/raid1/www/Hosts/bankrupt/TCREUR_Public/040519.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
Wednesday, May 19, 2004, Vol. 5, No. 98
Headlines
F I N L A N D
BENEFON OYJ: First-quarter Sales Flat; Net Income EUR11 Million
BENEFON OYJ: Sets Annual General Meeting May 28
F R A N C E
RHODIA SA: Blames 171% Rise in Losses to Higher Interest Expense
G E R M A N Y
HEIDELBERGCEMENT AG: Narrows Operating Loss to EUR33 Million
MG TECHNOLOGIES: New Manufacturing Technology to Cut Cost by 10%
MTU AERO: Well-positioned for Upturn in Engine Orders
WCM GROUP: Kempen & Co. Rates Share 'Strong Buy'
H U N G A R Y
PANNONPLAST RT: Closes Moldin Production Plant in Szombathely
I T A L Y
FIAT SPA: Relaxes Requirement for Appointment of Auditor
FINMATICA SPA: Reports EUR105.4 Million Loss for 2003
PARMALAT FINANZIARIA: Pre-tax Earnings Up to EUR56.4 Mln
PARMALAT FINANZIARIA: Moving Assets, Liabilities to New Firm
PARMALAT FINANZIARIA: Hires Close Brothers as Financial Adviser
PARMALAT FINANZIARIA: Amends Bylaws to Better Protect Investors
PARMALAT FINANZIARIA: Intends to Keep U.S. Operations
N E T H E R L A N D S
MILACRON INC.: Bares Terms of US$225 Million Notes
S W I T Z E R L A N D
ASCOM: Elects Juhani Anttila Board Chairman
U N I T E D K I N G D O M
AVECIA GROUP: Authorizes NARD to Use Technology in Japan
BELLWALK LIMITED: Meeting of Unsecured Creditors Set June 14
BILL CARVER: Hires Crawfords Administrator
BRK INTERNATIONAL: Barclays Bank Appoints PwC Receiver
BROADFIELD BATHROOMS: Brings in Receiver from O'Hara & Co
CANARY WHARF: CWG Urges Shareholder to Drop Songbird's Offer
CANARY WHARF: Songbird to Account Simon Glick Shareholding
COURTS PLC: Secures Refinancing for Singaporean Business
DAVIES BROOK: Lloyds TSB Bank Appoints Receivers
EQUITABLE LIFE: EMAG Says Treasury Still in Denial
FBI LTD: Creditors Meeting Set May 27
FLOMAT BAGFILLA: In Administrative Receivership
H & F ELASTOMERS: Appoints Tenon Recovery Administrator
NEVRON LIMITED: Hires Receiver from Unique Business Finance
SAPPHIRE INTERNATIONAL: SME Appoints Tenon Recovery Receiver
SLAMMERS SEAFOOD: Appoints P&A Partnership Administrator
SS REALISATIONS: Cattles Invoice Appoints BWC Business Receiver
TECHFILL LIMITED: Appoints PKF Administrator
VALLEYHILL BARS: In Administrative Receivership
WOODMILL ENGINEERING: Hires Moore Stephens Administrator
*********
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F I N L A N D
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BENEFON OYJ: First-quarter Sales Flat; Net Income EUR11 Million
---------------------------------------------------------------
The final stages of the reorganization and related arrangements
dominated the activities in the period. On January 26, 2004,
the Board called an extraordinary general meeting to handle the
company decisions needed in the reorganization package,
including amending the bylaws, decreasing the share capital,
directing share and convertible equity bond loan issues to K-
share holders, creditors, shareholders, personnel and investors,
election of a new Board, canceling the old share issue
authorization and providing new authorization to the Board and
raising a capital loan.
The extraordinary general meeting, held on February 26, 2004,
approved unanimously the package proposed by the Board. The
details of the package handled by the general meeting in
February 26, 2004 as well as information about the
reorganization program were made public in market bulletins
issued on January 26, 2004 and February 27, 2004, in the listing
prospectus made public on February 9, 2004 and in the result
report bulletin of February 19, 2004.
The district court of Turku decided on March 19, 2004 to confirm
the reorganization program proposed to the company. With this
decision came in force also the financial statements of FY2002
and financial statements of the interim reports of FY2003, all
of which were made conditional to the confirmation of the
reorganization program.
The cash situation of the company in the period continued to be
very tight until the realized investment connected with the
reorganization package. Equity placements totaling EUR2 million
were paid to the company by March 26, 2004 and corresponding
share capital increases were registered in the beginning of
April. The company has also prepared interim financial
statements dated March 19, 2004 according to which the
shareholders' equity meets the requirements of the company's
act. Acknowledging also the cash flow projection based on the
reorganization plan, including the said equity funding, the
financial statements of the company can again be construed with
the going-concern principle.
Sales, Marketing and Business Development
The business of the Company is to offer mobile telematics
terminals, software and solutions for securing lives and
property and for improving field management. The range of
terminals covers personal security and field management
applications, vehicular and machine communications (M2M)
applications as well as asset tracking.
Mobile telematics sales are directed to about 30 countries and
the company received several new customers in the first quarter.
The share of mobile telematics of all sales was about 85%.
In the reporting period, the company introduced to the market
terminals Benefon Track Pro NT2.0, Benefon Seraph NT2.0 and
Benefon Track One NT2.0. The objective is to continue the
introduction of new terminals, software products and product
versions to the market.
Financial Performance in the Period
The sales in quarter January-March/2004 were almost same as net
sales in the prior quarter. Uncertainty among the customers
about getting the reorganization solution, especially regarding
larger supply projects, interfered with the sales. The company
has implemented strong cost-cutting measures including on-going
forced leaves. On the other hand, the reorganization procedure
increased costs. Customer service, production, sales and
marketing, however, have functioned normally.
The net sales of the company in January-March 2004 were EUR1.658
million, when they were EUR1.663 million in the preceding
quarter October-December 2003. The net sales in the same
quarter January-March 2003 a year before were EUR1.633 million.
The operating result in period January-March 2004 before one-off
items was -EUR746 million. The comparable figure in the
previous quarter October-December 2003 was -EUR981 million and
in the same quarter January-March 2003 a year before was
-EUR1,922 million. The interim financial statements on March
31, 2004 include booked extraordinary income totaling EUR12.459
million from the debt cutting in the confirmed reorganization
program. The net result in period January-March 2004 was
EUR11.736 million.
The total of the balance sheet at the end of period January-
March 2004 was EUR6.951 million. The total of the balance sheet
at the end of the previous quarter October-December 2003 was
EUR6.154 million and at the end of the same period January-March
2003 a year before it was EUR15.354 million. The amount of
shareholders' equity at the end of January-March 2004 was
EUR2.373 million, or 34%, when at the end of prior quarter
October-December 2003 it was -EUR12.154 million, or -197%. The
interest-carrying net debt was EUR1.570 million.
The total liabilities at the end of the period January-March
2004 were EUR4.536 million, when they were EUR18.267 million at
the end of the prior quarter October-December 2003 and EUR21.707
million at the end of the same quarter January-March 2003 a year
before. Of the total liabilities at the end of January-March
2004, non-current liabilities were EUR1.863 million and current
liabilities EUR2,673 million. Cash at hand and in the banks at
the end of the period was EUR1.025 million.
Included in the interim financial statements are the implemented
debt cutting and conversion of the convertible bond loan 2003A
mostly into shares of the company, with the residual of the bond
loan having been cut according to the reorganization program and
booked as income. In addition, the equity placements into
shares of the company and capital loan, totaling EUR2 million,
have also been booked. Altogether, the re-organization solution
and the connected equity placements have changed the balance
sheet of the company essentially.
Report on Sufficient Liquidity in Period April 2004 - June 2005
The account on the sufficient cash flow provided hereinafter is
based on a business plan construed on the basis of the confirmed
reorganization program. The quarterly sales making a central
element of the operating result, the starting point of the
account, have been estimated to grow in the reported period.
The present order stock does not make a significant part of the
estimated sales in the period. The account includes the
realized equity placement and the arrangement of the
reorganization debt.
Cash flow account of period April 2004 - June 2005/EUR1,000
Operating result before extraordinary items -697
Depreciations 600
Reduction of current receivables 0
Reduction of inventories 1,995
Change of non-interest bearing debt -177
Payment of re-organization debt -456
Paid interests -100
Investments -150
Paid share issue 0
Extraordinary income 0
Reservation for re-org expenses 0
Change of interest bearing debt 0
Change of cash at hand 1,015
Should the future development deviate from current information,
it may significantly affect the construed cash flow account.
Changes in Shareholders' Equity March 31, 2004 /EUR1,000
Total
Share Share-
Share premium Capital Other holders
capital fund loans equity equity
------- ------- ------- ------ -------
Jan/1/2004 6,371 22,273 1,750 -42,289 -11,895
CBL 2003A
conversions 222 1,523 -1,750
Reduction of
sh. capital -6,352 6,352
K-shareholder
issue 45 -45
Debt conversion
issue 106 692
Investor
share issue 775 -256
Investor bond
loan issue 1,130
Capital loan 350
Result 1.1 31.3.2004 11,713
Shareholders
equity
31.3.2004 1,167 24,187 1,480 -24,225 2,609
Investments
The total investments in the period were insignificant.
Personnel
The number of employed personnel in the period January-March
2003 averaged 97. At the end of the period the number of
personnel was 96 when at the end of the prior quarter October-
December 2003 it was 129 and at the end of the same quarter
January-March 2003 a year before it was 151. In January-March
2004, temporary forced leaves touched about 40 people of the
employed personnel.
Future Outlook
The company concentrates on the development of sales of current
and new products in current markets with continuing efforts to
improve operational efficiency. The objective is to reach early
improvements in the profitability and result by means of
increased cost efficiency and sales growth. However, uncertain
sales outlook may adversely affect the financial development of
the company.
Authority of the Board to Issue Equity
The extraordinary general meeting of February 26, 2004 decided
to cancel the authorization provided by the ordinary general
meeting of May 21, 2003, and authorized the Board of Directors,
within the time limit of one year from the meeting granting the
authorization, to decide on the increase of share capital by
rights issue, issue of options or convertible bonds in one or
more installments so that in the issue of convertible bonds or
options or in the rights issue a total maximum of 3,787,786 new
investment shares with a book parity value of EUR0.01 per share
shall be entitled to be subscribed for. Therefore, the share
capital may, based on the authorization, be increased by a
maximum of EUR37,877.86.
The authorization includes the right to deviate from the pre-
emptive right of the shareholders, referred to in Chapter 4,
Section 2 of the Companies Act, to subscribe for new shares,
convertible bonds or options and the right to decide on prices
of the subscriptions, those entitled to subscription, the terms
and conditions of the subscription and the terms and conditions
of the convertible bonds and options. The authorizations may be
used in deviation from the shareholders' pre-emptive right
provided that there is a weighty financial reason from the
company's point of view, such as financing of corporate
acquisition or other arrangement relating to the development of
the company's business operations or strengthening the company's
balance sheet, to do so.
