUR22.8 billion in
2003, adjusted EBITDA increased by more than 32% to EUR6.7
billion, far exceeding the growth in revenue. EBITDA growth was
strongest at T-Mobile USA, where it almost tripled from EUR0.5
billion to EUR1.5 billion. T-Mobile's total adjusted EBITDA
margin improved from 25.5% to 29.3%.
T-Systems recorded good results in 2003, despite the generally
unfavorable market environment, generating revenue of EUR10.6
billion in the year under review, an increase of 1.2% year-on-
year. The improvement is attributable to the very positive
development of revenue from telecommunications business, which
increased by 5.3%. Business with information technology
solutions declined on the other hand, with revenue 2.3% lower
than in the previous year. T-Systems' EBITDA excluding special
factors increased by 23% or approximately EUR0.3 billion to
EUR1.4 billion. Including special factors, EBITDA increased by
a good 87%, from EUR0.75 billion to EUR1.4 billion. The
adjusted EBITDA margin improved by 2% age points in 2003 from 11
to around 13%.
T-Online increased its total revenue by almost 17%, just under
EUR0.3 billion, year-on-year to around EUR1.9 billion (figures
in accordance with German GAAP). EBITDA improved from EUR0.1
billion to EUR0.3 billion over the same period and thus
underlines the success of T-Online's focus on increasing
profitability and the consistent further development of its
combined business model.
Group Headquarters & Shared Services recorded a 3.2% decrease in
revenue in 2003 to EUR4.3 billion.
EBITDA adjusted to exclude special factors decreased year-on-
year to -EUR0.3 billion. This was mainly attributable to
personnel costs relating to Vivento of around EUR0.5 billion.
This was partially offset by the reduction in re-branding
expenses and the non-recurrence of start-up costs incurred for
the sale of receivables in 2002.
At December 31, 2003, approximately 15,500 employees (calculated
as full-time equivalents) were assigned to the "Vivento"
personnel service agency, which also had roughly 440 permanent
staff. Approximately 19,200 employees have been transferred to
Vivento since its establishment in the fourth quarter of 2002.
Of this figure, around 3,700 employees had left Vivento
permanently at the end of 2003, roughly 2,200 of which to jobs
outside the Group. These successful placements reduced the
costs for the Group by roughly EUR150 million over the course of
the year.
DEUTSCHE TELEKOM: S&P Elevates Ratings to CreditWatch Positive
--------------------------------------------------------------
Standard & Poor's Ratings Services it placed its 'BBB+' long-
term corporate credit ratings on German fixed-line and mobile
telecoms operator Deutsche Telekom AG and its majority-owned
subsidiary Magyar Tavkozlesi Rt. (Matav) on CreditWatch with
positive implications. At the same time, Deutsche Telekom's
'A-2' short-term corporate credit rating was affirmed.
"The CreditWatch placement follows Deutsche Telekom's
announcement of its fourth-quarter and full-year 2003 results,
which include materially higher-than-expected free cash flow
generation: EUR8.3 billion for the full year, compared with our
expectations of about EUR7 billion based on performance over the
first nine months," said Standard & Poor's Milan-based credit
analyst Guy Deslondes.
As a result, debt reduction exceeded expectations, with on-
balance-sheet net debt of EUR46.6 billion, compared with EUR61.1
billion a year earlier. The increase in free cash flow not only
reflected reductions in capital expenditures and working
capital, but also material profitability improvements, primarily
thanks to progress by Deutsche Telekom's subsidiary T-Mobile
U.S.A Inc. and the positive impact of restructuring at T-Com,
the key cash-generating fixed-line business in Germany.
Standard & Poor's will resolve its CreditWatch status on
Deutsche Telekom and Matav after a comprehensive review of
Deutsche Telekom's medium-term business strategy and financial
policy.
"The resolution could result in an affirmation of the current
ratings or an upgrade," said Mr. Deslondes. "Any rating upgrade
would be limited to one notch."
As part of its review to resolve the CreditWatch status,
Standard & Poor's will focus on:
(a) Projected operating and cash flow performance for 2004 and
2005;
(b) Management's medium-term business strategy;
(c) Any contingent liabilities linked to the end of the toll-
road project in Germany;
(d) Management's financial policy and capital-structure targets;
and
(e) The evolution of telecommunications regulation in Germany,
which will continue to be key to the trajectory of DT's
credit profile.
CONTACT: STANDARD AND POORS RATING SERVICES
Analyst E-mail Addresses
leandro_detorreszabala@standardandpoors.com
simon_redmond@standardandpoors.com
guy_deslondes@standardandpoors.com
michael_obrien@standardandpoors.com
CorporateFinanceEurope@standardandpoors.com
DRESDNER BANK: 'B-' Rating Assigned to UkrSibbank's Eurobond
------------------------------------------------------------
Fitch Ratings on Wednesday assigned an expected Long-term 'B-'
rating to the forthcoming loan participation notes to be issued
by Dresdner Bank Aktiengesellschaft for the purposes of
financing a loan to JSIB UkrSibbank under a loan agreement. The
rating is aligned to UkrSib's Long-term 'B-' rating.
It is contingent upon receipt of final documents conforming
materially to information already received and the final rating
will be confirmed at that time.
Dresdner has no obligation to the noteholders other than to
account for all amounts received, if any, from UkrSib under the
loan agreement. The loan agreement between Dresdner and UkrSib
contains a covenant that the lender's claims will rank at least
pari passu with the claims of all the other unsecured and
unsubordinated creditors of UkrSib, except as otherwise provided
for by law. In addition there is a cross default clause and a
negative pledge clause, although liens, in addition to several
liens specifically provided for in the loan agreement, are
permitted on up to 15% of UkrSib's consolidated assets. There
are also numerous other covenants, which, among other factors,
limit distributions and share buybacks by UkrSib, transactions
with affiliates, and mergers, disposals and reorganizations that
would have a material adverse effect on its business.
Noteholders have a put option in the event of a corporate
restructuring, which will result in a rating downgrade. In
addition, there is a covenant requiring that UkrSib does not
allow its total capital adequacy ratio to fall below the minimum
set by the National Bank of Ukraine.
UkrSib was founded in 1990 in Kharkov in the east of Ukraine,
but its head office was recently moved to Kiev, the capital. It
is now the seventh largest bank in Ukraine by assets, having
grown very quickly since 2000, and has a presence in most of the
regions in Ukraine. The bank is controlled by two shareholders
who have a number of substantial industrial interests (e.g.
telecommunications, chemical and metals).
UkrSib's other ratings are Short-term 'B', Individual 'D/E' and
Support '5'.
CONTACT: FITCH RATINGS
Alexander Giles, London
Phone: +44 (0) 20 7417 6330
Vladlen Kuznetsov, London
Phone: +44 (0) 20 7862 4029.
MVV ENERGIE: To Restructure Telecommunications Business
-------------------------------------------------------
MVV Energie in Mannheim, an energy-distribution utility and
value-added services provider, has streamlined its
telecommunications business in an initial step of its pending
restructuring and focusing on its core business in order to get
it back to black.
MVV Energie's CEO Dr. Rudolf Schulten said: "First and
financially biggest step in focusing on the company's core
business activities in conjunction with Powerline technology
will be bundled in, and economically managed by, Power PLUS
Communications AG. Power PLUS Communications has been
responsible for marketing this technology, with which power
grids can be used for data transmission and hence for Internet
access, to other electric power utilities with their own grids
in Germany and Austria. In addition to MVV Energie via its
venture capital company, MVV Innovationsportfolio, ABB AG and
Israeli technology partner Main.net also hold participations in
Power PLUS Communications.
Dr. Rudolf Schulten: "With such a powerful team, Powerline will
be managed even more efficiently in Mannheim and we'll be better
able to take advantage of Power PLUS Communications' synergies.
For Power PLUS Communications it will also open up an
opportunity to continue offering services to other cities well
beyond Mannheim."
MVV Energie's subsidiary MAnet GmbH, which has conducted
business with the "Internet from the wall socket" in Mannheim
until now, will concentrate its efforts on providing promising
value-added telecommunications services for the key-accounts
segment.
Dr. Rudolf Schulten: "In recent years, we have created an
unusually competitive data-transmission infrastructure with our
forward-looking investments in Mannheim's fiber-optic grid,
particularly in comparison to the rest of Europe. In the past,
MAnet has had positive results in this sector. We now intend to
utilize the potential of this growth segment even more
consistently."
This restructuring will be made possible by means of adjustments
in the value of fixed assets, write-offs of the full book value
of participations and full retirement of MAnet's debt by the MVV
Energie Group. For this reason, the Company will have to spend
up to EUR31 million, in the words of its CEO.
Dr. Rudolf Schulten: "With such a clear move, this segment will
be pointed towards profitability and will be put on solid
ground." During the last fiscal year, the MVV Energie Group had
to absorb a negative result of approximately EUR7 million in the
telecommunications sector.
With this decision, the Supervisory Board has made "the first
step in strategically focusing on MVV Energie's core business -
and at the same time the biggest step concerning the financial
burden," the CEO says.
According to Dr. Rudolf Schulten, all areas of business are
being checked for their recoverability at present. In the
following process of clearing out the portfolio further one-off
costs will accrue which will strain the company's results this
fiscal year.
"In the second step, which is to follow in the near future,
other non-core business areas such as wind power, waste water,
consulting and project development as well as activities in
Spain and Portugal will be dealt with. The financial burden for
this second part of our clearing process will be less than that
for the part decided on now," he said.
MVV Energie's CEO is convinced that Powerline can be profitably
operated on the market with a more streamlined organization in
Mannheim and under the management of local municipal utilities
throughout Germany. This new technology has in the meantime
overcome its "childhood ailments" and has gained a respectable
market share in its first appearance on the market in Mannheim
under the product name "Vype". Dr. Rudolf Schulten: "After the
euphoric planning at the beginning, we have now prepared a new
business plan that will ensure Vype a secure place on Mannheim's
Internet market." The new generation of modems has successfully
passed initial tests and could open attractive prospects for the
future for Powerline. "Decisions on additional investments will
then be made by PPC and will be financed by capital from new
investors," Dr. Schulten added.
The European Commission recently emphasized the strategic
importance of Powerline technology for the development of
broadband service in Europe. The EU has been promoting
international Powerline activities with approximately EUR9
million in its "OPERA Project - Open Powerline European Research
Alliance" - which includes Italy's ENEL, France's EDF, Spain's
Endesa and Iberdrola as well as Austria's Linz AG in addition to
MVV Energie. Power PLUS Communications has assumed a leading
role in this project.
With this restructuring of its telecommunications activities, a
basis will be formed for successfully marketing Powerline
technology to other municipal utilities and power-grid operators
via PPC, according to Dr. Schulten: "In addition to Mannheim,
our Powerline technology has already been commercially installed
in Hamelin, Dresden, Habfurt and Linz. Our Powerline activities
will be bundled by virtue of this restructuring. This will also
facilitate acquisition of participations in PPC by other
enterprises in future."
MVV Energie's CEO is also expecting positive developments from
the Company's MAnet subsidiary. "Providing value-added
telecommunications services for key accounts represents an
important growth market, on which MAnet should focus its efforts
in future," declared Dr. Schulten. He sees a promising
potential for these services just in Mannheim's dynamic
industrial and commercial zones and is counting on a market
share of approximately 25% in the connected zones on a medium-
term basis.
Dr. Rudolf Schulten: "With products and services that are
tailored to customer needs, we can and will also hold our own on
the market in the telecommunications sector, thereby making
effective use of our existing electric power and fiber-optic
grids."
CONTACT: MVV ENERGIE
AG Investor Relations Luisenring
49 68159 Mannheim
Phone: +49 621 / 290-3708
Fax: +49 621 / 290-3075
Web site: http://www.mvv-investor.de
E-mail: ir@mvv.de
VOLKSWAGEN AG: Thousands to Lose Jobs in Cost-cutting Plan
----------------------------------------------------------
German carmaker Volkswagen said it plans to slash 5,000 jobs by
the end of 2005, as part of a EUR4.2 billion cost-cutting drive,
according to Bloomberg News.
Volkswagen last month posted a 48% decline in 2003 operating
profit to EUR2.49 billion (GBP1.67 billion), despite marginal
rises in both car sales and revenues. The fall in profit was
compounded by one-off charges of EUR711 million due to
restructuring in Brazil and write-downs on investments in its
luxury business. Looking forward, it does not expect to exceed
last year's operating profit before special items, despite heavy
cost-cutting, and the launch of Golf V, because of growing
pricing pressure, a weak economy and unfavorable exchange rates.
* S&P Affirms Negative Outlook on German Life Insurance Sector
--------------------------------------------------------------
Prospects for the two sectors of Germany's insurance market are
diverging, Standard & Poor's said in a report published
Wednesday. Continued pressure on the Germany's life insurers
has led Standard & Poor's to affirm the existing negative
outlook on the life sector. Meanwhile, the outlook on the
German non-life insurance sector has been revised to stable from
negative, bolstered by improved underwriting results and
cyclical stability foreseen for the sector in the near term.
