TCREUR_Public/040531.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

              Monday, May 31, 2004, Vol. 5, No. 106

                            Headlines

F R A N C E

SARMONDE: Enters Liquidation; Cites Skyrocketing Production Cost
VIVENDI UNIVERSAL: Performance Shows Significant Progress


G E R M A N Y

BERTELSMANN AG: Names Russell Denson CEO of U.S. Publishing Unit
EM.TV AG: Misses Breakeven by a Hairline
SENATOR FILM: Deutsche Bank Absorbs Movie Producer's Debt


H U N G A R Y

NABI RT: Wins HUF594 Million Order for 700 SE Buses


I R E L A N D

EUROFOOD: Local Judge Refers Jurisdiction Dispute to E.U. Court


I T A L Y

PARMALAT CHILE: Sold to Bethia for US$15 Million


L U X E M B O U R G

BCP CAYLUX: US$250 Million Floating-rate Loans Get 'B-' Rating


N E T H E R L A N D S

IFCO SYSTEMS: First-quarter Net Income Up 144% Year-on-year


R U S S I A

AGRO-CHEREPOVETS: Vologda Court Appoints Insolvency Manager
BEREZNIKOVSKY REFRIGERATING: Court Sets August 20 Hearing
FIRST MUNICIPAL: Depositors Want Famous Faberge Eggs Confiscated
KURGAN BUS: Insolvent Status Confirmed
YUKOS OIL: Cries Foul Over Decision Affirming RUB99 Bln Tax Bill

YUKOS OIL: Warns of Potential Bankruptcy
UZH-URAL-MASH: Under Bankruptcy Supervision Procedure
ZAURALSKY FEED: Court Prescribes Bankruptcy Proceedings


S W I T Z E R L A N D

4M TECHNOLOGIES: Net Profit Jumps to CHF16.5 Million
SCANDINAVIAN AIRLINES: Moody's Downgrades Credit Rating to B1


U N I T E D   K I N G D O M

ACCOMODATION LINE: Hires Liquidator from David Rubin & Partners
ADVANCED BIOLOGICS: Calls in Liquidator
AIRSIDE LIGHTING: Winding up Resolutions Passed
ARLA FOODS: Becomes Sole Milk Supplier for Asda Supermarkets
ASA THERMAL: Names O'Hara & Co Liquidator

AUDEO DISTRIBUTION: Hires Liquidator from Haines Watts
BDP SERVICES: Appoints Liquidator from Sinclair Harris
CORE AFFINITY: Meeting of Creditors Set June 7
CORPORATE CONSULTANCY: Names Liquidator from Valentine & Co.
DB NORTHUMBRIA: Winding up Resolutions Passed

DUNDEE FOOTBALL: Lenders Agree to Save Club via CVA
EQUITABLE LIFE: Urges Govt to Allow Ombudsman to Probe GAD
EUROBUREAUX LIMITED: Names Liquidator from Pridie Brewster
FOUR SEASONS: Hires Gibson Hewitt Administrator
HAWKE COMPUTER: Appoints Tenon Recovery Liquidator

HHG PLC: Towry Law Closes International Business
JOHN CHEMICALS: Deadline for Debt Claims Set June 9
JOHN FIBRES: Meeting of Creditors Set June 10
JOHN HYDRAULICS: Sets Creditors Meeting June 10
LEGION PROPERTY: Calls in Liquidator

LG ELECTRONICS: To End Production in August
MARKS & SPENCER: Retail Tycoon Expected to Offer GBP8 Billion
METHOD MANAGER: Hires Liquidator from Tenon Recovery
NORCO MANAGEMENT: In Administrative Receivership
QUEENS MOAT: To Dispose Sloane Square Moat House

ROYAL MAIL: Misses 'Quality of Service' Targets
ROYAL MAIL: Postage Price Hike Helps Firm Return to Profit
RUFFORD MOTOR: Creditors Meeting Set June 15
SBF AGRIC: Appoints Receivers from KPMG
SSL INTERNATIONAL: 2003 Operating Profit Down to GBP74.5 Million
VATHEK LIMITED: Winding up Resolutions Passed

* Default Rate of European High Yield Bonds 'Stable', Says Fitch


                            *********


===========
F R A N C E
===========


SARMONDE: Enters Liquidation; Cites Skyrocketing Production Cost
----------------------------------------------------------------
French women's fashion company Sarmonde succumbed to judicial
liquidation after failing to revive its business via composition
proceedings.

The company applied for composition proceedings early this year
after booking huge losses due to higher production cost.  Its
financial condition worsened when it did not receive new orders
for its quality clothing since April, a union representative
said.  Sarmonde has already incurred liabilities of EUR600,000
for the year.

The closure of the company will result to 69 redundancies at its
Sarrbourg site.  Sarmonde has been gradually moving production
to a site in Tunisia.


VIVENDI UNIVERSAL: Performance Shows Significant Progress
---------------------------------------------------------
Vivendi Universal S.A. released its first quarter results last
week.  These are the highlights:

(a) Operating income of EUR930 million, up 32% versus last year
    on a pro forma[1] and constant currency basis;

(b) Adjusted net income[2] of EUR239 million, versus a loss
    EUR56 million;

(c) Net loss[2] of EUR6 million, versus a net loss of EUR319
    million;

(d) Consolidated cash flow from operations[3] of EUR1,268
    million, versus EUR840 million last year on a pro forma
    basis;

(e) Proportionate cash flow from operations[4] of EUR873
    million, versus EUR444 million last year on a pro forma
    basis;

(f) Net debt[5] of EUR11.6 billion on March 31, 2004.  As of the
    present, after the NBC Universal closing, Vivendi
    Universal's net debt is approximately EUR7 billion.

Revenues

For the first quarter of 2004, Vivendi Universal (Paris Bourse:
EX FP; NYSE: V) reported revenues of EUR5,973 million compared
with EUR6,232 million for the first quarter of 2003, that is a
4% decline.  On a pro forma basis, revenues were up 1%, and 7%
at constant currency, for the first quarter of 2004.  On a
comparable basis[6] , revenues were up 5%, and 11% at constant
currency.

Operating income

For the first quarter of 2004, operating income was EUR930
million, up 10% compared with EUR844 million for the same period
last year.  On a pro forma basis, operating income was up 27%,
despite the negative impact from the euro/dollar average
exchange rate.  On a constant currency basis, pro forma
operating income growth would have been 32% (and 29% on a
comparable basis).

The EUR199 million progress of the pro forma operating income
was achieved through:

(a) EUR87 million improvement at SFR Cegetel group,

(b) EUR33 million improvement at Vivendi Universal
    Entertainment, driven by strong performances at Universal
    Television Group, as well as the divestiture of Spencer
    Gifts,

(c) EUR29 million improvement at Canal+ Group, which recorded
    EUR45 million of operating income in the first quarter of
    2003 including some provision reversal,

(d) EUR25 million improvement at the holding level thanks to
    efficient cost management,

(e) +EUR23 million improvement at Maroc Telecom, + EUR12 million
    improvement at Universal Music Group,

(f) EUR11 million from the elimination of the company's cash
    drains (Internet operations, VTI and Vivendi Valorisation),
    and was slightly offset by: -EUR21 million decline at VU
    Games.

Adjusted net income (loss)

For the first quarter of 2004, the adjusted net income amounted
to EUR239 million, versus an adjusted net loss of EUR56 million
for the same period last year.  This EUR295 million progress was
achieved thanks to strong operating results, no foreign exchange
loss (versus a EUR80 million loss for the same period in 2003)
and the improvement of equity in earnings of unconsolidated
companies (profit of EUR45 million versus a loss of EUR72
million in 2003).

Net income (loss)

In the first quarter of 2004, net loss amounted to EUR6 million
or EUR0.01 per share (basic and diluted) compared to a net loss
of EUR319 million or EUR0.30 per share (basic and diluted) in
the first quarter of 2003.

Consolidated cash flow from operations

For the first quarter of 2004, consolidated cash flow from
operations was EUR1,268 million, versus EUR840 million for the
same period in 2003, on a pro forma basis.

Proportionate cash flow from operations

Proportionate cash flow from operations was EUR873 million,
versus EUR444 million, in the first quarter of 2003, on a pro
forma basis.

This strong performance is the result of Vivendi Universal's
continuing focus on cash generation and the significant
improvements achieved at Canal+ Group, VUE, Corporate, VUG and
Maroc Telecom.

Net debt

The net debt at the end of March 2004 was EUR11.6 billion.  As
of the present, after the NBC Universal closing, Vivendi
Universal's net debt is approximately EUR7 billion.  Comments on
operating income for Vivendi Universal's Media and Telecom
businesses:

Media activity (as fully consolidated at 100%)

For the first quarter of 2004, Media businesses have generated
EUR259 million of operating income.

Canal+ Group (100% Vivendi Universal economic interest):

In millions of       1st quarter      Variation       Variation
euros                   2004         Pro forma    Comparable
basis(b)
---------------------------------------------------------------
Revenue                                 -1%             + 8%
                           923           0%(a)          + 9%(a)
---------------------------------------------------------------

Operating Income            74        + 64%             + 68%
---------------------------------------------------------------

(a) Variation at constant currency.

(b) Comparable basis illustrating the effect of the divestitures
    at Canal+ Group (Telepiu, Canal+ Nordic, Canal+ Belgium and
    Flemish, etc...) as if those transactions had occurred at
    the beginning of 2003.

Significant improvement in Canal+ Group's operating income up
68% on a comparable basis.

Canal+ Group reported first quarter operating income of EUR74
million.  Neutralizing the effect of changes in scope of
consolidation -- primarily the sale of Telepiu at end-April 2003
-- period-on-period growth came at 68%.

All the French pay-television operations, the Group's core
business, improved.  This strong improvement was primarily
driven by the Premium Channel's performance over the period.
This activity benefited from the positive impact of the cost
control process initiated by the management since 2003 and the
significant increase in advertising, reflecting the larger
overall audience and the higher satisfaction rate.

In parallel, the Group's movie business had several successful
high margin releases such as "Les Rivieres Pourpres 2" and
"Podium" in addition to continuing strong sales of the DVD "Les
Nuls l'integrule."

Universal Music Group (92% Vivendi Universal economic interest):

In millions of      1st quarter      Variation
euros                   2004
------------------------------------------------
Revenue                               -11%
                           978         -5%(c)
-----------------------------------------------
Operating Income                     + 43%
                           (16)      + 36%(c)
-----------------------------------------------

(c) Variation at constant currency.

UMG significantly improved its operating income

Operating income was a loss of EUR16 million versus a loss last
year of EUR28 million.  This improvement was driven by cost
savings, particularly lower marketing and overhead expenses.
This was partly offset by the margin impact of the drop in sales
volumes and the increase in amortization expenses as a result of
a reduction in the catalogue amortization period from 20 to 15
years as well as higher restructuring costs.

Major new releases for the remainder of the year include new
albums from 50 Cent, Mariah Carey, Eminem, Nelly and U2 in
addition to Greatest Hits from Jay Z, George Strait and Shania
Twain.

Vivendi Universal Games (99% Vivendi Universal economic
interest):

In millions of   1st quarter       Variation
euros                2004
-----------------------------------------------
Revenue                              -27%
                            77       -17%(d)
-----------------------------------------------
Operating Income                     -88%
                           (45)     -x2.2(d)
-----------------------------------------------

(d) Variation at constant currency.