When the share capital is increased by a rights issue on other
basis than convertible bonds or options, the Board of Directors
is authorized to decide that the shares can be subscribed for in
kind, using the right of set-off or on other specific terms.
For the time being, this authority has not been used.
BENEFON OYJ
Juha Kiikeri, CEO
Copies of these financial statements are available free of
charge at http://bankrupt.com/misc/Benefon_Q12004.htm.
CONTACT: BENEFON OYG (Head Office)
P.O. Box 84
Meriniitynkatu 11
FIN-24101 Salo, Finland
Phone: +358-2-77 400
Fax: +358-2-733 2633
Web site: http://www.benefon.com
BENEFON OYJ: Sets Annual General Meeting May 28
-----------------------------------------------
The Board of Directors of Benefon Oyj has decided to convene the
Annual General Meeting of the Shareholders on May 28, 2004 at
10:00 a.m. The General Meeting shall be held in Salo,
Rummunlyojankatu 2, Sininen Talo.
The meeting will take up these matters:
(a) The ordinary matters referred to in article 14 SS of the
Articles of Association
(b) The proposal of the Board to change some details of the
shareholders' rights issue decided on February 26, 2004.
The proposal is, in essence:
The Board proposes that the details of the share issue offered
secondarily to the shareholders of the company, as decided in
the extraordinary general meeting of February 26, 2004,
(shareholder issue) would be amended as:
(i) The decided subscription period June 1-30, 2004 of the
shareholder issue would be postponed over the vacation
period so that it would be in October 2004 at the
latest.
(ii) The general meeting would decide that of the total of
50,290,574 shares offered to the shareholders but
eventually left unsubscribed, could be offered to
outside investors which would correspondingly decrease
the amount of shares reserved for option rights to the
personnel.
Detailed proposals of the Board to the general meeting are
available to the shareholders a week before the meeting, i.e. on
May 21, 2004.
(c) The cancellation of the authorization of the Board and
authorizing the Board to decide about the increase of share
capital
The Board proposes that the general meeting would decide to
cancel the authorization provided on February 26, 2004 and that
it would authorize the Board, within a year from the meeting
granting the authorization, to decide on the increase of share
capital by rights issue, by issue of options or by issue of
convertible bonds in one or more installments so that in the
rights issue or in the issue of convertible bonds or options, in
total a maximum of 23,332,804 new investment shares with a book
parity value of EUR0.01 per share, shall be entitled to be
subscribed for. Therefore, the share capital may, based on the
authorization, be increased by a maximum of EUR233,328.04.
(d) The auditor
The Board of the company is aware that Ernst & Young Oy with Mr.
Tapio Ali-Tolppa, CPA, as responsible auditor, will be proposed
to continue as the auditor of the company.
Documents on view
Copies of the documents concerning the financial statements and
the proposals of the Board of Directors with their appendices
are available for shareholders to view from May 21, 2004 at the
company headquarters in Salo, Meriniitynkatu 11, 24100 Salo.
The company will send copies of these documents to shareholders
upon request.
Right to participate
Shareholder, who has been registered in the company's
shareholder register, maintained by the Finnish Central
Securities Depository Ltd., by May 18, 2003 has the right to
participate in the General Meeting. In addition, shareholder,
whose shares have not been transferred to the book-entry system,
has the right to participate in the General Meeting provided
that the shareholder had been registered in the company share
register before October 7, 1994. In this case the shareholder
must present at the General Meeting his/her share certificate or
other documentation indicating that title to the shares has not
been transferred to the book-entry securities account.
Notice of intention to participate
Shareholder, who wishes to participate in the General Meeting,
must notify the company's head office of his/her participation
not later than 4:00 p.m., May 24, 2004 by telephone: +358-2-
77400 (Minna Suokas), by telefax: +358-2-7332633, in writing to
Benefon Oyj, PL 84, 24101 Salo or by e-mail to
minna.suokas@benefon.fi. Shareholders are requested to deliver
any proxies into the said address within the notice period.
BENEFON OYJ
Board of Directors
Juha Kiikeri, CEO
CONTACT: BENEFON OYG (Head Office)
P.O. Box 84
Meriniitynkatu 11
FIN-24101 Salo, Finland
Phone: +358-2-77 400
Fax: +358-2-733 2633
Web site: http://www.benefon.com
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F R A N C E
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RHODIA SA: Blames 171% Rise in Losses to Higher Interest Expense
----------------------------------------------------------------
Rhodia (NYSE:RHA) published its results for the first quarter of
2004, which were reviewed May 13, 2004 by the Rhodia Board of
Directors.
Simplified income statement for the first quarter of 2004
In millions of EUR
2003 2003
Reported Restated(a) 2004
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
1,428 1,347 Net sales 1,348
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
120 108 EBITDA (before restructuring costs) 124
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
8.4% 8% EBITDA margin
(before restructuring costs) 9.2%
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
112 101 EBITDA (after restructuring costs) 101
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
7.8% 7.5% EBITDA margin
(after restructuring costs) 7.5%
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
9 2 Operating income
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- 63 - Net income (after minorities) - 108
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
(a) Constant structure and exchange rates
Improved EBITDA before restructuring costs
Rhodia reported net sales of EUR1.348 million for the first
quarter of 2004, 5.7% lower than the same period in 2003, a
result primarily of unfavorable exchange rates due to the
continued weakness of the U.S. dollar. On the same basis
(constant structure and exchange rates), net sales generated in
the first quarter of 2004 remained stable compared with the
first quarter of 2003.
The majority of the Group's businesses reported increased
volumes, reflecting strong demand particularly in the United
States and Asia. Additionally, and even though the comparison
of prices between the first quarter 2004 and the same period in
2003 reflects the strong depreciation of the dollar, the price
dynamic was more favorable in a number of markets than during
the second half of 2003. The initial effects of restructuring
plans launched in 2003 reduced fixed costs by EUR22 million
compared to the first quarter of 2003 with a further reduction
of EUR7 million tied to re-capitalization of leasing contracts
at the end of 2003.
Earnings Before Interest, Taxes, Depreciation and Amortization
(EBITDA) before restructuring increased for the second
consecutive quarter to EUR124 million for the first quarter of
2004, up 3.3% compared with the same period in 2003. On the
same basis (constant structure and exchanges rates), EBITDA
increased 14.8% compared to the first quarter of 2003.
After restructuring, EBITDA stood at EUR101 million, down 9.8%
compared with the first quarter of 2003. On the same basis
(constant structure and exchanges rates), it was stable compared
with the same period last year.
The EBITDA margin before restructuring rose to 9.2% in the first
quarter of 2004, compared to 8.4% for the same period in 2003.
Operating income for the first quarter of 2004 stood at EUR4
million against EUR9 million for the same period last year.
Net loss reached -EUR108 million in the first quarter of 2004
compared with -EUR63 million for the same period in 2003. This
decline was due primarily to the very significant rise in
interest expense (EUR40 million) related to the financial
restructuring of the Group.
Analysis of the Group's financial debt
The Group is continuing to tightly manage capital expenditure,
holding investments to EUR40 million during the first quarter of
2004. Due to the seasonal increase in working capital and the
reimbursement of the first half of the private placement with
U.S. investors, the Group's current cash position stood at
EUR409 million at the end of March 2004.
The Group's Net Debt stood at EUR2.892 million at the end of
March 2004. Total Net Debt, including off-balance sheet items,
stood at EUR3.536 million at the end of March 2004, compared
with EUR3.300 million at the end of 2003.
Major steps achieved in Group's action plan
(a) Consolidation of the Group's medium-term financing
As announced previously, the Group achieved major steps in its
refinancing plan with the success of its EUR471 million capital
increase and the issuance of EUR700 million of bonds.
(b) Refocusing of the business portfolio
Since the beginning of the year, Rhodia has achieved divestments
generating approximately EUR400 million of proceeds with an
EBITDA multiple for these transactions substantially greater
than 10. The Group confirms its target of generating more than
EUR700 million from divestments in 2004.
(c) Streamlining of Group structures and cost-cutting measures
The process of streamlining and simplifying Group structures is
continuing on track and on schedule and will enable Rhodia to
generate savings of EUR103 million in 2004. In order to provide
a clearer view of its business activities, Rhodia is now
accounting for and reporting its results around nine Enterprises
into which it reorganized in October 2003.
Outlook
FY2004 remains a year dedicated to transforming the Group.
Supported by a reinforced Board, Rhodia's new senior management
team continues to focus on completing the divestment program and
implementing its cost-cutting actions.
At an operating level, Rhodia should benefit this year from a
slight improvement in the markets it serves. However, raw
materials prices remain high and the exchange rate environment
uncertain. Both this press release and a detailed presentation
of the results are available at http://www.rhodia.com.
Rhodia is a global specialty chemicals company recognized for
its strong technology positions in applications chemistry,
specialty materials & services and fine chemicals. Partnering
with major players in the automotive, electronics, fibers,
pharmaceuticals, agrochemicals, consumer care, tires and paints
& coatings markets, Rhodia offers tailor-made solutions
combining original molecules and technologies to respond to
customers' needs. Rhodia subscribes to the principles of
Sustainable Development communicating its commitments and
performance openly with stakeholders. Rhodia generated net
sales of EUR5.4 billion in 2003 and employs 23,000 people
worldwide. Rhodia is listed on the Paris and New York stock
exchanges.
Copies of these financial statements are available free of
charge at http://bankrupt.com/misc/Rhodia_Q12004.htm.
CONTACT: RHODIA S.A.
Press Relations:
Anne-Laurence de Villepin
Phone: 33 1 55 38 40 25
David Klucsik - North America
Phone: 609-860-3616
Investor Relations:
Nicolas Nerot
Phone: 33 1 55 38 43 08
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G E R M A N Y
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HEIDELBERGCEMENT AG: Narrows Operating Loss to EUR33 Million
------------------------------------------------------------
Financial highlights January to March 2004:
EURm 2003 2004
Turnover 1.222 1.347
Operating income before depreciation (OIBD) 40 90
Operating income -112 -33
Additional ordinary result 13 18
Results from participations -4 2
Earnings before interest and income taxes (EBIT) -103 -13
Profit before tax -163 -83
Profit for the financial year -144 -60
Group share in profit -140 -58
Investments 142 84
The world economic development in the first quarter supports
optimistic expectations for the whole year. Engine for the
upswing are still the U.S. and East Asia. In Germany, the
economic recovery is only gradually beginning to get underway.
The increase in turnover in the first quarter by 10.2% to
EUR1.347 million (previous year: 1.222) is substantially shaped
by the new consolidation of Indocement. A welcome growth in
turnover could be achieved in Central Europe East and by the
maxit Group. In North America, turnover in U.S.-dollar
increased by 12.9%. Adjusted for exchange rate and
consolidation effects, Group turnover improved by overall 5.3%
against the comparable period of the previous year. The
increase in operating income before depreciation (OIBD) to EUR90
million (previous year: 40) is, in addition to the expansion of
the consolidation scope, attributable to first successes in the
revenue improvements aimed for in Central Europe West.
