/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/040326.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 26, 2004, Vol. 5, No. 61 Headlines C Z E C H R E P U B L I C SKODA HOLDING: Zeleziarne Buys Skoda TS for Undisclosed Sum G E R M A N Y SPAR HANDELS: Company Profile H U N G A R Y PARMALAT HUNGARIA: Involuntary Liquidation Gets Court Nod I R E L A N D EUROFOOD IFSC: Pearse Farrell Appointed Official Liquidator I T A L Y PARMALAT FINANZIARIA: Court Refuses to Accelerate Fraud Trial L U X E M B O U R G MILLICOM INTERNATIONAL: Undertakes Review of Subscriber Base N E T H E R L A N D S KAZKOMMERTS INTERNATIONAL: Proposed Eurobond Rated 'BB-' N O R W A Y STOLT OFFSHORE: Trading Restrictions on New Shares Lifted R U S S I A KRASNODAR BIOFACTORY: Under Bankruptcy Supervision Procedure MICHURINSK AUTOPUMPS: Auction of Properties April 21 MICHURINSK PISTON: In Bankruptcy External Management Procedure NEYSKAYA SELCHOZTECHNIKA: Declared Insolvent ORENBURG FURNITURE: Court Appoints Insolvency Manager PAVLOVSKSELCHOZCHIMIYA: Bankruptcy Proceedings Begin PROGRESS: Court Appoints Insolvency Manager PROMSVYAZ: Under Bankruptcy Supervision Procedure SALDINSKY METALLURGICAL: Declared Insolvent SEVERSTAL: US$300 Million Bond Issue Gets 'B+' Rating SLOBODSKAYA FURNITURE: Under Bankruptcy Supervision Procedure TERNOVKAAGROPROMCHIMIYA: Court Appoints Insolvency Manager TOPEZKY PLANT: Court Names Insolvency Manager ZLATOUSTOVSKY TEPLOFIKAZIONNY: Declared Insolvent S W E D E N SAS GROUP: Consolidates Operations in Norway SAS GROUP: Senior Managers in Denmark, Sweden Promoted to Prexy SAS GROUP: Establishes Office for Overall Strategic Development SAS GROUP: New Union Contracts to Save SEK14 Billion SAS GROUP: Sets Annual General Meeting April 22 S W I T Z E R L A N D CABLECOM HOLDINGS: Earns 'B' Ratings Following Restructuring U N I T E D K I N G D O M A & A CONSULTANCY: Hires Mazars as Liquidator AXE & STATUS: Creditors Meeting Set April 7 BAE SYSTEMS: Dick Olver to Become Non-executive Director BOXCLEVER: Creditors' Squabble Holds up Sale Process CABLE & WIRELESS: Court Junks Class Action Litigation CANARY WHARF: CWG Acquisition Offer Open Until April 2 CORE AFFINITY: Encore Marketing Appoints Moore Stephens Receiver DELTA DORIC: National Westminster Bank Names Menzies Receiver ENVAIR LIMITED: In Administrative Receivership EUROTUNNEL PLC: Philippe Bourguignon to Replace Retiring Chair FINGERPRINTS OF ELVIS: Hires Administrative Receiver HAYES SERVICE: Velvetone Limited Appoints Receivers ISOTROPIC TECHNOLOGY: In Administrative Receivership LOGCOM GROUP: Meeting of Creditors Set April 2 NTT DOCOMO: Liquidates Local Subsidiaries POOL END: Appoints Begbies Traynor Administrative Receiver ROYAL & SUNALLIANCE: Board Proposes Scrip Dividend Scheme SSL INTERNATIONAL: Chief Executive to Resign Next Month TELECOM 4 LIMITED: Hires Wilson Pitts as Administrative Receiver WASA INTERNATIONAL: Appoints Liquidator from Baker Tilly YORK AND FORD: Royal Bank of Scotland Names PwC Receiver ********* =========================== C Z E C H R E P U B L I C =========================== SKODA HOLDING: Zeleziarne Buys Skoda TS for Undisclosed Sum ----------------------------------------------------------- Skoda Holding sold its Skoda TS unit to the Slovak steelworks Zeleziarne Podbrezova for an undisclosed sum, Interfax reports. The transaction was done through Zeleziarne's 75% subsidiary, ZDAS, and 25% subsidiary ZS Trade Bohemia. In 2002, Skoda Holding spokesperson, Karel Samec, said the engineering company plans to sell assets to concentrate only on sectors in which it occupies the leading position in the markets. The company is expected to go on selling units such as Skoda Jaderne systemy, Kovarny, Hute, Skoda Machine Tools, and Skoda Gear. These subsidiaries, along with Skoda TS, represent 50% of Skoda Holding's sales. Skoda TS produces presses and lines for sugar refineries. It reported profits of CZK2 million on sales of CZK621 million last year. Appian Group, the controlling shareholder of Skoda, is keen on making as core business the transport and energy engineering side of the company. The sale of Skoda TS still needs the approval of the Czech Anti-monopoly Office. ============= G E R M A N Y ============= SPAR HANDELS: Company Profile ----------------------------- SPAR Handels- und Aktiengesellschaft Osterbrooksweg 35-45 D-22867 Schenefeld PHONE: 040 / 83 94 - 1593 FAX: 040 / 83 94 - 19 22 E-MAIL: spar-ag@spar.de WEB SITE: http://www.spar.de TYPE OF BUSINESS: SPAR Handels-AG has 2,500 SPAR and SUPERSPAR supermarkets and some 1,100 Spar Netto discount stores. SPAR's wholesale business supplies goods to more than 3,400 independent retailers in Germany. SPAR is 83%-owned by Intercontessa AG, which is majority-owned by ITM (a consortium of independent merchants that buys and distributes groceries). SIC: Food retailer EXECUTIVES: Veit-Gunnar Schuttrumpf, Chairman, Supervisory Board Fritz Ammann, Chairman, Management Board, and CEO Wolf-Dietrich von Heyking, Head of Administration and Finance NUMBER OF EMPLOYEES: 35,535 (as of 2002) SALES: US$6,822.2 million (as of 2002) NET INCOME: -US$397.7 million (as of 2002) TOTAL ASSETS: US$1,394.1 million (as of December 2002) TOTAL LIABILITIES: US$1,299.9 million THE TROUBLE: 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. ============= H U N G A R Y ============= PARMALAT HUNGARIA: Involuntary Liquidation Gets Court Nod --------------------------------------------------------- The Fejer County Court has granted the request of The Dairy Product Council to liquidate Parmalat Hungaria, a court spokesperson said, according to Budapest Business Journal. The court appointed TM-Line Kft as liquidator in response to the request filed by the council on January 30, Orsolya Boda said. The spokesperson added that the decision was handed down after Parmalat exceeded the deadline for answering questions related to its debts to suppliers. Parmalat Hungaria's debts, which total HUF270 million, have been overdue for more than 60 days. The company has 15 days to appeal the decision, the paper said. Prior to the court order, Parmalat Hungaria also filed for voluntary liquidation, after failing to find a buyer when local shareholders rejected the offer of Italian dairy company, Catone Kft. CONTACT: PARMALAT HUNGARIA RT 8000 Szekesfehervar, Seregelyesi ut 127. Phone: (36-22) 540-100 Fax: (36-22) 540-205 ============= I R E L A N D ============= EUROFOOD IFSC: Pearse Farrell Appointed Official Liquidator ----------------------------------------------------------- Pearse Farrell, FCA of FGS Chartered Accountants and Business Advisors, was confirmed by order of Mr. Justice Kelly, as Official Liquidator to Eurofood IFSC Limited, the Irish subsidiary of Parmalat, the Italian dairy company which is currently in extraordinary administration in Italy. Mr. Justice Kelly made an order that Eurofood is insolvent and made a second order winding up the Company and appointing Mr. Farrell as Official Liquidator. He stated in his judgment that the appointment of Pearse Farrell as Provisional Liquidator by the High Court brought about the opening of main insolvency proceedings for the purpose of the Insolvency Regulation. Mr. Justice Kelly further made a declaration that the center of main interest of Eurofood is and was always in Ireland. While this ruling is apparently contrary to the ruling of the court in Parma, Mr. Justice Kelly found that he did not have to consider the merits of the decision of the Parma court since, in his opinion, it lacked jurisdiction under the Insolvency Regulation to do what it purported to do. In addition he felt that the Parma court was obliged to recognize the order of the Irish High Court in appointing the Provisional Liquidator. General principles of European Union law include respect for fundamental rights, including the right to a fair hearing. In this case, the creditors of Eurofood were not put on notice of the hearing before the Parma court, despite a direction from the Parma court that all interested parties be put on notice. Furthermore, the right to a fair hearing implies that one should be given sufficient notice of the hearing in order to prepare a defense. The Provisional Liquidator, who was put on bare notice of the hearing before the Parma court was not furnished with the papers grounding the application until after the hearing before the Parma court had actually concluded. Counsel on behalf of the Italian Extraordinary Administrator made a request for a stay on the order appointing Mr. Farrell as Official Liquidator, however, this was duly refused by Mr. Justice Kelly. Previously Mr. Farrell had been appointed as Provisional Liquidator to the Company by order of the High Court on 27 January last which pre-dates, by a period of up to some weeks, an application to and order of the court in Parma in Italy dated 20 February 2004, whereby the Parma Court admitted Eurofood into insolvency and furthermore found that the center of main interest of Eurofood was in Italy rather than in Ireland. Mr. Justice Kelly's