/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/040810.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 Tuesday, August 10, 2004, Vol. 5, No. 157 Headlines A U S T R I A HEINRICH EDER: Public Auction of Assets August 13 F I N L A N D M-REAL CORPORATION: Consolidates Ownership of Kemiart Liners M-REAL CORPORATION: Selling Price & Pierce to Gould Paper F R A N C E TATI: Vetura Edges Asiatex with EUR14.5 Million Bid G E R M A N Y CELANESE AG: BCP Crystal Takeover to Become Official October 1 DRESDNER BANK: Financial Strength Outlook Revised to Positive LEO PFISTER: Public Auction of Assets August 16 I T A L Y CIRIO DE RICA: Three Bidders Advance to Final Stage CIRIO FINANZIARIA: Faces Probe in Relation to Bombril's Case PARMA ASSOCIAZIONE: Rejects Unsolicited Offer for Star Player PARMALAT FINANZIARIA: Local Antitrust Authority Launches Probe PARMALAT FINANZIARIA: Initiates Revocatory Action Against UBS N E T H E R L A N D S AKER KVAERNER: Wins US$59 Mln Contract in Latin America ASM INTERNATIONAL: Rating Revised to Stable on Improved Results ASM INTERNATIONAL: Buys Korean Semiconductor Equipment Supplier ASM INTERNATIONAL: Clarifies Guidance Statement ISPAT INTERNATIONAL: Net Income Surges to US$325 Million ISPAT INTERNATIONAL: Rating Raised to 'B' on Improved Results N O R W A Y DNO ASA: Expects to Report Profit for Last Six Months P O L A N D AGORA SA: Majority of Operations Losing Money ELEKTROWNIA TUROW: Potential Event of Default May be Deferred R U S S I A AGRO-PROM-SNAB: Altay Court Appoints Insolvency Manager CHEREMKHOVSKAYA SEED: Bankruptcy Case Pending in Irkutsk Court DECORATIVE CULTURES: Deadline for Proofs of Claim August 19 GORNAYA SHORIYA: Undergoes Bankruptcy Supervision Procedure KISELEVSKY BREAD: Proofs of Claim Deadline Expires Next Week NOVOTEKH: Court Sets September 16 Hearing OSINOVOLES: Gives Creditors Until August 18 to File Claims PIT KAZSKY: Kemerovo Court Confirms Insolvency PRIMORSK: Deadline for Proofs of Claim August 19 PROKOPYEVSKY: Court Schedules Next Hearing November 11 SENEY: B. Volik Appointed Insolvency Manager SIBERIA: Succumbs to Bankruptcy TASHGOLSKOYE GAS: Declared Insolvent YUKOS OIL: Seizure of Yuganskneftegaz Illegal, Says Court YUKOS OIL: Banks Offer US$450 Million for Rospan U K R A I N E COMPUTER TECHNOLOGIES: Bankruptcy Proceedings Ongoing DAF-PRODTORG: Court Brings in Liquidator GIRNICHO-PROHIDNITSKIJ: Donetsk Court Confirms Insolvency HDL-STYLE: Deadline for Proofs of Claim Expires August 15 KOVELMYASOPRODUKT: Declared Insolvent NADIYA: Court Starts Bankruptcy Supervision NOVEKOM: Proofs of Claim Deadline August 15 PROMRESURS: Court Affirms Insolvency UKRAGROPROMTORG: Under Bankruptcy Supervision UKRSAJVES: Kyiv Court Commences Bankruptcy Proceedings U N I T E D K I N G D O M 101 DATA: Members, Creditors Final Meetings August 19 ABBEY NATIONAL: Preferred Bidder Expected to Increase Offer AEM ENGINEERING: Winding up Resolution Passed ALFA-MEGA: Sets Final Meeting September 15 APPLICADO LIMITED: Final Meeting Set August 31 AUM 2000: Calls in Liquidator BERKELEY APPLEGATE: Members, Creditors Final Meeting September 2 BRITISH AIRWAYS: Reverses Last Year's First-quarter Loss BRITISH ENERGY: Restructuring Not a Matter of Choice BRITISH SKY: Suing IT Provider for Defective Call Center System BROOKFIELD DEVELOPMENTS: Special Winding up Resolution Passed BUSINESS RADIO: Creditors Meeting Set August 12 BYRTRADE LIMITED: Extraordinary Winding up Resolution Passed CABLE & WIRELESS: May Sell Real Estate Properties CAMROD MOTORS: General Meeting Set September 3 CAPAZ CONSULTANCY: Hires Liquidators from Baker Tilly CONIFERS LEISURE: Brings in Administrators CORPORATE TRAVEL: Sets Creditors Meeting August 19 CUAN OYSTERS: Winding up Resolutions Passed CYBERES PLC: Creditors Meeting Set August 19 DERBYSHIRE DRY: Hires Joint Administrators from Kroll Limited EFFORSENRAB 28: Calls in Liquidator EIDOS PLC: French Rival Offering GBP215 Million, Says Report EQUITABLE LIFE: E&Y May Go Bust if it Loses Equitable Claim EYEHOUSE LIMITED: Hires KPMG Administrators FENNELL & ROBERTS: Sets Final Meeting September 13 H R AIR: Names Liquidator from Ernst & Young INTEGRITY DEVELOPMENTS: Hires Liquidator from Benedict Mackenzie J H J CONSULTING: Names DTE Leonard Curtis Administrator LANECLOUD LIMITED: Contributories Meeting September 22 LOCATION WORKS: Sets Creditors Meeting August 12 MARCONI CORPORATION: Reduces Adjusted Operating Loss to GBP3 Mln NATIONAL 24: Hires Tenon Recovery Administrator NEMUR LTD.: Creditors to Meet Thursday NICHOLLS & HENNESSY: Final General Meeting Set September 20 RAMCO ENERGY: Results of Seven Heads Review Out Soon ROBERTS & PARTNERS: In Administrative Receivership STELEX LIMITED: Sets Creditors Meeting August 17 UNILOCK DESIGN: May Appoint Liquidator August 12 URACO INVESTMENTS: Hires Liquidators from Baker Tilly * Large Companies with Insolvent Balance Sheets ********* ============= A U S T R I A ============= HEINRICH EDER: Public Auction of Assets August 13 ------------------------------------------------- Herbert Karner Industrieauktionen GmbH will auction the assets of Heinrich Eder GmbH & Co. KG on August 13, 2004, 1:00 p.m. at Porschestrabe 23, A-3100 St. Polten, Austria. Around 190 truck and car workshop equipment are up for sale. Inspection of assets is on August 13, 2004 from 8:00 a.m. until 12:45 p.m. Clearance of assets is set on August 16 and 17, 2004 from 8:00 a.m. until 5:00 p.m. (by appointment). Small objects can be cleared on the day of the auction. CONTACT: HERBERT KARNER INDUSTRIEAUKTIONEN GMBH Phone: +43 (0) 3622 55 287 Fax: +43 (0) 3622 54 768 E-mail: contactaustria.karner@goindustry.com ============= F I N L A N D ============= M-REAL CORPORATION: Consolidates Ownership of Kemiart Liners ------------------------------------------------------------ M-real Corporation acquires Metsaliitto Cooperative's and UPM- Kymmene's 53% stake in Kemiart Liners Oy. The purchase price of the shares is about EUR13 million and additionally M-real's interest-bearing net debt will increase by about EUR23 million. As a result, Kemiart Liners will become wholly owned by M-real. The arrangement is expected to marginally enhance M-real's earnings per share for 2004. Oy Metsa Botnia Ab's Kemiart Liners business was formed into a company in April 2002 under the ownership of M-real (47%), UMP- Kymmene (47%) and Metsaliitto Cooperative (6%). At the time, the shareholders agreed to work out the final ownership structure for Kemiart Liners by the end of 2004. Kemiart Liners is the world's leading producer of coated white- top kraftliner. Its full ownership will strengthen M-real's Cartons business. The mill has an annual capacity of 340,000 tons and it employs approximately 150 people. CONTACT: M-REAL CORPORATION Corporate communications Juhani POhO, Senior Vice President and CFO Phone: +358 10 469 5283 Hannu Kottonen Senior Vice President and General manager, Cartons business Phone: +358 10 469 4900 M-REAL CORPORATION: Selling Price & Pierce to Gould Paper --------------------------------------------------------- M-real Corporation signed a Letter of Intent to sell Price & Price Group to Gould Paper Corporation. It is anticipated that the transaction will be completed by the end of September 2004. M-real acquired Price & Pierce Group in 1998. It is a trading house specialized in paperboard, paper and pulp trading operations. The estimated net sales of Price & Pierce Group in 2004 is EUR100 million. The intended sale is part of M-real's action plan to divest its non-core assets. According to current estimate, the sale will not have material financial impact to M- real. CONTACT: M-REAL CORPORATION Corporate communications Juhani Poho, Senior Vice President and CFO Phone: +358 10 469 5283 =========== F R A N C E =========== TATI: Vetura Edges Asiatex with EUR14.5 Million Bid --------------------------------------------------- The Paris commercial court on Thursday picked Vetura as the winning bidder for discount retail chain Tati, Agence France- Presse says. The court chose Vetura, owner of the Fabio Lucci brand, over local textile group Asiatex. Vetura offered EUR14.5 million to acquire 23 of Tati's 29 stores and promised to retain 667 of its nearly 1,000 employees. Blaming stiff competition in the fashion sector, Tati filed a declaration of suspension of payments in August 2003 and was placed in receivership a month later. It posted a net loss of EUR14 million on turnover of EUR106 million for the fiscal year ended June 30, 2004. Vetura and Asiatex emerged as the most serious contenders for Tati from a field of 12 bidders. Lucien Urano, who jointly owns Vetura with shoe company Eram, says, "I am very proud to take over a brand as emblematic as Tati. From tomorrow we will start working to ensure that Tati's difficulties are quickly forgotten." Of the six stores not included in Vetura's acquisition, five have been allowed by the court to continue operating until a buyer is found. The other store has been sold to an unnamed buyer. "From now we have two months to continue this activity and try to sell these stores to other buyers," Tati lawyer Bertrand Biette told AFP. CONTACT: Tati 4 Boulevard Rochechouart 75018 PARIS 18 Phones: 01 55 29 50 00 01 58 22 28 90 01 56 80 06 80 01 53 80 97 70 01 53 01 24 90 E-mail: contact@tati.fr Web site: http://www.tati.fr/ Fabio Lucci Vetura 81, Rue Cartier Bresson 93697 PANTIN Cedex Phone: 01 48 44 90 90 Fax: 01 48 43 40 34 Web site: http://www.vetura.fr/ ============= G E R M A N Y ============= CELANESE AG: BCP Crystal Takeover to Become Official October 1 -------------------------------------------------------------- The domination and profit and loss transfer agreement between Celanese AG and BCP Crystal Acquisition GmbH & Co. KG was entered into the Commercial Register and can therefore become effective as of October 1, 2004. The agreement was approved by the necessary majority at the Extraordinary General Meeting on July 30/31, 2004. BCP is controlled by private equity funds advised by The Blackstone Group. As part of the domination and profit transfer agreement, BCP will be offering cash compensation to shareholders to purchase their shares for EUR41.92 per registered share. Shareholders may accept this offer from the beginning of the new business year on October 1, 2004. The domination agreement gives shareholders at least three months to accept the offer. BCP guarantees those shareholders who wish to retain their shares in Celanese AG a dividend in form of a cash payment of EUR2.89 per registered share for each full business year under effectiveness of the domination and profit and loss transfer agreement. Furthermore, the great majority of shareholders approved the change in the business year, and this change was also entered into the Commercial Register. Thus, from September 30, 2004, onwards, the Celanese business year will begin on October 1 of a particular year and end on September 30 of the following year. A shortened business year will run from January 1, 2004 until September 30, 2004. Celanese AG is a global chemicals company with leading positions in its key products and world-class process technology. The Celanese portfolio consists of four main businesses: Chemical Products, Acetate Products, Technical Polymers Ticona and Performance Products. The Performance Products business consists of Nutrinova sweeteners and food ingredients. In 2003, Celanese generated sales of around EUR4.1 billion with about 9,500 employees. The company has 24 production plants and six research centers in 10 countries mainly in North America, Europe and Asia. For further information, please visit http://www.celanese.com. At the time the offer of cash compensation (Offer) described in this document is made available to Celanese AG shareholders, assuming the U.S. tender offer rules apply to the transaction, BCP Crystal Acquisition GmbH & Co. KG (BCP) will file a tender offer statement with the U.S. Securities and Exchange Commission (S.E.C.) with respect to the Offer and Celanese AG will file a solicitation/recommendation statement on Schedule 14D-9 with respect to the Offer. Celanese AG shareholders are strongly advised to read the tender offer statement, the solicitation/recommendation statement on schedule 14D-9 and other relevant documents regarding the Offer filed by BCP or Celanese AG, as the case may be, with the S.E.C. when they become available because they will contain important information. Celanese AG shareholders will be able to receive these documents, when they become available, free of charge at http://www.sec.gov. Celanese AG shareholders will also be able to obtain documents filed by BCP in connection with the Offer free of charge from BCP and documents filed by Celanese AG in connection with the Offer free of charge from Celanese AG. This announcement is neither an offer to purchase nor a solicitation of an offer to sell securities of Celanese AG. * * * As reported on May 24, 2004 by TCR-Europe, Standard & Poor's Ratings Services lowered its corporate credit rating on Frankfurt, Germany-based Celanese AG to 'B+' from 'BBB'. Ratings remain on CreditWatch with negative implications awaiting the approval by shareholders of the domination agreement and profit and loss transfer agreement, and for the domination agreement to become effective. The corporate credit rating on CNA Holdings Inc. was also lowered to 'B+' from 'BBB'. With the completion of the Blackstone Group's tender offer for Celanese shares (shareholders owning 84% of the outstanding shares have accepted the tender offer), Celanese has begun the process of entering into domination and profit and loss transfer agreements, which will allow Blackstone to control the management and share in the profits and losses of Celanese and provide for minority shares to receive a dividend or cash compensation for their shares. Upon receiving the necessary approvals, the ratings would be affirmed and removed from CreditWatch where they were placed on December 16, 2003. "The downgrade reflects the sharp increase in debt at Celanese to fund the Blackstone Group's tender offer for the shares of this specialty chemical company in a transaction valued at about US$3.5 billion," said Standard & Poor's credit analyst Wesley E. Chinn. DRESDNER BANK: Financial Strength Outlook Revised to Positive ------------------------------------------------------------- Moody's changed from stable to positive the outlook on Dresdner Bank's C-financial strength rating, reflecting the progress of the firm's restructuring process for the last 18 months. It said Dresdner was able to achieve considerable cost reduction and advance the implementation of new risk management processes. It was also able to address portfolio concentrations and underwriting standards. This as the pressure for German banks to provide specific loan loss provisions eases up. Moody's may upgrade the ratings depending on Dresdner Bank's ability to further stabilize its earnings in its strategic businesses, and on keeping the strain on the financial fundamentals from the Institutional Restructuring Unit at an acceptable level. Dresdner Bank's A1 long-term debt and deposit ratings remain unchanged with a stable outlook in line with Allianz's ratings outlook. LEO PFISTER: Public Auction of