"The business model of the German life insurance industry is
being severely tested," said Standard & Poor's credit analyst
Karin Clemens. Low interest rates remain insurers' main
dilemma, but the growing costs of increased longevity, and
upcoming changes in regulation and taxation also weigh heavily
on the sector. "This comes at a time when the capital and
earnings positions of many life insurers remain impaired, making
it difficult for industry players to prepare for the numerous
challenges the industry is facing," said Ms. Clemens.
There is a notable lack of 'matching' between assets and
liabilities in the life sector, resulting in an increasingly
narrow gap between guaranteed policyholder rates and the actual
investment yield that companies are able to achieve. This
affects in particular old policies where insurers still
guarantee as much as 4%.
"Profit margins are therefore likely to reduce further," Ms.
Clemens said. "In addition, the competitive positioning of life
insurers in the long-term savings market could be seriously
threatened as the industry struggles to provide attractive
returns to policyholders."
Moreover, the government's plan to abolish the tax-free status
of lump-sum proceeds of life insurance policies from 2005 -- if
implemented -- is likely to significantly weaken the importance
of endowment policies, historically the backbone of the German
life insurance industry.
The outlook for future years is also uncertain, with increasing
reserve requirements for longevity risks and the International
Financial Reporting Standards (due in 2005) and Solvency II
(final stage expected in 2008) raising further challenges.
"The increase in longevity risk is likely to demand a boost in
current reserving levels," said Ms. Clemens. "Meanwhile, the
proposed regulatory solvency changes look set to challenge the
ability of German life insurers to provide an appropriate asset-
liability match for guaranteed interest rates, thereby further
reducing the attractiveness of guaranteed products."
The forthcoming structural changes in the sector will force
German life insurers to review their business models. "Strong
actuarial and financial skills, sound asset liability management
and the ability of companies to demonstrate a sustained level of
earnings sufficient to shore up their weakened balance sheet
will be the key ratings drivers," said Ms. Clemens.
"Financial strength and brand value will become key competitive
advantages as long as the sector's stability remains uncertain."
The non-life sector, on the other hand, has fared more
favorably. "A substantial improvement in non-life underwriting
results has driven the change in outlook for the sector, and
supports an expectation that the recent, market wide decline in
financial strength ratings will stabilize in 2004," said
Standard & Poor's credit analyst, Wolfgang Rief.
"Nevertheless, despite the improved dynamic in non-life
business, group pressures remain, with numerous economic and
regulatory challenges," he said.
Consequently, further negative developments could yet lead to
future ratings depression.
The increased underwriting focus in the non-life sector is
expected to have resulted in a return of its combined ratio (a
key indicator of underwriting profitability) to be within the
100% 'breakeven' mark for 2003, following an unprofitable 104%
in 2002 and a 102% five-year average.
"The most significant improvements are expected in motor,
private property, and industrial lines, due to rate increases
and a benign claims development," said Mr. Rief. Standard &
Poor's believes that the cycle is likely to stabilize in the
near term rather than turn down. Owing to the time lag between
price increases and related underwriting results, the underlying
positive trend achieved in 2003 should again emerge in 2004.
The premium development in 2004 will be decisive in determining
whether this year will prove to be the peak of the cycle.
Fears remain, however, that competition might damage the non-
life sector's underwriting discipline, while pricing for
volatility and catastrophe loss experience could yet prove to
have been underestimated.
Capitalization has been a lesser concern for non-life insurers,
although their historically very strong bases have been somewhat
eroded in recent years due to the effects of the volatile
capital markets and the use of financial resources in the fight
for market share. Owing to the positive underwriting results in
2003, Standard & Poor's expects that following the 2002
withdrawals from the equalization reserve, contributions will
have to be set up for 2003, which together with the easing
pressure on investment revaluation reserves, will strengthen
capitalization.
Consolidation will re-emerge for German insurers, in terms of
cooperation agreements or portfolio transfers, as well as
mergers, as insurers seek to create more focused business models
and benefit from economies of scale.
"Few European insurance groups have restored their financial
flexibility to levels sufficient to enable them to take part in
M&A activity," said Ms. Clemens. "However, there are exceptions
and, as the German market is highly fragmented, M&A
opportunities are likely to attract interest both domestically
and from foreign insurance groups.
The report entitled "Insurance Industry Risk Analysis: Germany
(Federal Republic of)" was published on March 10, 2004, and is
available to subscribers of RatingsDirect, Standard & Poor's
Web-based credit analysis system, at
http://www.ratingsdirect.com. Ratings information can be found
on Standard & Poor's public Web site at
http://www.standardandpoors.com;under Credit Ratings in the
left navigation bar, select Credit Ratings Search.
Alternatively, call one of the following Standard & Poor's
numbers: London Ratings Desk (44) 20-7176-7400; London Press
Office Hotline (44) 20-7176-3605; Paris (33) 1-4420-6708;
Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5916; or
Moscow (7) 095-783-4017. Members of the media may also contact
the European Press Office via e-mail on:
media_europe@standardandpoors.com.
CONTACT: STANDARD AND POORS RATING SERVICES
Analyst E-mail Addresses
karin_clemens@standardandpoors.com
wolfgang_rief@standardandpoors.com
InsuranceInteractive_Europe@standardandpoors.com
=============
H U N G A R Y
=============
ANTENNA HUNGARIA: Delisted from 'Elite' List
--------------------------------------------
The Budapest Stock Exchange dropped Antenna Rt from its Budapest
Stock Exchange (BUX) Index, according to Budapest Business
Journal. Shares in the company will be removed from the basket
starting April 1, the report said.
The BUX Index is a capitalization-weighted index adjusted for
free float. The index tracks the daily price only performance
of large, actively traded shares on the Budapest Stock Exchange.
Shares kicked out from the list are those which failed to meet
the Index's requirement twice.
Antenna Hungaria recently reported 2003 profit amounting HUF50
million as opposed to a HUF1.925 billion loss in 2002. The main
reason for the almost HUF2 billion improvement was that the
ownership of the company in Vodafone Hungary was requalified
into an "other share" from the associated enterprise share.
Antenna Hungaria's share since October 2003 no longer reaches
the 20% needed for qualification as an associated enterprise.
RABA RT: Kicked out of Budapest Stock Exchange Index
----------------------------------------------------
Raba Rt will no longer be included in the prestigious Budapest
Stock Exchange (BUX) Index starting April 1, according to
Budapest Business Journal.
The BUX Index is a capitalization-weighted index adjusted for
free float. The index tracks the daily price only performance
of large, actively traded shares on the Budapest Stock Exchange.
Membership in the list is terminated once the shares fail to
meet eligibility criteria twice.
Raba produces axles, automotive components, commercial vehicles
and engines. It is one of the largest independent manufacturers
of axles in the world. The company posted consolidated losses
of HUF3.3 billion in H1 2003, as against a profit of HUF411
million a year earlier. Just like the rest of the automotive
companies in Hungary, Raba suffers from declining export
revenues.
SYNERGON RT: Dropped from Budapest Stock Exchange Index
-------------------------------------------------------
The Budapest Stock Exchange has dropped Synergon Rt from its
capitalization weighted-index, according to Budapest Business
Journal. Shares in the company will end affiliation to the
Budapest Stock Exchange Index starting April 1.
Hungarian IT group Synergon recorded a net loss of HUF1.396
billion in 2003, HUF098 million of that is for the fourth
quarter alone.
The majority of the loss was the result of the settlement of
non-recurring extraordinary items, consisting mainly of the
settlement of amortization of goodwill related to foreign
subsidiaries, brought forward to 2003, totaling HUF1 billion for
the year.
=========
I T A L Y
=========
PARMALAT FINANZIARIA: U.S. Units Allowed to Keep Bank Accounts
--------------------------------------------------------------
The United States Trustee has established "Operating Guidelines
and Financial Reporting Requirements Required in All Cases Under
Chapter 11," which mandate, among other things, the closure of a
Parmalat debtor's prepetition bank accounts and the opening of
new bank accounts. This requirement is designed to provide a
clear line of demarcation between prepetition and postpetition
claims and payments, and helps protect against the inadvertent
payment of prepetition claims by preventing the banks from
honoring checks drawn before the Petition Date.
However, Gary T. Holtzer, Esq., at Weil, Gotshal & Manges LLP,
in New York, points out that in other large Chapter 11 cases,
the Bankruptcy Court has recognized that the strict enforcement
of the requirement that a debtor close its bank accounts does
not serve the rehabilitative process of Chapter 11.
Accordingly, the Bankruptcy Court has waived such requirements
and replaced them with similar alternative procedures in In re
WestPoint Stevens Inc., et al., Case No. 03-13532 (RDD) (Bankr.
S.D.N.Y. June 2, 2003); In re WorldCom, Inc., et al., Case No.
02-13533 (AJG) (Bankr. S.D.N.Y. July 22, 2002); In re Adelphia
Business Solutions, Inc., et al., Case No. 02-11389 (REG)
(Bankr. S.D.N.Y. March 27, 2002); and In re Enron Corp., et al.,
Case Nos., 01-16033 through 16047 (AJG) (Bankr. S.D.N.Y.
December 3, 2001).
Mr. Holtzer asserts that similar authorization is appropriate in
the U.S. Debtors' Chapter 11 cases. If the U.S. Debtors are not
permitted to maintain and utilize their existing bank accounts,
their ordinary financial affairs and business operations will be
seriously disrupted, causing delay in the administration of
their estates. Setting up new systems and opening new accounts
will also add costs to their estates.
In the ordinary course of business, the U.S. Debtors maintain 24
bank accounts with a number of different banks. Three of the
Banks where the U.S. Debtors maintain accounts do not appear on
the U.S. Trustee's List of Authorized Bank Depositories for the
Southern District of New York. These Banks are comprised of:
(i) Comerica,
(ii) Columbus Bank and Trust, and
(iii) Regions Financial Corp.
All of these banks are members of the Federal Deposit Insurance
Corporation.
The U.S. Debtors do not maintain over $100,000 in their Columbus
accounts and, accordingly, the amounts are fully insured by the
FDIC. The Debtors maintain two accounts at Comerica, one for
general checking uses and one as a payroll account. The
Comerica Checking Account has a $500 balance. The amounts in
the Comerica Payroll Account, before every payroll cycle, will
exceed $100,000, but generally will not go over $130,000. The
Regions account is a deposit account for Milk Products. The
balance of the Regions account is generally between $150,000 and
$500,000.
The U.S. Debtors believe that their transition to Chapter 11
will be smoother and more orderly, with minimum harm to
operations, if the Bank Accounts are continued with the same
account numbers following the commencement of their cases.
However, the checks issued or dated before the Petition Date
will not be honored, absent a prior Court order.
"By preserving business continuity and avoiding the disruption
and delay to the Debtors' payroll activities and businesses that
would necessarily result from closing the Bank Accounts and
opening new accounts, all parties-in-interest, including
employees, vendors, and customers, will be best served," Mr.
Holtzer says.
To facilitate the U.S. Debtors' transition into Chapter 11,
Judge Drain waives the U.S. Trustee's Operating Guidelines and
authorizes the U.S. Debtors to:
(a) Designate, maintain and continue to use any or all of their
Bank Accounts in the names and with the account numbers
existing immediately before the Petition Date;
(b) Deposit funds in and withdraw funds from the Bank Accounts
by all usual means including, without limitation, checks,
wire transfers, automated transfers and other debits; and
(c) Treat their Bank Accounts for all purposes as debtor-in-
possession accounts.
Headquartered in Wallington, New Jersey, Parmalat U.S.A
Corporation http://www.parmalatusa.com/generates more than EUR7
billion in annual revenue. The Parmalat Group's 40-some brand
product line includes milk, yogurt, cheese, butter, cakes and
cookies, breads, pizza, snack foods and vegetable sauces, soups
and juices and employs over 36,000 workers in 139 plants located
in 31 countries on six continents. The Company filed for
chapter 11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case
No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein,
Esq., at Weil Gotshal & Manges LLP represent the Debtors in
their restructuring efforts. On June 30, 2003, the Debtors
listed EUR2,001,818,912 in assets and EUR1,061,786,417 in debts.
(Parmalat Bankruptcy News, Issue No. 7; Bankruptcy Creditors'
Service, Inc., 215/945-7000)
PARMALAT FINANZIARIA: U.S. Units Retain Cash Management System
--------------------------------------------------------------
The U.S. Parmalat Group Debtors employs a cash management system
that collects, concentrates, and disburses funds generated by
their operations among their operating entities in order to
efficiently and seamlessly operate their businesses. By
utilizing the Cash Management System, the U.S. Debtors
facilitate their cash forecasting and reporting, monitor the
collection and disbursement of funds, and maintain control over
the administration of their bank accounts located at various
banks.