Vivendi Universal Games performance continued to suffer a
decline.

Vivendi Universal Games operating loss for the first quarter was
EUR45 million.  This loss was approximately twice higher when
compared to the same period last year.  In January 2004, a new
management team was put in place to implement a turn around
plan.  The first quarter results include costs associated with
such turn around, including canceling titles and reducing the
carrying value of other titles to their estimated net realizable
value.  In addition, along the accounting rules set forth last
year, substantially all internal development costs are currently
expensed as incurred.

2004 will be a transition year.  The new management team is
focused on developing high quality games on a timely basis,
actively reducing the operating costs basis and leveraging a
worldwide organization.

Vivendi Universal Entertainment (86% Vivendi Universal economic
interest):

In millions of       1st quarter   Variation        Variation
euros                   2004                       Comparable
                                                     basis(f)
--------------------------------------------------------------

Revenue                              + 3%             + 8%
                         1,493       +21%(e)          +27%(e)
--------------------------------------------------------------

Operating Income                     + 15%            + 8%
                           246       +36%(e)          +27%(e)
--------------------------------------------------------------

(e) Variation at constant currency.

(f) Comparable basis illustrating the sale of Spencer Gifts as
    if this transaction had occurred at the beginning of 2003.

On a comparable basis and at constant currency, VUE's operating
income increased 27%.

VUE operating income increased EUR33 million or 15%, mainly due
to a strong performance at Universal Television Group and the
improvement in Universal Parks and Resorts and other.  On a
comparable basis and at constant currency, operating income grew
27%.

Universal Pictures Group operating income was down 13% (up 2% at
constant currency) when compared to the same period last year.
Universal Television Group operating income increased 14% (up
33% at constant currency). Operating income at Universal Parks
and Resorts improved 36% (up 25% at constant currency) versus
prior year mainly due to theme park attendance gains at
Universal Studios Hollywood.

Telecom activity (as fully consolidated at 100%)

For the first quarter of 2004, Telecom businesses have generated
an operating income of EUR713 million.

SFR Cegetel Group (approximately 56% Vivendi Universal economic
interest):

In millions of         1st quarter       Variation     Variation
euros                    2004                        Comparable
                                                        basis(g)
---------------------------------------------------------------

Revenue                 2,058             + 16%            + 14%
---------------------------------------------------------------

Operating Income          552             + 19%            + 17%
---------------------------------------------------------------

(g) Comparable basis illustrating the full consolidation of
    Telecom Developpement at SFR Cegetel Group as if the merger
    had occurred at the beginning of 2003.

SFR Cegetel Group's operating income grew 19% to EUR552 million.

SFR Cegetel Group consolidated revenues for the first quarter of
2004 increased by 16% (and 14% on a comparable basis) to
EUR2,058 million and operating income grew 19% (and 17% on a
comparable basis) to EUR552 million.

Mobile telephony achieved excellent performance with a revenue
growth of 12%(7) (and 15% on a comparable basis) to EUR1,755
million, driven by continuing growth trend of customer base and
favorable ARPU evolution.  Annual rolling ARPU(8) grew 3% to
EUR435 compared to the first quarter of 2003, due to improved
customer mix to 58.5% of postpaid against 54.2% at the end of
March 2003 and ongoing take-up of available data services.

This, combined with strong control of customer acquisition and
retention costs, led to an increase of 18%(7) (also 18% on a
comparable basis) in operating income to EUR557 million.

Fixed telephony revenues are up 39%(7) (and 9% on a comparable
basis) to EUR303 million, mainly explained by growing retail and
wholesale broadband Internet.

Fixed telephony reported operating loss of EUR5 million for the
first quarter of 2004, compared with a loss of EUR8 million (7)
(and a loss of EUR1 million on a comparable basis) in 2003, the
growth in revenue being more than offset by start-up costs of
the broadband Internet offer launched in January 2004.

Maroc Telecom (35% Vivendi Universal economic interest):

In millions of   1st quarter       Variation
euros                2004
-----------------------------------------------
Revenue                              + 5%
                           376       + 9%(h)
-----------------------------------------------
Operating Income                     + 17%
                           161       + 20%(h)
-----------------------------------------------

(h) Variation at constant currency.

Maroc Telecom operating income grew 17% thanks to an efficient
control of costs.

Operating income amounted to EUR161 million, up 17% compared
with the first quarter of 2003 (up 20% at constant currency).
Operating margin was up 4 points to 43%.

This strong performance was achieved thanks to revenues growth
(which were up 9% at constant currency), efficient cost
management and lower bad debt.  These positive effects were
slightly offset by fixed higher termination costs and by a
higher number of sold handsets (up 20% versus 2003) for the
mobile operations.

Other profit and loss highlights for the first quarter of 2004

                      Financing expense

In the first quarter of 2004, financing expense amounted to E162
million compared with EUR180 million for the same period in
2003.  Average gross debt decreased to EUR13.0 billion in the
first quarter of 2004 from EUR18.9 billion in the first quarter
of 2003 including the EUR4 billion investment to increase
Vivendi Universal's stake in SFR Cegetel Group in 2003.
Nonetheless, as a result of the refinancing of the debt at a
time when Vivendi Universal's debt was poorly rated, the average
cost of gross debt increased from 4.34% in 2003 to 5.27% in
2004, including management of interest costs.

Other financial expenses, net of provisions

In the first quarter of 2004, other financial expenses, net of
provisions, amounted to EUR121 million compared to EUR146
million in the first quarter of 2003.  For the first quarter of
2004, they were mainly comprised of financial provisions
amounted to EUR102 million (mostly comprised of provision
accruals as a result of the mark-to-market of interest rate
swaps (EUR42 million) and DuPont shares (EUR48 million)).

         Gain on businesses sold, net of provisions

Since January 2004 and until end of May, divestitures signed or
finalized by Vivendi Universal were mainly comprised of Vivendi
Universal interest in Vivendi Universal Entertainment, Atica &
Scipione, Quirat+, Kencell, Sportfive, some Expand subsidiaries
and some real estate assets.  For the first quarter of 2004,
gain on businesses sold, net of provisions amounted to EUR11
million.

                     Income tax expense

For the first quarter of 2004, income tax expense totaled EUR297
million compared with EUR307 million for the same period in 2003
which included EUR34 million of taxes on asset sales.

     Equity in (losses) earnings of unconsolidated companies

As of March 31, 2004, equity in earnings of unconsolidated
companies amounted to EUR45 million compared with a loss of
EUR72 million as of March 31, 2003.  This improvement was mostly
driven by Elektrim Telekomunikacja, which mainly benefited from
the divestiture of Elnet, as well as the improvement of
Universal Parks and Resorts results.

                     Goodwill amortization

For the first quarter of 2004, goodwill amortization declined
48% to EUR146 million, primarily due to the exceptional write-
off recorded by Canal+ Group in the first quarter of 2003.

                      Minority interests

In the first quarter of 2004, the minority interest expense
totaled EUR266 million, compared with EUR256 million for the
same period in 2003, primarily comprised of minority interests
at SFR Cegetel Group and Maroc Telecom.

Copies of the financial statements are available free of charge
at http://bankrupt.com/misc/Vivendi_AppendixQ1.htm.

                            *   *   *

This press release contains consolidated results that are
unaudited.  The results are established under French Generally
Accepted Accounting Principles (French-GAAP).

CONTACT:  VIVENDI UNIVERSAL
          Media, Paris
          Antoine Lefort
          Phone: +33 (0) 1 71 71 11 80

          Agnes Vetillart
          Phone: +33 (0) 1 71 71 30 82

          Alain Delrieu
          Phone: +33 (0) 1 71 71 10 86

          Media, New York
          Flavie Lemarchand
          Phone: +(1) 212.572.1118

          Investor Relations, Paris
          Daniel Scolan
          Phone: +33 (0) 171 71 32 91

          Laurence Daniel
          Phone: +33 (0) 171 71 12 33

          Investor Relations, New York
          Eileen McLaughlin
          Phone: +(1) 212.572.8961


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


BERTELSMANN AG: Names Russell Denson CEO of U.S. Publishing Unit
----------------------------------------------------------------
An outsider is taking over the chief executive's job at Gruner +
Jahr USA Publishing, The Asian Wall Street Journal said over the
weekend.

Russell Denson, a Wisconsin-based president of Reiman Media
Group Inc., was handpicked by Bertelsmann AG, the German parent
of Gruner.  The paper says Mr. Denson's appointment is a
"surprise to the industry as he hails from outside the usual New
York publishing orbit."

He replaces Daniel B. Brewster Jr. who was fired in January.
Mr. Brewster left the company after 3 1/2 years at the helm that
was marred by a court battle with Rosie O'Donnell.  The former
talk-show host and the company fought over the collapse of Rosie
magazine, which the two had jointly published.


EM.TV AG: Misses Breakeven by a Hairline
----------------------------------------
EM.TV group has made substantial progress in the development of
earnings in the first three months of 2004 and ended the first
quarter close to breakeven, disregarding a large profit
amounting to EUR94.4 million resulting from restructuring.  The
development of the operating business was generally in line with
expectations.  The media company which originated from the
merger of the former EM.TV & Merchandising AG with EM.TV
Vermogensverwaltungs AG on March 31, 2004, reported consolidated
sales of EUR47.6 million at the end of the first quarter (Q1
2003 by EM.TV & Merchandising AG: EUR67.5 million).  EUR44.1
million thereof were attributable to the Sports segment and
EUR3.4 million to the Entertainment segment (children and youth
programs).

Consolidated earnings before interest, taxes, depreciation and
amortization (EBITDA) were positive at EUR2.8 million (Q1 2003:
-EUR4.4 million).  Earnings before taxes (EBT) amounted to
EUR94.5 million (Q1 2003: -EUR30.1 million).  The high EBT was
attributable to an one-off profit of EUR94.4 million in
connection with the restructuring of the convertible bond
2000/2005 which has been completed.  As a result, the group
reported a net profit for the quarter of EUR93.5 million after
minority interests.  After adjusting for this one-off profit,
net profit after minority interests would have amounted to
-EUR0.9 million.  The 45% holding in Tele Munchen Gruppe (TMG),
previously consolidated pro rata, is only included in the
financial results.  The cash flow for the period under review
amounted to EUR58.8 million (Q1 2003: EUR21.4 million) and was
mainly due to the deconsolidation of the TMG holding (operating
cash flow: -EUR4.1 million).

The Management Board is still anticipating positive segment
results in the Entertainment and Sports segments for the whole
of 2004.  On a consolidated level, slightly positive earnings
after taxes are expected for the whole year -- excluding the
first quarter one-off profit -- also in the light of positive
effects in Q2 in connection with the agreement achieved with
KirchMedia (acquisition of the remaining 50% of Junior.TV GmbH &
Co. KG by EM.TV, as well as a mutual compensation of receivables
and liabilities and individual license business).

CONTACT:  EM.TV AG
          Press Relations:
          Sabine Lais
          Phone: +49 (0) 89 - 99 500 461
          Fax:   +49 (0) 89 - 99 500 466

          KOMMUNIKATION FUR UNTERNEHMEN GMBH
          Frank Elsner
          Phone: +49 (0) 5404 - 91 92 0
          Fax:   +49 (0) 5404-91 92 29

          Investor Relation:
          Olaf Seidel
          EM-TV AG
          Phone: +49 (0) 89 - 99500 436
          Fax:   +49 (0) 89 - 99500 466


SENATOR FILM: Deutsche Bank Absorbs Movie Producer's Debt
---------------------------------------------------------
The London unit of Deutsche Bank agreed to acquire Senator
Entertainment's EUR168 million (US$206 million) loan, Senator
said in a statement to the Frankfurt exchange said, according to
Bloomberg News.