Assets August 16 ----------------------------------------------- Karner & Co. GMBH will auction the assets of Leo Pfister GmbH Glasbearbeitung on August 16, 2004, 9:00 a.m. at Reitweg 10, Gewerbegebiet, 90587 Veitsbronn-Siegelsdorf, Germany. The assets for sale are: facette grinding unit with 3 stations y.o.m. 94 (for wall mirrors); packet grinding machine y.o.m. 99; glass cutting machine; saw ILISTRA; drilling machine GOTHA; tool boards; turning lathes; milling machine: e-welding units; workbenches; e-hand tools; lawn-mowers; pumps; chaff-cutter, and a set of office furniture which includes desks, chairs, computers, printers, fax machines and copiers. Inspection of assets is on August 16, 2004 from 9:00 a.m. until the end of the sale. CONTACT: KARNER & CO. GMBH Phone: +49 (0) 6136 7544 0 Fax: +49 (0) 6136 7544 29 E-mail: contact.karner@goindustry.com ========= I T A L Y ========= CIRIO DE RICA: Three Bidders Advance to Final Stage --------------------------------------------------- The receivers of troubled Italian food manufacturer Cirio De Rica started Friday their review of the offers from three bidders, Il Sole 24 Ore says. The bids came from Italian food groups Conserve Italia and Divella and a consortium of local entrepreneurs called Stif. Another group, La Doria, had previously submitted a bid, but withdrew it recently. The receivers intend to sell Cirio De Rica for more than its present turnover of EUR150 million to reflect future turnover prospects. Receivers have also received offers from Heinz, Fresh Del Monte, and the Filipino food giant San Miguel Corporation to acquire 40% of subsidiary, Del Monte Pacific. The receivers plan to sell the Philippine-based company for more than its stock market value of US$120 million. After the sale, the receivers plan to repay Cirio's bondholders with 20% to 80% of their principal investments, worth around EUR1.125 billion. CONTACT: Cirio Del Monte Italia S.p.A. Legal Address: Via Augusto Valenziani, 10 - 00187 Rome Phone: 06 421761 Fax: 06 42176230 Administrative Address: Strada Provinciale per Podenzano, 10 - 29010 San Polo di Podenzano Phone: 0523 536123 Fax: 0523 379257 Web site: http://www.cirio.it Cirio Finanziaria S.p.A. Phone: +39 06 4145700 Fax: +39 06 4145729 Web site: http://www.cirio.it CIRIO FINANZIARIA: Faces Probe in Relation to Bombril's Case ------------------------------------------------------------ Magistrates in Rome directed the country's financial watchdog to investigate a case lodged against Cirio Finanziaria by Brazilian Bombril S.A., a former unit of the company, according to Agenzia Giornalista Italia. Bombril is suing the company to recover money related to the sale of the Italian food group several years ago. It did not say how much it is seeking from the motion, but the report noted that earlier this year it took provisions worth BRL3 billion (US$988 million) as a result of the unpaid debts when Cirio Holding was sold to Bombril International about six years ago. The company is also suing Bombril Cirio International S.A., Capitalia S.p.A., Banca di Roma S.p.A., Cragnotti & Partners Capital Investment N.V., C&P Overseas Ltd., and Cirio's former boss, Sergio Cragnotti. Bombril, a leading maker of household cleaning products in the country, has been under the control of the local court since July 2003. Its former Brazilian owner, Ronaldo Sampaio Ferreira, is contesting for control of the firm with Cirio. He won the latest court trial, but a final decision remains pending. Cirio was declared insolvent August last year after defaulting on more than EUR1 billion of bonds in late 2002. PARMA ASSOCIAZIONE: Rejects Unsolicited Offer for Star Player ------------------------------------------------------------- Serie A club Parma Associazione Calcio rules out a sale of its famous striker Alberto Gilardino after reports emerged that first division rival AS Roma is interested in buying the player. Parma director Luca Baraldi said: "I repeat what I said a few weeks ago -- Gilardino is not for sale and there is no room for negotiation. The player is staying at Parma, even if somebody offers us EUR50 million (US$60 million)." Mr. Gilardino scored 23 league goals last season. Parma was declared insolvent by the Civil Court of Parma in April. Citing a report by the Italian news agency Ansa, the Associated Press said Parma has debts of EUR309.6 million (US$366 million), liquid assets of EUR400,000 and EUR41 million credit lines available. CONTACT: PARMALAT FINANZIARIA Sede legale: 43044 Collecchio (Pr) Via Oreste Grassi, 26 Codice fiscale e iscrizione nel Registro delle Imprese di Parma 00175250471 Partita I.V.A. 01938950340 R.E.A. Parma n. 188325 - U.I.C. n. 730 Sede amministrativa: 20122 Milano - Piazza Erculea, 9 Phone: (39) 02 8068801 Fax: (39) 02.8693863 E-mail: x_affari_societari_it@parmalat.net PARMALAT FINANZIARIA: Local Antitrust Authority Launches Probe -------------------------------------------------------------- Parmalat Finanziaria S.p.A., in Extraordinary Administration, communicates that the Antitrust Authority initiated two investigations on 22 July 2004 with regard to Parmalat. Parmalat was informed of the probe on July 27, 2004. The first contends that Parmalat did not respect the conditions imposed by the Antitrust Authority in 1999 relating to the authorization of the acquisition of Eurolat from the Cirio Group, and specifically its failure to divest, Newlat to which certain brands and facilities had been transferred. The second cites the failure to communicate in advance to the Authorities the acquisition of a controlling position in Carnini. The actions that are the subject of the Antitrust Authority's investigation, in which the current Extraordinary Administration of Parmalat had no role whatsoever, are entirely attributable to the previous management of Parmalat. The initiations of these steps by the Antitrust Authority were preceded by a request for information by the Authority to Parmalat Finanziaria S.p.A. in Extraordinary Administration which the latter fulfilled providing all the relevant information in its possession and cooperating fully in the preliminary phases of the Authority's inquiries. Parmalat Finanziaria S.p.A. in Extraordinary Administration does not currently manage either Newlat or Carnini. On the basis of information in his possession or which has been reported in the press, Extraordinary Commissioner, Dr. Enrico Bondi, took the limited but prudent step, in the interest of all the creditors, of recognizing in March 2004 ownership of the holdings in Newlat and Carnini. CONTACT: PARMALAT FINANZIARIA S.P.A. Sede legale: 43044 Collecchio (Pr) Via Oreste Grassi, 26 Codice fiscale e iscrizione nel Registro delle Imprese di Parma 00175250471 Partita I.V.A. 01938950340 - R.E.A. Parma n. 188325 - U.I.C. n. 730 Sede amministrativa: 20122 Milano - Piazza Erculea, 9 Phone: (39) 02.8068801 Fax: (39) 02.8693863 E-mail: x_affari_societari_it@parmalat.net PARMALAT FINANZIARIA: Initiates Revocatory Action Against UBS ------------------------------------------------------------- Parmalat Finanziaria S.p.A., in Extraordinary Administration, communicates that Dr. Enrico Bondi, in his role as Extraordinary Commissioner of Parmalat Finance Corporation B.V. filed a claim with the Court of Parma against UBS Limited, in the form of a revocatory action under article 67 of the Italian bankruptcy law. The case is in connection to the transaction carried out in July 2003 which saw the issue of two bonds for a total nominal value of EUR420 million in the context of which Parmalat B.V. acquired from UBS EUR290 million in bonds from Banco Totta & Acores S.A. The latter were Credit Linked Notes that were underwritten by UBS by way of protection against a default risk of the Parmalat Group. The amount being sought under this revocatory action is EUR290 million plus interest. Further, the Extraordinary Commissioner has reserved the right to act separately to recover damages from UBS. CONTACT: PARMALAT FINANZIARIA S.P.A. Sede legale: 43044 Collecchio (Pr) Via Oreste Grassi, 26 Codice fiscale e iscrizione nel Registro delle Imprese di Parma 00175250471 Partita I.V.A. 01938950340 - R.E.A. Parma n. 188325 - U.I.C. n. 730 Sede amministrativa: 20122 Milano - Piazza Erculea, 9 Phone: (39) 02.8068801 Fax: (39) 02.8693863 E-mail: x_affari_societari_it@parmalat.net ===================== N E T H E R L A N D S ===================== AKER KVAERNER: Wins US$59 Mln Contract in Latin America ------------------------------------------------------- The Chemetics division of Aker Kvaerner Canada Inc. (Chemetics) and Kvaerner Peru S.A. (KPSA) were awarded the contracts by Southern Peru Copper Corporation (SPCC) to build the second sulfuric acid plant and effluent treatment plant at its copper smelter in Ilo Peru. The lump sum contracts which are valued at approximately US$59 million include the complete design, supply, erection, and commissioning of the plant. SPCC is 54.2% owned by Grupo Mexico, the world's third largest copper producer. The new acid plant, which has a capacity of 3760 metric tons per day, is required to capture the off-gases from the smelter, which is also being modernized as part of the Ilo site's overall environmental compliance with Peruvian plant emission regulations. The project will be managed from Chemetics' office in Vancouver, Canada, where it will also carry out the majority of the engineering. Chemetics will be supported by other Aker Kvaerner companies including KPSA and Aker Kvaerner Industrial Constructors (AKIC), who will manage site construction. Following a rigorous tendering process that included competition from the world's leading acid plant contractors, SPCC selected Chemetics to supply the acid plant, based on evaluated technical and commercial merits, plus the excellent working relationship that has existed between the two companies, ever since Chemetics supplied the first acid plant at the Ilo site in 1995. AKER KVAERNER ASA, through its subsidiaries and affiliates, is a leading global provider of engineering and construction services, technology products and integrated solutions. The business within Aker Kvaerner span a number of industries, including Oil & Gas production, Refining & Chemicals, Mining & Metals, Pharmaceuticals & Biotechnology, Power Generation and Pulp & Paper. Aker Kvaerner has aggregated annual revenues of approximately US$4.5 billion and employs around 21,000 employees in more than 30 countries. Oil, Gas, Process & Energy executes technology development, engineering and construction services for industries as diverse as Oil & Gas Onshore and Offshore Developments, Chemicals & Polymers, Pharmaceuticals, Government Services, and Mining & Metals. With an annual turnover of US$1.14 billion, Oil, Gas, Process & Energy (OGPE) business area of Aker Kvaerner employs more than 5,400 people operating worldwide. Chemetics is a process technology company offering engineered systems, proprietary equipment, and complete turnkey plants, to the chemical, water treatment, fertilizer, pulp and paper and non-ferrous metals industries worldwide. We provide innovative processes that enhance performance and productivity while protecting the environment. Our cost-effective solutions result in plants that are safe, reliable, efficient and environmentally acceptable. To maintain our leadership position, we are constantly refining our technologies and developing our know-how through significant R&D expenditures to ensure that our products and services continue to meet the needs of the customers and industries we serve. * * * In April, Fitch Ratings assigned a rating of 'BB' to the Aker Kvaerner AS EUR260 million second priority lien notes issue guaranteed by Aker Kvaerner O&G Group AS (AK O&G). This follows a review of final documentation on the basis of which Fitch confirms the expected rating assigned to these notes on March 12, 2004. The agency's Senior Unsecured rating for AK O&G is 'BB' with a Stable Outlook. The 'BB' rating assigned to the notes, at the same level as the Senior Unsecured rating, reflects the agency's view of the potential recovery prospects of the notes, based on the pro- forma capital structure of the group. Although the notes are contractually subordinated to a EUR150 million senior secured credit facility, and contractually and structurally subordinated to a EUR6.8 million (NOK57 million) project financing loan and bonding facilities in excess of EUR400 million (NOK3 billion), the value within the business should ensure substantial recovery for the note holders. The notes mature on June 15, 2011 and will accrue interest at a rate of 8.375% per annum. The issuer may redeem some or all of the notes from June 15, 2007. This three-year non-call period is shorter than the average that Fitch has typically seen in the market. Subject to covenants being met, the notes are subject to a EUR160 million carve-out for additional indebtedness. Current ratings do not assume a need for additional indebtedness. The net proceeds from the issue of the notes will be held in an escrow account until the new EUR150 million senior secured credit facility is fully in place and bonding facilities have been amended. This is partly conditional upon the completion of the initial public offering of shares by Aker Kvaerner ASA, the new holding company of AK O&G and the Kvaerner Group's engineering and construction businesses. Once all conditions have been fulfilled, proceeds from the notes will be used to repay certain inter-company indebtedness owed to companies outside of AK O&G. CONTACT: AKER KVAERNER Media: Doug Shaw Phone: (Direct Line) (+1) 604 737-4483 Sales Director, Acid Technology, Chemetics Investor relations: Lasse Torkildsen Vice President, Group Comms Phone: +47 67 51 30 39 ASM INTERNATIONAL: Rating Revised to Stable on Improved Results --------------------------------------------------------------- Standard & Poor's Ratings Services revised its outlook on Netherlands-based semiconductor equipment manufacturer ASM International N.V. to stable from negative, following steady improvements in the company's 100%-owned front-end operations and the strengthening of the company's financial profile. At the same time, Standard & Poor's affirmed its ratings on the company, including its 'B+' long-term corporate credit ratings and all related debt ratings. "ASM's first-half 2004 results and outlook for the rest of the year indicate that the company's front-end equipment operations will report positive EBITDA for 2004 after three years of weak profitability," said Standard & Poor's credit analyst Olli Rouhiainen. "The company's 54%-owned Hong Kong-based subsidiary ASM Pacific Technology Ltd. (ASMPT) also performed strongly, helping ASM to improve its financial profile and liquidity position." The company had sales of EUR719 million (US$875 million) and EBITDA of EUR73 million in the 12 months to June 30, 2004. At June 30, 2004, ASM had total debt of EUR210 million, and net debt of EUR38 million. ASM's liquidity should be adequate to finance capital expenditure needs over the coming 24 months, and the company's debt protection measures are now in line with the rating category. The company is expected to continue to gradually improve profitability in its front-end operations. Ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system, at http://www.ratingsdirect.com. It can also be found on Standard & Poor's public Web site at http://www.standardandpoors.com. Alternatively, call one of the following Standard & Poor's numbers: London Ratings Desk (44) 20-7176-7400; London Press Office Hotline (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; Stockholm (46) 8-440-5916; or Moscow (7) 095-783-4017. Members of the media may also contact the European Press Office via e-mail: media_europe@standardandpoors.com. CONTACT: STANDARD AND POOR'S RATING SERVICES Analyst E-mail Addresses olli_rouhiainen@standardandpoors.com guy_deslondes@standardandpoors.com CorporateFinanceEurope@standardandpoors.com ASM INTERNATIONAL: Buys Korean Semiconductor Equipment Supplier --------------------------------------------------------------- ASM International N.V. (NASDAQ: ASMI and Euronext Amsterdam: ASM) completed the acquisition of Genitech, Inc., a privately- held semiconductor equipment supplier based in South Korea, for US$5.2 million in cash and US$4 million in ASMI common shares. The number of shares issued at the closing was 247,638. The total value of the consideration remained unchanged, but the portion of the consideration paid in ASMI common shares decreased compared to our earlier announcement. As indicated in the April 26 announcement of the terms of the pending acquisition, ASM will also pay up to US$9.2 million in cash over the next five years, depending upon the achievement of performance targets. In making the announcement, Arthur del Prado, President and CEO of ASMI stated: "[W]e are delighted that, in completing our acquisition of Genitech, ASMI has taken the final step in the consolidation of our leading edge interconnect platform -- 3G Interconnect -- and cleared the path toward commercialization of these truly ground-breaking technologies for copper metallization. "Genitech's Plasma Enhanced Atomic Layer Deposition (PEALD(TM)), provides complementary solutions to ASMI's own pioneering Atomic Layer Chemical Vapor Deposition (ALCVD(TM)) technology, and Genitech's Cu Superfill CVD(TM) addresses the need for atomic controlof copper deposition without PVD, which will be critical for smallerdevice geometries, 45nm and beyond. In addition, we believe ALD barriers and Cu Superfill CVD(TM) offer the ideal surface preparation for recently-acquired NuTool ECMD(TM) technology on our Aurora(R) low-k film. With ASMI's global presence, we see great potential for this suite of proprietary technologies to further penetrate the copper interconnect market." About Genitech and ASM Founded in 1996 by researchers formerly with the Electronics & Telecommunications Research Institute (ETRI), Genitech, Ltd. is an innovative, dynamic, and privately held company, located in Korea, developing and manufacturing next generation semiconductor processing equipment for thin film deposition and copper metallization. Genitech has developed thin film deposition tools for PEALD(TM) (Plasma Enhanced Atomic Layer Deposition) of dielectric or metallic films and for Cu Superfill CVD(TM) of copper films for next generation metallization and interconnections. For more information, visit Genitech's Web site at http://www.genitech.co.kr. Genitech is a trademark of Genitech, Ltd. ASM International N.V., headquartered in Bilthoven, the Netherlands, is a global company servicing one of the most important and demanding industries in the world. The company and its subsidiaries design and manufacture equipment and materials used to produce semiconductor devices, including production solutions for wafer processing (Front-end segment) and assembly and packaging (Back-end segment). The company possesses a strong technology base, state-of-the-art manufacturing facilities in the United States, Europe, Japan and Asia, a competent and qualified workforce and a highly trained, strategically distributed support network. ASM International's common stock trades on NASDAQ (symbol ASMI) and the Euronext Amsterdam Stock Exchange (symbol ASM). For more information, visit http://www.asm.com. ASM is a registered trademark of ASM International N.V. CONTACT: ASM INTERNATIONAL N.V. Robert de Bakker Phone: +31 30 229 8540 Mary Jo Dieckhaus Phone: +1 212 986 2900 ASM INTERNATIONAL: Clarifies Guidance Statement ----------------------------------------------- ASM International N.V. (ASMI) (Euronext Amsterdam: ASM) said that, because of an apparent misunderstanding of several statements made during its Second Quarter 2004 conference call on July 28, 2004, concerning the future profitability of its Front-End or wafer processing operations, the company is issuing the following clarification. ASM International anticipates continued growth for its Front-end semiconductor equipment operations through the second half of 2004 with a further acceleration in 2005, based in part on the anticipated continued industry expansion, but more specifically on the strength of ASMI's recent technology wins across a broad range of product and process offerings, as well as customer spending plans outlined for next generation technology nodes. Based on these industry and customer roadmaps, ASM reiterated that its Front-end business segment is expected to achieve positive earnings from operations in 2005. ASM's Back-end operations, represented by its 54% ownership in ASM Pacific Technology Ltd. (ASMPT), the world's largest manufacturer of assembly and packaging equipment for the semiconductor industry, have consistently achieved profitability every year since ASMPT was founded in Hong Kong, in 1976. About ASM ASM International N.V. headquartered in Bilthoven, the Netherlands, is a global company servicing one of the most important and demanding industries in the world. The Company possesses a strong technology base, state-of-the-art manufacturing facilities, a competent and qualified workforce and a highly trained, strategically distributed support network. ASM International and its subsidiaries design and manufacture equipment and materials used to produce semiconductor devices. ASM International and its subsidiaries provide production solutions for wafer processing (Front-end segment) as well as assembly and packaging (Back-end segment) through facilities in the United States, Europe, Japan and Asia. ASM International's common stock trades on NASDAQ (symbol ASMI) and Euronext Amsterdam Stock Exchange (symbol ASM). For more information, visit http://www.asm.com. ASM is a registered trademark of ASM International. CONTACT: ASM INTERNATIONAL N.V. Robert de Bakker Chief Financial Officer Phone: +31 30 229 8540 Erik Kamerbeek Director Investor Relations Phone: +31 30 229 8500 Mary Jo Dieckhaus U.S. Investor Relations Phone: +1 212 986 2900 ISPAT INTERNATIONAL: Net Income Surges to US$325 Million -------------------------------------------------------- Ispat International N.V. (NYSE: IST; AEX: IST NA) reported a record net income of US$325 million or US$2.75 per share for the second quarter of 2004 as compared to a net income of US$14 million or US$0.11 per share for the second quarter of 2003. In the first quarter of 2004, the net income was US$102 million or US$0.85 per share. The results for this quarter, in fact, exceeded the best ever annual results achieved so far. Consolidated sales and operating income for the second quarter were US$2.1 billion and US$426 million, respectively, as compared to US$1.4 billion and US$58 million, respectively, for the second quarter of 2003; and US$1.8 billion and US$158 million respectively for the first quarter of 2004. Total steel shipments were approximately 4.1 million tons[1], which represented an increase of approximately 2% over the second quarter of 2003 and a decrease of approximately 4% over the first quarter of 2004. For the six-month period January-June 2004, Ispat International N.V.'s net income was US$427 million or US$3.60 per share as compared to net income of US$65 million or US$0.52 per share for the six-month period January-June 2003. Consolidated sales and operating income for the six month period January-June 2004 were US$3.9 billion and US$584 million respectively, compared to US$2.7 billion and US$133 million respectively for the six-month period January-June 2003. Total steel shipments for the six-month period January-June 2004 were 8.3 million tons, an increase of 6% compared to the six- month period January-June 2003. The improved earnings were primarily due to strong demand for our products across all markets. Our average price realization in the second quarter 2004 improved by 43% compared to the second quarter of 2003 and by 25% compared to the first quarter of 2004, driven by higher base selling prices, raw material surcharges and improved product mix. For the six-month period January-June 2004, average price realization was 30% higher than the corresponding period of 2003. The situation with respect to availability and procurement prices of key raw materials such as iron ore, scrap, coke and natural gas continued to remain challenging. However, Ispat International was able to manage the situation successfully, thereby maintaining shipments and customer service levels. Overall, cost per ton during the quarter was higher by 23% as compared to the second quarter of 2003 and by 9% compared to the first quarter of 2004. Cost per ton during the six-month period January-June 2004 was higher by 18% compared to the corresponding period of 2003. There were no material unusual or one-time items during the quarter. Selling, general and administrative expenses were marginally higher due to higher levels of sales activity, as well as higher costs of logistics. Other income included a gain from the sale of environmental credits at Ispat Inland. Net interest expense was higher mainly due to the costs related to the issue of bonds by Ispat Inland to refinance the previous term loan. -------- Footnote [1] The term "ton" means a short ton (ST). One short ton is equal to 2,000 pounds. Details of Shipments, Sales and Operating Income at our main operating subsidiaries were as follows: Shipments Subsidiary Q2 2004 Q2 2003 Q1 2004 000'Tons 000'Tons 000'Tons US and Canadian 1,801 1,785 1,825 Operating Subsidiaries Ispat Europe Group 1,000 940 1,125 Other Subsidiaries 1,256 1,235 1,274 Sales Subsidiary Q2 2004 Q2 2003 Q1 2004 US$ Million US$ Million US$ Million US and Canadian 1,010 714 853 Operating Subsidiaries Ispat Europe Group 509 373 496 Other Subsidiaries 590 323 406 Operating Income Subsidiary Q2 2004 Q2 2003 Q1 2004 US$ Million US$ Million US$ Million US and Canadian 167 (20) 95 Operating Subsidiaries Ispat Europe Group 54 15 5 Other Subsidiaries 205 63 58 For the six month period January - June: Shipments Subsidiary Six Months Six Months 2004 2003 000'Tons 000'Tons US and Canadian 3,627 3,433 Operating Subsidiaries Ispat Europe Group 2,126 1,941 Other Subsidiaries 2,528 2,418 Sales Subsidiary Six Months Six Months 2004 2003 000'Tons 000'Tons US$ Million US$ Million US and Canadian 1,862 1,410 Operating Subsidiaries Ispat Europe Group 1006 731 Other Subsidiaries 996 597 Operating Income Subsidiary Six Months Six Months 2004 2003 000'Tons 000'Tons US$ Million US$ Million US and Canadian 262 31 Operating Subsidiaries Ispat Europe Group 60 26 Other Subsidiaries 262 76 Liquidity continues to improve. During the second quarter of 2004, working capital increased by US$117 million, mainly due to higher levels of inventories and receivables driven by higher levels of costs and selling prices. The underlying physical levels (represented by number of days' working capital) remained largely unchanged. During the six month period January-June 2004, working capital increased by US$275 million. Capital expenditure during the quarter was US$35 million and during the six months of 2004 was US$56 million. As at June 30, 2004, the Company's cash and cash equivalents were US$143 million ($80 million at December 31, 2003 and US$104 million at March 31, 2004). In addition, the Company's operating subsidiaries had available borrowing capacity of US$223 million as at June 30, 2004. The comparable number was US$236 million as at March 31, 2004 and US$143 million as at December 31, 2003. During the second quarter 2004, the Company reduced net debt by US$248 million, consisting of reduction of borrowings by US$209 million, largely by prepaying long-term debt at its subsidiaries, and increase of US$39 million in cash and cash equivalents. During the six-month period January-June 2004, borrowings was reduced by US$160 million and net debt was reduced by US$223 million. Total debt at the end of the quarter -- which includes both long and short-term debt, as well as borrowings under working capital credit facilities -- was US$2.1 billion, as compared to US$2.3 billion at the end of the first quarter of 2004. During the quarter, the Company purchased 2 million of its own shares from the market under the previously announced share buy back program at an average price of US$12 per share. During the six-month period January-June 2004, the number of its own shares purchased under this program was 5.3 million and the average price was US$10.25 per share. Outlook for third quarter 2004 The Company expects continued strong demand in all its principal markets. However, third quarter shipments are traditionally lower due to seasonal factors. The Company expects improved selling prices across all product segments and flat to somewhat reduced shipments compared to second quarter. On the other hand, there is likely to be continued pressure on availability and cost of all major inputs. Working capital is expected to increase due to increases in input prices and sales. Capital expenditure is expected to be slightly higher in the third quarter than in the second. A key milestone during the third quarter will be the pre-commissioning trials at the new degasser facility in Mexico. Ispat Inland's labor contract has been extended until August 15, 2004 by mutual agreement between Ispat Inland and the United Steelworkers of America (U.S.W.A.). The contract was originally scheduled to expire on July 31, 2004. The Company is hopeful that Ispat Inland will be able to finalize a new agreement with the U.S.W.A. However, if such agreement does not take place, the existing agreement contains provisions for recourse to binding interest arbitration, without any disruption to operations. Overall, the Company expects to benefit from strong market conditions for its products. The third quarter is expected to be a better quarter than the second. The summary consolidated financial and other information, including accounts of Ispat International N.V. and its consolidating subsidiaries are prepared in accordance with U.S. GAAP. All material inter-company balances and transactions have been eliminated. Quantitative information on total shipments of steel products includes inter-company shipments. Ispat International N.V. is one of the largest and most global steel producers, with major steel-making operations in the United States, Canada, Mexico, Trinidad, Germany and France. The Company produces a broad range of flat and long products sold mainly in the North American Free Trade Agreement participating countries and the European Union countries. Ispat International