/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/040325.mbx T R O U B L E D C O M P A N Y R E P O R T E R E U R O P E Thursday, March 25, 2004, Vol. 5, No. 60 Headlines F R A N C E RHODIA SA: Local Inquiry into Financial Reporting Continues G E R M A N Y DRESDNER BANK: Fitch Affirms Ratings Despite EUR2 Billion Loss SPAR HANDELS: Expects to Remain in Red this Year WEDECO AG: 2003 Revenue, Earnings Down Year-on-year I R E L A N D ELAN CORPORATION: Plans to Introduce Sclerosis Drug in Europe I T A L Y ALITALIA SPA: Competitors Lobby Against Possible State Aid PARMALAT FINANZIARIA: Bondi Sets Deadline for Proofs of Claim L U X E M B O U R G MILLICOM INTERNATIONAL: To Redeem US$61 Mln Senior PIK Notes N E T H E R L A N D S KONINKLIJKE AHOLD: Lawyer, Bankruptcy Expert Named to U.S. Unit P O L A N D DAEWOO-FSO: MG Rover Remains in Talks with Government GDYNIA SHIPYARD: Govt Withholds PLN80 Million Capital Boost R U S S I A CHEMISTRY COMPLEX-4: Declared Insolvent EXPRESS: Falls into Bankruptcy KRASNOURALSK CLOTHING: Auction of Properties Set April 19 LIQUOR-VODKA: Under Bankruptcy Supervision Procedure SEVERSTAL: Proposed Loan Participation Notes Rated 'B+' S W I T Z E R L A N D SWISS INTERNATIONAL: Full-year Net Loss Down to CHF687 Million SWISS INTERNATIONAL: Moves to Strengthen Liquidity SWISS INTERNATIONAL: To Retain Seven Directors Until Next Year SWISS INTERNATIONAL: Flying 70 Destinations this Summer U N I T E D K I N G D O M 1ST CALL: Liquidation Hearing Set March 29 ABE LIMITED: Winding up Hearing at Leeds Court Set March 31 A G KEMBLE: Winding up Resolution Passed ARNOLD WHITE: Appoints Liquidator BALTIC FOREST: In Administrative Receivership BOXFOLDIA LIMITED: Hires Liquidators from Baker Tilly BRICKS RESTAURANT: Hires Liquidator from BDO Stoy Hayward CARDIO THEATER: Hires Liquidators from Baker Tilly CAT GLOBAL: Voluntary Winding up Resolution Passed DATAPOINT LIMITED: Hires Receivers from Kingston Smith DIAGNOSTICS LIMITED: Appoints Numerica Administrator DREAMROLE LIMITED: Shareholders Approve Voluntary Winding up EDINBURGH CRYSTAL: To Close Factory, Move Visitor Center ENIGMATA LIMITED: Liquidation Hearing Set March 30 EQUITABLE LIFE: Policyholders Demand New Ombudsman Inquiry EUROTRAMA LIMITED: Hires Liquidator from ThorntonRones FREEHOLD GROUND: Shareholders Okay Voluntary Winding up GRAINTIME LIMITED: Names Robert Valentine Liquidator HOLLINGER INC.: Barclay Brothers Pursue Bid for Telegraph MORRISON CHEMICALS: HSBC Appoints Receiver to Three Companies MYTRAVEL GROUP: Discloses Board Changes, Appointment of Auditors MYTRAVEL GROUP: Expects U.K. Biz Turnaround to Take Time NTL INC.: Credit Rating Raised to 'B+'; Outlook Positive OPEN HEALTH: Appoints Tenon Recovery Administrator PACE DIGITAL: Close Invoice Hires Smith & Williamson Receiver PHILLIPS DE PURY: President Leaves to Pursue Interest in Art ROLLED GOLD: Designates Tenon Recovery Administrator TALENTBRAND LIMITED: Winding up Resolution Passed TEXTSORT LIMITED: Hires Liquidator from Ritsons WYRERIVER LIMITED: Names Liquidator ********* =========== F R A N C E =========== RHODIA SA: Local Inquiry into Financial Reporting Continues ----------------------------------------------------------- Months after French regulators warned the company of an inquiry into its financial reporting, Rhodia S.A. is still not facing a formal complaint, Bloomberg News says. In a U.S. regulatory filing, the French specialty chemical maker said the inquiry was started in October. The Commission des Operations de Bourse and Autorite des Marches Financiers are conducting the probe. Rhodia posted EUR1.35 billion in losses in 2003. The company blamed the rising costs of raw materials, a weaker U.S. dollar against the euro and slumping demand for products such as drug ingredients. It recently sold its Food Ingredients unit to Danisco for EUR320 million in cash. It is further planning to raise EUR1 billion (US$1.23 billion) by selling new shares and bonds to steady its financial footing. CONTACTS: Investor Relations for Rhodia S.A. Marie-Christine Aulagnon: Phone: +33 1 55 38 43 01 Fabrizio Olivares: Phone: +33 1 55 38 41 26 ============= G E R M A N Y ============= DRESDNER BANK: Fitch Affirms Ratings Despite EUR2 Billion Loss -------------------------------------------------------------- Fitch Ratings affirmed Dresdner Bank's 'A-' Long-term, 'F1' Short-term and '1' Support ratings. The 'D' Individual rating has also been affirmed. The Long-term rating Outlook remains Stable. The affirmation of the Individual rating follows the announcement by Dresdner Bank of a EUR2 billion loss for 2003. The pre-tax loss was EUR2.9 billion. Bottom line results include EUR1 billion net write-downs on the bank's investment portfolio, resulting mainly from management's decision to recognize the unrealized losses on its equity investments through the profit and loss account. In addition, results were burdened by EUR840 million restructuring charges. Dresdner Bank was still loss-making at the operating level, but the operating loss (EUR778 million by Fitch calculations) was less than a third of the 2002 amount. The bank's restructuring unit again affected results, but loan-loss provisions were halved on the substantial 2002 figure, down to EUR1 billion. With a 17% reduction in expenses, Dresdner Bank has proven that it is able to adjust its cost base. However, Fitch remains concerned about the bank's ability to generate sufficient earnings to restore profitability in the short term. Future results are also reliant on the developments at its restructuring unit, which remain a significant burden for the bank. Fitch acknowledges the various efforts undertaken by management to restructure, cut staff, sell non-core businesses and free its capitalization from unrealized losses. Despite the reported loss, the bank's Tier 1 ratio improved to 6.6% at end-2003 (from 6% at end-2002), mainly due to strong reduction in risk-weighted assets. Fitch expects Dresdner Bank to return to operating profit in 2004, although ROE is likely to remain low. Dresdner Bank's Long-term, Short-term and Support ratings are based on potential support from Allianz, but the Long-term rating also takes into account Fitch's view that the bank would be considered systemically important by the German authorities, and therefore support from the state would be forthcoming if the bank were to run into severe difficulties. Fitch also affirms the Long-term rating for Dresdner Bank's subordinated debt at 'BBB+' and the ratings for dated silent participation certificates issued through Dresdner Funding Trusts I, II, III and IV at 'BBB'. CONTACT: FITCH RATINGS Olivia Perney Guillot, Paris Phone: +33 1 44 29 91 80 Bridget Gandy, London Phone: +44 207 417 4346 Media Relations: Campbell McIlroy, London Phone: +44 20 7417 4327 SPAR HANDELS: Expects to Remain in Red this Year ------------------------------------------------ German grocery chain, SPAR Handels AG, might turn in another annual loss, Chairman Fritz Ammann warned, according to just- food.com. The company reported an operating loss of EUR64.5 million (US$79.4 million) for the first half of 2003. A year earlier, the company made a loss of EUR60.9 million. The company is currently implementing a restructuring program that foresees divestments of many loss-making stores by 2005 and a return to profit by then. SPAR operates 2,500 SPAR and SuperSpar supermarkets in Europe. In a separate report, Agence France-Presse said there are rumors the company's French owner, ITM Intermarche, is considering a sale of its stake in SPAR. CONTACT: SPAR Handels- und Aktiengesellschaft Osterbrooksweg 35-45 D-22867 Schenefeld Phone: +49 (0) 40 / 83 94 - 0 E-mail: info@spar.de Homepage: http://www.spar.de WEDECO AG: 2003 Revenue, Earnings Down Year-on-year --------------------------------------------------- Wedeco AG recorded a decline in revenue and earnings in the 2003 financial year. The targeted goals were not met. Apart from the general weak global economy, the company has identified two main reasons responsible for this development: Negotiations on strategic mergers with a competitor and with ITT Industries generated additional, non-recurring costs of EUR3.5 million. The company fell considerably short of planned figures for its North American activities. This is largely due to the relocation of the two U.S. American WEDECO companies to a new joint location. Consolidated revenue amounted to EUR125.9 million in the 2003 financial year. This corresponds to a 12.5% decline against 2002 (EUR143.9 million). At EUR72.1 million, revenue in the UV division was slightly above the previous year's value of EUR70.9 million. At EUR53.8 million, the Ozone division did not match the revenue level of the previous year (EUR63.5 million). EBITDA amounted to -EUR0.7 million (2002: EUR20.9 million) before goodwill amortization of EUR3.7 million (2002: EUR3.8 million) and depreciation of EUR4.0 million on non-current assets (2002: EUR4.0 million). EBIT amounted to EUR-8.2 million, after EUR13.3 million in the previous year. The consolidated net loss of the year was -EUR8.2 million, after a consolidated net income of EUR8.4 million in 2002. Basic earnings per share amounted to -EUR0.74 compared to EUR0.77 in the previous year. At the end of December, the