judgment clarifies the European Insolvency Regulation from an Irish perspective in that: (a) It sets out the tests for establishing the center of main interest in cross-jurisdictional cases involving Ireland; (b) It establishes that the commencement of a winding-up begins with the lodging of a petition in such cross-border cases; and (c) That the appointment of a Provisional Liquidator does constitute the commencement of insolvency proceedings under the Regulation. The Official Liquidator will now commence the process of realizing the assets of the company that consist primarily of debtor and loan balances from Parmalat entities located in Italy and South America. The Official Liquidator will also be lodging an appeal in Italy against the decision of 20 February last of the Parma court. Issued on behalf of the Official Liquidator CONTACT: FGS Business Advisers and Consultants Molyneux House, Bride Street, Dublin 8, Ireland Tel: + 353 (0) 1 4182000 Fax: + 353 (0) 1 4182050 E-mail: fgs@fgs.ie Home Page: http://www.fgs.ie Contact: Ruth Savage or Declan Taite Phone: +353 (0) 1 4182000 ========= I T A L Y ========= PARMALAT FINANZIARIA: Court Refuses to Accelerate Fraud Trial ------------------------------------------------------------- The judge hearing the cases filed against the 29 individuals and 3 institutions linked to the financial scandal at Parmalat rejected the prosecution's request for a fast-track trial, reports say. According to the judge, the investigators should have provided enough evidence to eliminate the preliminary hearings. With the request rejected, investigators will now need to further search for more evidence before they go to trial. Facing various charges of financial fraud are founder Calisto Tanzi, the Italian units of Deloitte & Touche and Grant Thornton and Bank of America. It also includes Mr. Tanzi's son Stefano, brother Giovanni and niece Paola Visconti, former chief financial officers Fausto Tonna, Luciana Del Soldato and Alberto Ferraris, and lawyer Gian Paolo Zini. All of the accused face charges of market rigging, while some are accused of false auditing and obstructing the work of regulators. =================== L U X E M B O U R G =================== MILLICOM INTERNATIONAL: Undertakes Review of Subscriber Base ------------------------------------------------------------ Millicom International Cellular S.A. (Nasdaq Stock Market: MICC) the global telecommunications investor announces the completion of a review of its subscriber base. This review was undertaken to ensure that Millicom International was consistent in the way it accounted for subscribers on a global basis, so tightening MIC's strict subscriber definition. The effect of the review is that some 243,000 subscribers have been churned out bringing the total subscriber number to 5,748,508 and the proportional subscribers number to 4,011,465 today, still slightly ahead of the year-end 2003 reported subscriber numbers. This review has minimal revenue impact and Millicom International's revenue growth for the first quarter of 2004 is expected to be higher than the revenue growth for the fourth quarter of 2003. The results will be reported on April 20. The largest impact came from the regulatory authority in Paraguay introducing a new ruling on November 15, 2003 that instructs operators to remind customers that leaving a voicemail has a cost to the caller. As a result, in March 2004 Millicom International has seen an increasingly significant churn from low revenue generating subscribers. Millicom International anticipates the subscriber base in Paraguay being reduced by approximately 150,000 and this will result in a revenue loss of approximately $200,000 per month. Following these adjustments in Paraguay Millicom International undertook a review for all other markets to ensure compliance with the stricter definition used for subscriber reporting, leading to another 93,000 subscribers being churned. This subsequent review will not impact revenues. CONTACTS: MILLICOM INTERNATIONAL CELLULAR S.A. Luxembourg Marc Beuls President and Chief Executive Officer Phone: +352 27 759 327 SHARED VALUE LTD London Andrew Best Investor Relations Phone: +44 20 7321 5022 Web site: http://www.millicom.com ===================== N E T H E R L A N D S ===================== KAZKOMMERTS INTERNATIONAL: Proposed Eurobond Rated 'BB-' -------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB-' debt rating to an indeterminate maturity, U.S. dollar-denominated bond to be issued by Kazkommerts International B.V., a Netherlands-based special purpose vehicle, in March 2004. The amount of the issue will be $200-$250 million. The bond issue is guaranteed by Kazakhstan-based Kazkommertsbank (JSC) (KKB; BB-/Stable/B). The ratings on KKB reflect the bank's strong domestic franchise and improving economic environment and funding profile. KKB has been using Kazakhstan's improved economic prospects to its advantage, attracting primary funds and growing its profitable lending business, although fast loan growth in recent years is considered risky. The decision of the European Bank for Reconstruction and Development (EBRD; AAA/Stable/A-1+) to invest into the equity of KKB, as well as the reversal of the bank's policy on financing the equity investments of its sister company, Central Asian Industrial Investments (CAII), have improved KKB's credit profile. KKB also resolved its largest problematic related party loans, which reduced the concentration of its loan portfolio to single-party risk, as well as improving asset quality. Although the Kazakh economy has been showing positive trends since 2000, the bank retains significant concentrations in loans and funding in a high-risk economic and banking environment. Its prudent practice of taking significant loan-loss provisions and collateral for potential problems stemming from the high loan growth mitigates risks. CONTACT: STANDARD AND POORS RATING SERVICES Analyst E-mail Addresses magar_kouyoumdjian@standardandpoors.com ekaterina_trofimova@standardandpoors.com FIG_Europe@standardandpoors.com =========== N O R W A Y =========== STOLT OFFSHORE: Trading Restrictions on New Shares Lifted --------------------------------------------------------- Stolt Offshore S.A. (Nasdaq NM: SOSA; Oslo Stock Exchange: STO), announced that the transfer restrictions have been lifted on the 45.5 million Common Shares, which were issued in the private placement and commenced trading on March 12, 2004. The ISIN number under which the new shares have been trading and the STON ticker code will be cancelled on March 25, 2004. All Stolt Offshore shares registered on the Oslo Bors will trade under the original ISIN number and STO ticker code from that date. CONTACT: STOLT OFFSHORE S.A. Julian Thomson Phone: (U.K.) +44 1224 718436 Phone: (U.S.) +1 877 603 0267 (toll free) E-mail: julian.thomson@stoltoffshore.com =========== R U S S I A =========== KRASNODAR BIOFACTORY: Under Bankruptcy Supervision Procedure ------------------------------------------------------------ The Arbitration Court of Krasnodar region commenced bankruptcy supervision procedure on federal state unitary enterprise, Krasnodar Biofactory. The case is docketed as A-2-665/2004- 46/8-b. Mr. V Amanatidi, a member of TP Self-regulated organization of arbitral managers, Kuban, has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to the temporary insolvency manager at: 350000, Russia, Krasnodar, Post User Box 12. A hearing will take place in the Arbitration Court of Krasnodar region on July 7, 2004. CONTACT: FSUE KRASNODAR BIOFACTORY Russia, Krasnodar, Rossiyskaya str.74 Mr. V Amanatidi, Temporary Insolvency Manager 350000, Russia, Krasnodar, Post User Box 12 KUBAN Krasnodar, Uralskaya str.134 MICHURINSK AUTOPUMPS: Auction of Properties April 21 ---------------------------------------------------- Rustam Achmetov, the bidding organizer and insolvency manager of OJSC Michurinsk Autopumps Factory, set the public auction of the company's properties on April 21, 2004 at 11:00 a.m. local time. The starting price of the property complex is RUB19.2 million. Bidders are required to deposit RUB3.840 million in order to participate in the process. Preliminary examination of auction conditions, document list for participants, description of lots and reception of biddings are done between 10:00 a.m. and 2:00 p.m. during working days until April 16, 2004. The address is Russia, Tambov region, Michurinsk, Lavrova str.11. Phone: (8-07545) 53453. Applications to participate in the bidding are accepted until April 20, 2004. The auction will be held at Russia, Tambov region, Michurinsk, Lavrova str.11. CONTACT: MICHURINSK AUTOPUMPS FACTORY Russia, Tambov region, Michurinsk, Lavrova str.11. The bidding organizer, Insolvency Manager Russia, Tambov region, Michurinsk, Lavrova str.11. Phone: (8-07545) 53453 MICHURINSK PISTON: In Bankruptcy External Management Procedure -------------------------------------------------------------- The Arbitration Court of Tambov region placed Closed JSC Michurinsk Piston Rings Factory under