Pursuant to their Cash Management System, Farmland and Milk
Products, the operating companies, each maintains its own
deposit accounts into which its receivables are deposited. The
deposited funds are transferred on an as-needed basis into a
Farmland concentration account maintained at Citibank, N.A.
Amounts swept out of Milk Products' Deposit Account into the
Concentration Account are recorded on Farmland's books and
records as an inter-company payable to Milk Products.
Farmland also maintains six accounts for disbursements,
including payroll and customer rebates. The Disbursement
Accounts are funded from the Concentration Account on an as-
needed basis.
Milk Products' financial obligations are paid out of one of
Farmland's Disbursement Accounts, and each payment is recorded
on Farmland's books and records as an inter-company receivable
from Milk Products. At the end of each month, Farmland
reconciles Milk Products' inter-company payables and receivables
and the balance, if any, is rolled over into the next month.
Marcia L. Goldstein, Esq., at Weil, Gotshal & Manges LLP, in New
York, tells the Court that the U.S. Debtors' Cash Management
System constitutes an ordinary course, essential business
practice. The Cash Management System provides significant
benefits to the U.S. Debtors including, inter alia, the ability
to:
(i) control corporate funds;
(ii) ensure the maximum availability of funds when
necessary; and
(iii) reduce administrative expenses by facilitating the
movement of funds and the development of more timely
and accurate account balance information.
Maintaining the existing Cash Management System is necessary for
the effective reorganization of the U.S. Debtors' operations.
At the First Day Hearing, Judge Drain authorized the U.S.
Debtors to continue to manage their cash pursuant to the Cash
Management System. Judge Drain, however, requires the U.S.
Debtors to maintain accurate records of all transfers within the
Cash Management System so that all post petition transfers and
transactions will be adequately and promptly documented in, and
readily ascertainable from, their books and records.
The Cash Management System may be modified to allow the U.S.
Debtors to comply with the $35,000,000 post-petition financing
they secured from General Electric Capital Corporation.
Headquartered in Wallington, New Jersey, Parmalat USA
Corporation -- http://www.parmalatusa.com/-- generates more
than EUR7 billion in annual revenue. The Parmalat Group's 40-
some brand product line includes milk, yogurt, cheese, butter,
cakes and cookies, breads, pizza, snack foods and vegetable
sauces, soups and juices and employs over 36,000 workers in 139
plants located in 31 countries on six continents. The Company
filed for chapter 11 protection on February 24, 2004 (Bankr.
S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L.
Goldstein, Esq., at Weil Gotshal & Manges LLP represent the
Debtors in their restructuring efforts. On June 30, 2003, the
Debtors listed EUR2,001,818,912 in assets and EUR1,061,786,417
in debts. (Parmalat Bankruptcy News, Issue No. 7; Bankruptcy
Creditors' Service, Inc., 215/945-7000)
===================
L U X E M B O U R G
===================
INVERSUD INVESTMENT: Extraordinary General Meeting March 19
-----------------------------------------------------------
The Shareholders of Inversud Investment Fund, Sicav are hereby
convened to an Extraordinary General Meeting in the offices of
the Alter Domus S.a.r.l (Previously Billon et Associes S.a.r.l)
5,rue Guillaume Kroll, B.P.2501, L-1025 Luxembourg on March 19,
2004 at 5:00 p.m. to deliberate and vote on the following
agenda:
(a) Presentation and approval of the audited accounts of the
Company for the period from October 1, 2002 to July 28,
2003, date of the dissolution of the Company.
(b) Discharge to the directors of the Company for the execution
of their mandate until the date of the dissolution of the
Company.
(c) Presentation and approval of the report of the liquidator.
(d) Presentation of the report of the auditor.
(e) Discharge to the Liquidator and the auditor for the
execution of their mandate until the closing of the
liquidation of the Company.
(f) Closing of the liquidation
(g) Designation of the place where the books of accounts and the
corporate documents will be deposited and lodged during a
period of five years.
(h) Indication of the measures taken for the deposit in escrow
of the sums and assets due to Shareholders.
No quorum is required for the Meeting and the passing of the
resolutions requires the consent of the simple majority of the
shares represented at the Meeting. Shareholders may vote in
person of by proxy.
CONTACT: ALTER DOMUS S.A.R.L
(Previously Billon et Associes S.a.r.l)
5,rue Guillaume Kroll,
B.P.2501, L-1025
Luxembourg
Societe d' Investissement a Capital Variable
69, route d' Esch, L-1470 Luxembourg
R.C.S Luxembourg B-14 737
=====================
N E T H E R L A N D S
=====================
ISPAT INTERNATIONAL: Ispat Inland's Proposed Bond Rated 'B-'
------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' long-term
rating to financing company Ispat Inland ULC's proposed $800
million senior secured bond maturing in 2010 and 2014. The
bond is guaranteed on a senior unsecured basis by Dutch-
registered steel consortium Ispat International N.V.
(Ispat; B-/Stable/--) and it's U.S.-based operating company
Ispat Inland Inc. (B-/Stable/--). The issue rating is subject
to final documentation.
"The bond rating is the same as the corporate credit ratings on
Ispat and Ispat Inland, primarily owing to the bondholders'
first claim on Ispat Inland's property, plant, and machinery,
and to a lesser extent to guarantees from Ispat and Ispat
Inland," said Standard & Poor's credit analyst Tommy Trask.
The proposed bond will reduce refinancing and liquidity risks at
Ispat Inland and provide it with more financial flexibility.
The indenture does not include any maintenance covenants. The
cost of finance, however, is likely to rise modestly following
the refinancing.
Senior secured bondholders benefit from a lien over the plant,
property, and equipment of Ispat Inland's main and substantially
sole manufacturing asset, Indiana Harbor Works, U.S.A. The
security package is shared with $243.6 million existing first
mortgage bonds, of which $160.0 million relate to pension
obligations. The bondholders also benefit from guarantees from
Ispat and Ispat Inland Inc. Limited credit has been given to
the guarantees due to the substantial amount of secured debt and
guarantees already in place within the group.
For the purposes of a recovery assessment under a hypothetical
default scenario, Standard & Poor's estimates that recovery
would be meaningful for senior bondholders. This is giving
consideration to the fact that a single plant will act as
collateral, and sale prices achieved in the U.S. for distressed
steel plant have been low.
CONTACT: STANDARD AND POORS RATING SERVICES
Analyst E-mail Addresses
tommy_trask@standardandpoors.com
olivier_berodu@standardandpoors.com
CorporateFinanceEurope@standardandpoors. com
PETROPLUS N.V.: Full-year Net Loss Balloons to EUR64.2 Million
--------------------------------------------------------------
Petroplus International Europe's leading midstream Oil Company
announces its 2003 full year results. Petroplus reported a net
loss of EUR64.2 million compared to a net loss of EUR24.6
million in 2002. Excluding non-recurring items, the 2003 net
loss was EUR17.3 million, showing a slight improvement compared
to 2002.
EUR(000) Petroplus
Q4 2003 Q4 2002 % change 2003 2002 % change
unaudited audited
1,415,297 1,674,427 -15% Net Sales 6,112,653 5,217,414 17%
41,846 53,473 -22% Gross Profit 197,692 180,913 9%
(9,426) 19,526 n.a. EBITDA 28,677 36,183 -21%
8,102 11,085 -27% Adjusted * 46,205 30,242 53%
EBITDA
(6,467) 11,245 n.a. Net Operating
Income (32,619) 10,153 n.a.
(1,127) 2,804 -140% Adjusted NOI * 12,721 4,213 202%
(16,917) (379) n.a. Net Income (64,208) (24,587) n.a.
(9,966) (3,271) n.a. Adjusted Net (17,257) (24,979) n.a.
Income*
Earnings per share EUR(2.09) EUR(0.85)
Adjusted EPS * EUR(0.56) EUR(0.86)
* Adjusted = excludes non-recurring items
The 2003 results are the outcome of the prevailing market
conditions and specific operational and non-recurring events.
The most important non-recurring items were the restructuring of
the Antwerp refinery and the provision in Dubai. The total
impact of these non-recurring events was EUR46.9 million and is
specified below. Furthermore, Petroplus' results were impacted
by a fire in Cressier early in the year and mercury
contamination at the Teesside refinery. The combined impact of
these two events over the full year has been estimated at EUR16
million. Operationally, the closure of the Cressier refinery
for planned maintenance in May and part of June was significant.
With respect to market conditions, although refining margins
improved, the weak US dollar, high crude price and volatile
markets have negatively impacted the full year results.
Refining
EUR(000) Refining
Q4 2003 Q4 2002 % change 2003 2002 % change
unaudited audited
- - n.a. Net Sales - - n.a.
29,216 31,484 -7% Gross Profit 101,421 64,031 58%
29,216 31,484 -7% Adjusted GP * 101,421 64,031 n.a.
2,381 3,742 -36% EBITDA 17,907 (13,282)n.a.
10,797 13,194 -18% Adjusted EBITDA * 26,323 (3,829)n.a.
10,841 (1,495) n.a. Net Operating (27,925)(27,801)n.a.
Income
4,969 7,957 -38% Adjusted NOI * 6,203 (18,348)n.a.
* Adjusted = excludes non-recurring items
2003 vs. 2002
The Refining division showed a strong improvement in gross
profit as a consequence of the general word-wide recovery of
refining margins. Petroplus' actual gross margin per barrel
over the full year increased from US$0.97 per bbl to US$1.77 per
bbl in 2003. The adjusted net operating income of EUR6.2
million increased by EUR24.6 million compared to 2002.
Petroplus achieved a utilization of 69% in its 3 refineries (81%
excluding Antwerp over the full year) compared to 69% in 2002.
Q4 2003 vs. Q4 2002
The gross profit over the fourth quarter was down 7% relative to
last year, despite a 18.5% reduction in total throughput as a
consequence of the closure of the crude unit in Antwerp.
Petroplus processed 16 million barrels in the fourth quarter
(excluding the bitumen plant) relative to 18.9 million barrels
in the same period in 2002. The realized Petroplus gross
refining margin over the quarter increased to US$ 2.18 per bbl
relative to US$ 1.74 per bbl last year. Part of this margin
improvement reflects the low (from a seasonal perspective)
fourth quarter 2002 margins that were impacted by the political
unrest in Venezuela. The adjusted net operating income
decreased by EUR3.0 million to EUR5.0 million.
Operational developments
The Antwerp refinery performed poorly in the fourth quarter due
to lower than expected ULSD premiums and the continued
operational costs of the closed crude unit. Late December, a
social plan was agreed with the workers council and labor unions
allowing the execution of the restructuring plan to proceed as
planned.
To produce ULSD in the new operating mode without the crude
unit, high sulphur gas oil is imported as a feedstock for the
desulphurisation unit. The 10 ppm ULSD premium relative to the
cost of the feedstock (gasoil CIF NWE) was US$16.3 per MT in the
fourth quarter (Q4 2002: US$21.2 per MT). This was unusually
low for the fourth quarter, which is traditionally a strong
period for ULSD with increased winter distillate demand.
The Antwerp bitumen plant operated smoothly at a reduced rate
throughout the fourth quarter. The reduced run rate reflects
the seasonal demand for bitumen.
The Teesside refinery benefited from fairly strong margins
although it also experienced lower than expected ULSD premiums.
Mercury continues to be extracted in Teesside from the naphtha
production due to the mercury contamination, which had a slight
negative impact on the results in the fourth quarter. The
investigation into possible legal proceedings is expected to be
concluded in the second quarter of 2004.
At the Cressier refinery there were no significant developments
over the fourth quarter. Rhine freight rates in the fourth
quarter started to drop after having seen extremely high levels
earlier in the year following the dry European summer. At the
end of December, the Rhine freight rate was CHF 30.5 per MT
relative to CHF 31.6 per MT over the full year.
Marketing
EUR(000) Marketing
Q4 2003 Q4 2002 % change 2003 2002 % change
unaudited audited
1,380,160 1,637,471 -16% Net Sales 5,959,109 5,054,391 18%
2,567 11,952 -79% Gross Profit 56,744 71,735 -21%
9,679 11,952 -19% Adjusted GP* 63,856 71,735 -11%
(11,941) 17,627 n.a. EBITDA 4,464 41,227 -89%
(4,829) (1,989) n.a. Adjusted 11,576 21,610 -46%
EBITDA *
(13,700) 16,269 n.a. Net Operating (2,447) 38,404 n.a.
Income
(6,588) (3,347) n.a. Adjusted NOI * 4,665 18,788 -75%
* Adjusted = excludes non-recurring items
2003 vs. 2002
The Marketing division result was strongly influenced by the
provision that was taken in the Dubai Supply & Trading office in
the fourth quarter of 2003. This provision of EUR7.1 million
was made to cover an outstanding claim. The adjusted gross
profit over the year was down by 11%. Adjusted Net operating
income decreased by EUR14.1 million to EUR4.7 million. The 2002
result was adjusted for primarily non-recurring sales proceeds
of EUR20.9 million from the sale of the Swiss bitumen marketing
business.