The minus in operating results in the first quarter was only at
EUR-33 million (previous year: -112) since regular goodwill
depreciation no longer apply under IFRS 3.
The additional ordinary result in the amount of EUR18 million
essentially results from the sale of participations. The
results from participations totaling EUR2 million (previous
year: -4) was influenced by positive market and seasonal
developments and effects from consolidation. Exchange rate
losses and interest payables of the newly consolidated companies
mainly led to a decrease of the financial results to -EUR70
million (previous year: -EUR60). Profit before tax rose by
EUR80 million to -EUR83 million (previous year: -EUR163).
Our measures toward debt reduction are being continued in 2004.
In the first quarter of 2004, we continued our concentration on
the core business with the sale of the building chemicals brands
Compakta and Pactan, the Swedish SRS Industry as well as the
participation in the Danish H+H Fiboment. For 2004 overall, we
anticipate net cash from disinvestments of at least EUR250
million.
Emissions trading
The cement industry, as an energy intensive industry, is
included in the European system for trade in CO2 emissions
starting on January 1, 2005. The preparations started with the
definition of the national allocation plans. Due to a
multiplicity of details still to be clarified, the evaluation of
consequences for HeidelbergCement remains difficult. It is
significant that the characteristics of our industry are
considered in order to ensure competitive basic conditions and
to avoid production misalignments.
Cement and clinker sales volumes
Group cement and clinker sales volumes increased in the first
quarter of 2004 to nearly 13 million tons (previous year: 9.4).
Without the effects of consolidations, the increase amounted to
2.5%. The additional quantity of 3.4 million tons related to
consolidation is essentially due to the inclusion of Indocement.
Prospects
The international economic environment has embarked on a course
of expansion. In Germany, early indications of a moderate
recovery are visible. The development in Germany, Asia, Turkey
and Central Europe East provide the greatest contributions to
growth for Heidelberg Cement in 2004.
For the full year 2004, we anticipate clear improvements in
turnover and results. In addition to increases in revenues,
cost reduction and restructuring measures are contributing
elements. Apart from this, the regular depreciation of goodwill
is eliminated starting with the 2004 annual accounts.
The Standard & Poor's and Moody's rating agencies have raised
the outlook assigned to ratings for Heidelberg Cement to stable.
MG TECHNOLOGIES: New Manufacturing Technology to Cut Cost by 10%
----------------------------------------------------------------
Zimmer AG, a subsidiary of mg technologies AG, has devised a new
process that can manufacture blanks for PET bottles 10% more
cheaply than at present. This amounts to a cost saving of
EUR100 per ton of bottle blanks. Approximately 10 million tons
of blanks for PET bottles are manufactured around the world
every year.
"This technological quantum leap offers enormous commercial
benefits to our customers in the fast-growing PET market. As
one of the world's leading providers of equipment and processes
for the production of PET bottles, Zimmer is extending its
technological lead and strengthening its outstanding position in
this market," says Klaus Moll, mg's Executive Board member
responsible for plant engineering.
According to the Association of German Plastics Manufacturers
(VKE), global PET consumption is set to grow by 10% per year
until 2010. In contrast to conventional processes, Zimmer's new
technology realizes the enormous potential for cost savings by
obviating the need for costly production stages. In order to
develop this new production process for use on an industrial
scale, the company has now commissioned a pilot plant with the
capacity to produce approximately 12,000 bottle blanks per year
at its Frankfurt technology center. Zimmer is confident that by
the end of the year it will have won its first contract to build
a plant in which PET bottles are manufactured using its new
process.
Zimmer AG, which is headquartered in Frankfurt am Main, Germany,
is a global leader in the engineering of processes and
industrial plant used to produce synthetic fibers and polymers.
It possesses a number of proprietary processes for the
manufacture, processing and recycling of polymers, synthetic
fibers and thermoplastics.
Mg technologies AG is an international technology group that
focuses on specialty mechanical engineering -- especially
process engineering and components -- and plant engineering.
The company generated sales of roughly EUR6.4 billion excluding
discontinued operations in 2003. At the end of 2003 it employed
around 29,000 people and is one of the world's market and
technology leaders in 90% of its businesses.
CONTACT: MG TECHNOLOGIES AG
Kommunikation
Bockenheimer Landstrasse 73-77
D-60325 Frankfurt am Main
Phone: +49-69-7 11 99-241
Fax: +49-69-7 11 99-112
E-mail: info.mg@mg-technologies.com
Web site: http://www.mg-technologies.com
MTU AERO: Well-positioned for Upturn in Engine Orders
-----------------------------------------------------
MTU Aero Engines, Germany's leading engine manufacturer, has all
the elements for success in the impending economic upturn.
At the press conference the company held at ILA 2004, MTU CEO
Dr. Klaus Steffens was bullish: "We assume that in the two
decades ahead, the number of over 90-seat commercial transports
in revenue service will grow to 20,000 or so, from the 12,000
flying today."
"Its massive investments in research and development have won
the company stakes in major programs like the engine for the
A380 mega-transport and the A318, smallest of the Airbus
siblings. For MTU, the large-engine sector will be the major
revenue generator," he says.
"MTU prognosticators predict that in the next two to three
years, global air traffic will bounce back from its worst crisis
ever, growing at an average rate of almost 5% annually, and
appreciably faster even in Asia. Air cargo is expected to grow
5.7% and regional traffic 6.5%. For the aircraft business,"
according to Dr. Steffens, "90-220-seat transports will
accommodate most of the new demand and figure largest in new
aircraft orders."
One-third of the aircraft orders will be for double-aisle 220-
plus-seat wide-body aircraft and two-thirds for single-aisle
narrowbodies carrying 90-220 passengers. Among the widebodies,
if you believe the forecasts, the demand for 350-plus-seat
transports will in the next two decades grow from now 6% to 12%.
In all this, the emerging A380 mega-transport will be in a class
all by itself. But upgrades of veteran aircraft families like
the Boeing 777 and Airbus A330/340 will also hold their own in
the fray. Demand for 90-120-seat airplanes will remain flat in
the latter half of this decade.
Research & development investments pay dividends
MTU Aero Engines has invested heavily -- also in the years of
crisis -- to help it participate in new engine programs. Last
year, it anted up a record EUR171 million of its own money for
research and development. Add EUR46 million of funded
development plus about EUR10 million for national, Bavarian and
other technology programs. Overall, EUR227 million, or 12% or
MTU's revenues, were invested in research and development.
Since the year 2000, the company has plowed totally EUR450
million from its company funds into research.
Dr. Steffens says: "This year and the year after, we'll again
spend disproportionally large sums for the purpose before our
R&D spending tails off to what you might call a normal level."
Main beneficiaries of the enormous R&D investments are the
GP7000 to power the A380 and the PW6000 for the A318. The
GP7000 has become very popular and snagged the majority of
orders received to date. The PW6000 is currently proving its
worth under testing. All trials are running without a hiccup
and the engine is meeting and in part even beating all
performance and consumption targets. To enhance the market
prospects of the PW6000-powered A318, Airbus is poised for a new
marketing strategy.
Dr. Steffens says: "You take my word for it, as soon as the
A318, equipped with the PW6000, shows what it can do under the
rough conditions of revenue service, there'll be plenty of
airlines wanting to have it."
In the above- 100-seat market, MTU's best bet is the V2500. Over
the years, this IAE engine has become the MTU group's paramount
commercial engine program. A V2500 enhancement program, dubbed
Vista and extensively supported by MTU, is maintaining the
engine's leading position long-term, making sure the engine
satisfies the latest consumption, environmental and life-cycle
cost demands.
On the Airbus A330, MTU has for years had content through
General Electric's CF6-80 engine. MTU's man at the helm
predicts the engine, always brought up to the latest technical
standard, has a profitable future to look forward to. In the
business jet segment, MTU and its partner Pratt & Whitney Canada
have a presence with their advanced, promising engine programs
accommodating the various aircraft sizes across all thrust
categories.
In the engine competition for Boeing's nascent 7E7, Pratt &
Whitney and MTU were unable to score. "Sure we would have loved
to be in on it," the MTU CEO commented. "But we knew Boeing all
along intended to select but two of the three bidders and so we
happened to miss the boat." Dr. Steffens proceeded to add that
considering MTU's healthy financial standing, missing out on
this one wouldn't unsettle the company.
Engine MRO, a good leg to stand on
In the commercial engine sector, MTU Aero Engines is the world's
largest provider of independent engine services. It has
invested heavily to expand its MRO activities and provide a
network of repair shops for its international clientele. To
ensure the group's competitive viability long-term, some of the
affiliates have necessarily been subjected to consolidation
efforts.
MTU's MRO mavens estimate that in the next several years,
commercial engine MRO will grow 5-7% annually. "Already, since
January this year, the market is clearly starting to warm up,"
Dr. Steffens said, who still sees the U.S. setting the pace but
believes that medium- to long-term, Asia will be leading the
upturn. The MTU prognosticators also think that regions still
considered more or less minor markets, such as Latin America and
the Mid-east, will be picking up momentum and surprising
everyone with their disproportionate growth, even if the total
volume of the business they're doing will not immediately
measure up to the numbers in the major industry regions. Still,
to ride the wave of the upswing in these markets, the company
has already launched local affiliates in the regions.
The global MRO market is presently feeling the pain of a brutal
price war triggered by global excess capacities and the enormous
cost squeeze the airlines are experiencing amid soaring fuel
prices and tough competition from the budding low-cost carriers.
For MTU, the situation is aggravated by the low dollar,
considering that the company does most of its business in U.S.
currency. "But we'll no doubt rise to the price challenge," Dr.
Steffens vouched. To do so, he says the company needs optimal
structures and is presently putting them in place.
Military Partners
MTU is firmly positioned as the German lead company in
practically all engine programs pursued by the Bundeswehr.
Here's a rundown of the major programs:
The Eurofighter EJ200 engine is in full-rate production. Some
60% of Tranche 1 have since been completed and the company is
waiting for the Tranche 2 contracts to be awarded.
Dr. Steffens says the decision suffers little delay: "We badly
need to have the contracts signed by midyear so we can begin
with the follow-up production work." The EJ200 program sustains
around 600 jobs at MTU and Dr. Steffens says that some drastic
steps may become inevitable if the contracts are slipped any
further.
"This much is clear," he emphasized, "to shutter the EJ200
production line and reopen it at some later date is more of a
financial burden than MTU can stomach."
On the EJ200, Germany's leading engine manufacturer and the
Bundeswehr are opening new avenues. MTU is the industrial
partner in the industry-military cooperative model of
maintenance, a concept it has helped conceive and shape. Under
this innovative concept, launched a year ago, MTU workers and
Luftwaffe airmen work shoulder-to-shoulder, the formerly
separate repair efforts having been co-located at MTU's Munich
facility. Lumping together their resources, the partners slash
costs and drastically reduce cycle times. The cooperative model
has proved fruitful and seems to be just the ticket for other
engine programs as well, like the RB199, and may moreover prove
an advisable route also for other industries.