bankruptcy external management procedure until July 23, 2005. The case is docketed as A64-1112/03-2. Mr. Rustam Achmetov, a member of TP Self- regulated organization of arbitral managers inn Central Federal District, has been appointed external insolvency manager. Creditors are asked to submit their proofs of claim to the external insolvency manager at: 392015, Russia, Tambov-15, Post User Box 3. A hearing will take place in the Arbitration Court of Tver region on May 25, 2004 at 10:30 a.m. CONTACT: MICHURINSK PISTON RINGS FACTORY Russia, Tambov region, Michurinsk Novaya Promploschadka street Mr. Rustam Achmetov, External Insolvency Manager 392015, Russia, Tambov-15, Post User Box 3 NEYSKAYA SELCHOZTECHNIKA: Declared Insolvent -------------------------------------------- The Arbitration Court of Kostroma region declared Agrotechnical Company OJSC Neyskaya Selchoztechnika insolvent and introduced bankruptcy proceedings on the company. The case is docketed as A31-4842/18. Mr. Sergey Timoshkov, a member of TP Interregional Self-regulated organization of arbitral managers in Central Federal District, has been appointed insolvency manager. Creditors have until May 20, 2004 to submit their proofs of claim to the insolvency manager at: 157330, Kostroma region, Neya, Lyubimova str.65. CONTACT: NEYSKAYA SELCHOZTECHNIKA 157330, Russia, Kostroma region, Neya, Lyubimova str.65 Mr. Sergey Timoshkov, insolvency manager 157330, Russia, Kostroma region, Neya, Lyubimova str.65 ORENBURG FURNITURE: Court Appoints Insolvency Manager ----------------------------------------------------- The Arbitration Court of Orenburg region declared OJSC Orenburg Furniture Factory insolvent and subsequently introduced bankruptcy proceedings on the factory. The case is docketed as A47-9423/03-14GK. Mr. Alexandr Kuzminov, a member of TP Interregional self-regulated organization of arbitral managers Alyans, has been appointed insolvency manager. Creditors have until May 20, 2004 to submit their proofs of claim to the insolvency manager at: 460000, Russia, Orenburg, Gaya str.23a, Phone/Fax: (3532) 783845. CONTACT: ORENBURG FURNITURE FACTORY 460004, Russia, Orenburg, Yurkina str.9A Mr. Alexandr Kuzminov, insolvency manager 460000, Russia, Orenburg, Gaya str.23a, Phone/Fax: (3532) 783845 PAVLOVSKSELCHOZCHIMIYA: Bankruptcy Proceedings Begin ---------------------------------------------------- The Arbitration Court of Voronezh region declared Agriculture chemical company OJSC Ternovkaagropromchimiya insolvent and introduced bankruptcy proceedings on the company. The case is docketed as A14-8921-03/30/7b. Mr. Alexandr Chernomor, a member of TP Self-regulated organization of arbitral managers in Central Federal District, has been appointed insolvency manager. Creditors have until May 20, 2004 to submit their proofs of claim to the insolvency manager at: 396440, Russia, Voronezh region, Pavlovsky area, Voronzovka, Pushkinskaya str.31. CONTACT: AGRICULTURE CHEMICAL COMPANY PAVLOVSKSELCHOZCHIMIYA 396440, Russia, Voronezh region, Pavlovsky area Voronzovka, Pushkinskaya str.31 Mr. Alexandr Chernomor, Insolvency Manager 396440, Russia, Voronezh region, Pavlovsky area Voronzovka, Pushkinskaya str.31 TP Moscow, Krasnokazarmennaya str.9 PROGRESS: Court Appoints Insolvency Manager ------------------------------------------- The Arbitration Court of Yaroslavl region declared LLC Progress insolvent and introduced bankruptcy proceedings on the company. The case is docketed as A82-6130/03-7-B/67. Mr. M. Zhukov, a member of TP Self-regulated organization of arbitral managers, RESN, has been appointed insolvency manager. Creditors have until May 20, 2004 to submit their proofs of claim to the insolvency manager at: 150031, Yaroslavl, Post User Box 2. CONTACT: PROGRESS 152124, Russia, Yaroslavl region, Rostov area, Puzhbol Mr. M. Zhukov, Insolvency Manager 150031, Yaroslavl, Post User Box 2 RESN 115114, Moscow, Derbenevskaya str.1, build 1 PROMSVYAZ: Under Bankruptcy Supervision Procedure ------------------------------------------------- The Arbitration Court of Republic of Adyugeya commenced bankruptcy supervision procedure on OJSC Maykop Factory Promsvyaz. The case is docketed as A01-B-1582004-11. Mr. Evgeny Biryukov, a member of TP Self-regulated organization of arbitral managers, has been appointed temporary insolvency manager. Creditors have until April 20, 2004 to submit their proofs of claim to the temporary insolvency manager at: 385700, Russia, Republic of Adyugeya, Maykop, Zhukovskogo str.31. A hearing will take place in the Arbitration Court of Republic of Adyugeya on April 5, 2004. CONTACT: MAYKOP FACTORY PROMSVYAZ 385700, Russia, Republic of Adyugeya Maykop, Zhukovskogo str.31 Mr. Evgeny Biryukov, Temporary Insolvency Manager 385700, Russia, Republic of Adyugeya Maykop, Zhukovskogo str.31 ARBITRATION COURT OF VORONEZH REGION Voronezh, Srednemoskovskaya str.77, off.111 SALDINSKY METALLURGICAL: Declared Insolvent ------------------------------------------- The Arbitration Court of Sverdlovsk region declared OJSC Saldinsky Metallurgical Plant (TIN 6622001378) insolvent and introduced bankruptcy proceedings on the factory. The case is docketed as A60-5677/2002-C1. Mrs. Olga Ruschizkaya has been appointed insolvency manager. Creditors have until May 20, 2004 to submit their proofs of claim to the insolvency manager at: 620075, Russia, Ekaterinburg, Lenin str.41, office 317. CONTACT: SALDINSKY METALLURGICAL PLANT 624610, Russia, Sverdlovsk region, Nizhnya Salda, Engels str.1 Mrs. Olga Ruschizkaya, Insolvency Manager 620075, Russia, Ekaterinburg, Lenin str.41, Office 317 SEVERSTAL: US$300 Million Bond Issue Gets 'B+' Rating ----------------------------------------------------- Fitch Ratings on Wednesday assigned to Russia-based OAO Severstal and to its proposed US$300 million senior notes with at least seven-year maturity Senior Unsecured foreign currency 'B+' ratings with Stable Outlooks. At the same time, the agency has assigned to Severstal a Short-term 'B' rating. The rating on the bond issue is contingent upon final documentation confirming information already received. Fitch understands that the proceeds will be used for the expansion of the core business in line with Severstal's corporate strategy, to refinance the existing indebtedness and for general corporate purposes. Severstal operates the second largest single-site integrated steel plant within the Russian Federation. In FY02, Severstal's total output was 9.8 million tons, which was equivalent to 16% of total steel produced in Russia. The ratings reflect strong domestic market positions in high growth sectors such as pipe and auto manufacturers, which accounted for 21% and 16% of total sales respectively in FY03. In recent years Severstal entered into JVs with Arcelor and Evraz Holding (Senior Unsecured 'B' with Stable Outlook), to diversify its product range offered to domestic auto manufacturers and Gazprom (Senior Unsecured 'BB' with Stable Outlook), respectively. At the same time, Severstal benefits from low raw material costs compared to international peers, high margin product mix and increasing geographical diversification of sales. The rating also reflects Fitch's concern about related-party transactions implied in the concentrated ownership structure. Such transactions can undermine the company's financial profile due to their frequency and size. At the same time, the company lacks direct control over raw material supplies: these are controlled by Severstal's main shareholder Alexei Mordashov, who holds a 82.75% stake in Severstal, which is listed at the Russian Trading System (RTS). In FY03, Severstal embarked on an aggressive international acquisition strategy, which is associated with further debt increase and substantial integration and execution risks. In January 2004, Severstal completed the acquisition of U.S. based Rouge Industries for a total cash consideration of USD260 million and USD70 million liabilities, no pension liabilities were assumed. As per March 1, 2004 Severstal's net debt position was USD234 million, which is expected to rise substantially during the course of FY04. Fitch estimates that Severstal's gross debt will amount to roughly USD1.5 billion at FYE04, which may result in a gross leverage of 2.0x. The Stable Outlook reflects the company's strong cash generation ability underpinned by a value-added product mix. The Outlook also considers the underlying sovereign risk, as the majority of operations and assets are based in Russia. Severstal's business profile benefits from the dominance of flat steel products (c.81% of total output) usually a high margin segment and its ability to generate high operating margins (EBITDA margin 31% in 1H03 and 21% in FY02). While profit margins are historically high, they are likely to be negatively affected by future cost increases as Russia's gas and railway industries are deregulated. Severstal's debt benefits from long-term maturities, which aim to support the capital investment program of USD1.5 billion for the period of 2004-2012. The modernization of its existing facilities and diversification of the product range will lead to cash outflow for capex peaking in FY04-FY05 at an average of USD400 million p.a. At FYE03, Severstal's gross debt to EBITDA was 0.6x. Gross debt amounted to USD515 million (USD178 million at FYE02) of which USD238m was secured by fixed assets and export receivables. Following the five-year-bond issue of USD325 million in February 2004 and additional utilization of USD114 million of secured loans the share of secured debt to gross debt was 33% as at February 29, 2004. Fitch is aware that this reflects Russian bank lending practices, which typically require 100% security over assets. Although this proportion of secured debt is in line with domestic peers, Severstal has not yet extensively used capital market financing to reduce the amount of secured debt. Fitch notes that a rating review would be warranted if the secured debt, including any securitization to total consolidated EBITDA and including Severstal North America, exceeds 0.75x (0. 