/raid1/www/Hosts/bankrupt/TCREUR

/raid1/www/Hosts/bankrupt/TCREUR_Public/050318.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 Friday, March 18, 2005, Vol. 6, No. 55 Headlines B E L A R U S BELPROMSTROIBANK: 'CCC+/C' Ratings; Stable Outlook Affirmed G E R M A N Y AEW: Deadline for Creditors' Claims Nears AIRELLE COSMETIC: Cedes Control to Court-appointed Administrator BAUTENSCHUTZ ZECHMEISTER: Succumbs to Insolvency EINFELDT & CO.: Administrator's Report Out May F & W WEIMAR: Interim Administrator Takes over Operations HOLZ-LAUX: Declares Bankruptcy INNENAUSBAU GOTHA: Erfurt Court Brings in Administrator INTERTAINMENT AG: Two Parties in Film Budget Row Opt to Settle IVU TRAFFIC: Revenues Down 10% to EUR26.8 Million JACO TRANSPORTE: Proofs of Claim Due Later this Month KACKER BAU: Schwering Court Appoints Interim Administrator RUNGIS EXPRESS: Seeks Extension of Wage Subsidies SCHMIDT ERDBAU: Proofs of Claim Due Next Month WALTER BAU: Strabag Takeover Gets European Commission's Nod I T A L Y ALITALIA SPA: Cabin Crew Ground Flights Anew R U S S I A CHARA: Proofs of Claim Deadline Nears FSG UEZ-STROYMONOLITH: Bankruptcy Proceedings Begin KOSTROMSKAYA: Gives Creditors Until April 19 to File Claims KROTOVSKIY: Declared Insolvent NIVA: Irkutsk Court Hires N. Kuzakov as Insolvency Manager OLENINSKIY LES-PROM-KHOZ: Last Day for Filing Claims April 19 SHARLYKSKOYE GRAIN: Succumbs to Insolvency TERYAEVSKOYE: Volgograd Court Opens Bankruptcy Proceedings US-123: Moscow Court Appoints N. Egorova Insolvency Manager WARM CITY: Undergoes Bankruptcy Supervision Procedure S W E D E N SKANDIA INSURANCE: Reaches Settlement with Ex-chairman SKANDIA INSURANCE: Chairman Justifies Predecessor's Reprieve S W I T Z E R L A N D SWISS INTERNATIONAL: Merger with Lufthansa a Done Deal U K R A I N E ARTI: Proofs of Claim Deadline March 23 CONTINENT-GROUP: Names Mihajlo Shkabrij Liquidator DNIPROENERGOBUD: Declared Insolvent ECO-DNIPRO: Insolvency Manager to Temporarily Oversee Business FASTIVBUD: Creditors' Claims Due Next Week KOMUNENERGOMASHEKSPORT: Under Bankruptcy Supervision LUNARIYA: Lviv Court Opens Bankruptcy Proceedings PENTAGRO: Proofs of Claim Deadline Expires Next Week UKRBUDTEH: Gives Creditors Until Next Week to File Claims U N I T E D K I N G D O M AAA AA: Plumbing Company Calls in Administrator from Ward & Co. ADVANCED TECHNOLOGY: Hires Fanshawe Lofts as Administrator A E VOSS: Calls in Liquidator AI PRODUCT: Appoints Joint Administrators from Begbies Traynor ASSEMBLY INDUSTRIES: Appoints Begbies Traynor Administrator AUTOMOTIVE PRODUCTS: Automotive Manufacturer in Administration BEARINGPOINT EUROPE: Hires Deloitte & Touche to Liquidate Assets BOWERBROOK LIMITED: Joint Liquidators from PwC Move in BRIDE AND BEAUTY: Closure Leaves 80 Brides Without Gowns CAMAS CONSULTANTS: Liquidator Takes over Helm CELSIUS LTD.: Laboratory Supplier Calls in Administrator CHESTERTON INTERNATIONAL: In Administrative Receivership DCM CAPITAL: Hires Ernst & Young as Liquidator DRIVE & SURVIVE: Hires Administrators from Kroll DUGDALE DAVIES: Calls in Administrators from DTE Leonard Curtis EAGLE COMPUTERS: Creditors Appoint Liquidator EASTSTONE LIMITED: Creditors Meeting Set Later this Month FOOD HAUL: Names Tenon Recovery Administrator GADGET SHOP: Boardroom Tiff Sends firm into Administration GASKELL PLC: De-lists After Failure to Refinance GMD MOULDINGS: Members Decide to Wind up Firm INTERNAL WINDOW: Construction Company Goes into Administration MARCONI CORPORATION: To Meet Union Over Job-cuts Next Week MEE COM: Joint Administrators from Begbies Traynor Move in NEW DRIVING: Hires Administrators from Kroll Limited NTL INC.: Sale of Irish Arm Near OPM MANAGEMENT: Names Liquidator from PKF PASHMINA RESTAURANT: Meeting of Creditors Set Later this Month SAMACO LIMITED: Administrators from Begbies Traynor Move in SBH CRUSHING: Hires Administrator from Houghton Stone Business SILVER MINDS: DCD Trade Services Appoints Receiver SO FRESH: National Westminster Bank Appoints Receiver UNITY-BRISTOL LIMITED: Names B N Jackson Norton Administrator VAN BENTLEY: Claims Filing Period Expires Later this Month WEST HYDE: Calls in Joint Administrators from Begbies Traynor ********* ============= B E L A R U S ============= BELPROMSTROIBANK: 'CCC+/C' Ratings; Stable Outlook Affirmed ----------------------------------------------------------- Fitch Ratings affirmed Belpromstroibank's (BPB) ratings at Long- term 'CCC+', Short-term 'C', Individual 'E' and Support '5'. The Outlook for the Long-term rating remains Stable. The Long-term, Short-term and Support ratings are underpinned by potential support from the Belarusian government in case of need. However, this support cannot be relied upon, given the weak state of government finances. The Individual rating reflects BPB's small size, high, albeit falling, concentration levels, especially in its loan book, and moderate performance, which is negatively affected by a high cost base. It also takes into account the bank's modest and falling capitalization and significant weaknesses in its operating environment. In addition, it reflects the risks associated with the bank's rapid loan book growth, a low level of loan loss reserves and the bank's susceptibility to state interference. However, Fitch notes that BPB's quality of revenues is reasonable. Its retail deposit base is also well developed and enjoys a state guarantee, which could support stability in times of stress. Although BPB has an 80-year history, its present form only dates back to 1991, when it was established from what was then the Belarus branch of the Soviet Industry & Construction Bank (Promstroibank). It is one of the six Belarusian banks considered by the authorities to be systemically important. After a Q404 share issue, the state directly owns around 66% of BPB, meaning that the bank enjoys a state guarantee on all retail deposits. BPB primarily services corporate customers, particularly state and private enterprises operating in the energy and manufacturing sectors. In recent years it has also enjoyed some success in attracting retail deposits. CONTACT: FITCH RATINGS Vladlen Kuznetsov, Moscow Phone: +7 095 956 9901 Alexei Kechko, London Phone: +44 20 7417 4301 Media Relations: Campbell McIlroy, London Phone: +44 20 7417 4327 ============= G E R M A N Y ============= AEW: Deadline for Creditors' Claims Nears ----------------------------------------- The district court of Rostock opened bankruptcy proceedings against AEW -- Autoverwertung Rostock GmbH on Feb. 16. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 31, 2005 to register their claims with court-appointed provisional administrator Reiner Linck. Creditors and other interested parties are encouraged to attend the meeting on May 11, 2005, 10:00 a.m. at the district court of Rostock, Zochstrasse, 18057 Rostock, Raum: 330 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: AEW -- AUTOVERWERTUNG ROSTOCK GMBH Eckhard Wohlgemuth, Manager Werkstrasse 2, 18069 Rostock-Marienehe Reiner Linck, Administrator Paulstrasse 44, 18055 Rostock AIRELLE COSMETIC: Cedes Control to Court-appointed Administrator ---------------------------------------------------------------- The district court of Munster opened bankruptcy proceedings against Airelle Cosmetic GmbH on Feb. 28. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until April 1, 2005 to register their claims with court-appointed provisional administrator Erich Holzemann. Creditors and other interested parties are encouraged to attend the meeting on April 22, 2005, 10:30 a.m. at the district court of Munster Gebaudeteil Eingang B, Gerichtsstrasse 2 - 6, 48149 Munster, EG, Saal 13 B 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: AIRELLE COSMETIC GMBH Gersteinstrasse 7b, 59227 Ahlen Contact: Peter Graf, Manager Wiedehofpweg 1, 59071 Hamm Erich Holzemann, Administrator Goethestr. 2, 59065 Hamm Phone: 02381/924200 Fax: +4923819242020 BAUTENSCHUTZ ZECHMEISTER: Succumbs to Insolvency ------------------------------------------------ The district court of Heilbronn opened bankruptcy proceedings against Bautenschutz Zechmeister GmbH on Feb. 21. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 31, 2005 to register their claims with court-appointed provisional administrator Dr. Eric Silcher. Creditors and other interested parties are encouraged to attend the meeting on April 21, 2005, 10:30 a.m. at the district court of Heilbronn, 74072 Heilbronn, Rollwagstr. 10A, Erdgeschoss, Saal 4 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: BAUTENSCHUTZ ZECHMEISTER GMBH Contact: Alfred Zechmeister, Manager Muhlstr. 40, 71739 Oberriexingen Dr. Eric Silcher, Administrator Bismarckstr. 6, 74072 Heilbronn Phone: 07131/91903-0 EINFELDT & CO.: Administrator's Report Out May ---------------------------------------------- The district court of Frankfurt am Main opened bankruptcy proceedings against Insolvenzverfahren Einfeldt & Co. KG on Feb. 8. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until April 15, 2005 to register their claims with court-appointed provisional administrator Stefan Rieger. Creditors and other interested parties are encouraged to attend the meeting on May 10, 2005, 9:40 a.m. at Saal 2, Geb. F, Klingerstr. 