The EJ200-powered Eurofighter's first export wins give reason
for optimism: Austria has ordered 18 aircraft, and Greece is
nearing a decision for a 60-aircraft buy. Interest has been
voiced also by other European nations and in Asia.
MTU's other major military engine program is the TP400-D6, which
will equip the Airbus A400M military airlifter. Preparations
for its first run are in full swing. Its first components are
being manufactured and construction of the test cell for the
engine at MTU's Ludwigsfelde facility is advancing rapidly.
August 2005 will then see the first run of what will be the
Western world's most powerful engine. The Ludwigsfelde site
also has final assembly responsibility for all TP400-D6s going
to European customers. Overall, the site has an outstanding role
in the entire engine program. The program is a helpful
contribution to the continued viability and expansion of the
location.
Also the MTR390 for the French-German Tiger combat helicopter is
headed for success. Production of the French and German engines
has been launched and is proceeding smoothly. First export
orders have been landed: Australia and Spain placed orders for
the helicopter. For Spain, a 14% uprated version of the engine,
the MTR390 Enhanced, is being developed. Joining the team is
Spain's engine manufacturer ITP.
At the forefront of technology
MTU's technological emphasis remains on low-pressure turbines
and high-pressure compressors, with engine controls a close
third. In these areas the company has achieved globally
recognized excellence. The high-speed low-pressure turbine the
company developed is a key component in landmark projects like
ATFI and Clean. The Munich-based company has a major role in
both of these technology efforts. Also the GP7000 and PW6000
programs benefit from MTU's excellence in the development and
production of low-pressure turbines.
A real litmus test of MTU's capabilities was the development and
manufacture of a commercial high-pressure compressor for the
PW6000 engine. For this six-stage transonic compressor with the
globally highest stage pressure ratio in its class the company
last year won the 23rd Innovation Award of the German Industry.
MTU has for years had a commanding position in military
compressor work. On the EJ200, it is responsible for the low-
pressure and high-pressure compressors. The Eurofighter engine
also boasts another product of MTU's core competencies, the
digital control unit. The company has since begun work on the
next step along this line, a digital control and monitoring unit
(DECMU). This again is a domain in which Germany's largest
engine manufacturer is setting benchmarks.
MTU is a pacemaker also in many national and European technology
programs, such as Engine 3E, titanium aluminide blade casting
processes or Clean.
Dr. Steffens says: "The testing and maturing of these enabling
technologies is our passport to stakes in engines still in the
pipeline. It secures the company's continued commercial
viability."
With its 8,000 employees, MTU Aero Engines is Germany's leading
engine manufacturer and a global player in the industry. In the
commercial arena, it is the world's largest independent provider
of engine services. In fiscal 2003, the company posted EUR1.9
billion in revenues.
* * *
Standard & Poor's Ratings Services in March assigned its 'BB-'
long-term corporate credit rating to the aircraft engines
manufacturer. The outlook is stable. At the same time, MTU
Aero Engines' secured bank debt was assigned a 'BB-' rating, and
its prospective EUR240 million 10-year senior notes were
assigned a 'B' rating. The latter is two notches below the
corporate credit rating, owing to the notes' subordinated
status.
"The ratings reflect MTU Aero Engines' exposure to the cyclical
civil aviation industry, vulnerability to the weakness of the
U.S. dollar, relatively modest size compared to original
equipment manufacturers, and very aggressive financial profile,"
said Standard & Poor's credit analyst Leigh Bailey.
The group benefits, however, from well-entrenched positions in
key world aircraft markets, privileged relationships with
leading turbine engine manufacturer Pratt & Whitney and the
German ministry of defense, technologically sophisticated
products, and participation in predictable military and civil
spare parts programs.
CONTACT: MTU AERO
Odilo Muhling
Phone: +49 89 1489 2698
Fax: +49 89 1489 8757
Martina Vollmuth
Phone: +49 89 1489 5333
Fax: +49 89 1489 8757
WCM GROUP: Kempen & Co. Rates Share 'Strong Buy'
------------------------------------------------
The Dutch bank Kempen & Co. has upgraded its valuation of the
WCM share from "reduce" to "strong buy."
Analysts cited these factors to justify the upgrade:
(a) The restructure of the business model to the four areas
Residential Properties, Industrial Equity Holdings, Other
Equity Holdings and Commercial Properties;
(b) An improved outlook for 2004 to 2006; and
(c) Adjusted annual financial statements 2003 and increased
transparency.
The analysts are also expecting the selling pressure on the part
of the financing banks in relation to large important
shareholders to come to an end over the next two to three
months. According to the calculations by Kempen, the NNAV
amounts to EUR3.00, the target price for the WCM share is
EUR2.00 and the discounted cash flow is EUR3.00.
=============
H U N G A R Y
=============
PANNONPLAST RT: Closes Moldin Production Plant in Szombathely
-------------------------------------------------------------
During its meeting, Pannonplast's Board of Directors decided to
close the Szombathely-based plant of Moldin Ltd., which has been
making losses for a couple of years. The loss of the
Szombathely-based plant was HUF1 billion last year and it
exceeded HUF220 million in the first quarter of 2004. As a
result of the closure Pannonplast has to lay off 230 employees.
Pannonplast Engineering Plastics plc created by the merger of
Moldin Ltd. and Moldin 2000 plc with its headquarters in
Szekesfehervar (production plants in Szekesfehervar in Budapest)
will continue to be a determining strategic partner of the
company's multinational customers.
The management of Pannonplast had been working on the
restructuring and the efficiency improvement of the
strategically important engineering plastics production in the
past period. Simultaneously to the strategy issues regarding
the future of the engineering plastics production, the analysis
was extended on each plant of the business line including also
Moldin's production plant in Szombathely.
As a result of the intensifying market competition and the
globalization, a number of multinational companies in the
industry have gradually relocated part of their European
production to other regions. As a consequence, in addition to
other related companies, the Szombathely-based Moldin has also
experienced the continuous decrease of its orders in the past
period. Due to the drastic shrinking of the market and as a
result the predictably permanent unfavorable capacity-
utilization, Pannonplast decided on the closure of Moldin's
Szombathely plant. Only taking large losses continuously could
have ensured maintaining the production. The production of
automotive and other products will be transferred to the plant
in Szekesfehervar.
"As part of the reorganization carried out within the framework
of the strategy published on March 24, Pannonplast continuously
evaluates the impacts of the taken measures and depending on the
results it decides on the consolidation and operation of the
production units and production plants. It's a primary
objective that Pannonplast Engineering Plastics Plc created by
the merger of Moldin and Moldin 2000 shall become a balanced,
innovative, permanently profit-making company in well-founded
markets with the optimal utilization of the available machinery,
technology, plants and human resources," Chairman and CEO Csaba
Zoltan said.
=========
I T A L Y
=========
FIAT SPA: Relaxes Requirement for Appointment of Auditor
--------------------------------------------------------
The Fiat Stockholders' Meeting, held Monday, approved the 2003
Annual Report and adopted the amendments to the Articles of
Association, which were made following the enactment of the
reform of corporate law.
The amendments to the Articles of Association that the
Stockholders' Meeting approved Monday include the reduction from
3% to 1% of the minimum equity interest needed to present a
slate of candidates for the appointment of a Statutory Auditor.
A Special Stockholders' Meeting for holders of preference shares
was also held, during which Prof. Oreste Cagnasso, head lecturer
of the Degree Course for Commercial Law at the Economics Faculty
of the Turin University, was appointed as their common
representative.
CONTACT: FIAT COMMUNICATION
Media Relations
Via Nizza 250-Torino
Phone: 011/00.63088
Fax: 011/00.63798
E-mail: mediarelations@fiatgroup.com
FINMATICA SPA: Reports EUR105.4 Million Loss for 2003
-----------------------------------------------------
(a) The adoption of new, more restrictive evaluation criteria
affected the result for the period which, at a consolidated
level, showed a loss of EUR105.4 million (EUR8.2 million
profit in 2002) mainly connected to extraordinary costs
totaling EUR62.7 million and depreciation, amortization and
write-downs totaling EUR35.2 million.
(b) Value of production totaled EUR91.1 million (EUR125.7
million at December 31, 2002).
(c) EBITDA of -EUR4.8 million (EBITDA of +EUR29.3 million in
2002).
(d) EBIT of -EUR39.9 million (EBIT of +EUR17.5 million in
2002).
(e) Goals for 2004: to increase third-party revenues by 23% and
reduce corporate costs by 14% with a positive effect on
income margins.
The Board of Directors of Gruppo Finmatica approved the draft
financial statements as at December 31, 2003 and the 2004-2006
Business Plan.
The 2003 financial statements were drafted using extremely
conservative evaluation criteria due to the situation of the
economy in general and the specific sector, in keeping with
accounting and consolidation principles and reflecting the
guidelines received from the new auditing company
PricewaterhouseCoopers.
The following elements had a negative effect on the consolidated
financial result for the period, which showed a net loss of
EUR105.4 million (EUR8.2 million of net consolidated profit at
December 31 2002):
(i) extraordinary costs totaling EUR62.7 million (they
amounted to EUR5.2 million in 2002),
(ii) depreciation, amortization and write-downs totaling
EUR35.2 million (EUR11.7 million at December 31 2002)
also due to the shorter period of time for amortization
of software licenses (cut from 10 to 5 years) and of
goodwill (cut from 20 to 10 years).
The value of production equaled EUR91.1 million (EUR125.7
million at December 31, 2002) with a drop above all in the
Finance area which was also due to the decision to suspend the
partnership with Loop S.p.A. regarding sales of software
products using the operative leasing formula.
The cost of production totaled EUR131.0 million (EUR108.2
million in 2002) with said increase being mainly down to the
aforementioned EUR23.4 million increase in the depreciation,
amortization and write-downs item.
The consolidated EBITDA showed a loss of EUR4.8 million
(compared to a positive EBITDA of 29.3 million at December 31
2002).
The consolidated EBIT showed a loss of EUR39.9 million (compared
to a positive EBIT of 17.5 million at December 31 2002).
Furthermore Finmatica Real Estate S.p.A. was included in the
2003 consolidated results in spite of the fact that the recently
appointed Board of Directors has confirmed its intention to sell
off its real estate assets. Said consolidation had a total
EUR59.5 million negative effect on the net financial position.
The company's net financial position at December 31, 2003 showed
a loss of EUR221.1 million, EUR141.3 million down on the
-EUR79.9 million figure recorded at December 31 2002 using the
same calculation criteria.
As far as Finmatica S.p.A. is concerned the 2003 financial
results showed a value of production of EUR30.2 million (EUR25.2
million at December 31, 2002) and a loss of EUR43.6 million
which the Board of Directors proposes to cover by using the
entire Extraordinary Reserve and a part of the Share Premium
Reserve.
The Board of Directors decided to call a General Shareholder's
meeting to approve the Financial Statements at December 31 2003
and an Extraordinary Meeting to update the Articles of
Association to comply with Legislative Decree 6/2006. The first
call is for June 29 and the second for June 30 2004.