WEDECO Group's order backlog totaled EUR20.7 million for UV and EUR35.7 million for Ozone, 19.7% higher year-on-year, forming the basis for a successful 2004 financial year. Because ITT Industries owns more than 90% of WEDECO shares the Management Board of Deutsche Borse AG decided to no longer list WEDECO in the TecDAX and NEMAX 50 beginning with March 23, 2004. Furthermore, Wedeco AG has applied to Deutsche Borse AG for a transfer from the Prime Standard to the General Standard. The Annual Report will be available on the Internet (http://www.wedecoag.com)from March 23, 2004 under the section Investors/Downloads. The Management Board ============= I R E L A N D ============= ELAN CORPORATION: Plans to Introduce Sclerosis Drug in Europe ------------------------------------------------------------- Biogen Idec and Elan Corporation, plc announced on Tuesday they intend to submit to the European Agency for the Evaluation of Medicinal Products an application for approval of Antegren(R) (natalizumab) as a treatment for multiple sclerosis. The companies expect to submit the filing in the summer of 2004. The decision to file was made after discussion with European regulatory officials, based on one-year data from the ongoing Phase III trials in multiple sclerosis. The companies are committed to completing these two-year trials. To protect the integrity of these trials, the companies are not disclosing the one-year data at this time. Biogen Idec and Elan are collaborating equally on the development of natalizumab in multiple sclerosis, Crohn's disease, and rheumatoid arthritis. In February, the two companies announced they expect to submit a Biologics License Application for natalizumab in multiple sclerosis with the U.S. Food and Drug Administration mid-year 2004. About Antegren (natalizumab) Natalizumab, a humanized monoclonal antibody, is the first alpha-4 antagonist in the new SAM (selective adhesion molecule) inhibitor class. The drug was designed to selectively inhibit immune cells from leaving the bloodstream and to prevent these cells from migrating into chronically inflamed tissue as occurs in a variety of inflammatory diseases. To date, approximately 2,800 patients have received natalizumab in clinical studies. In previous clinical trials, the following adverse events occurred more commonly with natalizumab when compared to placebo: headache, nausea, abdominal pain, infection, urinary tract infection, pharyngitis and rash. Serious adverse events have included infrequent hypersensitivity-like reactions. About Biogen Idec Biogen Idec creates new standards of care in oncology and immunology. As a global leader in the development, manufacturing, and commercialization of novel therapies, Biogen Idec transforms scientific discoveries into advances in human healthcare. For product labeling, press releases and additional information about the company, please visit http://www.biogenidec.com. About Elan Corporation, plc Elan Corporation, plc is a neuroscience-based biotechnology company that is focused on discovering, developing, manufacturing and marketing advanced therapies in neurology, autoimmune diseases, and severe pain. Elan (NYSE: ELN) shares trade on the New York, London and Dublin Stock Exchanges. For additional information about the company, please visit http://www.elan.com. CONTACTS: ELAN CORPORATION Media Contacts: Anita Kawatra Phone: 212-407-5755 Or 800-252-3526 BIOGEN IDEC Amy Brockelman Phone: 617-914-6524 Investor Contacts: Emer Reynolds Phone: + 353 1 709 4000 Or 800-252-3526 Biogen Idec Elizabeth Woo Phone: 617-679-2812 ========= I T A L Y ========= ALITALIA SPA: Competitors Lobby Against Possible State Aid ---------------------------------------------------------- Rival airlines are stepping up efforts to prevent Italy from handing out more aids to ailing national airline, Alitalia S.p.A. Bloomberg News, citing the Financial Times, said British Airways Plc Chief Executive Rod Eddington has written to U.K. Transport Secretary Alistair Darling, seeking to block a future state aid. Mr. Eddington anticipates additional state funding for Alitalia after the company said it might incur operating loss of about EUR400 million (US$493 million) for 2003. Mr. Eddington wants to ensure the 62% state-owned airline does not get help to protect British Airways and other U.K. carriers. Alitalia affects the two due to Alitalia's alliance with KLM Royal Dutch Airlines N.V. and Air France S.A. Further, a group of European carriers, including British Airways and Deutsche Lufthansa AG, will also approach European Transport Commissioner Loyola de Palacio to pre-empt the payment of government aid to Alitalia, the report said. PARMALAT FINANZIARIA: Bondi Sets Deadline for Proofs of Claim ------------------------------------------------------------- Special Parmalat Commissioner, Enrico Bondi, has asked the Italian dairy group's creditors to present claims to the Parma Court to get judgment on their credit, according to Agencia Giornalistica Italia. He set several deadlines for presenting the claims between April 10 and June 10. The dates depend on the company receiving the credit. For Parmalat, the deadline is April 30; Eurolat and Lactis, June 5; Parmatour, May 15. Bondholders may present claims "by conferring the special mandate to one's own bank or directly to the company." CONTACT: PARMALAT FINANZIARIA Via Oreste Grassi, 26 PR 43044 COLLECCHIO Phone: 39-05218081 Fax: 39-0521808327 Contact: Enrico Bondi, Administrator =================== L U X E M B O U R G =================== MILLICOM INTERNATIONAL: To Redeem US$61 Mln Senior PIK Notes ------------------------------------------------------------ Millicom International Cellular S.A. (Nasdaq Stock Market: MICC), the global telecommunications investor, announces that it has officially requested the Trustee of its 2% Senior Convertible PIK Notes Due 2006 to call the entire outstanding amount of 2% Notes (in an aggregate principal amount of approximately US$61 million) for redemption in cash on April 26, 2004 in accordance with the terms of the Indenture covering the 2% Notes. The Trustee will notify the holders of the 2% Notes in accordance with the terms of the Indenture. Millicom International Cellular S.A., whose long-term corporate credit is rated 'B+' by Standard & Poor's, is a global telecommunications investor with cellular operations in Asia, Latin America and Africa. It currently has a total of 16 cellular operations and licenses in 15 countries. The Group's cellular operations have a combined population under license of approximately 382 million people. In addition, Millicom International Cellular provides high-speed wireless data services in five countries. CONTACT: MILLICOM INTERNATIONAL CELLULAR S.A. Marc Beuls, President and Chief Executive Officer, Luxembourg Phone: +352 27 759 327 Andrew Best, Investor Relations Shared Value Ltd, London Phone: +44 20 7321 5022 Web site at: http://www.millicom.com ===================== N E T H E R L A N D S ===================== KONINKLIJKE AHOLD: Lawyer, Bankruptcy Expert Named to U.S. Unit --------------------------------------------------------------- A restructuring expert and a lawyer have been appointed to Royal Ahold's U.S. Foodservice unit, people close to the two said, according to the Financial Times. Garry Brown, a specialist in restructuring troubled businesses, was put in charge of procurement, while Robert Aiken, a lawyer, was given a key marketing job. They are expected to assume positions previously occupied by Tim Lee and Mark Kaiser, the former executives in charge of purchasing and marketing, the report said. The two were sacked after the discovery of US$856 million (EUR692 million) in profit overstatement at the U.S. distribution unit. =========== P O L A N D =========== DAEWOO-FSO: MG Rover Remains in Talks with Government ----------------------------------------------------- MG Rover downplayed reports it is planning to assemble 75 model range vehicles at Daewoo-FSO factory in Poland. The Polish Business Journal and the Spanish Web site http://www.Elmundomotor.compreviously said that MG Rover presented a GBP700 million investment plan to the Polish government on March 18. The deal accordingly may lead to the transfer of Rover 75 assembly lines from the U.K. An MG spokeswoman refused to comment on the report while negotiations over a potential acquisition of the Daewoo-FSO car plant by the company are still continuing, Auto Industry News said. The plan to take control of Daewoo-FSO is thought to involve CWC Capital Management, a U.S. venture capital firm. "CWC Capital Management are considering participation in the project as a co-investor in Zeran," said one of the negotiators, according to Warsaw Business Journal. GDYNIA SHIPYARD: Govt Withholds PLN80 Million Capital Boost ----------------------------------------------------------- The State Treasury said it will not give Gdynia Shipyard additional capital unless the company's restructuring plan gets approval from the Industrial Development Agency and the Competition and Consumer Protection Office, according to Warsaw Business Journal. Gdynia Shipyard amended its restructuring program after representatives of the Industrial Development Agency demanded financial forecasts for the next years. They