3x based on pro forma unaudited consolidated figures for FY03) or if net debt to EBITDA rises above 1.0x (0.1x based on pro forma unaudited consolidated figures for FY03). However, Fitch notes that according to the bond documentation, additions to secured debt are restricted to 10% of total assets per annum. As of February 2004, Severstal had USD217.8 million of unused committed credit facilities on a consolidated basis. CONTACT: FITCH RATINGS Sonya Dilova, London Phone: +44 20 7417 3485 Wolfgang Wiehe, London Phone: +44 20 7417 4233 Media Relations: Alex Clelland, London Phone: +44 20 7862 4084 SLOBODSKAYA FURNITURE: Under Bankruptcy Supervision Procedure ------------------------------------------------------------- The Arbitration Court of Voronezh region commenced bankruptcy supervision procedure on OJSC Slobodskaya Furniture Factory. The case is docketed as A14-1113-04/9/20b. Mr. Rudolf Shuvalov, a member of TP Self-regulated organization of arbitral managers, Strategiya, has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to the temporary insolvency manager at: 397535, Russia, Voronezh region, Buturlinivsky area, Nizhny Kislyay, Dzerzhiskogo str.15- v. A hearing will take place in the Arbitration Court of Voronezh region on June 17, 2004 at 10:30 a.m. CONTACT: SLOBODSKAYA FURNITURE FACTORY 172060, Russia, Voronezh region, Bobrovky are, Sloboda, Bolshaya str.115 Mr. Rudolf Shuvalov, Temporary Insolvency Manager 397535, Russia, Voronezh region, Buturlinivsky area Nizhny Kislyay, Dzerzhiskogo str.15-v. ARBITRATION COURT OF VORONEZH REGION Voronezh, Srednemoskovskaya str.77, off.111 STRATEGIYA Voronezh, Plechanovskaya str.22 TERNOVKAAGROPROMCHIMIYA: Court Appoints Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Voronezh region declared Agriculture industrial chemical company OJSC Ternovkaagropromchimiya (TIN6622001378) insolvent, and introduced bankruptcy proceedings at the factory. The case is docketed as A14-10502-03/42/3b. Mr. Andrey Ivanov, a member of TP Self-regulated organization of arbitral managers, Strategiya, was appointed insolvency manager. Creditors have until April 20, 2004 to submit their proofs of claim to the insolvency manager at: 397110, Russia, Voronezh region, Trenovsky area, Ternovka, Sovetskaya str.1. CONTACT: Mr. Andrey Ivanov, Insolvency Manager 397110, Russia, Voronezh region Trenovsky area, Ternovka, Sovetskaya str.1 STRATEGIYA Voronezh, Plechanovskaya str.22 TOPEZKY PLANT: Court Names Insolvency Manager --------------------------------------------- The Arbitration Court of Tver region declared OJSC Topezky Meat- Packing Plant insolvent and introduced bankruptcy proceedings on the company. The case is docketed as A66-7818-03. Mr. N. Petrov, a member of TP Self-regulated organization of arbitral managers, MZPU, has been appointed insolvency manager. Creditors have until May 20, 2004 to submit their proofs of claim to: (a) Insolvency manager: 170011, Tver, 1-za liniey OzhD str.2, Phone: 423867 (b) Arbitration Court of Tver region: Tver, Sovetskaya str.23B, off.5. CONTACT: TOPEZKY MEAT-PACKING PLANT, 172850, Russia, Tver region, Toropez, Chistovsky trakt 4 Mr. N. Petrov, Insolvency Manager 170011, Tver, 1-za liniey OzhD str.2, Phone: 423867 MZPU 125171, Moscow, Leningradskoye shosse 16, build 3 ZLATOUSTOVSKY TEPLOFIKAZIONNY: Declared Insolvent ------------------------------------------------- The Arbitration Court of Chelyabinsk region declared Power Enterprise Zlatoustovsky Teplofikazionny Trest insolvent and introduced bankruptcy proceedings on the factory. The case is docketed as A76-20608/03-52-517. Mr. Andrey Lavrov, a member of TP Interregional self-regulated organization of arbitral managers Yuzhny Ural, has been appointed insolvency manager. Creditors have until April 20, 2004 to submit their proofs of claim to the insolvency manager at: 454080, Russia, Chelyabinsk region, Zlatoust, Post User Box 2234. CONTACT: ZLATOUSTOVSKY TEPLOFIKAZIONNY TREST Russia, Chelyabinsk region, Zlatoust, Gagarina 1-8 Mr. Andrey Lavrov, insolvency manager 454080, Russia, Chelyabinsk region, Zlatoust, Post User Box 2234 =========== S W E D E N =========== SAS GROUP: Consolidates Operations in Norway -------------------------------------------- Braathens and Scandinavian Airlines in Norway are to be merged into a single organization. The new airline -- SAS Braathens -- will serve routes in Norway and between Norway and the rest of Europe. The President of the airline will be Petter Jansen. Mr. Jansen is 48 years old and was head of Fornebu Airport, in Oslo, during the 1990s. He has extensive experience of the Armed Forces and Norwegian banking operations, is on leave from his position as CEO of DnBNOR and is currently working on a scholarship in the Europa Program. He will assume his position as President of SAS Braathens on April 15. "I am pleased and excited to assume the task of creating a new airline in cooperation with my colleagues. We shall create something new and I can say with certainty that the airline signals the start of a new era," says Petter Jansen. "SAS Braathens will have a cost level that will enable us to seriously challenge the competition from the so-called low-fare airlines. The customers will be the winners." The new airline will offer Norwegians fixed low fares for air travel. Fares and service concepts will be ready in April. These will be structured as one-way fares on all routes and with simple rules for ticket bookings. On flights to selected European business destinations, it will be possible to furnish the cabin with a premium class for passengers requiring extra comfort and flexibility. SAS Braathens will initially have a route network comprising 41 destinations, from Longyearbyen in the North to Las Palmas in the south. The route network will be served by a fleet comprising exclusively Boeing 737s, with about 50 aircraft. "The coordination process between the two airlines will begin shortly and the aim is for integration to be completed by April 2005. This includes efforts to compose skilled teams at all levels of the new organization. The coordination process will be based on the regulations for operational transfers. Rationalization and efficiency measures shall not be implemented at the cost of flight safety," Petter Jansen emphasizes. The integration of the administrative functions in Braathens and Scandinavian Airlines into the new business will lead to immediate overmanning. The selection criteria will, in the first instance, be qualifications and length of service. It is still too early to say how many will be redundant. For pilots and cabin crew, no redundancy will occur as a result of the merger. However, the productivity and efficiency gains contained in the agreements on new salary and working conditions will lead to redundancies in these groups, too. In this case, the selection criterion will be length of service. SAS Braathens will already play an active role in the market in May. The basis for the new operation will be the combined traffic program currently operated by Braathens and Scandinavian Airlines in Norway, reinforced by increased production and more routes. New foreign destinations from Oslo will initially comprise Manchester, Geneva, Milan, Prague and London-Gatwick. Sandefjord's Torp Airport -- and thereby the entire Vestfold region -- will have a direct connection with Alicante. The existing domestic route network in Norway will have an even better offering, with the establishment of more departures. This will initially apply to Oslo-Trondheim and the coastal route of Stavanger-Bergen-Trondheim. More routes and departures will be introduced in autumn 2004 and spring 2005. The new airline will not operate intercontinental services. Overseas flights will be offered by the SAS Group's existing intercontinental operation. CONTACT: SAS GROUP Knut Lovstuhagen, Communications Director, Braathens Phone: 48215005 Siv Meisingseth Communications Manager, Scandinavian Airlines Phone: 95716145 SAS GROUP: Senior Managers in Denmark, Sweden Promoted to Prexy --------------------------------------------------------------- The new presidents of Scandinavian Airlines Denmark and Scandinavian Airlines Sweden will be the current Senior Vice Presidents Susanne Larsen in Denmark and Anders Ehrling in Sweden. The current Senior Vice President for Scandinavian Airlines International, Lars Lindgren, continues to be responsible for the new Intercontinental business area. Prior to assuming the position as Danish President for Scandinavian Airlines, Susanne Larsen was personnel director in Denmark. She has also held a number of executive positions in the field of human resources. Anders Ehrling began his career at SAS in 1985 and since then has served as marketing director for North America, head of Swedish domestic traffic and Senior Vice President of Network & Revenue Management. Lars Lindgren has formerly been responsible for Partnerships & Alliances, served as Vice President of SAS International and is a Board member in Spanair, AirBaltic, Skyways and SAS Cargo. CONTACT: SCANDINAVIAN AIRLINES Carl A. Karlsson, Head of Communications Phone: +46 8 797 22 25 or +46 709 97 22 25 SAS GROUP: Establishes Office for Overall Strategic Development --------------------------------------------------------------- On account of the altered Group structure and establishment of three wholly owned airlines for the SAS Consortium, the Board of Directors of SAS AB have decided to revise the structure and areas of responsibility within Group Management. A new function, Airline Strategy & Coordination has been created. This function will be responsible for the overall strategic development of the airline business as well as be responsible for ensuring synergies and coordination, among other tasks. To ensure a vigorous and distinct executive management of the airline business, the heads of the three new national airlines in Scandinavian Airlines in Denmark, Norway and Sweden will report directly to the President and CEO. This means that the position of Executive Vice President and Chief Operating Officer of Scandinavian Airlines will cease to exist. After these changes, Group Management will continue to consist of six persons. Jorgen Lindegaard, President and CEO. Five positions will report to the President and CEO: Gunnar Reitan, Deputy CEO, responsible for Subsidiary & Affiliated Airlines and Hotels Gunilla Berg, Executive Vice President and Chief Financial Officer Soren Belin, Executive Vice President, Airline Strategy & Coordination John S. Dueholm, Executive Vice President and responsible for Airline Support and Airline Related Businesses Bernhard Rikardsen, Executive Vice President and responsible for Corporate Administration & Support Together with the conversion of Scandinavian Airlines into independent subsidiaries, the changes mean the SAS is establishing a Group structure more in line with industry norms. No changes in the rest of the business structure took place. CONTACT: SAS GROUP INVESTOR RELATIONS Hans Ollongren Senior Vice President Corporate Communications Phone: + 46 8 797 1950 Sture Stolen VP, Head of SAS Group Investor Relations Phone: + 46 8 797 1451 SAS GROUP: New Union Contracts to Save SEK14 Billion ---------------------------------------------------- The new union agreements within the SAS Group are now concluded and as a result the Turnaround 2005 action program can be implemented as planned. Concurrently, work is proceeding with incorporating Scandinavian Airlines by establishing independent national companies within the SAS consortium. The international flight operations will become a business area within the SAS consortium. The Turnaround 2005 action program will give the SAS Group long- term competitiveness and profitability. Savings of about SEK14 billion are required for the program to succeed. Decided and defined actions currently amount to SEK12.5 billion and the remaining portion of about SEK2 billion related mainly to renewed union contracts for all personnel groups. "We have succeeded in achieving the savings required and thanks to the responsible actions of the unions we now have the conditions to become Europe's most competitive network company," says SAS CEO Jorgen Lindegaard. There is still no agreement with the Swedish Transport Workers' Union, nor have the parties conducted any negotiations in this contract round. Within the framework of Turnaround 2005, work continues to establish independent airlines in Denmark, Norway and Sweden. In Norway, Scandinavian Airlines will be integrated with Braathens and the combined operations will become a subsidiary in the SAS consortium under the name SAS Braathens. Based on the new contracts, the merged company SAS Braathens gains a competitive cost level. In Denmark and Sweden, new limited liability companies will be established and the personnel transferred to the new companies with the union contract terms signed in this year's contract activities. The intercontinental flight operations will be organized as a business unit in the SAS consortium. Economic effects of the renewed union contracts Compensation in the form of salaries and remuneration levels in the union contracts yields a positive effect of about SEK1.5 billion, with full effect in 2005. The effect during the current year is estimated at SEK800 million. The contract with the pilots is calculated to provide SEK700 million, the cabin contract about SEK400 million and the other contracts the remaining amount. This means that the SAS Group achieves the savings goal of SEK14 billion in 2005. In addition, there are possibilities for further savings of about SEK500 million in selection of business and distribution models. The contract with the cabin personnel also includes simplifications in the salary increment structure, which will also provide for further savings even after 2005. In addition, there are synergy effects of about SEK200-300 million as a result of the merger of SAS Braathens in Norway and a changed organizational structure. CONTACT: SAS GROUP CORPORATE COMMUNICATIONS Hans Ollongren, SVP, Corporate Communication and Public Affairs Phone: +46 8 797 19 50 Phone: +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 SAS GROUP: Sets Annual General Meeting April 22 ----------------------------------------------- The SAS Group's and the Parent company SAS AB's year-end report for the fiscal year 2003 was approved by the SAS Board in SAS AB and was published on February 11, 2004. At a Board meeting in SAS AB the SAS Group's and the Parent Company SAS AB's Annual report was presented and approved. The full 2003 Annual Report, including the SAS Group, is available as a PDF file on the Internet, http://www.sasgroup.net and printed version will be distributed to shareholders and other stakeholders during week 14 and 15. Annual General Meeting of Shareholders The ordinary Annual General Meeting in SAS AB will be held on April 22, 2004, at 4:00 p.m. at Bern's salonger, Kammarsalen, in Stockholm. Shareholders are also entitled to participate in the Annual General Meeting from venues in Copenhagen (Radisson SAS Falconer Hotel) and in Oslo (Radisson SAS Scandinavian Hotel). CONTACT: SAS GROUP Sture Stolen Head of SAS Group Investor relations Phone: + 46 8 797 1451 Web site: http://www.sasgroup.net ===================== S W I T Z E R L A N D ===================== CABLECOM HOLDINGS: Earns 'B' Ratings Following Restructuring ------------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'B' long-term corporate credit rating to Swiss cable operator, Cablecom Holdings AG. The outlook is positive. At the same time, Standard & Poor's assigned its 'B' long-term corporate credit rating to Cablecom's financing subsidiary Cablecom Luxembourg SCA. The outlook is also positive. Standard & Poor's also assigned its 'CCC+' long-term senior unsecured debt rating to Cablecom Luxembourg's proposed EUR290 million ($357 million) senior notes maturing in 2014. In addition, Standard & Poor's withdrew its 'D' long-term rating on Cablecom (Ostschweiz) AG, following the group's restructuring. Following completion of the group's refinancing plan, Cablecom will have total debt of SFR1.7 billion ($1.4 billion) at March 31, 2004. "The ratings on Cablecom take into consideration the group's high leverage, weak but improving free cash flow generation, strong regulation in its main markets, and the covenants attached to its bank facility," said Standard & Poor's credit analyst Leandro de Torres Zabala. "The ratings are supported, however, by Cablecom's strong position in its analogue cable television (CATV) business, which generates stable and recurring cash flow; strong position as Switzerland's main CATV provider and second-largest broadband Internet provider; and its position as one of only two owners of a national network with extensive local loop infrastructure in Switzerland." There is potential for mid-term ratings upside if Cablecom successfully defends its leading position in cable television in Switzerland, raises its free cash flow generation profile, reduces leverage, and maintains ample headroom under bank