N.V. is a member of the LNM Group. For further information visit http://www.ispat.com. Financial statements are available free of charge at http://bankrupt.com/misc/Ispat_balancesheet.pdf. ISPAT INTERNATIONAL: Rating Raised to 'B' on Improved Results ------------------------------------------------------------- Standard & Poor's Ratings Services raised its long-term corporate credit rating on Dutch-registered steel consortium Ispat International N.V. to 'B' from 'B-'. The outlook is positive. At the same time, Standard & Poor's raised its ratings on Ispat's subsidiaries, Ispat Inland Inc., Ispat Inland L.P., Ispat Europe Group S.A., Ispat Mexicana S.A de C.V., and Ispat Sidbec Inc. The outlook is positive. "The rating actions follow a continued positive outlook for the steel market, which has resulted in good cash flow generation and debt reduction at Ispat," said Standard & Poor's credit analyst Tommy Trask. "The positive outlook reflects the potential for a further ratings upgrade if present favorable market conditions persist, and Ispat continues to devote free cash flows toward debt reduction and strengthen its liquidity position." Ispat reported a stellar performance in the second quarter of 2004, with an operating margin of 22.5%, at the high end of Western steel producers. Present market conditions favor Ispat's business model, given its meaningful backward integration into iron ore and its ability to switch between steel scrap and direct reduced iron in the steel making process. Despite some continued build-up in working capital, Ispat was able to repay US$208 million of debt in the quarter. Given that the third and fourth quarters are likely to be equally strong, and that the company's chairman has reiterated that debt reduction continues to be a high priority for Ispat, Standard & Poor's expects significant debt reduction for the remainder of 2004. The key negative credit factors for the Ispat group are: (i) weakness in the group's financing structure, with dividend restrictions preventing cash from moving from stronger to weaker entities; (ii) weak liquidity, given the increase in cash tied up in working capital and restrictive debt covenants; and (iii) high legacy costs (pension and medical liabilities). Given that most of the group's rated debt, excluding bank debt at Ispat Sidbec, is guaranteed by Ispat and includes cross- default provisions, the default probability of the different legal entities is interlinked. Consequently, Standard & Poor's analysis for the ratings on Ispat and its subsidiaries reflects an element of the weakest link approach. It is Ispat's policy to apply free cash flow generation at the subsidiary level for debt amortization at the local level. These factors more than offset the benefit to the company from its meaningful backward integration, geographical diversification, and scale advantages (e.g. in sourcing raw materials) of the Ispat and LNM groups. Complete ratings information is available to subscribers of RatingsDirect, Standard & Poor's Web-based credit analysis system at http://www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at http://www.standardandpoors.com. CONTACT: STANDARD AND POOR'S RATINGS SERVICES Analyst E-mail Addresses tommy_trask@standardandpoors.com olivier_beroud@standardandpoors.com CorporateFinanceEurope@standardandpoors.com =========== N O R W A Y =========== DNO ASA: Expects to Report Profit for Last Six Months ----------------------------------------------------- As previously announced, DNO A.S.A. will be presenting its results for the second quarter and first half of 2004 on 18 August 2004. The group's profit and loss statements for these periods will among other things be affected by: (a) Net sales gain resulting from the sale of certain Norwegian assets to Lundin Petroleum AB (see stock exchange notice of 18 June 2004) amounts to approximately NOK100 million. (b) In keeping with the company's revised strategy, DNO's exploration and development activity remained high also in the second quarter. According to DNO's accounting principles for the company's oil and gas activities (Successful Efforts), investments in exploration projects, including seismic activity, field studies and dry wells, are expensed. (c) In the second quarter, a little over NOK50 million were expensed as exploration costs, including NOK13 million that were refunded in connection with the sale of Norwegian assets to Lundin and NOK20 million relating to investment in exploration projects with a significant future value potential. Based on the above, DNO's Board of Directors expects the net profit for the second quarter to be about NOK100 million. CONTACT: DNO A.S.A. Helge Eide, Managing Director Phone: (+47) 55 22 47 00 / (+47) 23 23 84 80 Homepage: http://www.dno.no =========== P O L A N D =========== AGORA SA: Majority of Operations Losing Money --------------------------------------------- The magazine, radio and outdoor advertising subsidiaries of Poland's leading media group, Agora S.A., have continued to absorb mounting losses, Warsaw Business Journal reports. The company's remaining profitable business is its Gazet Wyborcza, Poland's largest newspaper. "Agora's [overall] results are better than expected. Gazeta Wyborcza is the company's sole pulling engine, while the other ventures are in need of deep sales and cost restructuring," said DM Millenium brokerage analyst Katarzyna Perzak. Agora reported year-on-year increase in consolidated revenues in first half of this year. For the second quarter, the company recorded a net profit of PLN21.1 million, a 62.3% increase over the previous year. The company owns outdoor advertising leader AMS S.A. It has been an active player in the local radio stations market since 1996. Now its local radio group comprises 29 stations (including 2 associated) and 1 super-regional. It publishes 14 magazine titles. The company operates Internet portal, Gazeta.pl and advertising service Aaaby.pl. ELEKTROWNIA TUROW: Potential Event of Default May be Deferred ------------------------------------------------------------- Fitch Ratings affirmed Elektrownia Turow S.A.'s Senior Secured 'B-' rating and removed it from Rating Watch Negative (RWN). At the same time, the agency has also affirmed the Long-term 'B-' rating on Elektrownia Turow's debt secured by Power Purchase Agreement- (PPA) backed revenues, including Elektrownia Turow B.V.'s EUR270 million guaranteed secured bonds maturing in 2011 and removed it from RWN. The Outlook of the rating is Negative. The rating actions follow a review of recent developments and reflect Fitch's expectations of extended delays to the government's plan to cancel PPAs beyond the 3-6 month term normally associated with Rating Watch. The rating was downgraded from 'BB' and put on RWN on 12 September 2003 to reflect the increasing probability that Elektrownia Turow's PPA will be unilaterally cancelled as part of the restructuring of the Polish power sector. Required procedural changes following Poland's E.U. accession on 1 May 2004 mean it is unlikely that PPAs will be cancelled before 4Q05 at the earliest. Reviewed draft legislation is now being prepared by the government before entering a period of industry consultation in the coming weeks. Parliamentary approval of the PPA cancellation, which could be viewed as a potential event of default, is highly unlikely before 2Q05. While Fitch does not have specific details, it understands from its discussions with representatives of the Ministry of Economy that certain principles will need to be changed to ensure the plan to cancel PPAs and compensate for any associated stranded costs is acceptable to the anti-monopoly office and European Commission. The concept of legal expropriation (for subsequent compensation) is not an option now, and the plan (due to be submitted by the Polish government later this year) may be challenged by those parties involved. Additionally, the concept of one-off compensation appears to have been abandoned in the face of EC's fears of over-compensation. Expectations now are that initial payments will be made covering the majority of stranded costs (as defined by the regulator on grounds acceptable to E.C.) and any subsequent installments will be based on actual performance (prices and volumes) in later years. While the delay in the plan is credit positive for Elektrownia Turow, giving it time to partially de-leverage and complete its modernization program (the last turbine unit is scheduled to be re-commissioned in February 2005), the policy changes will have mixed results. Until more details are known, Fitch will continue to base Elektrownia Turow's rating on the prospective cancellation of its PPA, potentially triggering an event of default and/or forcing a financial restructuring. While generally viewed positively, Fitch does not currently believe the new holding structure (BOT group) will materially mitigate the risk of economic loss of Elektrownia Turow bondholders prior to or on completion of the restructuring. Gross debt peaked at more than PLN4 billion at FYE03. Debt service coverage ratio for 2003 stood at 1.8x against original projections of 1.4x and a covenanted 1.2x, achieved as a result of marginal growth in cash generation, cost controls and FX effects. Any remaining capital expenditure relating to the modernization program (c.PLN300 million) will be funded from organic cash flows. Scheduled debt servicing costs for 2H04 total c.PLN80 million compared to PLN199 million of cash at 30 June 2004. The agency will monitor the situation closely. CONTACT: FITCH RATINGS Josef Pospisil, London Phone: +44 (0) 20 7417 4266 Arkadiusz Wicik, Warsaw Phone: +48 22 433 6600 Laurence Monnier Phone: +44 (0) 20 7417 3546 Media Relations: Alex Clelland, London Phone: +44 20 7862 4084 =========== R U S S I A =========== AGRO-PROM-SNAB: Altay Court Appoints Insolvency Manager ------------------------------------------------------- The Arbitration Court of Altay region has declared OJSC Agro- Prom-Snab insolvent and introduced bankruptcy proceedings. The case is docketed as A03-10108/03-B. Mr. Y. Shelyagin has been appointed insolvency manager. Creditors have until August 18, 2004 to submit their proofs of claim to 656065, Russia, Altay region, Barnaul, A. Petrova Str. 233, Apartment 135. CONTACT: AGRO-PROM-SNAB 658860, Russia, Altay Region, Tabunovsky region, Tabuny, Veteranov Str. 71 Mr. Y. Shelyagin Insolvency Manager 656065, Russia, Altay Region, Barnaul, A. Petrova Str. 233, Apartment 135 CHEREMKHOVSKAYA SEED: Bankruptcy Case Pending in Irkutsk Court -------------------------------------------------------------- The Arbitration Court of Irkutsk region has declared state unitary enterprise Cheremkhovskaya Seed Growing Station on the Herb insolvent and introduced bankruptcy proceedings. The case is docketed as A19-15807/03-49. Mr. V. Leskov has been appointed insolvency manager. Creditors are asked to submit their proofs of claim to 665415, Russia, Irkutsk region, Cheremokhovo, Post User Box 9. CONTACT: CHEREMKHOVSKAYA SEED GROWING STATION ON THE HERB 665407, Russia, Irkutsk region, Cheremkhovo, Vostochniy Mr. V. Leskov Insolvency Manager 665415, Russia, Irkutsk Region, Cheremokhovo, Post User Box 9 The Arbitration Court of Irkutsk Region 664025, Russia, Irkutsk, Gagarina Str. 70 DECORATIVE CULTURES: Deadline for Proofs of Claim August 19 ----------------------------------------------------------- The Arbitration Court of Omsk region has declared CJSC Decorative Cultures (Tin 5508000031) insolvent and introduced bankruptcy proceedings. The case is docketed as AK/E-1/04. Mr. A. Budelev has been appointed insolvency manager. Creditors have until August 19, 2004 to submit their proofs of claim to 644018, Russia, Omsk, 5th Konkordnaya Str. 65B. CONTACT: DECORATIVE CULTURES 644033, Russia, Omsk region, Krasny Put Str. 86 Mr. A. Budelev Insolvency Manager 644018, Russia, Omsk, 5th Konkordnaya Str. 65B GORNAYA SHORIYA: Undergoes Bankruptcy Supervision Procedure ----------------------------------------------------------- The Arbitration Court of Kemerovo region has commenced bankruptcy supervision procedure on OJSC corporation of material - technical supply Gornaya Shoriya. The case is docketed as A27-7243/2004-4. Mr. V. Fedotkin has been appointed temporary insolvency manager. Creditors are asked to submit their proofs of claim to 652992, Russia, Kemerovo region, Tashtagol, Pospelova Str. 20. A hearing will take place on September 29, 2004, 3:00 p.m. CONTACT: GORNAYA SHORIYA 652992, Russia, Kemerovo Region, Tashtagol, Pospelova Str. 20 Mr. V. Fedotkin Temporary Insolvency Manager 652992, Russia, Kemerovo Region, Tashtagol, Pospelova Str. 20 KISELEVSKY BREAD: Proofs of Claim Deadline Expires Next Week ------------------------------------------------------------ The Arbitration Court of Kemerovo region has declared OJSC Kiselevsky Bread Baking Combine insolvent and introduced bankruptcy proceedings. The case is docketed as A27-15774/03-4. Mr. S. Vlasov has been appointed insolvency manager. Creditors have until August 18, 2004 to submit their proofs of claim to 654018, Russia, Kemerovo region, Novokuznetsk, Kirova Str. 64-68. A hearing will take place on May 26, 2005, 3:00 p.m. CONTACT: KISELEVSKY BREAD BAKING COMBINE 652700, Russia, Kemerovo region, Kiselevsk, Mostovaya Str. 10 Mr. S. Vlasov Insolvency Manager 654018, Russia, Kemerovo Region, Novokuznetsk, Kirova Str. 64-68 NOVOTEKH: Court Sets September 16 Hearing ----------------------------------------- The Arbitration Court of Kemerovo region has declared municipal industrial enterprise Novotekh (TIN 4220007859) insolvent and introduced bankruptcy proceedings. The case is docketed as A27- 13319/2003-4. Mr. E. Buryak has been appointed insolvency manager. Creditors are asked to submit their proofs of claim to 652515, Russia, Kemerovo region, Leninsk-Kuznetsky, Zvarygina Str. 18-a, office 214-a. A hearing will take place on September 16, 2004. CONTACT: NOVOTEKH Russia, Kemerovo Region, Novokuznetsk, Lazo Str. 6 Mr. E. Buryak Insolvency Manager 652515, Russia, Kemerovo Region, Leninsk-Kuznetsky, Zvarygina Str. 18a, Office 214a OSINOVOLES: Gives Creditors Until August 18 to File Claims ---------------------------------------------------------- The Arbitration Court of Krasnoyarsk region declared OJSC Osinovoles insolvent and introduced bankruptcy proceedings. The case is docketed as A33-18700/03-s4. Mr. S. Makhov has been appointed insolvency manager. Creditors have until August 18, 2004 to submit their proofs of claim to 660043, Russia, Krasnoyarsk, Vodyannikova Str. 2 A-15, Post User Box 910. CONTACT: OSINOVOLES 663991, Russia, Krasnoyarsk Region, Boguchansky region, Osinovy Mys Mr. S. Makhov Insolvency Manager 660043, Russia, Krasnoyarsk, Vodyannikova Str. 2 A-15 PIT KAZSKY: Kemerovo Court Confirms Insolvency ---------------------------------------------- The Arbitration Court of Kemerovo region has declared small enterprise Pit Kazsky insolvent and introduced bankruptcy proceedings. The case is docketed as A27-13503/2003-4. Mr. V. Fedotkin has been appointed insolvency manager. Creditors have until August 18, 2004 to submit their proofs of claim to 652930, Russia, Kemerovo region, Tashtagolsky region, KAZ, Lenina Str. 12-31. CONTACT: PIT KAZSKY 