also want to be clarified with some questionable details in the restructuring plan. The company has reportedly requested an extra PLN20 million loan and applied conversion and reduction of tax liabilities of over PLN200 million when it submitted revisions to its reorganization plans to the Industrial Development Agency. In recent developments, the government said it would hold the planned PLN80 million capital increases for the shipyard pending approval of the restructuring plan. Separately, Gdynia Shipyard is further hoping to secure a PLN1.3 billion state guarantee to back the construction of ships. =========== R U S S I A =========== CHEMISTRY COMPLEX-4: Declared Insolvent --------------------------------------- The Arbitration Court of Tomsk region declared OJSC Tomsk Chemistry Complex-4 insolvent and introduced bankruptcy proceedings on the corporation. The case is docketed #A67- 131/01. Mr. Sergey Mikhaylenko has been appointed insolvency manager. Creditors have until May 20, 2004 to submit their proofs of claim to the insolvency manager at: 634067, Russia, Tomsk region, Tomsk area, Severny Promuzel, Ploschadka TNCC. CONTACT: TOMSK CHEMISTRY COMPLEX-4 634067, Russia, Tomsk region, Tomsk area, Severny Promuzel, Ploschadka TNCC EXPRESS: Falls into Bankruptcy ------------------------------ The Arbitration Court of Tver region declared LLC Industrial Enterprise Express insolvent and introduced bankruptcy proceedings on the company. The case is docketed as A66-5446- 03. Mr. B. Dubov, a member of TP Self-regulated organization of arbitral managers MZPU (125171, Moscow, Leningradskoye shosse 16, build 3), has been appointed insolvency manager. Creditors have until May 20, 2004 to submit their proofs of claim to the insolvency manager at: 170006, Tver, S. Perovskoy str.3, 46. CONTACT: EXPRESS 172850, Russia, Tver region, Toropez, Chistovsky trakt 4 Mr. B. Dubov, insolvency manager 170006, Tver, S. Perovskoy str.3, 46 KRASNOURALSK CLOTHING: Auction of Properties Set April 19 --------------------------------------------------------- The bidding organizer and insolvency manager of unitary enterprise, Krasnouralsk Clothing Factory, set the public auction of the company's properties on April 19, 2004 at 12:00 noon (local time). Preliminary examination with auction conditions, document list for participants, description of lots and reception of biddings are done from 11:00 a.m. until 3:00 p.m. on the working days until April 16, 2004 under the address: Russia, Krasnouralsk, K. Marks str.33. Phone: (3435) 341741. Reception of biddings and documents for participation in the auction will be done until April 16, 2004. The bidding organizer will launch a partial sale of the company's assets on April 19, 2004 at 12:00 noon. CONTACT: KRASNOURALSK CLOTHING FACTORY Russia, Krasnouralsk, Doprisyvnikov str.3 The bidding organizer, Insolvency manager, Russia, Krasnouralsk, K. Marks str.33. Phone: (3435) 341741 LIQUOR-VODKA: Under Bankruptcy Supervision Procedure ---------------------------------------------------- The Arbitration Court of Tver region commenced bankruptcy supervision procedure on LLC Liquor-Vodka Distillery. The case is docketed as A66-10133-03. Mr. N. Petrov, a member of TP Self-regulated organization of arbitral managers MZPU (125171, Moscow, Leningradskoye shosse 16, build 3), has been appointed temporary insolvency manager. Creditors have until April 20, 2004 to submit their proofs of claim to: (a) Debtor: 172060, Russia, Torzhok, Kalininskoye shosse 10A (b) Temporary insolvency manager: 170011, Tver, 1-za liniey OzhD str.2, Phone: 423867 (c) Arbitration Court of Tver region: Tver, Sovetskaya str.23B, off. 5. A hearing will take place on May 25, 2004 at 10:30 a.m. CONTACT: LIQUOR-VODKA DISTILLERY 172060, Russia, Torzhok, Kalininskoye shosse 10A Mr. N. Petrov, temporary insolvency manager 170011, Tver, 1-za liniey OzhD str.2 Phone: 423867 Arbitration Court of Tver region: Tver, Sovetskaya str.23B, off.5 SEVERSTAL: Proposed Loan Participation Notes Rated 'B+' ------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' senior unsecured debt rating to the proposed loan participation notes to be issued by Citigroup Global Markets Deutschland AG, for the sole purpose of financing a loan to the Russian steel company OAO Severstal (B+/Negative/--). The exact maturity and amount will be determined during the placement, but the company's management expects the amount to be approximately $300 million, and the term approximately 10 years. It is expected that the proceeds will be used for general corporate purposes, refinancing of existing debt, or acquisition opportunities. "The issue rating mirrors the corporate credit rating on Severstal, because the noteholders will rely solely and exclusively on the credit standing of the company," said Standard & Poor's credit analyst Elena Anankina. The corporate credit rating on Severstal reflects the company's position as a volume manufacturer in the difficult global steel industry; the uncertainties caused by the company's aggressive investment strategy; and by the complex structure and concentrated shareholding of its parent, Severstal group. The negative outlook on Severstal reflects the company's high appetite for mergers and acquisitions, which have historically consumed most free cash flow. The ratings are supported, however, by Severstal's low costs; the moderate growth of the domestic steel market; and a currently strong financial profile with moderate net debt, high profitability, and free cash flow generation. At March 1, 2004, the company had total debt of $1.07 billion versus $835 million of cash; the company had a net cash position at the end of 2003, but shifted to net debt following the acquisition of the assets of the bankrupt U.S.-based steelmaker Rouge Industries Inc. for $265 million in cash and $55 million of assumed liabilities in January 2004. "Although the notes are unsecured, Standard & Poor's does not apply any notching in Russia," said Ms. Anankina. "This is because the country's weak and volatile legal and judicial system implies uncertainties regarding recovery and relative standing of various creditor groups in case of default or bankruptcy. Moreover, Severstal's secured debt is relatively moderate compared with its total assets." The covenants are not very restrictive compared with other Russian companies. Even after the Rouge acquisition, Severstal has plenty of room under the financial covenant, which limits its net debt at 75% of equity. Standard & Poor's estimates that following the Rouge acquisition; this ratio has increased, from 5% at June 30, 2003, but remains well below the limit. The covenants also include negative pledge, cross default with material subsidiaries, and material adverse effect (including material adverse effect caused by mergers and acquisitions) clauses. Standard & Poor's will continue to monitor Severstal's financial policy in areas such as cost management, debt, and capital expenditures, distributions to shareholders, and mergers and acquisitions. The impact of any future acquisitions on the company's liquidity, debt burden, and business profile will be carefully evaluated and may trigger a reassessment of the rating. CONTACT: STANDARD AND POORS RATINGS SERVICES Analyst E-mail Addresses elena_anankina@standardandpoors.com tommy_trask@standardandpoors.com olivier_beroud@standardandpoors.com ===================== S W I T Z E R L A N D ===================== SWISS INTERNATIONAL: Full-year Net Loss Down to CHF687 Million -------------------------------------------------------------- Swiss International Air Lines Ltd. generated total consolidated income from operating activities of CHF4.126 million in 2003 and posted an operating result or EBIT before restructuring costs of -CHF498 million for the year, a substantial improvement on its prior-year equivalent (-CHF909 million). The full positive impact of the restructuring measures taken will only be felt, however, in the course of 2004 and 2005. Provisions of CHF205 million were effected in the third quarter of 2003 to cover restructuring costs. The net loss for 2003 after interest and taxes amounted to CHF687 million, compared to a prior-year net loss of CHF980 million. Through active cash management liquid funds totaled CHF503 million on December 31, 2003, significantly above original projections. The Group's strategic realignment is proceeding according to plan. It is based on three cornerstones: (a) A sustainably profitable route network, with a corresponding downsizing of the aircraft fleet, (b) A significant reduction in the cost structure, in terms of both flight operations and administration, and (c) Swiss in Europe, Swiss' response to changing consumer behavior in Europe and increasing competition from low-cost European carriers. Provisions of CHF205 million were effected in the third quarter of 2003 to finance the associated corporate restructuring. These provisions are intended to cover the costs of severance benefit packages, early retirements, the closure of a number of offices outside Switzerland and the aircraft fleet reduction. Operating result (EBIT) of -CHF498 million Swiss reported an EBIT before restructuring costs of -CHF498 million for 2003 as a whole. The result represents a 45.2% year-on-year reduction