Q4 2003 vs. Q4 2002
The fourth quarter results include the provision for the Dubai
office. Adjusted gross profit was down by EUR2.3 million
relative to the same period in 2002. The adjusted net operating
income was minus EUR6.6 million compared to minus EUR3.3 million
in 2002.
Operational developments
Supply & Trading
Operationally, the Dubai Supply & Trading office started 2003
with very encouraging results continuing its profitable start
late 2002. In the course of the third quarter 2003 however, the
results deteriorated sharply and resulted in a full year loss.
Furthermore, as stated on 11 February 2004, Petroplus made a
provision in its 2003 accounts to cover a claim its Dubai office
has, following the non-performance of an important counter
party. As a result of these events Petroplus has decided to
transfer the management of the Dubai activities to its European
Supply & Trading head office in Zug. The Dubai office became a
representative and originating office as of 1 January 2004.
Wholesale
The wholesale activities had a difficult second half of 2003
with particularly the German and United Kingdom activities
showing disappointing fourth quarter results. The German
activities were impacted by mild weather, high Rhine freight
rates increasing the cost of importing product and the market
structure (backwardated). The current business portfolio of
activities in Germany has recently been evaluated and Petroplus
is considering its position.
In the United Kingdom (U.K.), margins were down relative to the
same period last year. Petroplus has also recently completed an
evaluation of its U.K. wholesale activities. This has led to
the decision to reduce the number of terminals it distributes
from in order to create savings in working capital and a more
effective distribution network. Biodiesel Plus sales increased
further in the fourth quarter benefiting from the increased
blending capacity. Swiss inland sales benefited strongly from
the high Rhine freight rates.
Bunkering
Frisol had a good fourth quarter and has successfully expanded
its activities. North Sea Petroleum (NSP) however continues to
be affected by lower volumes. Both companies are impacted by
the strong Euro against the U.S. dollar, resulting in depressed
net margins in the ARA region (Amsterdam, Rotterdam, Antwerp).
Retail (Tango)
Tango's profitability over the fourth quarter was good. At the
end of 2003, Tango had 67 stations of which 2 were under
construction; 62 in The Netherlands, 4 of which 1 under
construction in Belgium and 1 under construction in Spain.
Logistics
EUR(000) Logistics
Q4 2003 Q4 2002 % change 2003 2002 % change
unaudited audited
6,699 7,487 -11% Net Sales 26,014 30,813 -16%
8,366 8,364 0% Gross Profit 32,005 37,236 -14%
3,897 1,167 234% EBITDA 13,407 14,917 -10%
2,825 119 2274% Net Operating 9,410 11,535 -18%
Income
2003 vs. 2002
The Logistics division showed a decrease in Gross Profit over
the full year which is explained by the backwardated market over
2003. Over the full year, the average backwardation for gas oil
was US$3.76 per MT while over 2002, there was a slight contango
of US$0.46 per MT. Net Operating Income decreased by EUR2.1
million to EUR9.4 million in 2003 (EUR11.5 million in 2002).
Q4 2003 vs. Q4 2002
The Gross Profit over the fourth quarter remained practically
unchanged relative to last year despite an increase of the
backwardation in the 2003 fourth quarter. Net operating income
increased to EUR2.8 million (EUR0.1 million in 2002).
Operational developments
There were no significant events or developments within the tank
storage activities of the logistics division in the fourth
quarter.
Dragon LNG
Petroplus made significant progress in the fourth quarter in
developing the Liquefied Natural Gas (LNG) project in Milford
Haven, Wales. On 12 November 2003, Petroplus signed a
Memorandum of Understanding (MoU) with BG Energy Holdings
Limited, a subsidiary of BG Group plc, for the joint
development, ownership and operation of the project.
On December 18, 2003, Petroplus also signed a Letter of Intent
(LoI) with Petroliam Nasional Berhad also for the joint
development, ownership and operations of the project.
BG and Petronas intend to acquire an equity stake of
respectively 50% and 30% in Dragon LNG, a special purpose
project company already established by Petroplus to develop the
project. Petroplus will retain a 20% share in the project.
In addition, BG and Petronas initially intend to use 3 billion
cubic meters per annum each, equivalent to one tank each and
therefore equal to the initial two-tank project. Petroplus has
planning permission for the construction of a possible third
tank.
Provided that over the coming months the project continues to
develop in line with expectations, construction will start in
the second half of 2004. The signing of the Heads of Agreement
with Petronas on March 5, 2004 is an important milestone in the
process. Completion of the transactions with both partners is
also expected to take place in the second half of 2004 at which
point Petroplus anticipates to realize a book profit which is
significantly higher than EUR50 million.
Other Businesses & Central Overheads
EUR(000) Other Businesses
Q4 2003 Q4 2002 % change 2003 2002 % change
Unaudited audited
28,438 29,469 -3% Net Sales 127,530 132,210 -4%
1,697 1,673 1% Gross Profit 7,522 7,911 -5%
(3,763) (3,010) n.a. EBITDA (7,101) (6,679) n.a.
(1,763) (1,287) n.a. Adjusted EBITDA * (5,101) (2,456) n.a.
(6,433) (3,648) n.a. Net Operating (11,657) (11,985) n.a.
Income
(2,333) (1,925) n.a. Adjusted NOI * (7,557) (7,762) n.a.
* Adjusted = excludes non-recurring items
2003 vs. 2002
Gross profit for the Other Businesses activities and Central
Overhead costs was down 5% relative to 2002 and amounted to
EUR7.5 million (EUR7.9 million in 2002). The adjusted Net
operating income was minus EUR7.6 (minus EUR7.8 million in
2002).
Q4 2003 vs. Q4 2002
The Gross Profit over the fourth quarter remained nearly
unchanged relative to 2002 at EUR1.7 million. The adjusted Net
operating income was -EUR2.3 million (-EUR1.9 in 2002). Part of
the costs and write-down associated with the Antwerp refinery
impacted the Petroplus International Holding.
Operational developments
There were no significant developments within the Other
Businesses group in the fourth quarter. Oxyde Chemicals was
unable to maintain its strong performance from earlier in the
year. Petroplus has been successful in further reducing its
central overhead costs in 2003 with further benefits anticipated
in 2004.
Recent Developments
Sale of Tango completed
As announced on March 1, 2004, Petroplus has successfully
completed the sale of Tango to Kuwait Petroleum Nederland BV, a
subsidiary of Kuwait Petroleum Corporation. Under the terms of
the sale and purchase agreement, the transfer of the activities
took place on March 1, 2004. As also previously indicated,
Petroplus has received a total cash consideration of
approximately EUR72 million for its 95% shareholding, net of
working capital and all transaction fees and realized a book
profit of approximately EUR52 million. The proceeds from the
sale will be accounted for in the first quarter of 2004.
The proceeds of the Tango divestment will be used to improve the
balance sheet of the group.
Credit Rating Agencies
On February 11, 2004, the credit rating agency Standard & Poor's
placed the Petroplus rating on CreditWatch with negative
outlook. Petroplus' current corporate credit rating is B+ while
the debt rating on the senior unsecured bonds is B-.
Outlook
Petroplus faces a number of important developments in 2004:
finalization of the restructuring of the Antwerp refinery;
realization of a number of important milestones for Dragon LNG
project ultimately leading to financial close in the latter half
of the year and streamlining the German wholesale activities.
Looking back, 2003 was a year in which refining margins improved
significantly relative to 2002. However, 2003 also showed ULSD
premiums and Rhine freight tariffs that were very volatile which
combined with a weak U.S. dollar had a negative impact on the
results of Petroplus.
Petroplus has been very cautious over the last 18 months in
making forward-looking statements. With continued uncertainty
surrounding economic recovery and the above-mentioned
developments, Petroplus will maintain its cautious position and
refrain from providing an outlook for 2004. Petroplus will
further develop the LNG project and continue the restructuring
process aimed at deleveraging the balance sheet and stabilizing
cash flows.
To see complete copy of financial results:
http://bankrupt.com/misc/Petroplus_2003.pdf
===========
N O R W A Y
===========
PETROLEUM GEO-SERVICES: To Announce Preliminary Results March 16
----------------------------------------------------------------
Petroleum Geo-Services ASA (OSE: PGS; OTC: PGEOY) expects to
announce its preliminary, unaudited fourth quarter and year-end
2003 financial results at approximately 3:00 p.m. Central
European Time (CET) (9:00 a.m. Eastern Time (ET)) on Tuesday,
March 16, 2004, before the Oslo Stock Exchange closes and prior
to trading in the United States.
Following the release of the preliminary, unaudited financial
results, the Company has scheduled a teleconference and web cast
to begin promptly at 3:45 p.m. CET (9:45 a.m. ET). Individuals
who wish to participate on this listen only teleconference
should dial-in at least five to ten minutes prior to the
scheduled start time.
Location Dial-in Number
Norway Toll Free: 800 80 119
U.S. Phone: +1 47 23 00 04 00
U.K. and Other Phone: +47 23 00 04 00
Otherwise, individuals can participate via simulcast over the
Internet by going to the Petroleum Geo-Services web site at
http://www.pgs.com,at least 15 minutes early to register and to
download and install any necessary audio software. Questions to
management can be submitted, in writing, over the Internet by
accessing the web cast only.
Petroleum Geo-Services is a technologically focused oilfield
service company principally involved in geophysical and floating
production services. Petroleum Geo-Services provides a broad
range of seismic- and reservoir services, including acquisition,
processing, interpretation, and field evaluation. Petroleum
Geo-Services owns and operates four floating production, storage
and offloading units. Petroleum Geo-Services operates on a
worldwide basis with headquarters in Oslo, Norway. For more
information on Petroleum Geo-Services visit http://www.pgs.com.
CONTACT: PETROLEUM GEO-SERVICES ASA
Sam R. Morrow
Svein T. Knudsen
Phone: +47 6752 6400
Suzanne M. McLeod
Phone: +1 281-589-7935
===========
P O L A N D
===========
WIRTUALNA POLSKA: Rumors of Yahoo! Entry in Local Market Swirl
--------------------------------------------------------------
Speculations are rife that America's Yahoo! is planning to
launch a Polish language version of its portal in order to win
over users of the ailing Wirtualna Polska, Warsaw Business
Journal says.
Wirtualna Polska is the second most popular Web site in Poland
next to Onet.pl. Running in third place is Interia.pl.
Industry sources warn an entry of a major American player could
detrimentally affect the performance of the existing portals.
Internet advertising in the region is valued at between PLN45
million to PLN50 million. Yahoo! representatives declined to
confirm or deny the rumors, according to the report.
===========
R U S S I A
===========
BABAEVO FURNITURE: Declared Insolvent
-------------------------------------
The Arbitration Court of Vologda region declared Closed JSC
Babaevo furniture factory insolvent and subsequently introduced
bankruptcy proceedings on the company. The case is docketed as
A13-6707/03-17. Vladimir Klubov, a member of TP Interregional
self-regulated organization of arbitral managers Severnaya
Stoliza, has been appointed insolvency manager.
Creditors have until April 28, 2004 to submit their proofs of
claim to the insolvency manager at: 162510, Russia, Vologda
region, Kaduy', Vesennyaya 6-62.
CONTACT: BABAEVO FURNITURE FACTORY
162481, Russia, Vologda region
Babayevo, Sverdlova str.3
Vladimir Klubov, Insolvency Manager
162510, Russia, Vologda region
Kaduy', Vesennyaya 6-62
ENERGOUPRAVLENIYE: Kemerovo Court Opens Bankruptcy Proceedings
--------------------------------------------------------------
The Arbitration Court of Kemerovo region declared power
corporation OJSC Energoupravleniye (TIN4220005298) insolvent,
and introduced bankruptcy proceedings on the company. The case
is docketed as A27-9117/2003-4. Viktor Bakulin, a member of TP
Siberian Interregional self-regulated organization of arbitral
managers, has been appointed insolvency manager.
Creditors have until May 6, 2004 to submit their proofs of claim
to the insolvency manager at: 654063, Russia, Kemerovo region,
Novokuznezk, Shebelinskaya str.10.
CONTACT: ENERGOUPRAVLENIYE
654063, Russia, Kemerovo region
Novokuznezk, Shebelinskaya str.10
Viktor Bakulin, Insolvency Manager
654063, Russia, Kemerovo region
Novokuznezk, Shebelinskaya str.10
KASPIYSKY: Declared Insolvent
-----------------------------
The Arbitration Court of Republik of Kalmykiya declared machine-
building factory OJSC Kaspiysky Machine-Building Factory
insolvent and introduced bankruptcy proceedings on the company.
The case is docketed as A22-1406/03/2-143. A. Garikov has been
appointed insolvency manager.