covenants. The group is expected to apply a conservative financial policy with tight capital expenditure management and no material acquisitions. CONTACT: STANDARD AND POORS RATING SERVICES Analyst E-mail Addresses leandro_detorreszabala@standardandpoors.com simon_redmond@standardandpoors.com CorporateFinanceEurope@standardandpoors.com =========================== U N I T E D K I N G D O M =========================== A & A CONSULTANCY: Hires Mazars as Liquidator --------------------------------------------- At an Extraordinary General Meeting of the A & A Consultancy Limited Company on March 4, 2004 held at the offices of A T G Access, Automation House, Lowton Business Park, Newton Road, Warrington WA3 2AP, the subjoined Special Resolutions to wind up the Company were passed. Tim Alan Askham, of Mazars, Regent House, Heaton Lane, Stockport SK4 1BS, has been appointed Liquidator for the Company. AXE & STATUS: Creditors Meeting Set April 7 ------------------------------------------- There will be a Creditors Meeting of the Axe & Status Limited Company on April 7, 2004 at 10:30 a.m. It will be held at The Courtyard Marriott Hotel, London Road, Newport Pagnell MK16 0JA. Creditors who wish to be represented at the Meeting must submit a proxy form together with their written debt claims the Company due them at Baker Tilly, 5th Floor, Exchange House, 446 Midsummer Boulevard, Central Milton Keynes MK9 2EA not later than 12:00 noon April 6, 2004. CONTACT: BAKER TILLY 5th Floor, Exchange House, 446 Midsummer Boulevard, Central Milton Keynes MK9 2EA BAE SYSTEMS: Dick Olver to Become Non-executive Director -------------------------------------------------------- The Board of BAE Systems plc has agreed that Dick Olver will be appointed a non-executive Director of the Company on 17 May 2004 and will succeed Sir Richard Evans as Chairman on 1 July 2004. Sir Richard Evans will retire from the Board on 1 July 2004. Mr. Olver is currently Deputy Chief Executive of BP plc. and Senior Independent Director of Reuters Group plc. BAE is hoping Mr. Olver's appointment will head off criticism that the company has not enough big project experience at board level, according to The Telegraph. BOXCLEVER: Creditors' Squabble Holds up Sale Process ---------------------------------------------------- A demand set by a minority shareholder of BoxClever is stalling the sale of the company to a New York-based private equity firm, a Reuters source said. Fortress Investment Group LLC has offered GBP300 million for the troubled British television rental firm BoxClever. But the process is being hampered by disagreements on how to divide the proceeds of the transaction. "If WestLB were sole owners the parties could close the value gap and sell BoxClever next week," said a source close to the sale, according to the report. The German bank together with French bank CDC IXIS and Canadian Imperial Bank of Commerce acquired BoxClever for GBP900 million from Terra Firma and Granada in a disastrous securitized deal. CDC IXIS, now wants to have a greater share of the sale as recompense for lost investment. "We are still in discussion with Fortress about a bid," said Tony Lomas, BoxClever receiver and partner at international accountants PricewaterhouseCoopers. "The deal is not yet acceptable to me as the vendor," he added. A GBP480 million loan to BoxClever had forced WestLB to set aside EUR500 million (GBP351.5 million) in provision for the refinancing. CABLE & WIRELESS: Court Junks Class Action Litigation ----------------------------------------------------- Cable and Wireless plc disclosed Monday that in relation to the securities class action pending against the company and several of its former officers and directors (collectively the Defendants), the U.S. District Court for the Eastern District of Virginia has issued orders in respect of motions filed by the Defendants. The Court orders state in summary that: (a) The Defendants' motions to dismiss the consolidated class action complaint are granted; (b) The motion of Sir Ralph Robins, the company's former chairman, to dismiss the claims against him for lack of personal jurisdiction is granted; (c) The Defendants' alternative motions to dismiss the claims of foreign (non-U.S.) purchasers for lack of subject matter jurisdiction are denied. Cable and Wireless plc cannot comment further at this stage on the effect of these orders without the Court Memorandum of Opinion setting forth the reasons for the orders. The Court indicated that this would be forthcoming, although no time frame has been set, and Cable and Wireless plc will provide a further announcement when it is issued. CONTACTS: CABLE AND WIRELESS Investor Relations: Louise Breen Director Phone: +44 20 7315 4460 Virginia Porter VP Investor Relations, New York Phone: +1 646 207 6570 Craig Thornton Manager Investor Relations Phone: +44 20 7315 6225 Media: Peter Eustace Head of Media Relations Phone: +44 20 7315 4495 CANARY WHARF: CWG Acquisition Offer Open Until April 2 ------------------------------------------------------ CWG Acquisition announces that the Offer has been extended for a period of 10 days and will therefore remain open for acceptance until 3:00 p.m. (London time) 10:00 a.m. (New York time) on April 2, 2004. CWG Acquisition also announces that, as at 3:00 p.m. on March 23, 2004, being the first closing date of the Offer, valid acceptances had been received in respect of a total of 124,664,313 Canary Wharf Shares, representing approximately 21.3% of the issued share capital of Canary Wharf. The total of valid acceptances received as at 3:00 p.m. on March 23, 2004 referred to above includes acceptances received in respect of 105,843,338 Canary Wharf Shares held by concert parties of CWG Acquisition (or by persons who may be deemed by the Panel to be acting in concert with CWG Acquisition). Acceptances relating to 105,713,539 of such Canary Wharf Shares are pursuant to irrevocable undertakings given by Trilon and RF Holdings described in the Offer Document. At the start of the Offer Period (which began on June 6, 2003): (i) CWG Acquisition did not hold or have any rights over any Canary Wharf Shares; (ii) concert parties of CWG Acquisition held or had rights over 52,864,899 Canary Wharf Shares representing approximately 9.0% of the issued share capital of Canary Wharf; and (iii) Mr. Paul Reichmann and the Reichmann Interests, who may be deemed by the Panel to be acting in concert with CWG Acquisition, held or had rights over 51,915,085 Canary Wharf Shares representing approximately 8.9% of the issued share capital of Canary Wharf. Between June 6, 2003 and March 22, 2004 (being the latest practicable date prior to the date of this announcement): (i) CWG Acquisition has not directly acquired any Canary Wharf Shares but has, pursuant to the irrevocable undertakings described in the Offer Document, acquired rights over 145,677,257 Canary Wharf Shares, representing approximately 24.9% of the issued share capital of Canary Wharf. The irrevocable undertaking given by Franklin Mutual representing 39,963,718 Canary Wharf Shares has now lapsed and, therefore, CWG Acquisition has, at the date of this announcement, rights over 105,713,539 Canary Wharf Shares, representing approximately 18.1% of the issued share capital of Canary Wharf; (ii) Trilon has acquired 1,048,454 Canary Wharf Shares representing approximately 0.18% of the issued share capital of Canary Wharf; (iii) other concert parties of CWG Acquisition have acquired 1,036,516 Canary Wharf Shares representing approximately 0.18% of the issued share capital of Canary Wharf and disposed of 877,757 Canary Wharf Shares representing approximately 0.15% of the issued share capital of Canary Wharf, none of such acquisitions and disposals being connected with the Offer; and (iv) Mr. Paul Reichmann and the Reichmann Interests, who may be deemed by the Panel to be acting in concert with CWG Acquisition, have reorganized certain of their arrangements in relation to the 51,915,085 Canary Wharf Shares referred to above (as more particularly described in the Offer Document). The shareholdings and dealings of Lehman, financial adviser to Mr. Paul Reichmann and the Reichmann Interests, remain as stated in the Offer Document. Save as disclosed above, neither CWG Acquisition, nor any person who was or may have been deemed to be acting in concert with CWG Acquisition, held any Canary Wharf Shares or rights over Canary Wharf Shares before the start of the Offer Period, nor have they acquired or agreed to acquire any Canary Wharf Shares or rights over Canary Wharf Shares since that date. CWG Acquisition is continuing to consider its options following the announcement by Silvestor of its revised offer on March 19, 2004. Canary Wharf Shareholders are again reminded that the Revised Silvestor Proposal is to be effected by way of a scheme of arrangement. Accordingly, the Revised Silvestor Proposal requires the approval at: (i) a court meeting of a majority in number of Canary Wharf Shareholders eligible to vote representing not less than 