in operating losses. EBIT before restructuring costs for the fourth quarter of 2003 amounted to -CHF90 million, somewhat below the -CHF62 million of the traditionally stronger third quarter. The financial result reflects the positive effect of a weaker U.S. dollar. After the financial result, income taxes and Group-related items, Swiss recorded a net loss after restructuring costs of CHF687 million for the year. This compares to a prior-year net loss of CHF980 million. Liquidity of CHF503 million Active cash management is playing a key role in Swiss' turnaround. Liquidity-improving measures implemented in the course of 2003 are having a positive effect. The consolidated balance sheet at December 31, 2003 showed liquid funds (cash and cash equivalents, fixed-term deposits and marketable securities) of CHF503 million. The actions taken helped limit the net outflow of liquid funds during the fourth quarter to CHF152 million, despite the negative effect of restructuring costs and the delivery of five new Airbus A340s. Within the overall framework of its imminent membership of one world, Swiss entered into a strategic alliance with British Airways. In addition to commercial considerations, the terms of the alliance included British Airways' provision of a CHF50 million financial guarantee. This guarantee permitted the conclusion of a credit agreement for this amount with Barclays Bank plc on March 12, 2004. Swiss drew the full credit amount on March 16, 2004. Independently of liquidity trends in the light of business operations, Swiss is striving to create a liquidity buffer to cushion the impact of any unforeseen events. To this end, the company has been involved in intensive negotiations for several months with the major Swiss banks and international financial institutions abroad. As the negotiations also involve the refinancing of part of the Swiss aircraft fleet (these assets will serve as collateral on the loan amount), the discussions are extremely complex and are taking more time than was originally envisaged. With the company's liquidity developing better than expected, the loan from Barclays Bank already in place, the summer months with their stronger revenue flows coming up and substantial cost reductions effected, the time pressure on concluding these negotiations has been significantly reduced compared to when the restructuring program was launched. According to current planning the liquidity level is expected to stay above CHF250 million, even at its lowest point in the second quarter of 2004, with expectations of a further increase thereafter. Shareholders' equity Shareholders' equity stood at CHF1,022 million after incorporation of the net loss for 2003, giving an equity ratio at December 31, 2003 of 26.4%. The Ordinary General Meeting of May 6, 2003 voted to reduce the nominal value of SWISS shares from CHF50 to CHF32 per share. Share capital decreased accordingly by CHF946 million, from CHF2 627 million to CHF1,681 million. The share premium was simultaneously reduced by CHF338 million, and the loss brought forward was reduced by the same amount. Share capital was increased to CHF1,685 million in the second half of 2003 through the issue of a small number of conditional shares. The value of the aircraft fleet amounted to CHF2,247 million at December 31, 2003, CHF181 million more than its prior-year equivalent. The increase was due to the delivery of seven new Airbus A340s in the course of the year. These acquisitions were offset by the sale of a number of surplus aircraft. The value of property, plant and equipment stood at CHF246 million. In the fourth quarter total depreciation amounted to CHF49 million due to special depreciations on buildings in Basel, Zurich and Geneva, which in part are no longer used. Due to investments capitalized in the course of 2003, the year-end figure for 2003 only shows a decline of CHF20 million on the prior-year figure. The ratio of fixed to total assets at December 31, 2003 was 70.4% (compared to 54.9% for the previous year). Load factor An extremely turbulent and recessive market environment had an industry wide impact on traffic volume and load factors in the first half of 2003. While the market is now recovering from its various crises, these events still left their mark on the year's average traffic and load factor results. Swiss carried a total of 10.66 million passengers in 2003 and achieved an average seat load factor of 72.4%, a year-on-year increase of 1.4 percentage points. Fourth-quarter load factor showed an above-average year-on-year increase: the 75.0% achieved was some 4.2 percentage points higher than the prior- year period. The launch of the new Swiss in Europe business concept at the end of August 2003 and the adjustments to the route network, which came into effect with the cutover to the 2003/04 winter schedules on October 26, clearly had a positive effect here. Revenue With a more-than-hesitant economic recovery in Europe and the dampening impact on demand of the terrorist threat and other international crises, average revenues per passenger remained under pressure throughout the airline industry. Swiss is impacted by this trend along with the rest of the airline industry. The most important figure, however, the revenue per available seat-kilometer (RASK), determined by the seat-load factor and the average revenue per passenger transported, shows a positive trend, both on Swiss European and intercontinental networks. On the intercontinental routes the RASK compared to its prior-year levels improved from -10% for the second quarter to a -4% for the third quarter and a -2% for the fourth quarter. On the European network the RASK not only showed a positive trend, but actually improved in absolute terms on its prior-year levels. After a negative start posting a -2% for the second quarter, the third quarter showed a plus of 2%, followed by a plus of 9% in the fourth quarter. First quarter figures cannot be compared, since SWISS only started operating intercontinental flights in the second quarter of 2002. The encouraging development can be ascribed to the resizing of the route network and the launch of the new Swiss in Europe concept, whose combined impact has both increased load factors and raised RASK yields. A clear focus on the core business As a Group, Swiss is clearly focused on its core business of flight operations, generating 95.9% of its 2003 total consolidated operating income of CHF4.126 million from its scheduled services, charter and cargo activities. Passenger revenue from scheduled services made the largest contribution of CHF3.326 million to total operating income. Swiss WorldCargo generated revenue of CHF498 million from its airfreight operations. These figures are not comparable with the 2002 figures, however, because SWISS did not operate intercontinental flights before the second quarter of 2002. Commercial responsibility for the long-haul business remained with the former Swissair for the first quarter of 2002. Charter operations contributed CHF133 million to overall income results. The consolidated operating income of CHF4.126 million also includes, as it did in 2002, CHF50 million in other revenues from catering, ground handling and technical services and from duty-free and marketing income. A further CHF119 million was generated from other activities (such as call center services) and exceptional sources (such as profits realized on fixed asset disposals). Competitive costs The restructuring at Swiss required a clear reduction in expenditure to create competitive cost levels on both the flight operations and the administrative fronts. The desired decrease in unit costs, measured in cost per available seat-kilometer (CASK), began to be felt from November 2003 onwards, when the workforce reduction started to take effect, the new route network had been adopted with the cutover to the 2003/04 winter schedules and the first new supplier contracts had been concluded. The full impact of these measures will only be felt, however, in the course of 2004 and 2005. The cost of materials, which includes the cost of fuel purchases, technical maintenance and in-flight catering, amounted to CHF1.262 million. Improvements to business processes and the renegotiation of supplier contracts generated savings on the technical maintenance front. A new cost-saving form of partnership was also concluded with the suppliers of in- flight catering services. The cost of services totaled CHF1.401 million for 2003. The various cost items here showed differing trends. Some items saw their costs reduced in the wake of the resized flight operations, greater use of new distribution channels (especially the internet) or renegotiated supply contracts. Personnel expenses amounted to CHF958 million for the year. This figure only reflects the workforce reductions affected in connection with the corporate resizing to a limited degree: the impact of such actions is only fully felt once notice periods have expired and severance benefit obligations have been fulfilled. A large proportion of these obligations only ceased during the fourth quarter of 2003. The loss on the disposal of fixed and intangible assets derived mainly from exchange-rate losses on the reimbursement of an advance payment (in U.S. dollars) for