/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/050118.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, January 18, 2005, Vol. 6, No. 12 Headlines C Z E C H R E P U B L I C TELESYSTEM INTERNATIONAL: Acquires Full Ownership of Oskar UNION BANKA: To Axe More Employees June G E R M A N Y AVANT DESIGN: Last Day for Filing of Claims February 7 BDL BAU: Gives Creditors Until Today to File Claims BETON MARMORWERK: Claims Filing Period Expires Later this Month BODY & MIND: Administrator's Report Out March CELANESE AG: 'B+' Corporate Credit Rating Affirmed DIFFICULT TEXTILHANDELS: Creditors Claims Due Next Week DOMBRINK ALUMINIUM: Verification of Claims Set March HANDEL PRELLBERG: Creditors Meeting Set Mid-March HEINRICH MOLLER: Bielefeld Court Appoints Insolvency Manager HERMANN STEINWEG: Dortmund Court to Review Claims Mid-April INFOBALL GMBH: Provisional Administrator Takes over Operations ISC INFORMATIK: Calls First Creditors Meeting KUNSTSTOFFE DR.: Under Bankruptcy Administration LEFFLER MESSE: Applies for Bankruptcy Proceedings LOEWE DRUCK: Bielefeld Bankruptcy Court Stays All Pending Suits MOLLER STAHLHOCHBAU: Creditors to Meet First Week of March MOVIE SUN: Bankruptcy Proceedings Begin OLYMPIC FILMTHEATERBETRIEBE: Succumbs to Bankruptcy R. FALKENBERG: Creditors Have Until Mid-February to File Claims RIX TECHNOLOGY: Proofs of Claim Deadline Expires Next Month RUHR-GERUSTBAU: Claims Verification Third Week of February I R E L A N D JSG FUNDING: Sells New Notes to Refinance Sub-notes Due 2013 I T A L Y ALITALIA SPA: Low-fare Carriers Urge E.U. to Disallow State Aid PARMALAT U.S.A.: Parties Revise DIP Credit Agreement PARMALAT U.S.A.: Court Okays Farmland's Postpetition Financing L U X E M B O U R G STOLT-NIELSEN: Wins Provisional Immunity from Antitrust Suits N E T H E R L A N D S ROYAL AHOLD: U.S. Unit Vendors Accused of Conspiracy N O R W A Y DNO ASA: Rejects Former Adviser's Claims; Files Countersuit P O L A N D ELEKTRIM-MEGADEX: Intends to Settle Rafaco Debt this Year R U S S I A AGRO-SERVICE: Sets Public Auction Friday AUTO-TRACTOR: Court Brings in Insolvency Manager BARLUKSKOYE: Bankruptcy Hearing Resumes April DIMITROVOGRAD-KHLEB: Auctioning RUB13.5 Million Worth of Assets ELIOTBANK: Moscow Court Opens Bankruptcy Proceedings GARMENT SLAVYANKA: Declared Insolvent NIZHNEGOROD-GRAZHDAN: Insolvency Manager Takes over Helm REINFORCED-CONCRETE 3: Succumbs to Insolvency THERMO-ENERGY: Under Bankruptcy Supervision YUKOS OIL: Russians Forward Incriminating Data to Swiss Court YURYUZANSKIY ENGINEERING: Sets Proofs of Claims Deadline S W E D E N SAAB AB: Rumors of Potential Closure Swirl S W I T Z E R L A N D SWISS INTERNATIONAL: Launches New Zurich-New York Jet Service U N I T E D K I N G D O M CI SECURITIES: Creditors Meeting Set First Week of February COLLINS STEWART: Sets Deadline for Filing of Claims COSTAIN GROUP: Wins Major Construction Project in Mexico COSTAIN GROUP: Confident of Meeting Full-year Forecast DALEOAK PROPERTY: Shareholders Opt to Liquidate Firm DUPADA LIMITED: Liquidators Take over Helm FEDERAL-MOGUL: Proponents Insist on Estimation of T&N Claims NORTHERN FOODS: Christmas Trading Disappoints PITTARDS PLC: Sells Remaining Factory Site for GBP3.15 Mln ROYAL & SUNALLIANCE: Pegs Storm Claims at GBP30 Million * Large Companies with Insolvent Balance Sheets ********* =========================== C Z E C H R E P U B L I C =========================== TELESYSTEM INTERNATIONAL: Acquires Full Ownership of Oskar ---------------------------------------------------------- Telesystem International Wireless, Inc. (NASDAQ: TIWI)(TSX: TIW) has completed the transaction to increase its equity and voting interest in Oskar Holdings N.V. from 27.1% and 52.7%, respectively, to 100%, in exchange for approximately 46 million shares of TIW. Oskar Holdings holds 99.87% of Oskar Mobil a.s. The 72.9% equity interest in Oskar Holdings was acquired from certain private equity investors, which include funds advised or managed by ABN AMRO Capital, Advent International Corporation, AlpInvest Partners, EMP Europe, the European Bank for Reconstruction and Development, JP Morgan Partners, Mediatel Capital and Part'Com. Funds advised or managed by JP Morgan Partners and EMP Europe, two significant shareholders of TIW, will receive respectively 17.4 million and 7.0 million of the TIW shares issued in the transaction. The terms of the agreement restrict the selling shareholders' ability to resell or otherwise dispose of their TIW shares for a period of 12 months following closing of the transaction. Partial releases from this lock-up will occur on the first business day in each successive period of 45 days starting January 12, 2005, as to 5%, 5%, 18.75%, 18.75%, 7.5%, 7.5%, 18.75% and 18.75%, respectively, of their TIW shares on each release date. This transaction increased the number of TIW common shares issued and outstanding from approximately 169.2 million common shares to 215.2 million. About the Company Telesystem International Wireless Inc. -- http://www.tiw.com/-- is a leading provider of wireless voice, data and short messaging services in Central and Eastern Europe with over 6.1 million subscribers. TIW operates in Romania through MobiFon S.A. under the brand name Connex and in the Czech Republic through Oskar Mobil a.s. under the brand name Oskar. * * * In June, Standard & Poor's Ratings Services placed its 'B-' long-term corporate credit ratings on MobiFon Holdings B.V. and Telesystem International Wireless Inc. on CreditWatch with positive implications. Telesystem International owns 99.8% of MobiFon Holdings, which in turn owns 63.5% of MobiFon S.A., Romania's largest cellular operator. "The CreditWatch placement follows Telesystem International's announcement that it has entered into an agreement in principle, which will result in MobiFon Holdings increasing its ownership interest in MobiFon up to 79% from the current 63.5%," said Standard & Poor's credit analyst Joe Morin. CONTACT: TELESYSTEM INTERNATIONAL WIRELESS INC. 1250 Rene-Levesque Blvd. W., 38th Fl. Montreal, Quebec H3B 4W8, Canada Phone: 514-673-8497 Fax: 514-673-8470 Web site: http://www.tiw.ca Jacques Lacroix Investor Relations Phone: (514) 673-8466 E-mail: jlacroix@tiw.ca UNION BANKA: To Axe More Employees June --------------------------------------- Bankrupt financial institution Union Banka plans to trim down its workforce from 40 to 20, Czech News Agency says. Union Banka spokesman Oldrich Babicky said the reduction is necessary to lower the cost of the bankruptcy proceedings. The job-cuts will be implemented June. CONTACT: UNION BANKA a.s. Ul. 30 Dubna c. 35 70200 Ostrava Phone: 596108111 Fax: 596120134 E-mail: union@union.cz Web site: http://www.union.cz ============= G E R M A N Y ============= AVANT DESIGN: Last Day for Filing of Claims February 7 ------------------------------------------------------ The district court of Bochum opened bankruptcy proceedings against Avant Design-Studio GmbH & Co. KG on Dec. 28, 2004. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 7, 2005 to register their claims with court-appointed provisional administrator Frank Imberger. Creditors and other interested parties are encouraged to attend the meeting on March 3, 2005, 9:30 a.m. at the district court of Bochum, Hauptstelle, Viktoriastrasse 14, 44787 Bochum at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: AVANT DESIGN-STUDIO GMBH & CO. KG Poststr. 108 44809 Bochum Contact: Heinz-Jurgen Fritz, Manager Frank Imberger, Insolvency Manager Huestrasse 34 44787 Bochum Phone: 964 91-0 Fax: 964 91-33. BDL BAU: Gives Creditors Until Today to File Claims --------------------------------------------------- The district court of Darmstadt opened bankruptcy proceedings against BDL Bau und Dienstleistungs GmbH on Dec. 23, 2004. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Jan. 18, 2005 to register their claims with court-appointed provisional administrator Gotz Lautenbach. Creditors and other interested parties are encouraged to attend the meeting on Feb. 22, 2005, 9:00 a.m. at the district court of Darmstadt, Landwehrstrasse 48, 64293 Darmstadt at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: BDL BAU UND DIENSTLEISTUNGS GMBH Hardtring 55 63785 Obernburg Contact: Martina Schulz, Manager Gotz Lautenbach, Insolvency Manager Zeilweg 42 60439 Frankfurt Phone: 069/963761-130 Fax: 069/963761-145 BETON MARMORWERK: Claims Filing Period Expires Later this Month --------------------------------------------------------------- The district court of Essen opened bankruptcy proceedings against Beton- und Marmorwerk Pieper GmbH on Jan. 1, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Jan. 31, 2005 to register their claims with court-appointed provisional administrator Joseph Albers. Creditors and other interested parties are encouraged to attend the meeting on Feb. 21, 2005, 9:40 a.m. at the district court of Essen, Hauptstelle, Zweigertstr. 52, 45130 Essen at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: BETON- UND MARMORWERK PIEPER GMBH Buschgrundstr. 25 45894 Gelsenkirchen-Buer Rudolf Pieper, Manager Nienhofstr. 40 45894 Gelsenkirchen-Buer Joseph Albers, Insolvency Manager Von-der-Recke-Str. 5-7 45879 Gelsenkirchen Phone: 0209/179890 Fax: +492091485096 BODY & MIND: Administrator's Report Out March --------------------------------------------- The district court of Dusseldorf opened bankruptcy proceedings against Body & Mind Fitness- und Mentaltraining GmbH on Jan. 1, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 8, 2005 to register their claims with court-appointed provisional administrator Dr. Biner Bahr. Creditors and other interested parties are encouraged to attend the meeting on March 1, 2005, 9:15 a.m. at the district court of Dusseldorf, Hauptstelle, Muhlenstrasse 34, 40213 Dusseldorf at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: BODY & MIND FITNESS- UND MENTALTRAINING GMBH Bagelstr. 104 40479 Dusseldorf Contact: Hans Halik, Manager Kurzestr. 13 40213 Dusseldorf Dr. Biner Bahr, Insolvency Manager Jagerhofstrasse 29 40479 Dusseldorf CELANESE AG: 'B+' Corporate Credit Rating Affirmed -------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B+' rating and its recovery rating of '3' to US$2.8 billion of senior secured credit facilities of Dallas, Texas-based chemical producer BCP Crystal U.S. Holdings Corp., a subsidiary of Celanese Corp. The outlook is revised to positive from negative. Standard & Poor's also affirmed its 'B+' corporate credit ratings on BCP Crystal U.S. Holdings and its Germany-based subsidiary, Celanese AG. In addition, Standard & Poor's affirmed its 'B+' corporate credit and senior unsecured debt ratings on Acetex Corp., which is being acquired by Celanese Corp., and revised the outlook to positive from negative. The outlook revision reflects the potential that improving earnings, debt reduction, and Celanese Corp.'s financial policies would enable debt leverage measures to gradually strengthen to more-than-satisfactory levels within the next few years. The 'B+' and the '3' recovery rating indicate that lenders of the senior secured credit facilities can expect a meaningful (50%-80%) recovery of principal in the event of default. "The ratings incorporate the planned US$1 billion IPO of Celanese Corp. (parent company of BCP), the US$1.6 billion incremental increase in the senior credit facilities, as well as the pending acquisitions of Acetex Corp. for US$492 million and an emulsion polymer business for US$208 million," said Standard & Poor's credit analyst Wesley E. Chinn. "The acquisitions will result in a modest rise in the already aggressive debt load, so the continuation of the earnings uptrend is essential to improve overall credit quality," added Mr. Chinn. BCP Crystal's credit quality already incorporates considerable debt that resulted from borrowings in 2004 to fund the Blackstone Group's tender offer for the shares of Celanese -- a transaction valued at about $3.4 billion; and aggressive financial policies of the equity sponsors, as underscored by the two pending debt-financed acquisitions and dividend payouts. These weaknesses are only partially offset by the company's solid business profile as an integrated producer of diverse commodity and industrial chemicals, improving earnings, and the financial flexibility resulting from its global asset base. Significant product market shares and competitive cost structures support good positions in its major products, and a product portfolio that includes a balance of commodity, intermediate, and more specialized industrial chemical products serving a wide range of end markets. With annual pro forma revenues of about US$6.0 billion, Celanese ranks among the larger and more diversified global chemical businesses. 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: CELANESE AG Frankfurter Strasse 111 61476 Kronberg im Taunus Phone: +49-69-305-16000 Fax: +49-69-305-16006 Web site: http://www.celanese.com DIFFICULT TEXTILHANDELS: Creditors Claims Due Next Week ------------------------------------------------------- The district court of Frankfurt Oder opened bankruptcy proceedings against Difficult Textilhandels GmbH on Dec. 30, 2004. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Jan. 26, 2005 to register their claims with court-appointed provisional administrator Rolf Nacke. Creditors and other interested parties are encouraged to attend the meeting on March 2, 2005, 10:40 a.m. at the district court of Frankfurt Oder, Logenstrasse 13, 15230 Frankfurt Oder, at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: DIFFICULT TEXTILHANDELS GMBH Fontanestrasse 9 16227 Eberswalde Contact: Ralf Tomm, Manager Rolf Nacke, Insolvency Manager Gross-Berliner Damm 73 c 12487 Berlin DOMBRINK ALUMINIUM: Verification of Claims Set March ---------------------------------------------------- The district court of Bielefeld opened bankruptcy proceedings against Dombrink Aluminium Fassaden, Fenster + Turen GmbH & Co. KG on Jan. 1, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Jan. 24, 2005 to register their claims with court- appointed provisional administrator Dr. Norbert Kupper. Creditors and other interested parties are encouraged to attend the meeting on Feb. 14, 2005, 10:15 a.m. at the district court of Bielefeld, Gerichtstrasse 6, 33602 Bielefeld at which time the administrator will present his first report of the insolvency proceedings. The court will verify the claims set out in the administrator's report on March 9, 2005, 9:30 p.m. while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: DOMBRINK ALUMINIUM FASSADEN, FENSTER + TUREN GMBH & CO. KG Ringstr. 127 33378 Rheda-Wiedenbruck Contact: Heinrich Dombrink, Manager Kirchstr. 17 33378 Rheda-Wiedenbruck Dr. Norbert Kupper, Insolvency Manager Paderborner Str. 11 33415 Verl. HANDEL PRELLBERG: Creditors Meeting Set Mid-March ------------------------------------------------- The district court of Hamburg opened bankruptcy proceedings against Handel Prellberg mbH on Dec. 17, 2004. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 18, 2005 to register their claims with court-appointed provisional administrator Dirk Decker. Creditors and other interested parties are encouraged to attend the meeting on March 15, 2005, 9:30 p.m. at the district court of Hamburg, Insolvenzgericht, Weidestrasse 122d, 22083 Hamburg at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: HANDEL PRELLBERG MBH Beimoorstrasse 6 22081 Hamburg Contact: Dirk Prellberg, Manager Dirk Decker Speersort 4-6 20095 Hamburg Phone: 303010 Fax: 30301435 HEINRICH MOLLER: Bielefeld Court Appoints Insolvency Manager ------------------------------------------------------------ The district court of Bielefeld opened bankruptcy proceedings against Heinrich Moller GmbH & Co. Kommanditgesellschaft on Jan. 1, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 14, 2005 to register their claims with court-appointed provisional administrator Stefan Meyer. Creditors and other interested parties are encouraged to attend the meeting on March 7, 2005, 9:00 a.m. at the district court of Bielefeld, Gerichtstrasse 6, 33602 Bielefeld at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: HEINRICH MOLLER GMBH & CO. KOMMANDITGESELLSCHAFT Breite Str. 25 32257 Bunde Contact: Gerhard Soukup, Manager Stefan Meyer, Insolvency Manager Ostertorstr. 7 32312 Lubbecke HERMANN STEINWEG: Dortmund Court to Review Claims Mid-April ----------------------------------------------------------- The district court of Dortmund opened bankruptcy proceedings against Hermann Steinweg GmbH & Co. Kommanditgesellschaft Baumaschinenfabrik on Jan. 1, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 15, 2005 to register their claims with court-appointed provisional administrator Achim Thomas Thiele. Creditors and other interested parties are encouraged to attend the meeting on Feb. 25, 2005, 9:35 a.m. at the district court of Dortmund, Nebenstelle, Gerichtsplatz 1, 44135 Dortmund at which time the administrator will present his first report of the insolvency proceedings. The court will verify the claims set out in the administrator's report on April 15, 2005, 8:30 a.m. while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: HERMANN STEINWEG GMBH & CO. KOMMANDITGESELLSCHAFT BAUMASCHINENFABRIK Baaken 20 59368 Werne Contact: Klaus Steinweg, Manager Achim Thomas Thiele, Insolvency Manager Bronnerstrasse 7 44141 Dortmund Phone: 54110 Fax: 5411266 INFOBALL GMBH: Provisional Administrator Takes over Operations -------------------------------------------------------------- The district court of Dusseldorf opened bankruptcy proceedings against Infoball GmbH on Jan. 1, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 24, 2005 to register their claims with court-appointed provisional administrator Georg Kreplin. Creditors and other interested parties are encouraged to attend the meeting on March 17, 2005, 9:30 a.m. at the district court of Dusseldorf, Hauptstelle, Muhlenstrasse 34, 40213 Dusseldorf at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: INFOBALL GMBH Wallstr. 10 40213 Dusseldorf Contact: Dr. Stefan Volck, Manager Uhlandstrasse 45 40237 Dusseldorf Georg Kreplin, Manager Berliner Allee 21 40212 Dusseldorf ISC INFORMATIK: Calls First Creditors Meeting --------------------------------------------- The district court of Bonn opened bankruptcy proceedings against ISC Informatik Service und Consulting GmbH on Jan. 1, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 18, 2005 to register their claims with court-appointed provisional administrator Dirk Obermuller. Creditors and other interested parties are encouraged to attend the meeting on March 9, 2005, 12:00 noon at the district court of Bonn, -Insolvenzgericht-, Wilhelmstrasse 21, 53111 Bonn at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: ISC INFORMATIK SERVICE UND CONSULTING GMBH Poststrasse 67 53840 Troisdorf Wilfried Bienen, Manager Wolsdorfer Strasse 67a 53721 Siegburg Wolfgang Brandl, Manager Pastoratsweg 23 53757 Sankt Augustin Dirk Obermuller, Insolvency Manager Godesberger Allee 125-127 53175 Bonn Phone: 81 000 45 Fax: 81000820 KUNSTSTOFFE DR.: Under Bankruptcy Administration ------------------------------------------------ The district court of Essen opened bankruptcy proceedings against Kunststoffe Dr. Ing. Hans Jung GmbH on Jan. 1, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Jan. 31, 2005 to register their claims with court-appointed provisional administrator Rolf Otto Neukirchen. Creditors and other interested parties are encouraged to attend the meeting on Feb. 15, 2005, 9:20 p.m. at the district court of Essen, Hauptstelle, Zweigertstr. 52, 45130 Essen at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: KUNSTSTOFFE DR. ING. HANS JUNG GMBH Flozstr. 50 45356 Essen Contact: Hans Heinrich Bente, Manager Rolf Otto Neukirchen, Insolvency Manager Zweigertstr. 28-30 45130 Essen Phone: (0201) 438740 Fax: +492014387479 LEFFLER MESSE: Applies for Bankruptcy Proceedings ------------------------------------------------- The district court of Dusseldorf opened bankruptcy proceedings against Leffler Messe- und Ausstellungs-Gesellschaft mit beschrankter Haftung on Jan. 1, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 3, 2005 to register their claims with court-appointed provisional administrator Dr. Onno Klopp. Creditors and other interested parties are encouraged to attend the meeting on Feb. 24, 2005, 10:10 a.m. at the district court of Dusseldorf, Hauptstelle, Muhlenstrasse 34, 40213 Dusseldorf at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: LEFFLER MESSE- UND AUSSTELLUNGS-GESELLSCHAFT MIT BESCHRANKTER HAFTUNG Christinenstr. 11 40880 Ratingen Contact: Siegfried Leffler, Manager Pappelweg 53 40885 Ratingen Dr. Onno Klopp, Insolvency Manager Sternstrasse 58 40479 Dusseldorf LOEWE DRUCK: Bielefeld Bankruptcy Court Stays All Pending Suits --------------------------------------------------------------- The district court of Bielefeld opened bankruptcy proceedings against Loewe Druck und Verlag GmbH & Co. KG on Jan. 1, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 23, 2005 to register their claims with court-appointed provisional administrator Dr. Norbert Westhoff. Creditors and other interested parties are encouraged to attend the meeting on March 16, 2005 at the district court of Bielefeld, Gerichtstrasse 6, 33602 Bielefeld at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: LOEWE DRUCK UND VERLAG GMBH & CO. KG Industriestr. 33 33689 Bielefeld Contact: Werner Ringel, Manager Dr. Norbert Westhoff, Insolvency Manager Adenauerplatz 4 33602 Bielefeld MOLLER STAHLHOCHBAU: Creditors to Meet First Week of March ---------------------------------------------------------- The district court of Bielefeld opened bankruptcy proceedings against Moller Stahlhochbau GmbH on Jan. 1, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 14, 2005 to register their claims with court-appointed provisional administrator Stefan Meyer. Creditors and other interested parties are encouraged to attend the meeting on March 7, 2005, 10:00 a.m. at the district court of Bielefeld, Gerichtstrasse 6, 33602 Bielefeld at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: MOLLER STAHLHOCHBAU GMBH Breite Str. 25 32257 Bunde Contact: Gerhard Soukup, Manager Stefan Meyer, Insolvency Manager Ostertorstr. 7 32312 Lubbecke MOVIE SUN: Bankruptcy Proceedings Begin --------------------------------------- The district court of Dusseldorf opened bankruptcy proceedings against Movie Sun Activ Braunungsstudio GmbH on Jan. 3, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Jan. 31, 2005 to register their claims with court-appointed provisional administrator Winfrid Andres. Creditors and other interested parties are encouraged to attend the meeting on Feb. 4, 2005, 8:30 a.m. at the district court of Dusseldorf, Hauptstelle, Muhlenstrasse 34, 40213 Dusseldorf at which time the administrator will present his first report of the insolvency proceedings. The court will verify the claims set out in the administrator's report on Feb. 25, 2005, 8:30 a.m. while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: MOVIE SUN ACTIV BRAUNUNGSSTUDIO GMBH Hamburger Strasse 9 41540 Dormagen Contact: Johannes Rosellen, Manager Am Romerfeld 20 41541 Dormagen Dr. Winfrid Andres, Insolvency Manager Neuer Zollhof 3 40221 Dusseldorf OLYMPIC FILMTHEATERBETRIEBE: Succumbs to Bankruptcy --------------------------------------------------- The district court of Dusseldorf opened bankruptcy proceedings against Olympic Filmtheaterbetriebe Heinz Riech und Sohn GmbH & Co. KG on Dec. 30, 2004. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 5, 2005 to register their claims with court- appointed provisional administrator Friedrich Wilhelm Metzeler. Creditors and other interested parties are encouraged to attend the meeting on Feb. 9, 2005, 9:45 a.m. at the district court of Dusseldorf, Hauptstelle, Muhlenstrasse 34, 40213 Dusseldorf at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: OLYMPIC FILMTHEATERBETRIEBE HEINZ RIECH UND SOHN GMBH & CO. KG Graf-Adolf-Str. 96 40210 Dusseldorf Contact: Volker Riech, Manager Friedrich Wilhelm Metzeler, Insolvency Manager Rheinort 1 40213 Dusseldorf R. FALKENBERG: Creditors Have Until Mid-February to File Claims --------------------------------------------------------------- The district court of Bielefeld opened bankruptcy proceedings against R. Falkenberg GmbH & Co. KG on Jan. 1, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 15, 2005 to register their claims with court-appointed provisional administrator Hans-Peter Burghardt. Creditors and other interested parties are encouraged to attend the meeting on March 8, 2005, 10:00 a.m. at the district court of Bielefeld, Gerichtstrasse 6, 33602 Bielefeld at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: R. FALKENBERG GMBH & CO. KG Zu den Meerwiesen 10 32549 Bad Oeynhausen Contact: Frank Castrup, Manager Neulandstr. 42 33739 Bielefeld Hans-Peter Burghardt, Insolvency Manager Bunsenstr. 3 32052 Herford RIX TECHNOLOGY: Proofs of Claim Deadline Expires Next Month ----------------------------------------------------------- The district court of Hamburg opened bankruptcy proceedings against Rix Technology GmbH on Dec. 20, 2004. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Feb. 1, 2005 to register their claims with court-appointed provisional administrator Dr. Gideon Bohm. Creditors and other interested parties are encouraged to attend the meeting on Feb. 21, 2005, 12:00 noon at the district court of Hamburg, Insolvenzgericht, Weidestrasse 122d, 22083 Hamburg at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: RIX TECHNOLOGY GMBH Papenreye 63 22453 Hamburg Contact: Hsueh-Chun Chu, Manager Krohnskamp 15 22301 Hamburg Dr. Gideon Bohm, Insolvency Manager Bachstrasse 85a 22083 Hamburg Phone: 040/3208360 Fax: 040/32083636 RUHR-GERUSTBAU: Claims Verification Third Week of February ---------------------------------------------------------- The district court of Essen opened bankruptcy proceedings against Ruhr-Gerustbau GmbH on Jan. 3, 2005. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until Jan. 31, 2005 to register their claims with court-appointed provisional administrator Rolf Weidmann. Creditors and other interested parties are encouraged to attend the meeting on Feb. 21, 2005, 9:00 a.m. at the district court of Essen, Hauptstelle at which time the administrator will present his first report of the insolvency proceedings. The court will also verify the claims set out in the administrator's report during this meeting, while creditors may constitute a creditors committee and or opt to appoint a new insolvency manager. CONTACT: RUHR-GERUSTBAU GMBH Breloher Steig 5 45279 Essen Contact: Andreas Pelmer, Manager Rolf Weidmann, Insolvency Manager Einigkeitstr. 9 45133 Essen Phone: 0201/437760 Fax: 02014377620 ============= I R E L A N D ============= JSG FUNDING: Sells New Notes to Refinance Sub-notes Due 2013 ------------------------------------------------------------ Jefferson Smurfit Group on Friday priced EUR370 million equivalent of subordinated cash-pay notes to be issued by JSG Funding plc at 7.75%. Net proceeds will be used to refinance JSG Funding plc's existing 15.5% Subordinated Notes due 2013. The EUR300 million pay-in-kind notes to be issued by JSG Holdings plc was upsized to EUR325 million and priced at 11.5%, the low end of price talk. The net proceeds will be used to fund a return of capital to shareholders. Deutsche Bank AG and Citigroup acted as Joint Bookrunners and Underwriters. Jefferson Smurfit Group is one of the largest European-based integrated manufacturers of containerboard, corrugated containers and other paper-based products. Contacts Information Gary Chief Jefferson Beech Hill, Clonskeagh McGann Executive Smurfit Dublin 4. Officer Group 353-1-202-7000 Ian Chief Jefferson Curley Financial Smurfit Officer Group 353-1-202-7000 Mark K Capital smurfit@kcapitalsource.com Kenny Source 353-1-631-5500 Brian WHPR Bell 353-1-669-0030 The information contained herein is not for publication or distribution to persons in the United States of America. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold without registration thereunder or pursuant to an available exemption therefrom. Any public offering of securities of JSG Holdings plc or JSG Funding plc to be made in the United States would have to be made by means of a prospectus that would be obtainable from JSG Holdings plc or JSG Funding plc, as the case may be, and would contain detailed information about the issuer of the securities and its management, as well as financial statements. Neither this document nor the information contained herein constitutes an offer to sell or the solicitation of an offer to buy any securities. These materials do not constitute an offer of securities for sale in the United States; the securities may not be offered or sold in the United States absent registration or an exemption from registration. No money, securities or other consideration is being solicited, and, if sent in response to the information contained herein, will not be accepted. NOT FOR GENERAL RELEASE IN THE UNITED STATES * * * Standard & Poor's Ratings Services recently lowered its long- term corporate credit ratings on JSG Packaging Ltd. and related entities in the Jefferson Smurfit Group to 'B+' from 'BB-', following the group's announcement of a proposed EUR300 million (US$397 million) pay-in-kind (PIK) issuance. SOURCE: JEFFERSON SMURFIT GROUP Gary McGann, Chief Executive Officer Phone: +353 1 202 7000 or Ian Curley, Finance Director Phone: +353 1 202 7000 or K CAPITAL SOURCE Mark Kenny Phone: +353 1 631 5500 E-mail: smurfit@kcapitalsource.com or WHPR Brian Bell Phone: +353 1 669 0030 ========= I T A L Y ========= ALITALIA SPA: Low-fare Carriers Urge E.U. to Disallow State Aid --------------------------------------------------------------- The association of European low-fare carriers has asked the European Union to deny any proposal to provide government aid to ailing Italian flag carrier Alitalia, Reuters says. The group was reacting to an earlier announcement by the European Commission to launch an in-depth probe against Alitalia's restructuring plan. The investigation will try to find any traces of illegal state aid in the plan. Stefan Vilner, acting president of the European Low Fares Airline Association (ELFAA), said, "We trust that the Commission's investigation will conclude that the Italian government's planned restructuring involves serious amounts of illegal state aid and should therefore be rejected." Mr. Vilner added, "Italian taxpayers and visitors to Italy should not be forced to continue to pay for this failing dinosaur." The ELFAA acting president said the association plans to submit comments to the regulator to express its concerns. Mr. Vilner stressed that government aids to Alitalia would "distort" an Italian travel market, in which association members operate around 130 routes. The Italian government is willing to write off EUR1.6 billion in Alitalia debt and allocate around EUR300 million to finance redundancy payments. ELFAA is a group of European low-fare carriers commanding around 15% share of inter-European traffic. Its members include Air Berlin, Basiqair/Transavia, Flybe, Flying Finn, Hapag Lloyd Express, Ryanair, Sky Europe, Sterling Europe, Sverige Flyg and Volareweb. CONTACT: ALITALIA S.p.A. Viale A. Marchetti 111 00148 Rome, Italy Phone: +39 06 6562 2151 Fax: +39 06 6562 4733 Web site: http://www.alitalia.it PARMALAT U.S.A.: Parties Revise DIP Credit Agreement ---------------------------------------------------- Parmalat U.S.A. Corporation, Parmalat's U.S. debtor-affiliates, General Electric Capital Corporation, as agent and lender, Citibank, N.A., and the Official Committee of Unsecured Creditors agree to amend the terms of the DIP Credit Agreement to: (a) make a letter of credit facility under the DIP Agreement available to Farmland; and (b) allow Farmland to enter into a supplemental facility to obtain additional letters of credit. Farmland is required to provide deposits in the form of cash or letters of credit to certain "milk boards" of various states and to post letters of credit in certain other situations. Letter of Credit Facility The DIP Lenders agree to incur, at Farmland's request and for Farmland's account, Letter of Credit Obligations by causing Letters of Credit to be issued by GE Capital or another financial institution selected by or acceptable to GE Capital in its sole discretion. GE Capital will guarantee the Letters of Credit. If the Letter of Credit Issuer is a Lender, then GE Capital will not guarantee the Letters of Credit. Rather each Lender will purchase risk participations in all the Letters of Credit issued with GE Capital's written consent. The aggregate amount of all Letter of Credit Obligations will not at any time exceed the least of: (a) $15,000,000 -- the Letter of Credit Sublimit; (b) as of any date of determination, an amount equal to: (i) the aggregate Revolving Loan Commitment of all Lenders as of that date; minus (ii) (a) the sum of the aggregate Revolving Loans then outstanding and (b) the sum of the aggregate Letter of Credit Obligations then outstanding; and (c) the amounts required in the Approved Cash Budget. No Letter of Credit will have an expiry date that is more than 12 months following the date of issuance. A Letter of Credit, however, may provide for automatic extensions of its expiration date for one or more one-year periods, so long as the Issuer has the right to terminate the Letter of Credit at the end of each one-year period and no extension period extends past January 14, 2010. With respect to any Letter of Credit which has not expired prior to the termination of the DIP Credit Agreement, as amended, for any reason, the applicable Letter of Credit applications, master issuance agreements and the other provisions of the DIP Credit Agreement dealing with Letters of Credit will continue to apply to the Letters of Credit. The DIP Lenders will continue to provide up to $17,500,000 in financing to Farmland on a revolving credit basis. In the event that GE Capital or any DIP Lender will make any payment on or pursuant to any Letter of Credit Obligation, the payment will be deemed automatically to constitute a Revolving Credit Advance to the Borrower (y) regardless of whether a Default or Event of Default has occurred and is continuing and (z) notwithstanding the Debtors' failure to satisfy the conditions precedent. Each Lender will be obligated to pay its Pro Rata Share in accordance with the DIP Credit Agreement. The failure of any DIP Lender to make available to GE Capital for GE Capital's own account its Pro Rata Share of any Revolving Credit Advance or payment by GE Capital under or in respect of a Letter of Credit will not relieve any other Lender of its obligation to make available to GE Capital its Pro Rata Share, but no Lender will be responsible for the failure of any other Lender to make available the other Lender's Pro Rata Share of any payment. Maturity The DIP Lenders' commitment to incur Letter of Credit Obligations will expire on the earliest of: (a) January 14, 2005, as the date may be extended by GE Capital in its sole discretion; (b) the date of termination of the DIP Lenders' obligations to make Revolving Credit Advances or permit existing Loans to remain outstanding; and (c) the date of indefeasible prepayment in full by Farmland of the Loans, and the permanent reduction of all Revolving Loan Commitments to $0. All Loans to Farmland and all of the other Obligations of Farmland arising under the DIP Credit Agreement and the other Loan Documents will constitute one general obligation of Farmland secured, until the Termination Date, by all of the DIP Collateral. Cash Collateral If Farmland is required to provide cash collateral for any Letter of Credit Obligations, it will pay to GE Capital for the ratable benefit of itself and the DIP Lenders cash or cash equivalents equal to 105% of the maximum amount then available to be drawn under each applicable Letter of Credit outstanding for Farmland's benefit. GE Capital will hold the funds or Cash Equivalents in a cash collateral account. Farmland pledges and grants to GE Capital, on behalf of itself and the DIP Lenders, a security interest in all the funds and Cash Equivalents held in the Cash Collateral Account from time to time and all proceeds thereof, as security for the payment of all amounts due in respect of the Letter of Credit Obligations and other Obligations, whether or not then due. If any Letter of Credit Obligations will, for any reason, be outstanding on the Commitment Termination Date, Farmland will either: -- provide cash collateral; -- cause all the Letters of Credit and guaranties thereof, if any, to be canceled and returned; or -- deliver a stand-by letter or letters of credit in guaranty of the Letter of Credit Obligations. The stand- by letter of credit shall be of like tenor and duration - - plus 30 additional days -- as, and in an amount equal to 105% of, the aggregate maximum amount then available to be drawn under, the Letters of Credit to which the outstanding Letter of Credit Obligations relate. Fees and Expenses Farmland will pay GE Capital, for the benefit of the DIP Lenders, as compensation to the Lenders for the Letter of Credit Obligations incurred: * all costs and expenses incurred by Agent or any Lender on account of the Letter of Credit Obligations; and * for each month during which any Letter of Credit Obligation will remain outstanding, a Letter of Credit Fee equal to 4-1/2% per annum multiplied by the maximum amount available from time to time to be drawn under the applicable Letter of Credit. Farmland will also pay to any Letter of Credit Issuer, on demand, the fees (including all per annum fees), charges and expenses of the Issuer in respect of the issuance, negotiation, acceptance, amendment, transfer and payment of the Letter of Credit or otherwise payable pursuant to the application and related documentation under which the Letter of Credit is issued. Interest Farmland will pay interest to GE Capital, for the ratable benefit of the Lenders in accordance with the various Loans being made by each Lender, in arrears on each applicable Interest Payment Date, at the Index Rate plus 3.0%, per annum. "Index Rate" means, for any day, a floating rate equal to the higher of: (i) the rate publicly quoted from time to time by The Wall Street Journal as the "prime rate"; and (ii) the Federal Funds Rate plus 50 basis points per annum. The interest rates applicable to the Loans and the Letter of Credit Fees will be increased by 2% per annum above the rates of interest or the rate of the Fees otherwise applicable, in the event of a default by the Debtors. Interest at the Default Rate will accrue from the initial date of the Event of Default until that Event of Default is cured or waived, and will be payable upon demand. Stipulation The Debtors, the DIP Lenders, Citibank and the Committee further stipulate that nothing in the amendment to the DIP Credit Agreement and the Exiting Final DIP Order affects the claims, liens, rights and priorities granted to Citibank under the Receivables Purchase Agreement or any previous orders of the United States Bankruptcy Court for the Southern District of New York, including, without limitation, the Final DIP Order, nor expand or modify any Collateral securing any of the DIP Loans. The parties agree that all proceeds of the sale, collection or other disposition of the DIP Lenders' Postpetition