20, 60313 Frankfurt 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: EINFELDT & CO. KG Halle 1, Berger Strasse 155, 60385 Frankfurt/Main Stefan Rieger, Administrator Zeilweg 42, 60439 Frankfurt am Main Phone: 069/963761130 F & W WEIMAR: Interim Administrator Takes over Operations --------------------------------------------------------- The district court of Erfurt opened bankruptcy proceedings against F&W Weimar Bautrager GmbH on Feb. 22. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until April 1, 2005 to register their claims with court-appointed provisional administrator Marcello Di Stefano. Creditors and other interested parties are encouraged to attend the meeting on May 3, 2005, 11:00 a.m. at Raum 12, Amtsgericht Erfurt, Rudolfstr. 46, 99092 Erfurt 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: F & W WEIMAR BAUTRAGER GMBH Bernd Keil, Manager Carl-v.-Ossietzky-Strasse 67A, 99423 Weimar Marcello Di Stefano, Administrator Jonny-Schehr-Str. 1, 99085 Erfurt HOLZ-LAUX: Declares Bankruptcy ------------------------------ The district court of Landau in der Pfalz opened bankruptcy proceedings against Holz-Laux GmbH & Co KG on Feb. 23. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until April 8, 2005 to register their claims with court-appointed provisional administrator Martin Wiedemann. Creditors and other interested parties are encouraged to attend the meeting on May 9, 2005, 10:15 a.m. at Zimmer 225, Amtsgericht, Marienring 13, 76829 Landau in der Pfalz 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: HOLZ-LAUX GMBH & CO KG Am Kleinwald 47, 76863 Herxheim Contact: Willi Laux, Manager Helmut Laux, Manager Martin Wiedemann, Administrator O 3, 11+12, 68161 Mannheim Phone: 0621/16680 INNENAUSBAU GOTHA: Erfurt Court Brings in Administrator ------------------------------------------------------- The district court of Erfurt opened bankruptcy proceedings against Innenausbau Gotha GmbH on Feb. 21. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 20, 2005 to register their claims with court-appointed provisional administrator Dr. H. Hess. Creditors and other interested parties are encouraged to attend the meeting on April 18, 2005, 2:30 p.m. at the district court of Erfurt, Justizzentrum, Rudolfstr. 46, 99092 Erfurt, Saal 12 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: INNENAUSBAU GOTHA GMBH Thomas Schmidt, Manager Mohrenberg 01, 99867 Gotha Dr. H. Hess, Administrator Barbarossahof 4-5, 99092 Erfurt INTERTAINMENT AG: Two Parties in Film Budget Row Opt to Settle -------------------------------------------------------------- Film Finances Inc. and Film Finances (1998) Canada Ltd. have agreed to pay an undisclosed sum to Intertainment AG to settle a legal dispute over film budgets in the U.S. The companies will also assign their claims against the insolvent film producers Franchise Pictures and subsidiaries of Franchise to the estate, and thereby withdraw from the list of creditors. Intertainment is the biggest unsecured creditor in the Franchise insolvency proceedings. It has further been agreed that International Motion Pictures Corporation Ltd., Hong Kong, will withdraw its arbitration claim against Intertainment in connection with the film "Tracker." Until the settlement was concluded, Film Finances Inc. and Film Finances Canada (1998) Ltd., together with Comerica Bank and executive managers of the bank, were among the parties opposed to the claims asserted by Intertainment in an arbitration proceeding in the U.S. Intertainment is asserting claims amounting at least US$100 million. The opposing parties are demanding from Intertainment payments totaling US$70 million. Intertainment will pursue the arbitration proceedings involving claims against Comerica Bank and its managers. Intertainment was awarded a total of US$121.7 million in the successful fraud trial won against the American film producer Franchise Pictures and other parties in June 2004. CONTACT: INTERTAINMENT AG Osterfeldstrasse 84 85737 Ismaning Deutschland Contact: Investor Relations Phone: +49 (0)89 21699-0 Fax: +49 (0)89 21699-11 Web site: http://www.intertainment.de E-mail: investor@intertainment.de IVU TRAFFIC: Revenues Down 10% to EUR26.8 Million ------------------------------------------------- IVU Traffic Technologies AG made enormous strides forward during the 2004 business year in its efforts to restructure the company, as revealed by the annual report, which was adopted March 2, by the Supervisory Board of the Berlin software company. The EUR26.8 million in revenues were 10% lower than in the previous year and thus weaker than anticipated. At the same time, IVU made deep cuts in its costs, which improved the operating result, leaving it at a mere -EUR400,000. IVU estimates that it will earn EUR1 million to EUR2 million in operating profit not considering severance payments. Personnel expenditures over the 12-month period dropped another 14% to EUR16.7 million, which is a EUR2.8 million reduction. However, the entire cost of the redundancy measure for the current year had already been allocated in 2004, which means that the profit and loss statement shows a personnel cost figure that is roughly EUR1 million higher. In addition to personnel costs, 2004 also saw a EUR1.4 million reduction in other operating expenses, i.e. the company's costs for property and equipment, which amounts to 21%. Unlike the operating result, both EBIT and the consolidated profit remained significantly negative, due to high depreciations, particularly in the area of services on the company's own account that were activated in the past. In addition, a one-time goodwill depreciation amounting to EUR3.3 million was written off, which burdens the profit and loss statement. "Considering the difficult economic climate that has left the public sector and especially local governments short on cash, we put up a good fight in 2004, even if we are not particularly happy with our revenue figures," said Prof. Dr. Ernst Denert, Chairman of the Executive Board of IVU. The revenue shortfall forced the company to make further cuts in personnel costs. As a result, 38 employees were laid off in 2005, 27 of them in Berlin and 11 in Aachen. Reductions in personnel expenses due to the layoffs will run to EUR1.4 million in 2005 and EUR2.1 million in 2006. However, the full impact of this measure on liquidity will not be felt until 2006, with only EUR0.4 million applying to 2005. The company's target is to keep 2005 sales at least at the same level as in the previous year; there is a good chance that this target will be exceeded and reach around EUR28-29 million. This situation, along with the redundancies and lower material costs, would result in an operating result between one and two million euros not considering severance payments, enough to finance necessary investments. The volume of orders at the beginning of 2005 is good, with new orders covering about 60% of the sales planned for 2005 as of 31 December 2004. As of 31 Dec. 2004, IVU held EUR1.6 million in cash, EUR2.7 million in available lines of credit, while another EUR0.9 million had been furnished as a deposit for guarantees. If the company earns between EUR28 million and EUR29 million in revenues, it will achieve sufficient liquidity in 2005. IVU Traffic Technologies AG is a leading supplier of IT systems for planning, operating and optimizing transport and logistics processes. Over 25 years of experience developing hardware and software systems for more than 300 public transport companies has also made IVU the market leader for IT solutions in other segments: monitoring truck fleets, setting up retail networks in geo-marketing, election processing. This is IVU's approach to transportation and beyond. The full copy of the financial results is available free of charge at http://www.ivu.de. CONTACT: IVU TRAFFIC TECHNOLOGIES AG Bundesallee 88, 12161 Berlin Germany Phone: +49 (0)30 85906-800 E-mail: gerd.henghuber@ivu.de Web site: http://www.ivu.de Contact: Gerd Henghuber Head of Corporate Communications JACO TRANSPORTE: Proofs of Claim Due Later this Month ----------------------------------------------------- The district court of Dusseldorf opened bankruptcy proceedings against Jaco Transporte GmbH on Feb. 28. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 31, 2005 to register their claims with court-appointed provisional administrator Friedrich Knoop. Creditors and other interested parties are encouraged to attend the meeting on April 21, 2005, 8:35 a.m. at the district court of Dusseldorf, Hauptstelle, Muhlenstrasse 34, 40213 Dusseldorf, 3. OG Altbau, A 341 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: JACO TRANSPORTE GMBH Eibenweg 9, 40764 Langenfeld Contact: Heiderose Amalie Jacobi, Manager Eibenweg 9, 40764 Langenfeld Friedrich Knoop, Administrator Robertstrasse 3, 40229 Dusseldorf KACKER BAU: Schwering Court Appoints Interim Administrator ---------------------------------------------------------- The district court of Schwerin opened bankruptcy proceedings against Kacker Bau GmbH on Feb. 18. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until March 24, 2005 to register their claims with court-appointed provisional administrator Dirk Decker. Creditors and other interested parties are encouraged to attend the meeting on April 25, 2005, 10:45 a.m. 