Embraer regional jets, which was effected after SWISS reduced its original order by 30 aircraft in the course of the year. To see full copy of financial results: http://bankrupt.com/misc/SwissIntl_2003.pdf SWISS INTERNATIONAL: Moves to Strengthen Liquidity -------------------------------------------------- Swiss International Air Lines unveiled the foundation for a solid future at the Annual Results Press Conference. Swiss reported a better than expected financial position thanks to progress in restructuring, the gradual recovery in the markets it serves, and careful cash management. The operating loss for 2003 mounted to CHF498 million, a sharp improvement over the CHF909 million losses reported for the previous year. Liquid assets of CHF503 million at the end of 2003 also exceeded expectations. Detailed figures for the 2003 business year are presented in the separate media release about financial results. Liquidity of CHF503 million Active cash management is playing a key role in Swiss' turnaround. Liquidity-improving measures implemented in the course of 2003 are having a positive effect. The consolidated balance sheet at December 31, 2003 showed liquid funds (cash and cash equivalents, fixed-term deposits and marketable securities) of CHF503 million. The actions taken helped limit the net outflow of liquid funds during the fourth quarter to CHF152 million, despite the negative effect of restructuring costs and the delivery of five new Airbus A340s. Within the overall framework of its imminent membership of one world, Swiss entered into a strategic alliance with British Airways. In addition to commercial considerations, the terms of the alliance included British Airways' provision of a CHF50 million financial guarantee. This guarantee permitted the conclusion of a credit agreement for this amount with Barclays Bank plc on March 12, 2004. Swiss drew the full credit amount on March 16, 2004. Independently of liquidity trends in the light of business operations, SWISS is striving to create a liquidity buffer to cushion the impact of any unforeseen events. To this end, the company has been involved in intensive negotiations for several months with the major Swiss banks and international financial institutions abroad. As the negotiations also involve the refinancing of part of the Swiss aircraft fleet (these assets will serve as collateral on the loan amount), the discussions are extremely complex and are taking more time than was originally envisaged. With the company's liquidity developing better than expected, the loan from Barclays Bank already in place, the summer months with their stronger revenue flows coming up and substantial cost reductions effected, the time pressure on concluding these negotiations has been significantly reduced, compared to the time of launch of the restructuring program. According to current planning the liquidity level is expected to stay above CHF250 million, even at its lowest point in the second quarter of 2004, with expectations of a further increase thereafter. Restructuring is 60% complete In the middle of 2003 Swiss decided on a new direction for the company. Today's airline is smaller, more efficient and more dynamic. The company was able to initiate the turnaround in less than a year with good prospects of success. At this point some 60% of all the measures intended have been implemented. Swiss expects to push ahead with the final third of the possible improvements. The full impact of these measures will only become apparent next year because of restructuring costs and the longer time factor of the processes involved. Route network capacity was reduced by 21% and the fleet downsized from 111 to 83 aircraft (2004 summer timetable: 82 aircraft incl. 3 Charter). The streamlining of the route network and further measures are taking effect. Capacity utilization on Swiss aircraft in December 2003, measured in terms of average seat load factor (SLF), rose to 74.6%. This is an improvement of almost six percentage points compared to the level of 68.7% for the same period a year earlier. The proportion of transfer passengers of total passenger volume fell significantly, which had a positive impact on average yield per passenger. The workforce was reduced by 2530 full-time positions by the end of 2003, with an additional 670 trimmed in the first quarter of 2004. More favorable contract terms were negotiated with the five major suppliers, which reduced unit costs by 20%. Administrative and personnel costs were also reduced decisively. Once all measures have been implemented these will be 50% lower, generating repeating annual savings potential of CHF600 million. Capital reduction The Board of Directors will propose a capital reduction at the Shareholders' Meeting on May 6, 2004 in order to prevent net equity from falling below half of the share capital. The proposal is to reduce the nominal share value from CHF32 to CHF18. This measure would also have tax benefits for the company. SWISS INTERNATIONAL: To Retain Seven Directors Until Next Year -------------------------------------------------------------- Board of Directors election At the Shareholders' Assembly of May 6, 2004, the Board of Directors will propose the extension of membership on the board for Pieter Bouw, Claudio Generali, Jacques Aigrain, Andre Kudelski, Michael Pieper, Urs Rohner and Peter Siegenthaler, who were elected in December 2001 for a period of three years. This extension would run until the next ordinary Shareholders' Meeting in 2005. The period in office for board members Walter Bosch and Audun Reinas runs until the ordinary 2006 Shareholders' Meeting. Head Flight Crews and Training The Board of Directors has promoted Gaudenz Ambuhl, currently Vice President Flight Crews and Training, to the position of Executive Vice President Flight Crews and Training. In this function Ambuhl is responsible for fleet operations and is head of the Swiss pilot corps. The Executive Vice President Flight Crews and Training reports directly to Head of Operations, Managing Director Manfred Brennwald. CONTACT: SWISS CORPORATE COMMUNICATIONS P.O. Box, CH-4002 Basel Phone: +41 (0) 848 773 773 Fax: +41 61 582 35 54 E-mail: communications@swiss.com Web site: http://www.swiss.com SWISS INTERNATIONAL: Flying 70 Destinations this Summer ------------------------------------------------------- Swiss International Air Lines is consolidating its route network for the summer timetable period. The airline will serve 70 destinations worldwide, of which 42 are in Europe and 28 overseas. Manila and Buenos Aires are the only two cities that are no longer part of the route network. The summer timetable takes effect March 28, 2004. Swiss will continue to serve those destinations that are most important to Switzerland. On the intercontinental front, Swiss will operate flights between Switzerland and 28 cities in 20 countries, while in Europe the number of cities served will be 42 in 22 countries. Swiss' own route network is enhanced by non-stop code share flights operated by partner airlines between Switzerland and 14 additional destinations. European services The European route network remains unchanged, with the exception of Sion, a seasonal winter timetable destination. For key business travel destinations Swiss is focusing on operating flights at convenient times in the early and later part of the day. Swiss will serve 40 destinations non-stop from Zurich and another 14 from Basel and 9 from Geneva. Our code share partners will complement our own route network, connecting Switzerland with ten additional cities (seven from Zurich and three from Geneva). Krakow is a new code share destination, served by Styrian Spirit six times weekly from Zurich. The codeshare service between Basel and Lisbon that was operated by Portugalia has been dropped. From April 1, our partner Cirrus Airlines will operate four flights daily between Zurich and Lugano, maintaining this route as part of the Swiss network. (See media release of March 1). Intercontinental services Swiss offers non-stop flights from Zurich and Geneva to 28 intercontinental destinations. As communicated back on December 23, 2003, the days of operation and number of frequencies is subject to seasonal adjustment. No longer served as of the summer timetable are Buenos Aires and Manila, which were extensions of the Sao Paolo and Hong Kong flights respectively. Swiss code share partners operate four intercontinental flights from Zurich and one from Geneva. Codeshare Under the partnership with British Airways all flights between Switzerland and London will be on a code share basis throughout the summer timetable period. Swiss also offers code share flights to destinations in USA, Spain and Finland via the national gateways of partners American Airlines, Iberia and Finnair. Timetable The Swiss timetable is published in four languages with a print run of 205,000 copies. It is now available at sales points worldwide. The timetable can also be downloaded easily to a home or handheld computer and kept current via a monthly update. CONTACT: SWISS CORPORATE COMMUNICATIONS P.O. Box, CH-4002 Basel Phone: +41 (0) 848 773 773 Fax: +41 61 582 35 54 E-mail: communications@swiss.com Web site: http://www.swiss.com =========================== U N I T E D