Collateral will be applied by GE Capital to the reduction of the DIP Loans. If the proceeds from the sale, collection or other disposition of Postpetition Collateral exceed the DIP Loans, then, at the time of receipt of the proceeds, the amount by which the proceeds exceed the greater of (y) 105% of the amount of the commitment to make DIP Loans, or (z) 105% of the face amount of the letters of credit outstanding under the DIP Credit Agreement -- such amount up to $36,750,000 -- will be available for use by the Debtors as Cash Collateral in accordance with a Budget approved by GE Capital. GE Capital will hold the Postpetition Commitment Reserve as additional Postpetition Collateral until these events have occurred: (a) Indefeasible repayment in full of the DIP Loans; (b) Expiration or cancellation of all letters of credit issued under the DIP Credit Agreement; and (c) Termination of the commitments to make DIP Loans. If, after the commitment to make DIP Loans has been terminated and the Letters of Credit have expired or been cancelled, there remains Postpetition Collateral or proceeds thereof, after repayment in full of the DIP Loans, and the Prepetition Indebtedness to the extent of the Adequate Protection Liens and the Section 507(b) Claim, the Postpetition Collateral and the proceeds thereof will be retained by the Debtors, subject to further Court order. A full-text copy of the Amended DIP Credit Agreement is available for free at: http://bankrupt.com/misc/Amended_DIP_Agreement.pdf Headquartered in Wallington, New Jersey, Parmalat U.S.A. Corporation -- http://www.parmalatusa.com/-- generates more than EUR7 billion in annual revenue. The Parmalat Group's 40- some brand product line includes milk, yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company employs over 36,000 workers in 139 plants located in 31 countries on six continents. It filed for chapter 11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP represent the Debtors in their restructuring efforts. On June 30, 2003, the Debtors listed EUR2,001,818,912 in assets and EUR1,061,786,417 in debt. (Parmalat Bankruptcy News, Issue No. 39; Bankruptcy Creditors' Service, Inc., 215/945-7000) CONTACT: PARMALAT FINANZIARIA S.p.A. Legal Seat 43044 Collecchio (Pr) Via Oreste Grassi, 26 Administrative Seat 20122 Milan Piazza Erculea, 9 Phone: +39 02 806 8801 Fax: +39 02 869 3863 Web site: http://www.parmalat.net PARMALAT U.S.A.: Court Okays Farmland's Postpetition Financing -------------------------------------------------------------- Farmland Dairies, LLC sought and obtained the United States Bankruptcy Court for the Southern District of New York's authority to obtain supplemental postpetition financing pursuant to Sections 363 and 364 of the Bankruptcy Code by entering into a Supplemental Postpetition Credit Agreement dated Dec. 9, 2004, with General Electric Capital Corporation, as administrative agent, for itself and any lenders. The Court authorizes Farmland to grant mortgages, security interests, liens, and super-priority claims to GE Capital for the benefit of the Supplemental Postpetition Lenders, including a priority claim pursuant to Section 364(c)(1) and subordinated primary liens pursuant to Sections 364(c)(3) and 364(d). Farmland's Need for Additional Funding On March 30, 2004, the Court entered a final order: (1) authorizing Farmland to enter into a postpetition financing agreement and obtain postpetition financing; (2) authorizing Farmland to enter into an amendment to a receivables purchase agreement and sell interests in accounts receivable; and (3) providing adequate protection and granting liens, security interests and super-priority claims for both transactions. Pursuant to the Existing Final DIP Order, Farmland and its affiliates were authorized to borrow up to $35 million under a Secured Super-Priority DIP Credit Agreement dated February 23, 2004, from a consortium of lenders syndicated by GE Capital, as Agent. Parmalat U.S.A. Corp. and Milk Products of Alabama L.L.C., served as Guarantors. Farmland was also authorized to continue to sell receivables interests to Citibank, N.A., London Branch pursuant to a Parmalat Receivables Purchase Agreement dated as of November 2, 2000, among Farmland and Milk Products, as Sellers; Initial Servicers and Eureka Securitisation Plc, as Purchasers; and Citibank, N.A., London Branch, as Agent. Farmland anticipates emerging from Chapter 11 by the end of March 2005. Farmland, however, finds that an immediate and critical need exists to obtain additional credit to continue the operation of its business through the effective date of its Plan of Reorganization. Without additional credit, Farmland will not have enough cash to obtain milk in an amount sufficient to carry on its business, pay its payroll and other operating expenses, or obtain other goods and services needed to carry on its business in a manner that will avoid irreparable harm to its estate. Farmland currently has made cash deposits in the aggregate amount of approximately $5.2 million with various state regulatory milk boards, which deposits are required to be posted under state law to secure its payments for its milk supply in various states. In addition, Farmland has made a cash deposit of approximately $4.5 million with American Insurance Group, Inc., to secure payment of Farmland's deductible obligations on its workman's compensation and automobile insurance policies. Farmland would like to access the cash deposits and use the cash to fund the operations of its business. The Milk Boards have agreed to release the cash deposits they hold to Farmland if Farmland replaces them with letters of credit issued by a reputable lender. In addition, Farmland is in discussions with AIG to release a cash deposit it is holding if Farmland replaces it with a letter of credit. Farmland was also required to post a cash deposit or LC of approximately $2 million with the New York Milk Board. In addition, Farmland is currently required to prepay for milk purchased from Michigan milk suppliers and could improve its cash position by approximately $500,000 by posting a $1 million letter of credit with the Michigan Milk Board. Overall, Farmland could improve its cash position by approximately $12.2 million by posting LCs of approximately $12.7 million with the Milk Boards and AIG. Farmland is pursuing other means of generating additional cash to fund its operations. Under the terms of the Existing Final DIP Order, the U.S. Debtors are authorized to borrow and re- borrow postpetition loans, and required to repay those loans with the proceeds of any non-ordinary course transactions. Farmland currently anticipates that it will conduct one or more sales of non-core assets prior to the Plan Effective Date, the proceeds of which would be used to supplement the additional credit being provided. Nonetheless, the timing of those sales remains uncertain, and in any event, they will not occur in sufficient time to meet Farmland's cash needs for December 2004 and January 2005, giving rise to a short-term liquidity need that could not be met by the Existing Postpetition Loans. Stephen B. Selbst, Esq., at McDermott Will & Emery, LLP, in New York, the U.S. Debtors' Conflicts Counsel, relates that Farmland has been otherwise unable to obtain the required funds in the form of unsecured credit or unsecured debt allowable under Section 503(b)(1), as an administrative expense, as unsecured debt having the priority afforded by Section 364(c)(1), or as debt secured as described in Section 364(c)(2). The Supplemental Postpetition Agent, however, agreed to meet those short-term liquidity needs under the terms of the Supplemental Postpetition Financing Documents, but conditioned it on Farmland's willingness to repay the Supplemental Postpetition Loans by replacing or canceling the LCs in the event a sale or other liquidity event makes that replacement possible. To that end, the supplemental financing is contingent on the Court approving a stipulation designed to permit the issuance of LCs under the Existing Final DIP Order. $15,000,000 GECC Supplemental Financing The salient terms of the Supplemental Postpetition Credit Agreement are: (a) Letters of Credit * Farmland may request the issuance of LCs for the benefit of the Milk Boards and, to the extent approved by the Supplemental Postpetition Agent in its sole discretion, any other person, in an aggregate amount up to $15,000,000. * If the Supplemental Postpetition Credit Agreement terminates or matures prior to the expiration of any LC, that LC must be replaced or returned. To the extent that Farmland is unable to replace or return any of the LCs, the LC must be secured by a back-to-back LC or cash collateralized in an amount equal to 105% of the face amount of that LC. * The LCs may be replaced by Farmland at any time. * If Farmland receives proceeds of any non-ordinary course transaction in excess of $1,000,000 that are used to repay the Existing Postpetition Loans, Farmland may be required to replace the LCs with the ones issued under the Existing Postpetition Loans if sufficient availability under the Existing Postpetition Loans exists to replace one or more of the LCs. * Farmland may not agree to enter into an agreement to sell any assets outside the ordinary course of business, unless the buyer of those assets agrees to replace any LCs that have previously been delivered to any Milk Board to secure the supply of goods or services to that Facility, and unless that condition is waived by the Supplemental Postpetition Agent. (b) Use of Proceeds * The proceeds of the Supplemental Postpetition Loans or the collateral may only be used as permitted in the Existing Final DIP Order or in the Supplemental Postpetition Financing Documents. * All proceeds of the sale, collection or other disposition of Supplemental Postpetition Collateral are to be applied in accordance with the payment priorities set forth in the Existing Final DIP Order except that, following termination of the Supplemental Postpetition Credit Agreement, proceeds that would otherwise be made available to Farmland must first be used to repay or secure any obligations under the Supplemental Post- petition Credit Agreement. * Except for certain permitted professional fees and expenses, no expenses of administration of the Chapter 11 case or any future proceeding that may result from it are to be charged against the Supplemental Postpetition Collateral pursuant to Section 506(c) without the prior written consent of the Supplemental Postpetition Agent. * Farmland is enjoined from granting liens in the Supplemental Postpetition Collateral or any portion to any other parties pursuant to Section 364 or otherwise, which liens are senior, or on a parity with, the liens being granted to the Supplemental Postpetition Agent. * The Supplemental Postpetition Agent is not to be subject to the equitable doctrine of "marshaling" with respect to any of the Supplemental Postpetition Collateral. (c) Grant of Liens * The Supplemental Postpetition Loan will be secured by priming liens under Sections 364(c)(3) and 364(d) in all the Supplemental Postpetition Collateral, which includes substantially all of Farmland's assets, except certain leased equipment that is owned by the Prepetition Lessor and avoidance actions. * The Supplemental Postpetition Liens will be subject and subordinate to the Postpetition Liens, the Adequate Protection Liens, the Citibank Adequate Protection Liens, the Second Mortgages, the Junior Liens, and the Permitted Fee Expenses -- each as defined in the Existing Final DIP Order -- but will be senior and superior to all other existing liens. (d) Superpriority Claim * The Supplemental Postpetition Loans will be secured by an allowed claim in accordance with the provisions of Section 364(c)(1) with priority over all other administrative expenses, subject and subordinate only to the Permitted Fee Expenses, the Super-priority Claim, and the Section 507(b) Claim, the Citibank Adequate Protection Claim, and any Junior Reimbursement Claims -- each, as defined in the Existing Final DIP Order. * The Supplemental Super-priority Claim will not be payable from the proceeds of any avoidance actions. (e) Termination Event * Subject to the providing of notice, Farmland is not authorized to use cash collateral, request the issuance of LCs, or use any proceeds of the Supplemental Postpetition Collateral already received on the earliest to occur of any of these events if the Supplemental Postpetition Agent, in its sole discretion, terminates the Supplemental Postpetition Credit Agreement: (i) Material non-compliance by Farmland with any of the terms or provisions of the Supplemental Postpetition Financing Documents; (ii) Entry of an order authorizing the use of the Supplemental Postpetition Collateral in any way that is inconsistent with the Supplemental Postpetition Financing Documents, or to grant any liens or claims senior to the Supplemental Postpetition Liens or the Supplemental Super- priority Claim; (iii) Farmland files any Plan of Reorganization other than one providing for the indefeasible cancellation of the LCs; (iv) The entry of an order modifying the validity, priority, or extent