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: KACKER BAU GMBH Contact: Guido Kacker, Manager Cambser Strasse 24, 19067 Rampe Dirk Decker, Administrator Obotritenring 98, 19053 Schwerin RUNGIS EXPRESS: Seeks Extension of Wage Subsidies ------------------------------------------------- The future remains bleak for insolvent food supplier Rungis Express, as it has yet to outline a rescue plan, The Financial Times says. Insolvency administrator Andreas Ringstmeier has to sell the group before March 31, when employment agencies cease to cover the salaries of its 400 employees. Mr. Ringstmeier hopes the insolvency compensation would be extended to prevent the group's total collapse. Three weeks ago, according to Mr. Ringstmeier, at least 10 buyers expressed interest in the company; but they backed out after reviewing the group's accounts, which they say lack transparency. Fresh food supplier Frische-Paradies, Deutsche See and Austrian group Vivatis Holding, were among the bidders. CONTACT: RUNGIS EXPRESS GESELLSCHAFT FUR FRISCHIMPORTE MBH & CO. KG Am Hambuch 2 53340 Meckenheim Phone: 02225-883-0 Fax: 02225-883-300 E-mail: Info@Rungis-Express.de Web site: http://www.rungis-express.de SCHMIDT ERDBAU: Proofs of Claim Due Next Month ---------------------------------------------- The district court of Braunschweig opened bankruptcy proceedings against Schmidt Erdbau GbR on Feb. 17. Consequently, all pending proceedings against the company have been automatically stayed. Creditors have until April 13, 2005 to register their claims with court-appointed provisional administrator Knut Thomas Hofheinz. Creditors and other interested parties are encouraged to attend the meeting on May 11, 2005, 11:30 a.m. at the district court of Braunschweig, An der Martinikirche 8, 38100 Braunschweig 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: SCHMIDT ERDBAU GBR Goslarsche Strasse 8, 38315 Schladen Contact: Angela Schmidt, Manager Rene Widmaier, Manager Knut Thomas Hofheinz, Administrator Kupfertwete 7, 38100 Braunschweig Phone: (0531) 6180196 Fax: (0531) 6180214 WALTER BAU: Strabag Takeover Gets European Commission's Nod ----------------------------------------------------------- The European Commission has opened the door for Austrian builder Strabag to hold takeover talks with collapsed construction group Walter Bau, Financial Times Deutschland says. Werner Schneider, Walter Bau's receiver, had recently agreed to sell four subsidiaries under the group's Dywidag Holding division to Austrian builder Bauholding Strabag. The businesses include an Austria-based unit, an international construction unit, a road-building arm and Walter Heilit Verkehrswegebau GmbH. Walter Bau is expected to receive EUR58 million to EUR80 million, depending on the units' profitability. With the regulator's permission, Strabag could now manage and operate Walter Bau's units, despite the fact the cartel office has yet to complete its probe. The permission also gave Walter Bau a chance to recover after revealing losses of around EUR550 million from cancelled contracts. Meanwhile, Mr. Schneider will announce today the number of employees Strabag will absorb if the takeover pushes through. Strabag has promised to absorb around 3,000 Walter Bau employees here and abroad, including 704 head office staff and 110 apprentices. Walter Bau declared insolvency in February after its creditor banks refused to approve its restructuring, denying it access to a EUR1.5 billion credit line. CONTACT: WALTER BAU AG Boheimstr. 8 86153 Augsburg Phone: +49 (0)8 21/55 82-00 Fax: +49 (0)8 21/55 82-3 20 Web site: http://www.walter-bau.de BAUHOLDING STRABAG AG Ortenburgerstrasse 27 9800 Spittal/Drau, Austria Phone: +43-47-62-62-00 Fax: +43-47-62-49-62 Web site: http://www.bauholding.at ========= I T A L Y ========= ALITALIA SPA: Cabin Crew Ground Flights Anew -------------------------------------------- The cabin crew of troubled national carrier Alitalia staged another strike Wednesday, Dow Jones Newswires says. For the third time this year, flight attendants left their workstations, forcing the carrier to cancel flights. The latest strike crippled 118 flights, 30 more than earlier announced. Most of the affected flights were going to and from Rome's Leonardo da Vinci and Milan's Malpensa airports. The attendants are demanding improvements on their contracts. They also expressed concern about the carrier's restructuring plan, which entails splitting itself into two divisions and sending around 3,700 employees home. Alitalia's operating losses dived from EUR373 million in 2003 to EUR402.5 million in 2004. The carrier expects to lower the loss this year to around EUR100 million. The European Commission has placed the carrier under in-depth probe to uncover traces of illegal state aid in its rescue plan. Alitalia hopes the probe will be concluded in time for a planned EUR1.2 billion capital increase in April or May. 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 =========== R U S S I A =========== CHARA: Proofs of Claim Deadline Nears ------------------------------------- The Arbitration Court of Chita autonomous region commenced bankruptcy proceedings against Chara after finding the close joint stock company insolvent. The case is docketed as A78- 766/04-B-9. Mr. A. Glagolev has been appointed insolvency manager. Creditors have until April 12, 2005 to submit their proofs of claim to 672051, Russia, Chita-51, Post User Box 852. CONTACT: CHARA 674159, Russia, Chita region, Kalarskiy region, Novaya Chara Mr. A. Glagolev Insolvency Manager 672051, Russia, Chita-51, Post User Box 852 Phone: (8-302-2) 26-84-59 FSG UEZ-STROYMONOLITH: Bankruptcy Proceedings Begin --------------------------------------------------- The Arbitration Court of Moscow commenced bankruptcy proceedings against FSG Uez-Stroymonolith (TIN 7704178603) after finding the close joint stock company insolvent. The case is docketed as A40-32438/04-70-7B. Mr. G. Avagimyan has been appointed insolvency manager. Creditors have until April 12, 2005 to submit their proofs of claim to 111141, Russia, Moscow, 1st Proezd Petrova Polya, 11 'a'. CONTACT: FSG UEZ-STROYMONOLITH 121019, Russia, Moscow region, Novyj Arbat Str. 11 Mr. G. Avagimyan Insolvency Manager 111141, Russia, Moscow region, 1st Proezd Petrova Polya, 11 'a' Phone: 306-65-93 KOSTROMSKAYA: Gives Creditors Until April 19 to File Claims ----------------------------------------------------------- The Arbitration Court of Kostroma region commenced bankruptcy proceedings against Kostromskaya after finding the oil company insolvent. The case is docketed as A31-6002/18. Mr. V. Bondarev has been appointed insolvency manager. Creditors have until April 19, 2005 to submit their proofs of claim to: (a) Insolvency Manager 105264, Russia, Moscow region, 5th Parkovaya Str. 46, Office 207 (b) The Arbitration Court Of Kostroma Region 156961, Russia, Kostroma region, Shagova Str. 20 (c) Kostromskaya 156000, Russia, Kostroma region, Shagova Str. 4 KROTOVSKIY: Declared Insolvent ------------------------------ The Arbitration Court of Samara region commenced bankruptcy proceedings against Krotovskiy after finding the flourmill insolvent. The case is docketed as A55-10707/2004-13. Ms. L. Mochalina has been appointed insolvency manager. Creditors have until April 12, 2005 to submit their proofs of claim to 115432, Russia, Moscow, Trofimova Str. 21, Building 2. CONTACT: KROTOVSKIY Russia, Samara region, K-Cherkesskiiy region, Krotovka Ms. L. Mochalina Insolvency Manager 115432, Russia, Moscow region, Trofimova Str. 21, Building 2 NIVA: Irkutsk Court Hires N. Kuzakov as Insolvency Manager ---------------------------------------------------------- The Arbitration Court of Irkutsk region has commenced bankruptcy supervision procedure on close joint stock company Niva. The case is docketed as A19-29838/04-38. Mr. N. Kuzakov has been appointed temporary insolvency manager. Creditors have until April 12, 2005 to submit their proofs of claim to 664025, Russia, Irkutsk, Post User Box 3262. A hearing will take place on April 19, 2005, 11:00 a.m. CONTACT: NIVA Russia, Irkutsk region, Cheremkhovskiy region, Parfenova, Dolgikh Str. 12 Mr. N. Kuzakov Temporary Insolvency Manager 664025, Russia, Irkutsk region, Post User Box 3262 The Arbitration Court of Irkutsk Region: 664025, Russia, Irkutsk region, Gagarina Avenue, 40 OLENINSKIY LES-PROM-KHOZ: Last Day for Filing Claims April 19 ------------------------------------------------------------- The Arbitration Court of Tver region commenced bankruptcy proceedings against Oleninskiy Les-Prom-Khoz after finding the open joint stock company insolvent. The case is docketed as A66-7561/2004. Mr. P. Nizov has been appointed insolvency manager. Creditors have until April 19, 2005 to submit their proofs of claim to 170000, Russia, Tver, Post User Box 121. CONTACT: OLENINSKIY LES-PROM-KHOZ Russia, Tver region, Oleninskiy region, Mirnyj, Lenina Str. 14 Mr. P. Nizov Insolvency Manager 170000, Russia, Tver region, Post User Box 121 The Arbitration Court of Tver region Russia, Tver region, Sovetskaya Str. 23b SHARLYKSKOYE GRAIN: Succumbs to Insolvency ------------------------------------------ The Arbitration Court of Orenburg region commenced bankruptcy proceedings against Sharlykskoye Grain Receiving Enterprise after finding the open joint stock company insolvent. The case is docketed as A47-2187/01-14GK. Mr. A. Solyanik has been appointed insolvency manager. Creditors have until April 12, 2005 to submit their proofs of claim to 460000, Russia, Orenburg, Gaya Str. 23A. CONTACT: SHARLYKSKOYE GRAIN