K I N G D O M =========================== 1ST CALL: Liquidation Hearing Set March 29 ------------------------------------------ Petition to wind up the 1st Call Heating Services Limited Company of registered office, Wymondham Business Centre, 1 Town Green, Wymondham, Norfolk NR18 0PN, presented on December 17, 2003 by Wolseley Centers Ltd., whose registered office is situated at P.O. Box 21, Boroughbridge Road, Ripon, North Yorkshire HG4 1SL, claiming to be a Creditor of the Company, will be heard at Birmingham District Registry, 33 Bull Street, Birmingham B4 6DS, on March 29, 2004, at 10:00 a.m. Any person intending to appear on the hearing of the Petition must give notice of intention to the Petitioner or its Solicitor in accordance with Rule 4.16 by 4:00 p.m. on March 26, 2004. The Petitioner's Solicitor is LCL Law, of Bluegates, P.O. Box 32, Boroughbridge Road, Ripon, North Yorkshire HG4 1UY. ABE LIMITED: Winding up Hearing at Leeds Court Set March 31 ----------------------------------------------------------- A Petition to wind up the ABE Limited Company of Enterprise House, 82 Whitchurch Road, Cardiff CF14 3LX, presented on February 19, 2004 by the Commissioners of Customs and Excise, Civil Recovery Unit, HM Customs and Excise, 3NW Queens Dock, Liverpool L74 4BJ, claiming to be a Creditor of the Company, will be heard at Leeds District Registry, The Courthouse, Oxford Row, Leeds LS1 1BG, on March 30, 2004, at 10:30 a.m. Any person intending to appear on the hearing of the Petition must give notice of intention to do so to the Petitioner or their Solicitor in accordance with Rule 4.16 by 4:00 p.m. on March 29, 2004. The Petitioner's Solicitor is DLA, Arndale House, Charles Street, Bradford BD1 1UN. (Ref BFD/N.H./439261/34339.) A G KEMBLE: Winding up Resolution Passed ---------------------------------------- At an Extraordinary General Meeting of the A G Kemble (Leicester) Limited Company on March 11, 2004 held at Insol House, 39 Station Road, Lutterworth, Leicestershire LE17 4AP, the subjoined Extraordinary Resolution to wind up the Company was passed. Richard Frank Simms and Alan Roy Limb, of Insol House, 39 Station Road, Lutterworth, Leicestershire LE17 4AP, have been appointed Joint Liquidators for the Company. ARNOLD WHITE: Appoints Liquidator --------------------------------- Name of Companies: Arnold White Construction Limited Arnold White Leighton Buzzard Limited AWG Residual Estates Limited Icknield Investments Limited At an Extraordinary General Meeting of the Members of these Companies on March 5, 2004 held at Vimy Court, Vimy Road, Leighton Buzzard, Bedfordshire, the Special and Extraordinary Resolutions to wind up these Companies were passed. M C Bowker, of Jacksons Jolliffe Cork, of Lowgate House, Lowgate, Hull HU1 1EL has been appointed Liquidator for the purpose of such windings-up. Creditors are asked to send in their names and addresses and particulars of their claims the Company due them not later than 12:00 noon April 12, 2004. CONTACT: JACKSONS JOLLIFFE CORK Lowgate House, Lowgate, Hull HU1 1EL Contact: M C Bowker, Liquidator BALTIC FOREST: In Administrative Receivership --------------------------------------------- Name of Company: Baltic Forest Lines Limited Nature of Business: Freight Forwarding Trade Classification: 30, Shipping Date of Appointment: March 12, 2004 Administrative Receiver: KPMG 1 The Embankment, Neville Street, Leeds LS1 4DW Receivers: Richard Dixon Fleming Julian Richard Whale (IP Nos 8370, 7252) BOXFOLDIA LIMITED: Hires Liquidators from Baker Tilly ----------------------------------------------------- At an Extraordinary General Meeting of the Members of the Boxfoldia Limited Company on March 10, 2004 held at Baker Tilly, City Plaza, Temple Row, Birmingham B2 5AF, the Special Resolution to wind up the Company was passed. Guy Edward Brooke Mander and Richard Paul Rendle, of Baker Tilly, City Plaza, Temple Row, Birmingham B2 5AF, have been appointed as Joint Liquidators for the Company. Creditors are asked to submit their particulars together with their written debt claims the Company due them at Baker Tilly, City Plaza, Temple Row, Birmingham B2 5AF not later than 12:00 noon April 14, 2004. CONTACT: BAKER TILLY City Plaza, Temple Row, Birmingham B2 5AF Contact: Guy Edward Brooke Mander, Liquidator Richard Paul Rendle, Liquidator Phone: 0121 214 3100 Fax: 0121 214 3101 Web site: http://www.bakertilly.co.uk BRICKS RESTAURANT: Hires Liquidator from BDO Stoy Hayward --------------------------------------------------------- At an Extraordinary General Meeting of the Bricks Restaurant Limited Company on March 10, 2004 held at Connaught House, Alexandra Terrace, Guildford, Surrey GU1 3DA, the subjoined Special Resolution to wind up the Company was passed. D B Coakley, of BDO Stoy Hayward LLP, Connaught House, Alexandra Terrace, Guildford, Surrey GU1 3DA, has been appointed Liquidator for the Company. CONTACT: BDO STOY HAYWARD LLP Connaught House, Alexandra Terrace, Guilford Surrey GU1 3DA Contact: D B Coakley, Liquidator Phone: 01483 565666 Fax: 01483 531306 Web site: http://www.bdo.co.uk CARDIO THEATER: Hires Liquidators from Baker Tilly -------------------------------------------------- Name of Companies: Cardio Theater Services (U.K.) Limited Installation Technologies Ltd. Roundbed Limited At an Extraordinary General Meeting of the Members of these Companies on March 8, 2004 held at The Courtyard Marriot, London Road, Moulsoe, Newport Pagnell, Buckinghamshire MK16 0JA, the Extraordinary Resolution to wind up the Company was passed. Graham Paul Bushby and Richard Paul Rendle, of Baker Tilly, 5th Floor, Exchange House, 446 Midsummer Boulevard, Central Milton Keynes have been appointed Joint Liquidators for the purposes of such winding-ups. CONTACT: BAKER TILLY 5th Floor, Exchange House, 446 Midsummer Boulevard, Central Milton Keynes Contact: Graham Paul Bushby, Liquidator Richard Paul Rendle, Liquidator Phone: 01908 687 800 Fax: 01908 687 801 Web site: http://www.bakertilly.co.uk CAT GLOBAL: Voluntary Winding up Resolution Passed -------------------------------------------------- At an Extraordinary General Meeting of the Cat Global Limited Company on March 2, 2004 held at Prospect Place, 85 Great North Road, Hatfield, Hertfordshire AL9 5BS, the subjoined Extraordinary Resolution to wind up the Company was passed. Geoffrey Stuart Kinlan and Anthony Sanderson, of BDO Stoy Hayward LLP, Prospect Place, 85 Great North Road, Hatfield, Hertfordshire AL9 5BS, have been appointed Joint Liquidators for the Company. CONTACT: BDO STOY HAYWARD LLP Prospect Place, 85 Great North Road, Hatfield Hertfordshire AL9 5BS Contact: Geoffrey Stuart Kinlan, Liquidator Anthony Sanderson, Liquidator Phone: 01707 255888 Fax: 01707 255890 Web site: http://www.bdo.co.uk DATAPOINT LIMITED: Hires Receivers from Kingston Smith ------------------------------------------------------ Name of Company: Datapoint (U.K.) Limited Nature of Business: Communications Trade Classification: 32 Date of Appointment: March 8, 2004 Administrative Receiver: KINGSTON SMITH AND PARTNERS LLP Devonshire House, 60 Goswell Road, London EC1M 7AD Receivers: Ian Robert Nicholas John Miller (IP Nos 008706, 007899) DIAGNOSTICS LIMITED: Appoints Numerica Administrator ---------------------------------------------------- Name of Company: Diagnostics U.K. Limited Nature of Business: Medical Scan Consultants Trade Classification: 40 Date of Appointment: March 12, 2004 Administrative Receiver: NUMERICA South Central, 11 Peter Street, Manchester M2 5LG Receivers: David Michael Riley Neil Hammond Geddes (IP Nos 008959, 006654) DREAMROLE LIMITED: Shareholders Approve Voluntary Winding up ------------------------------------------------------------ At an Extraordinary General Meeting of the Dreamrole Limited Company on March 12, 2004 held at 66 Wigmore Street, London W1U 2HQ, on 12 March 2004, the Extraordinary and Ordinary Resolutions to wind up the Company were passed. Maurice Moses and Sarah Megan Rayment, of Numerica, have been appointed Joint Liquidators for the Company. EDINBURGH CRYSTAL: To Close Factory, Move Visitor Center -------------------------------------------------------- Edinburgh Crystal will close its factory in Penicuik to open smaller factories outside Midlothian. The shutdown follows the GBP2.5 million purchase of part of the company's premises by the Midlothian Council earlier this month. The deal, which saved 120 jobs, included a guarantee that Edinburgh Crystal stays in Midlothian. Under the current plan, the company will retain its warehouse and offices in Penicuik -- which will remain its headquarters -- but will transfer visitor center to Straiton. The land purchased by the local authority will be used to build 1,000 new council houses within the next five years. Edinburgh Crystal has a turnover of between GBP17.5 million to GBP18 million. It employs 360 staff, mostly in its retail outlets, which includes a shop in Livingston. ENIGMATA LIMITED: Liquidation Hearing Set March 30 -------------------------------------------------- A Petition to wind up the Enigmata Limited Company of Enterprise House, 82 Whitchurch Road, Cardiff CF14 3LX, presented on February 19, 2004 by the Commissioners of Customs and Excise, Civil Recovery Unit, HM Customs and Excise, 3NW