of any liens of the Supplemental Postpetition Agent, or the validity and enforceability of the claims of the Supplemental Postpetition Agent without its consent; or (v) The occurrence of any absolute termination event or Citibank Absolute Termination Event under the Existing Final DIP Order. (f) Maturity Date * The maturity date for the Supplemental Postpetition facility will be the earliest of: (i) January 14, 2005; (ii) the consummation, pursuant to Section 363, of the sale of substantially all of Farmland's assets; (iii) the effective date of any plan of reorganization; (iv) conversion of the Chapter 11 case to a case under Chapter 7 of the Bankruptcy Code; or (v) dismissal of the Chapter 11 case. (g) Lenders' Exercise of Rights The automatic stay under Section 362(a) will be modified to allow the Supplemental Postpetition Agent to take certain actions with respect to Farmland's postpetition indebtedness following a Termination Event or the Maturity Date, provided, however, that the Supplemental Post-petition Agent must provide Farmland and the Official Committee of Unsecured Creditors with five business days' notice, during which time Farmland or the Committee may ask the Court to find that no Termination Event or Maturity Date has occurred. (h) Costs * Farmland is required to reimburse the Supplemental Post-petition Agent for its costs and expenses relating to the Supplemental Postpetition Credit Agreement. None of those costs and expenses will be subject to Court approval or the U.S. Trustee guidelines, and no interim or final fee application need be filed with the Court, provided, however, that Farmland, the U.S. Trustee, and the Committee will be provided with a summary of those fees and expenses 10 days prior to the payment. * Farmland, the Committee, or the U.S. Trustee may object to those fees, provided, however, that if no objection is filed within the 10-day period, then those fees must be paid. (i) Fees to Supplemental Postpetition Lenders * Farmland is required to pay a $237,500 arrangement fee to the Supplemental Postpetition Agent, deemed earned on the Agreement's effective date and due and payable on the earlier to occur of the Maturity Date or the Termination Date. * Farmland is required to pay a fee equal to 4-1/2% per year multiplied by the maximum amount available from time to time to be drawn under the applicable LC for each month during which any LC obligation is outstanding. Mr. Selbst notes that the January 14 Maturity Date under the Supplemental Postpetition Credit Agreement is the same as the maturity date for the Existing Postpetition Loan and the Receivables Purchase Agreement. Farmland anticipates, however, that each of those facilities will be further extended through the effective date of the Plan. Assuming these facilities are extended as anticipated, the funds made available from the Milk Boards and AIG as a result of the issuance of the letters of credit contemplated by the Supplemental Postpetition Credit Agreement should be sufficient to fund Farmland's operations through the confirmation and effective date of the Plan. Farmland does not anticipate a need for further postpetition financing. The Supplemental Postpetition Loan Agreement also provides that, except with respect to a carve-out for certain permitted expenses of professionals, the surcharge provisions of Section 506(c) will not be imposed on the Supplemental Postpetition Agent or Supplemental Postpetition Lenders or any of their property or collateral. Supplemental Financing Must Be Approved Farmland's management has concluded after appropriate investigation and analysis that the Supplemental Postpetition Credit Agreement was the best and only viable alternative available to it for supplemental postpetition financing. Given the complexity and immediacy of its financing needs, Farmland moved quickly to ensure that it would be able to negotiate an additional financing facility. There is no reason to believe that Farmland could have located a different postpetition lender offering terms more favorable than the Supplemental Postpetition Lenders, and certainly not before all of Farmland's limited cash resources were depleted by the search. In the absence of immediate access to cash and credit, Farmland's suppliers and third party vendors could refuse to continue to sell critical supplies to Farmland on reasonable trade terms, and absent which Farmland will be unable to meet its current obligations. In turn, many of Farmland's otherwise loyal customers could turn to competitors' products, thus eroding Farmland's valuable customer base and with it its going concern value. The Court modifies the automatic stay to the extent necessary to permit the Supplemental Postpetition Agent to retrieve, collect, and apply payments and proceeds in accordance with the terms and provisions of the Supplemental Postpetition Financing Documents. Headquartered in Wallington, New Jersey, Parmalat U.S.A. Corporation -- http://www.parmalatusa.com/-- generates more than EUR7 billion in annual revenue. The Parmalat Group's 40- some brand product line includes milk, yogurt, cheese, butter, cakes and cookies, breads, pizza, snack foods and vegetable sauces, soups and juices. The company employs over 36,000 workers in 139 plants located in 31 countries on six continents. It filed for chapter 11 protection on February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139). Gary Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal & Manges LLP represent the Debtors in their restructuring efforts. On June 30, 2003, the Debtors listed EUR2,001,818,912 in assets and EUR1,061,786,417 in debt. (Parmalat Bankruptcy News, Issue No. 39; Bankruptcy Creditors' Service, Inc., 215/945-7000) =================== L U X E M B O U R G =================== STOLT-NIELSEN: Wins Provisional Immunity from Antitrust Suits ------------------------------------------------------------- Stolt-Nielsen S.A. reports Friday that the United States District Court for the Eastern District of Pennsylvania "ORDERED that the United States of America is ENJOINED from indicting or prosecuting Stolt-Nielsen S.A., Stolt-Nielsen Transportation Group Ltd. and Richard B. Wingfield for any violations of the Sherman Act, 15 U.S.C. 1, up to and including January 15, 2003, in the parcel tanker industry involving transportation to and from the United States." In February 2004, Stolt-Nielsen sued in federal court to enforce the Amnesty Agreement it had entered with the Antitrust Division on January 15, 2003. Through this order, the Court enforces the Amnesty Agreement entered into by Stolt-Nielsen and the Department of Justice Antitrust Division on January 15, 2003. About Stolt-Nielsen S.A. Stolt-Nielsen S.A. (NASDAQNM: SNSA; Oslo Stock Exchange: SNI) is one of the world's leading providers of transportation services for bulk liquid chemicals, edible oils, acids, and other specialty liquids. The Company, through its parcel tanker, tank container, terminal, rail and barge services, provides integrated transportation for its customers. Stolt Sea Farm, wholly-owned by the Company, produces and markets high quality Atlantic salmon, salmon trout, turbot, halibut, sturgeon, caviar, bluefin tuna, and tilapia. (http://www.stolt- nielsen.com) CONTACT: STOLT-NIELSEN S.A. Reid Gearhart U.S. Phone: 1 212.922.0900 E-mail: rgearhart@dgi-nyc.com Valerie Lyon U.K. Phone: 44 20 7611 8904 E-mail: vlyon@stolt.com ===================== N E T H E R L A N D S ===================== ROYAL AHOLD: U.S. Unit Vendors Accused of Conspiracy ---------------------------------------------------- Nine people who worked for U.S. Foodservice's suppliers were charged of falsifying documents that helped Royal Ahold N.V.'s unit inflate earnings, Bloomberg News reports. Prosecutors said the accused conspired to create false accounting records. They signed letters to the unit's auditors overstating promotional allowances -- money that food makers paid to Ahold for promotions and prime shelf space. The scheme enabled the firm to inflate earnings by more than US$800 million. The nine includes staff from General Mills Inc. and Tyson Foods Inc. U.S. Attorney David Kelley said he expects "most, if not all, will plead guilty." The nine men surrendered to authorities Thursday. They face a maximum 5-year prison term once proven guilty. Ahold admitted in 2003 it overstated profit by EUR970 million (US$1.28 billion) mostly related to fraud involving promotional allowances at the U.S. unit. It settled the case with the U.S. S.E.C. without paying a fine after a 20-month investigation. CONTACT: ROYAL AHOLD N.V. Albert Heijnweg 1 1507 EH Zaandam Phone: +31-75-659-9111 Fax: +31-75-659-8350 Web site: http://www.ahold.com =========== N O R W A Y =========== DNO ASA: Rejects Former Adviser's Claims; Files Countersuit ----------------------------------------------------------- DNO A.S.A. has received legal claims amounting to approximately US$5 million plus damages from the U.S. company Cambridge Securities LLC. Cambridge advised DNO during its attempt to secure high yield bond financing in U.S.A. during the second half of 2003. The claim is filed with New York, United States as venue, and under U.S. jurisdiction. DNO is of the opinion that the claims are groundless and strongly rejects the claims. DNO has engaged U.S. legal counsel. DNO is currently preparing to file a claim in Norway and/or U.S.A. against Cambridge in the amount of approximately US$6 million for incurred losses plus damages related to the high yield bond process in 2003. DNO ASA 14 January 2005 CONTACT: DNO A.S.A. Helge Eide Managing Director Phone: (+47) 55 22 47 00/(+47) 23 23 84 80 =========== P O L A N D =========== ELEKTRIM-MEGADEX: Intends to Settle Rafaco Debt this Year --------------------------------------------------------- Elektrim-Megadex has promised to pay part of its liabilities to Rafaco, according to Warsaw Business Journal. "I cannot reveal any details, but the agreement was signed, which means that Rafako will not create reserves for our debt," said Tomasz Holc, president of Elektrim-Megadex. Polish newspaper Parkiet said the figure stands at PLN8 million. The report said the payment will be part in cash and part in real estate. As at the end of 2004, the firm's debt to Rafaco stood at PLN50 million, PLN43 million of which was related to investment in power plant ZE PAK, of which Elektrim-Megades is general contractor. Meanwhile, banks EBRD, EDC and WestLB, have recommended a loan to the firm to enable it to conclude investment in ZE PAK. BPH and Pekao will decide next week, while BRE Bank will make its decision by the end of the month. ZE PAK shareholders are also due to decide on January 24 whether to sell 9.7 million of shares to Polsat, Elektrim's largest shareholder. An approval will enable work to restart at the plant in April. =========== R U S S I A =========== AGRO-SERVICE: Sets Public Auction Friday ---------------------------------------- The insolvency manager of OJSC Agro-Service (BIC 043807606, TIN 4616002965, KPP 461601001) will sell its property on January 21, 2005, 2:00 p.m. Up for sale are four lots of vacant buildings and equipment. Total start price is RUB3,137,000. Preliminary examination and reception of bids are done from 3:00 p.m. to 6:00 p.m. on or before Jan. 19, 2005. To participate, bidders must deposit an amount equivalent to 20% of the starting price to settlement account number 40702810633310100081, correspondent account 30101810300000000606, in Kurskoye OSB 8596, Kursk on or before Jan. 19, 2005. CONTACT: AGRO-SERVICE Russia, Kursk region, Oboyan, Lenina Str. 94 Phone: (0712) 56-22-02 AUTO-TRACTOR: Court Brings in Insolvency Manager ------------------------------------------------ The Arbitration Court of Altay region commenced bankruptcy proceedings against Auto-Tractor Electro-Equipment after finding the close joint stock company insolvent. The case is docketed as A03-5804/04-B. Mr. T. Shmakov has been appointed insolvency manager. Creditors have until Feb. 10, 2005 to submit their proofs of claim to 656049, Russia, Barnaul, Post User Box 3503. A hearing is set on April 27, 2005 1:30 a.m. at 656015, Russia, Barnaul, Lenina Pr. 76. CONTACT: AUTO-TRACTOR ELECTRO-EQUIPMENT 658204, Russia, Altay region Rubtsovsk, Traktornaya Str. 21 Mr. T. Shmakov Insolvency Manager 656049, Russia, Barnaul Post User Box 3503 Phone: 8 (3852) 366065 BARLUKSKOYE: Bankruptcy Hearing Resumes April --------------------------------------------- The Arbitration Court of Irkutsk region commenced bankruptcy proceedings against Barlukskoye after finding the close joint stock company insolvent. The case is docketed as A19-12025/01- 38. Ms. E. Timofeeva has been appointed insolvency manager. hearing is set on April 27, 2005, 11.00 a.m. at the Arbitration Court of Irkutsk region, 664025, Russia, Irkutsk, Gagarina Avenue, 70, Room 319. Creditors have until Feb. 10, 2005 to submit their proofs of claim to: (a) BARLUKSKOYE 665334, Russia, Irkutsk region, Kuytunskiy region, Barluk (b) Ms. E. Timofeeva Insolvency Manager 664025, Russia, Irkutsk region, Post User Box 103 (c) THE ARBITRATION COURT OF IRKUTSK REGION 664025, Russia, Irkutsk region, Gagarina Avenue, 70 DIMITROVOGRAD-KHLEB: Auctioning RUB13.5 Million Worth of Assets --------------------------------------------------------------- OJSC Dimitrovograd-Khleb-Produkt (BIC 047311818, TIN 7302017998, KPP 730201001) will sell its properties on January 20, 2005, 12:00 noon at Russia, Ulyanovsk region, Dimitrovograd, Kuybysheva Str. 235. For sale are: (a) Lot 1: Constructions, buildings, machinery and equipment. Starting price is RUB11 million (inclusive of VAT); and (b) Lot 2: Constructions, buildings, machinery and equipment. Starting price is RUB3.5 million (inclusive of VAT). Preliminary examination and reception of bids are done from 9:00 a.m. to 4:00 p.m. on or before Jan. 19, 2005. To participate, bidders must deposit an amount equivalent to 15% of the starting price to settlement account number 40702810400000000818, correspondent account number 30101810700000000818. CONTACT: DIMITROVOGRAD-KHLEB-PRODUKT Russia, Ulyanovsk region, Dimitrovograd, Kuybysheva Str. 235 Phone: 8 84235-26701 BUSINESS-CLUB Bidding Organizer 105066, Russia, Moscow, Olkhovskaya Str. 45, Building 1, Office 4 ELIOTBANK: Moscow Court Opens Bankruptcy Proceedings ---------------------------------------------------- The Arbitration Court of Moscow commenced bankruptcy proceedings against Eliotbank after finding the joint stock company insolvent. The case is docketed as A40-49099/04-74-32B. Mr. R. Skvortsov has been appointed insolvency manager. Creditors may submit their proofs of claim to the insolvency Manager 115035, Russia, Moscow, M-35, Balchug Str. 2, Room 860. CONTACT: ELIOTBANK 121471, Russia, Moscow, Mozhayskoye Shosse, 25, Building 1 Mr. R. Skvortsov Insolvency Manager 115035, Russia, Moscow, M-35, Balchug Str. 2, Room 860 Phone: 747-11-93 GARMENT SLAVYANKA: Declared Insolvent ------------------------------------- The Arbitration Court of Saratov region commenced bankruptcy proceedings against Garment Factory Slavyanka after finding the limited liability company insolvent. The case is docketed as A- 57-208B/04-31. Mr. A. Volkov has been appointed insolvency manager. Creditors may submit their proofs of claim to 412311, Russia, Saratov region, Balashov, Entuziastov Str. 1. CONTACT: GARMENT FACTORY SLAVYANKA 412311, Russia, Saratov region, Balashov, Entuziastov Str. 1 Mr. A. Volkov Insolvency Manager 412311, Russia, Saratov region, Balashov, Entuziastov Str. 1 NIZHNEGOROD-GRAZHDAN: Insolvency Manager Takes over Helm -------------------------------------------------------- The Arbitration Court of Nizhniy Novgorod region commenced bankruptcy proceedings against Nizhnegorod-Grazhdan-Stroy after finding the open joint stock company insolvent. The case is docketed as A43-5095/02-18-130. Mr. E. Kotkov has been appointed insolvency manager. Creditors have until February 17, 2005 to submit their proofs of claim to 603159, Russia, Nizhniy Novgorod region, Post User Box 76. CONTACT: NIZHNEGOROD-GRAZHDAN-STORY 606440, Russia, Nizhniy Novgorod region Bor, Ostrovskogo Str. 14A Mr. E. Kotkov Insolvency Manager 603159, Russia, Nizhniy Novgorod region Post User Box 76 REINFORCED-CONCRETE 3: Succumbs to Insolvency --------------------------------------------- The Arbitration Court of Belgorod region commenced bankruptcy proceedings against Reinforced-Concrete Goods 3 after finding the open joint stock company insolvent. The case is docketed as A08-8980-02-14-24. Mr. E. Feoktistov has been appointed insolvency manager. Creditors may submit their proofs of claim to: (a) REINFORCED-CONCRETE GOODS 3 309070, Russia, Belgorod region, Yakovlevskiy, Stroitel, 3rd Zavodskaya Str. 4 (b) Mr. E. Feoktistov Insolvency Manager 308002, Russia, Belgorod-2, Post User Box 36 (c) THE ARBITRATION COURT OF BELGOROD REGION 308000, Russia, Belgorod region, Narodnaya Str. 135 THERMO-ENERGY: Under Bankruptcy Supervision ------------------------------------------- The Arbitration Court of Orel region commenced bankruptcy supervision procedure on CJSC Joined Thermo-Energy Enterprise (TIN 5753030483). The case is docketed as A48-7901/04-20B. Mr. V. Solomatin has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 302036, Russia, Orel, Komsomolskaya Str. 88, Office 11. A hearing is set on February 2, 2005. CONTACT: JOINED THERMO-ENERGY ENTERPRISE 302028, Russia, Orel region, Furtyeva Str. 27 Mr. V. Solomatin Temporary Insolvency Manager 302036, Russia, Orel region, Komsomolskaya Str. 88, office 11 Phone: (0862) 77-77-15 YUKOS OIL: Russians Forward Incriminating Data to Swiss Court ------------------------------------------------------------- The Russian Prosecutor-General's Office has provided Swiss authorities more materials on the case relating to the arrest of Yukos Oil's bank accounts, Itar-Taas reports. According to First Deputy Prosecutor-General Yuri Biryukov, the document includes a letter from the chief of the law department of Yukos, Dmitry Gololobov, to former Yukos senior executive Semyon Kukes. Mr. Biryukov cited the letter as saying the company was asking explanation from the Prosecutor-General's Office for the seizure of US$4.5 billion account of the fund Veteran founded by Yukos in Switzerland. The communication was seized during investigation on money laundering cases. Mr. Biryukov said: "The letter was dated March 17, 2004, when the case was already in court. That is, associates of YUKOS actively counteracted the investigation." The Basmanny Court ordered the seizure of the accounts in March. In July, Interfax News reported that the frozen accounts include that of Yukos' main stock exchange trader, Petroval, as well as Yukos lawyers Anton Drel and Vasiliy Aleksanyan. Investigators believe the accounts hold money that Yukos allegedly embezzled from the government, lawyer Genrikh Pavda told the news agency. The Russian General Prosecutor's Office believes the deposits amounted to US$5 billion. The accounts are included in the assets confiscated by Russia to force the oil company to pay its US$3.4 billion tax for 2000. CONTACT: OAO NK YUKOS 31A, Dubininskaya St. 115054 Moscow, Russia Phone: +7-95-232-3161 Fax: +7-95-232-3160 Web site: http://www.yukos.com Investor Relations Alexander Gladyshev Phone: +7 095 788 00 33 E-mail: investors@yukos.ru Press Service Alexander Shadrin Phone: +7 095 785-08-55 E-mail: pr@yukos.ru International Information Department Hugo Erikssen Phone: + 7 095 540-63-13 E-mail: inter@yukos.ru YURYUZANSKIY ENGINEERING: Sets Proofs of Claims Deadline -------------------------------------------------------- The Arbitration Court of Chelyabinsk region commenced bankruptcy proceedings against Yuryuzanskiy Engineering Plant after finding the open joint stock company insolvent. The case is docketed as A76-13745/03-36-487. Mr. A. Naydenov has been appointed insolvency manager. Creditors have until Feb. 10, 2005 to submit their proofs of claim to 454091, Russia, Chelyabinsk, Svobody Str. 76-2. CONTACT: YURYUZANSKIY ENGINEERING PLANT Russia, Chelyabinsk region, Yuryuzan, Varganova Str. 1 Mr. A. Naydenov Insolvency Manager 454091, Russia, Chelyabinsk region, Svobody Str. 76-2 =========== S W E D E N =========== SAAB AB: Rumors of Potential Closure Swirl ------------------------------------------ A business review on how much investment does General Motor's Saab subsidiary need is fanning fears the plant could be closed, despite denial from the parent company. According to the Financial Times, the Swedish car brand could be axed "if the heavy investment required to revive it is deemed unjustified." Yet the report also quoted General Motors executives and people familiar with the study saying there was little chance of this happening. General Motors introduced two new models to the Saab line-up last year to improve sales, but chairman and chief executive Rick Wagoner recently admitted that the new 9-2X small Saab had not met sales targets. According to chief financial officer John Devine the question is not whether the brand has a future, but how big. He also mentioned the problem of currency risk. Saab's Trollhattan factory badly suffered from the strength of the Swedish krona. It has been losing money for the past 10 years, and General Motors is in recent months gradually taking control of its manufacturing, engineering and most design decisions. The review is to be completed within three months. General Motors is also deciding on whether to build its new Opel Vectra saloon and the replacement for the Saab 9-3 at the Trollhattan factory. The plant is vying for the work alongside Opel's Russelsheim. Trade unions fear the lose of these contracts might force the closure of the Trollhattan factory, which employs 6,000 people. General Motors denies this. The Saab factory has a pending contract to produce small Cadillac, but it is thought the cars would not generate enough demand to keep the plant open. CONTACT: SAAB AB Broderna Ugglas gata SE-581 88 Linkoping Phone: +46-13-18-00-00 Fax: +46-13-18-00-11 Web site: http://www.saab.se ===================== S W I T Z E R L A N D ===================== SWISS INTERNATIONAL: Launches New Zurich-New York Jet Service ------------------------------------------------------------- Swiss International on Sunday introduced its new Boeing Business Jet service on the route between Zurich and New York/ Newark. This attractive product is especially tailored to the needs of business travelers. The Boeing 737-800 in service on this route, which is operated by PrivatAir, can accommodate 56 passengers. From, Sunday, January 16, the Boeing Business Jet operates as flight LX 18/19 six times weekly in both directions between Zurich and New York/Newark. This service gives Swiss an attractive, competitive product that is specially designed to suit business travelers. A carefully selected schedule and swift boarding and de-boarding are among its features. With only 56 seats on board these flights, Swiss passengers can look forward to a distinctive club-like atmosphere. Other comfort-oriented elements are lie-flat seats and a generous seat pitch of 152 cm (60 inches). The in-flight meal and beverage product corresponds to that offered in Swiss Business on long- haul flights. PrivatAir operates the Boeing 737-800 on behalf of Swiss. The in-flight product is designed by Swiss while the aircraft itself flies in PrivatAir livery. PrivatAir is responsible for aircraft, crew, maintenance and insurance. Swiss looks after all commercial aspects such as fuel, handling, catering and all marketing activities. With 27 years of experience in the business aviation industry, PrivatAir, headquartered in Geneva, is the ideal partner for Swiss in this operation. Schedule LX018 12345-7 ZRH 16:45 EWR 20:15 LX019 12345-7 EWR 21:45 ZRH 11:30 The Airbus A330 hitherto used on the Zurich - New York / Newark route will no longer be deployed. Daily flights connecting Zurich and Geneva with New York JFK remain unchanged. CONTACT: SWISS INTERNATIONAL Corporate Communications P.O. Box, CH-4002 Basel Phone: +41 (0) 848 773 773 Fax: +41 61 582 35 54 E-mail: communications@swiss.com Web site: http://www.swiss.com =========================== U N I T E D K I N G D O M =========================== CI SECURITIES: Creditors Meeting Set First Week of February ----------------------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF CI Securities Limited (In Liquidation) Notice is hereby given that a meeting of creditors of CI Securities Limited will be held on Friday, February 4, 2005, 12:30 p.m. in Royal Court Library, Royal Court House, St. Peter Port, Guernsey for the purposes of the examination and verification of the Joint Liquidators' financial statement and creditors claims and preferences by the Commissioner of the Court and to fix a date for the distribution of the Company's assets. Proxies should be lodged with me during the meeting CONTACT: Patrick Joseph Brazzill Andrew James Offen Joint Liquidators COLLINS STEWART: Sets Deadline for Filing of Claims --------------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Collins Stewart No. II Fund PCC Limited (In Liquidation) Notice is hereby given that the members of Collins Stewart No. II Fund PCC Limited, which registered office is located at Trafalgar Court, Les Banques, St Peter Port, Guernsey, Channel Islands, unanimously passed these special resolutions on December 30, 2004: (a) That Collins Stewart No. II Fund PCC Limited be placed into liquidation; and (b) That Saline Nominees Limited be appointed sole liquidator of the company. All persons having claims against or who are indebted to the company are hereby requested to send details thereof in writing to the liquidator on or before February 10, 2005 CONTACT: SALINE NOMINEES LIMITED Liquidator Trafalgar Court Les Banques St. Peter Port Guernsey COSTAIN GROUP: Wins Major Construction Project in Mexico -------------------------------------------------------- China Harbour-Costain*, an international 50-50 joint venture, has been awarded a US$170 million contract by Sempra LNG's Energia Costa Azul to design and construct the breakwater for a liquefied natural gas (LNG) receipt terminal at Baja California in Mexico. The 600-meter breakwater will serve to protect the receipt terminal's LNG off-loading jetty. Commencing in January 2005 and lasting 35 months, construction of the breakwater will