Creditors have until May 6, 2004 to submit their proofs of claim
to the insolvency manager at: 358005, Russia, Republik of
Kalmykiya, Elista, Kchomutnikova str.127.
CONTACT: A. Garikov, Insolvency Manager
358005, Russia, Republik of Kalmykiya
Elista, Kchomutnikova str.127
KULSHARIPOVSKAYA: Begins Bankruptcy Procedure
---------------------------------------------
The Arbitration Court of Republic of Tatarstan declared Poultry
factory State Unitary Enterprise Poultry Factory
Kulsharipovskaya insolvent and introduced bankruptcy proceedings
on the company. The case is docketed as A65-17146/2003-SG4-35.
G. Okriashvily, a member of TP Republic of Tatarstan' self-
regulated organization of arbitral managers, has been appointed
insolvency manager.
Creditors have until May 6, 2004 to submit their proofs of claim
to the insolvency manager at: 420061, Russia, Republic of
Tatarstan, Kazan, Post User Box 39.
CONTACT: KULSHARIPOVSKAYA
423450, Russia, Republic of Tatarstan
Almetyevsky Area, Kulsharipovo
G. Okriashvily, Insolvency Manager
420061, Russia, Republic of Tatarstan
Kazan, Post User Box 39
TP
420029, Russia, Republic of Tatarstan, Kazan
Sibirsky trakt.34, Post User Box 28
RZHEVSELCHOZENERGO: Under Bankruptcy Supervision Procedure
----------------------------------------------------------
The Arbitration Court of Tver region commenced bankruptcy
supervision procedure on power company Closed JSC
Rzhevselchozenergo. The case is docketed as A66-10134-03. A.
Pereverzev has been appointed temporary insolvency manager.
Creditors have until March 20, 2004 to submit their proofs of
claim to the insolvency manager at: 170006, Russia, Tver,
Bebelya str.2, c.1, fl.4a. A hearing will take place on May 17,
2004, 10:30 a.m., at the Arbitration Court of Tver region.
CONTACT: RZHEVSELCHOZENERGO
172350, Tver region, Rzhev
Krasnodarskaya str.1.
A. Pereverzev, temporary insolvency manager
170006, Russia, Tver
Bebelya str.2, c.1, fl.4a
TVER PIVO: Moscow Court Appoints Insolvency Manager
---------------------------------------------------
The Arbitration Court of Moscow commenced bankruptcy supervision
procedure on Beer Company Closed JSC Tver Pivo. The case is
docketed as A40-1992/04-78-3B. Sergey Rozhkov, a member of TP
Interregional Self-regulated organization of arbitral managers,
has been appointed temporary insolvency manager.
Creditors are asked to submit their proofs of claim to the
temporary insolvency manager at: 107113, Russia, Moscow, Post
User Box 40.
A hearing will take place on July 1, 2004, at the Arbitration
Court of Moscow.
CONTACT: TVER PIVO
109017, Russia, Moscow
Staromonetny per.3 str.1
Sergey Rozhkov, Temporary Insolvency Manager
107113, Russia, Moscow, Post User Box 40
UE VODOKANAL: Under Bankruptcy Supervision Procedure
----------------------------------------------------
The Arbitration Court of Rostov region commenced bankruptcy
supervision procedure on Unitary Enterprise Vodokanal. The case
is docketed as A53-1263/2004-C28. E. Shachkulov, a member of TP
Interregional self-regulated organization of arbitral managers,
has been appointed temporary insolvency manager.
Creditors are asked to submit their proofs of claim to the
temporary insolvency manager. A hearing will take place on June
8, 2004, 14.30, at the Arbitration Court of Rostov region.
CONTACT: VODOKANAL
Russia, Rostov region, Salsk, Kirova str.130
THE ARBITRATION COURT OF ROSTOV REGION
344008, Russia, Rostov region
Rostov-on-Don, Stanislavskogo str.8A
VOTKINSKY BRICKWORKS: Names A. Ashichmin Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of Republic of Udmurtiya has placed LLC
Votkinsky Brickworks (TIN1828010747) under bankruptcy
supervision procedure until September 2004. The case is
docketed as A71-260/2003-G26. A. Ashichmin, a member of TP
Privolzhskaya self-regulated organization of arbitral managers,
Alyans, has been appointed temporary insolvency manager.
Creditors are asked to submit their proofs of claim to the
temporary insolvency manager at: 426004, Russia, Izhevsk, Post
User Box 905.
CONTACT: VOTKINSKY BRICKWORKS
427430, Russia, Republic of Udmurtiya
Votkinsk, Kirpichnozavodskaya str.4A
A. Ashichmin, Temporary Insolvency Manager
426004, Russia, Izhevsk, Post User Box 905
ALYANS
603001, Nizhny Novgorod
Pochainskaya str.20
Republic of Udmurtiya' branch
Izhevsk, Lomonosova str.4
===========
S W E D E N
===========
JULIUS BAER: Second-half Earnings Jump Significantly
----------------------------------------------------
The Julius Baer Group increased its assets under management by
12% to CHF116 billion (US $91 billion) in the 2003 financial
year. Thanks to a favorable business trend as of the second
quarter, the operating results, as reflected by the gross profit
of CHF272 million (US$214 million), nearly matched last year's
level of CHF290 million (US$228 million).
The Group's decision to focus on the asset management business
and thus sell off the brokerage operations influenced the
financial results. This factor, together with additional one-
time restructuring costs and expenditures, lowered the net
profit to CHF82 million (US $65 million) (-55%).
Excluding these extraordinary items, net profit would have
amounted to CHF195 million (US$153 million) (2002: CHF183
million /US$144 million). The Board of Directors will propose a
stable dividend of CHF6.00 (US$4.70 dollars) per bearer share
and CHF1.20 (US$0.94 dollars) per registered share to the
Shareholders' Meeting on May 12, 2004. A new share repurchase
program of up to CHF65 million (US$51 million) will be launched
in mid-March.
"The 2003 financial year was, for us, a year marked by
deliberate consolidation," commented Chairman Raymond J. Baer
regarding the financial results.
"With the strategic decision to focus on our strength, asset
management, we have laid the foundation for healthy and
sustainable growth." Accordingly, Chief Executive Officer Walter
Knabenhans expressed cautious optimism about the current
financial year: "There is reason for confidence but no cause for
euphoria. The trend in the second half of the year, for assets
under management as well as for new money inflows, can be deemed
positive on the whole. Our efforts to improve profitability and
contain costs will reinforce the positive effects of this
growth."
Rising assets under management as a foundation for future
earnings
Assets under management were expanded by 12% from CHF103 billion
(US $ 81 billion) to CHF116 billion (US$91 billion). Net new
money inflows amounted to CHF5.3 billion (US$4 billion). The
inflow of CHF4.5 billion (US$3.5 billion) in the Asset
Management Business Line significantly exceeded expectations,
whereas the new money in the Private Banking Business Line came
to CHF0.7 billion (US$0.55 billion). The growth of assets under
management was hampered by currency effects totaling CHF2.6
billion (US$2 billion), resulting from the weakness of the US
dollar that outweighed the strength of the euro.
Declining revenues on the whole, but positive developments in
second half of year
The low interest rate level worldwide, the decreased average
assets under management and the overall lower trading volume had
an impact on income. Net operating income receded by 9% to
CHF1.0 billion (US$0.78 billion) during the financial year.
CHF431 million (US$339 million) or a stable 42% of this amount
was attributable to Private Banking, CHF265 million (US$209
million) or 26% (23%) to Asset Management, and CHF138 million
(US$108 million) or 14% (12%) to Trading & Sales.
Net interest income declined by 21% compared to the previous
year, dropping to CHF120 million (US$94 million). Results from
commission and service fee activities fell by 11% to CHF740
million (US$582 million). Fees (which depend on the level of
assets) were down by about 5% to CHF641 million (US$501
million). Commissions (which depend on the level of turnover)
decreased by 21% to CHF249 million (US$195 million), due in part
to the sale of the brokerage operations. Results from trading
operations grew by a total of 20%. This is wholly attributable
to the rise in income from foreign exchange and precious-metals
trading by 30% to CHF111 million (US$87 million), whereas income
from securities trading receded by 15% to CHF19 million (US$15
million). The second half of the year was generally
characterized by a favorable income trend.
Cost base reduced, but net profit influenced by special factors
The strict cost management showed positive results, pushing down
operating expenses by 10% to CHF748 million (US$588 million).
Personnel expenses were trimmed by CHF54 million (US$42 million)
to CHF506 million (US$398 million). The lower personnel costs
reflect the 22% reduction in personnel to 1766 employees
compared to year-end 2002. This decline is attributable, among
other things, to the sale of the brokerage operations. Other
operating expenses were cut by 10% to CHF242 million (US$190
million).
"Thanks to our cost discipline, we were able to limit the drop
in gross profit to 6% versus the previous year. The figure of
CHF272 million (US$214 million) for 2003 was certainly in line
with our expectations," summed up Rolf W. Aeberli, Chief
Financial Officer. However, one-time special factors weighed
down the net profit. Apart from restructuring expenses for the
brokerage business (CHF55 million/US$43 million) and general
streamlining costs (CHF24 million/US$19 million), deferred tax
write-offs (CHF22 million/US$17 million) and depreciation on IT
systems (CHF12 million/US$9 million) reduced the net profit to
CHF82 million (US$64 million). "Excluding one-time special
charges, net profit would amount to CHF195 million (US$153
million)," explained Rolf W. Aeberli.
Strong equity base and unchanged dividend
The financial strength of the Julius Baer Group changed little
during 2003: Its BIS tier 1 ratio of 19.1% (2002: 23.4%)
significantly exceeds the Swiss and international legal
requirements for banks. In view of this, the Board of Directors
will propose a stable dividend of CHF6.00 (US$4.70 dollars) per
bearer share and CHF1.20 (US$0.94 dollars) per registered share
to the Shareholders' Meeting on May 12, 2004. Given the Julius
Baer Group's comfortable level of equity capital, the total
payout ratio in the form of dividends and share repurchases
shall be increased at the expense of forming reserves.
Uneven trends in the business lines
In Private Banking, assets under management climbed by a total
of 12% to CHF61 billion (US$48 billion), attributable primarily
to good investment performance. The momentum displayed by the
net new money inflows in the first three quarters of 2003 did
not carry over into the fourth quarter. For the year as a
whole, net new money inflows amounted to CHF700 million (US$551
million). Due to various one-time expenses and lower average
assets under management for the year, the net profit of the
business line receded by around 30% to CHF76.3 million (US$60
million).
The Asset Management Business Line recorded a clearly positive
business trend as of the second quarter. Thanks particularly to
high new money inflows of CHF4.5 billion (US$3.5 billion),
institutional assets increased by 13% to CHF54 billion (US$42
billion). CHF2.7 billion (US$2.1 billion), representing
considerably more than half of the net new money inflows, was
attributable to the successful International Equity Fund in the
USA, whose assets at the end of 2003 exceeded the value of
CHF5.0 billion (US$3.9 billion) for the first time. This
positive development was offset by a one-time write-off of
deferred tax assets, resulting on balance in a 12% drop in the
business line's net profit to CHF52.7 million (US$41.5 million).
In Trading & Sales, operating income rose by 7% to CHF138
million (US$109 million). This increase was largely
attributable to foreign exchange and equity trading. The net
profit of the business line was up by 58% to CHF49 million
(US$38.5 million).
Brokerage, which was sold at the start of October, incurred an
operating loss of CHF28 million (US$22 million) for the
reporting period from January through September. Including the
one-time restructuring expenses already mentioned, the business
line recorded a net loss of CHF88 million (US$69 million).
New core banking platform
In his outlook, Walter Knabenhans underscored the following: "An
important strategic success factor of the Julius Baer Group is
its traditional, family-dominated character as a private bank,
combined at the same time with transparency as an SMI stock
listed on the SWX Swiss Exchange. This clear differentiation
and the deep-rooted brand internationally provide us with market
advantages that we aim to exploit more thoroughly in an
environment marked by change and consolidation." In order to
sustainably boost profitability, income-generating possibilities
must be utilized more systematically, especially in Private
Banking. "We want to steadily expand the share of discretionary
mandates. At the same time, we will introduce a wider ranging
price structure in April 2004, which will enable us to organize
our services more efficiently for our clients as well as for
us."
Following intensive negotiations with external partners
regarding the possible outsourcing of the core banking platform,
Julius Baer has decided to pursue a standard banking solution
for its back office. "The long-term savings potential appears
to us to be greater in the case of a standard software package.
We will therefore introduce an Avaloq solution," explained
Walter Knabenhans regarding the decision.
New share repurchase program
The share repurchase program for 2003/2004 was completed with
the repurchase of 172,800 bearer shares, representing a total
value of CHF65 million (US$51 million). In accordance with a
resolution of the Board of Directors, additional bearer shares
up to a maximum value of CHF65 million (US$51 million) shall be
repurchased through a second trading line on the SWX Swiss
Exchange between mid-March 2004 and the end of February 2005.