75% in value of Canary Wharf Shareholders eligible to vote; and (ii) an extraordinary general meeting of a special resolution which must be passed by not less than 75% of Canary Wharf Shareholders, in each case, present and voting in person or by proxy. Canary Wharf Shares controlled by the Glick Entities, representing approximately 14.5% of the issued share capital of Canary Wharf, cannot be voted at the court meeting to approve the scheme of arrangement to effect the Revised Silvestor Proposal. Trilon and RF Holdings, which are together interested in approximately 18% of the issued share capital of Canary Wharf (which represents approximately 21% of the issued share capital of Canary Wharf eligible to vote at the court meeting), are irrevocably committed to vote against, or procure that their shares are voted against, any offer for Canary Wharf by Silvestor (including the Revised Silvestor Proposal), whether such proposal is to be effected by way of a scheme of arrangement or an offer and regardless of the offer price, prior to December 31, 2004. On the assumption that all Canary Wharf Shareholders eligible to vote do so in respect of all of their Canary Wharf Shares, approximately 95% of the remaining Canary Wharf Shareholders would have to vote in favor of the Revised Silvestor Proposal for it to succeed. CWG Acquisition is pleased to note the announcement by Canary Wharf of the result of the Rule 16 EGM held on March 22, 2004 confirming the approval by Canary Wharf Shareholders of the proposed investment by Canary Investments in CWG Acquisition Holdings and the proposed management and consultancy arrangements relating to Mr. Paul Reichmann. Canary Wharf Shareholders who have not yet accepted the Offer and who wish to do so are encouraged to complete and return the Form of Acceptance, whether or not their Canary Wharf Shares are held in uncertificated form (i.e. in CREST), by post or (during normal business hours) by hand to Computershare Investor Services PLC, PO Box 859, The Pavilions, Bridgwater Road, Bristol BS99 1XZ or (during normal business hours) by hand only to Computershare Investor Services PLC, 7th Floor, Jupiter House, Triton Court, 14 Finsbury Square, London EC2A 1BR, as soon as possible and, in any event, so as to arrive no later than 3:00 p.m. (London time)/10:00 a.m. (New York time) on April 2, 2004. Terms defined in the Offer Document have the same meaning in this announcement. CONTACT: CANARY WHARF Brascan Katherine Vyse Phone: +1 (416) 363 9491 DEUTSCHE BANK Debbie Robertson-Bond David Church James Agnew Phone: +44 (0) 20 7545 8000 MERRILL LYNCH INTERNATIONAL Kevin J. Smith Michael Profenius Mark Brooker Phone: +44 (0) 20 7628 1000 THE MAITLAND CONSULTANCY Angus Maitland Philip Gawith Martin Leeburn Phone: +44 (0) 20 7379 5151 CORE AFFINITY: Encore Marketing Appoints Moore Stephens Receiver ---------------------------------------------------------------- Name of Company: Core Affinity Marketing Limited Reg No 04068650 Trading Name: Core Affinity Marketing Limited Previous Name of Company: Encore Affinity Marketing Limited Nature of Business: 7487-Other Business Activities Trade Classification: Marketing Date of Appointment of Joint Administrative Receivers: March 12, 2004 Name of Person Appointing the Joint Administrative Receivers: Encore Marketing International Inc. Joint Administrative Receivers: MOORE STEPHENS 1 Snow Hill, London EC1A 2EN Receivers: Mark Shaw Jeremy Willmont (Office Holder Nos 8893, 9044) DELTA DORIC: National Westminster Bank Names Menzies Receiver ------------------------------------------------------------- Name of Companies: Delta Doric Plc Delta Doric Services Limited Reg No 787225 Reg No 2718757 Trading Names: Delta Doric Plc Delta Doric Services Limited Nature of Business: Facilities Management Trade Classification: SIC Code: 4525 SIC Code: 7487 Date of Appointment of Joint Administrative Receivers: March 11, 2004 Name of Person Appointing the Joint Administrative Receivers: National Westminster Bank plc. Joint Administrative Receivers: MENZIES CORPORATE RESTRUCTURING 17-19 Foley Street, London W1W 6DW Receivers: Andew Gordon Stoneman Paul John Clark (Office Holder Nos 8728, 8570) ENVAIR LIMITED: In Administrative Receivership ---------------------------------------------- Name of Company: Envair Limited Nature of Business: Design, Manufacture, Construction and Servicing of Clean Air and Containment Solutions for Research, Healthcare, Biotechnology and Pharmaceutical Sectors Trade Classification: 11 Date of Appointment: March 11, 2004 Joint Administrative Receiver: DTE HOUSE Hollins Mount, Bury, Lancashire BL9 8AT Receivers: J M Titley A Poxon (IP Nos 8617, 8620) EUROTUNNEL PLC: Philippe Bourguignon to Replace Retiring Chair -------------------------------------------------------------- Philippe Bourguignon will be appointed Chairman of the Eurotunnel Joint Board from 29 October 2004, when Charles Mackay is due to retire. Subject to his election as a Director of the Board at the forthcoming Annual General Meetings, Philippe Bourguignon will initially be appointed Chairman of the Board of Eurotunnel S.A., the French company of the bi-national group, and Vice-Chairman of the Eurotunnel Joint Board. Richard Shirrefs will remain Chief Executive of the Group, Eurotunnel S.A. and Eurotunnel plc. After a six-month transitional period to ensure continuity and stability, Philippe Bourguignon will replace Charles Mackay as Chairman of the Eurotunnel Joint Board following its meeting on October 29, 2004. Philippe Bourguignon brings a wealth of management experience at the highest level with a strong background in tourism and corporate restructuring. His international experience and commitment will be a major asset to Eurotunnel and will bring additional credibility to relations with industry partners and shareholders. The appointment of Philippe Bourguignon reinforces Eurotunnel's plan to find a long-term solution to Eurotunnel's financial problems in the form of its Galaxie Project, which seeks to address the structural problems of the cross-Channel rail industry. Charles Mackay, Chairman of the Joint Board, said: "I am delighted that Philippe Bourguignon is joining us to reinforce our Board of Directors, and that he has agreed to succeed me when I retire at the end of October. With the company facing a critical period, Philippe Bourguignon's appointment will further strengthen the already very bi-national makeup of the Board. "Philippe Bourguignon is a good communicator with excellent personal skills. He has the ability to unite people around ambitious projects, and to foster a company's international expansion and renown." Richard Shirrefs, Chief Executive, said: "I am convinced that the appointment of Philippe Bourguignon will be a major asset and that with him, we will succeed in meeting the challenges which confront us." CONTACT: EUROTUNNEL PLC Media Inquiries: Kevin Charles Phone: + 44 (0) 1303 288728 Brunswick Group Giles Croot Phone: + 44 (0) 20 7404 5959 Investor Inquiries: Xavier Clement Phone: + 33 1 55 27 36 27 FINGERPRINTS OF ELVIS: Hires Administrative Receiver ---------------------------------------------------- Name of Company: Fingerprints of Elvis Limited Nature of Business: Providers of Exhibitions in Liverpool Trade Classification: 39 Date of Appointment: March 10, 2004 Joint Administrative Receiver: Robert M Rutherford Jonathan R Booth (IP Nos 6852, 7486) 44 Old Hall Street, Liverpool L3 9EB HAYES SERVICE: Velvetone Limited Appoints Receivers --------------------------------------------------- Name of Company: The Hayes Service Station Ltd Reg No 4045551 Nature of Business: Service Station Trade Classification: 5151 Date of Appointment of Joint Administrative Receivers: March 1, 2004 Name of Person Appointing the Joint Administrative Receivers: Velvetone Limited Joint Administrative Receivers: M T Coyne M D Hardy (Office Holder Nos 6575, 9160) ISOTROPIC TECHNOLOGY: In Administrative Receivership ---------------------------------------------------- Name of Company: Isotropic Technology Limited (t/a Isotec) Nature of Business: Layers of Industrial Concrete Registered Office of Company: Unit 2, Barn Farm, Swinford Road, Catthorpe, Leicestershire LE17 6DG Date of Appointment: March 12, 2004 Joint Administrative Receiver: F A SIMMS & PARTNERS PLC 39 Station Road, Lutterworth, Leicestershire LE17 4AP Receiver: A R Limb (IP No 8955) MOORE STEPHENS Beaufort House, 94-96 Newhall Street, Birmingham B3 1PB Receiver: N Price (IP No 8778) LOGCOM GROUP: Meeting of Creditors Set April 2 ---------------------------------------------- Name of Companies: Logcom Group PLC Logcom Solutions Limited MICG Limited People In Pictures Limited Status Group Management Limited There will be a Creditors Meeting of these Companies on April 2, 2004 at 10:00 a.m. It will be held at Crowne Plaza Hotel, Wellington Street, Leeds LS1 4DL. Creditors who want to be represented at the Meeting must complete a proxy form together with written details of debt claims the Company due them at PricewaterhouseCoopers