involve towing pre-cast concrete caissons, which will then be sunk to sit on a prepared granular bed. In all, there will be 16 caissons, each being 36 meters in length, 26 meter high and weighing about 9000 tons. There will also be 14,140 pre-cast concrete armor blocks weighing up to 43 tons each, with rock/ granular material of some 930,000 tons. At the peak of construction 800-1,000 workers could be on site. The hiring of local, qualified workers will be a priority. "This is a significant contract award for the China Harbour- Costain joint venture," said Stuart Doughty, Costain Chief Executive. "We have a formidable combination of expertise and experience and we are delighted to be involved in such a prestigious global project. "It is testament to the strength of the joint-venture team that the China Harbour-Costain construction methodology was judged by the client as the best technical and environmental solution. We defeated strong competition from countries such as the U.S.A., France and Italy and have now established China Harbour-Costain as a considerable force in the international market." - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - * China Harbour (CHEC), one of China's largest construction groups and Costain Group PLC, the international construction and civil engineering company, formed a global alliance in 2004 to pursue opportunities in international markets, specifically in the area of marine development and port construction. The complementary skills base of the CHEC and Costain Joint Venture makes it a global leader in marine works. CHEC has one of the largest marine fleets in the world, whilst Costain has an international brand with high caliber civil engineering experience and a global reputation for quality. - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - * * * In September, Fitch Ratings affirmed Costain Group's ratings at Senior Unsecured 'B' and Short-term 'B'. The Outlook is Stable. The ratings reflect Costain's established market position in the U.K. engineering and construction sector. They also reflect management's progress in adopting a more risk-averse approach in its business model and towards meeting previously stated financial targets of 15% annual sales growth and 3% pre-tax profit margins by 2006. The ratings also reflect Costain's weak financial profile, evident in low profitability, negative operational cash flow, a reliance on profits from joint ventures in overseas property development, together with a continued sizeable net pension liability. CONTACT: COSTAIN GROUP PLC Phone: 01628 842 444 Stuart Doughty, Chief Executive Charles McCole, Finance Director Graham Read, Public Relations COLLEGE HILL Phone: 020 7457 2020 Mark Garraway Matthew Gregorowski COSTAIN GROUP: Confident of Meeting Full-year Forecast ------------------------------------------------------ Trading Update Costain Group PLC will be releasing preliminary results for the year ended 31 December 2004 on Wednesday 16 March 2005. The Chairman commented: "We are pleased to announce the continued progress of the Group in the second half of the year and that the results for the year will be in line with expectations. At the end of the year the forward order book is in excess of GBP1 billion." Of particular note was the success in water asset management, securing 5 to 10 year contract wins with Thames, Yorkshire, Welsh Water and Severn Trent and negotiations are continuing with United Utilities and Southern Water. Turnover in the Building Division continues to increase with a large number of high profile schemes including ISIS -- another complex high-tech scientific facility at Harwell, Kingston Hospital, Ealing Schools and the St. Martins-in-the-Fields re-development. Our new financial year has got off to an encouraging start with the announcement of the first contract win by our joint venture with China Harbour. This contract, valued at US$170 million over 3 years with the construction of the breakwater for a liquefied natural gas (LNG) receipt terminal, is a significant step forward for both the joint venture and for Costain as the Group rebuilds its international portfolio of major contract work. Our Building Division, as construction partner to Serco Group plc, has also been selected as preferred bidder for the Ministry of Defense's (MoD) Defence Academy Campus Integrator contract in Shrivenham, Wilts. Costain will be responsible for the management and integration of the design and build of a new center of excellence worth a potential GBP85 million. Stuart Doughty, Chief Executive, commented: "Costain made further, and significant, progress during the year. These recent contract wins and those in the utilities sector underline the recognition that Costain is a leading contractor, having significantly de-risked the business and focusing on key areas of operation in both building and civil engineering. I look forward to presenting the outcome for the year." 13 January 2005 CONTACT: COSTAIN GROUP PLC Phone: 01628 842444 Stuart Doughty, Chief Executive Charles McCole, Finance Director COLLEGE HILL Phone: 020 7457 2020 Mark Garraway Matthew Gregorowski DALEOAK PROPERTY: Shareholders Opt to Liquidate Firm ---------------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Daleoak Property Limited Notice is hereby given that at an Extraordinary General Meeting of the members of Daleoak Property Limited, duly convened and held on January 10, 2005, these special resolutions were duly passed: (a) That the Company be placed in voluntary liquidation; and (b) That Mr. Stafford Drake Challis of P.O. Box 344, Longue Hougue House, St Sampson, Guernsey be and is hereby appointed liquidator. All persons having claims against and all persons indebted to Daleoak Property Limited are required to submit details thereof to the liquidator on or before February 22, 2005. CONTACT: S. D. Challis, Liquidator P.O. Box 344 Longue Hougue House St. Sampson, Guernsey DUPADA LIMITED: Liquidators Take over Helm ------------------------------------------ IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Dupada Limited (In Liquidation) Notice is hereby given that on January 5, 2005, these special resolutions was passed by the holders of the entire issued share capital of Dupada Limited: (a) That Dupada Limited be placed in voluntary liquidation; and (b) That Mr. Geoffrey Allez should be appointed as sole liquidator for the purpose of winding up the affairs of the company. All persons having claims against or indebted with the company are hereby requested to send details thereof to the liquidator on or before January 26, 2005. CONTACT: G. W. ALLEZ, Liquidator Babbe Le Pelley Tostevin 18-20 Smith Street, St. Peter Port Guernsey, GY1 4BL FEDERAL-MOGUL: Proponents Insist on Estimation of T&N Claims ------------------------------------------------------------ As previously reported, Federal-Mogul Corporation and its debtor-affiliates, the Official Committee of Unsecured Creditors, the Official Committee of Asbestos Claimants, the Official Committee of Equity Security Holders, the Legal Representative of Future Asbestos Claimants, and JPMorgan Chase Bank, as Administrative Agent for the Debtors' prepetition lenders, asked the United States Bankruptcy Court for the District of Delaware to estimate the claims of T&N Pension Trustee Limited and Alexander Forbes Trustee Services Limited relating to the T&N Pension Scheme for the purpose of: -- voting on the Third Amended Joint Plan of Reorganization; and -- distributions in the Debtors' cases on account of their claims. But the T&N Trustees argued that the Plan Proponents' request is aimed at an English creditor's English-law-governed claims against English Debtors in plenary English insolvency proceedings. According to the T&N Trustees, the Plan Proponents have acknowledged that the Third Amended Joint Plan does not affect the sole and exclusive jurisdiction of the English Court in conducting the administration of the U.K. Debtors under English law and in relation to any Scheme of Arrangement or Company Voluntary Arrangement affecting any of the U.K. Debtors. The Proposed Plan further states that if the U.K. Debtors were liquidated, the Pension Trustees' claims would be treated in accordance with applicable English insolvency laws. Thus, T&N Pension Trustees asked the Court to deny the Plan Proponents' Estimation Motion. * * * The Plan Proponents point out that with respect to the U.K. Debtors, the Third Amended Plan provides in: -- Section 8.16.1 that the Plan Proponents will work toward an agreement with the Administrators to recommend parallel Schemes of Arrangement and Voluntary Arrangements or toward Consensual Marketing Procedures; -- Section 8.16.2 that in case the efforts stated in Section 8.16.1 do not succeed, the Plan Proponents will solicit proxies from creditors to direct the Administrators to recommend parallel Schemes of Arrangement and Voluntary Arrangements or discharge the U.K. administration Proceedings; and -- Section 8.16.4 that holders of claims against the U.K. Debtors, other than holders of Asbestos Personal Injury Claims, will receive no distributions under the Plan, but instead will receive any and all distributions on account of their claims pursuant to the U.K. administration proceedings in accordance with U.K. insolvency laws. Representing JPMorgan Chase Bank, one of the Plan Proponents, Mark D. Collins, Esq., Richards, Layton & Finger, P.A., in Wilmington, Delaware, relates that only if the efforts provided in Sections 8.16.1 and 8.16.2 fail will the Non-Consensual Marketing Procedures be implemented and only then will the provisions of Section 8.16.4 be operative. The T&N Pension Trustees concluded and would like the Bankruptcy Court to conclude that the provisions of Section 8.16.4 will be operative, so that they can boot strap into the argument that the Court need not and should not estimate their claims in aid of confirmation, Mr. Collins remarks. Mr. Collins tells Judge Lyons that the Plan Proponents will continue to proceed pursuant to Sections 8.16.1 and 8.16.2 of the Plan and expect to continue to do so after the Plan is confirmed. Estimation Will Aid Confirmation An estimation of the T&N Pension Trustees' claims is necessary to aid the Court at the Confirmation Hearing in its: -- feasibility determinations; and -- determinations whether the Unsecured Claims classes have accepted the Plan. In arguing that the liquidation of their claims will not unduly delay the bankruptcy proceedings, the Pension Trustees presented an incomplete picture of the time period required to wind up the T&N Pension Scheme, if indeed that is their eventual course of action. Even assuming a wind-up occurs, the process for winding up the T&N Pension Scheme and liquidating the T&N Pension Trustees' claims will only just have begun in early 2005, contrary to the T&N Pension Trustees' assertions in the Objection. "It would be extraordinary, if not impossible, for the T&N Pension Trustees to have received pricing quotes and to have identified an insurer willing to provide annuities sufficient to cover the liabilities of the Pension Scheme at any point in the near future," Mr. Collins points out. The Plan Proponents believe that even in the event of a wind-up, the T&N Pension Trustees' claims will need to be appropriately discounted and estimated to account for the likelihood that the T&N Pension Trustees would have to purchase annuities over a protracted period of time. The T&N Pension Trustees' assertion that a wind-up of the Pension Scheme is the appropriate course and should be assumed in determining their claim at the Confirmation Hearing is fraught with inconsistencies and contradictions. The T&N Pension Trustees have taken several positions that are irreconcilable: (1) The T&N Pension Trustees would run the Pension Scheme as a closed fund, rather than winding it up, if they received from the Debtors an amount commensurate with what they expect to receive in a controlled realization; (2) While the Administrator is performing a controlled realization, the T&N Pension Trustees will wind up the Pension Scheme; and (3) A wind-up is independent of commercial reasonableness and is mandated by U.K. law. The T&N Pension Trustees said that a wind-up is mandated by U.K. law if the T&N Pension Trustees receive a lesser value from the Plan Proponents than that provided by the "Let it Run" proposal. But the T&N Pension Trustees refused to take an alternative settlement offer to the U.K. Court to ask for directions as to whether the Plan Proponents' monetary proposal was sufficient to avoid a wind-up. The T&N Pension Trustees would like to debate critical legal and factual issues related to their alleged $1.5 billion claim through an exchange of letters. The only way to get to the bottom of the issues plaguing a determination of the T&N Pension Trustees' claims is through a formal discovery and briefing process, Mr. Collins says. In addition, the absence of a claims bar date does not indicate that the request for estimation is not necessary or warranted, Mr. Collins notes. A bar date, as it pertains to the T&N Pension Trustees' claims, would serve no purpose because the Plan Proponents are fully