652930, Russia, Kemerovo region, Tashtagolsky region, Kaz, Lenina Str. 12-31 Mr. V. Fedotkin Insolvency Manager 652930, Russia, Kemerovo Region, Tashtagolsky Region, Kaz, Lenina Str. 12-31 PRIMORSK: Deadline for Proofs of Claim August 19 ------------------------------------------------ The Arbitration Court of Irkutsk region has declared OJSC Primorsk insolvent and introduced bankruptcy proceedings. The case is docketed as A19-4489/04-38. Mr. S. Fedorenko has been appointed insolvency manager. Creditors have until August 19, 2004 to submit their proofs of claim to 664011, Russia, Irkutsk, Sverdlova Str. 35. CONTACT: PRIMORSK 666337, Russia, Irkutsk region, Ust-Ordynsky Buryatsky autonomous region, Osinsky region, Primorsk, Oktyabrskaya Str. Mr. S. Fedorenko Insolvency Manager 664011, Russia, Irkutsk, Sverdlova Str. 35 PROKOPYEVSKY: Court Schedules Next Hearing November 11 ------------------------------------------------------ The Arbitration Court of Kemerovo region has declared state enterprise collective farm Prokopyevsky insolvent and introduced bankruptcy proceedings. The case is docketed as A27-7244/2004- 4. Mr. A. Zakharov has been appointed insolvency manager. Creditors have until August 18, 2004 to submit their proofs of claim to 653052, Russia, Kemerovo region, Prokopyevsk, Location 10 Str. 13-16. A hearing will take place on November 11, 2004, 2:30 p.m. CONTACT: PROKOPYEVSKY 653813, Russia, Kemerovo Region, Prokofyev Region, Verkh-Egos Mr. A. Zakharov Insolvency Manager: 653052, Russia, Kemerovo Region, Prokopyevsk, Location 10 Str. 13-16 SENEY: B. Volik Appointed Insolvency Manager -------------------------------------------- The Arbitration Court of Kemerovo region has declared CJSC Seney insolvent and introduced bankruptcy proceedings. The case is docketed as A27-10224/2003-4. Mr. B. Volik has been appointed insolvency manager. Creditors have until August 18, 2004 to submit their proofs of claim to: (a) Insolvency Manager 652506, Russia, Kemerovo, Leninsk-Kuznetsky, Osinniki Str. 16; (b) Seney 652842, Russia, Kemerovo region, Myski, block 8, 5-14 (c) The Arbitration Court of Kemerovo region SIBERIA: Succumbs to Bankruptcy ------------------------------- The Arbitration Court of Irkutsk region has declared MKTZP Siberia insolvent and introduced bankruptcy proceedings. The case is docketed as A19-5445/04-49. Mr. P. Zhdanov has been appointed insolvency manager. Creditors are asked to submit their proofs of claim to 665458, Russia, Irkutsk region, Usolye- Sibirskoye, Post Office 8, Post User Box 16. CONTACT: SIBERIA Russia, Irkutsk region, Bratsk, Mira Str. 43 Mr. P. Zhdanov Insolvency Manager 665458, Russia, Irkutsk Region, Usolye-Sibirskoye, Post Office 8, Post User Box 16 TASHGOLSKOYE GAS: Declared Insolvent ------------------------------------ The Arbitration Court of Kemerovo region has declared municipal unitary enterprise Tashgolskoye Gas Farm insolvent and introduced bankruptcy proceedings. The case is docketed as A27- 12351/2003-4. Mr. E. Besedin has been appointed insolvency manager. Creditors have until August 18, 2004 to submit their proofs of claim to 653052, Russia, Kemerovo region, Prokopyevsk, Location 10 Str. 13-16. CONTACT: TASHGOLSKOYE GAS FARM 652993, Russia, Kemerovo Region, Tashtagol-3, Kislorodnaya Str. 1 Mr. E. Besedin Insolvency Manager 650065, Russia, Kemerovo Region, Lenina Pr. 164-272 YUKOS OIL: Seizure of Yuganskneftegaz Illegal, Says Court --------------------------------------------------------- Moscow's Arbitration Court on Friday lifted an order to seize shares in Yukos' largest oil-producing unit, Yuganskneftegaz, reports say. The court said the confiscation of the assets by bailiffs was illegal. The government had the assets frozen last month when Yukos failed to meet a deadline to pay US$3.4 billion in tax for 2000. Shares in its two other oil units, Tomskneft and Samaraneftegaz, have also been suspended. Yukos spokesman, Alexander Shadrin said they are still waiting for the decision on the appeal. The ruling came after the reversal of an order made on Thursday giving Yukos access to its bank accounts, which were frozen in relation to the investigation lodged against it on charges of fraud and tax evasion. Yukos shares have lost about three-fourths of their value since April, when the government said the company must pay the US$3.4 billion tax fine for 2000. YUKOS OIL: Banks Offer US$450 Million for Rospan ------------------------------------------------ Russian investment banks forming Alfa Services group are offering to buy Yukos' 56% stake in Rospan International Overseas Ltd. for US$450 million, reports say. The proposal follows reports the oil giant is in talks to sell its shareholding in the Cyprus-registered company to partner Anglo-Russian oil company TNK-BP. TNK-BP said it was willing to buy out the multinational gas joint venture for US$357 million. Yukos said the money raised from a sale will help it pay its EUR3.4 billion tax bill. It has since insisted it does not have cash to pay the amount, and that court orders are preventing it from selling assets. Yukos has until the end of the month to settle the bill. According to Moscow Times, Yukos lawyer Dmitry Gololobov in a letter to the justice ministry argued the stake sale is technically beyond the scope of the ministry's freeze order, which only covers Yukos' assets in Russia. Alfa Services has no relation to Alfa Group, which co-owns TNK- BP, according to Dow Jones Newswires. ============= U K R A I N E ============= COMPUTER TECHNOLOGIES: Bankruptcy Proceedings Ongoing ----------------------------------------------------- The Economic Court of Kyiv region has declared LLC Computer Technologies (code EDRPOU 31111026) insolvent and introduced bankruptcy proceedings. The case is docketed as 23/282. Arbitral manager Mr. V. Krikun (License Number AA 669678) has been appointed liquidator/insolvency manager. The company holds account number 26001301231697/980 at Prominvestbank, Zhovtneve branch in Kyiv region, MFO 322067. CONTACT: COMPUTER TECHNOLOGIES 01021, Ukraine, Kyiv region, Grushevskij Str. 28/2 Mr. V. Krikun Temporary Insolvency Manager Phone: 234-47-55 ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard, 44-B DAF-PRODTORG: Court Brings in Liquidator ---------------------------------------- The Economic Court of Volinska region declared LLC Daf-Prodtorg (code EDRPOU 20144407) insolvent and introduced bankruptcy proceedings on June 16, 2004. The case is docketed as 1/47-B. Arbitral manager Mr. V. Temchishin (License Number AA 630072 approved on November 25, 2003) has been appointed liquidator/insolvency manager. CONTACT: DAF-PRODTORG Ukraine, Volinska region, Volodimir-Volinskij O Hohol Str. 22 Mr. V. Temchishin Liquidator/Insolvency Manager Ukraine, Lutsk, Svitla Str. 5/3 ECONOMIC COURT OF VOLINSKA REGION 43010, Ukraine, Lutsk, Voli Avenue, 54-a GIRNICHO-PROHIDNITSKIJ: Donetsk Court Confirms Insolvency --------------------------------------------------------- The Economic Court of Donetsk region declared LLC Girnicho- Prohidnitskij Enterprise Shahtostroj (code EDRPOU 21996529) insolvent and introduced bankruptcy proceedings on June 23, 2004. The case is docketed as 15/45 B. Arbitral manager Mr. O. Samsonov (License Number 249558) has been appointed liquidator/insolvency manager. The company holds account number 26004302570430 at Prominvestbank, Dobropillya branch, MFO 334118. CONTACT: GIRNICHO-PROHIDNITSKIJ ENTERPRISE SHAHTOSTROJ 85000, Ukraine, Donetsk region, Dobropillya, Zaliznichne Mr. O. Samsonov Liquidator/Insolvency Manager 85030, Ukraine, Donetsk region, Dobropillya district, Krivirizhya, Komsomolska Str. 62 Phone: (06277) 24-00-6 ECONOMIC COURT OF DONETSK REGION 83048, Ukraine, Donetsk region, Artema Str. 157 HDL-STYLE: Deadline for Proofs of Claim Expires August 15 --------------------------------------------------------- The Economic Court of Lviv region declared LLC Joint Ukrainian- Polish Enterprise HDL-Style (code EDRPOU 20017586) insolvent and introduced bankruptcy proceedings on June 22, 2004. The case is docketed as 6/46-7/22. Mr. V. Vinnikov (License Number AA 668279 approved on September 26, 2003) has been appointed liquidator/insolvency manager. Creditors have until August 15, 2004 to submit their proofs of claim to: (a) JOINT-UKRAINIAN-POLISH ENTERPRISE HDL-STYLE Ukraine, Lviv region, B. Kotika Str. 4 (b) ECONOMIC COURT OF LVIV REGION 79010, Ukraine, Lviv region, Lichakivska Str. 81 KOVELMYASOPRODUKT: Declared Insolvent ------------------------------------- The Economic Court of Volinska region declared LLC Kovelmyasoprodukt (code EDRPOU 30007100) insolvent and introduced bankruptcy proceedings on June 9, 2004. The case is docketed as 1/49-B. Arbitral manager Mr. V. Temchishin (License Number AA 630072 approved on November 25, 2003) has been appointed liquidator/insolvency manager. CONTACT: KOVELMYASOPRODUKT Ukraine, Volinska region, Kovel, Volodimirska Str. 156 Mr. V. Temchishin Liquidator/Insolvency Manager Ukraine, Lutsk, Svitla Str. 5/3 ECONOMIC COURT OF VOLINSKA REGION 43010, Ukraine, Lutsk, Voli Avenue, 54-a NADIYA: Court Starts Bankruptcy Supervision ------------------------------------------- The Economic Court of Chernigiv region commenced bankruptcy supervision procedure on Agricultural LLC Nadiya (code EDRPOU 03796057). The case is docketed as 9/119 B. Arbitral manager Mr. Andrij Fedorenko (License Number AA 630136 approved on January 9, 2004) has been appointed temporary insolvency manager. The company holds account number 260004584 at JSPPB Aval, Chernigiv regional branch, MFO 353348. Creditors have until August 15, 2004 to submit their proofs of claim to: (a) AGRICULTURAL NADIYA 16450, Ukraine, Chernigiv region, Borznyanskij district, Velika Zagorivka, Lenin Str. 59-a (b) ECONOMIC COURT OF CHERNIGIV REGION 14000, Ukraine, Chernigiv region, Miru Avenue, 20 NOVEKOM: Proofs of Claim Deadline August 15 ------------------------------------------- The Economic Court of Lviv region declared LLC Joint Ukrainian- Canadian Enterprise Novekom (code EDRPOU 23886684) insolvent and introduced bankruptcy proceedings on June 15, 2004. The case is docketed as 6/58-7/26. Mr. V. Vinnikov (License Number AA 668279 approved on September 26, 2003) has been appointed liquidator/insolvency manager. Creditors have until August 15, 2004 to submit their proofs of claim to: (a) JOINT UKRAINIAN-CANADIAN ENTERPRISE NOVEKOM Ukraine, Lviv region, Ruska Str. 11/18 (b) ECONOMIC COURT OF LVIV REGION 79010, Ukraine, Lviv region, Lichakivska Str. 81 PROMRESURS: Court Affirms Insolvency ------------------------------------ The Economic Court of Kyiv region declared LLC Promresurs (code EDRPOU 30112043) insolvent and introduced bankruptcy proceedings. The case is docketed as 23/66. Arbitral manager Mr. V. Krikun (License Number AA 669678) has been appointed liquidator/insolvency manager. The company holds account number 26003573/980 at JSCB MT-Bank, Kyiv branch, MFO 320962, and account number 26005301000629/980 at JSCB Transbank, Kyiv branch 1, MFO 322896. CONTACT: PROMRESURS 01133, Ukraine, Kyiv region, Shors Str. 44 Mr. V. Krikun Temporary Insolvency Manager Phone: 234-47-55 ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard, 44-B UKRAGROPROMTORG: Under Bankruptcy Supervision --------------------------------------------- The Economic Court of Poltava region commenced bankruptcy supervision procedure on LLC Production-Commercial Company Ukragropromtorg (code EDRPOU 30601638) on May 21, 2004. The case is docketed as 10/85. Arbitral manager Mr. F. Lazaryev (License Number AA 250286 approved on January 24, 2002) has been appointed temporary insolvency manager. The company holds account number 2600420000167 at CB Praveks-Bank, Poltava branch, MFO 331735. Creditors have until August 15, 2004 to submit their proofs of claim to: (a) PRODUCTION-COMMERCIAL COMPANY UKRAGROPROMTORG Ukraine, Poltava region, Rozi Luksenburg Str. 3 (b) Mr. F. Lazaryev Temporary Insolvency Manager Ukraine, Poltava region, Matrosov Str. 27 Phone: (05322) 3-04-37, 7-37-55 (c) ECONOMIC COURT OF POLTAVA REGION 36000, Ukraine, Poltava region, Zigina Str. 1 UKRSAJVES: Kyiv Court Commences Bankruptcy Proceedings ------------------------------------------------------ The Economic Court of Kyiv has declared LLC Ukrsajves (code EDRPOU 20075709) insolvent and introduced bankruptcy proceedings. The case is docketed as 23/64-B. Arbitral manager Mr. V. Krikun (License Number AA 669678) has been appointed liquidator/insolvency manager. The company holds account number 2602630301289/980 at OJSC Oshadbank, MFO 300465. CONTACT: UKRSAJVES 01010, Ukraine, Kyiv region, Arsenalna square, 1 B Mr. V. Krikun Temporary Insolvency Manager Phone: 234-47-55 ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard, 44-B =========================== U N I T E D K I N G D O M =========================== 101 DATA: Members, Creditors Final Meetings August 19 ----------------------------------------------------- The final meeting of the creditors and the members of 101 Data Ltd. will be on August 19, 2004 at 2:15 p.m. and 2:30 p.m. respectively. It will be held at Kingswood Court, 1 Hemlock Close, Kingswood, Surrey KT20 5QW. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the Company disposed of, and to hear any explanation that may be given by the liquidator. Creditors or Members who want to be represented at the meeting may appoint proxies. Proxy forms must be lodged with Kingswood Court, 1 Hemlock Close, Kingswood, Surrey KT20 6QW not later than 12:00 noon, August 18, 2004. ABBEY NATIONAL: Preferred Bidder Expected to Increase Offer ----------------------------------------------------------- Banco Santander is reportedly raising its offer for mortgage bank Abbey National to put off potential counter bids, The Telegraph reports. Abbey has recommended the Santander's GBP8.15 billion cash and paper offer, but rumors of potential rival bids that could mean lengthy anti-trust investigations is worrying the Spanish bank. Considered Spain's biggest bank, Santander wants to avoid uncertainties that could destabilize Abbey's business. A source close to Santander said: "They are very aware that a lengthy inquiry would unsettle Abbey substantially, and they are not going to run back to Spain at the first hint of a counter- bid." It may likely improve its offer or increase proportion of cash. HBOS, Britain's biggest mortgage lender, is expected to bid next month. Lloyds TSB is set to appoint an adviser regarding a possible transaction this week. It has not come up with a specific decision, but is understood ready to lodge an offer once HBOS makes its move. Barclays and HSBC are also considered potential bidders. Competition issues will surely be raised over the combination of Abbey and any high-street bank since a merger would create a dominant position in at least one market. Job cuts would be necessary, potentially deeply if the buyer is a domestic rival. A full-blown auction could see the price for Abbey shoot to close to GBP9 billion, sources told the Telegraph. AEM ENGINEERING: Winding up Resolution Passed --------------------------------------------- At an Extraordinary General Meeting of the AEM Engineering Limited Company on July 29, 2004 held at the offices of Clarke Bell, Parsonage Chambers, 3 The Parsonage, Manchester M3 2HW, the Resolution to wind up the company was passed. John Paul Bell of Clarke Bell, Parsonage Chambers, 3 The Parsonage, Manchester M3 2HW has been appointed Liquidator for the purpose of such a winding-up. CONTACT: CLARKE BELL Parsonage Chambers 3 The Parsonage Manchester M3 2HW Liquidator: John Paul Bell ALFA-MEGA: Sets Final Meeting September 15 ------------------------------------------ The final meetings of the contributories and creditors of Alfa- Mega Limited will be on September 15, 2004 at 11:00 a.m. and 11:30 a.m. respectively. It will be held at the offices of Begbies Traynor, 4th Floor, Riverside House, 31 Cathedral Road, Cardiff CF11 9HB. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the Company disposed of, and to hear any explanation that may be given by the liquidator. Creditors and contributories who want to be represented at the meeting may appoint proxies. Proxy forms must be lodged with Begbies Traynor, 4th Floor, Riverside House, 31 Cathedral Road, Cardiff CF11 9HB not later than 12:00 noon, September 14, 2004. CONTACT: BEGBIES TRAYNOR 4th Floor, Riverside House, 31 Cathedral Road, Cardiff CF11 9HB Joint Liquidator J W Davies Phone: 029 2022 5022 Fax: 029 2022 4523 Web site: http://www.begbies.com APPLICADO LIMITED: Final Meeting Set August 31 ---------------------------------------------- The final meeting of the members and the creditors of Applicado Limited will be on August 31, 2004 at 10:00 a.m. and 10:15 a.m. respectively. It will be held at Tomlinsons, 2 AC Court, High Street, Thames Ditton, Surrey KT7 0SR. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the Company disposed of, and to hear any explanation that may be given by the liquidator. Members or Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must lodged with St John's Court, 72 Gartside Street, Manchester M3 3EL not later than 12:00 noon, August 30, 2004. AUM 2000: Calls in Liquidator ----------------------------- At an Extraordinary General Meeting of the Members of the AUM 2000 Limited Company on July 27, 2004 held at The Old Mill, 9 Soar Lane, Leicester LE3 5DE, the Ordinary and Extraordinary Resolutions to wind up the company were passed. Kirankumar Mistry and John Phillip Walter Harlow have been appointed Joint Liquidators for the purpose of such winding-up. BERKELEY APPLEGATE: Members, Creditors Final Meeting September 2 ---------------------------------------------------------------- The final meetings of the members and creditors of Berkeley Applegate (Investment Consultants) Limited will be on September 2, 2004 at 10:15 a.m. and 10:30 a.m. respectively. It will be held at the offices of KPMG Plym House, 3 Longbridge Road, Plymouth PL6 8LT. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the Company disposed of, and to hear any explanation that may be given by the liquidator. Members of Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be lodged with KPMG Corporate Recovery, Plym House, 3 Longbridge Road, Plymouth PL6 8LT not later than 4:00 p.m., August 31, 2004. CONTACT: KPMG Corporate Recovery, Plym House, 3 Longbridge Road, Plymouth PL6 8LT Liquidator: R J Hill Phone: (01752) 632100 Fax: (01752) 632110 Web site: http://www.kpmg.co.uk BRITISH AIRWAYS: Reverses Last Year's First-quarter Loss -------------------------------------------------------- British Airways posted a pre-tax profit of GBP115 million (2003: GBP45 million loss reflecting the full impact of the war in Iraq and SARS) for the first quarter to June 30, 2004. The operating profit for the first quarter was GBP150 million (2003: GBP40 million profit) delivering an operating margin of 7.8%. Rod Eddington, British Airways' chief executive, said: "These are reasonable results but currently fuel and employee costs remain our biggest challenges. The price of crude oil has soared and we now expect our fuel bill to be GBP225 million higher than last year. As a result we will increase our fuel surcharge on all long-haul sectors. "In addition, the higher pension contributions of GBP133 million a year continue to drive a significant increase in employee costs. "We continue to improve our products for customers. More than 100,000 customers a month now check-in on ba.com and many can also print their own boarding passes at home. We have installed new wireless technology in our airport lounges at Heathrow and Gatwick." Martin Broughton, British Airways' chairman, said: "Market conditions remain unchanged since our last report. Long-haul premium volumes are recovering steadily, while short-haul premium travel remains at lower levels. The non-premium markets are very price sensitive. "We continue to forecast a revenue improvement of 2-3% in the current year. Yield declines over the full year are expected to be more than offset by increased volume. Strategies to curb controllable costs remain the key to achieving long-term, sustainable profitability." Passenger capacity, measured in available seat kilometers (ASKs), increased by 3.4% for the quarter and revenue passenger kilometers (RPKs) were up 7.9%. Seat factor was up 3.1 points at 74.9% in the quarter. Yield measured as pence per RPK deteriorated by 4.5% -- driven largely by foreign exchange movements. Cargo volumes, measured in cargo ton kilometers (CTKs), were up 15.1% compared with last year, with yields down 9.3%. Overall load factor was up 2.3 points at 69.2%. Total costs were down by 0.9% Selling costs, down 14.2% due to travel agents' commission restructuring and renegotiations in distribution contracts. Unit costs improved by 9.1% in the same period driven largely by foreign exchange movements and capacity increases. Fuel costs were up 12.7% to GBP258 million due to increases in fuel price net of hedging, and employee costs rose 4.4%. Revenue in the quarter, at GBP1,925 million, was up 5.1%. Net debt was GBP3,824 million, down GBP334 million since the start of the financial year. A full copy of this press release is available free of charge at http://bankrupt.com/misc/BritishAirways_Q12004.pdf. BRITISH ENERGY: Restructuring Not a Matter of Choice ---------------------------------------------------- The board of British Energy insisted Friday the restructuring plan it had entered into with the government and bondholders is binding. At the annual general meeting in Edinburgh last week, Chairman Adrian Montague said: "Although this is still a bitter pill to swallow, I am satisfied we could not have achieved more for shareholders when these arrangements were concluded last October." He is referring to the proposed restructuring plan that will give shareholders 2.5% of the restructured group with options on another 5%. Polygon Investments, which holds a 5.6% stake, opposes this plan and intends to rally shareholders into injecting fresh capital into the company. This alternative plan will see them owning 30% of the restructured group, Europe Intelligence Wires says. British Energy avoided administration in October 2003 after banks and stockholders agreed to swap around GBP1.3 billion of debt for equity. CONTACT: BRITISH ENERGY PLC 3 Redwood Crescent Peel Park East Kilbride G74 5PR U.K. Phone: (+44/0) 1355 262000 Web site: http://www.british-energy.com/ Investor Relations Paul Heward, Director Phone: 01355 262 201 Fax: 01355 262 568 E-mail: Paul.Heward@British-Energy.com or Investor.Relations@British-Energy.com BRITISH SKY: Suing IT Provider for Defective Call Center System --------------------------------------------------------------- American information technology giant, EDS, can expect a lawsuit from British Sky Broadcasting soon, which is incensed by the performance of a service that failed to live up to expectations. In its annual results last week, BSkyB said: "The group anticipates issuing and serving a claim in the near future for a material amount against an information technology solutions provider, which has provided services to the group as part of the group's investment in customer relationship management (CRM) software and infrastructure." The satellite TV company contracted EDS in late 2000 as part of a GBP170 million investment in CRM. EDS was tasked to provide and set up systems to help BSkyB handle call center inquiries. When the contract ended in December 2002, the company decided to carry out the work itself, spending a further GBP50 million improving CRM functions over the next few years, the Telegraph says. The size of its claim against EDS is not clear, but it will likely reflect the amount BSkyB invested in the system. BSkyB is not the first to complain about EDS' systems lately. A GBP456 million computer system it provided the government's Child Support Agency (CSA) has been beset with problems and led to some families being deprived of welfare payments. Doug Smith, the chief executive of CSA, told MPs last year: "EDS has not lived up to its own expectations to get this system working effectively, as we would have hoped. There are serious issues about performance and delivery." A system supplied to the Inland Revenue to handle tax credits also caused chaos in April 2003, according to the Telegraph. In December Sir Nicholas Montagu, then the chairman of the Inland Revenue, told MPs: "The failure of the IT system and the responsibility for the system not being stable enough for dealing with tax credits lies with EDS as our IT provider." EDS declined to comment when reached by the Telegraph. CONTACT: BRITISH SKY BROADCASTING GROUP Grant Way Isleworth, TW7 5QD Web site: http://www.corporate-ir.net/ Investor Relations Phone: (44) 020 7705 3000 E-mail: investor-relations@bskyb.com Corporate Communications Phone: (44) 020 7705 3000 Corporate Affairs Phone: (44) 020 7705 3000 E-mail: corp.affairs@bskyb.com BROOKFIELD DEVELOPMENTS: Special Winding up Resolution Passed ------------------------------------------------------------- At an Extraordinary General Meeting of the Brookfield Developments (2001) Ltd. Company on July 21, 2004 held at St George's Court, 1 Albion Street, Birmingham B1 3AH, the subjoined Special Resolution to wind up the company was passed. Anthony John Galloway of BDO Stoy Hayward LLP, 125 Colmore Row, Birmingham B3 3SD has been appointed Liquidator for the purpose of such winding-up. CONTACT: BDO STOY HAYWARD LLP 125 Colmore Row Birmingham B3 3SD Liquidator: Anthony John Galloway Phone: 0121 200 4600 Fax: 0121 200 4650 E-mail: birmingham@bdo.co.uk Web site: http://www.bdo.co.uk BUSINESS RADIO: Creditors Meeting Set August 12 ----------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Business Radio Communications Ltd. Notice is hereby given, pursuant to section 98 of the Insolvency Act 1986, that a meeting of Creditors of Business Radio Communications Ltd. will be held at St. Alphage House 2 Fore Street London EC2Y 5DH on August 12, 2004 at 10:30 a.m. for the purpose of having a full statement of the position of the Company's affairs, together with a list of the Creditors of the Company and the estimated amount of their claims, laid before them, and for the purpose, if thought fit, of nominating a Liquidator and of appointing a Liquidation Committee. (Sections 99-101 of the said Act) A Form of Proxy, if intended to be used by creditors wishing to vote at the Meeting, must be duly completed and accompanied by their statement of claim, and must be lodged at St. Alphage House 2 Fore Street London EC2Y 5DH not later that 12:00 noon on the business day before the Meeting. Notice is also given, for the purpose of voting, that secured Creditors must (unless they surrender their security) lodge at St Alphage House 2 Fore Street London EC2Y 5DH before the Meeting, a statement giving particulars of their security, the date when it was given, and the value at which it is assessed. In accordance with section 98 (2) Insolvency Act 1986, a list of Creditors' names and addresses will be available for inspection, free of charge, at UHY Hacker Young, St. Alphage House 2 Fore Street London EC2Y 5DH two business days prior to the meeting. By Order of the Board. M. Vadon, Director BYRTRADE LIMITED: Extraordinary Winding up Resolution Passed ------------------------------------------------------------ At an Extraordinary General Meeting of the Byrtrade Limited Company on July 29, 2004 held at Soar Lane, Leicester LE3 5DE, the subjoined Extraordinary Resolution to wind up the company was passed. Richard John Elwell of Elwell Watchorn & Saxton, 109 Swan Street, Sileby, Leicestershire LE12 7NN has been appointed Liquidator for the purpose of such winding-up. CONTACT: ELWELL WATCHORN & SAXTON 109 Swan Street, Sileby, Leicestershire LE12 7NN Liquidator: Richard John Elwell CABLE & WIRELESS: May Sell Real Estate Properties ------------------------------------------------- Cable & Wireless is conducting a strategic review of its U.K. property portfolio, The Telegraph reported citing a company spokesman. "We are looking at a range of options to improve our cost base and optimize our flexibility," the source said. The telecoms company is considering a sale and a leaseback of its assets. It is also thinking of entering into partnership with property outsourcing companies that provides facilities management services. Cable & Wireless is understood to have met with interested parties, thought to include GE Capital and Goldman Sachs' Whitehall Fund. Chairman Richard Lapthorne is restructuring the group, and has previously thought of reducing its portfolio, but continues to hold on to its 180 freehold and leasehold properties. A deal could force it out of its London head office in Theobalds Road. The firm is aiming to raise more than GBP200 million. The amount will help the company make up for a fall in revenues. Cable & Wireless reported first-quarter revenues of GBP798 million. Last year's figure was GBP869 million. CONTACT: Cable and Wireless plc 124 Theobalds Rd. London WC1X 8RX, United Kingdom Phone: +44-20-7315-4000 Fax: +44-20-7315-5198 Web site: http://www.cwplc.com CAMROD MOTORS: General Meeting Set September 3 ---------------------------------------------- The general meetings of the members and creditors of Camrod Motors Ltd. will be on September 3, 2004 at 11:00 a.m. and 11:15 a.m. respectively. It will be held at the offices of Elliot, Woolfe & Rose, 1st Floor, Equity House, 128-136 High Street, Edgware, Middlesex HA8 7TT. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the Company disposed of, and to hear any explanation that may be given by the liquidator. Members and creditors who want to be represented at the meeting may appoint proxies. CAPAZ CONSULTANCY: Hires Liquidators from Baker Tilly ----------------------------------------------------- At an Extraordinary General Meeting of the Capaz Consultancy Services Limited Company on July 20, 2004 held at Baker Tilly, Lancaster House, 7 Elmfield Road, Bromley, Kent BR1 1LT, the Extraordinary Resolution to wind up the company was passed. Andrew John Tate and John David Ariel of Baker Tilly, 12 Gleneagles Court, Brighton Road, Crawley, West Sussex RH10 6AD have been appointed Liquidators of the Company for the purpose of such winding-up. CONTACT: BAKER TILLY 12 Gleneagles Court Brighton Road, Crawley, West Sussex RH10 6AD Liquidators: Andrew John Tate John David Ariel Phone: 01293 565165 Fax: 01293 532695 Web site: http://www.bakertilly.co.uk CONIFERS LEISURE: Brings in Administrators ------------------------------------------ IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Conifers Leisure Park Limited The notice of appointment lodged in the Court of Session appointed Gordon Craig of Begbies Traynor, 1 Winckley Court, Chapel Street, Preston PR1 8BU and Kenneth W. Pattullo of Begbies Traynor, 4th Floor, 78 St Vincent Street, Glasgow G2 5UB as administrators of Conifers Leisure Park Limited on July 16, 2004. CORPORATE TRAVEL: Sets Creditors Meeting August 19 -------------------------------------------------- The creditors of Corporate Travel International Limited will meet on August 19, 2004 at 10:00 a.m. It will be held at Crowne Plaza Hotel, Wellington Street, Leeds. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to PricewaterhouseCoopers LLP, Benson House, 33 Wellington Street, Leeds LS1 4JP not later than 12:00 noon, August 18, 2004. CONTACT: PRICEWATERHOUSECOOPERS LLP Benson House, 33 Wellington Street, Leeds LS1 4JP Joint Administrators: S A Ellis I D Stokoe Phone: [44] (113) 289 4000 Fax: [44] (113) 289 4460 Web site: http://www.pwc.com CUAN OYSTERS: Winding up Resolutions Passed ------------------------------------------- At an Extraordinary General Meeting of the Members of the Cuan Oysters Limited Company on July 29, 2004 held at 43 Pall Mall, London SW1, the Ordinary and Extraordinary Resolutions to wind up the company were passed. Paul Barrett and Carl Derek Faulds of Portland Business & Financial Solutions Ltd., 1640 Parkway, Solent Business Park, Whiteley, Fareham, Hampshire has been appointed Joint Liquidators of the Company. CONTACT: PORTLAND BUSINESS & FINANCIAL SOLUTIONS LTD. 1640 Parkway Solent Business Park, Whiteley, Fareham, Hampshire Liquidator: Paul Barrett Carl Derek Faulds CYBERES PLC: Creditors Meeting Set August 19 -------------------------------------------- Name of Companies: Cyberes Plc Cyberes Systems Limited The creditors of these companies will meet on August 19, 2004 at 11:30 a.m. and 12:30 p.m. It will be held at Crowne Plaza Hotel, Wellington Street, Leeds. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to PricewaterhouseCoopers LLP, Benson House, 33 Wellington Street, Leeds LS1 4JP not later than 12:00 noon, August 18, 2004. CONTACT: PRICEWATERHOUSECOOPERS LLP Benson House, 33 Wellington Street, Leeds LS1 4JP Joint Administrators: S A Ellis I D Stokoe Phone: [44] (113) 289 4000 Fax: [44] (113) 289 4460 Web site: http://www.pwc.com DERBYSHIRE DRY: Hires Joint Administrators from Kroll Limited ------------------------------------------------------------- David Whitehouse and Simon Wilson have been appointed joint administrators for Derbyshire Dry Lining Co. Limited. The appointment was made July 30, 2004. CONTACT: KROLL LIMITED 1 Oxford Court, Bishopsgate, Manchester M2 3WR Joint Administrators: David Whitehouse Simon Wilson (IP Nos 8699, 8963) EFFORSENRAB 28: Calls in Liquidator ----------------------------------- Name of Companies: Efforsenrab (28) Limited Efforsenrab (29) Limited At an Extraordinary General Meeting of these companies on July 29, 2004 held at 43-45 Butts Green Road, Hornchurch, Essex RM11 2JX, the Special and Ordinary Resolutions to wind up the company were passed. Jeremy Stuart French of Vantis Redhead French Limited, 43-45 Butts Green Road, Hornchurch, Essex RM11 2JX has been appointed Liquidator for the purpose of such winding-up. CONTACT: VANTIS REDHEAD FRENCH LIMITED 43-45 Butts Green Road, Hornchurch, Essex RM11 2JX Liquidator: Jeremy Stuart French EIDOS PLC: French Rival Offering GBP215 Million, Says Report ------------------------------------------------------------ U.K. games publisher Eidos plc is in takeover talks with French rival Ubisoft, The Scotsman reports. Analysts believe the transaction could be worth more than GBP215 million, or around 150 a share. Eidos, the creator of the successful Tom Raider series, put itself up for sale after two profit warnings earlier this summer. The company remains financially sound but is considered too small for the market. Microsoft, Sony and THQ are also believed potential buyers for the company. The company earlier delayed the release of upcoming Vietnam War game, Shellshock: 'Nam 67, to September. EQUITABLE LIFE: E&Y May Go Bust if it Loses Equitable Claim ----------------------------------------------------------- Troubles at insurer Equitable Life is threatening to pull down the society's former accountant, Ernst & Young, as well. Ernst & Young faces GBP2 billion in claims from Equitable Life, which blames the accounting firm for not properly advising it on the extent of its guaranteed contracts. Equitable Life was left with a GBP1.5 billion bill after losing a House of Lords ruling on its guaranteed annuity rates in 2000. Industry observers say the auditor could go bankrupt if it loses the case. According to The Scotsman, Ernst & Young Chairman Nick Land himself has warned that the accounting firm could go bust because it lacks adequate insurance to cover existing negligence claims. CONTACT: Equitable Life Assurance Society Walton Street, Aylesbury, Buckinghamshire HP21 7QW Phone: 0870 901 0052 Fax: 01296 386383 Web site: http://www.equitable.co.uk EYEHOUSE LIMITED: Hires KPMG Administrators ------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Eyehouse Limited The notice of appointment lodged in the Court of Session appointed Gordon Craig of Begbies Traynor, 1 Winckley Court, Chapel Street, Preston PR1 8BU and Kenneth W. Pattullo of Begbies Traynor, 4th Floor, 78 St Vincent Street, Glasgow G2 5UB as administrators of Eyehouse Limited on July 16, 2004. FENNELL & ROBERTS: Sets Final Meeting September 13 -------------------------------------------------- The final meeting of the members of Fennell & Roberts Ltd. will be on September 11, 2004 at 11:00 a.m. It will be held at the offices of Begbies Traynor (Incorporating Taylor Gotham & Fry), The Old Exchange, 234 Southchurch Road, Southend-on-Sea, Essex SS1 2EG. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the Company disposed of, and to hear any explanation that may be given by the liquidator. Members who want to be represented at the meeting may appoint proxies. Proxy forms must be lodged with Begbies Traynor (Incorporating Taylor Gotham & Fry), The Old Exchange, 234 Southchurch Road, Southend-on-Sea, Essex SS1 2EG not later than 12:00 noon, September 10, 2004. CONTACT: BEGBIES TRAYNOR The Old Exchange, 234 Southchurch Road, Southend-on-Sea, Essex SS1 2EG Liquidator: M R Fry H R AIR: Names Liquidator from Ernst & Young -------------------------------------------- At an Extraordinary General Meeting of the H R Air Services Limited Company on July 28, 2004 held at 9 Victoria Road, Romford, Essex RM1 2JT, the Special Resolutions to wind up the company were passed. Ian Best of Ernst & Young LLP, One Bridewell Street, Bristol BS1 2AA has been appointed Liquidator for the purpose of such winding-up. CONTACT: ERNST & YOUNG LLP One Bridewell Street, Bristol BS1 2AA Liquidator: Ian Best Phone: +44 [0] 117 981 2050 Fax: +44 [0] 117 981 2051 Web site: http://www.ey.com INTEGRITY DEVELOPMENTS: Hires Liquidator from Benedict Mackenzie ---------------------------------------------------------------- At an Extraordinary General Meeting of the Integrity Developments Limited Company on July 29, 2004 held at 62 Wilson Street, London EC2A 2BU, the Ordinary and Extraordinary Resolutions to wind up the company were passed. Ian Donald Williams of Benedict Mackenzie LLP, 62 Wilson Street, London EC2A 2BU has been appointed Liquidator of the Company for the purpose of the voluntary winding-up. CONTACT: BENEDICT MACKENZIE LLP 62 Wilson Street, London EC2A 2BU Liquidator: Ian Donald Williams Phone: 020 7247 1174 Fax: 020 7247 3494 Web site: http://www.benemack.com J H J CONSULTING: Names DTE Leonard Curtis Administrator -------------------------------------------------------- J M Titley and A Poxon of Leonard Curtis have been appointed joint administrators for J H J Consulting Limited. The appointment was made July 22, 2004. The company is engaged in other business services. CONTACT: DTE LEONARD CURTIS DTE House, Hollins Mount, Bury BL9 8AT Joint Administrators: J M Titley A Poxon (IP Nos 8617, 8620) LANECLOUD LIMITED: Contributories Meeting September 22 ------------------------------------------------------ The meeting of the contributories of the Lanecloud Limited will be on September 22, 2004 at 11:00 a.m. It will be held at Baker Tilly, 140 London Road, Guildford, Surrey GU1 1UW. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the Company disposed of, and to hear any explanation that may be given by the liquidator. Proxy forms must be lodged with Baker Tilly, 140 London Road, Guildford, Surrey GU1 1UW not later than 4:00 p.m., September 21, 2004. CONTACT: BAKER TILLY 140 London Road, Guildford, Surrey GU1 1UW Liquidator: G L Carton-Kelly Phone: 01483 307000 Fax: 01483 569 281 Web site: http://www.bakertilly.co.uk LOCATION WORKS: Sets Creditors Meeting August 12 ------------------------------------------------ IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Location Works Ltd. Notice is hereby given, pursuant to section 98 of the Insolvency Act 1986, that a meeting of Creditors of Location Works Ltd. will be held at The Bonnington Hotel 92 Southampton Row London WC1B 4BM on August 12, 2004 at 11:30 a.m. for the purpose of having a full statement of the position of the Company's affairs, together with a list of the Creditors of the Company and the estimated amount of their claims, laid before them, and for the purpose, if thought fit, of nominating a Liquidator and of appointing a Liquidation Committee. (Sections 99-101 of the said Act) A Form of Proxy, if intended to be used by creditors wishing to vote at the Meeting, must be duly completed and accompanied by their statement of claim, and must be lodged at The Old Exchange 234 Southchurch Road Southend-on-Sea SS1 2EG not later than 12:00 noon on the business day before the Meeting. Notice is also given, for the purpose of voting, that secured Creditors must (unless they surrender their security) lodge at The Old Exchange 234 Southchurch Road Southend-on-Sea SS1 2EG before the Meeting, a statement giving particulars of their security, the date when it was given, and the value at which it is assessed. Lloyd Biscoe of Begbies Traynor The Old Exchange 234 Southchurch Road Southend-on-Sea SS1 2EG is a person qualified to act as an Insolvency Practitioner in relation to the Company who will, during the period before the day of the Meeting furnish creditors free of charge with such information concerning the Company's affairs as they may reasonably require. By Order of the Board. W. Gatherer, Director July 27, 2004 MARCONI CORPORATION: Reduces Adjusted Operating Loss to GBP3 Mln ---------------------------------------------------------------- First-quarter results for the three months ended 30 June 2004 Operational Performance Ongoing Operations (excluding Outside Plant & Power) (a) Sales GBP289 million (FY04 Q1 GBP291 million; Q4 GBP329 million) (i) in line with typical seasonal spending profile of major customers (ii) market stability confirmed by 3% sales growth at constant currency compared to first quarter of previous year (b) Adjusted gross margin[1] 32.2% (FY04 Q1 25.4%; Q4 34.3%) (i) seasonally lower production volumes and business mix influence quarter on quarter movement (ii) significant improvement year on year driven by ongoing cost reduction and efficiency improvement initiatives (c) Adjusted operating loss[2] GBP3 million (FY04 Q1 GBP45 million loss; Q4 GBP14 million adjusted operating profit) (d) Continued focus on operating cash generation, GBP15 million before exceptional cash costs of GBP26 million See tables below for Group results and reconciliations to U.K. GAAP Outside Plant & Power Disposal (a) Good progress towards completion; now expected by end August (b) US$375 million (GBP207 million) cash proceeds to be applied to pay down Senior Notes at 110% par value (c) Pro forma net cash[3] GBP376 million at 30 June 2004 (reflecting disposal before tax and transaction costs) Increased Financial Disclosure for Ongoing Operations (a) Gross Margin and Operating Profit/(Loss) analysis by 3 new segments: Optical & Access Networks, Broadband Routing & Switching, Network Services Outlook (a) Q1 sales performance gives confidence in full year outlook; guidance maintained for low single digit sales growth (at constant currency) (b) Next generation product and service offering creates medium- term growth opportunities (c) Adjusted gross margin guidance revised up 1 percentage point to reflect impact of OPP disposal; new FY05 target 34% Marconi Corporation plc (MONI) provided results for the three months ended 30 June 2004. Commenting on the results, Mike Parton, Chief Executive, said: "We see more opportunities for sales of our next generation equipment and services than at any time in the last three years, which gives us confidence in our medium-term growth prospects. We remain on track to meet our full year sales and margin targets.' --------- Footnotes [1] stated after cost reclassifications and before exceptional items [2] stated before share option costs, exceptional items and goodwill amortization [3] stated after cash proceeds from OPP disposal have been utilized to fund a further mandatory redemption at 110% par value before the impact of tax and transaction costs (GBP188 million reduction in principal amount of Senior Notes and GBP19 million redemption Important Notice This news release should be read in conjunction with Marconi Corporation Group Non-statutory Accounts and related Notes and Operating and Financial Review (OFR) for the three months ended 30 June 2004. Sales (GBPm) Segment Q1 FY05 Q1 FY04 Optical & Access Networks 137 141 Broadband Routing & Switching 38 43 Network Services 114 107 Ongoing Operations 289 291 OPP 50 51 Continuing Operations 339 342 Discontinued Operations - 25 Group 339 367 (a) Steady demand for Optical Networks equipment across Europe; lower volumes in APAC (b) Continued strong demand for fixed wireless access drives growth in Access Networks (c) BBRS sales impacted by adverse foreign exchange; US$ sales up 1% (d) Network Services growth due to increased Installation, Commissioning & Maintenance activity in Italy and Germany (d) See OFR pages 9 to 12 for full sales analysis by product area and geographic destination GROSS MARGIN Segment Q1 FY05 Q4 FY04 Q1 FY04 Pro forma Pro forma GBPm % GBPm % GBPm % Optical & Access Networks 46 33.6 53 31.7 33 23.4 Broadband Routing & Switching 24 63.2 30 65.2 26 60.5 Network Services 23 20.2 30 25.9 15 14.0 Ongoing Operations 93 32.2 113 34.3 74 25.4 OPP 9 18.0 13 26.5 9 17.6 Continuing Operations 102 30.1 126 33.3 83 24.3 Discontinued Operations - - 5 31.2 6 24.0 Adjusted Gross Margin 102 30.1 131 33.2 89 24.3 Exceptional Items 1 n/a - n/a 5 n/a Group 103 30.4 131 33.2 94 25.6 (a) FY04 pro forma reflects cost reclassification - see OFR p13 (b) Significant year on year improvement in adjusted gross margin from Ongoing Operations driven by cost reduction initiatives (c) Sequential margin performance from Ongoing Operations impacted by lower production volumes, higher proportion of lower margin Network Services sales and other