Movie producer Senator Entertainment AG applied for creditor
protection in April due to damaging write downs on some of its
film assets.  Its court-appointed receiver is Rolf Rattunde.

According to Senator Entertainment, Deutsche Bank promised to
help "boost the company's value through the continuation of its
operations and a refocusing on the main business."  Spiegel
magazine said earlier this month Deutsche Bank plans to resell
the debt to investors.  Senator Entertainment expects to
complete the deal shortly.


=============
H U N G A R Y
=============


NABI RT: Wins HUF594 Million Order for 700 SE Buses
---------------------------------------------------
NABI Bus Industries Rt. (BSE: NABI) has been awarded a contract
for 16 NABI 700 SE buses.  The award came at a time when the
company is experiencing budget challenges.  The contract is
worth HUF594 million (US$2.9 million/no. 2.4 million), and NABI
will deliver the buses on October 30, 2004.

NABI delivered buses to Kapos and Gemenc Volan on April 29,
2004.  Additionally, two NABI 700 SE buses will be delivered to
Volanbus by June 30, 2004.

The NABI 700SE bus, built on a Scania chassis, was introduced
last year for the Hungarian market.  This new model is capable
of transporting a maximum of 90 passengers, with 41 seats.  The
bus is powered by a 239 hp (169KW) Euro 3 compliant Scania
engine, and it is equipped with a seven-gear manual
transmission.   NABI captured 9% of the Hungarian market share
of buses (sold 209) in 2003.

CONTACT:  NABI RT
          Andras Bodor
          Corporate Affairs Director
          Phone: +36-1-401-7100
          E-mail: andras.bodor@nabi.hu


=============
I R E L A N D
=============


EUROFOOD: Local Judge Refers Jurisdiction Dispute to E.U. Court
---------------------------------------------------------------
The dispute between Parmalat special administrator Enrico Bondi
and the creditors of Irish subsidiary Eurofood has just become
complicated.

According to Reuters, the Dublin court that has been acting as
referee in the dispute until Thursday last week, sent the case
to the European Court of Justice where it is expected to
languish for a while.  Stephen Taylor, head of European
restructuring at PricewaterhouseCoopers, told Reuters "it would
be lucky for the European Court of Justice to resolve the issue
in under 12 months unless they can find a quick way through."

The issue revolves around the question: who has jurisdiction of
Eurofood?  Under E.U. regulation on cross-border insolvency, the
country where the main interest of the insolvent company is
located has jurisdiction.  Mr. Bondi does not dispute this;
rather he objects to the appointment of a local liquidator by
Bank of America and Eurofood's bondholders.  The Italian
administrator, who has accused the bank of "seriously suspect"
financial operations with Parmalat's disgraced former
management, wants the Irish court to appoint him instead.

Eurofood plays a crucial role in the investigation into alleged
fraudulent transactions perpetrated by its former managers.
Accordingly, the Irish unit was used to issue some of the bonds
that Parmalat sold to investors before collapsing under EUR14
billion (US$17.04 billion) of debts in December.  Eurofood owes
bondholders EUR122 million and about EUR4 million to Bank of
America.

Eurofood has few assets but Mr. Bondi needs "to keep a grip of
Parmalat's assets as he prepares a massive debt-for-equity
swap," Reuters says.  On June 4, he will meet with creditors in
Italy to discuss his rescue proposals, including details of the
swap, a source privy to the plan told the newswire.

The referral by the Dublin court marks the first time that the
disputed E.U. regulation will be taken up by the European Court
of Justice, the report said.


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


PARMALAT CHILE: Sold to Bethia for US$15 Million
------------------------------------------------
Chilean private investment group, Bethia, has completed the
purchase of Parmalat Chile for US$15 million, according to
Reuters.

The deal includes Parmalat's debts to suppliers, and investment
of US$5 million in expansion.  The debt is estimated at between
US$3 million and US$5 million.  Also included is the right for
Bethia to use Parmalat's brand for 15 years.  The two reached an
agreement in February, but creditor banks and milk farmers only
gave their approval early this month.

The disposal is part of the restructuring plan of the company's
Italian parent, Parmalat Finanziaria, which declared bankruptcy
in December.  The group is also disposing assets in the United
States and Asia.  In Latin America, Bethia is further eyeing
Parmalat's assets in Uruguay.


===================
L U X E M B O U R G
===================


BCP CAYLUX: US$250 Million Floating-rate Loans Get 'B-' Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services on Thursday assigned its 'B-'
rating and its recovery rating of '5' to BCP Caylux Holdings
Luxembourg S.C.A.'s $250 million of floating-rate loans due
2011.  BCP owns 84% of the ordinary shares of Frankfurt,
Germany-based specialty chemical company Celanese AG (B+/Watch
Neg/--).

The ratings are placed on CreditWatch with negative implications
awaiting the approval by shareholders of the domination
agreement and profit and loss transfer agreement, and for the
domination agreement to become effective.  The 'B-' rating is
two notches below the corporate credit rating and senior secured
bank loan rating; this and the '5' recovery rating indicate that
lenders of the floating-rate loans can expect only negligible
(0%-25%) recovery of principal in the event of default, since
those loans are secured only by a second lien on all of the
assets that secure the revolving credit facilities and term
loan.

"Proceeds from the floating-rate loans will be used to refinance
a portion of subordinated Bridge B loan borrowings," said
Standard & Poor's credit analyst Wesley E. Chinn.

Consequently, the planned pubic offering of senior subordinated
notes by BCP is expected to be reduced to $1.315 billion, from
$1.565 billion.  The outstanding ratings of BCP (B+/Watch Neg/--
) and recently lowered ratings of Celanese AG and CNA Holdings
Inc. (B+/Watch Neg/--) remain on CreditWatch with negative
implications (see related articles published on May 20, 2004).

With the completion of the Blackstone Group's tender offer for
Celanese shares (shareholders owning 84% of the outstanding
shares have accepted the tender offer), Celanese has begun the
process of entering into domination and profit and loss transfer
agreements.  These agreements will allow Blackstone to control
the management and share in the profits and losses of Celanese,
and provide for minority shares to receive a dividend or cash
compensation for their shares.  Upon receiving the necessary
approvals, all of the ratings of BCP, Celanese, and CNA Holdings
would be affirmed and removed from CreditWatch.  BCP Caylux
Holdings is a recently formed holding company and is limited in
its ability to exercise managerial control over Celanese,
including the payment of dividends and other distributions by
Celanese to BCP, until the domination agreement has become
effective.

Complete ratings information is available to subscribers of
RatingsDirect, Standard & Poor's Web-based credit analysis
system, at http://www.ratingsdirect.com. All ratings referenced
herein can be found on Standard & Poor's public Web site at
http://www.standardandpoors.com;under Credit Ratings in the
left navigation bar, select Find Ratings, then Credit Ratings
Search.


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


IFCO SYSTEMS: First-quarter Net Income Up 144% Year-on-year
-----------------------------------------------------------
IFCO Systems released its first quarter results last week.
These are the highlights:

         (US$ in thousands)       Q1 2003     Q1 2004     Change
                                --------------------------------
Revenues                          100,776     114,604      13.7%
EBITDA                             12,975      14,642      12.8%
EBITDA margin                        12.9%       12.8%
EBIT                                5,187       6,700      29.2%
EBIT margin                          5.1%        5.8%
Net income                          2,622       6,415     144.7%

Operating cash flows               (1,703)      2,001
Capital expenditures                4,759      13,885     191.8%

Headcount as of March 31           3,136       3,077      (1.9%)

Revenues grew by 13.7% to US$114.6 million from gains in both
RPC and Pallet Management Services businesses, while EBITDA
increased by 12.8% to US$14.6 million, principally from strong
profit gains in our RPC businesses.  The strong Euro development
relative to the US Dollar had a positive impact on our reported
results.  Eliminating this currency effect, revenue grew by 6.5%
while EBITDA increased by 2.2%.  Net income was US$6.4 million,
which was positively affected by a non-cash deferred tax benefit
of US$3.0 million.

For further explanation, see our quarterly report filed with the
Deutsche Borse AG and available at http://www.ifcosystems.comor
http://www.ifcosystems.de.

CONTACT:  IFCO SYSTEMS
          Investor Relations
          Phone: +49 89 74491 222
          Fax:   +49 89 744767 222
          E-mail: ir@ifcosystems.com


===========
R U S S I A
===========


AGRO-CHEREPOVETS: Vologda Court Appoints Insolvency Manager
-----------------------------------------------------------
The Arbitration Court of Vologda region commenced bankruptcy
supervision procedure on chemical company CJSC Agro-Cherepovets.
The case is docketed as A13-4195/04-25.  Mr. L. Vlasov (Moscow)
has been appointed temporary insolvency manager.

Creditors are asked to submit their proofs of claim to the
temporary insolvency manager at 117105, Russia, Moscow,
Varshavskoye schosse 21.  A hearing will take place on August
19, 2004 at the Arbitration Court of Vologda region.

CONTACT:  AGRO-CHEREPOVETS
          Russia, Vologda region, Cherepovets

          Mr. L. Vlasov, temporary insolvency manager
          117105, Russia, Moscow, Varshavskoye schosse 21

          Arbitration Court of Vologda region:
          Russia, Vologda, Gertsen str.1A, Hall 4


BEREZNIKOVSKY REFRIGERATING: Court Sets August 20 Hearing
---------------------------------------------------------
The Arbitration Court of Perm region commenced bankruptcy
supervision procedure on OJSC Bereznikovsky Refrigerating
Combine.  The case is docketed as A50-3403/2004-B.  Ms. L.
Syrvachyeva has been appointed temporary insolvency manager.

Creditors have until July 13, 2004 to submit their proofs of
claim to the temporary insolvency manager at 614068, Russia,
Perm, Bolshevistskaya str.163, Phone: (3422) 36-39-33, 36-68-46.
A hearing will take place on August 20, 2004, 10:30 a.m. at the
Arbitration Court of Perm region.

CONTACT:  BEREZNIKOVSKY REFRIGERATING COMBINE
          618400, Russia, Perm region, Berezniki, Schors str.1

          Ms. L. Syrvachyeva, temporary insolvency manager
          614068, Russia, Perm, Bolshevistskaya str.163,
          Phone: (3422) 36-39-33, 36-68-46


FIRST MUNICIPAL: Depositors Want Famous Faberge Eggs Confiscated
----------------------------------------------------------------
Seven depositors screwed by the bankruptcy of First Municipal
Bank have asked a court in Moscow to seize the famous Faberge
eggs now on display in a Kremlin museum, the Associated Press
said last week.

Armen Rshtuni, who heads the group of depositors, told the court
the 15 Czarist eggs belong to Viktor Vekselberg, an oil tycoon
linked to the embezzlement of their money.  Local daily,
Kommersant, who interviewed Mr. Rshtuni recently, said there are
legal precedents to such seizure.  The paper cited the case of
Inkombank, which had its collection of more than 500 paintings
including the famous "Black Square" by Russian abstract painter
Kazimir Malevich, seized and sold when the bank folded during
Russia's 1998 banking crisis.

The depositors claim Mr. Vekselberg was deeply involved in the
2002 transaction that funneled US$40 million in First Municipal
Bank deposits to his 51%-owned Alba-Allyans Bank.  They want the
court to temporarily seize the collection as a guarantee while
they seek damages.

Mr. Vekselberg's camp dismissed the legal action as "ravings."
Andrei Shtorkh, a representative of Bond of Times, which has
legal custody of the Faberge eggs, said "nothing threatens the
Faberge eggs."

A cultural foundation, Bond of Times was set up by Mr.
Vekselberg.  It is actively participating in the campaign to
bring home Russia's cultural heritage.  The Faberge eggs on
display at the museum include nine created for Czars Alexander
III and Nicholas II as gifts for the Czarinas Maria and
Alexandra.  They are part of a 180-piece Faberge collection
bought by Mr. Vekselberg earlier this year from the estate of
U.S. publisher Malcolm S. Forbes.  They reportedly cost Russia's
third richest man more than US$100 million.  A vice president of
oil company TNK-BP, Mr. Vekselberg has a US$5.9 billion fortune.


KURGAN BUS: Insolvent Status Confirmed
--------------------------------------
The Arbitration Court of Kurgan region declared OJSC Kurgan Bus
Factory insolvent and introduced bankruptcy proceedings.  The
case is docketed as A34-7299/03-C9.  Mr. V. Solovyev has been
appointed insolvency manager.  Creditors have until July 13,
2004 to submit their proofs of claim to the insolvency manager
at 640008, Russia, Kurgan, Avtozavodskaya str.5.

CONTACT:  KURGAN BUS FACTORY
          640008, Russia, Kurgan, Avtozavodskaya str.5

          Mr. V. Solovyev, insolvency manager
          640008, Russia, Kurgan, Avtozavodskaya str.5


YUKOS OIL: Cries Foul Over Decision Affirming RUB99 Bln Tax Bill
----------------------------------------------------------------
In view of Wednesday's ruling of the Moscow Arbitration Court to
claim from Yukos Oil over RUB99 billion in taxes, penalties and
fines for the year 2000, the company deems it necessary to
announce that:

The court ruling passed with numerous violations of procedural
norms, as well as the decision of the Tax Ministry dated 14
April 2004, are ungrounded and selective.

The court ruling has not come into effect, and the Company will
undoubtedly file a complaint against it, since the Company is
absolutely confident that it has always paid all taxes in good
faith and in accordance with the existing legislation of the
Russian Federation.  The Company believes that, a legal
precedent, which is exceptionally dangerous for the entire
Russian economy, was created whereby Yukos was made liable for
third parties' taxes.

In Yukos' opinion, the Tax Ministry's actions and the
Arbitration Court's ruling, blatantly infringing legislative
norms, including the expired term of levying fines for non-
existent tax violations, are aimed at destroying one of the
largest and most successful companies in Russia.  These actions
prove that the so-called "Yukos case" is clearly politically
motivated, which was acknowledged, in particular, by official
representatives of the Parliamentary Assembly of the Council of
Europe.

Recognizing its responsibility to the employees, shareholders,
partners and clients, Yukos will make every effort towards
fulfillment of all its obligations.


YUKOS OIL: Warns of Potential Bankruptcy
----------------------------------------
On May 26, 2004, the Arbitration Court of Moscow (Judge A.A.
Grechishkin) handed down a decision on collecting from OAO NK
Yukos additional profit tax in respect of the year 2000,
together with penalties and fines, in the amount of RUR99.4
billion (US$3.4 billion) based on the claim filed by Russia's
Tax Ministry.  In view of the decision, Oil Company Yukos,
addressing more than 60,000 of its shareholders and 105,000 of
its employees, considers it necessary to make the following
statement.

Being a good taxpayer, NK Yukos confirms its readiness to do
everything that may be necessary to comply with the requirements
of the government agencies, if a higher court upholds the
legality of the Arbitration Court decision of May 26, 2004.

Being responsible to the Company's employees, Board of Directors
and all the Company's shareholders for maintaining the Company's
job positions, property and financial stability, NK Yukos'
management deems it necessary to explain that:

In accordance with NK Yukos' corporate governance policy the
Company has always informed its shareholders of any risks,
including those arising from certain features of the Russian tax
laws.  The Company's management closely analyzed NK Yukos'
taxpaying practice, which existed in 2000 and in other periods,
and did not discover any risk of non-payment of taxes in excess
of the equivalent of US$3 billion in 2000.  All the taxes paid
by the Company in 2000 amounted to the equivalent of US$1,922
billion.  During that period, as well as in the next two years,
NK Yukos was Russia's third largest taxpayer by the amount of
taxes paid after RAO Gazprom and OAO LUKOIL, with NK Yukos
paying slightly less than the latter (thus, between 2000 and
2003 with NK Yukos' revenues being 26% less it paid only 8% less
taxes in absolute terms).  NK Yukos shares the lead with LUKOIL
by the amount of taxes paid per ton of produced oil, and Yukos'
taxes to revenues ratio (30-32%) has always been on the level
with the average industry figures.

In view of the foregoing, we cannot find any explanation for the
fact that after three years of numerous inspections and the
PricewaterhouseCoopers audit the government agency has found,
and the court after a short trial has confirmed, outstanding tax
arrears to the federal budget exceeding twice the average
industry figures.  According to the tax service and the court,
Yukos should have paid 59% of its sales revenues or 107% of its
profit confirmed by the international auditor as profit tax in
2000.

If a higher court recognizes NK Yukos' obligation to pay RUR99.4
billion, US$800 million in liquid funds currently available to
the Company might be applied to this end.  The expected volume
of the Company's liquid funds according to the results of the
2nd Quarter of 2004 is up to US$1,100 to 1,200 million.  If the
court agrees to such a manner of payment, the Company will be
able to pay no more than 60 to 70% of the volume in the 3rd and
the 4th Quarters.

At present, the Company is under an injunction prohibiting it to
sell any of its property, including the shares owned by the
Company.  Until the injunction is lifted, the Company is unable
to sell its assets in order to obtain liquid funds.
Consequently, if the Tax Ministry's efforts continue, we are
very likely to enter the state of bankruptcy before the end of
2004.

We must inform our creditors and shareholders of this in
advance.  We must also inform the Company's shareholders and
creditors of the Federal Tax Service's inquiry into NK Yukos'
2001 tax payments.  We foresee the risk of the Company being
presented with claims similar to those discussed above.

As of Thursday, the Company has not entered into any
negotiations with its shareholders or any persons interested in
buying new shares in order to cover the expected deficit of
liquid funds in the case the court decision is upheld.  We only
know that no proposals with regard to the matter discussed above
have been received by the Company's Board of Directors from NK
Yukos' major shareholders (Group MENATEP and Millhouse Group).

Acting in the interests of all its shareholders, the Company
will appeal against the decision dated May 26, 2004 of the
Arbitration Court of Moscow and will use its best efforts to
perform its obligations to its employees, shareholders, partners
and customers.

CONTACT:  YUKOS OIL
          Hugo Erikssen
          Phone: + 7 095 540-63-13
          E-mail: inter@yukos.ru

          NK YUKOS Press Service:
          Alexander Shadrin
          Phone: +7 095 785-08-55
          E-mail: pr@yukos.ru

          NK YUKOS Investor Relations:
          Alexander Gladyshev
          Phone: +7 095 788-00-33
          E-mail: investors@yukos.ru


UZH-URAL-MASH: Under Bankruptcy Supervision Procedure
-----------------------------------------------------
The Arbitration Court of Orenburg region commenced bankruptcy
supervision procedure on LLC industrial corporation Uzh-Ural-
Mash.  The case is docketed as A47-2955/2004-14GK.  Ms. O.
Shevtsova has been appointed temporary insolvency manager.

Creditors are asked to submit their proofs of claim to the
temporary insolvency manager at 460000, Russia, Orenburg, Gaya
str.23A.  A hearing will take place on August 19, 2004, 10:00
a.m. at the Arbitration Court of Orenburg region.

CONTACT:  UZH-URAL-MASH
          462403, Russia, Orenburg region, Orsk, Mir prosp.12

          Ms. O. Shevtsova, temporary insolvency manager
          460000, Russia, Orenburg, Gaya str.23A,
          Phone/Fax: (3532) 783845


ZAURALSKY FEED: Court Prescribes Bankruptcy Proceedings
-------------------------------------------------------
The Arbitration Court of Tyumen region commenced bankruptcy
supervision procedure on LLC Zauralsky Feed Mill.  The case is
docketed as A70-995/3-2004.  Ms. O. Leontjeva has been appointed
temporary insolvency manager.

Creditors are asked to submit their proofs of claim to the
temporary insolvency manager at Russia, Tyumen, Melnikayte
str.44a, Uk-Pur.  A hearing will take place on June 29, 2004,
9:00 a.m. at the Arbitration Court of Tyumen region.

CONTACT:  ZAURALSKY FEED MILL
          Russia, Tyumen, Sedova str.59

          Ms. O. Leontjeva, temporary insolvency manager
          Russia, Tyumen, Melnikayte str.44a, Uk-Pur


=====================
S W I T Z E R L A N D
=====================


4M TECHNOLOGIES: Net Profit Jumps to CHF16.5 Million
----------------------------------------------------
The first quarter consolidated results of 4MTechnologies Holding
are announced with net sales of CHF16.596 million (CHF2.604
million in 2003), a net profit of CHF393 (loss of CHF3.626
million in 2003) and a net operating cash flow of +CHF1.118
million (-CHF1.576 million in 2003).  General and administrative
expenses have been reduced by CHF200 in the quarter and the
overall operating expenses reduced by CHF770 versus 1st quarter
2003, equating to a reduction of approximately 20%.

The order book is satisfactory but the company remains prudent
due to currently lower wholesale pricing for optical disks.  4M
continues to seek further operating efficiencies and to invest
substantially in practical R&D.  The group is pleased with the
progression of the company so far.

CONTACT:  4M TECHNOLOGIES
          Avenue des Sports 42
          CH-1400 Yverdon-les-Bains

          Investor Relations
          Jean-Claude Roch
          Phone: ++41 (0) 24 4237 111
          Fax:   ++41 (0) 24 4237 181
          E-mail: jclaude.roch@4m-inc.ch


SCANDINAVIAN AIRLINES: Moody's Downgrades Credit Rating to B1
-------------------------------------------------------------
Credit rating company Moody's Investor's Service on Thursday
downgraded the SAS credit rating from Ba3 to B1 for the
company's "Senior Implied Rating," corresponding to a one-step
downgrade of the rating.  Moody's has also changed the outlook
rating from "Negative" to "Stable."

The background to the change in prospects to "Stable" is that
Moody's assesses that the SAS "Turnaround 2005" program is
progressing as planned and is generating the promised results.
Moody's also recognizes the strong support provided to SAS by
the trade unions to implement the necessary changes in
collective labor agreements.  The credit rating company is also
positive about SAS's limited future capital requirements and the
company's current program for freeing up capital.  Finally,
Moody's assesses that the strong engagement of SAS Group
Management in the process of change is positive.

Among other factors, the background to the downgrade lies in the
generally weak market for business travel and depressed prices,
with increased competition and consequent overcapacity in the
Scandinavian market, combined with a slightly weaker financial
position.

The SAS Group is in a situation with favorable liquidity and
good access to unutilized committed lines of credit.  The change
in credit rating does not affect the SAS Group's existing loan
portfolio.

CONTACT:  SCANDINAVIAN AIRLINES
          Sture Stolen
          Head of SAS Group Investor relations
          Phone: + 46 8 797 1451


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


ACCOMODATION LINE: Hires Liquidator from David Rubin & Partners
---------------------------------------------------------------
At an Extraordinary General Meeting of the Members of the
Accomodation Line Limited Company on May 20, 2004 held at the
offices of David Rubin & Partners, Pearl Assurance House, 319
Ballards Lane, London N12 8LY, the Extraordinary Resolution to
wind up the Company was passed.  Asher Miller of David Rubin &
Partners, Pearl Assurance House, 319 Ballards Lane, London N12
8LY has been appointed Liquidator for the purpose of such
winding-up.

CONTACT:  DAVID RUBIN & PARTNERS
          Pearl Assurance House
          319 Ballards Lane,
          London N12 8LY
          Contact:
          Asher Miller, Liquidator


ADVANCED BIOLOGICS: Calls in Liquidator
---------------------------------------
At an Extraordinary General Meeting of the Members of the
Advanced Biologics (Europe) Limited Company on April 28, 2004
held at Temple Court, 13A Cathedral Road, Cardiff CF11 9HA, the
Ordinary and Extraordinary Resolutions to wind up the Company
were passed.  Simon Thornton has been appointed Liquidator for
the purpose of such winding-up.


AIRSIDE LIGHTING: Winding up Resolutions Passed
-----------------------------------------------
At an Extraordinary General Meeting of the Members of the
Airside Lighting Limited Company on May 13, 2004 held at
Manchester Central Travelodge, Blackfriars Street, Manchester M3
5AB, the Ordinary and Extraordinary Resolutions to wind up the
Company were passed.  Andrew W Thompson and Jeremy C Frost have
been appointed Joint Liquidators for the purpose of such
winding-up.


ARLA FOODS: Becomes Sole Milk Supplier for Asda Supermarkets
------------------------------------------------------------
U.K.'s supermarket chain, Asda, announced on Tuesday that they
have awarded Arla Foods an exclusive contract to supply milk for
their business.  At the same time, it announced the axing of two
of its former supplier, Robert Wiseman Diaries and Dairy Crest.

Chris Brown, Asda's agricultural manager said that Arla Foods
has a segregated supply chain, which utilizes dedicated group of
farmers.  "In this manner, we (Asda) will be able to guarantee
good supply of milk because we know where it came from.  That is
the biggest advantage Arla Foods has given to the company," Mr.
Brown added.

Arla Foods will be supplying fresh liquid milk and cream to the
265 stores in U.K.  In March, Arla Foods announced a redundancy
plan that will cut 700 jobs from subsidiaries in Denmark and
Sweden and possibly close two or three of its Swedish liquid
milk dairies.  The company's income has been squeezed by
sluggish sales at home and abroad.


ASA THERMAL: Names O'Hara & Co Liquidator
-----------------------------------------
At an Extraordinary General Meeting of the Members of the ASA
Thermal Limited Company on May 20, 2004 held at O'Hara & Co,
Wesley House, Huddersfield Road, Birstall, Batley WF17 9EJ, the
Ordinary and Extraordinary Resolutions to wind up the Company
were passed.  Peter O'Hara of O'Hara & Co, Wesley House,
Huddersfield Road, Birstall, Batley WF17 9EJ has been appointed
Liquidator for the purpose of such winding-up.

CONTACT:  O'HARA & CO
          Wesley House,
          Huddersfield Road,
          Birstall, Batley WF17 9EJ
          Contact:
          Peter O'Hara, Liquidator


AUDEO DISTRIBUTION: Hires Liquidator from Haines Watts
------------------------------------------------------
At an Extraordinary General Meeting of the Members of the Audeo
Distribution Limited Company on May 17, 2004 held at Highfield
Court, Tollgate, Chandlers Ford, Eastleigh SO53 3TZ, the
Ordinary and Extraordinary Resolutions to wind up the Company
were passed.  David Clements of BKR Haines Watts, 6 St Stephen's
Court, 15-17 St Stephens Road, Bournemouth BH2 6LA has been
appointed Liquidator for the purpose of such winding-up.

CONTACT:  BKR HAINES WATTS
          6 St Stephen's Court
          15-17 St Stephens Road,
          Bournemouth BH2 6LA
          Contact:
          David Clements, Liquidator


BDP SERVICES: Appoints Liquidator from Sinclair Harris
------------------------------------------------------
Name of Companies:
BDP Services Limited
Gregory Wood Holdings Limited
Gregory Wood Management Limited

At an Extraordinary General Meeting of the Members of these
Companies on May 18, 2004 held at the offices of Penningtons
Solicitors, Bucklersbury House, 83 Cannon Street, London EC4N
8PE, the Extraordinary Resolution to wind up the Company was
passed.  Jonathan Sinclair of Sinclair Harris, 46 Vivian Avenue,
Hendon Central, London NW4 3XP has been appointed Liquidator for
the purpose of the winding-up.

CONTACT:  SINCLAIR HARRIS
          46 Vivian Avenue,
          Hendon Central,
          London NW4 3XP
          Contact:
          Jonathan Sinclair, Liquidator


CORE AFFINITY: Meeting of Creditors Set June 7
----------------------------------------------
Creditors of Core Affinity Marketing Limited will have a Meeting
on June 7, 2004 at 11:00 a.m.  It will be held at Moore
Stephens, 1 Snow Hill, London EC1A 2EN.

Creditors who want to be represented at the Meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to Moore Stephens, 1 Snow Hill, London EC1A 2EN not
later than 12:00 noon, June 6, 2004.

CONTACT:  MOORE STEPHENS
          1 Snow Hill,
          London EC1A 2EN
          Joint Administrators:
          Mark Shaw
          Jeremy Willmont


CORPORATE CONSULTANCY: Names Liquidator from Valentine & Co.
------------------------------------------------------------
At an Extraordinary General Meeting of the Corporate Consultancy
U.K. Limited Company on May 18, 2004 held at the offices of
Valentine & Co, 4 Dancastle Court, 14 Arcadia Avenue, London N3
2HS, the Ordinary and Extraordinary Resolutions to wind up the
Company were passed.  Mark S Reynolds of 4 Dancastle Court, 14
Arcadia Avenue, London N3 2HS has been appointed Liquidator for
the purpose of such winding-up.

CONTACT:  VALENTINE & CO
          4 Dancastle Court
          14 Arcadia Avenue,
          London N3 2HS
          Contact:
          Mark S Reynolds, Liquidator


DB NORTHUMBRIA: Winding up Resolutions Passed
---------------------------------------------
At an Extraordinary General Meeting of the DB Northumbria
Limited Company (t/a Drain Doctor Newcastle) on May 20, 2004
held at 4 Northumberland Place, North Shields NE30 1QP, the
subjoined Extraordinary Resolution to wind up the Company was
passed.  John Bell and Simon John Lundy of Hawdon Bell & Co., 4
Northumberland Place, North Shields NE30 1QP have been appointed
Joint Liquidators for the Company.

CONTACT:  HAWDON BELL & CO
          4 Northumberland Place,
          North Shields NE30 1QP
          Contact:
          John Bell, Liquidator
          Simon John Lundy, Liquidator


DUNDEE FOOTBALL: Lenders Agree to Save Club via CVA
---------------------------------------------------
Creditors of Dundee Football Club approved a Company Voluntary
Arrangement (CVA) for the club, giving it time to regain health
after a phase of financial mismanagement.

On Wednesday, 84% of unsecured creditors agreed to retain a 25%
share from future player proceeds in the close season and the
January transfer window, according to Europe Intelligence Wire.

The club owes creditors GBP20 million, 50% of which belongs to
HBOS.

Tom Burton and his partners in Ernst & Young accountants took
over control of the club in November.  Only six months earlier,
Dundee was vying for the Scottish Cup final.  At the time of the
administration, the club was losing up to GBP100,000 a week.

The approval of the CVA meant Dundee had escaped the ten-point
penalty that the Scottish Premier League is set to impose on any
club still in administration by May 31.


EQUITABLE LIFE: Urges Govt to Allow Ombudsman to Probe GAD
----------------------------------------------------------
Equitable Life called on the government to amend legislation to
give the Parliamentary Ombudsman (PO) the power to investigate
the Government Actuary's Department (GAD).

Last month the Financial Secretary to the Treasury, Ruth Kelly,
confirmed that Ann Abraham, the PO, could investigate the GAD in
any new inquiry.  But it emerged that it would require an
amendment to the Parliamentary Commissioner Act 1967 (the Act)
to remove any doubt as to whether GAD falls within her
jurisdiction.

Charles Thomson, the Society's chief executive, dispatched a
letter to Douglas Alexander MP, Minister of State at the Cabinet
Office, who has responsibility for the legislation under which
the Parliamentary Ombudsman operates.  In the letter, Mr.
Thomson urges the minister "without delay" to draft and table a
statutory instrument which would update the Act to enable her to
probe the GAD's role in regulating the Society in the 1980s and
1990s.

In recent months, Equitable Life has been actively lobbying for
the PO to open a new inquiry.  Recently, Chairman Vanni Treves
write all MPs and, at the Society's annual meeting last week, he
told policyholders that the PO should investigate regulatory
maladministration.  The Society's letter to the government
follows a meeting between Vanni Treves and Charles Thomson and
Ann Abraham on Tuesday (25 May) during which the Society laid
out their case for her opening a new investigation into the
regulation of Equitable Life.

The Penrose Report, published in March by the Treasury, was
particularly scathing of the role of the GAD in the 1980s and
1990s, and the 830-page report also criticized the regulatory
management of the DTI and the Treasury over the same period.

The Parliamentary Ombudsman invited interested parties to write
to her setting out why she should open a fresh investigation
into Equitable Life.  The deadline for submissions closed on 21
May and she is now reviewing the correspondence, including many
from MPs and policyholders.  Ms. Abraham has confirmed that she
will inform Parliament of her decision ahead of its summer
recess which starts on 22 July.

Charles Thomson said: "The moral case for a new inquiry is
compelling.  After she has reviewed all the submissions, I
believe the Ombudsman should ask the Government to extend her
power to investigate GAD and I am confident there would be
cross-party consensus to the amendment to the Act.  A new
investigation by the PO would be a fair, fast and final say on
the terrible situation that befell the Society and its
policyholders."

The Society also confirmed that it has decided not to ask EMAG
for any costs associated with the resolutions, tabled by the
pressure group at the Society's AGM last week.  EMAG's two
resolutions had asked the Society's members for GBP2 million to
pursue government compensation and also to meet the cost of
circulating EMAG's resolutions.  Members overwhelmingly rejected
EMAG's resolutions with a resounding 80% giving it the thumbs
down.

"The Board will always deal with individuals or groups who have
constructive comments to make and are prepared to enter into
sensible and civil dialogue.  We will not support those whose
actions seek to distract and destabilize the Society and, in
doing so, cause unnecessary anguish to continuing
policyholders," said Mr. Thomson.

CONTACT:  EQUITABLE LIFE
          Media Enquiries:
          Tony McGarahan
          Phone: 020 7710 3784
                 07966 386145

          Alistair Dunbar
          Phone: 01296 561 502
                 07967 564 039


EUROBUREAUX LIMITED: Names Liquidator from Pridie Brewster
----------------------------------------------------------
At an Extraordinary General Meeting of the Eurobureaux Limited
Company on May 20, 2004 held at 120 Sloane Street, London SW1,
the subjoined Special Resolution to wind up the Company was
passed.  Clive Robert Hammond of Pridie Brewster, 29-31 Greville
Street, London EC1N 8RB has been appointed Liquidator for the
purpose of such winding-up.

CONTACT:  PRIDIE BREWSTER
          29-31 Greville Street,
          London EC1N 8RB
          Contact:
          Clive Robert Hammond, Liquidator


FOUR SEASONS: Hires Gibson Hewitt Administrator
-----------------------------------------------
Lyonn Gibson and Robert Hewitt of Gibson Hewitt have been
appointed joint administrative receivers for Four Seasons Garage
Limited Company.  The appointment was made May 18, 2004.

The company sells vehicles.  Its registered office is located at
215 Richmond Road, Kingston-upon-Thames, Surrey KT2 5DG.

CONTACT:  GIBSON HEWITT
          5 Park Court,
          Pyrford Road, West Byfleet,
          Surrey KT14 6SD
          Receivers:
          Lynn Gibson
          Robert Hewitt
          (IP Nos 6708, 6725)


HAWKE COMPUTER: Appoints Tenon Recovery Liquidator
--------------------------------------------------
At an Extraordinary General Meeting of the Members of the Hawke
Computer Systems Limited Company on May 19, 2004 held at 1
Newlands Drive, Poyle, Slough SL3 0DX, the Special Resolution to
wind up the Company was passed.  S R Thomas and S J Parker of
Tenon Recovery, Sherlock House, 73 Baker Street, London W1U 6RD
have been appointed Joint Liquidators for the purpose of
winding-up the Company.

CONTACT:  TENON RECOVERY
          Sherlock House,
          73 Baker Street,
          London W1U 6RD
          Contact:
          S R Thomas, Liquidator
          S J Parker, Liquidator


HHG PLC: Towry Law Closes International Business
------------------------------------------------
Towry Law, a subsidiary of HHG PLC, on Thursday announced that,
in light of difficult market conditions and following a
strategic review, it will close the operations of Towry Law
International (TLI) to new business.  Subject to regulatory
approval, the TLI offices in the Middle East (Bahrain and Dubai)
and Japan will close and the TLI office in Hong Kong will become
the client-servicing center for all of TLI's international
business.

TLI has advised the appropriate regulatory authorities and is
writing to all existing clients to advise them of this decision
and provide information on arrangements for future service
provision.  TLI will work with regulators in each jurisdiction
to achieve an orderly exit from the respective markets.

The closure of TLI has no impact on the operations of Towry Law
in the United Kingdom.  It is not expected to have a material
impact on the HHG Group.

CONTACT:  HHG PLC
          4 Broadgate
          London EC2M 2DA
          Registered in England
          No. 2072534
          ABN 30 106 988 836

          Investor Relations
          Gail Williamson
          Director
          Phone: +44 20 7818 5310
          E-mail: investor.relations@hhg.com

          HHG Media - UK
          Alex Child-Villiers
          Financial Dynamics
          Robert Bailhache
          Phone: +44 20 7269 7190

          HHG Media - Australia
          Graham Canning, Cannings
          Catherine Frost, Cannings
          Phone: +61 2 9252 0622


JOHN CHEMICALS: Deadline for Debt Claims Set June 9
---------------------------------------------------
There will be a Creditors Meeting of the John Chemicals Limited
Company on June 10, 2004 at 1:30 p.m.  It will be held at the
offices of Grant Thornton, 1st Floor, Royal Liver Building,
Liverpoool L3 1PS.

Creditors who want to be represented at the Meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to Grant Thornton, 1st Floor, Royal Liver Building,
Liverpool L3 1PS not later than 12:00 noon, June 9, 2004.

CONTACT:  GRANT THORNTON
          1st Floor,
          Royal Liver Building,
          Liverpool L3 1PS
          Contact:
          S Croston, Joint Administrative Receiver


JOHN FIBRES: Meeting of Creditors Set June 10
---------------------------------------------
There will be a Creditors Meeting of the John Fibres Limited
Company on June 10, 2004 at 3:30 p.m.  It will be held at the
offices of Grant Thornton, 1st Floor, Royal Liver Building,
Liverpool L3 1PS.

Creditors who want to be represented at the Meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to Grant Thornton, 1st Floor, Royal Liver Building,
Liverpool L3 1PS not later than 12:00 noon, June 9, 2004.

CONTACT:  GRANT THORNTON
          1st Floor
          Royal Liver Building,
          Liverpool L3 1PS
          Contact:
          S Croston, Joint Administrative Receiver


JOHN HYDRAULICS: Sets Creditors Meeting June 10
-----------------------------------------------
The Creditors of John Hydraulics Limited Company will have a
Meeting on June 10, 2004 at 2:30 p.m.  It will be held at the
offices of Grant Thornton, 1st Floor, Royal Liver Building,
Liverpool L3 1PS.

Creditors who want to be represented at the Meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to 1st Floor, Royal Liver Building, Liverpool L3 1PS
not later than 12:00 noon, June 9, 2004.

CONTACT:  GRANT THORNTON
          1st Floor,
          Royal Liver Building,
          Liverpool L3 1PS
          Contact:
          S Croston, Joint Administrative Receiver


LEGION PROPERTY: Calls in Liquidator
------------------------------------
At an Extraordinary General Meeting of the Members of the Legion
Property Ltd. Company on May 14, 2004 held at 3rd Floor, Regent
House, Bath Avenue, Wolverhampton WV1 4EG, the Special
Resolution to wind up the Company was passed.  Mark Jonathan
Botwood has been appointed Liquidator for the purpose of such
winding-up.


LG ELECTRONICS: To End Production in August
-------------------------------------------
LG Electronics Inc. has decided to liquidate its 16-year old
microwave-oven manufacturing company in Britain, according to
Asia Pulse Businesswire.

The Korea-based company blamed mounting labor costs in Britain
and damaging competition from low-priced microwave ovens
imported from China for the closure.

LG Electronics North of England, which started operation in
1988, will manufacture its last microwave oven in August.


MARKS & SPENCER: Retail Tycoon Expected to Offer GBP8 Billion
-------------------------------------------------------------
Retail entrepreneur Philip Green is considering making an offer
for clothing retailer Marks & Spencer, according to reports.

The news sent shares in the struggling retailer higher so that
by its current valuation, Marks & Spencer is estimated to be
worth GBP7.9 billion.  Analysts say Mr. Green must offer between
GBP8 billion and GBP10 billion for the business.

Any proposal would involve a mixture of cash and shares in a new
company which would seek a listing," said a statement from
Revival Acquisitions, a group controlled by the Green family.
The plan reportedly has the backing of five banks, including
HBOS, Royal Bank of Scotland and Barclays Capital  Mr. Green is
being advised by Merrill Lynch and Goldman Sachs.  He is
planning to approach the board within the next few days
regarding an offer.

Marks & Spencer is struggling in an environment of intense
competition with rivals such as Tesco.  Its chairman, Luc
Vandevelde, is leaving after four and a half years.  Recently,
Marks & Spencer Chief Executive, Roger Holmes admitted the
company continues to lose market share in clothing.  Its market
share in clothing fell 0.2% due to poor sales in womenswear and
childrenswear. It's food business is not faring well either,
with its newly launched GBP15 million Lifestore in Gateshead
performing below its sales targets.


METHOD MANAGER: Hires Liquidator from Tenon Recovery
----------------------------------------------------
At an Extraordinary General Meeting of the Members of the Method
Manager Limited Company on May 18, 2004, the subjoined Special
Resolution to wind up the Company was passed.  Ian William Kings
of Tenon Recovery, Tenon House, Ferryboat Lane, Sunderland SR5
3JN has been appointed Liquidator for the purpose of such
winding-up.

CONTACT:  TENON RECOVERY
          Tenon House
          Ferryboat Lane,
          Sunderland SR5 3JN
          Contact:
          Ian Williams Kings, Liquidator


NORCO MANAGEMENT: In Administrative Receivership
------------------------------------------------
The Norco Management Services Limited Company has appointed
Stephen John Tancock and Neale Andrew Jackson as joint
administrative receivers.  The appointment was made May 21,
2004.

Norco Management is engaged in general construction and civil
engineering.  The Company's registered office address is located
at First Floor, Holbrook House, 72 Bank Street, Maidstone, Kent
ME14 1SN.

CONTACT:  FIRST FLOOR
          Holbrook House,
          72 Bank Street,
          Maidstone, Kent ME14 1SN
          Receivers:
          Stephen John Tancock
          Neale Andrew Jackson
          (IP Nos 8769, 9206)


QUEENS MOAT: To Dispose Sloane Square Moat House
------------------------------------------------
The Board of Queens Moat Houses plc announces that a wholly
owned subsidiary of the Company has exchanged a conditional
contract to sell the Sloane Square Moat House, London to Sloane
Square Hotel Limited, a company owned by a consortium of private
investors, for a consideration of GBP12.35 million in cash.  The
disposal is conditional upon the consent of the Company's
principal lending bankers and the release of the property from
the security of the Company's Mortgage Debenture Stocks.
Completion is expected to take place on or before the 30 June
2004.

The Sloane Square Moat House has 105 rooms and during the year
ended 29 December 2002 generated trading profits of GBP1 million
on turnover of GBP3.1 million.  The book value of the Hotel as
at 29 December 2002 was GBP10.5 million.

The Board considers the impact of the disposal is not material
on the Company.  Substantially all of the net proceeds of the
sale will either be retained by the Company for working capital
purposes or used to repay debt.

CONTACT:  QUEENS MOAT HOUSES PLC
          Stuart Metcalfe,
          Chief Executive

          Ashley Krais,
          Deputy Chief executive and Group Finance Director
          Phone: 01708 730522

          COLLEGE HILL
          Mark Garraway
          Crawford Burden
          Phone: 020 7457 2020


ROYAL MAIL: Misses 'Quality of Service' Targets
-----------------------------------------------
Royal Mail last year delivered nine out of ten First Class
letters the next working day, but has missed its year-end
quality of service targets.

The full year cumulative result for year ending March 2004 for
First Class mail was 90.1%, against a target of 92.5%.

Chief Executive Adam Crozier said: "I accept that our quality of
service has not been good enough.  Every letter is important to
us and we are urgently working to improve our quality of service
for customers."

Up until September Royal Mail's service was the best on record,
with June to September performance reaching 93.1%, ahead of
target.  However the industrial action in the autumn severely
hit its deliveries and First Class performance fell to around
85%.

First Class service quality recovered during the final three
months of the year to 89.4%, and Second Class mail quality, in
the same period rose to 98.4%, just missing its target by a
tenth of one per cent.

Since then Royal Mail has made some of the biggest changes ever
made in the way that it operates -- moving to single daily
delivery, changing the way it transports mail and changing its
mail center operation.  After two years where losses reached
more than GBP1 million every day, these major changes are vital
if Royal Mail is to succeed in the future.  The impact of
current problems associated with a minority of the offices
undergoing change is not covered by the period reported -- it
will be shown in this year's report.

Mr. Crozier said: "Prior to the strikes many services were
demonstrating a stronger level of performance than ever before,
and I am confident that once the major changes have been fully
implemented customers will see quality improve.  Our top
priority at the moment is to address the issues that have caused
service quality in some places to drop because of teething
problems with our operational changes.

"Our postmen and women continue to do an outstanding job, and I,
like them, am committed to improving performance for customers
and consistently meeting our regulatory targets."

Full year performance for Second Class mail was 97.8% against a
target of 98.5%.  In the first half of the year Second Class
performance was 98.7%, but dropped during the autumn strike
quarter to 95.1%.

Royal Mail's quality of service results are independently
researched on Royal Mail's behalf.  The validity and accuracy of
the quality of service data are accepted by both Postcomm and
Postwatch.  Each month 100,000 sample items are posted and
traced by an independent research organization at a cost of some
o5 million a year.  These items represent the average postbag
and reflect the different volumes and destinations of mail
posted in different postcode areas.

                            *   *   *

Royal Mail is one of only a handful of postal administrations in
the world to offer customers compensation for delays to basic,
non-guaranteed mail.

Around 100,000 letters, parcels and packets are sampled each
month. The large bulk of the items tested are letters.

The samples tested by Royal Mail's independent researchers are
representative of the average postbag -- so they contain mail
items posted in all 121 postcode areas to addresses in all 121
postcode areas.

The Royal Mail independent test samples are weighted -- so they
reflect the different volumes of mail posted in different
postcode areas.

The validity and accuracy of the QoS data published by Royal
Mail has been accepted by both Postcomm and Postwatch.

CONTACT:  ROYAL MAIL
          148 Old Street
          London
          EC1V 9HQ
          Home Page: http://www.royalmail.com


ROYAL MAIL: Postage Price Hike Helps Firm Return to Profit
----------------------------------------------------------
For the first time in four years, Royal Mail has made money on
its day-to-day operations with a profit of GBP220 million in
2003-04, compared to losses of GBP197 million last year, a
turnaround of more than 200%.

The profit came from a 4% growth in turnover to GBP8,633
million, largely as a result of the postage price rise in May
2003, and customers posting more letters last year with volumes
up 1.6%.  Cost efficiencies from operational changes also played
a key role.

The return to profitability follows a two-year period when
losses from operations reached more than GBP1 million a day.
However the return on turnover of just 2.5% is still way below a
commercial return and much lower than in the 1990's when returns
of around 6% were generated in some years, and significantly
lower than our main competitors.

Royal Mail's Chairman, Allan Leighton said, "There has been much
comment on Royal Mail's Renewal Plan and whether its focus is
either on finance or service.  The answer is definitely both.
For clarity, everyone should be clear that in the period covered
by these results prior to the unofficial industrial action in
the Autumn, the Quality of Service results in the company were
the best for 15 years.  Cumulatively, we've not achieved our
license targets - but the biggest single factor behind this was
that unofficial strike.  Without it, we would have reported
Quality of Service levels higher than at the beginning of the
Renewal Plan, as well as an even higher profit number -- as our
profit outturn has been reduced by both lost revenue and the
cost of compensation to our customers.

The current Quality of Service issues are not covered by this
reporting period.  Their impact will be shown in the coming
year's financial performance.  However, the current reductions
in quality, which are driven partially by the lack of a full
recovery from the unofficial action, but largely by the massive
modernization changes required in the company, are not
acceptable, are now beginning to improve and are the key focus
of everyone in the company."

To underline this, Mr. Leighton also announced that he is to
defer his entire earned bonus for the year until the Group meets
key agreed quality of service targets in 2004-05.  If these
numbers are not achieved, the bonus is waived.

Elmar Toime, the Deputy Executive Chairman who until recently
headed Royal Mail's letters operation, has agreed to defer half
his earned bonus for the year into 2004-05, to be conditional on
achievement of key Quality of Service targets.  At the same
time, other executive directors including Adam Crozier, Group
Chief Executive, are to waive the quality of service element of
their bonus for the year, which can be up to 20% of the total.

Although Royal Mail achieved 90.1% next-day delivery for First
Class mail last year despite serious industrial action in the
autumn of 2003, performance fell short of the 92.5% target set
by Postcomm.  Two weeks ago, Mr. Crozier said he was taking
direct control of the letters operation.

Mr. Leighton said: "Anything short of our targets is not good
enough.

"In deferring these bonuses, we are saying we have confidence in
everyone in Royal Mail achieving our key targets by the end of
this current year.

"This is the right response to the genuine concerns of our
customers.  It shows our determination to get quality of service
back on track everywhere," said Mr. Leighton.

Mr. Leighton also confirmed that the company had written to
Channel 4 and Hardcash, the producers of the 'Dispatches'
program, asking for an apology to the U.K.'s postmen and women
for the innuendo created by accusations in the program that
credit cards, which Barclaycard has since confirmed were not
posted into Royal Mail's system, had been stolen from the postal
system in an organized way.

He added: "By far the biggest impact on performance against
targets last financial year was the unofficial strikes in the
autumn.  The disruption meant we had no realistic chance of
hitting targets and we have failed all of the cumulative letter
quality targets for 2003-2004.  We've got to do a lot better
than that this current year.

"Making a profit, however, is a major step forward, especially
when Royal Mail was losing well over GBP1 million a day from its
operations barely two years ago, and allows us to invest in our
company and in our people' pensions and pay."

Mr. Leighton said 2003-04 was a tough year and 2004-05 -- the
last year of the company's three-year renewal plan -- was going
to be even tougher.

"Competition is increasing and we can't assume future growth
will drive profit.  Postage prices are also falling in real
terms under the regulator's price cap.  That's why it is
essential that Royal Mail completes what is, in effect, a re-
engineering of the letters operation -- a single daily delivery,
a new transport network and streamlining operations in the big
mail centers.

Operational Changes - Essential for a Successful Future

"These changes are the key to the successful completion of the
renewal plan to turn round the company and bring long-term
profitable performance.  It is a difficult challenge but the
operational changes we are making are the right thing to do.
They are essential to equip Royal Mail to compete effectively
and to give us the ability to provide consistent, high quality
service to our customers," said Mr. Leighton.

Mr. Crozier said the sheer scale of the changes being introduced
had inevitably hit quality of service in some areas.

"We are concerned about any single letter which does not arrive
on time.  Average First Class performance has dipped by around 4
percentage points during the period of the most intense changes.
That's not good enough.  Overall, Royal Mail provides a good,
value-for-money service but there's a clear need to address the
problem spots.

"We will ensure the problems are fixed as quickly as possible.
The points where mail is being delayed have been identified and
we are putting in place a range of immediate measures to tackle
the problems.  There is a concerted effort throughout Royal Mail
to get these operational efficiency changes right and return to
the sort of performance we delivered last summer when we
achieved some of the best levels of service since the current
quality measuring system began 15 years ago."

Mr. Crozier said he was pleased that last year had seen a
landmark 14%, 18-month, GBP300 a week basic pay agreement
linked to the operational changes in the letters business.

"Improving the pay and conditions of our people was crucial and
it was our priority for investment in the business.  We are a
people business and it is the people in Royal Mail who are
turning round the company.  Of course, the pay package will add
GBP340 million to wage costs in the letters business alone in a
full year and this is money we have to earn before we can make
any profit," said Mr. Crozier.

He added that the improved financial performance of the company
had enabled Royal Mail to increase its contribution to the
company's pension fund, initially by GBP270 million -- GBP130
million per annum to fund the deficit, and by a further GBP140
million as a result of the ending of the company's pension
holiday and increased contributions.  "We want our postmen and
women to continue to have the benefit of an excellent pension
scheme," said Mr. Crozier, "and this financial performance
enables this."

Pay increases in the letters business and in other parts of the
company, and increased pension costs, will add almost GBP700
million to Royal Mail's costs, underlining the challenge behind
the renewal plan's stretching target for 2004-05 of a GBP400
million profit from operations.

Mr. Crozier said: "It is vital we hit a GBP400 million profit as
it will trigger a Share in Success payment of GBP800 to our
people right across the company in the U.K.  Only a radically
changed company can deliver this profit.  We are now working to
complete the changes and ensure our customers are fully aware of
them, including a single delivery by lunchtime, with earlier
deliveries for large firms."

"It's important to remember that the Government is not taking a
dividend from our profits for a full five years, up to and
including this year -- so making these profits genuinely enables
us to invest in our people and in the business to improve our
Quality of Service."

He said the changes would mean that Royal Mail would continue to
have some of the very lowest postage prices in the EU, it would
be making deliveries in the same way as every other country but
nonetheless have some of the highest targets for quality.

He added that since the renewal plan was launched in April 2002,
27,100 people have left the company through a mix of voluntary
redundancy, natural turnover or outsourcing, and a further 5,000
are working their notice period and are expected to leave by
September 2004.

Reducing Losses

Losses on operations in both Parcelforce Worldwide and Post
Office Ltd. were reduced last year due to more efficient
operations.

Elmar Toime, Royal Mail's executive deputy Chairman who now
heads up the parcels and international business, said losses on
Parcelforce Worldwide's operations had almost been halved --
down from GBP198 million to GBP102 million.

"The challenge for Parcelforce Worldwide, however, is to
complete its transformation and deliver a break-even operating
profit.  Good progress has been made to date but the business is
still losing GBP100 million.  To eliminate these remaining
losses, the business must be single minded in delivering further
efficiency savings."

Mr. Toime added: "The business's customer performance has been
impressive with a 98% performance on its core service, putting
it firmly among the best of its 4,000 rivals."

GLS, Royal Mail's European parcels business, has had a very good
year, said Mr. Toime.  Its revenue grew by GBP32 million to
GBP818 million and the profit from delivering an average of one
million parcels a day in 30 countries more than doubled to GBP25
million in 2003-04, compared to GBP11 million the previous year.

Post Office Ltd cut its operating losses to GBP102 million -- a
48% improvement on the previous year.  David Mills, Chief
Executive, said: "Better cost control and improved product
profitability played major roles in reducing operating losses.

"We also made progress in tackling the financial problem of too
many urban branches chasing too little business through the
managed closure of 1,100 urban Post Office branches last year.

"Combined with the introduction of new services, our aim is to
create a vibrant business for the future.  We want to do all we
can to support the subpostmasters, who run the huge majority of
branches, through an enhanced range of services which attract
and retain the 29 million customers served by the network each
week."

"The joint venture agreement we signed with the Bank of Ireland
in March 2004 will result in a range of new services and the
first -- personal loans -- are already available.  We will be
launching this summer car insurance and other new services to be
rolled out this year include a range of savings accounts and a
credit card," said Mr. Mills.

Competition - a Reality

Mr. Leighton said 2004-2005 would see the first real competition
in the letters business with at least three companies bidding
for business mail through the contracts they have for access to
Royal Mail's final sorting and delivery networks.

"We started Royal Mail's renewal plan faced with the need to
stop the company losing money at the rate of well over GBP1
million a day," he said.

"Now, with competition developing rapidly, it's clear the
priority is to improve the service and ensure our customers
continue to chose Royal Mail because we deliver the service they
need and want.  We know what we need to do -- we are determined
to succeed," said Mr. Leighton.

The key points of Royal Mail's results for 2003-2004:

(a) Turnover increased by 4% to GBP8,633 million, as a result of
    the postage price increases in May 2003, which included 1p
    rises in the cost of basic First and Second Class stamps to
    28p and 21p (still among the very lowest in the EU), and
    mail volumes increasing by 1.6% to around 82 million letters
    in an average day although this was partly offset by a shift
    to lower priced services, including Second Class.

(b) The profit on day-to-day operations was GBP220 million.
    This represents a GBP414 million improvement on the
    underlying loss of GBP197 million in the previous year.
    However, the profit last year was a return on turnover of
    just 2.5% -- way below a commercial return, much lower than
    in the 1990s when returns of around 6% were generated in
    some years and way below the returns of TPG and Deutsche
    Post, currently 24.1% and 22.9% respectively (Quarter 1,
    04/05 figures).

(c) Royal Mail made a profit on operations of GBP253 million but
    around GBP200 million directly resulted from the increase in
    postage prices last year.  Volume increases and tight
    control on costs further contributed to the operating
    profit, rather than the much needed productivity savings
    from operational efficiency changes, which are now coming on
    stream.

(d) Post Office Ltd made a loss on operations of GBP102 million,
    a GBP96 million improvement on the GBP198 million loss the
    previous year.  The network comprises 15,961 branches --
    1,278 fewer than a year ago with 1,100 urban branches closed
    under the Network Reinvention program to resolve the problem
    of too many urban branches chasing too little business.
    Turnover grew 9% by GBP78 million to GBP977 million, helped
    by an increase in banking revenue.

(e) Parcelforce Worldwide cut its losses on operations to GBP102
    million, almost half the loss of GBP198 million a year
    earlier.  Turnover decreased by GBP51 million to GBP245
    million as the full year impact took effect of the decision
    to focus on time-guaranteed, express deliveries and exit
    from the standard parcel market.  Contracts with inadequate
    yields were also terminated.

(f) GLS, Royal Mail's European Parcels Business, grew its
    turnover 4% by GBP32 million to GBP818 million and made a
    profit of GBP25 million -- more than double the GBP11
    million in the year ago -- reflecting tight cost control and
    improvements in underlying profitability.  There was strong
    growth in core parcel volumes, especially in Central Europe.

(g) In the first two years of the renewal plan, which was
    launched in April 2002, just over 27,100 people left the
    company through a combination of voluntary redundancy,
    natural turnover and outsourcing.  By the end of March 2004,
    10,900 people had left through voluntary redundancy, 8,000
    had gone through natural turnover and a further 8,200 jobs
    had left through outsourcing deals. At year-end, a further
    5,000 people were working their notice period after
    accepting voluntary redundancy and are expected to leave by
    September 2004.

(h) There were 85,000 days lost to strike action in 2003-04,
    with some 80,000 in October and November when there was
    serious strike action centered in London.  The previous
    year, there were 5,800 days lost to strikes -- less than 1%
    of all the days lost to strikes in U.K. industry.  There are
    around one million days in the typical Royal Mail working
    week.

(i) The Government has agreed to waive dividend payments for the
    period of the Renewal plan, as well as for the two years
    prior to the plan's start.

Royal Mail's profit from operations is the first time in four
years the company has made money on its day-to-day trading.
(See the chart.)  The GBP220 million profit is a return on
turnover of just 2.5% -- less than the 3.7% return on the
GBP7,010 turnover in 1998-99.

CONTACT:  ROYAL MAIL GROUP PLC
          148 Old Street
          London
          EC1V 9HQ
          Home Page: http://www.royalmail.com/group


RUFFORD MOTOR: Creditors Meeting Set June 15
--------------------------------------------
There will be a Creditors Meeting of the Rufford Motor Company
Limited on June 15, 2004 at 11:00 p.m.  It will be held at
Mazars, The Atrium, Park Street West, Luton, Bedfordshire LU1
3BE.

Creditors who want to be represented at the Meeting may appoint
proxies.  Proxy forms must be submitted together with written
debt claims to CBA, 435 Lichfield Road, Aston, Birmingham B6 7SS
not later than 12:00 noon, June 14, 2004.


SBF AGRIC: Appoints Receivers from KPMG
---------------------------------------
Blair Nimmo and Neil Armour of KPMG Corporate Recovery were
appointed Joint Receivers of Aberdeen-based SBF Agrico Ltd. on
Tuesday, May 25, 2004.

The businesses' operations include George Sellar & Son Ltd., a
farm equipment distributor in Oldmeldrum and Fraser
manufacturing Ltd., which manufactures farm equipment in
Rothienorman.  The group currently employs approximately 190
permanent staff.

Established in 1998, the business with a combined turnover of
GBP20 million has experienced financial difficulties because of
the many issues faced in recent years by the agricultural
industry.

Joint Receiver, Blair Nimmo, head of KPMG Corporate Recovery in
Scotland said: "We are hopeful of being able to sell the
businesses as going concerns, preserving employment and economic
activity in the local area."

All interested parties are requested to contact the Joint
Receivers as soon as possible.

CONTACT:  KPMG CORPORATE RECOVERY
          Wilma Littlejohn, Corporate Communications Scotland
          Phone: 0131 527 6818
         Mobile: 07789 922521
         E-mail: wilma.littlejohn@kpmg.co.uk


SSL INTERNATIONAL: 2003 Operating Profit Down to GBP74.5 Million
----------------------------------------------------------------
Preliminary Results for the Year Ended 31st March 2004:

                                               Year Ended March

                                              2004         2003
                                              GBP'm        GBP'm
Sales                                        408.2         397.5
Continuing Consumer                          194.2         211.4
Other                                        602.4         608.9
Total Sales
Operating profit*                             74.5          82.0
Continuing consumer operating profit          26.1          27.4
Profit before tax*                            53.3          59.5
(Loss)/Profit before tax                      (7.5)         39.1
Free cash flow                                85.2          39.1
Earnings Per Share*                           20.3p        22.0p
(Loss)/Earnings Per Share                    (4.2)p        13.1p

(a) Disposals program nearing completion; business refocused
    and debt reduced

(b) Continuing consumer sales increase by 2.7%; growth in Durex
    of 7.4% to GBP140.8 million and Scholl footcare of 3.7% to
    GBP82.1 million

(c) Total operating margin of 12.4% (2003:13.5%) before the
    effect of medical disposals

(d) Free cash flow of GBP85 million generated of which GBP61
    million results from disposals, against GBP39 million last
    year

(e) Working capital efficiency improved to 19.6% of sales
    (2003:21.3%)

(f) Dividend rebased to reflect size of on-going business

*Including results of discontinued businesses, but before
exceptional charges of GBP40.7 million (2003: GBP21.2 million)
in operating profit and, including losses on disposal, of
GBP60.8 million (2003: GBP20.4 million) in profit before tax

Commenting, Ian Martin, Chairman said: "These results and the
approaching completion of our disposal program mark the
beginning of a new era for SSL as a focused consumer healthcare
company.  Our balance sheet is strengthened and for the first
time since the merger with LIG in 1999, we will be able to focus
single-mindedly on growing the value of our brand portfolio."

Garry Watts, Chief Executive added: "We are seeing evidence of
sustained growth in our brands.  Durex has maintained the growth
seen in the first half, whilst both Scholl footcare and the
Over-The-Counter portfolio performed much better in the second
half.  Our footwear business is benefiting from new direction
and new products and its prospects for the current year are
promising.

"We have a team of committed people at SSL who are determined to
drive growth in the value of our brands whilst as far as
possible eliminating unnecessary cost from the business.  If we
achieve these objectives, our operating margins for the consumer
business will rise towards the double digit levels seen in the
recent past."

Copies of the financial statements are available free of charge
at http://bankrupt.com/misc/SSL_2004.htm.

CONTACT:  SSL INTERNATIONAL PLC
          Garry Watts, Chief Executive
          Jan Young, Head of Investor Relations
          Phone: 020 7367 5773

          THE MAITLAND CONSULTANCY
          William Clutterbuck
          Brian Hudspith
          Phone: 020 7379 5151


VATHEK LIMITED: Winding up Resolutions Passed
---------------------------------------------
At an Extraordinary General Meeting of the Vathek (Marine)
Limited Company on May 19, 2004 held at 67 Butts Green Road,
Hornchurch, Essex RM11 2JX, the Special, Ordinary and
Extraordinary Resolutions to wind up the Company were passed.
Jeremy Stuart French of Redhead French, 43-45 Butts Green Road,
Hornchurch, Essex RM11 2JX has been appointed Liquidator for the
purpose of such winding-up.

CONTACT:  REDHEAD FRENCH
          43-45 Butts Green Road,
          Hornchurch, Essex RM11 2JX
          Contact:
          Jeremy Stuart French, Liquidator


* Default Rate of European High Yield Bonds 'Stable', Says Fitch
----------------------------------------------------------------
Fitch Ratings, the international rating agency, said Thursday
that it expects default rates on European High Yield bonds to
remain at around or below the 2003 level of 6.4% for the next
two years, notwithstanding the recent volatility in the market.
In a report published Thursday, entitled "FAQs: European High
Yield - Fundamentals v Technicals: Which Way Now For Default
Rates?", the agency says the dramatic sell-off during May 2004
has principally been driven by technical factors.  These factors
include the threat of rising U.S. interest rates, the evolving
high yield investor base, rising oil prices, geopolitical
tensions and the scale of the recent deal pipeline relative to
the size of the market.

"Have the underlying credit fundamentals of issuers changed
materially in such a short space of time? The answer, of course,
is "no", but there are factors, at a macroeconomic and
geopolitical level, that help to explain the apparent sudden
risk aversion of the investor base," said, Tony Stringer, head
of European Leveraged Finance at Fitch.

The report highlights the impact of the high yield sell-off on
transactions in the much maligned cable sector, both in the
primary and secondary markets, illustrating that technical
issues such as over-supply have affected individual deals,
irrespective of actual or perceived credit quality.

But the agency also strikes a note of caution, citing the trend
towards more aggressive structuring that has seen total leverage
ratios increase and a weak rating mix for the EUR4.9billion of
new issuance in April 2004, when 79% of deals were rated 'B' or
lower.  Fitch warns that this could have implications for
increasing default rates in 2006 and beyond, given historic
trends regarding typical time to default.

Fitch confirms that default rates have been improving since the
market's nadir in 2002, when the fall-out from the telecom/cable
sector saw a record default rate of 25.1%.  The 6.4% figure
recorded last year reflected largely the default by U.K.
telecommunication equipment manufacturer Marconi, without which
the rate would have been 3.2%, as the market has become more
diversified and less exposed to the travails of individual
sectors.  Weighted average recovery rates similarly continued
their improvement, to a healthier 24% last year from the 11%
seen in 2001 and 15% in 2002.

Looking ahead, the agency notes the continuing positive news on
default rates so far in 2004, with only one default recorded in
Fitch's index by the end of April, equating to an annualized
default rate of just 1.8%.  The report notes that this
apparently positive outlook for default rates is supported by
the improvement over time of the rating mix in the European high
yield market, which has seen a material shift in issuer credit
quality during the past three years.  From June 2001, when over
75% of the universe by volume was rated 'B+' or lower, including
24.8% in the 'C-CCC' categories, the rating mix at March 2004
reveals a much more robust level of credit quality, with 46.2%
in the 'BB' range and only 12.6% in the 'C-CCC' range.

The report is available at http://www.fitchratings.com,under
CDOs/Bank Loans/Managed Funds/Special Reports.

CONTACT:  FITCH RATING'S
          Tony Stringer, London
          Phone: +44 (0) 20 7417 6332

          Rachel Hardee, London
          Phone: +44 (0) 20 7417 6322

          Media Relations:
          Alex Clelland, London
          Phone: +44 20 7862 4084


                            *********


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-
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Copyright 2004.  All rights reserved.  ISSN 1529-2754.

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