aware of the existence of the claims. However, the estimation proceeding is necessary to aid confirmation and to force the parties' hands in an effort to achieve resolution. U.K. Pension Law v. U.S. Bankruptcy Law The primary problem of the T&N Pension Trustees' primary obligor, Turner & Newall, is its U.S. asbestos exposure. Mr. Collins reiterates that the only resolution of that problem requires a Section 524(g) trust mechanism and that is only available through the insolvency proceeding with the level of support from asbestos claimants required by Section 524(g). That level of support requires the support of U.S. asbestos claimants whose claims constitute 95% of total asbestos claims against T&N. Accordingly, Mr. Collins asserts, the U.S. bankruptcy process is not the source of the problem, but the solution. The Debtors have not asked the Court to displace UK pension law in estimating the T&N Pension Trustees' claims under U.S. bankruptcy law. Instead, in accordance with applicable U.S. bankruptcy principles, the Plan Proponents ask the U.S. Court to make a determination as to the allowability and amount of those claims. The Pension Trustees allege that their claims can only be estimated after a Scheme of Arrangement or Voluntary Arrangement is promoted or liquidation occurs. However, they have sought to stop the promotion of any Scheme of Arrangement and Voluntary Arrangements that parallel the Plan unless the Plan Proponents meet their demands. Full Hearing on Estimation is a Must The T&N Pension Trustees make a number of arguments that require a full and fair hearing on the estimation of their claims. By this motion, the Plan Proponents seek procedures to address each of these issues so that the Plan Proponents and the Pension Trustees can fully evaluate the claim after discovery and briefing and the Court can carefully consider the arguments and evidence presented by each party. "If the T&N Pension Trustees desire a candid exchange of information then they should welcome a discovery process where questions are answered under oath and documents are exchanged. And as 'fiduciaries who have no pecuniary interest in augmenting the size of their claims,' the T&N Pension Trustees should have no objection to a court process that determines their claims," Mr. Collins contends. For these reasons, the Plan Proponents ask Judge Lyons to overrule the T&N Pension Trustees' objection to claims estimation. Headquartered in Southfield, Michigan, Federal-Mogul Corporation -- http://www.federal-mogul.com/-- is one of the world's largest automotive parts companies with worldwide revenue of some $6 billion. The Company filed for chapter 11 protection on October 1, 2001 (Bankr. Del. Case No. 01-10582). Lawrence J. Nyhan, Esq., James F. Conlan, Esq., and Kevin T. Lantry, Esq., at Sidley Austin Brown & Wood, and Laura Davis Jones, Esq., at Pachulski, Stang, Ziehl, Young, Jones & Weintraub, represent the Debtors in their restructuring efforts. When the Debtors filed for protection from their creditors, they listed $10.15 billion in assets and $8.86 billion in liabilities. (Federal-Mogul Bankruptcy News, Issue No. 70; Bankruptcy Creditors' Service, Inc., 215/945-7000) NORTHERN FOODS: Christmas Trading Disappoints --------------------------------------------- At our interim results in November, we stressed the challenges we faced in our critical third quarter trading period due to the competitive environment. Christmas trading did not meet expectations. Sales levels overall in the Chilled Division in December were lower than expected, reflecting in particular our trading with Marks & Spencer. Sales Data % change vs 2003 13 weeks to 13 weeks to 13 weeks to 30 Jun 2004 30 Sep 2004 1 Jan 2005 Underlying sales +1.6 +5.6 +1.3 Underlying sales to five largest customers +1.5 +4.5 +2.3 Northern Foods 5 largest customers are Marks & Spencer, Tesco, Asda, Sainsburys and Morrisons. Underlying sales exclude the effect of disposals and acquisitions As at the half-year, we continued to trade a little ahead of the equivalent 2003/4 profits. However, the more difficult Christmas trading and the continuing tough business environment mean that we now expect the profit before tax and exceptional items for the year ending 31 March 2005 will be around GBP80 million. This result compares to a 53-week period in 2003/4 of GBP86 million. Northern Foods is in the process of significant change and a clear strategy to support this was outlined in November. We continue to make good progress on our short-term priorities, such as factory rationalization, divisional restructuring and central procurement. Although the market place remains challenging and highly competitive, we are confident that the actions already taken and those planned will have medium and long- term benefits for the Group. There will be a conference call for investors and analysts at 11h00 a.m. Details will be available from Lara Meinertzhagen at lara.meinertzhagen@hsgcg.com or 020 7796 4133, after 9h30 a.m. CONTACT: NORTHERN FOODS Pat O'Driscoll, Chief Executive Ian Ellis, Head of Finance Phone: 01482 325432 (Anna Coghlan) GCG HUDSON SANDLER Michael Sandler/Jessica Rouleau Phone: 020 7796 4133 PITTARDS PLC: Sells Remaining Factory Site for GBP3.15 Mln ---------------------------------------------------------- Pittards plc announced the sales of both of its former Raw Material Division's factory sites in Scotland. The sale of the factory in Langholm, near Dumfries, for GBP0.12 million was completed on 17 December 2004. Conditional contracts have been exchanged for the sale of the Division's remaining former factory site at Kinghorn, Fife, for a price of GBP3.15 million. Completion of the sale is conditional upon receipt of an outline planning consent satisfactory to the purchaser. Sheepskin production at the Langholm factory ceased in October 2004 and at Kinghorn in January 2002. The Kinghorn site, which is approximately 25 acres in area, has a book value of GBP0.64 million. Approximately 10 acres is zoned for residential development in the Kirkcaldy Area Local Plan. An application for outline planning consent in conformity with the Local Plan was submitted in August 2003. The proceeds of these sales will be primarily applied to the reduction of bank borrowings. The difficult trading conditions to which we referred in our announcement on 3 November continued throughout the second half of 2004. The international market for leather is not expected to recover much before the second quarter of 2005. Pittards plc produces technically advanced leather for many of the world's leading brands of gloves, shoes, luxury leathergoods and sports equipment. CONTACT: PITTARDS PLC Sherborne Road, Yeovil Somerset BA21 5BA, England Phone: +44 (0) 1935 474321 Fax: +44 (0) 1935 427145 E-mail: glovenquire@pittards.com Web site: http://www.pittardsleather.co.uk Knowsthorpe Road, Cross Green Leeds LS9 0NP, England Phone: +44 (0) 113 2495737 Fax: +44 (0) 113 2481812 E-mails: shoenquire@pittards.com leathergoods@pittards.com Web site: http://www.pittardsleather.co.uk ROYAL & SUNALLIANCE: Pegs Storm Claims at GBP30 Million ------------------------------------------------------- Royal & SunAlliance Insurance Group plc announces a preliminary estimate of GBP30 million, net of reinsurance recoveries, for claims arising from the recent storms and floods in the U.K. and Scandinavia. Some degree of flood and storm damage is expected in the winter season, and the impact on the first quarter results will be dependent on weather for the rest of the period. Royal & SunAlliance's staff provided immediate on-the-ground assistance and rapid claims processing: U.K. Royal & SunAlliance/MORE TH>N loss adjusters were the first insurers on the ground in Carlisle, arriving within 24 hours. Operating out of the Royal & SunAlliance Emergency Response Unit, a 10-strong team coordinated customer advice, fast-tracked emergency payments and motor claims, and ensured that all known affected personal and commercial customers were contacted within 5 days. Scandinavia The efficiency of Codan and Trygg-Hansa's call centers and claims handling staff and infrastructure ensured that despite the large volume of calls no customer had to wait more than 33 seconds to reach a qualified claims handler. CONTACT: ROYAL & SUN ALLIANCE INSURANCE GROUP PLC 9th Floor, 1 Plantation Place, 30 Fenchurch Street London EC3M 3BD Phone: +44 (0)20 7111 7134 Analysts Helen Pickford Phone: +44 (0) 20 7111 7212 Press Press Phil Wilson-Brown Phone: +44 (0) 20 7111 7047 Julius Duncan (Finsbury) Phone: +44 (0) 20 7251 * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Shareholders Total Working Equity Assets Capital Ticker (US$MM) (US$MM) (US$MM) ------ ----------- ------- -------- AUSTRIA ------- Libro AG (111) 174 (182) Rhi AG (531) 1,471 129 BELGIUM ------- Carestel N.V. CSTL.BR (3) 178 (68) City Hotels CITY.BR (7) 210 (15) Real Software REAL.BR (202) 176 (17) Sabena S.A. (86) 2,215 (297) CZECH REPUBLIC -------------- Ceskomoravska Kolben & Danek Praha Holding (89) 192 (2,186) DENMARK ------- Elite Shipping (28) 101 19 FRANCE ------ Acces Industrie (32) 124 (63) Arbel PA.ARB (50) 213 (47) Banque Nationale de Paris Guyane BNPG (41) 352 N.A. BSN Glasspack (101) 1,151 179 Bull S.A. BULP.PA (912) 902 (38) Compagnie Francaise de l'Afrique Occidentale (65) 256 21 Compagnies de Machines Bull (139) 137 (6) Charbo De France (3,872) 4,738 (2,868) Euro Computer System (110) 682 377 Grande Paroisse S.A. (927) 629 330 Immob Hoteliere (68) 233 29 LVL Medical Group LVLM.PA (8) 149 (6) Pneumatiques Kleber S.A. (34) 480 139 SDR Centrest (132) 252 N.A. SDR Picardie (135) 413 N.A. Soderag (3) 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 (0) 134 10 Usines Chausson (23) 249 35 GERMANY ------- Agor AG DOOG.BE (8) 392 (126) Dortmunder Actien-Brauerei DABG (13) 118 (29) F.A. Guenther & Son AG GUSG (8) 111 N.A. Glunz AG GLUG (0) 428 (17) Kamps AG KMPSF.PK (93) 1,075 (61) Kaufring AG KAUG (19) 151 (51) Mannheimer AG (15) 879 N.A. Marbert AG MTBG (13) 144 (50) Nordsee AG (8) 195 (31) Primacom AG PRIG (106) 1,264 (50) Rinol AG RLIG (25) 178 (53) Schaltbau Hold SLTG (38) 150 (26) Senator Entertainment AG SENGk.BE (153) 126 (148) SinnLeffers AG WHGG (4) 454 (145) Spar Handels- AG SPAG (442) 1,433 (234) VBH Holding AG VBHG (54) 337 (80) Vivanco Gruppe (55) 131 (31) GREECE ------ Delta Ice Cream (3) 183 (14) ITALY ----- Binda S.p.A. BND (11) 129 (20) Cirio Finanziaria S.p.A. (422) 1,583 (396) Credito Fondiario e Industriale S.p.A. (200) 4,218 N.A. Finpart S.p.A. (31) 793 (248) Gruppo Coin S.p.A. GC (111) 974 (97) Lazio S.p.A. LAZI (57) 495 (330) Olcese S.p.A. OLCI.MI (13) 180 (64) Technodiffusione Italia S.p.A. TDIFF.PK (90) 152 (24) LUXEMBOURG ---------- Millicom International Cellular S.A. MICC (59) 1,523 4 Oriflame Cosmetics S.A. ORI.ST (44) 378 97 NETHERLANDS ----------- Baan Company N.V. BAAN (8) 610 46 Numico N.V. NUMC (558) 2,030 83 United Pan-Euro Air UPC (5,266) 5,180 (8,730) NORWAY ------ Pan Fish ASA (24) 514 327 Petroleum-Geo Services PGO (32) 2,963 (5,250) POLAND ------ Gruppo Media Capital SGPS S.A. GMPTF.PK (21) 399 (85) Mostostal Zabrze MECOF.PK (6) 227 (366) RUSSIA ------ Kamchatskenergo (107) 291 (7,319) Zil Auto (147) 349 (9,974) SPAIN ----- Altos Hornos de Vizcaya S.A. (116) 1,283 (278) Avanzit S.A. AVZ.MC (117) 457 (247) Santana Motor S.A. (46) 223 41 Sniace S.A. (16) 136 (34) SWITZERLAND ----------- Kaba Holding AG KABZN (19) 569 372 Swisslog Holding-R SLOG (98) 354 151 TURKEY ------ Dyo Boya Fabrikalari Sanayi Ve Ticare (11) 106 (66) Nergis Holding (24) 125 22 Yasarbank (948) 623 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) British Energy Plc BGY (5,342) 3,438 229 British Nuclear Fuels Plc (4,248) 40,326 977 Center Parcs (UK) Group Plc CQY (77) 423 (227) Compass Group CPG (668) 2,972 (298) Costain Group COST (65) 396 (4) Danka Bus System DNK.L (51) 585 82 Dawson Holdings DWN.L (29) 142 (32) Dignity Plc DTY.L (148) 485 (89) Easynet Group ESY.L (45) 323 38 Electrical and Music Industries Group EMI (1,318) 3,472 (293) Euromoney Institutional Investor Plc ERM.L (113) 236 (66) Gallaher Group GLH (492) 6,304 116 Gartland Whalley (11) 145 (8) Global Green Tech Group (156) 408 (18) Heath Lambert Fenchurch Group Plc (10) 4,109 (10) HMV Group Plc HMV (130) 997 (56) Intertek Testing Services ITRK (64) 508 77 Invensys PLC (559) 5,885 882 IPC Media Ltd. (685) 254 16 Jarvis Plc JRVS.L (26) 1,176 (182) Jessops Plc JSP.L (8) 297 7 Lambert Fenchurch Group (1) 1,827 3 Lattice Group (1,290) 12,410 (1,228) Leeds United LDSUF.PK (73) 144 (29) M 2003 Plc (2,204) 7,205 (756) Manchester City (17) 154 (21) Misys Plc MSY (334) 934 44 Mytravel Group MT.L (1,118) 2,551 (533) Orange Plc ORNGF (594) 2,902 7 PD Ports Plc PDP.L (282) 361 0 Premier Foods Plc PFD.L (565) 1,105 34 Probus Estates Plc PBE.L (28) 113 (35) Regus Plc RGU.L (46) 367 (60) Rentokil Initial Plc RTO (1,092) 3,245 (68) Saatchi & Saatchi SSI (119) 705 (41) Seton Healthcare (11) 157 0 SFI Group (108) 178 (162) Telewest Communications Plc TLWT (3,702) 7,581 (5,361) Virgin Mobile Holdings Plc VMOB.L (101) 278 (80) 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 2005. 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 * * *