Business Plan
The Board of Directors also reviewed and approved the 2004-2006
Business Plan drawn up together with Bain & Company.
The 2004 plan provides for a marked reduction in corporate costs
totaling approximately EUR10 million which combined with a
positive upturn in revenues for all the group's areas of
business will result in a major turnaround at EBITDA level.
More specifically the 2004 plan provides for more than a 20%
increase in third-party revenues and a 15% reduction in costs.
For 2005-2006 the plan places the focus on growth strategies
that are differentiated according to business areas:
(i) it provides for greater commercial penetration in the
Finance area backed up by expansion of the products on
Offer,
(ii) it provides for the development of vertical applications
in the Supply Chain Management and TMS area, and in
particular in the pharmaceutical sector, together with a
expansion of the offer to accompany its entry into the
U.S. market,
(iii) it provides for consolidation on the Italian and French
market in the Security area and building up of
leadership on the French market.
2004 forecasts related to 2004-2006 Business Plan
The 2004-2006 Business Plan presented (and drawn up with the
assistance of Bain & Company Italy Inc.) is in keeping with the
figures disclosed on February 25 2004 net of the forecast effect
of capitalization due to increased intangible assets estimated
at approximately EUR12 million.
In fact said difference reconciles both third-party revenues
(EUR86 million) with the value of production (EUR98 million) and
the EBITDA (EUR24 million disclosed in February 2004 compared to
EUR13.2 million disclosed).
Covenants
The two current loan contracts for
(a) EUR31 million (at December 31, 2003),
(b) EUR34 million at December 31, 2003 (currently EUR16 million)
allow for 60 days following the approval of the draft
financial statements to communicate covenants.
Talks involving the banks are already taking place with the aim
of reviewing said parameters in keeping with the Group's
Business Plan. The market will be promptly informed of the
outcome of said talks.
Extraordinary costs - 2003
The net extraordinary costs item totaling EUR62.7 million is:
Costs
Capital loss from extraordinary sales 3.1
Taxation from previous years 7.5
Contingent liabilities 27.6
Restructuring costs 2.4
Miscellaneous 1.7
Reversal of capital gain from sales FRE real estate 2002 7.9
Loop transactions 3.7
Devaluation of shareholding in Intesys 11.7
------
65.6
Income
Capital gain from sales 0.1
Other extraordinary income 0.1
Contingent items 2.3
Transfer of amortizable assets 0.4
------
2.9
Total 62.7
Net financial position
The difference between Finmatica Real Estate's net financial
position disclosed on February 20 2004 (EUR85.0 million) and the
net financial position consolidated in the 2003 financial
statements (EUR59.5 million), equal to EUR25.5 million, is
related to the indebtedness of Immobiliare Cadolini S.r.l. Said
shareholding was consolidated in the net financial position
disclosed on February 20 2004 using the integral method. While
at December 31, 2003 it was consolidated using the net equity
method due to the sale of 5% of the company to Gruppo Pasini,
its other equal-shares partner in Immobiliare Cadolini S.r.l.
Breakdown of main write-downs
The write-downs totaling EUR8.6 million entered in the 2003
financial statements mainly refer to bad debts totaling EUR8.5
million, the most significant of which are the following:
(a) Accounts receivable from Rodenham Partecipation B, settled
with future transfer of the shareholding in Merziario S.p.A.
for EUR5.717,177 million (said credit taken over and settled
with Starfield is to be settled with the future transfer of
a 10% shareholding in Merziario S.p.A.). However given that
said shares were not transferred during 2003 and that
Merziario is currently experiencing difficulties as seen
during the first months of 2004, the debt totaling
EUR5.017,177 million was written off by Finmatica S.p.A.
(b) Accounts receivable from Banco Cash totaling EUR438,534,
Completely written off by Intesis
(c) Accounts receivable from RAD Informatica S.p.A. totaling
EUR347,059, completely written off by Trend.
Repayment of bonded loan 2002 - 2005
The bonded loan of EUR100 million placed in 2002 will expire in
2005 and the company aims to quickly realize the financial
restructuring program aimed at exploiting the group's
rediscovered ability to generate substantial cash flow starting
from 2006. Various types of deals are also being looked at
which will be submitted to the Board of Directors for approval.
Net Equity of Gruppo Finmatica and Finmatica S.p.A.
As far as Gruppo Finmatica is concerned, the 2003 Consolidated
Financial Statements show a loss of EUR105.4 million. As a
result of said loss the net equity stands at EUR15.7 million.
As far as Finmatica S.p.A. is concerned, the 2003 Financial
Statements show a loss of EUR43.7 million and therefore the net
equity stands at EUR59.3 million.
Other figures disclosed to answer Q&A's questions
Third-party revenues as per audits for the first quarter of 2004
total: EUR15.4 million (up by approximately 7% compared to the
first quarter of 2003).
CONTACT: Registered office and operations
Finmatica S.p.A.
Via Sorbanella, 30 - 25125 Brescia
Phone: +39 030/35161
Fax: +39 030/3516700
E-mails: finmatica@finmatica.com
info@biztob.com
info@logicom.it
Web site: http://www.finmatica.com/
PARMALAT FINANZIARIA: Pre-tax Earnings Up to EUR56.4 Mln
--------------------------------------------------------
Highlights (in EUR millions)
Revenues Ebitda % of
Revenues
Value in Millions of Euros
2003 2004 2003 2004 2003 2004
Core Activities (a) 1,193.5 1,170.4 70.0 78.3 5.9 6.7
Non-Core Activities (b) 293.3 226.1 (12.3) (4.5)(4.2)(2.0)
Activities Subject to
Special Procedures (c) 299.9 180.5 (4.7) (17.4)(1.6)(9.7)
Total 1,786.7 1,577.0 53.0 56.4 3.0 3.6
(a) Core Activities: consisting of drinks (milk and fruit juice)
and milk related products, based on approximately 30 brands
(global brands or strong local brands), focused on high
potential countries in which there is strong demand for
healthy life-style products, the willingness to pay
a premium price for Parmalat brands and the availability of
leading edge technology.
(b) Non-core Activities: represented by countries and activities
considered non-strategic and which will be subject to
disposal.
(c) Activities subject to Special Procedures: consisting of
businesses in countries outside Italy that are currently
subject to restrictions to their management as result of
local bankruptcy proceedings.
Core Activities
Parmalat's core activity revenues have generally held up
compared to the equivalent period in the previous year
(EUR1,170.4 million compared to EUR1,193.5 million), while
EBITDA increased by 11.9% to EUR78.3 million compared to EUR70.0
million during the same period of 2003.
This improvement in operating results is thanks to the
implementation of a series of commercial actions aimed at
defending market position and also a series of cost containment
and reduction measures, which have also been applied to the
corporate structure.
In particular, looking at the principal geographic areas of
operation, these can be seen:
Italy
Revenues for the period reached EUR443.9 million, down 5.9%
compared to the EUR472.1 million for the same period in 2003.
While revenues fell, there was an improvement in operating
profitability, which increased 22.9%, from EUR24.0 million at 30
April 2003 to EUR29.5 million at 30 April 2004. The lower
revenues were principally a result of a general fall in
consumption, to aggressive competition, and to a number of
difficulties faced in securing raw materials. These issues were
overcome at the EBITDA level thanks to the general strength of
the Group's brand and growth in special milk products and
juices, from lower advertising and promotional costs and from
the reduction of costs for the corporate structure.
South Africa
Revenues for the period of EUR74.9 million grew by 30.4%
compared to the EUR57.4 million reported at 30 April 2003.
EBITDA also almost doubled increasing from EUR3.7 million at 30
April 2003 to EUR6.9 million at 30 April 2004. The improvement
in the results from this market is down to an increase in
volumes (as a result of the acquisition of a number of new
brands and the growing recognition of the Parmalat brand,
yoghurts and cheeses) and also to the increased efficiency of
the distribution network. A further positive contribution was
made by exchange rates (the appreciation of the South African
Rand compared to the Euro).
Venezuela
Within the Group's core activities Venezuela has suffered most
as a result of a lack of support for a new industrial plan by
creditors. In fact the inability to secure the required lines
of credit for the importation of raw materials resulted in a
reduction in volumes from EUR58.7 million in April 2003 to
EUR49.8 million in April 2004 (-15.1%). This resulted in a
substantial decrease in operating profitability which fell from
EUR7.7 million to EUR1.0 million as a result of an increase in
raw material costs in the local markets which was not balanced
by a corresponding increase in the price of the end product.
Canada
The Canadian market has been substantially stable at the revenue
level moving from EUR365.4 million to EUR360.0 million while
EBITDA, which was EUR19.3 million in April 2004 grew 45.1% when
compared to the same period in the previous year (EUR13.3
million). This increase in profitability has been achieved as a
result of a tight control on promotional, advertising and
general expenses and also greater efficiency at the
manufacturing level.
Australia
Revenues for the period were EUR123.0 million up 10.3% compared
to the EUR111.5 million of the same period in 2003. Similarly
EBITDA for the period was EUR9.4 million compared to EUR8.3
million for the same period in the previous year (+13.2%). The
changes at the Revenue and EBITDA levels in this country are
largely due to an exchange rate effect thanks to an appreciation
of the Australian Dollar compared to the Euro.
Non-core Activities and Businesses subject to Special Procedures
The negative result for those businesses covered by these two
headings is mainly due to the performance of the Brazilian and
U.S. operations.
Brazil
Revenues fell from EUR122.0 million to EUR37.8 million (-69%)
and EBITDA worsened moving from a negative EUR7.8 million to a
loss of EUR12.2 million. This outcome is due to the serious
financial situation encountered by the local business and the
fact that the local authorities did not approve a Concordata
procedure, thus making the operational management of the
business that much more difficult.
U.S.A
The consolidated results show a fall in revenues (from EUR287.3
million at 30 April 2003 to EUR223.7 million at 30 April 2004)
and a largely stable operating result which moved from a loss of
EUR6.3 million in 2003 to a loss of EUR6.8 million at 30 April
2004. The fall in revenues results from the financial crisis
that hit the dairy business (milk and milk derivatives), which
created a series of operating disruptions, necessitating the
application for Chapter 11 procedure. Clearly the fall in
revenues also resulted in a worsening at the EBITDA level. The
bakery activities, that are subject to a strategic
reorganization, saw a fall in revenues and a significant
improvement in operating result even if this is still in
negative territory.
Net Financial Position
The Group's net financial position is currently being calculated
and will be the subject of a separate press announcement.
In the meantime it can be stated that at 30 April 2004 those
companies in Extraordinary Administration incurred no new
financial debt. Specifically, total cash reserves of the
companies in Extraordinary Administration amount to over EUR40.0
million (of which EUR23.0 million refer to Parmalat S.p.A. in
Extraordinary Administration). No use has been made until now
of the line of credit of EUR105.0 million provided by a pool of
banks on 4 March 2004.