The continuation of this program underscores Julius Baer's
intention to actively manage its equity base over the long term.
The documents accompanying the financial press conference
(presentations, annual report and press release in multiple
languages) will be available as of 7:00 a.m. Wednesday at
http://www.juliusbaer.com
The 2004 first half-year results of the Julius Baer Group will
be released on August 13, 2004.
About Julius Baer
Julius Baer, one of the leading private banks in Switzerland,
specializes in asset management, investment counseling and
investment funds for private and institutional investors from
around the world. It also offers related services in securities
trading. Julius Baer will employ a staff of around 1 700
worldwide. As of March 2004, the Group had CHF116 billion
(US$91 billion) worth of assets under management.
CONTACT: JULIUS BAER GROUP
Juerg Staehelin (Media Relations)
Phone: +41(0) 58 888 5327
Jan A. Bielinski (Investor Relations)
Phone: +41(0) 58 888 5501
U.S.
Intermarket Communications
Neil Shapiro
Phone: 212-888-6115, ext 247
Tyler Bradford
Phone: 212-888-6115, ext 245
SAS GROUP: Continues to Reorganize Legal Structure
--------------------------------------------------
The SAS Group has provided information earlier -- in its year-
end report and press releases -- regarding the work in progress
to create a more functional legal structure for the SAS Group,
which will harmonize the business structure. The change in the
legal structure is being implemented in stages. In November
2003, the employees in Corporate Functions were transferred from
the SAS consortium to SAS AB and, in December 2003, a number of
the SAS consortium's subsidiaries were transferred to SAS AB on
market conditions. In addition, SAS AB's Board of Directors has
given the management a mandate to implement the transfer of the
SAS consortium's SAS Ground Services, SAS Technical Services,
SAS trading and Shared Services business units to separate SAS
AB subsidiaries.
To further improve the conditions for profitable and competitive
operations, the Board of SAS AB on Wednesday decided to assign
the management to integrate the SAS consortium's flight
operations in Norway with Braathens and to allow the merged
operations to become a subsidiary within the SAS consortium.
The Board has also decided to establish wholly owned
subsidiaries of the SAS consortium in Denmark and Sweden to
conduct the airline operations that the consortium currently
manages through its regional business units in Denmark and
Sweden. The SAS Group's intercontinental airline operations
will continue to be conducted by the SAS consortium. The change
will be implemented with respect to all of the SAS consortium's
existing obligations and commitments, including political
aviation and other regulatory requirements, and leasing and
financial agreements.
In Norway, an interim solution is soon to be established in the
form of a contractual joint venture between the SAS consortium
and Braathens, by which a joint management team will assume
responsibility for the total production resources in the
Norwegian market.
The transfers mean that the SAS Group's total operations will be
relatively unchanged, while also creating the conditions for
increased competitiveness through new cost-effective units. In
its contacts with authorities, lending institutions, suppliers
and other affected associates, the SAS management will now
describe and explain the changes and their positive effects.
No changes will occur to the listed unit, SAS AB, which will
remain the Group's Parent Company and continue to be listed on
the exchanges in Stockholm, Oslo and Copenhagen.
SAS GROUP: To Split into Three Independent Companies
----------------------------------------------------
The Board of Directors of SAS AB decided that Scandinavian
Airlines is to be incorporated by establishing three independent
companies under the SAS consortium and providing Group
management with a mandate to implement the change in terms of
the required negotiations.
With the aim of achieving the full effect of the Turnaround 2005
action program, the Board also made a policy decision to proceed
with the alternative savings measures proposed by Group
management.
Incorporation of Scandinavian Airlines and merger in Norway
Scandinavian Airlines in Norway will be integrated with
Braathens, with the merged operations becoming a subsidiary the
SAS consortium under the name SAS Braathens. This change
requires new collective agreements for Norwegian pilots and
cabin crew in cases where cabin-crew agreements have already
been signed. The Board has also decided to establish wholly
owned subsidiaries of the SAS consortium in Denmark and Sweden
to conduct the airline operations that the consortium currently
undertakes through its regional business units. The SAS Group's
intercontinental airline operations will continue to be
conducted by the SAS consortium.
The SAS Group's overall operations will remain relatively
unchanged, while at the same time, conditions will be created
for increased competitiveness through new, cost-effective legal
entities.
Result of collective-agreement negotiations and alternative
action plans
The aim of Turnaround 2005 is to provide the SAS Group with
sustainable competitiveness and profitability. If the program
is to succeed, savings of about SEK14 billion are required.
Approved and defined measures currently total approximately
SEK12.5 billion, of which 60% has been implemented. The
remaining amount of about SEK2 billion pertains mainly to
renewed collective agreements for all personnel categories.
The negotiations between company management and the trade unions
have achieved favorable results in many cases, including in
Norway, where there were satisfactory results for cabin
personnel and ground staff. However, agreements are still not
in place for sections of the ground staff and for cabin crew in
Scandinavian Airlines.
"Group management was therefore assigned to study the business
and legal consequences of the proposals contained in the
alternative action plan that had been presented to the Board,"
says SAS CEO Jorgen Lindegaard. An extraordinary Board meeting
to be held on March 23, 2004, will make a definite decision on
the issue and will decide on the implementation of the
alternative measures.
CONTACT: SAS GROUP
Hans Ollongren, SVP,
Corporate Communication and Public Affairs,
Phone: +46 8 797 19 50 or +46 709 97 19 50
Simen Revold
Director Corporate Communications
SAS Group Norway
Phone: +47 957 16310
Troels Rasmussen
Director Corporate Communications
SAS Group Denmark
Phone: +45 23 22 4675
=====================
S W I T Z E R L A N D
=====================
SWISS INTERNATIONAL: Chairman Bouw Takes over as Interim CEO
------------------------------------------------------------
Andre Dose, President and Chief Executive Officer of Swiss
International Air Lines Ltd., has placed his position at the
disposal of the Board of Directors. The Board respects this
personal decision and thanks Andre Dose for his exceptional and
tireless endeavors. It acknowledges his great achievement in
establishing the young airline and setting it on course towards
a sound business future. Chairman of the Board Pieter Bouw will
additionally assume the function of company CEO on an interim
basis.
As is already known, the Office of the Prosecutor General of the
Swiss Confederation is considering extending its investigations
relating to the loss of a Crossair aircraft near Bassersdorf,
Switzerland in November 2001 to individual persons. Andre
Dose's offer to place his position at the disposal of the Swiss
Board of Directors follows a comprehensive analysis of the
situation by himself and the Board.
The Board condemns the imputations, personal attacks and
prejudgements from certain circles to which Andre Dose has been
exposed in the last few days and weeks. The Board not only
expresses its great respect for Andre Dose for the decision he
has taken in the interests of the company; it also voices its
thanks to him for his selfless commitment to Swiss since its
inception. Andre Dose led the young company through the most
turbulent of times; and he managed -- despite difficult overall
conditions -- to initiate a corporate turnaround that has every
prospect of success.
Chairman of the Board Pieter Bouw will assume the function of
company CEO in addition to his existing duties with immediate
effect. In doing so, he can draw on the experience and
expertise of an extensive career covering all key areas of the
airline business. He successfully led KLM Royal Dutch Airlines
as its company CEO from 1991 to 1997.
To assist Pieter Bouw effectively in his new dual role, the
Board of Directors has also appointed a second Deputy Chairman
from its ranks. Walter Bosch has been designated to serve in
this capacity. Bosch has also been named as independent Lead
Director, to ensure full compliance with all good corporate
governance requirements.
The Board of Directors has further confirmed Swiss's clear
commitment to its current overall strategy, and to its continued
consistent pursuit of the corporate turnaround which has already
been initiated.
Swiss will report and comment extensively on its 2003 annual
results and its outlook for 2004 at its Annual Results Media
Conference, which will be held in Basel on March 23.
===========================
U N I T E D K I N G D O M
===========================
ABBEY NATIONAL: Completes Sale of Royal Saint Georges Banque
------------------------------------------------------------
Abbey National (LSE: ANL.L) announces that, with all conditions
having been satisfied, the sale of Royal Saint Georges Banque to
GE Capital Bank France, part of the General Electric Company
(NYSE: GE), was duly completed on Wednesday 10 March 2004.
*****
In February, Abbey National reported an overall Group pre-tax
loss of GBP686 million (2002:loss of GBP947 million), consisting
of: personal financial services trading profit less personal
financial services 'non-trading' charges of GBP786 million and
Portfolio Business Unit losses of GBP921 million.
ALIDON LIMITED: Names Carter Clark Liquidator
---------------------------------------------
At an Extraordinary General Meeting of the Members of the Alidon
Limited (formerly Hammond Feel the Magic Limited) Company on
February 27, 2004 held at Premier Lodge, Stewardstone Road,
Waltham Abbey, Essex EN9 3QF, the subjoined Extraordinary
Resolutions to wind up the Company were passed.
A J Clark, of Carter Clark, Meridian House, 62 Station Road,
North Chingford, London E4 7BA, is appointed Liquidator for the
Company.
CONTACT: CARTER CLARK
Meridian House,
62 Station Road,
North Chingford,
London E4 7BA
Contact:
A J Clark, Liquidator
APPLE MANAGEMENT: Appoints Marks Bloom Liquidator
-------------------------------------------------
At an Extraordinary General Meeting of the Members of the Apple
Management U.K. Limited Company on March 1, 2004 held at 60-62
Old London Road, Kingston upon Thames, Surrey KT2 6QZ, the
Extraordinary Resolution to wind up the Company was passed.
Philip Weinberg, of Marks Bloom, 60-62 Old London Road, Kingston
upon Thames, Surrey KT2 6QZ, is nominated Liquidator for the
Company.
CONTACT: MARKS BLOOM
60-62 Old London Road,
Kingston upon Thames,
Surrey KT2 6QZ
Contact:
Philip Weinberg, Liquidator
BAE SYSTEMS: Hawk Contract with Indian Govt. Hits Glitch
--------------------------------------------------------
BAE Systems is renegotiating its GBP1 billion deal to supply
Hawk jets to India, according to Times Online.
The contract to supply 66 training aircraft should have been
sealed this week, but BAE's joint venture partner in the project
failed to include added expenditure when it submitted its budget
to the Indian Government, necessitating some revisions in the
original deal.
State-run aerospace business, Hindustan Aeronautics, missed to
include costs for tooling and training at its factory in
Bangalore. This means the cost per aircraft might go higher by
several million pounds.
BAE is thought to have told the Government that it cannot move
on the price agreed last September, the report said.
BAE declined to comment other than to say talks were continuing
with the Indian Government.
The glitch marks another failure in the long-running talk
involving the Hawk tender. The Indian Government first said it
wanted to buy the jets 18 years ago and came close to signing a
deal on several occasions.
CONTACT: BAE SYSTEMS
Farnborough, Hampshire GU14 6YU, UK
Phone: +44 (0) 1252 384605
Fax: +44 (0) 1252 383947
Home Page: http://www.baesystems.com
E-mail: investors@baesystems.com
BLUE IN GREEN: Designates Elliot Woolfe Liquidator
--------------------------------------------------
At an Extraordinary General Meeting of the Blue In Green
Information Services Ltd Company on February 24, 2004 held at
the offices of Elliot, Woolfe & Rose, 1st Floor, Equity House,
128-136 High Street, Edgware, Middlesex HA8 7TT, the subjoined
Extraordinary Resolution to wind up the Company was passed.
Melvyn L Rose, of Elliot, Woolfe & Rose, 1st Floor, Equity
House, 128-136 High Street, Edgware, Middlesex HA8 7TT, is
hereby appointed Liquidator for the Company.
CONTACT: ELLIOT WOOLFE & ROSE
1st Floor, Equity House,
128-136 High Street, Edgware,
Middlesex HA8 7TT
Contact:
Melvyn L Rose, Liquidator
BRADFORD CITY: Appoints Kroll Limited Administrator
---------------------------------------------------
Name of Company: Bradford City AFC 1983 Limited
Nature of Business: Recreational Service-Football Club
Trade Classification: 39
Date of Appointment: February 27, 2004
Joint Administrative Receiver: KROLL LIMITED
5th Floor, Airedale House,
77 Albion Street,
Leeds LS1 5AP
Receivers:
Neil Andrew Brackenbury
Michael Joseph Moore
(IP Nos 8269 and 5562)
CAREER DEVELOPMENT: Hires Administrator from Kroll Limited
----------------------------------------------------------
Name of Company: Career Development U.K. Limited
Nature of Business: General Secondary Education
Trade Classification: 41
Date of Appointment: February 27, 2004
Joint Administrative Receiver: KROLL LIMITED
5th Floor, Airedale House,
77 Albion Street,
Leeds LS1 5AP
Receivers:
Stuart Charles Edward Mackellar
Charles Peter Holder
(IP Nos 6883 and 9093)
CITY LIFTS: Calls in Administrator from Rothman Pantall & Co
------------------------------------------------------------
Name of Company: City Lifts Limited
Nature of Business: Other Special Trades Construction
Trade Classification: 4525
Date of Appointment: February 20, 2004
Joint Administrative Receiver: ROTHMAN PANTALL & CO
Clareville House,
26-27 Oxendon Street,
London SW1Y 4EP
Receivers:
Robert Derek Smailes
Stephen Blandford Ryman
(IP Nos 8975 and 4731)
DESIGN MOVEMENTS: Hires Liquidator from Poppleton & Appleby
-----------------------------------------------------------
At an Extraordinary General Meeting of the Design Movements
Limited Company on February 25, 2004 held at 35 Ludgate Hill,
Birmingham B3 1EH, on 25 February 2004, the subjoined Resolution
to wind up the Company was passed.