RECEIVING ENTERPRISE Russia, Orenburg region, Sharlykskiy region, Sharlyk, Khlebnyj Per. 6 Mr. A. Solyanik Insolvency Manager 460000, Russia, Orenburg region, Gaya Str. 23A Phone/Fax: (3532) 78-38-45 TERYAEVSKOYE: Volgograd Court Opens Bankruptcy Proceedings ---------------------------------------------------------- The Arbitration Court of Volgograd region commenced bankruptcy proceedings against Teryaevskoye (TIN 5004003386) after finding the close joint stock company insolvent. The case is docketed as A12-33132/04-s57. Mr. A. Pyatenkov has been appointed insolvency manager. Creditors may submit their proofs of claim to 404120, Russia, Volgograd region, Volzhskiy, Karbysheva Str. 76, Office 704. CONTACT: Mr. A. Pyatenkov Insolvency Manager 404120, Russia, Volgograd region, Volzhskiy, Karbysheva Str. 76, Office 704 US-123: Moscow Court Appoints N. Egorova Insolvency Manager ----------------------------------------------------------- The Arbitration Court of Moscow region commenced bankruptcy proceedings against US-123 (TIN 7706226605, KPP 770601001) after finding the close joint stock company insolvent. The case is docketed as A40-21941/04-124-13b. Ms. N. Egorova has been appointed insolvency manager. Creditors have until April 12, 2005 to submit their proofs of claim to 127349, Russia, Moscow, Post User Box 58. CONTACT: US-123 109507, Russia, Moscow region, Volgogradskiy Pr. 197 Ms. N. Egorova Insolvency Manager 127349, Russia, Moscow region, Post User Box 58 Phone: (095) 500-70-57 The Arbitration Court of Moscow region 107802, Russia, Novaya Basmannaya Str. 10 WARM CITY: Undergoes Bankruptcy Supervision Procedure ----------------------------------------------------- The Arbitration Court of Saratov region has commenced bankruptcy supervision procedure on open joint stock company Warm City. The case is docketed as A57-248B/04-31. Mr. M. Murnin has been appointed temporary insolvency manager. Creditors may submit their proofs of claim to 410076, Russia, Saratov, Post User Box 2493. A hearing will take place on May 19, 2005, 2:35 p.m. CONTACT: WARM CITY 410600, Russia, Saratov region, Michurina Str. 58 Mr. M. Murnin Temporary Insolvency Manager 410076, Russia, Saratov region, Post User Box 2493 The Arbitration Court of Saratov Region Russia, Saratov region, Babushkin vzvoz, 1 =========== S W E D E N =========== SKANDIA INSURANCE: Reaches Settlement with Ex-chairman ------------------------------------------------------ Skandia Insurance's board of directors informed shareholders at the Annual General Meeting about: (a) the Board's investigation of the prospects of directing claims for damages at former directors; (b) the Board's recommendation to the Annual General Meeting to approve a friendly settlement reached with Lars Ramqvist; and (c) the Board's investigation of the prospects of directing claims for damages at former auditors. Points of Departure Skandia is currently party to a number of disputes stemming from the past. Handling these disputes is a delicate task for the Board, which must take into consideration what is in the best interest of Skandia and Skandia's shareholders. The Board's assignment from the shareholders is to manage and develop Skandia's business for the benefit of the company's policyholders and customers in such a way that it creates long- term value for the company and thus for its shareholders. Certain disputes or potential disputes entail material financial exposure for Skandia, while others are more a matter of principle or of general interest. The Board is of the opinion that as a business enterprise with extensive international operations, Skandia should only initiate such legal processes that are clearly judged to benefit the company's business activities and thus its shareholders. Disputes that are more a matter of principle are not to be pursued by Skandia at the expense of all shareholders. The latter applies especially in view of the fact that such processes often entail major indirect costs for Skandia and thus its shareholders, since the Board and certain employees must dedicate a substantial amount of time to these processes instead of developing Skandia's business. The direct costs for recent years' investigations and processes at Skandia are soon nearing a couple-hundred million Swedish kronor, while the indirect costs are considered to considerably greater. The Legal Investigation on Directors' and Auditors' Liability The Annual General Meeting held on 15 April 2004 resolved to not grant discharge of liability to the directors who served on Skandia's board during the period 1 January - 15 April 2003. The same applied for Skandia's CEO during that period of time. Against the background of that resolution, in summer 2004, the Board commissioned attorneys Otto Rydbeck and Peter Danowsky to investigate jointly, but to form independent opinions, as to whether there were grounds to hold any director or directors of Skandia's former boards liable for damages. Their investigation covered both the time during which discharge from liability was not granted as well as earlier. This investigative assignment was later widened to also include Skandia's former auditors. Former Skandia Directors At the Board's meeting on 22 December 2004, the result of Otto Rydbeck and Peter Danowsky's legal investigation regarding Skandia's former directors was presented. The lawyers were not entirely in agreement with respect to their opinions and recommendations, which show that the issues are difficult to assess and that the outcome of any processes is uncertain. From the presentation it was learned: (a) that the statute of limitations for directors' liability for 2000 expired at year-end 2003. Consequently, the directors cannot be held liable for the period up to and including 31 December 2000; (b) that the statute of limitations for directors' liability for 2001 would expire at year-end 2004; (c) that claims for damages can be made after the end of the above-mentioned limitation periods only if Skandia can show that a director has harmed the company through criminal action; (d) that, under Swedish law, the directors' liability for damages must be challenged individually, and that the directors cannot be held collectively liable for damages; (e) that with respect to Lars Ramqvist, who was Chairman of the Board and chairman of the Compensation Committee and Audit Committee up and until the Annual General Meeting on 15 April 2003, Otto Rydbeck and Peter Danowsky had formed differing opinions. Mr. Danowsky felt that there was a legal basis to direct claims for damages, while Mr. Rydbeck felt that any suit seeking damages was associated with considerable uncertainty, both with respect to the law and in terms of evidence; (f) that with respect to Bengt Braun, who was Vice Chairman of the Board and a member of the Compensation Committee until 17 April 2001 and who thereafter left Skandia's board, both lawyers came to the conclusion that the prospects of success in a legal action were very small; (g) that with respect to Boel Flodgren, who was a member of the Board and its Audit Committee during the time in question, both lawyers came to the opinion that the prospects of success in a legal action were very small; and (h) that with respect to the other directors who served on the Board from 1 January - 15 April 2003, nothing had been found that could lead to liability for damages. With respect to Lars Ramqvist it was reported: (a) that in Peter Danowsky's opinion, there was an opportunity to hold Lars Ramqvist liable for damages for one event in 2000, even though the statute of limitations for his normal liability as a director has expired for that year. In his capacity as Chairman of the Board, Ramqvist had a responsibility to make sure that the Board's decisions were made in the proper manner. Failure to fulfill this responsibility is a punishable offence. In Mr. Danowsky's opinion, it can be claimed that this responsibility was neglected in the Board's decision in early 2000 to extend the "Sharetracker" and "Wealthbuilder" bonus programs. The statute of limitations has expired for criminal liability, but not for any liability for damages if the rules were not adhered to. In Mr. Danowsky's opinion, this could entail liability for damages on the part of Lars Ramqvist. Mr. Rydbeck had doubts about this opinion; (b) that in 2001, circumstances arose which should have given Mr. Ramqvist reason to exercise better oversight with respect to the outcome of the Wealthbuilder bonus program. Had better control been exercised, Lars-Eric Petersson's removal of the cap for the Wealthbuilder program could have surfaced to the board, and Skandia's loss at least could have been limited. According to Mr. Danowsky, Mr. Ramqvist could be held liable for damages for this failure; (c) that also during the period 2002 - 15 April 2003, there were circumstances that should have given Mr. Ramqvist reason to ask further questions to the executive management and the external auditors regarding the reporting of the costs for the Sharetracker and Wealthbuilder programs. If, however, it only pertained to that period, the likelihood of successful outcome in a legal action would not be high enough to justify a lawsuit against Mr. Ramqvist; (d) that the damage that Mr. Ramqvist, through his carelessness, may have caused or avoided to limit is difficult to quantify. In