Collecchio (Parma), 17 May 2004
Parmalat Finanziaria S.p.A.
in Extraordinary Administration
CONTACT: PARMALAT FINANZIARIA
43044 Collecchio (Pr)
Via Oreste Grassi, 26
Codice fiscale e iscrizione nel Registro delle
Imprese di Parma 00175250471 - Partita I.V.A.
01938950340 - R.E.A. Parma n. 188325 - U.I.C. n. 730
20122 Milano - Piazza Erculea, 9
Phone: (39) 02.8068801
Fax: (39) 02.8693863
E-mail: x_affari_societari_it@parmalat.net
PARMALAT FINANZIARIA: Moving Assets, Liabilities to New Firm
------------------------------------------------------------
Parmalat Finanziaria S.p.A., in Extraordinary Administration,
communicates the guidelines for the Restructuring Plan and for
the proposed agreement with creditors that the Extraordinary
Commissioner intends to file in the coming weeks.
(a) Changes to legislative decree of 3 May 2004 no. 119 and the
legal structure of the agreement with creditors
With the Legislative Decree of 3 May 2004, no. 119, published in
Official Gazette no. 106 on 7 May 2004, applicable from 8 May
2004, a number of changes and additions have been made to
legislation regarding major companies in insolvency referred to
under Legislative Decree of 23 December 2003, no. 347, which,
with modifications, came into force with the Law of 18 February
2004, no. 39. In particular, as a result of the changes made
under the new decree, the procedures for the extraordinary
administration of Parmalat Group Companies can be enacted either
through a program of economic and financial restructuring, as
foreseen under the 'mother procedure' of Parmalat S.p.A., or
through a program of disposals of Group businesses. This
program shall be made public via various forms of public
announcement as and when enacted.
Amongst the most significant changes to be highlighted are those
relating to the agreement with creditors, which could be
finalized via whatever technical or legal structure is necessary
including transfer, merger or another structural change, or via
an Assuming Entity, to which may be transferred all the
activities and liabilities of those companies that may be the
subject of the agreement with creditors. The Assuming Entity
can also consist of creditors or companies in which they have an
interest.
The real possibility of filing a proposed agreement with
creditors has already enabled the simplification of the claims
procedures for creditors, as referred in the press release
issued on 14 May 2004.
Taking into account the above-mentioned changes to the law, the
Extraordinary Commissioner, with the support of his legal and
financial advisors, is finalizing his economic and financial
restructuring plan for the various Parmalat[*] Group businesses,
to be filed with the Minister of Production Activities for his
approval.
The restructuring plan will include a proposed agreement with
creditors that would see the transfer to a separate Assuming
Entity of all the assets and liabilities of those companies
subject to the agreement. This newly formed company (henceforth
"the Assuming Entity") will exclusively assume all the
obligations resulting from the agreement with creditors and will
have transferred to it all the assets and liabilities of those
companies that are subject to the proposed agreement with
creditors, as well as any revocatory actions or actions for
damages to be taken by the Extraordinary Commissioner.
If approved by creditors, the agreement will permit the payment
of all privileged and preferential credits and the payment of
unsecured credits via the allotment of shares in the Assuming
Entity in proportion to the credits as officially registered and
taking into account the assets and liabilities of the companies
in Extraordinary Administration that are covered by the
agreement with creditors.
The legal structure of the agreement with creditors will be set
out in detail in the restructuring plan and in the proposed
agreement itself.
---------
[*] Those companies that will be subject to the restructuring
plan and the proposed agreement with creditors are those that
are listed in the press release issued on 14 May 2004
PARMALAT FINANZIARIA: Hires Close Brothers as Financial Adviser
---------------------------------------------------------------
Close Brothers has been selected from a group of leading
international institutions to fulfill the role of financial
adviser with these brief:
(i) to review the Restructuring Plan in the interests of
creditors; and
(ii) to deliver a letter of opinion on the fairness and
reasonableness, from a financial point of view, of the
amount to be offered to each class of creditor.
The letter of opinion will be made public as an appendix to the
Restructuring Plan and the proposed agreement with creditors.
PARMALAT FINANZIARIA: Amends Bylaws to Better Protect Investors
---------------------------------------------------------------
A system of Corporate Governance has been defined for the new
Parmalat. This takes into account the new rules governing
company law, the recommendations of CONSOB and Borsa Italiana
(the Italian Stock Exchange), Borsa Italiana's code of self-
discipline (Codice Preda) and every applicable law and is
aligned with national and international best practice.
Parmalat's new Corporate Governance will have as its objective
the protection and the creation over time of value for
shareholders and other stakeholders. This objective will be
given the status of 'a company principle' by establishing it
amongst the obligations of the company's governing structures.
The principal characteristics of this new system are:
(a) The company bylaws provide for the maximum possible
involvement of shareholders in the definition of the Group's
values and provide an important guarantee for the protection
of shareholders' interests. To achieve this the company
bylaws specifically list the duties of directors and members
of the Board of Statutory Auditors; define the role of the
Chairman of the Board; specify the exclusive duties of the
Board of Directors and the specific requirements demanded of
independent directors who should represent the majority of
Board members. Directors will be appointed via the voting
list mechanism and a minimum ownership of 2% of the Group's
share capital will be required in order to present such a
list. No one will be eligible for election as a Director
who carried out any role within Parmalat's corporate
structures under the previous management or had any position
of major responsibility within the Group. The same applies
to anybody who, in the 180 days prior to the General Meeting
of Shareholders has been the subject of any legal action. It
will not be permitted for a single person to carry out the
roles of Chairman of the Board and of Chief Executive.
(b) The Board of Directors will set in place a Code of Self-
Discipline that will constitute the sum of the regulations
that govern the business of the Company, consistent with the
basic principles set out in the Company's bylaws. The code
of self-discipline will: cover the regular reporting
obligations of the Company's committee structures; the
establishment of an Internal Controls and Corporate
Governance Committee and a Nominations and Remuneration
Committee; will define the basic principles for the handling
of price sensitive information and procedures governing the
issues of insider trading and internal dealing; will
establish the basic principles governing relations with
shareholders and institutional investors; and will establish
rules governing related party transactions.
(c) A Code of Ethics will define the Group's mission and the
behavioral obligations of its employees and partners, based
on values of transparency, correctness and professionalism.
(d) The basic principles regarding internal controls will be
enshrined in Written Group Procedures that will define the
parent company's powers of direction and coordination as
foreseen under company reforms that have the objectives of
guaranteeing transparency of information and behavioral
correctness. These procedures will include Structures to
govern behavior as required under Legislative Decree
231/2001 that cover the administrative responsibility of the
company in relation to various possible criminal activities,
including that relating to the company's affairs.
(e) The Company control structure will be radically reviewed in
order to achieve the objectives of: transparency (Group
companies must be seen to be, as a matter of course,
transparent by third parties); correctness (domiciles of
convenience, so called 'fiscal paradises', will be
abandoned); the remuneration of capital (via a dividend
policy and made possible also thanks to the simplification
of the Company control structure). The complete texts
relating to the company's corporate governance will be made
available at http://www.parmalat.comas soon as this is also
available in English.
Notice of publication will be given by press release.
PARMALAT FINANZIARIA: Intends to Keep U.S. Operations
-----------------------------------------------------
Developments in Parmalat's International Activities and with
regard to Legal Actions
In Brazil the court of Appeal of the State of San Paolo has re-
established the 42nd District's (Judge Nuncio) authority over
the Concordata procedure, removing it from the 29th District
(Judge Abrao). The procedure relating to the Concordata
covering the operating company Parmalat Brasil and the holding
company Parmalat Alimentos e Parmalat Partecipacoes, has
therefore been reinstituted. The new Board of Directors of
Parmalat Brasil has the following members: Nelson de Sampaio
Bastos (Chairman), Luiz Arthur Ledur Brito (Vice-Chairman), Raul
Rosenthal Ladeira de Matos, Renato Carvalho Franco, Jose Otavio
Junqueira Franco, Paulo Diederichsen Villares, e Ruy Flaks
Schneider.
In the United States Farmland Diaries LLC, in the context of the
Chapter 11 procedure relating to Parmalat's U.S. Dairy
businesses, has announced that it intends to develop -- in
cooperation with its own creditors -- a restructuring plan with
the aim of establishing the financial and operating stability
needed to continue its operations.
The institutions financing the Chapter 11 procedure support this
project and it has therefore been decided not to sell the main
activities of Farmland Dairies; the original financing agreement
has been altered to reflect this. A process is underway to
identify a new Chief Executive Officer for Farmland Dairies LLC.
The SEC (Securities Exchange Commission) as previously
indicated, has formally notified Parmalat Finanziaria of the
filing of proceedings with the U.S. District Court for the
Southern District of New York requesting the imposition of a
penalty for violation of the Securities Act.
Bank of America has made an appeal to the TAR of Lazio against
the Minister of Productive Activities and the Extraordinary
Commissioner seeking to annul the Ministerial decrees that
initiated Extraordinary Administration Procedures relating to
Eurofood IFSC Limited and Parmalat S.p.A. and other related
actions; this appeal was subsequently combined with that made by
SMTP and Solotrat. On 2 April 2004 Parmalat appealed the
judgment of the Court of Dublin that had given it jurisdiction
over the liquidation of Eurofood IFSC Limited.
Parmalat Finanziaria S.p.A.
in Extraordinary Administration
CONTACT: PARMALAT FINANZIARIA
43044 Collecchio (Pr)
Via Oreste Grassi, 26
Codice fiscale e iscrizione nel Registro delle
Imprese di Parma 00175250471 - Partita I.V.A.
01938950340 - R.E.A. Parma n. 188325 - U.I.C. n. 730
20122 Milano - Piazza Erculea, 9
Phone: (39) 02.8068801
Fax: (39) 02.8693863
E-mail: x_affari_societari_it@parmalat.net
=====================
N E T H E R L A N D S
=====================
MILACRON INC.: Bares Terms of US$225 Million Notes
--------------------------------------------------
Milacron Inc. (NYSE: MZ) announced the pricing of a private
placement of US$225 million in 11-1/2% Senior Secured Notes due
2011. The notes are to be issued at 97.673% of principal
amount, effectively yielding 12%. The company expects that the
proceeds of the private placement will be placed into escrow on
May 26.
The notes will be issued by Milacron Escrow Corporation, a newly
formed, wholly owned, direct subsidiary of Milacron Inc.,
created solely to issue the notes and to merge with and into
Milacron Inc., which will become the successor obligor of the
notes following the merger.
The conditions to release of the proceeds of the notes from
escrow to Milacron include, among others, the merger of Milacron
Escrow Corporation into Milacron Inc., the effectiveness of a
new asset based credit facility, the termination of Milacron's
existing credit facilities, the execution and delivery of
subsidiary guarantees and security documents with respect to the
notes, the closing of a tender offer for Milacron Capital
Holdings B.V.'s outstanding EUR115 million 7-5/8% Guaranteed
Bonds due 2005 and the issuance of a new series of Milacron's
convertible preferred stock in exchange for Milacron's
outstanding US$70 million in Series B Notes and 15 million
shares of common stock held by Glencore Finance AG and Mizuho
International plc. If the conditions to release of the proceeds
from escrow are satisfied, Milacron intends to use the proceeds
of the offering to repay or otherwise retire indebtedness,
including a US$75 million term loan under its existing credit
facilities and the EUR115 million 7-5/8% Guaranteed Bonds due
2005, and to pay transaction costs.