LLP, Benson House, 33 Wellington Street, Leeds LS1 4JP not later than 12:00 noon April 1, 2004. CONTACT: PRICEWATERHOUSECOOPERS LLP Benson House, 33 Wellington Street, Leeds LS1 4JP Contact: E Klempka, Joint Administrator T Underwood, Joint Administrator Phone: [44] (113) 289 4000 Fax: [44] (113) 289 4460 Web site: http://www.pwcglobal.com NTT DOCOMO: Liquidates Local Subsidiaries ----------------------------------------- NTT DoCoMo, Inc. announced that it made a decision to liquidate DCM Capital LDN (U.K.) Limited, DCM Capital HKG (U.K.) Limited and DCM Capital 3G HKG (U.K.) Limited, each of which is a wholly owned subsidiary of DoCoMo. Details of the decision are: (a) Outline of the Subsidiaries (i) DCM Capital LDN (U.K.) Limited Company name: DCM Capital LDN (U.K.) Limited Address: 5th Floor Lansdowne House, 57 Berkeley Square, London, W1J 6ER, United Kingdom Representative: Masayuki Hirata Business: Intermediate holding company to hold shares of Hutchison 3G U.K. Holdings Limited ('H3G U.K.') Date established: August 2000 Capital: GBP1,206,525,536 Number of shares issued: 1,206,525,536 shares Fiscal year-end: December 31 Number of employees: None Major business partner: None Shareholders: 100% owned by DoCoMo (ii) DCM Capital HKG (U.K.) Limited Company name: DCM Capital HKG (U.K.) Limited Address: 5th Floor Lansdowne House, 57 Berkeley Square, London, W1J 6ER, United Kingdom Representative: Masayuki Hirata Business: Intermediate holding company to hold shares of Hutchison Telephone Company Limited (HTCL) Date established: May 2001 Capital: US$34,174,190 Number of shares issued: 34,174,190 shares Fiscal year-end: December 31 Number of employees: None Major business partner: None Shareholders: 100% owned by DoCoMo (iii) DCM Capital 3G HKG (U.K.) Limited Company name: DCM Capital 3G HKG (U.K.) Limited Address: 5th Floor Lansdowne House, 57 Berkeley Square, London, W1J 6ER, United Kingdom Representative: Masayuki Hirata Business: Intermediate holding company to hold shares of Hutchison 3G HK Holdings Limited ('H3G HK') Date established: July 2001 Capital: US$147,947 Number of shares issued: 147,947 shares Fiscal year-end: December 31 Number of employees: None Major business partner: None Shareholders: 100% owned by DoCoMo (b) Reasons for Liquidation (i) DCM Capital LDN (U.K.) Limited DCM Capital LDN (U.K.) Limited was established as an intermediate holding company in the United Kingdom to hold the shares of H3G U.K. when DoCoMo invested in H3G U.K. In order to reduce operational costs, DoCoMo decided to liquidate the intermediate holding company. (ii) DCM Capital HKG (U.K.) Limited DCM Capital HKG (U.K.) Limited was established as an intermediate holding company in the United Kingdom to hold the shares of HTCL when DoCoMo invested in HTCL. In order to reduce operational costs, DoCoMo decided to liquidate the intermediate holding company. (iii) DCM Capital 3G HKG (U.K.) Limited DCM Capital 3G HKG (U.K.) Limited was established as an intermediate holding company in the United Kingdom to hold the shares of H3G HK when DoCoMo invested in H3G HK. In order to reduce operational costs, DoCoMo decided to liquidate the intermediate holding company. (c) Schedule Each liquidation is expected to be completed during the fiscal year ending March 31, 2005. (d) Impact on DoCoMo's Results of Operations The liquidation is not expected to have significant impact on DoCoMo's consolidated or non-consolidated results of operations. The liquidation does not affect the forecast of DoCoMo's results of operations for the fiscal year ending March 31, 2004. About NTT DoCoMo NTT DoCoMo is the world's leading mobile communications company with more than 47 million customers. The company provides a wide variety of leading-edge mobile multimedia services. These include i-mode(R), the world's most popular mobile internet service, which provides e-mail and internet access to over 40 million subscribers, and FOMA(R), launched in 2001 as the world's first 3G mobile service based on W-CDMA. In addition to wholly owned subsidiaries in Europe and North America, the company is expanding its global reach through strategic alliances with mobile and multimedia service providers in Asia- Pacific, Europe and North America. NTT DoCoMo is listed on the Tokyo (9437), London (NDCM), and New York (DCM) stock exchanges. For more information, visit http://www.nttdocomo.comi-mode and FOMA are trademarks or registered trademarks of NTT DoCoMo, Inc. in Japan and other countries. NTT DoCoMo's FOMA service is available only to subscribers in Japan. CONTACT: NTT DOCOMO, INC. Public Relations Department Susumu Takeuchi Phone: +81-3-5156-1366 (9:30-19:00 Japan Standard Time) Fax: +81-3-5501-3408 E-mail: press_dcm@nttdocomo.com Web site: http://www.nttdocomo.com POOL END: Appoints Begbies Traynor Administrative Receiver ---------------------------------------------------------- Name of Company: Pool End Estates Ltd Nature of Business: Development and Sell Real Estate Trade Classification: 7011 Date of Appointment: March 11, 2004 Administrative Receiver: BEGBIES TRAYNOR Elliot House, 151 Deansgate, Manchester M3 3BP Receivers: S L Conn P Stanley (IP Nos 001762, 008123) ROYAL & SUNALLIANCE: Board Proposes Scrip Dividend Scheme --------------------------------------------------------- Subject to shareholder approval at the AGM on May 28, 2004, the Company is offering shareholders the opportunity to take new ordinary shares, credited as fully paid, in lieu of cash dividends, by participating in a Scrip Dividend Scheme. In relation to the final dividend for 2003, the price of new ordinary shares under the Scrip Dividend Scheme has been set at 83p. This is the average of the Company's middle market closing price for the five consecutive dealing days commencing on the ex-dividend date of March 17, 2004. Shareholders wishing to participate in the proposed Scrip Dividend Scheme should return their mandate forms to Lloyds TSB Registrars to arrive no later than May 10, 2004. CONTACT: ROYAL SUNALLIANCE GROUP PLC Lloyds TSB Registrars Phone: 0870 241 3018 or +44 (0) 121 415 7047 if calling from overseas Jackie Fox Phone: +44 (0) 20 7569 6042 SSL INTERNATIONAL: Chief Executive to Resign Next Month ------------------------------------------------------- SSL Chief Executive Brian Buchan, who was hired to turn around the company, will step down April 1, the executive announced in a joint statement with the board. He will be replaced by departure Garry Watts, currently Managing Director of the Group's European Operations and Group Finance Direct. The company was previously involved in a scandal involving sales and profits overstatement. The Serious Fraud Office absolved the company of wrongdoings but charged former executives. The company is currently selling its medical division to focus on consumer brands. TELECOM 4 LIMITED: Hires Wilson Pitts as Administrative Receiver ---------------------------------------------------------------- Name of Company: Telecom 4 Limited Nature of Business: Supplier of Telephone Lines Trade Classification: 6420 Date of Appointment: March 11, 2004 Joint Administrative Receiver: WILSON PITTS Glendevon House, Hawthorn Park, Coal Road, Leeds LS14 1PQ Receivers: D F Wilson J N R Pitts (IP Nos 703, 7851) WASA INTERNATIONAL: Appoints Liquidator from Baker Tilly -------------------------------------------------------- Name of Companies: Wasa International (U.K.) Insurance Co. Ltd Wasa (U.K.) Holdings Ltd At an Extraordinary General Meeting of these Companies on March 11, 2004 held at SE-106, 50 Stockholm, Sweden, the Special and Extraordinary Resolutions to wind up the Company were passed. Geoffrey Lambert Carton-Kelly of Baker Tilly, The Clock House, 140 London Road, Guildford, Surrey GU1 1UW has been appointed the Liquidator of the Companies. Creditors of the Wasa (U.K.) Holdings Limited are asked to submit their particulars including written details of their debt claims the Company due them to the Liquidator, Mr. G L Carton-Kelly of Baker Tilly, The Clock House, 140 London Road, Guilford, Surrey GU1 1UW not later than 12:00 noon April 12, 2004. CONTACT: BAKER TILLY Clock House, 140 London Road, Guilford, Surrey GU1 1UW Contact: Geoffrey Lambert, Liquidator Carton-Kelly, Liquidator YORK AND FORD: Royal Bank of Scotland Names PwC Receiver -------------------------------------------------------- Name of Company: York and Ford Paper Limited Reg No 01965568 Previous Name of Company: Quadstone Limited Nature of Business: Manufacture of Paper and Paper Board Trade Classification: 2112 Date of Appointment of Joint Administrative Receivers: March 10, 2004 Name of Person Appointing the Joint Administrative Receivers: The Royal Bank of Scotland Commercial Services Joint Administrative Receivers: PRICEWATERHOUSECOOPERS LLP Donington Court, Pegasus Business Park, Castle Donington, East Midlands DE74 2UZ Receivers: Stuart David Maddison Robert Jonathan Hunt (Office Holder Nos 1338, 8597) ********* 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. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *