/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/040705.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, July 5, 2004, Vol. 5, No. 131 Headlines F I N L A N D METSO CORPORATION: Closes EUR283 Mln Sale of Dynapac to Altor G E R M A N Y AGIV REAL: Seeking Amicable Settlement with ING BHF-Bank BLUE PIER: Framfab Germany Takes over Biz; Saves 14 Jobs BOUVIER: Douglas to Acquire Book Retailer EM.TV AG: Pursues EUR130 Mln Claim Against Former Board Members GROHE AG: Peter Korfer-Schun to Leave Board Next Month MOLOGEN AG: Deal with Arabian Partners Delayed WESTLB AG: Unloading U.S. Aircraft-leasing Business WESTLB AG: 'D' Individual Rating Removed from Watch Negative H U N G A R Y NABI RT: Chief Executive Patrick Rona Leaves I R E L A N D COGNIZANT TECHNOLOGY: U.S. Firm to Shut down Limerick Facility I T A L Y ALITALIA SPA: Giancarlo Cimoli Named New Chief Executive PARMALAT U.S.A.: Debtors Retains Keen Realty as Consultant K Y R G Y Z S T A N EKSPRESS: Sets Creditors Meeting July 20 KURULUSH BANK: Sets Public Auction of Assets July 8 MENTOR: Creditors Meeting Today OIL-GAS COMPANY: Public Auction of Assets Tomorrow SARY-KOO: To Auction 41 Lots of Farms, Implements July 11 SREDAZSTALKONSTRUKSIA: Public Auction Set July 9 VOST: Sets Public Auction July 16 N E T H E R L A N D S ROYAL SHELL: Announces Portfolio Actions and Write downs R U S S I A AGRO-PROM-TRANS: Declared Bankrupt BREAD PRODUCTS: Public Auction Set July 15 DAL-KVARTS-SAMOTSVETY: Deadline for Proofs of Claim August 10 DALNEVOSTOCHNAYA GORNOSTROITELNAYA: Declared Insolvent GLAV-FISH: Tyumen Court Appoints Insolvency Manager GORKY AUTOMOTIVE: Close to Restructuring EUR16 Million Debt MICHURINSKY FACTORY: Bankruptcy Proceedings Begin PLEMENNOY FACTORY: Deadline for Proofs of Claim August 10 SEL-MASH: Sets Public Auction July 14 YUGO-VOSTOK-ELEKTRO-MONTAZH: Declared Insolvent S P A I N IZAR: Union Assails Restructuring Plan; Threatens Strike S W E D E N LM ERICSSON: Amends Revolving US$1 Billion Credit Facility U K R A I N E DONETSK' KONTUR: Court Orders Moratorium on Creditors' Claims ELEKTRON-GAZ: Public Auction of Assets Set July 12 KALUSKIJ BROVAR: Sets Public Auction of Assets July 14 MEZHIVSKIJ MELKOMBINAT: Under Bankruptcy Supervision Procedure PSYOL: Bankruptcy Supervision Starts SAKI' AUTO: Deadline for Proofs of Claim Set July 15 SLAVONIC SODA: Sets Public Auction July 12 VLADIVSKA MACHINE: Court Begins Bankruptcy Supervision VYAZIVOK: Declared Insolvent U N I T E D K I N G D O M A A PAPER: General Meeting Set August 10 ABBEY NATIONAL: Winding up Resolutions Passed ALL FLOOR: Sets Final Meeting July 23 ANGLO FRENCH: Hires Hazlewoods Liquidator ARTERA GROUP: Final Meeting Set July 22 BAE SYSTEMS: Dick Olver Succeeds Chairman Sir Richard Evans BALMORAL STEELS: Sets July 23 Members Meeting BANTAMS: Last-minute Fundraising Saves Football Club B.H.W. LIMITED: Members General Meeting August 11 CHILDREN'S CONSUMER: Hires PricewaterhouseCoopers Liquidator COCOM INTERNATIONAL: Names Stoy Hayward Administrator COLT TELECOM: Warns of Lower-than-expected Results COLT TELECOM: Ratings Unaffected by Profit Warning CORPORATE TRAVEL: Hires PricewaterhouseCoopers Administrator CYBERES SYSTEMS: Hires Joint Administrator from PwC FII FOOTWEAR: Shoe Import Business for Sale FIRST LEISURE: Clubs Sold Through Management Buyout FORST BROACH: Sets Meeting July 7 GIBBON & SON: First Liquidation Meeting Set July 6 GLENCOE SKI: Under New Management HEADSTROM LIMITED: Appoints Receivers from PwC HHG PLC: Appoints Duncan Ferguson to Board JARVIS PLC: To Dispose of Interest in Baltic Rail Services J SAINSBURY: Chairman Leaves as Firm Lowers Profit Forecast MARKS & SPENCER: To Restructure Supply Pacts to Save GBP100 Mln MARTINE FREIGHT: In Administrative Receivership NEXUS IT: Calls in Liquidator NOTTINGHAM FOREST: Deadline to Pay Debt Set Today PARK GROUP: Closes Sale of Non-core Design and Packing Business SBF AGRICO: Management Saves Firm from Receivership SKYEPHARMA PLC: To Offer New Convertible Bonds SUPERTEAM LIMITED: Appoints Vantis Business Recovery Liquidator SWIFTMODE LIMITED: Names Receivers from KPMG TM EUROPE: Sets Creditors Meeting July 9 UMC INDUSTRIES: Hires Liquidator from Benedict Mackenzie WATERJET PROFILES: Cutting Service Business for Sale WILSON PUBLICATIONS: Unsecured Creditors Meeting Set July 14 ********* ============= F I N L A N D ============= METSO CORPORATION: Closes EUR283 Mln Sale of Dynapac to Altor ------------------------------------------------------------- Following the approval of the necessary competition authorities, Metso Corporation has completed the divestment of its compaction and paving equipment group, Dynapac, to the Nordic private equity investor Altor. The purchase price was paid and Dynapac was transferred to the buyer on June 30, 2004. The debt-free divestment value is estimated to be EUR283 million. Metso and Altor reached an agreement of the sale in April 2004. The divestment has a significant positive effect on Metso's gearing, which will decrease approximately 27 percentage points. Following the divestiture, the value of goodwill and other intangible assets on Metso's balance sheet will decrease by approximately EUR130 million. The divestment of Dynapac is a part of Metso's strategy to focus on serving pulp and paper industry, rock and minerals processing and process automation customers. Dynapac, which was a part of Metso Minerals, does not have customer-based synergies with other businesses within the business area. Metso Corporation is a global supplier of process industry machinery and systems, as well as know-how and aftermarket services. The Corporation's core businesses are fiber and paper technology (Metso Paper), rock and mineral processing (Metso Minerals) and automation and control technology (Metso Automation). In 2003, the net sales of Metso Corporation were EUR4.3 billion. Metso has approximately 26,000 employees in 50 countries. Metso Corporation is listed on the Helsinki and New York Stock Exchanges. CONTACT: METSO CORPORATION Jorma Eloranta President and CEO Phone: +358 204 84 3000 Eeva Makela Vice President, Investor Relations Phone: +358 204 84 3253 ============= G E R M A N Y ============= AGIV REAL: Seeking Amicable Settlement with ING BHF-Bank -------------------------------------------------------- AGIV Real Estate is seeking an out-of-court settlement on a lawsuit filed by a major shareholder in an attempt to free up cash that have been frozen as a result of the case. The company is in the middle of a legal battle with ING BHF- Bank, which holds a 13.2 stake in the company. On June 22, ING asked the court to freeze the firm's EUR17.4 million (US$21.2 million) fixed deposit in payment for a put option the company had entered with the bank and another major shareholder, EnBw Energie Baden-Wurttemberg. Under the put option, which AGIV subscribed into prior to merging with HBAG Real Estate, the parties agreed to sell their shares at EUR4.17 apiece. AGIV claims the merger rendered this option void in March 2003. While Energie let the matter rest, ING filed a complaint, claiming EUR20 million from AGIV. The suit sent AGIV's share to dive 50% within three days. "If AGIV has to pay up, there's little chance for the company to be saved," real estate expert Werner Rohmert, a board member at Research Medien, told F.A.Z. Weekly. The company, in explaining the amicable settlement, said it could not wait for the outcome of the lawsuit as it badly needs cash now. Besides, it cannot afford a long legal battle without cash, it added. Spokesman Jorg Bretschneider said the company hopes to reach a settlement before the end of July. AGIV currently faces a EUR40 million demand from Frankfurt real- estate developer Wayss & Freytag, which claims the amount represents rental guarantees AGIV had allegedly failed to fulfill. No less than Chairman Rainer Behne gave the clearest sign of trouble when he said early this month that the company urgently needs between EUR15 million and EUR20 million to overcome a liquidity crisis. The company, which has EUR2 billion in invested assets, had consolidated net loss of more than EUR134 million in 2002. It narrowed net losses to EUR7.8 million for the first three quarters of 2003, but the public is warned to exercise caution in judging the outlook of the company as AGIV has not published an annual report, and its auditor has yet to certify its accounts. CONTACT: AGIV REAL ESTATE AG Warburgstrabe 50 D-20354 Hamburg, Germany Phone: +49-40 4 15 26-0 Fax: +49-40 4 15 26-199 Home Page: http://www.agiv.de BLUE PIER: Framfab Germany Takes over Biz; Saves 14 Jobs -------------------------------------------------------- Receivers of Blue Pier last week signed an agreement for the takeover of the Internet services company by Framfab Germany, Europe Intelligence Wire reports. Framfab's parent company, Swedish Internet consulting company Framfab AB, confirmed the deal Thursday. The transaction will save the jobs of around 14 employees. "In addition to providing continuity of employment for former Blue Pier colleagues, the deal will enable a number of former Blue Pier clients, including Postbank and Audi, to continue to be served out of Hamburg by Framfab Germany," said Framfab AB. CONTACT: BLUE PIER GMBH Neumann Reichardt Str. 27-33 22041 Hamburg, Germany E-mail: info@bluepier.de Phone: 040/657 33 0 Fax: 040/657 33 888 BOUVIER: Douglas to Acquire Book Retailer ----------------------------------------- German retail group Douglas Holding is planning to buy insolvent German book retail chain Bouvier to expand its own book retail activities. It has asked Germany's anti-trust authority to approve the transaction, Borsen Zeitung reports. Bouvier also operates bookshops under the name Gonski. It has eight branches and showed turnover of EUR55 million in 2002. It applied for insolvency a year ago. Douglas owns book retail Thalia with 106 branches. EM.TV AG: Pursues EUR130 Mln Claim Against Former Board Members --------------------------------------------------------------- In compliance with their legal obligations and the commitment made to the shareholders' meeting of its legal predecessor, EM.TV & Merchandising AG, the supervisory and management boards of EM-TV AG, assisted by external advisors, have been reviewing potential misconduct of former board members of EM.TV & Merchandising AG. Based on the recommendation of a reputable law firm, both boards have now decided to pursue damage claims in the total amount of approximately EUR130 million out of and, if necessary, in court. The claims are based on misconduct in connection with the acquisition of a stake in the Formula 1 business in the year 2000 and are directed against the former management board members of EM.TV & Merchandising AG Thomas and Florian Haffa, Dr. Ulrich Goebel and Hans-Peter Vriens as well as against the former supervisory board members of the company Dr. Nickolaus Becker, Prof. Dr. Axel Kollar und Prof. Dr. Mathias Schwarz. These board members are included in a D+O insurance providing for a coverage of DM200 million (EUR102.26 million). Up to a maximum amount of EUR50 million, one-third of any damages recovered from former board members must be transferred to companies of the Deutsche Morgan Grenfell group as a result of a settlement reached in March 2003 to end an action brought earlier against EM.TV & Merchandising AG. Further cases of potential board member liability are still under review. 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 GROHE AG: Peter Korfer-Schun to Leave Board Next Month ------------------------------------------------------ The Chief Executive Officer of GROHE, Peter Korfer-Schun, announced he will be leaving the company on August 31. The 59- year-old, who has been a member of the board for 13 years, wishes to hand over responsibility to the next manager generation. "The Grohe group is in excellent condition and I am handing over a company ideally set up for the future. Now is the right time to call upon a young successor who can implement the strategy of the new owners in the mid and long-term. My personal plans are not compatible with this task," says Mr. Korfer-Schun who will turn 60 in spring of 2005. On May 28, a syndicate headed by Texas Pacific Group and Credit Suisse First Boston had taken over the company shares from the BC Partners funds. Peter Korfer-Schun shaped an extraordinary successful period in Grohe company history. The "Water Technology" business system was created under his responsibility in the 90s. It established Grohe as a world brand. Turnover in the year 1993 rose from 451 million annually to EUR885 million in 2003. In the meantime about 76% of the turnover is being made abroad. All over the world the Grohe brand is seen as a symbol of quality and design. The new owners Texas Pacific Group and Credit Suisse First Boston Private Equity regretted Peter Korfer-Schun's decision; however, they expressed their understanding and respect for his arguments and hope that he will be cooperating closely with the supervisory board. "Peter Korfer-Schun is an exceptional entrepreneur and personality. The company and its associates are greatly indebted to him. He has turned Grohe into a real Global Player," says Stephen Peel, Partner of the Texas Pacific Group. "We have great respect for Mr. Korfer-Schun and expect him to provide us with his active advice and support in the supervisory board in the future, too," adds Colin Taylor, managing director of Credit Suisse First Boston Private Equity. MOLOGEN AG: Deal with Arabian Partners Delayed ---------------------------------------------- MOLOGEN is still in the process of negotiating with its Arabian business partners, concerning orders to establish three centers for cell-and-gene therapy in Arabian countries. MOLOGEN had announced at their annual shareholder meeting that the corresponding contracts were due to be signed by mid-June, according to a preliminary contract. The signature of these contracts is now delayed. Reasons for the delay are due to the complex and innovative structure of the project. The business partners, who will be operating the centers asked for additional time, in order to assure a more efficient financing and locally supported implementation of the project. If advance registration of certain procedures with public authorities in the respective countries is necessary, signature of contracts may be delayed by up to three month and the contractual timelines and regulatory requirements have to be adjusted accordingly. CEO Prof Wittig said: "The MOLOGEN management views this project as a major milestone for the success of the company. The centers for cell- and gene therapy could establish the first commercially and biomedically viable strategy to bring cell- based therapeutic vaccines against cancer to the market and to patients. The strategy is optimally adapted to the needs of small, technology driven countries with high income. Resident tumor physicians will be trained at the centers, to compose their respective most innovative cell-based anti-cancer treatments, and to apply it to their patients. All parties involved clearly have underestimated the complexity of this innovative project in terms of business and legal requirements. Given the utmost importance of this project, we have accepted the request of our partners, to delay the timetable already agreed on in the preliminary contract." About MOLOGEN MOLOGEN focuses on its proprietary DNA technologies to create and develop treatments for high-unmet-need illnesses. The main focus is the unique and patented MIDGE and dSLIM technologies. Based on these platforms, MOLOGEN is developing DNA-based vaccines and therapeutics to prevent or cure a wide range of diseases. For its cell-based cancer therapies, MOLOGEN applies gene- modified and immunomodulated tumor cells having their origin in tumors from patients. Tumor cells were subsequently cultivated and established as cell lines. MIDGE DNA constructs and the also DNA-based molecules are then used to modify these cell lines in culture (ex-vivo). Thereby, therapeutic vaccines are produced for the treatment of metastatic states of various cancers. Going public in 1998, MOLOGEN was one of the first German biotechnology companies to be floated on the stock exchange. The MOLOGEN shares are traded on the Geregelter Markt in Frankfurt. CONTACT: MOLOGEN AG Matthias Reichel Phone: +49 - 30 - 84 17 88-0 Fax: +49 - 30 - 84 17 88-50 E-mail: investor@mologen.com Web site: http://www.mologen.com WESTLB AG: Unloading U.S. Aircraft-leasing Business --------------------------------------------------- German bank WestLB AG will put its Seattle-based aircraft- leasing business, Boullioun Aviation Services, for sale, the Financial Times reports. It is understood to have appointed Citigroup as adviser for a full or partial sale of the business valued at between US$300 million and US$400 million. An information memorandum on the disposal will be sent next week. WestLB acquired Boullioun from Deutsche Bank for US$1.2 billion four years ago. Boullioun was able to own and manage a fleet of 126 aircraft valued at US$2.8 billion as of last January under the bank. It currently shares Singapore Aircraft Leasing Enterprise with Singapore Airlines. The interest may be sold separately. WestLB is restructuring non-core assets after being forced to make significant write downs in 2003. BaFin, the German banking regulator, ordered it to take a EUR416 million charge for Boullioun because of a drop in aircraft values. WestLB has accrued losses totaling EUR4 billion (US$4.9 billion) in 2002 and 2003. It is thought to be keen to close the sale by year's end to avoid having Boullioun on its balance sheet. Expected buyers for the U.S. business are debis AirFinance, a larger rival; and RBS Aviation Capital, the leasing arm of Royal Bank of Scotland, and Aviation Capital Group. WESTLB AG: 'D' Individual Rating Removed from Watch Negative ------------------------------------------------------------ Fitch Ratings affirmed Germany's WestLB AG's Individual rating at 'D' and removed it from Rating Watch Negative. At the same time, the ratings on WestLB AG's guaranteed obligations are affirmed at Long-term 'AAA' and Short-term 'F1+'. The Support rating of '1' is also affirmed. The Long-term, Short-term and Support ratings are based on the strength of the support mechanisms provided by its ultimate owners in the form of Anstaltslast and Gewaehrtraegerhaftung (A and G). The lifting of the Watch Negative follows an agreement by two of the bank's owners to inject new capital amounting to EUR1.5 billion into the bank, boosting its Tier 1 capital/weighted risks ratio to a more acceptable 7.3%. WestLB AG's Individual Rating had been placed on Rating Watch Negative in February 2004, following the bank's announcement that it had made a significant net loss for the second consecutive year in 2003. This was due to sizeable loan loss provisions and write-downs on its substantial equity portfolio. At the time, Fitch considered that WestLB AG would need a significant capital injection to remain a viable operation in the medium term. On 29 June 2004 the two regional savings bank associations of North-Rhine Westphalia each agreed to inject EUR750 million of new capital into WestLB AG. This will raise both their existing stakes to 30.6%, which they will hold directly. The balance of shares will be held by NRW.BANK, which is majority-owned by the State of North-Rhine Westphalia; the state is thus maintaining a 25.1% indirect stake in WestLB AG. As a result of its financial difficulties over the past two years, new management has been brought into WestLB AG and, after a thorough cleaning-up process, the group's balance sheet appears to be in much better shape. Previous high-risk concentrations are being wound down, and a successful cost cutting and reduction in loan loss provisions should enable the bank to return to modest profit in 2004. The group's longer- term future will depend on the success of management's new strategic plan to develop WestLB AG's role as a strong central institution for North-Rhine Westphalia's savings banks and as a profitable European commercial bank. CONTACT: FITCH RATINGS Alison Le Bras London Phone: +44 207 417 4222 Olivia Perney Guillot Paris Phone: +33 1 44 29 91 80 Media Relations: Alex Clelland London Phone: +44 20 7862 4084 ============= H U N G A R Y ============= NABI RT: Chief Executive Patrick Rona Leaves -------------------------------------------- Andras Racz, President and CEO, NABI Bus Industries Rt. (BSE: NABI) and Chairman of NABI, Inc. announces the departure of Patrick Rona as President, CEO and Board member of NABI, Inc. The decision takes effect on the 1st of July 2004. Patrick Rona had been employed at NABI Inc. as CEO since 2002. Andras Racz also announces the appointment of J. Daniel Garrett to Interim President and CEO of NABI, Inc., also effective immediately. Mr. Garrett presently serves as the Executive Vice-President and CFO for NABI, Inc. and the Group CFO for the NABI Group. CONTACT: NABI RT Andras Bodor Corporate Affairs Director Phone: +36-1-401-7100 Fax: +36-1-407-2931 E-mail: andras.bodor@nabi.hu ============= I R E L A N D ============= COGNIZANT TECHNOLOGY: U.S. Firm to Shut down Limerick Facility -------------------------------------------------------------- Cognizant Technology Solutions will close down its two-year-old operation in Limerick next year with the loss of 50 jobs, according to the Bizworld. The software development company said the Euro's value had risen by 35% against the dollar causing a substantial increase in purchasing raw materials in Limerick. The company's operations will be transferred to North America and India. Cognizant promised to provide severance packages and placement services to employees. ========= I T A L Y ========= ALITALIA SPA: Giancarlo Cimoli Named New Chief Executive -------------------------------------------------------- At a meeting Thursday of the Alitalia Board of Directors, Chairman Giancarlo Cimoli was formally appointed Chief Executive Officer for the period 2004-2006. As agreed at a previous meeting on May 6, 2004, full executive powers of representation were conferred on the Chairman-CEO, under the Board's responsibility according to the Company Statute and the provisions of the Civil Code, article 2381. The Board also appointed Mr. Cimoli as Accountable Manager. The Board was then updated on the Company's current financial situation which, at the end of June 2004, showed cash on hand of approximately 150 million euros, confirming the need to set up the bridging loan by the end of September. As already announced, the decree for the loan guarantee was approved by the Council of Ministers on June 22, 2004. PARMALAT U.S.A.: Debtors Retains Keen Realty as Consultant ---------------------------------------------------------- The Parmalat U.S. Debtors want Keen Realty, LLC to provide real property marketing consulting and valuation services. The Debtors ask the Court to approve Keen's retention by their lawyers at McDermott Will & Emery, LLP. Keen Realty offers a broad range of services, which include valuing, marketing and disposing of excess real property and leases as well as negotiating lease modification, rental reductions, and lease terminations. In its 20 years of experience working with retailers to restructure their real property and lease portfolios, Keen Realty performed services for clients, which have involved over 180 million square feet of retail space and, in the past four years alone, performed services involving over US$700 million in transactions. Keen Realty also served as real property brokers and special real property consultants in many complex bankruptcy cases and, in particular, performed services for debtors in cases like The Warnaco Group, Inc. Graham--Field Health Products, Inc. Unidigital, Inc. and Spiegel, Inc. The Debtors and McDermott believe that Keen Realty is well qualified to act as marketing and valuation consultant in their Chapter 11 cases. The Debtors believe that Keen Realty will help facilitate the negotiation of a plan of reorganization, maximize the value of their Chapter 11 estate, and comply with the terms of the Final DIP Order. Real Estate Retention Agreement Pursuant to the terms of a real estate retention agreement, Keen Realty will undertake its real property valuation services in conjunction with CB Richard Ellis. The final value conclusion will be consensually agreed on by Keen Realty and CB Richard. All valuation reports will be signed by CB Richard Ellis. Keen Realty will also undertake equipment appraisals for all machinery and equipment in conjunction with SB Capital Group, LLC and Rabin Worldwide. The final machinery and equipment value conclusion will be consensually agreed on by Keen Realty, SB Capital, and Rabin Worldwide. Marketing Services and Related Fees As marketing consultant, Keen Realty will: (1) Review all pertinent documents and consult with the Debtors' counsel; (2) Communicate with prospective users, tenants, brokers, investors, etc., including the location of additional parties who may have an interest in the purchase of the Property; (3) Respond and provide information to negotiate with, solicit offers from prospective purchasers, and make recommendations to the Debtors as to the advisability of accepting particular offers; (4) Meet periodically with the Debtors and their professional advisors in connection with the status of their reorganization efforts; (5) Work with the attorneys responsible for the implementation of the proposed transaction, review documents, negotiate and assist in resolving problems that may arise; and (6) Appear in Court to testify or consult with the Debtors in connection with the marketing or disposition of a Property. When the U.S. Debtors sell, lease or otherwise transfer title to the Property, whether individually, or as a part of (i) a package, (ii) the disposition of their business, or (iii) a plan of reorganization, Keen Realty will earn: (a) 7% of the first US$1,000,000 of the Gross Proceeds from the transaction pertaining to the Property; and (b) 4% of the Gross Proceeds from the transaction pertaining to the Property in excess of US$1,000,000. With respect to all fees that are due and owing to Keen Realty, the U.S. Debtors will pay the fees in full, off the top, from the sale proceeds or otherwise, simultaneously with the closing, sale, or other consummation of the proposed transaction. If a buyer is properly represented by a third party broker, the compensation will increase by 3% of the Gross Proceeds for the broker's fees. Valuation Services and Related Fees Keen Realty will be retained by McDermott. A real estate appraisal will be conducted on each of a fair market value basis and a forced liquidation value basis. The fair market value will be appraised assuming a sale for an alternative use, as is, without restoration, and after removal of all the fixtures. The machinery and equipment appraisals will provide conclusions of value under each of these standards: (a) Orderly Liquidation Value (OLV) An estimated gross amount expressed in terms of currency in U.S. Dollars, which the subject personal property could typically realize at a privately negotiated sale, properly advertised and professionally managed, by a seller obligated to sell over a specified period of time, as of the effective date of the Appraisal Report. The ability of the asset group to draw sufficient prospective buyers to ensure competitive offers are considered. All of the assets are to be sold individually or through appropriate groupings, on an "as-is", "where-is" basis, with the purchaser responsible for the removal of the assets at their own risk and expense. Any deletions or additions to the assets appraised could change the psychological and monetary appeal necessary to attain the value expected. (b) Fair Market Value - In Place (FMVP) FMVP is defined as the amount that may reasonably be expected from the sale of assets, in-place, between a willing buyer and a willing seller, with equity to both, neither of whom are under any compulsion to buy or sell, and both fully aware of all relevant facts. This value assumes that the buyer will be using the equipment in its existing location for the same type of product with little or no modification to the facility. Appraisal Schedules Given that the U.S. Debtors provide the necessary information and payment, Keen Realty will present verbal and written appraisal reports to McDermott on these schedules: (i) For the real estate Appraisal of the Grand Rapids, Michigan facility, Keen Realty provided a verbal report on June 17, 2004 and a written report on June 24, 2004; (ii) For the real estate Appraisal of the Wallington, New Jersey, and Brooklyn, New York facilities, Keen Realty will provide a verbal report on June 24, 2004 and a written report on June 30, 2004; and (iii) For the Machinery and Equipment Appraisals, Keen Realty provided a verbal report on June 17, 2004 and a written report on June 23, 2004. Compensation The U.S. Debtors will compensate Keen Realty for its services to McDermott: (a) For the real estate Appraisal of the Grand Rapids, Michigan facility, the Debtors will pay US$12,000; (b) For the real estate Appraisal of the Wallington, New Jersey and Brooklyn, New York facilities, the Debtors will pay US$20,000; (c) For the Machinery and Equipment Appraisals, the Debtors will pay US$25,000; (d) Keen Realty will make arrangements with CB Richard Ellis, SB Capital Group, and Rabin Worldwide with regard to the sharing fees on the appraisals. However, the Debtors will not pay Keen Realty, CB Richard Ellis and SB Capital Group, more than US$57,000, plus expenses for the Appraisals and the Machinery and Equipment Appraisals, plus, if necessary, expert witness fees. Expert Witness and Related Consulting Fees At no extra charge, Keen Realty will also provide to the Debtors and McDermott assistance in: (1) Seeking and obtaining Bankruptcy Court approval of the Retention Agreement including related testimony and Court time; and (2) Responding to requests for information and in preparing for and testifying with respect to any hearing of one day or less seeking Court approval of a Property disposition transaction. The U.S. Debtors will pay Keen Realty on an hourly basis for its time, including travel time, in connection with providing any real estate consulting services, pre-hearing service, litigation support, and time spent as a witness in connection with any contested matter. The firm's hourly rates are: Position Rate -------- ---- President and Chairman US$500 Executive Vice President 425 Vice President and Director 350 Associate and Analyst 200 Administrative Support and Researcher 125 Expenses and Disbursements The U.S. Debtors will approve each expense item in excess of US$500 prior to the expenditure relating to Keen Realty's obligations. Disinterestedness Harold Bordwin, a principal at Keen Realty, assures the Court that the firm: (1) Is a "disinterested person" as that term is defined in Section 101(14) of the Bankruptcy Code; and (2) Does not hold or represent any interest adverse to the Debtors or their estates. Headquartered in Wallington, New Jersey, Parmalat USA Corporation -- http://www.parmalatusa.com/-- generates more than EUR7 billion in annual revenue. The Parmalat Group's 40- some brand product line includes milk, yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. It employs over 36,000 workers in 139 plants located in 31 countries on six continents. The Company filed for Chapter 11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq. and Marcia L. Goldstein, Esq., of Weil Gotshal & Manges LLP, represent the Debtors in their restructuring efforts. On June 30, 2003, the Debtors listed EUR2,001,818,912 in assets and EUR1,061,786,417 in debts. (Parmalat Bankruptcy News, Issue No. 22; Bankruptcy Creditors' Service, Inc., 215/945-7000) =================== K Y R G Y Z S T A N =================== EKSPRESS: Sets Creditors Meeting July 20 ---------------------------------------- The Department of the Bankruptcy Issues under the State Committee of the Kyrgyz Republic commenced bankruptcy supervision procedure on LLC Ekspress on June 16, 2004. Mr. Sainidin Sekishov (License No. 0230) has been appointed temporary insolvency manager. Creditors will have a general meeting on July 20, 2004 at 10:00 a.m. It will be held at Bishkek, Moskovskaya Str. 41a, Apart. 8. Creditors who want to be represented at the meeting may appoint proxies, who must bear authorization to vote. CONTACT: Mr. Sainidin Sekishov Temporary Insolvency Manager Phone: (0-312) 28-51-35 Or (0-502) 50-36-85 KURULUSH BANK: Sets Public Auction of Assets July 8 --------------------------------------------------- The bidding organizer and insolvency manager of joint-stock commercial bank Kurulush Bank set the public auction of the firm's properties on July 8, 2004, 10:00 a.m. (local time). It will be held at Kyrgyzstan, Bishkek, Manasa Str. 28. Up for sale are five lots of furniture and bank equipment. The list of documentary requirements for participants is available at Kyrgyzstan, Bishkek, Manasa Str. 28. For more details, call (0-312) 21-16-34, 21-97-43. MENTOR: Creditors Meeting Today ------------------------------- The Bishkek Inter-District Court on Economic Issues commenced bankruptcy supervision procedure on LLC Mentor on April 15, 2004. The case is docketed as 03-96/M-04c9. Mr. Jamalbek Ibraimov (License No. 0298) has been appointed temporary insolvency manager. Creditors will have a general meeting today at 1:00 p.m. It will be held at Bishkek, Erkindik Ave. 57, Room 101. Those who wish to attend the meeting must register and submit their proofs of claim to the insolvency manager. Proxies must have authorization to vote. CONTACT: Mr. Jamalbek Ibraimov Temporary Insolvency Manager Phone: (0-312) 62-68-29 OIL-GAS COMPANY: Public Auction of Assets Tomorrow -------------------------------------------------- The bidding organizer and insolvency manager of joint enterprise Oil-Gas Company will auction the firm's properties tomorrow, 10:00 a.m. (local time). It will be held at Kyrgyzstan, Bishkek, Moskovskaya Str. 41a, Apartment 8. Up for sale are five lots of cars, equipment and cabinets. Preliminary examination and reception of bids are done until 12:00 noon today. The list of documentary requirements for participants is available at Bishkek, Moskovskaya Str. 41a, Apartment 8. To participate, bidders must deposit an amount equivalent to 10% of the starting price to the cashier of Oil- Gas Company. For more details, call (0-502) 50-36-85. SARY-KOO: To Auction 41 Lots of Farms, Implements July 11 --------------------------------------------------------- The bidding organizer and insolvency manager of agricultural farm Sary-Koo set the public auction of the firm's properties on July 11, 2004, 11:00 a.m. (local time). It will be held at Kyrgyzstan, Chui region, Jaiyl District, Altyn. Up for sale are 41 lots of farms and houses with cars and equipment. Preliminary examination and reception of bids are done every Tuesday and Wednesday from 10:00 a.m. to 5:00 p.m. until July 10, 2004. The list of documentary requirements for participants is available at Jaiyl district, Altyn. To participate, bidders must deposit an amount equivalent to 10% of the starting price to the cashier of Sary-Koo farm. For more details, call (0-502) 57-90-17, 39-33-78, (0-517) 73-66-64. SREDAZSTALKONSTRUKSIA: Public Auction Set July 9 ------------------------------------------------ The bidding organizer and insolvency manager of JSC Sredazstalkonstruksia set the public auction of the firm's properties on July 9, 2004, 11:00 a.m. (local time). It will be held at Kyrgyzstan, Bishkek, Vostochnaya Promzona. Up for sale is a car building. Preliminary examination and reception of bids are done daily until 11:00 a.m. on or before July 8, 2004. The list of documentary requirements for participants is available at Bishkek, Vostochnaya Promzona, building of JSC Sredazstalkonstruksia. To participate, bidders must deposit an amount equivalent to 10% of the starting price to the insolvency manager. For more details, call (0-312) 23-78-55, 23-73-52. VOST: Sets Public Auction July 16 --------------------------------- The bidding organizer and insolvency manager of joint enterprise LLC Vost set the public auction of the firm's properties on July 16, 2004, 11:00 a.m. (local time). It will be held at Kyrgyzstan, Sokuluk district, Voenno-Antonovka, Komsomolskaya Str. 1a. Up for sale is an inventory holding. Preliminary examination and reception of bids are done daily from 9:00 a.m. to 2:00 p.m. (except on weekends). The list of documentary requirements for participants is available at Sokuluk district, Voenno-Antonovka, Komsomolskaya Str. 1a. To participate, bidders must deposit an amount equivalent to 10% of the starting price to the cashier of LLC Vost. For more details, call (0-517) 78-23-90. ===================== N E T H E R L A N D S ===================== ROYAL SHELL: Announces Portfolio Actions and Write downs ------------------------------------------------------- Companies of the Royal Dutch/Shell Group of Companies on Thursday announced portfolio actions in the United States and Peru and a charge to earnings for certain exploration assets. Shell's Exploration and Production business will take a charge to earnings of about US$330 million after tax in the second quarter on various exploration assets after drilling several unsuccessful exploration wells and completing extensive geological studies. The assets were acquired with Enterprise Oil plc in 2002. Shell's proved reserves are unaffected by this charge. Shell Oil Products U.S. announced the sale of Midwest refined product pipeline system and storage assets in the United States for US$530 million. This follows the sale last week of Texas and Great Plains product pipeline and storage assets in the United States for US$492 million. In Peru, Shell Peru S.A. announced the proposed sale of the Peruvian retail, commercial and marine businesses. These sales are expected to be completed later this year. The proposed Peruvian divestments follow the divestment of Oil Products businesses in Portugal (excluding LPG and Lubricants marketing businesses), and proposed divestment of Oil Products businesses in Spain (excluding LPG, Lubricants, Aviation and Marine businesses). The combined financial effect of these announcements is expected to be broadly neutral in terms of their combined contribution to net income for the year, although only the exploration assets charge will be taken in the second quarter. To date in 2004, divestment proceeds from confirmed and disclosed sales (excluding proposed sales) exceed US$3.5 billion, of which US$1.7 billion of divestment proceeds was realized in the first quarter. Included in the US$3.5 billion are, among others, the Delaware City refinery (partly reflected in the first quarter results but subject to conditions and working capital settlement), the Angolan upstream assets, and the Midwest, Texas and Great Plains product pipelines. Shell's Exploration and Production business also announced this week that Final Investment Decision has been taken on the Pohokura field in New Zealand. Upstream Issues Shell's Exploration and Production business announced that after several unsuccessful exploration wells and essential extensive geological studies completed in Q2 it is to take a charge to earnings of around US$330 million after tax relating to the book value of certain exploration assets acquired in the takeover of Enterprise Oil plc by Shell. The charge follows drilling and detailed geological and seismic studies including, among others, wells drilled in the U.K. sector of the North Sea in late 2003, the Cong prospect offshore Ireland in December 2003 and the Beluga wildcat well in the Norwegian sector of the North Sea in May 2004. Around US$35 million of the charge (after tax) relates to exploration costs incurred by Shell post the acquisition; the remaining amount relates to the allocation of the original purchase price to exploration assets. These assets were acquired in the takeover of Enterprise Oil plc by Shell. Shell has already delivered synergies from the Enterprise acquisition of $355 million at the end of 2003 against an original expectation of US$300 million. In just over two years since the acquisition, the Enterprise assets have contributed around US$3 billion to Shell's cash from operations. In this period, Shell has benefited from production from bringing on stream new Enterprise projects in Brazil and the Gulf of Mexico, and has seen progress on important development projects in the North Sea, Italy and Ireland. In addition, the Tahiti prospect in the Gulf of Mexico has been successfully explored and appraised. Divestment of Midwest refined product pipeline system and storage assets Shell Oil Products U.S. announced it has signed a Purchase and Sale Agreement with Buckeye Partners, LP for the sale of pipeline and storage assets located in Illinois, Indiana, Ohio, Michigan and Wisconsin. The ownership of these pipeline and terminal systems is no longer of strategic interest to Shell Oil Products U.S., and greater shareholder value can be generated by selling them to a more natural owner such as Buckeye Partners, LP. Major assets included in the sale consist of the East Line Pipeline, North Line Pipeline, St. Louis ATF Pipeline, St. Louis 6-inch Pipeline and the 2Rivers Pipeline. These pipeline assets, along with associated distribution terminal assets, form an integrated system that carries refined products from primarily U.S. mid-continent refineries to points throughout the Midwest region. Major markets include Chicago, St. Louis, Cleveland, Indianapolis and Cincinnati. The transaction is expected to close in the third quarter of 2004 after completion of due diligence and appropriate regulatory review. Proposed Divestment of Some Oil Products Assets in Peru In Peru, Shell Peru S.A. is offering for sale, as a continuing business, its service station network and industrial and marine fuels businesses, which have been in operation since 1994. Shell will retain its lubricants business in Peru, where plans include generating growth through the integration of the acquired Pennzoil-Quaker State business. The proposed transaction is consistent with Shell's strategy to increase the profitability of the downstream assets through greater focus in key countries. Final Investment Decision on Pohokura Gas Field Shell New Zealand has announced the green light for the development of the Pohokura gas field, approving final investment decision. Shell New Zealand anticipates that the first gas will flow from Pohokura in mid 2006. Shell owns 48% of the shares in the Pohokura field. OMV New Zealand and Todd Pohokura Ltd each own 26%. The Pohokura field is being developed on behalf of the Joint Venture by Shell Todd Oil Services. The Pohokura field was discovered in early 2000, and Shell acquired the majority of its interest in the field in the acquisition of Fletcher Energy in the same year. CONTACT: ROYAL SHELL Investor Relations: David Lawrence Phone: +44 20 7934 3855 Gerard Paulides Phone: +44 20 7934 6287 Bart van der Steenstraten Phone: +31 70 377 3996 Harold Hatchett Phone: +1 212 218 3112 Media Relations: Stuart Bruseth Phone: +44 20 7934 6238 Andy Corrigan Phone: +44 20 7934 5963 Simon Buerk Phone: +44 20 7934 3453 Matt Samuel Phone: +44 20 7934 3277 Herman Kievits Phone: +31 70 377 8750 =========== R U S S I A =========== AGRO-PROM-TRANS: Declared Bankrupt ---------------------------------- The Arbitration Court of Ch autonomous region declared Agro- Prom-Trans insolvent and introduced bankruptcy proceedings. The case is docketed as A80-14/2003-B. Mr. O. Syskov has been appointed insolvency manager. Creditors have until August 10, 2004 to submit their proofs of claim to 689000, Russia, Anadyr, Post User Box 284. CONTACT: AGRO-PROM-TRANS 689000, Russia, Pevek, Solnechnaya Str. 1A Mr. O. Syskov Insolvency Manager 689000, Russia, Anadyr, Post User Box 284 BREAD PRODUCTS: Public Auction Set July 15 ------------------------------------------ The insolvency manager of OJSC Combine of Bread Products' set the public auction of the firm's properties on July 15, 2004, 12:00 noon. It will be held at Russia, Lipetsk, Kommunalnaya pl. 9, Assembly hall. Up for sale is a real estate property. Starting price: RUB12,000,000. Preliminary examination and reception of bids are done daily from 9:00 a.m. to 1:00 p.m. on or before July 11, 2004. The list of documentary requirements for participants is available at Russia, Lipetsk, Kommunalnaya Str., 9, office 5 06. To participate, bidders must deposit an amount equivalent to 10% of the starting price to the settlement account 40702810900020000048 in OJSC Lipetsk Commercial Bank of Lipetsk, TIN4802001528, KPP 480201001, correspondent account 30101810800000000704, BIC 044206704 not later than 1:00 p.m., July 12, 2004. CONTACT: COMBINE OF BREAD PRODUCTS 399050, Russia, Lipetsk, Gryazi, Khlebozavodskaya Str. 7 Phone: (07461) 2-29-35 LIPETSKAYA REGIONAL PUBLIC ORGANIZATION THE ASSOCIATION OF ANTI CRISIS MANAGERS Russia, Lipetsk, Kommunalnaya Str. 9, Office 5 06 Phone: 74-37-18 DAL-KVARTS-SAMOTSVETY: Deadline for Proofs of Claim August 10 ------------------------------------------------------------- The Arbitration Court of Khabarovsk region declared GFUGPP Dal- Kvarts-Samotsvety insolvent and introduced bankruptcy proceedings. The case is docketed as A73-12778/2003-37. Mr. O. Syskov has been appointed insolvency manager. Creditors have until August 10, 2004 to submit their proofs of claim to 680000, Russia, Khabarovsk, Zaparina, 67-4. CONTACT: DAL-KVARTS-SAMOTSVETY 680000, Russia, Khabarovsk, Dzerzhinskogo Str. 28 Mr. O. Syskov Insolvency Manager 680000, Russia, Khabarovsk, Zaparina, 67-4 DALNEVOSTOCHNAYA GORNOSTROITELNAYA: Declared Insolvent ------------------------------------------------------ The Arbitration Court of Primorsky region declared OJSC Dalnevostochnaya Gornostroitelnaya Company insolvent and introduced bankruptcy proceedings. The case is docketed as A51- 16678/2003 21-304 b. Mr. Y. Rozov has been appointed insolvency manager. Creditors have until August 10, 2004 to submit their proofs of claim to 690950, Russia, Vladivostok, Irtyshskaya Str. 12. CONTACT: DALNEVOSTOCHNAYA GORNOSTROITELNAYA COMPANY 690950, Russia, Vladivostok, Irtyshskaya Str. 12 Mr. Y. Rozov Insolvency Manager 115114, Russia, Moscow, Derbenevskaya Str. 11 GLAV-FISH: Tyumen Court Appoints Insolvency Manager --------------------------------------------------- The Arbitration Court of Tyumen region declared CJSC Glav-Fish insolvent and introduced bankruptcy proceedings. The case is docketed as A70-2661/3-04. Mr. A. Filippov has been appointed insolvency manager. Creditors have until July 10, 2004 to submit their proofs of claim to the temporary insolvency manager at Russia, Tyumen, Samartseva Str. 34a-58. CONTACT: GLAV-FISH Russia, Tyumen, Molodezhnaya Str. 80 Mr. A. Filippov Insolvency Manager Russia, Tyumen, Samartseva Str. 34a-58 GORKY AUTOMOTIVE: Close to Restructuring EUR16 Million Debt ----------------------------------------------------------- Gorky Automotive Works, part of Ruspromavto, a major grouping of Russian auto companies, is in talks with the Nizhny Novgorod region regarding a restructuring of its debt. The obligations under negotiations are the company's euro-loan debt of US$10.84 million and a separate US$5.5 million loan, which the plant received from funds allocated to Nizhny Novgorod region by a syndicate of foreign banks in 1998. The regional Finance Ministry said the euro-loan includes US$5 million in principal debt, US$963,670 in interest and US$4.873 million in interest for past-due payments. Ruspromavto General Director Alexander Yushkevich said talks are almost complete. Earlier, Vadim Sobolev, the regional finance minister, said his agency is ready to write off some part of the plant's debt on interest payments, and that they would like to see GAZ's debt restructured before 2007. The Eurobonds -- worth $100 million at 8.75% annually with biannual coupon payments -- were issued in October 1997. They were used to extend sub-loans worth US$73.5 million for 21 investment projects. Those who availed of the loans are the Nizhny Novgorod administration, GAZ, Pavlovsky Avtobus, Oksaya Shipyard and the Nizhny Novgorod Aircraft Manufacturing Plant Sokol. The Nizhny Novgorod region already defaulted on a coupon payment of US$4.375 million. In October 1999 it reached an agreement with its creditors on restructuring the Eurobond in December 1999. MICHURINSKY FACTORY: Bankruptcy Proceedings Begin ------------------------------------------------- The Arbitration Court of Tambov region declared CJSC Michurinsky Factory of Pistol Wheels insolvent and introduced bankruptcy proceedings. The case is docketed as A64-1112/03-2. Mr. R. Akhmetov has been appointed insolvency manager. Creditors have until August 10, 2004 to submit their proofs of claim to 392015, Russia, Tambov-15, Post User Box 3. CONTACT: MICHURINSKY FACTORY OF PISTOL WHEELS Russia, Tambov, Michurinsk, Novaya Promploshadka Mr. R. Akhmetov Insolvency Manager 392015, Russia, Tambov-15, Post User Box 3 PLEMENNOY FACTORY: Deadline for Proofs of Claim August 10 --------------------------------------------------------- The Arbitration Court of Voronezh region declared federal state unitary enterprise Plemennoy Factory Kirovsky (TIN 3616006044, KPP 361601001) insolvent and introduced bankruptcy proceedings. The case is docketed as A14-10203-03/40/7b. Mr. Y. Pletyukhov has been appointed insolvency manager. Creditors have until August 10, 2004 to submit their proofs of claim to Russia, Voronezh, Novousmatovsky region, Novaya Usman, Lenina Str. 141. CONTACT: PLEMENNOY FACTORY KIROVSKY Russia, Voronezh, Novousmatovsky region, Novaya Usman, Lenina Str. 141 Mr. Y. Pletyukhov Insolvency Manager 394030, Russia, Voronezh, Plekhanovskaya Str. 22A SEL-MASH: Sets Public Auction July 14 ------------------------------------- The insolvency manager of Sel-Mash Plant set the public auction of the firm's properties on July 14, 2004, 10:00 a.m. It will be held at Russia, Kirov, K. Libknekhta Str. 69, Room 453. Up for sale are two apartments, 10 shops and buildings and a health center located at Russia, Kirov region, Kumyeny region, Shandary. Preliminary examination and reception of bids are done daily until 4:00 p.m. on or before July 9, 2004. The list of documentary requirements for participants is available at Russia, Kirov, K. Libknekhta, 69, Room 453. To participate, bidders must deposit an amount equivalent to 10% of the starting price. CONTACT: Kirov Regional Department of Russian Fund of Federal Property Russia, Kirov, K. Libknekhta, 69 Room 453 Phone/Fax: (833-2) 62-27-38 YUGO-VOSTOK-ELEKTRO-MONTAZH: Declared Insolvent ----------------------------------------------- The Arbitration Court of Voronezh region declared OJSC voronezhskoye montazhnoye management Yugo-Vostok-Elektro-Montazh insolvent and introduced bankruptcy proceedings. The case is docketed as A14-10203-03/40/7b. Mr. Y. Pletyukhov has been appointed insolvency manager. Creditors have until August 10, 2004 to submit their proofs of claim to 394071, Russia, Voronezh, Barkhatny Bugor, 25. CONTACT: YUGO-VOSTOK-ELEKTRO-MONTAZH Russia, Voronezh, Solnechnaya Str. 8 A Mr. Y. Pletyukhov Insolvency Manager: 394071, Russia, Voronezh, Barkhatny Bugor, 25 ========= S P A I N ========= IZAR: Union Assails Restructuring Plan; Threatens Strike -------------------------------------------------------- The meeting between the government and Spanish unions Tuesday did not result in assurances that jobs will be protected under the restructuring plan of state shipbuilder Izar, Europe Intelligence Wire reports. A spokesman for leading union UGT suggested a national protest 'could not be ruled out.' There have already been protests at some public shipyards. The European Commission has asked Izar to submit a restructuring plan for the company. Enrique Martinez Robles, president of state holding company Sepi, which owns Izar, told union leaders on Tuesday that a draft rescue program would be finished by July 17, in time for the deadline set by Brussels. The government might propose to seek a dual military and civilian role for yards currently focused exclusively on merchant work, unions say. A military contract for Izar, whose order book in this area is deemed strong, is hoped to save other struggling yards too, if work was shared. Authorities might also propose to find private investors for Izar. This goes contrary to what a UGT spokesman said that Brussels would not allow any further injection before an outstanding aid to Izar had been paid back. The Commission has ordered the company to repay some US$372.2 million that it said was illegal state aid. Labor representatives will meet the Commission to detail the consequences of this ruling July 5. =========== S W E D E N =========== LM ERICSSON: Amends Revolving US$1 Billion Credit Facility ---------------------------------------------------------- Telefonaktiebolaget LM Ericsson (NASDAQ: ERICY) has signed an amendment that improves the terms and conditions of its US$1 billion revolving credit facility. The amended facility, maturing in September 2007 and structured as a forward start agreement (FSA), will replace the existing facility of US$1 billion, which matures in September 2004. As stated in the annual report 2003, the existing facility was subject to certain financial covenants and availability tests, which Ericsson would need to comply with prior to any draw down and under certain circumstances, also required security to be offered as a condition to draw down. The amended facility does not have any requirement for security, nor an Availability Test. Further, the financial covenant structure has been simplified and the pricing of the facility has been adjusted to reflect current market conditions and the company's improved performance since the existing facility was signed in September 2003. All of the core relationship banks that participated in the existing facility, ABN AMRO, BNP Paribas, Citigroup Credit Agricole Indosuez, Deutsche Bank, Goldman Sachs Credit Partners, LP, HSBC, JPMorgan Morgan Stanley, Nordea, SEB Merchant Banking, Svenska Handelsbanken and Swedbank, also supported the amendment. The amendment was coordinated by ABN AMRO, Citigroup, Nordea and SEB Merchant Banking. Ericsson is shaping the future of Mobile and Broadband Internet communications through its continuous technology leadership. Providing innovative solutions in more than 140 countries, Ericsson is helping to create the most powerful communication companies in the world. Read more at http://www.ericsson.com/press * * * Standard & Poor's rates Ericsson 'BB/Negative/B'. CONTACT: LM ERICSSON Media: Kathy Egan Vice President Corporate Communications Phone: +1 212 685 4030 E-mail: pressrelations@ericsson.com Investors: Glenn Sapadin Manager Investor Relations Phone: +1 212 685 4030 E-mail: investor.relations@ericsson.com ============= U K R A I N E ============= DONETSK' KONTUR: Court Orders Moratorium on Creditors' Claims ------------------------------------------------------------- The Economic Court of Donetsk region commenced bankruptcy supervision procedure on LLC Donetsk' Production-Commercial Firm Kontur and ordered a moratorium on satisfaction of creditors' claims made after May 5, 2004. The case is docketed as 5/73B. Mrs. Perekrestova O. (License Number 249771) has been appointed temporary insolvency manager. Donetsk' Production-Commercial Firm Kontur holds account number 31116057836300 at Governing State Treasure, Donetsk regional branch, MFO 834016. CONTACT: DONETSK' PRODUCTION-COMERCIAL FIRM KONTUR 83014, Ukraine, Donetsk region, Livoberezhna str. 20 ECONOMIC COURT OF DONETSK REGION 83048, Ukraine, Donetsk region, Artema str. 157 ELEKTRON-GAZ: Public Auction of Assets Set July 12 -------------------------------------------------- Dnipropetrovsk regional authorities and the liquidator have set for public auction the properties of OJSC ELEKTRON-GAZ on July 12, 2004, 11:00 a.m. at Ukraine, Dnipropetrovsk region, Komsomolska str. 48, Room 2. The properties are being sold as one lot. The lot includes: (a) storehouse of loose and building materials, (b) storehouse of cable products and ready product, (c) gate-keeper's office, (d) consumer buildings, (e) asphalt platform, (f) pluming, (g) near-rail base, (h) external TV network, (i) external sewerage of near-rail base, (j) railway and equipment. Starting price: UAH187,484.61 inclusive of VAT. The properties are located at Ukraine, Dnipropetrovsk region, Zhovti Vodi, Gagarin str. 40. Requirements: (a) Absence of creditor' indebtedness to Elektron-Gaz, (b) Registration of transaction paid by buyer, (c) Redraft of right to use land areas adjoined to the buildings and constructions, (d) Monthly compensation to Elektron-Gaz for service fees of land areas adjoined to the buildings and constructions. To participate, bidders must deposit an amount equivalent to 5% of the value of the property being sold and pay a registration fee of UAH17 until July 7, 2004. The amount must be deposited to account number 26006351680200 at JSPPB Aval, Dnipropetrovsk branch, MFO 305653, EDRPOU 26252710. Participants must submit competitive propositions on or before July 7, 2004 from 9:00 a.m. until 6 p.m. to Ukraine, Dnipropetrovsk region, Komsomolska str., 48, room 3. For more information, call (056) 744-19-31 or (05652) 2-40-01. CONTACT: ELEKTRON-GAZ Ukraine, Mikolaiv region, Snigurivka, Lenin str. 135 KALUSKIJ BROVAR: Sets Public Auction of Assets July 14 ------------------------------------------------------ Ivano-Frankivsk regional authorities and the sanction manager have set for public auction the properties of OJSC Kaluskij Brovar on July 14, 2004, 10:30 a.m. at Ukraine, Ivano-Frankivsk, Vasiliyanok str. 48. The properties are being sold as one lot. The lot includes fixed assets, transport assets, and other assets with a total area of 3,370 square meters. Starting price: UAH2,150,000. The properties are located at Ukraine, Ivano-Frankivsk region, Kalush, Grushevskij str. 89A. To participate, bidders must deposit an amount equivalent to 10% of the value of the property being sold and pay a registration fee of UAH17 until July 12, 2004. The amount must be deposited to account number 260064425 at JSPPB Aval, Ivano-Frankivsk regional branch, MFO 336462, EDRPOU 26255708. Requirements: (a) Physical persons: document that certifies physical person (copy of passport's 1st and 2nd pages), document of payment of guarantee and registration installments and copy of identification number. (b) Juridical persons: notarized certificate of registration of business activity and certificate of VAT registration. Participants must submit competitive propositions on or before July 12, 2004 to Ukraine, Ivano-Frankivsk, Belvederska str. 2a, office 7. For more information, call (0342) 50-24-94. CONTACT: KALUSKIJ BROVAR Ukraine, Ivano-Frankivsk region, Kalush, Grushevskij str., 89A Auction center Ukraine, Ivano-Frankivsk region, Vasiliyanok str., 48 MEZHIVSKIJ MELKOMBINAT: Under Bankruptcy Supervision Procedure -------------------------------------------------------------- The Economic Court of Dnipropetrovsk region commenced bankruptcy supervision procedure on LLC Mezhivskij Melkombinat (code EDRPOU 30908293). The case is docketed as B 40/25/04. Mr. Shinkarenko O. (License Number AA 668293) has been appointed temporary insolvency manager. Mezhivskij Melkombinat holds account number 26008008480000 at JSICB UkrSibBank, Dnipropetrovsk branch, MFO 306856. CONTACT: MEZHIVSKIJ MELKOMBINAT 52900, Ukraine, Dnipropetrovsk region, Mezhivskij district, Bogdanivka, Centralna str. 1 Mr. Shinkarenko O. Temporary Insolvency Manager Ukraine, Dnipropetrovsk region, Pavlograd, a/b 127/24 Phone: (232) 20-08-88 ECONOMIC COURT OF DNIPROPETROVSK REGION 49600, Ukraine, Dnipropetrovsk region, Kujbishev str. 1a PSYOL: Bankruptcy Supervision Starts ------------------------------------ The Economic Court of Poltava region commenced bankruptcy supervision procedure on Agricultural LLC Psyol (code EDRPOU 03772602) on April 2, 2004 and ordered a moratorium on satisfaction of creditors' claims on March 24, 2004. The case is docketed as 10/87. Mr. Ribachenko M. (License Number AA 630014 approved on November 13, 2003) has been appointed temporary insolvency manager. Creditors have until July 15, 2004 to submit their proofs of claim to: (a) AGRICULTURAL PSYOL 37642, Ukraine, Poltava region, Mirgorod district, Savintsi (b) ECONOMIC COURT OF POLTAVA REGION 36000, Ukraine, Poltava region, Zigina str. 1 Agricultural Psyol holds account number 26003323807067 at CB Privatbank, Mirgorod branch, MFO 331401. CONTACT: AGRICULTURAL PSYOL 37642, Ukraine, Poltava region, Mirgorod district, Savintsi ECONOMIC COURT OF POLTAVA REGION 36000, Ukraine, Poltava region, Zigina str., 1 SAKI' AUTO: Deadline for Proofs of Claim Set July 15 ---------------------------------------------------- The Economic Court of AR Krym commenced bankruptcy supervision procedure on OJSC Saki' Auto Transport Enterprise Number 14338 (code EDRPOU 03114738). The case is docketed as 2-11/7698-2004. Mr. Vudud G. (License Number AA 249853 approved on October 22, 2001) has been appointed temporary insolvency manager. Creditors have until July 15, 2004 to submit their proofs of claim to: (a) SAKI' AUTO TRANSPORT ENTERPRISE NUMBER 14338 Ukraine, AR Krym region, Saki, Zavodska str. 97 (b) Temporary Insolvency Manager 95000, Ukraine, AR Krym region, Simferopol, a/b 2769 (c) THE ECONOMIC COURT OF AR KRYM REGION 98100, Ukraine, AR Krym region, Simferopol, Karl Marks str. 18 Saki' Auto Transport Enterprise Number 14338 holds account number 26009307747001 at CB Privatbank, MFO 384566. CONTACT: SAKI' AUTO TRANSPORT ENTERPRISE NUMBER 14338 Ukraine, AR Krym region, Saki, Zavodska str., 97 Mr. Vudud G. Temporary Insolvency Manager 95000, Ukraine, AR Krym region, Simferopol, a/b 2769 THE ECONOMIC COURT OF AR KRYM: 98100, Ukraine, AR Krym region, Simferopol, Karl Marks str., 18 SLAVONIC SODA: Sets Public Auction July 12 ------------------------------------------ Donetsk regional authorities and the sanction manager have set for public auction the properties of LLC Slavonic Industrial Union Soda on July 12, 2004, 10:00 a.m. at Ukraine, Donetsk region, Artema str. 27. The properties for sale are: (a) Buildings: repair-mechanical department building, consumer premise, calciunirate soda building, central plant laboratory, transport department consumer building, transformer substation and social organizations building. and electro technical equipment. (b) electro-technical equipment of the transformer substation. Starting price: UAH724,738.87 inclusive of VAT. The guarantee installment is UAH36,236.94. The properties are located at Ukraine, Donetsk region, Slovjyansk, Novosodivska platform 2. To participate, bidders must deposit an amount equivalent to 10% of the value of the property being sold and pay a registration fee of UAH17 until July 2, 2004. The amount must be deposited to account number 26006301660635 at Prominvestbank of Donetsk region, Putilivska branch, MFO 334914, EDRPOU 31178587. Participants must submit competitive propositions to the Branch of Agency of bankruptcy questions in Donetsk region on or before July 9, 2004 to Ukraine, Donetsk region, Komsomolskij Avenue 8. CONTACT: SLAVONIC INDUSTRIAL UNION SODA Ukraine, Donetsk region, Slovjyansk, Novosodivska platform 2 BRANCH OF AGENCY OF BANKRUPTCY QUESTIONS IN DONETSK REGION Ukraine, Donetsk region, Komsomolskij Avenue, 8 Phone: 304-77-83 304-37-21 Web site: http://www.bankruptcy.internet.dn.ua REGIONAL TRADE EXCHANGE Ukraine, Donetsk region, Artema str., 27 VLADIVSKA MACHINE: Court Begins Bankruptcy Supervision ------------------------------------------------------ The Economic Court of Zaporizhya region commenced bankruptcy supervision procedure on OJSC Vladivska Agricultural Machine- Technological Station (code EDRPOU 25678817). The case is docketed as 21/81. Arbitral manager Mrs. Aleksejeva Ludmila (License Number AA 668254 approved on September 15, 2003) has been appointed temporary insolvency manager. Creditors have until July 15, 2004 to submit their proofs of claim to: (a) VLADIVSKA AGRICULTURAL MACHINE-TECHNOLOGICAL STATION 71221, Ukraine, Zaporizhya region, Chernigivskij district, Vladivka, Zhlobintsev str. 18 (b) Temporary Insolvency Manager 70410, Ukraine, Zaporizhya region, Lukashevi, Shasliv str. 5 (c) ECONOMIC COURT OF ZAPORIZHYA REGION 69001, Ukraine, Zaporizhya, Shaumyana str. 4 Vladivska Agricultural Machine-Technological Station holds account number 26004832 at Aval, Berdyansk branch, MFO 313885. CONTACT: VLADIVSKA AGRICULTURAL MACHINE-TECHNOLOGICAL STATION 71221, Ukraine, Zaporizhya region, Chernigivskij district, Vladivka, Zhlobintsev str. 18 Mrs. Aleksejeva Ludmila Temporary Insolvency Manager 70410, Ukraine, Zaporizhya region, Lukashevi, Shasliv str. 5 ECONOMIC COURT OF ZAPORIZHYA REGION 69001, Ukraine, Zaporizhya region, Shaumyana str. 4 VYAZIVOK: Declared Insolvent ---------------------------- The Economic Court of Dnipropetrovsk region declared LLC Agricultural Firm Vyazivok (code EDRPOU 30355625) insolvent and introduced bankruptcy proceedings on May 13, 2004. The case is docketed as B15/126/03. Mr. Bezpalov V. has been appointed liquidator/insolvency manager. The company holds account number 26006401120000 at JSCB Ukrsibbank, Pavlograd branch, MFO 306856. CONTACT: AGRICULTURAL FIRM VYAZIVOK 51452, Ukraine, Dnipropetrovsk region, Pavlograd district, Vyazivok, Zhovtneva str. 68 Mr. Bezpalov V. Liquidator/Insolvency Manager 49081, Ukraine, Dnipropetrovsk region, Voroncov Avenue 75/232 Phone: (0562) 23-41-67 ECONOMIC COURT OF DNIPROPETROVSK REGION 49027, Ukraine, Dnipropetrovsk region, Kujbishev str. 1a =========================== U N I T E D K I N G D O M =========================== A A PAPER: General Meeting Set August 10 ---------------------------------------- There will be a General Meeting of the Members of A A Paper Company Limited on August 10, 2004 at 2:45 p.m. and 3:00 p.m. respectively. It will be held at Parkin S. Booth & Co., 44 Old Hall Street, Liverpool L3 9EB. The purpose of the Meeting is to lay before the Members the account how the winding up of the company has been conducted. Members who want to be represented at the Meeting may appoint proxies. ABBEY NATIONAL: Winding up Resolutions Passed --------------------------------------------- Name of Companies: Abbey National Computer Services Limited Abbey National Corporate Services Limited Abbey National Properties (1) Limited Abbey National Share Participation Scheme Trustee Company Limited Charterfield Finance Limited Get Motoring Plc J.R.H. Limited WF (Management) Limited At an Extraordinary General Meeting of the Members of these Companies on June 23, 2004 held at Abbey National House, 2 Triton Square, Regent's Place, London NW1 3AN, the Special, Ordinary and Extraordinary Resolutions to wind up the companies were passed. Martin Freeman has been appointed Liquidator for the purpose of such winding-up. CONTACT: GRIFFINS Russell Square House 10-12 Russell Square, London WC1B 5EH Liquidator: Martin Freeman ALL FLOOR: Sets Final Meeting July 23 ------------------------------------- Members of All Floor Sandway Limited will have a Final Meeting on July 23, 2004 at 10:00 a.m. and 10:05 a.m. respectively. It will be held at the offices of Kevin Brown & Associates, 1st Floor, 4 Shakespeare Road, Finchley, London N3 1XE. The purpose of the Meeting is to lay before the Members the account how the winding up of the company has been conducted. Members who want to be represented at the Meeting may appoint proxies. Proxies must be lodged with Kevin Brown & Associates, 1st Floor, 4 Shakespeare Road, Finchley, London N3 1XE not later than 12:00 noon, July 22, 2004. CONTACT: KEVIN BROWN & ASSOCIATES 1st Floor, 4 Shakespeare Road, Finchley, London N3 1XE Liquidator: K T Brown ANGLO FRENCH: Hires Hazlewoods Liquidator ----------------------------------------- At an Extraordinary General Meeting of the Anglo French Investments Limited Company on June 22, 2004 held at Windsor House, Barnett Way, Barnwood, Gloucester GL4 3RT, the Resolutions to wind up the company were passed. Philip John Gorman of Hazlewoods, Windsor House, Barnett Way, Barnwood, Gloucester GL4 3RT has been appointed Liquidator of the Company. CONTACT: HAZLEWOODS Windsor House, Barnett Way, Barnwood, Gloucester GL4 3RT Liquidator: Philip John Gorman ARTERA GROUP: Final Meeting Set July 22 --------------------------------------- Members of Artera Group International Limited Company will have a Final Meeting on July 22, 2004 at 10:00 a.m. and 10:30 a.m. respectively. It will be held at Rochester House, 29 Chorley Old Road, Bolton BL1 3AD. The purpose of the Meeting is to lay before the Members the account how the winding up of the company has been conducted. Members who want to be represented at the Meeting may appoint proxies. BAE SYSTEMS: Dick Olver Succeeds Chairman Sir Richard Evans ----------------------------------------------------------- As previously announced, Sir Richard Evans has retired from the Board of BAE Systems plc and as Chairman of the Company. Dick Olver succeeds him as Chairman with effect on Thursday. Sir Richard will continue to support the Company in an advisory capacity. Dick Olver said Thursday: "Sir Richard Evans has made an immense contribution to this Company and all at BAE Systems wish him well following his retirement from the Board. He is a highly respected individual in the global aerospace and defense industry and I am pleased that he has agreed to continue to assist us with our customer relationships in a number of important overseas markets." CONTACT: BAE SYSTEMS New Filton House, Filton, Bristol BS99 7AR, United Kingdom Phone: +44 (0) 117 969 3831 Web site: http://www.baesystems.com BAE SYSTEMS Advanced Technology Centre PO Box 5, Filton, Bristol BS34 7QW, United Kingdom Phone: +44 (0) 117 302 8000 Fax: +44 (0) 117 302 8007 BAE SYSTEMS C4ISR Building 20X, PO Box 5, Filton, Bristol BS34 7QW, United Kingdom Phone: +44 (0) 117 918 8000 Fax: +44 (0) 117 918 8452 BALMORAL STEELS: Sets July 23 Members Meeting --------------------------------------------- The Members of Balmoral Steels Limited Company will have a Meeting on July 23, 2004 at 10:30 a.m. and 11:00 a.m. respectively. It will be held at Moore Stephens Corporate Recovery Beaufort House, 94-96 Newhall Street, Birmingham B3 1PB. The purpose of the Meeting is to lay before the Members the account how the winding up of the company has been conducted. Members who want to be represented at the Meeting may appoint proxies. BANTAMS: Last-minute Fundraising Saves Football Club ---------------------------------------------------- Several investors have expressed interest to put up some money for indebted Bantams club, convincing Bradford City's administrators to postpone the club's closure. However, the administration is asking the club's players to agree to a proposed wage deferral while trying to come up with a rescue package with the buyers led by music entrepreneur Pete Winkelman. The Bantams has incurred GBP30 million worth of debt, which sent it to receivership in 2003. The club was given until 10 a.m. of June 30 to realize GBP300,000 to stay in business. The club failed to secure the amount until investors expressed their interest to invest. The Bantams, a former Wimbledon football club, was transferred to the Football League's Second Division because of its administration status. The Football League chairman Sir Brian Mawhinney said, "I hope the League's policy of not permitting clubs to begin consecutive seasons in administration helped to focus the attention of all involved." B.H.W. LIMITED: Members General Meeting August 11 ------------------------------------------------- The General Meeting of the Members of the B.H.W. Limited Company will be on August 11, 2004 at 2:45 p.m. and 3:00 p.m. respectively. It will be held at the offices of Parkin S. Booth & Co., 44 Old Hall Street, Liverpool L3 9EB. The purpose of the Meeting is to lay before the Members the account how the winding up of the company has been conducted. Members who want to be represented at the Meeting may appoint proxies. CHILDREN'S CONSUMER: Hires PricewaterhouseCoopers Liquidator ------------------------------------------------------------ Name of Companies: Children's Consumer Products (U.K.) Limited Vivid Imaginations Holdings (U.K.) Limited At the Extraordinary General Meeting of these Companies on June 24, 2004, the Special and Ordinary Resolutions to wind up the company were passed. Tim Walsh and Jonathan Sisson of PricewaterhouseCoopers LLP, One Kingsway, Cardiff CF10 3PW have been appointed Joint Liquidators of these Companies. CONTACT: PRICEWATERHOUSECOOPERS LLP One Kingsway, Cardiff CF10 3PW Liquidators: Tim Walsh Jonathan Sisson COCOM INTERNATIONAL: Names Stoy Hayward Administrator ----------------------------------------------------- IT Developer Cocom International Limited has appointed Martin H Thompson and Shay Bannon of BDO Stoy Hayward as joint administrative receivers. The appointment was made June 23, 2004. CONTACT: BDO STOY HAYWARD LLP Kings Wharf 20-30 Kings Road, Reading Berkshire RG1 3EX Receivers: Martin H Thompson Shay Bannon (IP Nos 8678/01, 5694/01) COLT TELECOM: Warns of Lower-than-expected Results -------------------------------------------------- COLT Telecom Group plc, a leading pan-European provider of business communications solutions and services reiterated that market conditions continued to be challenging. Nevertheless, at constant exchange rates, second quarter revenues are expected to be ahead of both the second quarter of 2003 and the first quarter of 2004. However, COLT also said that since the publication of its first quarter results on 21 April, the company had experienced tougher than expected trading conditions. In addition, there has been slower than anticipated uptake of its data products and the performance of some higher margin voice products has been disappointing. During Q2, revenue growth has therefore come mainly from the lower margin segments of the business. As a result, even though costs continue to be under tight control, overall margins are now under pressure. These trends are expected to continue throughout 2004 and consequently COLT does not now believe that it will meet market expectations for the quarter ended 30 June and the year ending 31 December 2004. COLT now expects that for the year ending 31 December 2004, reported revenues will be above last year and that EBITDA will be slightly below or in line with last year. Operating free cash flow will however show an improvement over 2003 reflecting lower capital expenditure and improvements in working capital. COLT President and CEO Steve Akin said: "We are taking action to improve revenues and are continuing to develop new products, particularly in the higher margin data segments. These initiatives are expected to have a positive impact in the longer term. "COLT remains financially strong with cash and liquid resources of close to GBP800 million and we remain on track to be free cash flow positive on a sustainable basis during 2005. "Our strong customer base and industry leading customer service combined with tight management of costs and strong financial position will continue to allow us to weather what remains a challenging operating environment." Second Quarter Results COLT's financial results for the quarter ended 30 June 2004 will be published on 21 July. CONTACT: COLT TELECOM John Doherty Director Corporate Communications Phone: +44 (0) 20 7390 3681 Gill Maclean Head of Corporate Communications Phone: +44 (0) 20 7863 5314 COLT TELECOM: Ratings Unaffected by Profit Warning -------------------------------------------------- Standard & Poor's Ratings Services said its ratings and outlook on U.K.-based telecommunications operator COLT Telecom Group PLC (B-/Stable/--) were unaffected by the company's adverse trading update. COLT reiterated that market conditions continued to be challenging and that its margins are now under pressure, as a result of the disappointing growth of higher margin products. EBITDA for 2003 was GBP163.4 million ($298.4 million) with a margin of 14%. Standard & Poor's notes the persistent weak demand and strong competition in COLT's key markets. The main risk is that these factors will continue to depress profitable increases in revenue and challenge COLT's ability to achieve sustainable cash generation and grow into its capital structure. COLT's near-term risk, however, is mitigated by its sound liquidity position. At March 31, 2004, the company had cash of GBP786 million and gross debt of GBP1.1 billion with the earliest maturity of GBP109 million due in August 2005. Some EBITDA weakness can, therefore, presently be accommodated in the ratings. CONTACT: STANDARD AND POOR'S RATING SERVICES Analyst E-Mail Addresses simon_redmond@standardandpoors.com leandro_detorreszabala@standardandpoors.com CorporateFinanceEurope@standardandpoors.com CORPORATE TRAVEL: Hires PricewaterhouseCoopers Administrator ------------------------------------------------------------ Stephen Ellis and Ian Stokoe of PricewaterhouseCoopers have been appointed joint administrative receivers for Corporate Travel International Limited Company. The appointment was made June 23, 2004. The company is a travel agency. CONTACT: PRICEWATERHOUSECOOPERS LLP Benson House, 33 Wellington Street, Leeds LS1 4JP Receivers: Stephen Ellis Ian Stokoe (IP Nos 8843, 6587) CYBERES SYSTEMS: Hires Joint Administrator from PwC --------------------------------------------------- Name of Companies: Cyberes Systems Limited Cyberes Plc These travel agents have appointed Stephen Andrew Ellis and Ian Stokoe of PricewaterhouseCoopers as joint administrators. The appointment was made June 23, 2004. CONTACT: PRICEWATERHOUSECOOPERS LLP Benson House, 33 Wellington Street, Leeds LS1 4JP Contact: Stephen Andrew Ellis Ian Stokoe (Office Holder Nos 8843, 6587) FII FOOTWEAR: Shoe Import Business for Sale ------------------------------------------- The joint administrators Richard Philpott and Myles Halley offer for sale the business and assets of Fii Footwear Management Limited. Fii Footwear has leasehold premises located in Northampton, including head office and warehousing on a 1.5-acre site. The company employs 40 personnel and generates turnover of around GBP11 million per annum. Fii Footwear has strong brand names that include Lotus and Frank Wright. The company also has an established blue chip customer base. CONTACT: KPMG LLP 1 Waterloo Way Leicester LE1 6LP Contact: Murray Stewart Phone: 0116 256 6000 Fax: 0116 256 6033 E-mail: murray.stewart@kpmg.co.uk FIRST LEISURE: Clubs Sold Through Management Buyout --------------------------------------------------- RSM Rhodes, administrative receivers of First & Leisure, sold 22 of the firm's nightclubs, including Destiny and Heroes in Plymouth to a group of former managers for an undisclosed sum. First Leisure was in receivership since last month, but its venues continue to trade. The seven new owners include John Smith, former chief executive. They plan to call the new their business The Nightclub Company Ltd. Also included in the transaction is The Works in Broad Street. First Leisure's estate includes some of the U.K.'s largest and most successful clubs. It employs 1,600 people. FORST BROACH: Sets Meeting July 7 --------------------------------- The unsecured Creditors of Forst Broach Co Ltd will have a Meeting on July 7, 2004 at 10:00 a.m. It will be held at Kroll Limited, Aspect Court, 4 Temple Row, Birmingham B2 5HG. Creditors who want to be represented at the Meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to Aspect Court, 4 Temple Row, Birmingham B2 5HG not later than 12:00 noon, July 6, 2004. CONTACT: KROLL LIMITED Aspect Court, 4 Temple Row, Birmingham B2 5HG Joint Administrative Receiver: G S Johal GIBBON & SON: First Liquidation Meeting Set July 6 -------------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Gibbon & Son Engineering Ltd (in Liquidation) I, of Ritson Smith 16 Carden Place Aberdeen AB10 1FX, hereby give notice that I was appointed Interim Liquidator of Gibbon & Son Engineering Ltd on May 25, 2004 by the Interlocutor of the Sheriff at Court of Session. The first meeting in the liquidation called in terms of Section 138(4) of the Insolvency Act 1986 and in accordance with Rule 4.12 of the Insolvency (Scotland) Rules 1986, will be held at 16 Carden Place Aberdeen AB10 1FX on July 6, 2004 at 11:00 a.m. for the purpose of choosing a liquidator, appointing a Liquidation Committee and considering the other Resolutions specified in Rule 4.12(3) of the aforementioned Rules. Creditors are entitled to vote at the meeting only if they have lodged their claim with me at or before the meeting. Creditors may vote either in person or by proxy form, which may be lodged with me at or before the meeting. Ewen R Alexander, Interim Liquidator 16 Carden Place Aberdeen AB10 1FX CONTACT: RITSON SMITH 16 Carden Place Aberdeen AB10 1FX Phone: 01224 643311 Fax: 01224 624359 Web site: http://www.ritson-smith.co.uk GLENCOE SKI: Under New Management --------------------------------- Glasgow businessmen David Campbell and Neil Tait are the new owners of Glencoe ski center, the resort that went into receivership earlier this year. Together with the White Corriers resort, the ski center posted losses of GBP1 million over two years. The resort was closed in November after suffering from a downturn in business for several years. The 200-hectare lot was considered Scotland's first commercial ski center when it opened in 1956, according to BBC News. HEADSTROM LIMITED: Appoints Receivers from PwC ---------------------------------------------- The Headstrom (U.K.) Limited Company has appointed Mark Bowen and Alistair Grove of PricewaterhouseCoopers as joint administrative receivers. The appointment was made June 22, 2004. The company manufactures games and toys. Its registered office address is located at 26 Lower Kings Road, Berkhamstead, Hertfordshire HP4 2AB. CONTACT: PRICEWATERHOUSECOOPERS LLP Cornwall Court, 19 Cornwall Road, Birmingham B3 2DT Receivers: Mark Bowen Alistair Grove (IP Nos 8711, 7913) HHG PLC: Appoints Duncan Ferguson to Board ------------------------------------------ HHG PLC chairman Sir Malcolm Bates on Thursday appointed a new non-executive director, Duncan Ferguson, to the HHG Board with immediate effect. Commenting on the appointment Sir Malcolm said, "I am delighted that we have been able to attract such an experienced actuary as Mr. Ferguson to serve on the HHG Board. His background with Bacon & Woodrow, and latterly with B&W Deloitte and previous Presidency of the Institute of Actuaries will be of the utmost value to the Group." Currently chairman of both Alba Life and Royal & Sun Alliance Life Holdings, Mr. Ferguson is also a non-executive director of HBOS Financial Services (having previously been a director of Halifax Group plc), Illium Insurance, and Windsor Life. A Fellow of the Institute of Actuaries, he served on the Council of the Institute from 1989 to 2000 and as President from 1996 to 1998. He was also a member of Council of the International Actuarial Association from 1996 to 2002. Born and educated in Edinburgh, Mr. Ferguson is a graduate of Trinity College, Cambridge after which he joined Bacon & Woodrow as an actuarial student. In 1975, he joined Eagle Star as director of the International Division. He rejoined Bacon & Woodrow in 1988 as head of its insurance practice and was appointed senior partner in 1994. He retired in May 2003, two years after Bacon & Woodrow merged its insurance practice with Deloitte and Touche. Mr. Ferguson has confirmed that the only details to be disclosed in connection with LSE listing rule 6.F.2 (b) to (g) are that he was Actuary and a director of Nation Life which went into voluntary liquidation in 1974. Following this appointment, the HHG Board comprises three executive and six non-executive directors including the Chairman. As reported at the HHG AGM held on 10 June 2004, Sir Malcolm Bates, Peter Costain and Sir William Wells all intend to retire from the Board at or before the 2005 AGM. Sir Malcolm Bates said, "Mr. Ferguson's appointment is part of the ongoing process to renew the Board with Directors who are able to maintain the appropriate depth and breadth of skill and experience, and to ensure safe stewardship for shareholders." Mr. Ferguson will stand for election at the HHG AGM in 2005. CONTACT: HHG PLC 4 Broadgate London EC2M 2DA Registered in England No. 2072534 ABN 30 106 988 836 Investor Relations Gail Williamson Director of Investor Relations Phone: +44 20 7818 5310 E-mail: investor.relations@hhg.com Media - UK Rob Bailhache Financial Dynamics Phone: +44 20 7269 7190 Media - Australia Graham Canning, Cannings Catherine Frost, Cannings Phone: +61 2 9252 0622 JARVIS PLC: To Dispose of Interest in Baltic Rail Services ---------------------------------------------------------- Jarvis plc entered into a conditional sale agreement with regard to its interest in Baltic Rail Services OU, the majority shareholder in Estonian Railways (AS Eesti Raudtee). The transaction will be completed by the sale of Jarvis' interest in its Dutch joint venture, Jarvis Estonia B.V., to EEIF Rail B.V., an affiliate of Jarvis' joint venture partners in Jarvis Estonia B.V., for a cash consideration of GBP6.75 million. The disposal of this overseas investment reflects the Group's refocusing its activities following the withdrawal from rail maintenance. The proceeds of the sale will be used for working capital in the Group. The net asset value of Jarvis' investment in Jarvis Estonia B.V. at 30 September 2003 was GBP5.8 million inclusive of equity accounted profits and its contribution to group earnings in the year to 31 March 2003 was GBP0.7 million after minority interests. It is expected that the conditions will be fulfilled and the sale agreement completed on or before 9 August 2004. CONTACT: JARVIS PLC Paul Ravenscroft Phone: + 44 20 7462 4639 Andrew Honnor Tulchan Phone: + 44 20 7353 4200 J SAINSBURY: Chairman Leaves as Firm Lowers Profit Forecast ----------------------------------------------------------- Sir Peter Davis of J Sainsbury resigned as Chairman and Director in the wake of a second profit warning from the company. Mr. Davis resigned after refusing to accept a cut in a GBP2.4 million bonus. He is thought to be demanding GBP850,000 compensation for loss of office. The food retailer said pre-tax profit for the year ended March 2005 will be below market expectations of GBP505 million. The company is cutting prices and improving stock availability to recapture the market. J