Queens Dock, Liverpool L74 4BJ, claiming to be a Creditor of the Company, will be heard at Leeds District Registry, The Courthouse, Oxford Row, Leeds LS1 1BG, on March 30, 2004, at 10:30 a.m. Any person intending to appear on the hearing of the Petition must give notice of intention to do so to the Petitioner or their Solicitor in accordance with Rule 4.16 by 4:00 p.m. on March 29, 2004. The Petitioner's Solicitor is DLA, Arndale House, Charles Street, Bradford BD1 1UN. (Ref BFD/N.H./439258/34339.) EQUITABLE LIFE: Policyholders Demand New Ombudsman Inquiry ---------------------------------------------------------- Equitable Members Action Group (Emag) wants to scrap the Parliamentary Ombudsman's report on the collapse of the insurer, according to The Telegraph. The group labeled the research "fatally flawed." It said that recent findings by Lord Penrose, "undermine many of the basic assumptions made by the Parliamentary Ombudsman" in July 2003. It wants ombudsman Ann Abraham to reopen an inquiry into the supervision of the society by the Financial Services Authority. They already filed a request for judicial review in the High Court to have Ms. Abraham's previous report overturned. Paul Braithwaite, general secretary of Emag insists: "The real damage was done in the 1980s and 1990s." With this, the group wants a new report that would hold the Financial Services Authority accountable for the society's failure. The inquiry is the only remaining hope for Equitable Life's members to claim compensation for money lost. The government has repeatedly refused to compensate policyholders after Lord Penrose's report on the troubles of the society blamed the company's executives for its failure. EUROTRAMA LIMITED: Hires Liquidator from ThorntonRones ------------------------------------------------------ At an Extraordinary General Meeting of the Eurotrama (U.K.) Limited Company on March 1, 2004 held at First Floor, 167 High Road, Loughton, Essex IG10 4LF, the Extraordinary and Ordinary Resolutions to wind up the Company were passed. Richard Jeffrey Rones, of ThorntonRones, 167 High Road, Loughton, Essex IG10 4LF, has been appointed Liquidator of the Company. FREEHOLD GROUND: Shareholders Okay Voluntary Winding up ------------------------------------------------------- At an Extraordinary General Meeting of the Members of The Freehold Ground Rents Company Limited Company on March 5, 2004 held at 23 Stafford Road, Croydon CR9 4BQ, the Special and Extraordinary Resolutions to wind up the Company were passed. Louise Brittain and Andrew Tate, of Baker Tilly, 20-26 Cursitor Street, London EC4A 1HY, have been appointed Joint Liquidators for the Company. CONTACT: BAKER TILLY 20-26 Cursitor Street London EC4A 1HY Contact: Louise Brittain, Liquidator Andrew Tate, Liquidator Phone: 020 7405 2088 Fax: 020 7831 2206 Web site: http://www.bakertilly.co.uk GRAINTIME LIMITED: Names Robert Valentine Liquidator ---------------------------------------------------- At an Extraordinary General Meeting of the Graintime Limited Company on March 11, 2004 held at the offices of Valentine & Co., 4 Dancastle Court, 14 Arcadia Avenue, London N3 2HS, the Extraordinary and Ordinary Resolutions to wind up the Company were passed. Robert Valentine, of 4 Dancastle Court, 14 Arcadia Avenue, London N3 2HS, has been appointed Liquidator for the Company. HOLLINGER INC.: Barclay Brothers Pursue Bid for Telegraph --------------------------------------------------------- David and Frederick Barclay lodged a new, higher offer for Hollinger International Inc.'s Telegraph Group, people familiar with the situation said, according to the Guardian. The bid values the titles at least GBP500 million, or more than double the GBP256 million the brothers earlier offered Hollinger International's former chief executive Conrad Black, the report said. Telegraph Group is estimated worth about GBP600 million pounds (US$1.1 billion). The deadline to submit bids passed Wednesday night. On Thursday, Dan Colson, the chief executive of the Telegraph Group, ended 18 years of service to the company. He will be replaced by Jeremy Deedes, who retired last year as managing director. Mr. Deedes will return to the group as deputy chairman and chief executive until the question of the ownership of the Telegraph titles is resolved, according to The Telegraph. Mr. Colson will remain on the board of Hollinger International as the new chief operating officer. MORRISON CHEMICALS: HSBC Appoints Receiver to Three Companies ------------------------------------------------------------- Name of Companies: Morrison Chemicals Limited Morrison Fibres Limited Morrison Hydraulics Limited Reg No 1221941 Reg No 2105141 Reg No 1498271 Nature of Business: Repackaging and Distribution of Chemicals Manufacture of Ceramic Fibre Products Manufacture of Pump Compressors, Lifts and Handling Equipment Trade Classification: 22, Other Retail 11, Other Manufacture 46, Other Services Date of Appointment of Joint Administrative Receivers: March 12, 2004 Name of Person Appointing the Joint Administrative Receivers: HSBC Bank plc. Joint Administrative Receivers: GRANT THORNTON 1st Floor, Royal Liver Building, Liverpool L3 1PS Receivers: Sean Croston Leslie Ross (Office Holder Nos 8930, 7244) Phone: 0151 224 7200 Fax: 0151 236 3429 Web site: http://www.grant-thornton.co.uk MYTRAVEL GROUP: Discloses Board Changes, Appointment of Auditors ---------------------------------------------------------------- The Board of MyTravel Group plc announces that at the Annual General Meeting held at 11:00 a.m. on Tuesday, the appropriate majority passed each of the resolutions contained in the Notice of Annual General Meeting dated February 23, 2004. Accordingly, the Report and Accounts were received, the remuneration report was approved, each of the directors submitted for re-election was reappointed, Deloitte & Touche LLP were reappointed as auditors, the directors were authorized to allot relevant securities and the limited misapplication of statutory pre-emption rights were approved. As previously announced, Eric Sanderson and Christer Sandahl stepped down from the Board and Michael Beckett was appointed as non-executive Chairman. CONTACT: MYTRAVEL GROUP PLC Greg McMahon Phone: 0161 232 6515 MYTRAVEL GROUP: Expects U.K. Biz Turnaround to Take Time -------------------------------------------------------- Speaking at the annual general meeting of MyTravel Group plc, Peter McHugh, chief executive, said: "Our objective is to achieve a significant improvement in results for the current year and a return to profitability in 2005. Trading in the first half of the current year has been in line with this objective. "For the 2003/2004 winter season, charter bookings are at levels that are consistent with capacity in all regions. We expect the results for the first half of the year to be in line with our expectations and show a significant improvement over last year in operating performance. "The market in the U.K. for summer 2004 has continued to be challenging, with further market evidence that customers are booking later. Margins have been under some pressure, however we have maintained an acceptable share of the market and we have taken action to reduce capacity and cost where we considered it appropriate. Early indications for the summer 2004 season in Canada and Northern Europe are encouraging. "The actions we have taken are having an impact on the performance of the business. The U.K. business was in a worse state than we appreciated and will take longer to turn around than originally expected, but the turnaround is well under way. Although there is more to be done, we are ahead of schedule on delivering the cost savings and believe that they are now likely to exceed the target of GBP150 million. "Finally we need to restore the balance sheet to bring the company back to full and lasting financial health. The Board now intends to seek to rebuild the financial position of the Group, in order to establish a sound basis for the health of the business going forward. To this end we have initiated a process to identify the options for restructuring the balance sheet. The form and terms of any restructuring and its effect on the value of the shares will depend on a number of factors and cannot be predicted with any certainty. However, we have to recognize that any restructuring may result in very significant dilution of the interests of shareholders." Strategic Review Update In the strategic review we said we needed to reduce the proportion of costs that are fixed. We have retired our older, noisier; less fuel-efficient aircraft, and by the end of the current financial year we will have reduced the number of aircraft in the fleet from 56 to 44. We have reduced the level of guaranteed accommodation, particularly in our U.K. business. We are in the process of reducing the number of ships in our fleet from four to two. While we will continue to sell cruise holidays for the foreseeable future, we are evaluating our overall cruise strategy as part of our goal to reduce risk. We have also reduced the company's risk profile by disposing of a number of loss-making businesses including the German operations. Since 1998, Germany alone lost the company a total of GBP381 million. In the strategic review