a lawsuit claiming damages, it must also be taken into account that the applicable legislation includes an adjustment provision. Among the factors that must therefore be taken into account are that Mr. Ramqvist, as far as has been determined, did not intentionally cause any harm to Skandia, that Skandia at the time had a respected executive management, and that Skandia had several external auditors who were very familiar with the company's conditions and the issues at hand, and who therefore could have been expected to raise a warning flag when something wrong or improper occurred; (e) that in assessing the amount of damages, Mr. Ramqvist's financial situation must also be taken into account, i.e., his ability to pay damages, plus the fact that he was not a beneficiary of any bonus program at Skandia; (f) that Skandia would have to bear a large share of the legal costs if Skandia were to direct claims for damages in a considerably higher amount than what ultimately may be awarded by a court ruling; and (g) that after weighing in all aspects, Mr. Danowsky felt that a suit should be filed against Lars Ramqvist, while Mr. Rydbeck was of the opposite opinion. With respect to Bengt Braun it was reported: (a) that Braun was serving on the Board when the Sharetracker and Wealthbuilder programs were originally approved, that he was one of the directors who had been assigned with the task of deciding on individual grants in the bonus programs, and that he participated in the decision to extend the program and from May 2000 was a member of the Compensation Committee, which according to its instructions was particularly responsible for handling matters concerning the bonus programs. Comparatively high standards can be placed on him in any assessment of his prudence; (b) that even if Mr. Braun out of carelessness during the period 1997-2000 may have played a part in the unreasonable outcome of the bonus programs, no claims for damages can be directed against him due to the statute of limitations; (c) that the statute of limitations had not expired for any claims for damages for carelessness in connection with Mr. Braun's board duties during the period 1 January-17 April 2001, but that the only concrete circumstance that could be tied to allegations of carelessness during this period was that Mr. Braun did not note that the outcome of Wealthbuilder, which was presented in a note in the 2000 Annual Report, was not in agreement with what the Board, in his view, had previously decided on. However, the task of checking the annual report in detail was not Mr. Braun's responsibility. Added to this is the fact that Lars-Eric Petersson and the AGM-elected auditors, who were aware that larger amounts than those reported would be paid out and that the information in the note was incorrect, did not appear to have informed the Board of this; and (d) that the prospects of winning in a lawsuit seeking damages from Bengt Braun based on the grounds outlined above were therefore considered to be very small. With respect to Boel Flodgren it was reported: (a) that Boel Flodgren was serving on the Board when the Sharetracker and Wealthbuilder programs were originally decided on, but that she did not participate in the individual grants to the participants; (b) that in retrospect it can be stated that it would have been warranted of Flodgren in 2000 to have brought up the issue of examining the value calculations for the Wealthbuilder program with Lars Ramqvist, but that it is doubtful if she - by not doing so - can be considered to have been careless and in such way that can justify liability for damages, and that the statute of limitation for any carelessness in 2000 has expired for all circumstances; (c) that Flodgren, who was a member of the Audit Committee, did not react to the fact that the outcome of Wealthbuilder reported in the 2000 Annual Report dramatically differed from the highest amount which, by her understanding, was the cap that the Board had decided on. However, Mr. Flodgren did not have equally extensive knowledge about the bonus programs that Lars Ramqvist and the other directors had who were previously members of the Board's executive council or Compensation Committee. Further, it should be noted that Lars-Eric Petersson and the AGM-elected auditors, who knew that larger amounts than those reported would be paid out and that the information in the note in the annual report was incorrect, did not appear to have informed the Board or Audit Committee about this; (d) that Flodgren asked some relevant questions in the Board and in the Audit Committee with respect to the bonus programs and the company's risks, however, the answers she received from persons in the executive management at that time and from the external auditors in some cases were incomplete and misleading; and (e) that the prospects of winning in a lawsuit seeking damages from Boel Flodgren were therefore considered to be very small. With respect to the other directors it was reported: (a) that none of the other directors who were not granted discharge of liability for the period 1 January 2003 - 15 April 2003, except for Lars-Eric Petersson, with whom arbitration proceedings are currently in progress, had participated in the individual grants of participation in Sharetracker and Wealthbuilder; (b) that Lars Ramqvist had not taken up the issue of examining the value calculations of Wealthbuilder on the Compensation Committee's agenda, and the directors who were members of that committee therefore had not concerned themselves with that issue to a greater extent than the other directors; and (c) that the prospects of winning a lawsuit seeking damages against the other directors due to inadequate oversight and follow-up of the Wealthbuilder and Sharetracker programs in 2001 - 2003 were essentially non-existent, since Mr. Ramqvist - in his capacity as Chairman of the Board, and as chairman of the Audit Committee and Compensation Committee - was the person on the Board who had responsibility for ensuring that the division of duties between the Board and its committees was adequate and that no issues fell between two stools, and that Lars-Eric Petersson and the external auditors, despite their knowledge about the shortcomings in how the programs were applied, did not appear to inform that Board about this. Finally, it was reported that with respect to the period for which discharge of liability was not granted, i.e., 1 January 2003 - 15 April 2003, no other information has emerged with could give rise to liability for damages. The Board's Handling and Considerations Regarding the Settlement with Lars Ramqvist In view of the report that was presented, on 22 December 2004 the Board decided to sue Lars Ramqvist for SEK25 million before the year's end, if he was not willing to enter into settlement discussions and, pending the outcome of these, to accept a continuance of the statute of limitations for his liability as a director for 2001, which would otherwise expire at year-end 2004. The conceived amount cited in the suit was based on what the Board considered to be a justified starting point for a lawsuit. It is the Board's opinion that the amount could be adjusted downward by a court, even if Skandia were to obtain a favorable ruling in its suit. In addition, the Board's opinion was that the direct costs for a process would be substantial. Mr. Ramqvist accepted the continuance of the statute of limitation through 15 May 2005, in accordance with an agreement of 27 December 2004. Settlement negotiations were thereafter initiated. The settlement negotiations resulted at the end of January in Mr. Ramqvist stating that he was prepared to publicly declare that he has a moral responsibility for the events that occurred at Skandia, and that as a consequence of this, he was also prepared to pay back the director's fees he received in 2000 and 2001. These amounted to slightly more than SEK2.2 million. In assessing the settlement amount, the following factors, among others, should be taken into account: the Board's overall opinion about the limited prospects of success in a legal process, the risk of a material adjustment in the amount demanded in damages even if success were achieved as a matter of principle in the process, the substantial direct as well as indirect costs of such a process, the time that would pass before any damages would be awarded by a court, and the negative exposure that the Skandia brand would suffer during a court process that goes on for several years. This is in line with the general points of departure outlined in the introduction that the Board has for its decisions. Further, in the Board's opinion, an important factor that should be weighed in is that through the proposed settlement, Mr. Ramqvist has accepted a moral responsibility for the events that occurred at Skandia. In this context it can also be noted that the principle of repaying directors' fees received was also applied in the early 1990s in connection with the banking crisis in Sweden at that time. The Swedish government, in its capacity as owner, applied this principle with respect to several banks, which sustained very substantial credit losses do to poor board work, among other things. The credit losses in these cases were many times larger than the costs incurred by Skandia due to the criticized bonus programs. A precondition