M T Coyne, of Poppleton & Appleby, 35 Ludgate Hill, Birmingham
B3 1EH, is appointed Liquidator for the Company.
CONTACT: POPPLETON & APPLEBY
35 Ludgate Hill,
Birmingham B3 1EH
Contact:
M T Coyne, Liquidator
EVERYVALVE EQUIPMENT: Resolves to Wind up Firm
----------------------------------------------
At an Extraordinary General Meeting of the Members of the
Everyvalue Equipment Limited Company on February 27, 2004 held
at Brentmead House, Britannia Road, London N12 9RU, the Special
Resolution to wind up the Company was passed.
Martin Henry Linton is appointed Liquidator for the purposes of
such winding-up.
FRESHMOORE DEVELOPMENTS: In Voluntary Liquidation
-------------------------------------------------
At an Extraordinary General Meeting of the Members of the
Freshmoore Developments Limited Company on February 27, 2004
held at 20 Winmarleigh Street, Warrington, Cheshire WA1 1JY, the
Special Resolution to wind up the Company was passed.
The Company appoints Robert William Keating of R W Keating & Co,
20 Winmarleigh Street, Warrington, Cheshire WA1 1JY as
Liquidator of the Company.
CONTACT: R W KEATING & CO
20 Winmarleigh Street,
Warrington,
Cheshire WA1 1JY
Contact:
Robert William Keating, Liquidator
GOVETT ASIAN: Investors Approve Voluntary Winding-up Proposal
-------------------------------------------------------------
At the Extraordinary General Meeting held on Wednesday, the
resolution was passed to wind up voluntarily Govett Asian Income
& Growth Fund Limited.
It is expected that a copy of the EGM resolution will be filed
with H.M. Greffier in Guernsey on 19 March 2004, at which time
the Liquidators will become appointed.
*****
The Board announced on June 20, 2003 that, in view of the level
of the Company's assets, it was considering all the strategic
options for the future of the Company. This wide-ranging review
to seek to enhance Shareholder value has been ongoing since that
date.
On November 17, 2003 the Board announced that it had appointed
Gartmore as Manager of the Company following the announcement by
AIB of the intended sale of certain of the management contracts
of Govett (who, at that time, was the Company's investment
manager) to Gartmore Investment Management Plc. Prior to that
announcement by AIB, the Board had been close to finalizing its
review of the strategic options available to the Company.
However, with the change of Manager, the Board considered it
necessary to give Gartmore time to gain a deeper understanding
of the Company and to allow it also to consider the future
viability of the Company.
As announced on January 29, 2004, the Board has held discussions
as to the strategic options available for the future of the
Company with its advisers, its major Shareholders and Gartmore
and has concluded that in view of the current size of the
Company, its total expense ratio and the level of discount at
which the Shares have traded historically, it would be in the
best interests of Shareholders as a whole if proposals were put
to Shareholders to wind-up the Company voluntarily and for the
Company's assets (after payment of its liabilities) to be
distributed to Shareholders on such a winding-up.
CONTACT: HOARE GOVETT LIMITED
Hugh Field
Phone: 020 7678 8000
HARVEY HOUSE: Hires Liquidator
------------------------------
At an Extraordinary General Meeting of the Members of the Harvey
House Ltd Company on February 23, 2004 held at 27 The Downs,
Altrincham, Cheshire WA14 2QD, the Special Resolution to wind up
the Company was passed.
Neil Henry and Michael Simister, are appointed Liquidators for
the Company.
HOTHOUSE CREATIONS: HSBC Appoints Grant Thornton Receiver
---------------------------------------------------------
Name of Company: Hothouse Creations Limited
Reg No 3168426
Nature of Business: Developer of Games Software
Trade Classification: 46
Date of Appointment of Joint Administrative Receivers:
February 27, 2004
Name of Person Appointing the Joint Administrative Receivers:
HSBC Bank Plc.
Joint Administrative Receivers: GRANT THORNTON
43 Queen Square,
Bristol BS1 4QR
Receivers:
Nigel Morrison
Richard Michael Hawes
(Office Holder Nos 8938, 8954)
Phone: 0117 926 8901
Fax: 0117 926 5458
Web site:
http://www.grant-thornton.co.uk
INDEPENDENT COMPUTER: Creditors Meeting Set March 16
----------------------------------------------------
There will be a Creditors Meeting of the Independent Computer
Supplies Limited Company on March 16, 2004 at 1:00 p.m. It will
be held at the Maple House, High Street, Potters Bar,
Hertfordshire EN6 5BS.
Creditors wishing to vote at the Meeting must submit full
statement of account (proof of debt) and (unless attending in
person) a proxy at the offices of Arkin & Co, Maple House, High
Street, Potters Bar, Hertfordshire EN6 5BS no later than 12:00
noon on or before March 15, 2004.
A list of the Creditors will be available for inspection, free
of charge, from Arkin & Co, Maple House, High Street, Potters
Bar, Hertfordshire EN6 5BS between 10:00 a.m. and 4:00 p.m. on
March 14 and 15, 2004.
Secured Creditors must, unless they surrender their security,
give particulars of their security and its assessed value if
they wish to vote at the Meeting.
Mehmet Arkin of Arkin & Co, Maple House, High Street, Potters
Bar, Hertfordshire EN6 5BS, is a person qualified to act as an
Insolvency Practitioner for the Company. By Order of the Board
of Directors.
CONTACT: ARKIN & CO
Maple House
High Street,
Potters Bar,
Hertfordshire EN6 5BS
Contact:
Mehmet Arkin, Liquidator
JOHNSON HAYNES: Creditors Assembly March 25
-------------------------------------------
There will be a Creditors Meeting of the Johnson Haynes Press
Knives Limited Company on March 25, 2004 at 11:00 a.m. It will
be held at 100-104 St James Road, Northampton NN5 5LF.
A list of the Company's Creditors will be available for
inspection at the offices of BRI Business Recovery and
Insolvency, 100-104 St James road, Northampton NN5 5LF on March
23 and 24, 2004.
By Order of the Board.
KESAN AUTOMATION: Creditors to Gather March 16
----------------------------------------------
There will be a Creditors Meeting of the Kesan Automation
Limited Company on March 16, 2004 at 11:00 a.m. It will be held
at PricewaterhouseCoopers LLP, Cornwall Court, 19 Cornwall
Street, Birmingham B3 2DT.
A list of the names and addresses of the Company's creditors may
be inspected, free of charge between 10:00 a.m. and 5:00 p.m. at
PricewaterhouseCoopers LLP, Cornwall Court, 19 Cornwall Street,
Birmingham B3 2DT on March 14 and 15, 2004.
Creditors wishing to vote at the Meeting must (unless they are
individual Creditors attending in person) ensure their proxies
are received at PricewaterhouseCoopers LLP, Cornwall Court, 19
Cornwall Street, Birmingham B3 2DT, no later than 12:00 noon on
or before March 15, 2004. By Order of the Board.
CONTACT: PRICEWATERHOUSECOOPERS LLP
Cornwall Court,
19 Cornwall Street,
Birmingham B3 2DT
Phone: [44] (121) 200 3000
Fax: [44] (121) 200 2464
Web site: http://www.pwcglobal.com
KINGSBURY CONTRACTS: Creditors Meeting Set March 16
---------------------------------------------------
There will be a Creditors Meeting of the Kingsbury Contracts
Limited Company on March 16, 2004 at 2:30 p.m. It will be held
at Church Steps House, Queensway, Halesowen, West Midlands B63
4AB.
David Thomas Greensill, of Mayfields Insolvency Practitioners,
Church Steps House, Queensway, Halesowen, West Midlands B63 4AB,
is qualified to act as an Insolvency Practitioner for the
Company. They will furnish Creditors, information concerning
the Company's affairs as they may reasonably require, free of
charge.
Creditors who can not attend the meeting must submit a proxy
form accompanied by statements of claim, at the registered
office of the Company situated at the Church Steps House,
Queensway, Halesowen, West Midlands B63 4AB not later than 12:00
noon on or before March 15, 2004. By Order of the Board.
KINSTRUT LIMITED: Creditors to Meet March 19
--------------------------------------------
There will be a Meeting for the unsecured Creditors of the
Kinstrut Limited Company of March 19, 2004 at 10:30 a.m. It
will be held at The Kingsbourne Room, Hanover Int. Hotel, 1
Luton Road, Harpenden, Hartfordshire AL5 2PX.
The purpose of the Meeting is to lie before the Creditors a copy
of the report prepared by the Administrative Receivers under
section 48 of the said Act.
Creditors who wish to vote at the Meeting must submit written
details of the debts claims the Company due them at 47 London
Street, Reading Berkshire RG1 4PS not later than 12:00 noon on
or before March 18, 2004.
LANCASTER FIBRE: HSBC Appoints Joint Administrative Receivers
-------------------------------------------------------------
Name of Companies:
Lancaster Fibre Technology Group Limited
Lancaster Fibre Technology Limited
Reg No 03533982
Reg No 01041103
Previous Names of Company: Lancaster Glass Fibre (Holdings)
Limited and Broomco (1511) Limited
Nature of Business: Development and Manufacture of Speciality
Industrial Fibres for a Wide Range of Industrial Applications
Involving High Temperature, Acoustics and Other Unique
Properties
Trade Classification: Manufacturing-11
Date of Appointment of Joint Administrative Receivers:
February 23, 2004
Name of Person Appointing the Joint Administrative Receivers:
HSBC
Joint Administrative Receivers: PRICEWATERHOUSECOOPERS LLP
Benson House,
33 Wellington Street,
Leeds LS1 4JP
Receivers:
Michael Horrocks
Ian Green
(Office Holder Nos 8026, 9045)
Phone: [44] (113) 289 4000
Fax: [44] (113) 289 4460
Web site:
http://www.pwcglobal.com
LLOYDS TSB: Upbeat about 2003 Performance
-----------------------------------------
2003 Results Performance Highlights
Results
(a) Profit before tax increased by GBP1,730 million, or 66%, to
GBP4,348 million.
(b) Profit attributable to shareholders increased by GBP1,464
million, or 82%, to GBP3,254 million.
(c) Earnings per share increased by 82% to 58.3p.
(d) Post-tax return on average shareholders' equity 38.5%.
(e) Total capital ratio 11.3%, tier 1 capital ratio 9.5%.
(f) Final dividend of 23.5p per share, making a total of 34.2p
for the year (2002: 34.2p).
Results, excluding changes in economic assumptions, investment
variance and profit on sale of businesses
(a) Profit before tax decreased by GBP126 million, or 4% to
GBP3,380 million.
(b) Earnings per share decreased by 6 % to 41.5p.
(c) Economic profit increased by 4% to GBP1,553 million.
(d) Post-tax return on average shareholders' equity 27.4 %.
Key achievements
(a) A new strategic focus on organic growth has been
implemented, and a number of non-core overseas businesses
have been sold.
(b) The Group has improved its market share in many key product
areas, including credit cards, personal loans, bank
savings, and U.K. life and pensions.
(c) Excluding the impact of disposals, customer lending grew by
10% to GBP135 billion and customer deposits increased by 6 %
to GBP116 billion.
(d) The rate of decline in the Group's net interest margin has
slowed.
(e) Strict cost control has been maintained. Excluding the
impact of acquisitions and the customer redress provision,
expenses decreased by 1%.
(f) Asset quality remains strong.
(g) Profit before tax from U.K. Retail Banking and Mortgages,
excluding the impact of the provision for customer redress,
increased by 21%, as a result of 9% growth in income and
flat costs.
(h) New business profitability in Scottish Widows increased by
13%, as a result of market share growth and an improved new
business margin.
(i) In Wholesale and International Banking, positive results are
emerging from the improved co-ordination between our
Corporate and Financial Markets businesses.
(j) Capital ratios significantly improved. Scottish Widows
remains on track to pay a 2004 dividend to Lloyds TSB.