segment- specific factors: (i) Optical & Access Networks: lower volumes more than offset by reduced support costs and higher proportion of higher margin optical sales (ii) BBRS: adverse foreign exchange movement further compounded by higher proportion of lower margin service sales (iii) Network Services: more typical margin profile after particularly strong Q4 with high margin wireless software license sale and improved profitability on certain contracts nearing completion (iv) See OFR pages 14 to 17 for further segmental analysis Operating Profit/(Loss) (GBPm) Segment Q1 FY05 Q1 FY04 Optical & Access Networks (8) (33) Broadband Routing & Switching 8 9 Network Services 5 (6) Central Costs (8) (10) Other (disposed businesses) - (5) Adjusted - Ongoing Operations (3) (45) OPP 1 2 Adjusted - Continuing Operations (2) (43) Operating Exceptional Items 1 (19) Share Option Costs (10) (1) Goodwill Amortization (23) (24) Operating Loss - Continuing Operations (34) (87) Discontinued Operations -- Operating Loss - Group (34) (87) Group Profit & Loss (GBPm) Q1 FY05 Q1 FY04 Sales 339 367 Operating loss (34) (87) Non-operating exceptional items - 3 Joint ventures and associates - (8) Amounts written off investments - 1 Gain on waiver of balance payable to M(2003) - 25 Net interest payable (2) (4) Net finance expenditure (3) (35) Loss before taxation (39) (105) Tax 3 17 Loss after taxation (36) (88) Basic and diluted loss per share (pence) (18.0p) (22.2p) Basic adjusted loss per share (pence) (7.0p) (11.1p) Group Cash Flow (GBPm) Q1 FY05 EBITDA (before share options and exceptional items) 7 Change in working capital 7 Operating cash flow (before exceptional items) 14 Operating exceptionals - restructuring (14) Operating exceptionals - litigation settlement (12) Returns on investment and servicing of finance (5) Tax (2) Net capital expenditure (4) Acquisitions and disposal (4) Group cash flow (before use of liquid resources and financing) (27) Management of liquid resources (performance bond cash releases) 11 Financing (Notes redemptions and repurchases) (23) Group cash flow (39) About Marconi Corporation plc Marconi Corporation plc is a global telecommunications equipment, services and solutions company. The company's core business is the provision of innovative and reliable optical networks, broadband routing and switching and broadband access technologies and services. The company's customer base includes many of the world's largest telecommunications operators. The company is listed on the London Stock Exchange under the symbol MONI and on Nasdaq under the symbol MRCIY. Additional information about Marconi Corporation can be found at http://www.marconi.com CONTACT: MARCONI CORPORATION PLC Press enquiries: David Beck Phone: 0207 306 1490 E-mail: david.beck@marconi.com Investor enquiries: Heather Green Phone: 0207 306 1735 E-mail: heather.green@marconi.com NATIONAL 24: Hires Tenon Recovery Administrator ----------------------------------------------- Duncan Robert Beat of Tenon Recovery has been appointed administrator for National 24 Limited. The appointment was made July 23, 2004. The company installs electrical wiring and other building completion. CONTACT: TENON RECOVERY Salisbury House, 31 Finsbury Circus, London EC2M 5SQ Administrator: Duncan Robert Beat (IP No 8161) Phone: 020 7628 2040 Fax: 020 7628 7531 E-mail: finsburycircus@tenongroup.com Web site: http://www.tenongroup.com NEMUR LTD.: Creditors to Meet Thursday -------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Nemur Ltd. Notice is hereby given, pursuant to section 98 of the Insolvency Act 1986, that a meeting of Creditors of Nemur Ltd. will be held at One Great Cumberland Place London W1H 7LW on July 8, 2004 at 2:00 p.m. for the purpose of having a full statement of the position of the Company's affairs, together with a list of the Creditors of the Company and the estimated amount of their claims, laid before them, and for the purpose, if thought fit, of nominating a Liquidator and of appointing a Liquidation Committee. (Sections 99-101 of the said Act) In accordance with section 98 (2) Insolvency Act 1986, a list of Creditors' names and addresses will be available for inspection, free of charge, at Leonard Curtis, One Great Cumberland Place London W1H 7LW two business days prior to the meeting. By Order of the Board. D. H. Wade, Director July 30, 2004 CONTACT: LEONARD CURTIS & CO One Great Cumberland Place London W1H 7LW Phone: 020 7535 7000 Fax: 020 7723 6059 E-mail: solutions@leonardcurtis.co.uk Web site: http://www.leonardcurtis.co.uk NICHOLLS & HENNESSY: Final General Meeting Set September 20 ----------------------------------------------------------- The final general meeting of the members of Nicholls & Hennessy (Group) Limited will be on September 20, 2004 at 2:00 p.m. It will be held at the offices of BDO Stoy Hayward LLP, 125 Colmore Row, Birmingham B3 3SD. The purpose of the meeting is to receive the account showing how the winding-up has been conducted and the property of the Company disposed of, and to hear any explanation that may be given by the liquidator. Members who want to be represented at the meeting may appoint proxies. Proxy forms must be lodged with BDO Stoy Hayward LLP, 125 Colmore Row, Birmingham B3 3SD not later than 12:00 noon, September 17, 2004. CONTACT: BDO STOY HAYWARD LLP 125 Colmore Row, Birmingham B3 3SD Liquidator: A J Galloway Phone: 0121 200 4600 Fax: 0121 200 4650 E-mail: birmingham@bdo.co.uk Web site: http://www.bdo.co.uk RAMCO ENERGY: Results of Seven Heads Review Out Soon ---------------------------------------------------- Ramco Energy plc, the Aberdeen based exploration and production company, announces an update for the Seven Heads Gas Field in the Celtic Sea. Ramco Seven Heads Limited (RSHL), a wholly owned subsidiary of Ramco, is Operator of the gas field. Technical Review The technical review of the gas field is nearing completion and will shortly be ready for presentation to partners, banks and the Petroleum Affairs Division in Ireland. After discussion with these parties Ramco expects to make an announcement summarizing the findings of the review and detailing the agreed future plans for the field. Ramco anticipates it will not be in a position to publish any new information on the field before the end of August 2004. Current Production and Trading Field production continues to be constrained to allow optimization of the back up transportation facilities and to enhance data acquisition, which remains a priority. The average daily production from the field during July was 20.3 mmscf/d. As confirmed in previous announcements, gas sales nominations under the Gas Sales Agreement can be reset from October 1st 2004. Banking Discussions with the Group's bankers as well as third parties interested in participation in the project are continuing but will not reach a conclusion until the technical review has been completed and future plans have been agreed. Impairment Provision The impairment provision announced previously and reflected in Ramco's 2003 results effectively wrote off the Group's interest in the field, reducing its carrying value to the same level as the non-recourse finance associated with the development, i.e. GBP56.6 million. The outcome of the technical review is not expected to increase the carrying value of the Group's interest in the field. AGM Peter Everett, Senior Non-executive Director will chair the AGM next week as Steve Remp, Ramco's Executive Chairman, is currently recovering from recent surgery to remove a cancerous tumor. Ramco has been advised that the surgeon completed fully curative surgery. At this time Ramco expects Mr. Remp to return to work during October. During his absence Mr. Everett is acting Chairman and Daniel Stover, Chief Operating Officer, is acting Chief Executive Officer. The Seven Heads partners are RSHL (Operator) 82.5%, Northern Exploration Limited (a wholly owned subsidiary of Ramco) 4%, Lundin Ireland Limited 12.5% and Sunningdale Oils (Ireland) Limited 1.0%. * * * Exploration group Ramco says it is currently trying to negotiate the rescheduling of its debts with lenders after encountering problems with a major project. The company had to take exceptional charge of GBP93 million last year, largely due to troubles at its Seven Heads field off the Cork coast. As a result, the company registered a GBP104.1 million pre-tax loss for 2003. Uncertainty over the level of gas reserves at the field in January lowered shares in the company to less than 10% of their pre-disclosure level. The glitch prevented the company from filing its report in April. It was only able to submit the accounts this week. CONTACT: RAMCO ENERGY PLC Aberdeen Steven Bertram, Group Financial Director Phone: 01224 352200 Fleishman-Hillard Saunders - Dublin Michael Parker Phone: 00353 1 618 8450 COLLEGE HILL ASSOCIATES London Nick Elwes Phone: 0207 457 2020 RAMCO ENERGY PLC 62 Queen's Road Aberdeen AB15 4YE United Kingdom Phone: +44 1224 352 200 Fax: +44 1224 352 211 ROBERTS & PARTNERS: In Administrative Receivership -------------------------------------------------- Lloyds TSB Bank Plc called in Richard John Hill and David John Crawshaw of KPMG as joint administrative receivers for engineering company Roberts & Partners (International) Limited (Reg No 03576281, Trade Classification: 7420). The application was filed July 29, 2004. CONTACT: KPMG Corporate Recovery, Arlington Business Park, Theale, Reading RG7 4SD Joint Administrative Receivers: Richard John Hill David John Crawshaw (Office Holder Nos 8027, 8814) Phone: (0118) 9642000 Fax: (0118) 9642222 Web site: http://www.kpmg.co.uk STELEX LIMITED: Sets Creditors Meeting August 17 ------------------------------------------------ The creditors of Stelex Limited will meet on August 17, 2004 at 1:30 p.m. It will be held at Holiday Inn Chester, Wrexham Road, Chester, Cheshire CH4 9DL. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to DTE Leonard Curtis, DTE House, Hollins Mount, Bury BL9 8AT not later than 12:00 noon, August 16, 2004. CONTACT: DTE LEONARD CURTIS DTE House Hollins Mount, Bury BL9 8AT Joint Administrators: A Poxon J M Titley Phone: 0161 767 1200 Fax: 0161 767 1201 Web site: http://www.dtegroup.com UNILOCK DESIGN: May Appoint Liquidator August 12 ------------------------------------------------ IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Unilock Design & Build Ltd. Notice is hereby given, pursuant to section 98 of the Insolvency Act 1986, that a meeting of Creditors of Unilock Design & Build Ltd. will be held at Hilton Birmingham Metropole N E C Birmingham B4 on August 12, 2004 at 11:00 a.m. for the purpose of having a full statement of the position of the Company's affairs, together with a list of the Creditors of the Company and the estimated amount of their claims, laid before them, and for the purpose, if thought fit, of nominating a Liquidator and of appointing a Liquidation Committee. (Sections 99-101 of the said Act) In accordance with section 98 (2) Insolvency Act 1986, a list of Creditors' names and addresses will be available for inspection, free of charge, at SPW Poppleton & Appleby, Gable House 239 Regents Park Road London N3 3LF two business days prior to the meeting. By Order of the Board. D. Gupp, Director July 26, 2004 URACO INVESTMENTS: Hires Liquidators from Baker Tilly ----------------------------------------------------- At an Extraordinary General Meeting of the Members of the Uraco Investments (UK) Limited Company on July 15, 2004 held at 30 Marsiling Industrial Estate Road 8 Singapore 739193, the Special Resolution to wind up the company was passed. Andrew Tate and John David Ariel of Baker Tilly, 9-12 Gleneagles Court, Brighton Road, Crawley, West Sussex have been appointed Liquidators for the purpose of such winding-up. CONTACT: BAKER TILLY 9-12 Gleneagles Court Brighton Road, Crawley, West Sussex Liquidators: Andrew Tate John David Ariel Phone: 01293 565165 Fax: 01293 532695 Web site: http://www.bakertilly.co.uk * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro A.G. (111) 174 (182) BELGIUM ------- Carestel 178 (68) City Hotels 210 (15) Real Software 176 17 CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (2,186) DENMARK ------- Elite Shipping (28) 101 19 FRANCE ------ Banque Nationale de Paris Guyane BNPG (41) 352 N.A. BSN Glasspack (101) 1,151 179 Compagnie Francaise de l'Afrique Occidentale (65) 256 21 Cofidur S.A. (5) 102 19 Europe Computer System (110) 682 377 Grande Paroisse S.A. (927) 629 330 Pneumatiques Kleber S.A. (34) 480 139 SDR Picardie (135) 413 N.A. Soderag 404 N.A. Sofal S.A. (305) 6,619 N.A. Spie-Batignolles (16) 5,281 75 St Fiacre (FIN) (1) 111 (33) Trouvay Cauvin TRCN (0) 134 10 Usines Chauson (23) 249 35 GERMANY ------- Dortmunder Actien-Brauerei DABG (13) 118 (29) F.A. Guenther & Sohn A.G. GUSG (8) 111 N.A. Kaufring A.G. KAUG (19) 151 (51) Nordsee A.G. (8) 195 (31) Primacom AG 1,264 (50) Schaltbau A.G. SLTG (16) 149 26 Sinn Leffers 454 145 Vereinigter Baubeschlag-Handel Holding A.G. VBHG (24) 337 (80) ITALY ----- Binda S.p.A. BND (11) 129 (20) Coin S.p.A. 974 (97) Credito Fondiario e Industriale S.p.A. CRF (200) 4,218 N.A. Finpart S.p.A. 793 248 Olsece S.p.A. 180 (64) Tecnodiff Italia 152 24 NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 Numico N.V. 2,030 83 United Pan-Euro Air UPC (5,266) 5,180 (8,730) NORWAY ------ Pan Fish ASA 513 (330) Petroleum-Geo Services PGO (32) 2,963 (5,250) POLAND ------ Animex S.A. ANX (1) 108 (86) Exbud Skanska S.A. EXBUF (9) 315 (330) Media Capital 399 (85) RUSSIA ------ Zil Auto 333 (10,769) SPAIN ----- Altos Hornos de Vizcaya S.A. (116) 1,283 (278) Santana Motor S.A. (46) 223 41 Sniace S.A. (11) 137 (34) SWITZERLAND ----------- Kaba Holding A.G. KABZN (47) 572 278 Swisslog Holding-R 354 151 TURKEY ------ Dyo Boya Fabrika 106 6 Nergis Holding 125 (2,248) Yasarbank 622 N.A. UNITED KINGDOM -------------- Abbott Mead Vickers (2) 168 (16) Alldays Plc (120) 252 (202) Amey Plc (49) 932 (47) Bonded Coach Holiday Group Plc (6) 188 (44) Blenheim Group (153) 198 (34) Booker Plc BKRUY (60) 1,298 (8) Bradstock Group BDK (2) 269 5 Brent Walker Group BWL (1,774) 867 (1,157) Center Parcs (UK) Group Plc (77) 423 (227) Compass Group CPG (668) 2,972 (298) Costain Group 396 4 Dawson Holdings DWSN (29) 142 (29) Dignity PLC 485 (89) Easynet Group 323 38 Electrical and Music EMI Industries Group (885) 3,472 (293) Euromoney 167 2 Gallaher Group GLH (543) 6,304 116 Gartland Whalley (11) 145 (8) Global Green Tech Group (156) 408 (18) Heath Lambert Fenchurch Group PLC (10) 4,109 (10) Intertek Testing Services ITRK (134) 508 77 Invensys PLC 5,885 882 IPC Media Ltd. (685) 254 16 Lambert Fenchurch Group (1) 1,827 3 Lattice Group (1,290) 12,410 (1,228) Leeds United 144 (29) Manchester City (17) 154 (21) Mytravel Group 2,551 (533) Orange PLC ORNGF (594) 2,902 7 PD Ports PLC 361 0 Premier Foods 1,105 34 Rentokil Initial Plc RTO (1,130) 3,245 (68) Saatchi & Saatchi SSI (119) 705 (41) Seton Healthcare (11) 157 0 Each Tuesday edition of the TCR-Europe contains a list of companies with insolvent balance sheets based on the latest publicly available balance sheet available to our editors at the time of publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* 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 * * *