=====================
S W I T Z E R L A N D
=====================
ASCOM: Elects Juhani Anttila Board Chairman
-------------------------------------------
Shareholders numbering 217 attended the general meeting of Ascom
Holding AG held in Bern, Switzerland on May 11, 2004. They
represented 15,188,610 votes; approximately 42.2% of the share
capital. The general meeting passed all motions from the Board
of Directors by a large majority, with a small number of
dissenting votes and abstentions. Juhani Anttila was re-elected
to the Board for an additional three-year period. In the Board
meeting that followed, he was also elected Board Chairman.
About Ascom
Ascom is an international solution supplier with a comprehensive
technology know-how. In the areas Transport Revenue (revenue
collection, toll collection and parking systems), Security
Solutions (applications for security, communications, automation
and control systems for infrastructure operators, public
security institutions and the army), Network Integration
(network solutions in the data/voice convergence market) and
Wireless Solutions (high quality on-site communications
solutions) with many years of experience in the execution of
complex projects for demanding customers the company has
established itself unimportant key markets. Ascom's offering
covers analysis and consulting, system design and system
integration, project management, engineering and implementation,
and goes right through to maintenance and support. The company
has subsidiaries in 23 countries and has a staff of about 5,000
employees worldwide. The Ascom registered shares (ASCN) are
quoted on the SWX Swiss Exchange in Zurich.
CONTACT: ASCOM
Bettina Cohen
Head of Corporate Communications
Belpstrasse 37
CH-3000 Bern 14
Phone: +41 31 999 43 44
Fax: +41 31 999 21 17
E-mail media@ascom.com
Web site: http://www.ascom.com
Ascom Corporate Finance and Investor Relations
Rudolf Hadorn
CFO and designated CEO
Belpstrasse 37
CH-3000 Bern 14
Phone: +41 31 999 20 22
Fax: +41 31 999 45 27
E-mail: investor@ascom.com
Web site: http://www.ascom.com
===========================
U N I T E D K I N G D O M
===========================
AVECIA GROUP: Authorizes NARD to Use Technology in Japan
--------------------------------------------------------
Avecia Pharmaceuticals announced a technology agreement with
Japan's NARD Institute Ltd., providing for licensed transfer of
key Avecia technologies for pharma intermediates R&D and small-
scale manufacturing. A specialist in chemical route invention
and development, NARD will enable Japanese customers to access
advanced Avecia pharma technologies.
Technologies available to customers in Japan through NARD will
cover Avecia's CATHy(TM) and CACHy(TM) catalysts for chiral
manufacturing; enzymatic bio-transformations and the recently
launched (late 2003) Pd EnCat(TM) encapsulated palladium
catalyst technology, for faster, cleaner drug development.
NARD is one of Japan's leading fine chemical contract research
and process development service companies. It serves the
pharmaceutical industry and other specialty chemical application
sectors, including electronics and metal working. Key
facilities are at Amagasaki, Hyogo and Sakai, Osaka -- those in
Osaka being the focus for pilot scale production.
"The Avecia technologies covered by the NARD agreement each have
a role to play in meeting the growing challenges of pharma
development costs and timescales," said Dr. Peter Jackson, vice
president for New Business Development, Avecia Pharmaceuticals.
"There's great potential in the Japanese market and we're
delighted to be working with NARD."
The NARD Agreement is the latest in a string of recent pharma
technology portfolio developments by Avecia. At Informex in
January, in a joint development with Johnson Matthey, Avecia
announced the commercialization of immobilized CACHy (TM)
technology for chiral manufacture.
* * *
Standard & Poor's Ratings Services said in March that its 'B-'
long-term corporate credit rating on Avecia Group PLC (Avecia)
remains on CreditWatch with negative implications, following the
announcement that Avecia has divested its biocides business to
Arch Chemicals Inc. The company's ratings were originally
placed on CreditWatch on November 27, 2003.
"The CreditWatch placement continues to reflect Standard &
Poor's ongoing concerns about the group's aggressive operating
strategy and financial policy," said Standard & Poor's credit
analyst Christine Hoarau. "Although the proceeds from the
asset sale will be used to repay bank debt, Avecia is not
expected to significantly improve its financial ratios."
CONTACT: AVECIA PUBLIC AFFAIRS GROUP
Phone: +44 (0) 161 721 2942 / 2441
Fax: +44 (0) 161 721 5319
BELLWALK LIMITED: Meeting of Unsecured Creditors Set June 14
------------------------------------------------------------
There will be a Meeting of the unsecured Creditors of the
Bellwalk Limited Company (t/a Dominic's Restaurant) on June 14,
2004 at 3:00 p.m. It will be held at the Hotel Elizabeth Hull,
Ferriby High road, North Ferriby, East Yorkshire HU14 3LG.
Creditors who want to be represented at the Meeting may appoint
proxies. Proxy forms must be submitted together with written
debt claims to RSM Robson Rhodes LLP, St George House, 40 Great
George Street, Leeds LS1 3DQ not later than 12:00 noon, June 13,
2004.
CONTACT: RSM ROBSON RHODES LLP
St George House,
40 Great George Street,
Leeds LS1 3DQ
Contact:
C W A Escott, Joint Administrative Receiver
M Dunham, Joint Administrative Receiver
BILL CARVER: Hires Crawfords Administrator
------------------------------------------
The Bill Carver Limited Company has appointed David N Kaye of
Crawfords as joint administrative receiver. The date of
appointment was made May 5, 2004. The Company is engaged in
maintenance and repair of motors.
CONTACT: CRAWFORDS
Stanton House,
41 Blackfriars Road, Salford,
Manchester M3 7DB
Receiver:
David N Kaye
(IP No 166)
BRK INTERNATIONAL: Barclays Bank Appoints PwC Receiver
------------------------------------------------------
Barclays Bank plc called in receivers Edward Klempka and Stephen
Ellis from PricewaterhouseCoopers for BRK International Limited
(Reg No 04774206, Trade Classification: Services NEC 8999). The
application was made May 6, 2004. BRK International is a
general merchant.
CONTACT: PRICEWATERHOUSECOOPERS
Benson House,
33 Wellington Street,
Leeds LS1 4JP
Receivers:
Edward Klempka
Stephen Ellis
(Office Holder Nos 5791, 8843)
BROADFIELD BATHROOMS: Brings in Receiver from O'Hara & Co
---------------------------------------------------------
The Broadfield Bathrooms Limited Company has appointed Peter
O'Hara of O'Hara & Co as joint administrative receiver. The
appointment was made May 7, 2004. The Company supplies and
installs bathroom accessories.
CONTACT: O'HARA & CO
Wesley House,
Huddersfield Road, Birstall
Batley, West Yorkshire WF17 9EJ
Contact:
Peter O'Hara, Liquidator
CANARY WHARF: CWG Urges Shareholder to Drop Songbird's Offer
------------------------------------------------------------
CWG Acquisition notes Songbird's announcement of May 13, 2004
that, notwithstanding statements to the contrary in the Songbird
offer document, Canary Wharf Shareholders who have accepted the
Songbird offer are entitled to withdraw their acceptances at any
time prior to May 21, 2004.
CWG Acquisition believes that its Revised Offer has greater
certainty and deliverability than the Songbird offer for these
reasons:
(a) To satisfy its acceptance condition, Songbird's offer must
receive 50% acceptances on a fully diluted basis (including
the Canary Wharf Warrants held by entities connected to Mr.
Paul Reichmann, with rights to subscribe for up to
approximately 7% of Canary Wharf's fully diluted share
capital), equating to an effective acceptance condition of
approximately 54% of the issued share capital of Canary
Wharf;
(b) CWG Acquisition's acceptance condition only requires
acceptance by 50% of the issued share capital of Canary
Wharf;
(c) Songbird's acceptance condition, as well as certain other
conditions to its offer, cannot be waived without the
consent of Songbird's senior debt lenders; and
(d) The approximate 14.5% shareholding in Canary Wharf
by entities connected to Simon Glick (the 'Glick Shares')
cannot be counted towards Songbird's acceptance condition in
certain circumstances, some of which are beyond Songbird's
control. Accordingly, there can be no certainty that the
Glick Shares will be capable of being counted towards
Songbird's acceptance condition.
Canary Wharf Shareholders who wish to withdraw their acceptances
of the Songbird Offer may do so at any time prior to May 21,
2004 by submitting a withdrawal request in writing to Capita IRG
plc, Corporate Actions, P.O. Box 166, The Registry, 34 Beckenham
Road, Beckenham, Kent BR3 4TH.
Canary Wharf Shareholders who have not already accepted (or been
deemed to have accepted) CWG Acquisition's Revised Offer and who
wish to do so should complete and return the CWG Acquisition
Revised 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, P.O. 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 1:00 p.m. (London time)/8:00 a.m. (New York time) on
May 21, 2004.
Terms defined in the Revised Offer Document have the same
meaning in this announcement.
CONTACT: 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
Simon Fraser
Paul Golding
Phone: +44 (0) 20 7628 1000
THE MAITLAND CONSULTANCY
Angus Maitland
Philip Gawith
Martin Leeburn
Phone: +44 (0) 20 7379 5151
CANARY WHARF: Songbird to Account Simon Glick Shareholding
----------------------------------------------------------
Songbird notes CWG Acquisition's announcement of 17 May 2004.
As stated in Songbird's Offer Document dated 23 April 2004, the
14.5% shareholding held by entities connected to Simon Glick
(the Glick Shares) will count towards Songbird's acceptance
condition provided that the requirements of the Panel are
satisfied. Songbird is finalizing arrangements to ensure that
such requirements will be satisfied and fully expects that the
Glick Shares will count towards Songbird's acceptance condition.
CONTACT: CANARY WHARF
Press Inquiries:
MORGAN STANLEY
Mark Warham
Brian Magnus
Phone: +44 20 7425 5000
ROTHSCHILD
Alex Midgen
Ben Davey
Phone: +44 20 7280 5000
HOARE GOVETT
Nigel Mills
Ranald McGregor-Smith
Phone: +44 20 7678 8000
TULCHAN COMMUNICATIONS
Andrew Grant
Katie Macdonald-Smith
Phone: +44 20 7353 4200
SMITHFIELD FINANCIAL
John Antcliffe
Phone: +44 20 7360 4900
FINSBURY LIMITED
Faeth Birch
Phone: +44 20 7251 3801
COURTS PLC: Secures Refinancing for Singaporean Business
--------------------------------------------------------
Group Refinancing
The Board is pleased to announce that Courts Singapore has
completed the securitization of its consumer receivables. This
five-year financing program, which has been arranged by ABN AMRO
Bank N.V., is the first of its kind to be concluded in
Singapore.