To see financial statements:
http://bankrupt.com/misc/LloydsTSB_2003.htm
LTT ESTATES: Appoints Baker Tilly Liquidator
--------------------------------------------
At an Extraordinary General Meeting of the Members of the LTT
Estates Limited Company held at Baker Tilly, 2 Whitehall Quay,
Leeds LS1 4HG, the subjoined Extraordinary Resolutions to wind
up the Company were passed.
Robert Henry Barker of Baker Tilly, 2 Whitehall Quay, Leeds LS1
4HG and Alec Pillmoor of Baker Tilly, Wilberforce Court, Alfred
Gelder Street, Hull HU1 1YH, are hereby appointed Joint
Liquidators for Company.
CONTACT: BAKER TILLY
2 Whitehall Quay,
Leeds LS1 4HG
Contact:
Robert Henry Baker, Liquidator
Phone: 0113 285 5000
Fax: 0113 285 5001
Web site: http://www.bakertilly.co.uk
BAKER TILLY
Wilberforce Court,
Alfred Gelder Street,
Hull HU1 1YH
Contact:
Alec Pilmore, Liquidator
Phone: 01482 327406
Fax: 01482 326957
Web site: http://www.bakertilly.co.uk
MAPLERING LIMITED: Creditors Meeting Set March 23
-------------------------------------------------
There will be a Creditors Meeting of the Maplering Limited
Company on March 23, 2004 at 11:00 a.m. It will be held at the
Royal Hotel, 1 High Street, Southend-on-Sea, Essex SS1 1JE.
A list of names and addresses of the Company's Creditors may be
inspected at the offices of Valentine & Co, 4 Dancastle Court,
14 Arcadia Avenue, London N3 2HS between 10:00 a.m. and 4:00
p.m. on March 21 and 22, 2004. By Order of the Board.
MINTWOOD LIMITED: Hires O'Sullivan Liquidator
---------------------------------------------
At an Extraordinary General Meeting of the Members of the
Mintwood Limited Company on February 27, 2004 held at 50 The
Terrace, Torquay, Devon TQ1 1DD, the Special Resolution to wind
up the Company was passed.
Jeremiah Anthony O'Sullivan is appointed Liquidator for the
purposes of such winding-up.
NETWORK RAIL: Standard & Poor's Retains MTN Finance Ratings
-----------------------------------------------------------
Standard & Poor's Ratings Services said that its 'AAA' rating on
the GBP10 billion ($18 billion) MTN program issued by U.K.-based
special-purpose entity Network Rail MTN Finance PLC is
unaffected by the announcement by the Office of the Rail
Regulator.
The Office of the Rail Regulator will allow a two-year deferral
of the increase in track access charges announced in his final
conclusions of Dec. 12, 2003. The relevant expenditure by
Network Rail will be funded by additional borrowing. The Office
of the Rail Regulator also allowed a reprofiling of track access
charges and the unconditional grant from the Strategic Rail
Authority (AAA/Stable/A-1+).
CONTACT: STANDARD AND POORS RATING SERVICES
Analyst E-mail Addresses
craig_jamieson@standardandpoors.com
mike_wilkins@standardandpoors.com
InfrastructureEurope@standardandpoors.com
PublicFinanceEurope@standardandpoors.com
OPTIMUM LIMITED: Creditors to Meet March 19
-------------------------------------------
There will be a Creditors Meeting of the Optimum HR Limited on
March 19, 2004 at 10:30 a.m. It will be held at 5 Park Court,
Pyrford Road, West Byfleet, Surrey KT14 6SD.
Creditors wishing to vote at the Meeting (unless attending in
person) must lodge a proxy at 5 Park Court, Pyrford Road, West
Byfleet, Surrey KT14 6S, no later than 12:00 noon on March 18,
2004.
A list of names and addresses of the Company's Creditors may be
inspected, free of charge, at Gibson Hewitt & Co, 5 Park Court,
Pyrford Road, West Byfleet, Surrey KT14 6SD between 10:00 a.m.
and 5:00 p.m. on March 16 and 17, 2004. By Order of the Board.
PICKMONT RESIDENTIAL: Designates Simon Gwinutt Liquidator
---------------------------------------------------------
At an Extraordinary Meeting of the Members of the Pickmont
Residential Limited Company on February 26, 2004, the subjoined
Special Resolutions to wind up the Company were passed.
Simon Gwinnutt of Smith Cooper is hereby appointed Liquidator
for the purposes of winding-up the Company, he is authorized to
pay all classes of Creditors in full and all such other matters
as described in Part I to Schedule 4 Insolvency Act 1986.
Simon Gwinnutt is also authorized to receive in compensation or
part compensation for the transfer or sale of the assets,
shares, policies or other like interests for distribution among
the Members of the Company.
PORTE A PORTE: Creditors to Meet March 16
-----------------------------------------
There will be a Creditors Meeting of the Porte A Porte
(Wholesale) Limited Company on March 16, 2004 at 10:30 a.m. It
will be held at 641 Green Lanes, London N8 0RE.
A list of names and addresses of the Company's Creditors will be
available for inspection, free of charge at 641 Green Lanes,
London N8 0RE on March 12 and 15, 2004.
Creditors who wish to vote at the Meeting must submit a
statement of claim that the Company due them at 641 Green Lanes,
London N8 0RE not later than 12:00 noon on or before March 15,
2004. By Order of the Board.
R J C DAVIS: Assigns Royce Peeling Green Administrator
------------------------------------------------------
Name of Company: R J C Davis (Forestry) Limited
Nature of Business: Forestry
Trade Classification: 2
Date of Appointment: March 3, 2004
Joint Administrative Receiver: ROYCE PEELING GREEN
The Copper Room, Deva Centre,
Trinity Way,
Manchester M3 7BG
Receivers:
R M Withinshaw
Peter Jones
(IP Nos 8014, 4163)
SMG PLC: Returns to Black; Expects Promising Future
---------------------------------------------------
Second half performance signals advertising-led recovery
Highlights
(a) Significant ITV settlement achieved
(b) Successful asset disposals
(c) Balance sheet issues resolved
(d) Advertising market recovery gaining momentum
(e) Dividend maintained
Key Financials
(a) Group Turnover - cont. operations GBP188.2 million (2002:
GBP199.8 million)
Group Turnover - total GBP209.2 million (2002: GBP278.4
million)
(b) Operating Profit* - cont. operations GBP38.6 million (2002:
GBP42.0 million)
Operating Profit** - total GBP40.9 million (2002: GBP53.7
million)
(c) Statutory Profit - before net financing charges GBP44.4
million (2002: GBP28.3 million)
(d) Profit Before Tax*** GBP17.5 million (2002: GBP24.2 million)
(e) Statutory Profit Before Tax GBP0.2 million (2002: GBP16.1
million loss)
(f) Basic Earnings per Share**** 5.0 pence (2002: 5.6 pence)
(g) Dividend 2.5 pence (2002: 2.5 pence)
* Before goodwill amortization of GBP18.6 million (2002: GBP18.5
million) and net exceptional charges of GBP10.9 million (2002:
nil).
** Before goodwill amortization of GBP18.6 million (2002:
GBP19.2 million) and net exceptional charges of 10.9 million
(2002: nil).
*** Before goodwill amortization of GBP18.6 million (2002:
GBP19.2 million) and net exceptional income of GBP1.3 million
(2002: net charges of GBP21.1 million).
**** Before goodwill amortization of GBP18.6 million (2002:
GBP19.2 million) and net exceptional income of GBP4.9 million
(2002: net charges of GBP16.6 million).
Andrew Flanagan, Chief Executive of SMG, said:
"Not only did 2003 appear to mark the end of the advertising
downturn, but it was also an important year for SMG as we
reshaped and refocused the business in preparation for the
upturn. Reaching a settlement with ITV has materially
strengthened our position. The quality and consistency of
bookings for the first four months of 2004 are encouraging and
we are seeing growth in each media sector. With our balance
sheet issues resolved we look forward with confidence to the
year ahead."
CONTACT: SMG PLC
Andrew Flanagan, Chief Executive
Phone: 020 7882 1199
BRUNSWICK GROUP
James Hogan
Phone: 020 7404 5959
Ben Brewerton
Phone: 020 7404 5959
SULLIVAN ENGINEERING: Hires Administrator from Grant Thornton
-------------------------------------------------------------
Name of Company: Sullivan Engineering Limited
Nature of Business: CNC Production Engineer
Trade Classification: 07-Engineering and Allied Industries
Date of Appointment: March 1, 2004
Joint Administrative Receiver: GRANT THORNTON
11-13 Penhill Road,
Cardiff CF11 9UP
Receivers:
Nigel Morrison (IP No 8938)
Richard Michael Hawes
(IP No 8954)
Phone: 029 2023 5591
Fax: 029 2038 3803
Web site:
http://www.grant-thornton.co.uk
T E W LIMITED: Designates Baker Tilly Administrator
---------------------------------------------------
Name of Company: T E W (Construction) Limited
Nature of Business: General Construction and Civil Engineer
Trade Classification: 07
Date of Appointment: March 2, 2004
Joint Administrative Receiver: BAKER TILLY
1st Floor,
46 Clarendon Road, Watford,
Hertfordshire WD17 1JJ
Receivers:
Tracey Elizabeth Callaghan
Mark John Wilson
(IP Nos 008317, 008612)
Phone: 01923 816400
Fax: 01923 253402
Web site:
http://www.bakertilly.co.uk
THE MONOGRAPH: Initial Creditors Meeting Set March 25
-----------------------------------------------------
There will be an initial Creditors Meeting of The Monograph
Company Limited on March 25, 2004 at 11:00 a.m. It will be held
at The Conifers, Filton Road, Hambrook, Bristol BS16 1QG.
The purpose of the Meeting is to consider the Administrator's
proposal under Paragraph 51 of Schedule B1 to the Insolvency Act
1986.
A proxy form should be completed and sent to Houghton Stone, The
Conifers, Filton Road, Hambrook, Bristol BS16 1QG not later than
12:00 noon on or before March 24, 2004.
S H Thornton, is the Administrator for the Company.
TS TECH: Court Hearing Scheduled March 17
-----------------------------------------
Notice is hereby given that a Petition was presented to Her
Majesty's High Court of Justice, Chancery Division on February
27, 2004 for the confirmation of the reduction of share capital
of the TS Tech U.K. Limited Company from GBP20,000,000 to
GBP13,000,000.
And notice is further given that the said Petition is directed
to be heard before the Registrar of the Companies Court at the
Royal Courts of Justice, Strand, London WC2A 2LL on Wednesday
March 17, 2004.
Any Creditor or Shareholder of the Company desiring to oppose
the making of an Order for the Confirmation of the said
reduction of share capital should appear at the time of the
hearing in person or by Counsel for that purpose.
A copy of the said Petition will be furnished to any person
requiring the same by the undermentioned Solicitors on payment
of the Regulated Charge for the same.
CONTACT: LIMITED LIABILITY PARTNERSHIP
10 Upper Bank Street, London E14 5JJ
Contact:
Clifford Chance (Solicitor of the Company)
TZAR LIMITED: Brings in Liquidator from Rothman Pantall & Co.
-------------------------------------------------------------
At an Extraordinary General Meeting of the 1 Tzar Limited
(formerly known as Shop 77 Man) Company on February 20, 2004
held at offices of Rothman Pantall & Co, Clareville House, 26-27
Oxendon Street, London SW1Y 4EP, the subjoined Extraordinary
Resolutions t wind up the Company were passed.
Robert Derek Smailes and Sephen Blandford Ryman, of Rothman
Pantall & Co, Clareville House, 26-27 Oxendon Street, London
SW1Y 4EP, are appointed Joint Liquidators of the Company for the
purposes of such winding-up. Any act required to be taken by the
Joint Liquidators can be undertaken by either one of them acting
independently.
CONTACT: ROTHMAN PANTALL & CO
Clareville House,
26-27 Oxendon Street,
London SW1Y 4EP
Contact:
Robert Derek Smailes, Liquidator
Sephen Balndford Ryman, Liquidator
WEMBLEY PLC: BLB Mulls Offer, Conducts Due Diligence
----------------------------------------------------
The Board of Wembley notes the announcement made earlier on
Wednesday by BLB regarding BLB's agreement to acquire shares in
Wembley and confirms that BLB has approached the Board
indicating that it wishes to examine the feasibility of making a
recommended offer for Wembley. The Board notes that 'BLB's
decision on whether or not to make an offer will depend on,
among other things, the outcome of a due diligence evaluation of
Wembley. Accordingly, there can be no certainty that BLB will
make an offer for Wembley'.
A further announcement will be made ahead of the Wembley
shareholder meetings scheduled for April 8, 2004, convened to
approve, inter alia, the scheme of arrangement to implement the
offer from MGM MIRAGE.
CONTACT: COLLEGE HILL
Matthew Smallwood
Peter Ogden
Phone: 020 7457 2020
*********
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
Liv Arcipe, Editors.
Copyright 2004. All rights reserved. ISSN 1529-2754.
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