Sainsbury used to be the market leader, but it has since slid down to third spot. Joint brokers, ABN Amro, also cut its pre-tax profits forecast for the company by GBP120 million to GBP400 million. The original pre-tax profits prediction for the current included Shaw's, its American business, which has been sold. ABN now believes this year's total dividend will be slashed to 10p a share, compared with 15.69p last year. Shares in the company went down 16.25 to 268.5p after the profit warning. Chief Executive Justin King is reviewing the strategic alternatives for the business. His works will be published on October 19. The company's annual meeting is set July 12. Mr. Davis will be replaced by ex-BT and Lloyds TSB finance director Philip Hampton, who will be paid GBP395,000 a year. He was then receiving GBP850,000 salary, and it was proposed this will be cut by GBP500,000. CONTACT: J SAINSBURY Investor relations Phone: +44 (0) 20 7695 7162 MARKS & SPENCER: To Restructure Supply Pacts to Save GBP100 Mln --------------------------------------------------------------- In the light of press speculation, Marks & Spencer confirms that it is renegotiating arrangements with suppliers. Following meetings held with key general merchandise and food suppliers, management currently expects to achieve annual buying improvements of at least GBP100 million during the year ending March 2006 and thereafter. A full update will be incorporated in the operational review announcement, which will be made on 12 July. This review will also include details of further significant cost savings. CONTACT: MARKS & SPENCER Corporate Press Office Phone: 020 7268 1919 Investor Relations Tony Quinlan Phone: 020 7268 4195 TULCHAN Phone: 020 7353 4200 Andrew Grant Katie Macdonald-Smith MARTINE FREIGHT: In Administrative Receivership ----------------------------------------------- Bibby Factors Northwest Limited called in Colin Burke and Gary J Corbett of Milner Boardman & Partners as receivers for Martine Freight Services Limited Company (Reg No 03187352, Trade Classification: 6024). The application was filed June 25, 2004. CONTACT: MILNER BOARDMAN & PARTNERS Century House, Ashley Road, Hale, Cheshire WA15 9TG Receivers: Colin Burke Gary J Corbett (Office Holder Nos 8803, 9018) NEXUS IT: Calls in Liquidator ----------------------------- At an Extraordinary General Meeting of the Nexus IT (Southern) Limited on June 21, 2004 held at 8-10 Eastern Road, Romford, Essex RM1 3PJ, the Special and Ordinary Resolution to wind up the company was passed. Keith Barry Stout of KSA, 8-10 Eastern Road, Romford, Essex RM1 3PJ has been appointed Liquidator for the purpose of winding-up. CONTACT: KSA 8-10 Eastern Road, Romford, Essex RM1 3PJ Liquidator: Keith Barry Stout NOTTINGHAM FOREST: Deadline to Pay Debt Set Today ------------------------------------------------- Nottingham City Council has set for today the deadline for Nottingham Forest to pay the GBP4.5 million debts it owes to the city. The city council is likely to ask a writ from the High court to compel the club to pay. The club took a ten-year loan worth GBP4.3 million from Prudential, with the term ending on June 10, 2004. The loan was used to build the Trent End and was guaranteed by Nottingham city council. However, the term ended with Forest paying nothing. This forced the city council to settle the debt plus unpaid interest of GBP200,000. Nottingham Forest once fielded the finest football team in Europe. PARK GROUP: Closes Sale of Non-core Design and Packing Business --------------------------------------------------------------- Park Group, the financial services company based in Birkenhead, has completed the disposal to a management buy-in team of the business and selected assets of its non-core design and packing business Link Brand Solutions Ltd for GBP352,000. Certain residual assets not transferred in the sale will either be sold or retained by Park. Park will receive an annual rent from the retention of the freehold building at Chesterfield. This confirmation of the disposal follows the announcement to the Stock Exchange on 3 June 2004 that conditional agreement to sell the business and assets to a management buy-in team had been reached. CONTACT: PARK GROUP PLC Tavistock Communications Limited Keith Payne Phone: 020 7920 3150 SBF AGRICO: Management Saves Firm from Receivership --------------------------------------------------- The Joint Receivers of the farming equipment distributor, George Sellar & Son Ltd., sold Sellars-Agri business to the preferred bidder, a management buy-out team led by Neil Wattie, the former finance director. The purchase of the business and assets was completed on Friday 25 June for an undisclosed sum. Joint Receiver, Blair Nimmo of KPMG Corporate Recovery commented: "We are very pleased to have concluded the sale to the management team, which has exciting plans for developing the business. This is an excellent outcome for the Oldmeldrum-based operation. The sale has saved approximately 90 jobs. We would also like to thank all parties connected with the business who have assisted in keeping it trading over the course of the last few weeks." A closing date for offers for SBF Agrico's farm equipment manufacturer, Fraser Manufacturing Ltd and both the Grays and Sellars Engineering businesses passed on Tuesday 22 June. The Joint Receivers are presently considering the offers received. SBF Agrico went into Receivership on Tuesday 25 May. CONTACT: KPMG CORPORATE RECOVERY Wilma Littlejohn Corporate Communications Phone: 0131 527 6818 Mobile: 07789 922521 E-mail: wilma.littlejohn@kpmg.co.uk SKYEPHARMA PLC: To Offer New Convertible Bonds ---------------------------------------------- SkyePharma PLC intends to issue not less than GBP35 million 6% Convertible Bonds due 2024. The New Convertible Bonds are being offered for SkyePharma's outstanding 6% convertible bonds due 2005 (the 2005 Bonds), in the ratio of one 2005 Bond for each New Convertible Bond. Holders of GBP35 million in aggregate principal amount of 2005 Bonds have committed that they will participate in the Offering, of which we have irrevocable letters of undertaking in respect of approximately GBP28.8 million. The 2005 Bonds submitted as part of the Offering will be cancelled by SkyePharma. The New Convertible Bonds are being issued by SkyePharma (Jersey) Limited (the Issuer), unconditionally guaranteed on a senior unsecured basis by SkyePharma and convertible into redeemable preference shares of the Issuer which will be automatically and immediately exchanged for ordinary shares of SkyePharma. The New Convertible Bonds will, with effect from 8 September 2004, be consolidated and form a single series with the GBP20 million convertible bonds privately placed by SkyePharma on 4 May 2004. The New Convertible Bonds have a coupon of 6%, a final maturity date of 4 May 2024 and are exchangeable for SkyePharma shares at a price of 100p, subject to certain contingencies. Bondholders will have the right to put the New Convertible Bonds on 4 May 2009, 4 May 2011, 4 May 2014, 4 May 2019 at their principal amount plus accrued interest. The Issuer may redeem the New Convertible Bonds at their principal amount plus accrued interest at any time between 15 May 2009 and 3 May 2011 if the closing price of the ordinary shares has exceeded 130% of the exchange price for the specified period or at any time thereafter. The offer period will commence upon issue of this statement and is expected to end by the close of business on 7 July 2004. However, the offer period may be closed at an earlier time. Application will be made to list the New Convertible Bonds on the London Stock Exchange. The New Convertible Bonds will be issued at or about the time they are admitted to listing, expected to be 29 July 2004. * * * About SkyePharma SkyePharma PLC uses its world-leading drug delivery technology to develop easier-to-use and more effective formulations of drugs. The majority of challenges faced in the formulation and delivery of drugs can be addressed by one of the Company's proprietary technologies in the areas of oral, injectable, inhaled and topical delivery, supported by advanced solubilization capabilities. CONTACT: SKYEPHARMA PLC Donald Nicholson Finance Director Peter Laing Director of Corporate Communications Phone: +44 207 491 1777 CREDIT SUISSE FIRST BOSTON Convertible Sales Desk Phone: +44 207 888 4878 BUCHANAN COMMUNICATIONS Tim Anderson Mark Court Phone: +44 207 466 5000 SUPERTEAM LIMITED: Appoints Vantis Business Recovery Liquidator --------------------------------------------------------------- At an Extraordinary General Meeting of the Members of the Superteam Limited Company on June 23, 2004 held at The White Cottage, 19 West Street, Epsom KT18 7BS, the Special Resolution to wind up the company was passed. Robert Leonard Harry Knight of Vantis Business Recovery, The White Cottage, 19 West Street, Epsom, Surrey KT18 7BS has been appointed the Liquidator of the Company for the purpose of such winding-up. SWIFTMODE LIMITED: Names Receivers from KPMG -------------------------------------------- The Swiftmode Limited Company has appointed Paul Flint and Brian Green of KPMG as joint administrative receivers. The appointment was made June 23, 2004. The company manufactures other forms of plastic products. CONTACT: KPMG CORPORATE RECOVERY St James Square, Manchester M2 6DS Receivers: Paul Flint Brian Green (IP Nos 9075, 8709) TM EUROPE: Sets Creditors Meeting July 9 ---------------------------------------- Creditors of TM Europe Limited (formerly known as Leagas Delaney Europe Limited) will have a Meeting on July 9, 2004 at Grant Thornton House, Melton Street, Euston Square, London NW1 2EP. 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 House, Melton Street, Euston Square, London NW1 2EP not later than 12:00 noon, July 8, 2004. CONTACT: GRANT THORNTON Melton Street, Euston Square, London NW1 2EP Joint Administrator: M Ellis UMC INDUSTRIES: Hires Liquidator from Benedict Mackenzie -------------------------------------------------------- At an Extraordinary General Meeting of the UMC Industries Limited Company on June 18, 2004 held at Pipsmore Park, Bumpers Farm Industrial Estate, Chippenham, Wiltshire SN14 6NQ, the subjoined Special, Ordinary and Extraordinary Resolutions to wind up the company were passed. Malcolm Peter Fillmore and Ms Ranjit Bajjon of Benedict Mackenzie LLP, 3-4 The Courtyard, East Park, Crawley, West Sussex RH10 6AG have been appointed Joint Liquidators for the purpose of such winding-up. CONTACT: BENEDICT MACKENZIE LLP 3-4 The Courtyard East Park, Crawley West Sussex RH10 6AG Liquidators: Malcolm Peter Fillmore Ms Ranjit Bajjon WATERJET PROFILES: Cutting Service Business for Sale ---------------------------------------------------- Administrators at Portland offer for sale the business and assets of Waterjet Profiles Limited, provider of principally second tier and subcontract waterjet cutting services. Waterjet Profiles generates an annual turnover of around GBP1 million from its blue chip customer base, principally in the aerospace industry. The company is also a holder of key aerospace approvals. Additional information on the company can be found at http://www.waterjet-profiles.co.uk. CONTACT: PORTLAND BUSINESS & FINANCIAL SOLUTIONS 1640 Parkway Solent Business Park Whiteley, Fareham Hampshire PO15 7AH Fax: +44 01489 550 499 E-mail: robin.bacon@portland-solutions.co WILSON PUBLICATIONS: Unsecured Creditors Meeting Set July 14 ------------------------------------------------------------ The unsecured Creditors of Wilson Publications Limited will have a Meeting on July 14, 2004 at 10:30 a.m. It will be held at Devonshire House, 60 Goswell Road, London EC1M 7AD. Creditors who want to be represented at the Meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to Devonshire House, 60 Goswell Road, London EC1M 7AD not later than 12:00 noon, July 13, 2004. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter -- Europe is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland USA. Larri-Nil Veloso, Ma. Cristina Canson, Liv Arcipe, and Julybien Atadero, Editors. Copyright 2004. All rights reserved. ISSN 1529-2754. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. The TCR Europe subscription rate is US$575 per half-year, delivered via e-mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Christopher Beard at 240/629-3300. * * * End of Transmission * * *