To initiate the program Courts Singapore has sold its existing
consumer receivables, amounting to S$141 million, to a trust
established for this purpose. The consideration for the initial
sale will be partly satisfied in cash of S$89 million and partly
in the form of interests in the trust with a value of up to S$52
million. Future receivables will be sold into the trust on the
same basis throughout the program term.
The securitization program will provide Courts Singapore with a
more appropriate capital structure and will allow it to continue
to develop its consumer credit offer without having to commit
capital to funding this part of its business. The proceeds from
the securitization program will also be used to expand Courts
Singapore's Thailand business and to launch the Courts brand
into other markets, most notably China, via franchising or joint
venture models.
Regionalization
The regionalization of the Group also remains on track. The
establishment of a South East Asian regional holding company is
progressing and as previously announced we aim to have floated
the Group's Caribbean operations on that region's Stock
Exchanges before the end of 2004.
As part of this process, overall responsibility for IT systems
development and group credit will now fall under the Group
Finance Director, who will be supported by appropriate regional
resources. Andrew Cohen will be leaving the Group on 21 May
2004 to pursue other interests. In addition, Howard Cohen will
step down as a director at the conclusion of this year's Annual
General Meeting, which is scheduled to be held on 30 July 2004.
A further strategic update will be given at the time of the
preliminary results statement, the release date for which has
now been finalized as 22 June 2004.
CONTACT: COURTS PLC
Jessica Rouleau
Michael Sandler
Hudson Sandler
Phone: 020 7796 4133
DAVIES BROOK: Lloyds TSB Bank Appoints Receivers
------------------------------------------------
Lloyds TSB called in administrative receivers Mark Jeremy Orton
and Allan Watson Graham for Davies Brook & Company Limited (Reg
No 97185). The appointment was made May 5, 2004. Davies Brook
& Company Limited produces and sells soft drinks. It trades
under the name Brooks Soft Drinks.
CONTACT: Mark Jeremy Orton, Administrative Receiver
Allan Watson Graham, Administrative Receiver
(Office Holder Nos 8846, 8719)
2 Cornwall Street,
Birmingham B3 2DL
EQUITABLE LIFE: EMAG Says Treasury Still in Denial
--------------------------------------------------
The committee of EMAG met financial secretary to the Treasury,
Ruth Kelly [last week], to discuss the ongoing scandal at
Equitable Life. Ms. Kelly herself has recently effectively
given the green light for further investigation by the
parliamentary ombudsman (PO) by admitting that the Government
Actuary's Department can be subject to the PO's review. But in
the meeting with EMAG she had nothing to say about how the re-
opened enquiry might be handled, how long it might take, or
whether the Government would respond to the inevitable findings
of failings by the regulators. Neither did she explain what
good could come out of the policyholders' claiming from one
another through the Courts or the FOS. The group expressed
grave concerns about Ms. Kelly having misled Parliament over
Lord Penrose's report.
EMAG's chairman Alex Henney said: "Through selective quotations
to the House and in subsequent letters to MPs, Ruth Kelly has
misled Parliament about Lord Penrose's report. That she had the
brass nerve to tell us that her ministerial statement was
impartial and not political, given that she lambasted failings
before 1997 and pretended subsequent regulation had been fine,
beggars belief! It's depressing when a minister of the Crown
puts in writing that: 'Governments cannot be held responsible
for the policy decisions of past administrations'."
EMAG presented Ms. Kelly with a paper (attached and at
http://www.emag.org.uk)that compared the assertions of the
minister to what Lord Penrose had written and also handed over
EMAG's own precis of Penrose to Treasury officials. One example
quoted was the use of the words "light touch", which make two
minor appearances in Lord Penrose's 840 pages yet featured four
times in Ruth Kelly's eight-page ministerial statement
presenting his report.
Paul Braithwaite, general secretary of EMAG, said: "The Treasury
has been batting Equitable into the long grass for more than
five years. First it was the FSA who were set up as the fall
guys. Then Penrose was asked to chew over 50 years. Instead of
addressing the loss of billions of pounds of policyholders'
pensions down to regulatory negligence, we see the same old Sir
Humphrey strategy -- only this time the problem is being dumped
firmly on the Parliamentary Ombudsman, which should park it
neatly out of play until after the election."
EMAG's central demand was for an undertaking from Ruth Kelly
that if the PO does find maladministration in Equitable Life
that led to loss then a Labor government would, like the Tory
party, commit to paying compensation. No reply has yet been
received.
Mr. Braithwaite added: "We know that personal provision is the
future for pensions. The Government is right to help the 60,00
who lost company pension funds at ASW et al and wrong to
callously ignore the plight of one million who have suffered at
Equitable Life. There's little moral difference between ASW and
Equitable but Gordon Brown assumes incorrectly that there are no
Labor votes at stake in Equitable."
FBI LTD: Creditors Meeting Set May 27
-------------------------------------
There will be an initial Meeting of Creditors of the FBI 2004
Limited Company on May 27, 2004 at 11:00 a.m. It will be held
at the George hotel, Norfolk Street, Glossop SK13 7QU.
Creditors who want to be represented at the Meeting may appoint
proxies. Proxy forms must be submitted to S H Thornton at
Houghton Stone, The Conifers, Filton Road, Hambrook, Bristol
BS16 1QG not later than 12:00 noon, May 26, 2004.
CONTACT: S H THORNTON, Joint Administrator
Houghton Stone,
The Conifers, Filton Road,
Hambrook, Bristol BS16 1QG
FLOMAT BAGFILLA: In Administrative Receivership
-----------------------------------------------
Simon Thornton of Houghton Stone Business Recovery was appointed
joint administrative receiver for The Flomat Bagfilia
International Limited Company. The appointment was made March
18, 2004.
CONTACT: HOUGHTON STONE BUSINESS RECOVERY
The Conifers, Filton Road,
Hambrook, Bristol BS16 1QG
H & F ELASTOMERS: Appoints Tenon Recovery Administrator
-------------------------------------------------------
The H & F Elastomers Limited Company has appointed S R Thomas
and S D Burkett-Coltman of Tenon Recovery as joint
administrative receivers. The appointment was made May 10,
2004. The Company manufactures rubber products.
CONTACT: TENON RECOVERY
Sherlock House,
73 Baker Street,
London W1U 6RD
Receivers:
S R Thomas
S D Burkett-Coltman
NEVRON LIMITED: Hires Receiver from Unique Business Finance
-----------------------------------------------------------
The Nevron (Chemical Insulations) Limited Company has appointed
Mark Prideaux of Unique Business Finance Ltd as joint
administrative receiver. The appointment was made April 27,
2004. The Company is engaged in industrial insulation.
CONTACT: UNIQUE BUSINESS FINANCE LTD
6 Lockside Office Park,
Lockside Road,
Preston PR2 2YS
Receiver:
Mark Prideaux
(IP No 9296)
SAPPHIRE INTERNATIONAL: SME Appoints Tenon Recovery Receiver
------------------------------------------------------------
SME Invoice Finance Limited called in S.R. Thomas and S.J.
Parker from Tenon Recovery as Joint Administrative Receivers for
Sapphire International Limited (Reg No 03076156, Trade
Classification: 7415). The appointment was made May 10, 2004.
Sapphire International Limited develops and sells computer
software.
CONTACT: TENON RECOVERY
Sherlock House
73 Baker Street
London W1U 6RD
Receivers:
S R Thomas
S J Parker
(Office Holder Nos 8920, 8989)
SLAMMERS SEAFOOD: Appoints P&A Partnership Administrator
--------------------------------------------------------
John Russell and Philip Andrew Revill of The P&A Partnership has
been appointed joint administrative receivers of The Slammers
Seafood Restaurant Company Limited. The appointment was made
May 6, 2004.
CONTACT: THE P&A PARTNERSHIP
93 Queen Street,
Sheffield S1 1WF
Receivers:
John Russell
Philip Andrew Revill
(IP Nos 5544, 6421)
SS REALISATIONS: Cattles Invoice Appoints BWC Business Receiver
---------------------------------------------------------------
Cattles Invoice Finance Limited called in administrative
receiver David Leighton Cockshott from BWC Business Solutions
for SS Realisations Limited (Reg No 041060781, Trade
Classification: 11), formerly Sigma Soap Limited. The
appointment was made May 6, 2004.
CONTACT: BWC BUSINESS SOLUTIONS
8 Park Place,
Leeds LS1 2RU
Receiver:
David Leighton Cockshott
(Office Holder No 8974)
TECHFILL LIMITED: Appoints PKF Administrator
--------------------------------------------
Joint administrators William Duncan, and Ian Christopher
Schofield were called in for Techfill (Grimsby) Limited and
Techfill (OTGL) Limited (Reg Nos: 03931818, 04785719). The
companies manufacture pesticides and other agro-chemical
products. The appointment was made May 4, 2004.
CONTACT: TECHFILL
P.O. Box 16, New Oxford House
Town Hall Square
Grimsby DN31 1HE
South Humberside Industrial Estate
Grimsby DN31 2TF
PKF
Knowle House,
4 Norfolk Park Road,
Sheffield S2 3QE
Joint Administrators:
William Duncan
Ian Christopher Schofield
(Office Holder Nos 6440, 2647)
VALLEYHILL BARS: In Administrative Receivership
-----------------------------------------------
The Bank of Scotland has appointed Jane Bronwen Moriarty and
Blair Carnegie Nimmo of KPMG Corporate Recovery as
administrative receiver of The Valleyhill Bars Limited,
Valleyhill Limited and Valleyhill Pubs Limited Companies. The
appointment was made May 7, 2004.
These Companies are engaged in bars and restaurants. Their
registration numbers are 04704701, 04590770 and 04726375
respectively.
CONTACT: KPMG CORPORATE RECOVERY
8 Salisbury Square,
London EC4Y 8BB
Receiver:
Jane Bronwen Moriarty
(Office Holder 9095)
KPMG CORPORATE RECOVERY
24 Blythswood Square,
Glasgow G2 4QS
Receiver:
Blair Carnegie Nimmo
(Office Holder No 8208)
WOODMILL ENGINEERING: Hires Moore Stephens Administrator
--------------------------------------------------------
Name of Company: Woodmill Engineering Limited
(t/a Hornsey Gates)
Reg. No: 4800105
Registered Office: Moore Stephens Corporate Recovery, Beaufort
House, 94-96 Newhall Street, Birmingham B3 1PB
Nature of Business: Manufacturer of Fabricated Metal Products
Administration Order Date: April 21, 2004
CONTACT: MOORE STEPHENS CORPORATE RECOVERY
Beaufort House,
94-96 Newhall Street
Birmingham B3 1PB
Joint Administrators
Nigel Price
Roderick Graham Butcher
(Office Holder Nos 8778, 8834)
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter -- Europe is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA. Larri-Nil Veloso, Ma. Cristina Canson, and
Liv Arcipe, Editors.
Copyright 2004. All rights reserved. ISSN 1529-2754.
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