we identified potential cost savings of GBP150 million by 2005. We are ahead of schedule on delivering the cost savings and we believe that we will exceed that target. In the strategic review, we said we needed to improve the utilization of our assets. As well as reducing the number of aircraft in the fleet, we have increased the utilization of the aircraft we still have. We have made significant reductions in the number of hotel beds we have on sale. We expect to use the guaranteed beds we still have more intensively. And we have improved our ability to respond flexibly to changes in the market place. In the strategic review, we said we needed to restructure our UK charter and distribution businesses. We are in the process of integrating nine of the businesses, including Airtours Holidays, MyTravel Airways U.K., Going Places and our electronic and telephone distribution channels. These organizations make up our charter tour business, which puts together holidays, including accommodation and air transport, and sells them to customers. Yet they were previously run as completely separate businesses. By combining them into the single, integrated business they should be, we are simplifying the structure, reducing costs and eliminating unnecessary accounting. We have adopted a more rigorous approach to trading. We have substantially improved our management information systems. And we have significantly upgraded our yield management process in the U.K. Restructuring Process As we said in announcing the results for 2003, the Board believes that the turnaround can be achieved, and we are working towards a significant improvement in the results this year and a return to profitability in 2005. The ability of the Group to meet its objective for the current year will continue to be dependent on the success of the actions we have taken -- and those actions we continue to take -- to manage capacity and costs, and on the overall level of demand. The Board believes that the Group has made significant progress towards achieving a turnaround in trading performance, although we still face substantial challenges, which will take time to overcome. The Board now intends to seek to rebuild the financial position of the Group, in order to establish a sound basis for the health of the business going forward. The Group's net liabilities at September 30, 2003 were GBP672.6 million. This situation severely restricts the Group's room for maneuver. Our current financial arrangements are in place until mid-2006, but we cannot allow too much time to pass before addressing the eventual need to renew or replace these arrangements. To this end we have initiated a process to identify the options for restructuring the balance sheet. The form and terms of any restructuring and its effect on the value of the shares will depend on a number of factors and cannot be predicted with any certainty. However, we have to recognize that any restructuring may result in very significant dilution of the interests of shareholders. The Board is focused on making sure that the company carries on in a sound financial position. However, we are mindful of the interests of all our stakeholders, and we will continue to ensure that we provide quality holidays to all of our customers. CONTACT: MYTRAVEL GROUP Brunswick Fiona Antcliffe Sophie Fitton Phone: 020 7404 5959 NTL INC.: Credit Rating Raised to 'B+'; Outlook Positive -------------------------------------------------------- Standard & Poor's Ratings Services said it raised its long-term corporate credit rating on U.K. and Ireland-based telephony, cable TV, and Internet provider NTL Inc. (formerly NTL Communications Corp.) to 'B+' from 'D', following the group's restructuring. The outlook is positive. At the same time, Standard & Poor's assigned its 'BB-' long-term senior secured rating to the proposed GBP2.4 billion ($4.4 billion) bank facilities of NTL Investment Holdings Ltd. (NTLIH). The rating is one notch above the corporate credit rating, indicating a high expectation of full recovery of principal in the event of a default. In addition, a 'B-' long- term rating was assigned to the proposed GBP800 million senior unsecured notes due 2014 to be issued by NTL Cable PLC. The notes are to be guaranteed on a senior subordinated basis by NTLIH. All issue ratings are subject to final documentation. "The ratings on NTL are constrained by the group's significant leverage, weak cash generation, and competitive operating environment," said Standard & Poor's credit analyst Simon Redmond. "The group benefits, however, from a substantially complete network, a customer base of about three million, and improving operational performance." Following completion of the group's refinancing, NTL will have total debt of GBP3.0 billion. Standard & Poor's recognizes the possibility of consolidation in the U.K. cable market. The ratings do not, however, factor in material transactions in the near term. "Sustained operational improvement and steady growth of revenues and free cash flow, resulting in lower leverage, could lead to a stronger rating in time," added Mr. Redmond. CONTACT: STANDARD AND POORS RATING SERVICES Analyst E-mail Addresses simon_redmond@standardandpoors.com leandro_detorreszabala@standardandpoors.com guy_deslondes@standardandpoors.com CorporateFinanceEurope@standardandpoors.com OPEN HEALTH: Appoints Tenon Recovery Administrator -------------------------------------------------- Name of Company: Open Health & Fitness Clubs Ltd Nature of Business: Health & Fitness Clubs Trade Classification: 39 Date of Appointment: March 15, 2004 Administrative Receiver: TENON RECOVERY Sherlock House, 73 Baker Street, London W1U 6RD Receivers: S R Thomas S J Parker (IP Nos 8920, 8989) PACE DIGITAL: Close Invoice Hires Smith & Williamson Receiver ------------------------------------------------------------- Name of Company: Pace Digital Limited Reg No 04127596 Nature of Business: Printing Date of Appointment of Joint Administrative Receivers: March 5, 2004 Name of Person Appointing the Joint Administrative Receivers: Close Invoice Finance Joint Administrative Receivers: SMITH & WILLIAMSON LIMITED No 1 Bishops Wharf, Walnut Tree Close, Guildford, Surrey GU1 4RA Receivers: Anthony Murphy Roger Tulloch Robert Horton (Office Holder Nos 8716, 9174 and 8922) PHILLIPS DE PURY: President Leaves to Pursue Interest in Art ------------------------------------------------------------ Phillips, de Pury & Luxembourg President, Daniella Luxembourg, has left the troubled auction house, according to The Telegraph. Ms. Luxembourg, who has co-owned the company with Simon de Pury for seven years, sold her stake in the company to her partner to set up a private art dealing company. Phillips, de Pury & Luxembourg has headquarters in New York's Chelsea district and offices throughout Europe. It specializes in the sale of contemporary and American art, jewelry and photographs. French tycoon Bernard Arnault acquired the firm in 2000 and merged it with British auction house Phillips to create Phillips, de Pury & Luxembourg. Mr. Arnault gave up control of the company to de Pury and Luxembourg last year after losing more than $60 million in the first year of competition with auction houses Sotheby's and Christie's. With Ms. Luxembourg's departure, the company was renamed Phillips, de Pury & Co. ROLLED GOLD: Designates Tenon Recovery Administrator ---------------------------------------------------- Name of Company: Rolled Gold International Limited Nature of Business: CD and DVD Distribution Trade Classification: 5190-Other Wholesale Date of Appointment: March 12, 2004 Administrative Receiver: TENON RECOVERY Sherlock House, 73 Baker Street, London W1U 6RD Receivers: S R Thomas T J Binyon (IP Nos 8920, 9285) TALENTBRAND LIMITED: Winding up Resolution Passed ------------------------------------------------- At an Extraordinary General Meeting of the Talentbrand Limited Company on March 4, 2004 held at the offices of Clark & Wallace, 14 Albyn Place, Aberdeen, the Special and Ordinary Resolution to wind up the Company were passed. Ewen Ross Alexander of Ritson Smith, Chartered Accountants, 16 Carden Place, Aberdeen AB10 1FX has been appointed liquidator for the purpose of such winding-up. TEXTSORT LIMITED: Hires Liquidator from Ritsons ----------------------------------------------- At an Extraordinary General Meeting of the Textsort Limited Company on March 9, 2004 held at 28 High Street, Nairn, the Special and Ordinary resolutions to wind up the Company were passed. William Leith Young of Ritsons, Chartered Accountants, 28 High Street, Nairn, has been appointed as Liquidator for the Company. WYRERIVER LIMITED: Names Liquidator ----------------------------------- At an Extraordinary General Meeting of the Wyreriver Limited Company on March 9, 2004 held at the offices of Taylor Vintners, Merlin Place, Milton Road, Cambridge CB4 0DP, the subjoined Special Resolution to wind up the Company was passed. W A Batty of Antony Batty & Company, New House, Suite 24, 67-68 Hatton Garden, London EC1N 8JY, has been appointed Liquidator for the Company. ********* 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. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. 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