for the Board to be prepared to enter into a friendly settlement was that Mr. Ramqvist would not be indicted, i.e., that senior prosecutor Christer van der Kwast would drop his preliminary investigation against Mr. Ramqvist. At a board meeting on 31 January 2005, the Board discussed the settlement agreement that had been negotiated with Lars Ramqvist that same day. By that time the senior prosecutor had also announced that he had dropped his preliminary investigation against Mr. Ramqvist. In his decision to drop the investigation, Mr. van der Kwast states that on 22 June 2004 he served a writ to Lars Ramqvist informing him that he was under criminal investigation. In this writ, Mr. van der Kwast stated that Mr. Ramqvist was under suspicion of having abused his position of trust, since after receiving knowledge that the cap for the Wealthbuilder program had been removed, he did not take any action to limit the company's costs for the program. In his writ, Mr. van der Kwast estimated the damage at SEK546 million. In his decision to drop the investigation eight months later, after the completed preliminary investigation, Mr. van der Kwast did not give any indication that Mr. Ramqvist had caused damage to Skandia. Information in the media that Mr. van der Kwast was purported to have stated that Mr. Ramqvist had caused damage of SEK546 million is thus incorrect. This statement has also been denied by Mr. van der Kwast. In his decision to drop the investigation, the senior prosecutor stated: In my opinion, what has emerged from the investigation lends support to the conclusion that Mr. Ramqvist in several respects failed in his role as chairman of the board and as chairman of the compensation committee in connection with the handling of the extension of the Wealthbuilder program, and that this affected the course of events. However, based on the information at hand, it cannot be verified that Mr. Ramqvist, through his actions or negligence, intentionally abused his position of trust in the company and thereby caused damage to the company. With respect to Mr. van der Kwast's opinion, the Board noted that the senior prosecutor did not feel he could verify that Lars Ramqvist was guilty of the crime he had been served a writ for, and that the conditions that the prosecutor's investigation pertained to concerned the year 2000. As noted above, the statute of limitations for these circumstances has expired with respect to liability for damages not based on criminal action. Against the background of the conditions reported above, the Board is of the opinion that the proposed settlement is clearly better for Skandia than uncertain litigation in the courts over damages. This opinion was arrived at after very extensive considerations. In summary, for the Board's position on a friendly settlement with Lars Ramqvist, it was very important that Mr. Ramqvist declared that he accepts his share of moral responsibility for what occurred at Skandia. In the Board's unanimous opinion, for Skandia the repayment of fees for 2000 and 2001 is a much better alternative than a prolonged, costly and -- not least -- uncertain legal process. The Board's Recommendation to the Annual General Meeting with Respect to Directors' Liability Against the background of the above, the Board recommends that the shareholders at the Annual General Meeting on 14 April 2005 resolve to approve the settlement agreed upon with Lars Ramqvist dated 31 January 2005, entailing that Lars Ramqvist will repay the director's fees he received for 2000 and 2001, together amounting to SEK2,216,667. Former Auditors Due to the fact that the statute of limitations for the directors' liability for 2001 was set to expire at year-end 2004, while the statute of limitations for the auditors' liability will not expire until 17 April 2005 (three years after the Annual General Meeting of 17 April 2002), the legal investigation was initially focused on former company directors. After year-end 2004, attorney Peter Danowsky has continued his investigation of the issue of whether there are grounds to direct claims for damages against one or more of Skandia's former auditors. This investigation has not yet been concluded. Against this background, for the time being the Board is not issuing any recommendation to the Annual General Meeting on 14 April 2005 with respect to auditors' liability. Stockholm, March 2005 The Board of Directors of Skandia Insurance Company Ltd. CONTACT: SKANDIA INSURANCE Harry Vos Head of Investor Relations Phone: +46-8-788 3643 SKANDIA INSURANCE: Chairman Justifies Predecessor's Reprieve ------------------------------------------------------------ On Wednesday, Skandia Insurance's board reported to the Annual General Meeting its settlement with Lars Ramqvist and position regarding directors' liability with respect to former company directors. From this report it is noted that the Board has recommended that the Annual General Meeting approve the settlement with Lars Ramqvist. Further, it is reported why the Board will not be initiating any actions regarding any other former directors. With respect to Skandia's former auditors, the investigation has not yet been completed. Commenting on the Board's recommendation to the Annual General Meeting, Bernt Magnusson, Chairman of the Board of Skandia, said: "As chairman of the board that was elected in 2004 by Skandia's owners to straighten out the past, but also -- and primarily -- to conduct Skandia's business moving forward, I understand the indignation and anger that has been expressed from various directions with respect to past events at Skandia. "At the same time, the primary obligation of the Board is to look after the financial interests of Skandia's shareholders and customers who have invested their pension savings with Skandia. A large proportion of Skandia's shareholders are pension institutions. The visible cost of the investigative and analysis work that was required by the need to sort out things that had happened at Skandia under the former management is quickly approaching a couple-hundred million kronor. But the hidden, indirect cost -- the time and energy that all of these processes are draining from the company -- is considerably larger. "The settlement with Lars Ramqvist is essentially the same agreement that the Swedish government reached with former directors of Nordbanken during the financial crisis. And in this context it can be noted that the credit losses suffered by the bank -- due among other things to poor board work -- were infinitely greater than the bonus payments made by Skandia. "The extensive legal analysis that has been reported [Wednes]day takes into account two factual matters that are often overlooked in the debate. The one is the fact that the chief prosecutor has laid down his criminal investigation of Mr. Ramqvist. "The chief prosecutor could not prove intent or crime, and Mr. Ramqvist had no personal gain in what had occurred. The other is that in connection with the settlement, false information had been spread to the effect that the chief prosecutor had determined that Mr. Ramqvist had caused loss to Skandia in the amount of SEK546 million. This figure pertains to the cost incurred by Skandia from the failure to apply a cap for the Wealthbuilder compensation program. In the Board's opinion, this liability issue should be resolved in the arbitration process currently being conducted with Lars-Eric Petersson. As previously disclosed, Mr. Petersson's outcome from the Sharetracker program was approximately SEK175 million." CONTACT: SKANDIA INSURANCE Harry Vos Head of Investor Relations Phone: +46-8-788 3643 ===================== S W I T Z E R L A N D ===================== SWISS INTERNATIONAL: Merger with Lufthansa a Done Deal ------------------------------------------------------ Lufthansa will take over Swiss International Air Lines, according to Reuters sources. The German airline intends to announce the deal either late Wednesday or early Thursday prior to the presentation of its 2004 results, the report says. After the announcement, Lufthansa will then send offers to free-float shareholders and register the deal with the European Union. Swiss International's major shareholder met Monday to discuss and approve the terms of the tie-up. One source said, "The tone of the meeting was that there was no real alternative to the takeover for Swiss." Under the deal, Lufthansa would acquire 14% of Swiss shares in free float. Both carriers refused to comment as well as UBS and Credit Suisse, Swiss' largest private shareholders. The government, which holds a 20% stake in Swiss, also refused to issue a statement. In June 2004, Finance Minister Hans-Rudolf Merz suggested a tie- up between Lufthansa and Swiss International, which has yet to post a profit since its founding in 2002. Swiss previously turned down a merger with Lufthansa, pursuing instead a membership into the Oneworld Alliance. But the carrier failed to join the alliance and was forced to fly on its own, a lose- lose situation considering the crowded European airline market. On Sunday, Lufthansa and Swiss confirmed their merger talks. CONTACT: SWISS INTERNATIONAL AIR LINES LTD. Aeschenvorstadt 4 CH-4051 Basel Switzerland Phone: +41-61-582-00-00 Fax: +41-61-582-33-33 Web site: http://www.swiss.com DEUTSCHE LUFTHANSA AG Von-Gablenz-Strasse 2-6 D-50679 Cologne, 21 Germany Phone: +49-69-696-0 Fax: +49-69-696-6818 Web site: http://www.lufthansa.com ============= U K R A I N E ============= ARTI: Proofs of Claim Deadline March 23 --------------------------------------- The Economic Court of Volinska region commenced bankruptcy proceedings against Arti (code EDRPOU 20148453) on January 31, 2005 after finding the limited liability company insolvent. The case is docketed as 1/128-B. Mr. Volodimir Temchishin (License Number AA 630072) has been appointed liquidator/insolvency manager. The company holds account number 26009232215022 at CB Privatbank, Volinska regional branch, MFO 303440. Creditors have until March 23, 2005 to submit their proofs of claim to: (a) ARTI 43016, Ukraine, Volinska region, Lutsk, Kovelska Str. 1 (b) ECONOMIC COURT OF VOLINSKA REGION 43010, Ukraine, Volinska region, Lutsk, Voli Avenue, 54-a CONTINENT-GROUP: Names Mihajlo Shkabrij Liquidator -------------------------------------------------- The Economic Court of Kyiv region commenced bankruptcy proceedings against Continent-Group (code EDRPOU 32119302) on February 2, 2005 after finding the limited liability company insolvent. The case is docketed as 44/11 b-05. Mr. Mihajlo Shkabrij (License Number AA 250093) has been appointed liquidator/insolvency manager. Creditors have until March 23, 2005 to submit their proofs of claim to: (a) CONTINENT-GROUP 07300, Ukraine, Kyiv region, Vishgorod, Sholudenko Str. 29 (b) Mr. Mihajlo Shkabrij Liquidator/Insolvency Manager 03150, Ukraine, Kyiv region, Chervonoarmijska Str. 57/3, office 221 Phone: 8 (044) 239-23-90 (c) ECONOMIC COURT OF KYIV REGION 01033, Ukraine, Kyiv region, Zhelyanska Str. 58 b DNIPROENERGOBUD: Declared Insolvent ----------------------------------- The Economic Court of Dnipropetrovsk region commenced bankruptcy proceedings against Dniproenergobud (code EDRPOU 25007285) on January 28, 2005 after finding the close joint company insolvent. The case is docketed as B 29/104/04. Mr. Oleksij Zabrodin (License Number AA 630146) has been appointed liquidator/insolvency manager. The company holds account number 260031058180001 at CB Privatbank, MFO 305299. Creditors have until March 22, 2005 to submit their proofs of claim to: (a) DNIPROENERGOBUD 49083, Ukraine, Dnipropetrovsk region, Gagarin Avenue, 104/103 (b) Mr. Oleksij Zabrodin Liquidator/Insolvency Manager 69121, Ukraine, Zaporizhya region, a/b 6335 Phone: 8 (067) 780-39-60 (c) ECONOMIC COURT OF DNIPROPETROVSK REGION 49600, Ukraine, Dnipropetrovsk region, Kujbishev Str. 1a ECO-DNIPRO: Insolvency Manager to Temporarily Oversee Business -------------------------------------------------------------- The Economic Court of Zaporizhya region commenced bankruptcy proceedings against Eco-Dnipro (code EDRPOU 23856436) on February 14, 2005 after finding the limited liability company insolvent. The case is docketed as 25/35. Mr. Igor Buryak (License Number AA 783131) has been appointed liquidator/insolvency manager. The company holds account number 26002025301 at JSB Metalurg, Zaporizhya branch, MFO 313582. Creditors have until March 23, 2005 to submit their proofs of claim to: (a) ECO-DNIPRO 69015, Ukraine, Zaporizhya region, Kiyashko Str. 28/11 (b) Mr. Igor Buryak Liquidator/Insolvency Manager 69039, Ukraine, Zaporizhya region, Kujbishev Str. 71 (c) ECONOMIC COURT OF ZAPORIZHYA REGION 69001, Ukraine, Zaporizhya region, Shaumyana Str. 4 FASTIVBUD: Creditors' Claims Due Next Week ------------------------------------------ The Economic Court of Kyiv region commenced bankruptcy proceedings against OJSC FASTIVBUD (code EDRPOU 24219690) on January 31, 2005 after finding the limited liability company insolvent. The case is docketed as 207/2 b-2004. Mr. Sergij Krupenko (License Number AA 668345) has been appointed liquidator/insolvency manager. The company holds account number 26004330301 at OJSC Oshadbank, Fastiv branch, MFO 320207. Creditors have until March 22, 2005 to submit their proofs of claim to: (a) FASTIVBUD 08500, Ukraine, Kyiv region, Fastiv, Strokova Str. 4 (b) Mr. Sergij Krupenko Liquidator/Insolvency Manager 02183, Ukraine, Kyiv region, a/b 93 Phone: 8 (050) 595-99-97 (c) ECONOMIC COURT OF KYIV REGION 01033, Ukraine, Kyiv region, Zhelyanska Str. 58 b KOMUNENERGOMASHEKSPORT: Under Bankruptcy Supervision ---------------------------------------------------- The Economic Court of Dnipropetrovsk region commenced bankruptcy supervision procedure on Industrial-Financial Company Komunenergomasheksport (code EDRPOU 31371465) on January 27, 2005. The case is docketed as B 40/144/04. Ms. Chesnova Nataliya (License Number AA 250312) has been appointed temporary insolvency manager. The company holds account number 26002425 at JSPPB Aval, Zhovtneva branch, MFO 306555. Creditors have until March 23, 2005 to submit their proofs of claim to: (a) KOMUNENERGOMASHEKSPORT 49000, Ukraine, Dnipropetrovsk region, Lomana Str. 19 (b) Ms. Chesnova Nataliya Temporary Insolvency Manager 49101, Ukraine, Dnipropetrovsk region, Kirov Avenue, 28-A, office 201 (c) ECONOMIC COURT OF DNIPROPETROVSK REGION 49600, Ukraine, Dnipropetrovsk region, Kujbishev Str. 1a LUNARIYA: Lviv Court Opens Bankruptcy Proceedings ------------------------------------------------- The Economic Court of Lviv region commenced bankruptcy proceedings against Lunariya (code EDRPOU 23881807) after finding the limited liability company insolvent. The case is docketed as 6/320-8/156. Mr. Vinnikov Vitalij (License Number AA 779141) has been appointed liquidator/insolvency manager. The company holds account number 26000301365368 at Prominvestbank, Lviv branch, MFO 325105; account number 26007335649004 at CB Privatbank, MFO 325321; and account number 26001012570001at at OJSC Bank Universalnij, MFO 325707. Creditors have until March 23, 2005 to submit their proofs of claim to: (a) LUNARIYA Juridical address: Ukraine, Lviv region, Hvilyovij Str. 39/22 Actual address: Ukraine, Lviv region, Bahmatyuk Str. 22 (b) Mr. Vinnikov Vitalij Liquidator/Insolvency Manager 81100, Ukraine, Lviv region, Pustomiti, Sportivna Str. 2/9 (c) ECONOMIC COURT OF LVIV REGION 79010, Ukraine, Lviv region, Lichakivska Str. 81 PENTAGRO: Proofs of Claim Deadline Expires Next Week ---------------------------------------------------- The Economic Court of Cherkassy region commenced bankruptcy proceedings against Pentagro (code EDRPOU 32129682) on January 18, 2005 after finding the limited liability company insolvent. The case is docketed as 01/2223. Mr. Vasil Levchenko has been appointed liquidator/insolvency manager. Creditors have until March 22, 2005 to submit their proofs of claim to: (a) PENTAGRO Ukraine, Cherkassy region, Patsayev Str. 53 (b) Mr. Vasil Levchenko Liquidator/Insolvency Manager Ukraine, Cherkassy region, Transportnij Lane, 19 (c) ECONOMIC COURT OF CHERKASSY REGION 18005, Ukraine, Cherkassy region, Shevchenko Avenue, 307 UKRBUDTEH: Gives Creditors Until Next Week to File Claims --------------------------------------------------------- The Economic Court of Kyiv region commenced bankruptcy proceedings against Ukrbudteh (code EDRPOU 32829470) on February 15, 2005 after finding the limited liability company insolvent. The case is docketed as 24/955-b. Mr. Igor Mihno (License Number AA 668302) has been appointed liquidator/insolvency manager. The company holds account number 26002153501 at JSC Industrial-Financial Bank, Kyiv branch, MFO 320906. Creditors have until March 23, 2005 to submit their proofs of claim to: (a) UKRBUDTEH Ukraine, Kyiv region, Saksaganskij Str. 115-a (b) Mr. Igor Mihno Liquidator/Insolvency Manager Ukraine, Kyiv region, Umanska Str. 35 Phone: 243-32-58 (c) ECONOMIC COURT OF KYIV REGION 01030, Ukraine, Kyiv region, B. Hmelnitskij Boulevard, 44-B =========================== U N I T E D K I N G D O M =========================== AAA AA: Plumbing Company Calls in Administrator from Ward & Co. --------------------------------------------------------------- Barry J. Ward (IP No 002700) has been appointed administrator for plumbing company AAA AA All Areas Maintenance Limited. The appointment was made Feb. 23, 2005. Its registered office is located at Bank House, Shaw Street, Worcester WR1 3DT. CONTACT: WARD & CO. Bank House Shaw Street Worcester Worcestershire WR1 3DT Phone: 01905 25000 Fax: 01905 26555 E-mail: aws@ward-co.co.uk ADVANCED TECHNOLOGY: Hires Fanshawe Lofts as Administrator ---------------------------------------------------------- Stephen John Adshead and Antony Robert Fanshawe (IP Nos 008574, 005944) have been appointed joint administrators for Advanced Technology Ramar Limited. The appointment was made March 4, 2005. The company is into radio data collection for utilities. Its registered office is located at 1st Floor, 7 Enterprise Way, Bournemouth International Airport, Christchurch, Dorset BH23 6HG. CONTACT: FANSHAWE LOFTS 41 Castle Way Southampton Hampshire SO14 2BW Phone: 023 8023 3522 Fax: 023 8023 3504 E-mail: arf@fanshawe-lofts.co.uk A E VOSS: Calls in Liquidator ----------------------------- At the extraordinary general meeting of A E Voss Limited on March 4, 2005 held at 1 Gray's Inn Square, Gray's Inn, London WC1R 5AA, the special resolution to wind up the company was passed. Michael Colin John Sanders of B. N. Jackson Norton, 1 Gray's Inn Square, Gray's Inn, London WC1R 5AA has been appointed liquidator of the company. CONTACT: B N JACKSON NORTON 1 Gray's Inn Square, Gray's Inn, London WC1R 5AA AI PRODUCT: Appoints Joint Administrators from Begbies Traynor -------------------------------------------------------------- W. John Kelly and James P. N. Martin (IP Nos 004857, 8316) have been appointed joint administrators for AI Product Solutions Limited. The appointment was made March 8, 2005. Its registered office is located at St. Leonards Avenue, Stafford ST17 4LT. CONTACT: BEGBIES TRAYNOR 4th Floor Newater House 11 Newhall Street Birmingham West Midlands B3 3NY Phone: 0121 200 8151 or 0121 200 8150 Fax: 0121 200 8160 E-mails: john.kelly@begbies-traynor.com james.martin@begbies-traynor.com ASSEMBLY INDUSTRIES: Appoints Begbies Traynor Administrator ----------------------------------------------------------- W. John Kelly and James P. N. Martin (IP Nos 004857, 8316) have been appointed joint administrators for Assembly Industries Limited. The appointment was made March 8, 2005. CONTACT: BEGBIES TRAYNOR 4th Floor Newater House 11 Newhall Street Birmingham West Midlands B3 3NY Phone: 0121 200 8151 or 0121 200 8150 Fax: 0121 200 8160 E-mails: john.kelly@begbies-traynor.com james.martin@begbies-traynor.com AUTOMOTIVE PRODUCTS: Automotive Manufacturer in Administration -------------------------------------------------------------- Neil Tombs and Paul Melville (IP Nos 7830, 9313) have been appointed administrators for Automotive Products Driveline Technology Limited. The appointment was made March 7, 2005. The company manufactures automotive component. CONTACT: GRANT THORNTON UK LLP Enterprise House 115 Edmund Street Birmingham West Midlands B3 2HJ Phone: 0121 212 4000 Fax: 0121 233 9857 or 0121 212 4014 E-mails: neil.tombs@gtuk.com paul.melville@gtuk.com BEARINGPOINT EUROPE: Hires Deloitte & Touche to Liquidate Assets ---------------------------------------------------------------- At the general meeting of Bearingpoint Europe Limited, the special and ordinary resolutions to wind up the company were passed. J. R. D. Smith and N. J. Dargan of PO Box 810, Athene Place, 66 Shoe Lane, London EC4A 3WA have been appointed joint liquidators of the company. CONTACT: DELOITTE & TOUCHE LLP Athene Place 66 Shoe Lane London EC4A 3BQ Phone: 00 44 (0) 207 936 3000 Fax: 00 44 (0) 207 779 4001 Web site: http://www.deloitte.com BOWERBROOK LIMITED: Joint Liquidators from PwC Move in ------------------------------------------------------ At the meeting of Bowerbrook Limited on March 1, 2005, the special and ordinary resolutions to wind up the company were passed. Jonathan Sisson and Richard Setchim of PricewaterhouseCoopers LLP, Plumtree Court, London EC4A 4HT have been appointed joint liquidators of the company. CONTACT: PRICEWATERHOUSECOOPERS LLP Plumtree Court London EC4A 4HT Phone: [44] (20) 7583 5000 Fax: [44] (20) 7822 4652 Web site: http://www.pwc.com BRIDE AND BEAUTY: Closure Leaves 80 Brides Without Gowns -------------------------------------------------------- Dozens of brides-to-be will have to postpone their wedding plans after Bride and Beauty went into liquidation, The Herald reports. According to the paper, the company's liquidation affected 70 to 80 clients who have paid their bridal gowns in full. A spokesman said they sent out letters to customers informing them about the liquidation. He added the chances of getting refunds are slight. A liquidator from Ferris Associates commiserates with the clients, most of whom had saved up for their bridal gowns. He said all stocks left in the shop would be auctioned to pay off debt. Bridal and Beauty shop's bridal gowns ranges from GBP400 to GBP2,000. CAMAS CONSULTANTS: Liquidator Takes over Helm --------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Camas Consultants Ltd. Notice is hereby given that on Feb. 22, 2005, I, James Inglis Smith, Smith Inglis Ltd., Suite 412, Baltic Chambers, 50 Wellington Street, Glasgow G2 6HJ, was appointed liquidator of Camas Consultants Ltd., which registered office is located at 152 Bath Street, Glasgow G2 4TB. James Inglis Smith, Liquidator February 22, 2005 CONTACT: SMITH INGLIS & CO. Suite 412 Baltic Chambers 50 Wellington Street Glasgow G2 6HJ James Inglis Smith Phone: 0141 248 8339 Fax: 0141 248 8339 CELSIUS LTD.: Laboratory Supplier Calls in Administrator -------------------------------------------------------- Tracy A. Taylor (IP No 008899) has been appointed administrator for Celsius Ltd. The appointment was made March 4, 2005. The company supplies laboratory apparatus. Its registered office is located at Northfield Road, Rotherham S60 1RR. CONTACT: ABBEY TAYLOR LTD. The Blade Enterprise Centre John Street Sheffield South Yorkshire S2 4SU Phone: 0114 292 2402 Fax: 0114 292 2403 E-mail: tracy.taylor@abbeytaylor.co.uk CHESTERTON INTERNATIONAL: In Administrative Receivership -------------------------------------------------------- National Westminster Bank Plc appointed Nigel Morrison (Office Holder No 8938) and Martin Ellis (Office Holder No 8687) joint administrative receivers for holding company Chesterton International Limited (Reg No 02485353, Trade Classification: 35). The application was filed March 7, 2005. CONTACT: GRANT THORNTON U.K. LLP 43 Queen Square Bristol BS1 4QR Phone: 0117 926 8901 Fax: 0117 926 5458 Web site: http://www.grant-thornton.co.uk GRANT THORNTON U.K. LLP Grant Thornton House Melton Street Euston Square London NW1 2EP Phone: 020 7383 5100 Fax: 020 7383 4715 Web site: http://www.grant-thornton.co.uk DCM CAPITAL: Hires Ernst & Young as Liquidator ---------------------------------------------- At the extraordinary general meeting of DCM Capital LDN (UK) Limited on March 3, 2005 held at Sanno Park, Tower Building, 43F, 11-1, Nagatacho 2-chome, Chiyoda-ku, Tokyo 100-6150, Japan, the special resolution to wind up the company was passed. Roy Bailey and Elizabeth Anne Bingham of Ernst & Young LLP, 1 More London Place, London, SE1 2AF have been appointed joint liquidators of the company. CONTACT: ERNST & YOUNG LLP 1 More London Place London SE1 2AF Phone: +44 [0] 20 7951 2000 Fax: +44 [0] 20 7951 1345 Web site: http://www.ey.com DRIVE & SURVIVE: Hires Administrators from Kroll ------------------------------------------------ A. J. Wolstenholme and J. M. Wright (IP Nos 8995, 9152) have been appointed administrators for Drive & Survive UK Plc. The appointment was made March 9, 2005. The company is engaged in other business activities. CONTACT: KROLL BUCHLER PHILLIPS LTD. Aspect Court 4 Temple Row Birmingham West Midlands B2 5HG Phone: 0121 212 4999 Fax: 0121 212 4944 E-mail: jwright@krollworldwide.com DUGDALE DAVIES: Calls in Administrators from DTE Leonard Curtis --------------------------------------------------------------- J. M. Titley and A. Poxon (IP Nos 8617, 8620) have been appointed administrators for Dugdale Davies Limited. The appointment was made March 10, 2005. The company manufactures prepared farm animal feeds. Its registered office is located at Unit d Of Sett End Road West, Shadsworth Business Park, Blackburn BB1 2QJ. CONTACT: DTE LEONARD CURTIS DTE House Hollins Mount Bury Lancashire BL9 8AT Phone: 0161 767 1250 or 0161 767 1200 Fax: 0161 766 3685 or 0161 767 1201 E-mails: jtitley@dte-Leonardcurtis.com apoxon@dte-leonardcurtis.com EAGLE COMPUTERS: Creditors Appoint Liquidator --------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Eagle Computers Ltd. Notice is hereby given that on Feb. 22, 2005, I, James Inglis Smith, Smith Inglis Ltd., Suite 412, Baltic Chambers, 50 Wellington Street, Glasgow G2 6HJ was appointed liquidator of Eagle Computers Ltd., which registered office is located at 152 Bath Street, Glasgow G2 4TB. James Inglis Smith, Liquidator February 22, 2005 CONTACT: SMITH INGLIS & CO. Suite 412 Baltic Chambers 50 Wellington Street Glasgow G2 6HJ James Inglis Smith Phone: 0141 248 8339 Fax: 0141 248 8339 EASTSTONE LIMITED: Creditors Meeting Set Later this Month --------------------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Eaststone Limited (In Liquidation) I, Ian W. Wright, hereby give notice that I was appointed Interim Liquidator of Eaststone Limited on February 18, 2005, by Interlocutor of the Sheriff of Glasgow and Strathkelvin at Glasgow. Notice is also given that the First Meeting of Creditors of the above company will be held at the offices of Haines Watts, James Miller House, 98 West George Street, Glasgow G2 1PJ, on March 30, 2005, at 3:30 p.m. for the purposes of choosing a Liquidator and of determining whether to establish a Liquidation Committee. Creditors, whose claims are unsecured in whole or in part, are entitled to attend and vote in person or by proxy providing that their claims and proxies have been submitted and accepted at the meeting or lodged beforehand at the address below. A resolution will be passed when a majority of those voting have voted in favor of it. For the purpose of formulating claims, creditors should note that the date of commencement of the liquidation is January 28, 2005. I. W. Wright, Interim Liquidator CONTACT: HAINES WATTS (GLASGOW INSOLVENCY) James Miller House 98 West George Street Glasgow G2 1PJ Phone: 0141 342 1600 Fax: 0141 342 1616 Web site: http://www.hwca.com Ian William Wright E-mail: iwright@hwca.com FOOD HAUL: Names Tenon Recovery Administrator --------------------------------------------- Derek Oakley and Christopher Ratten (IP Nos 8630 and 9338) have been appointed administrators for Food Haul Limited. The appointment was made March 10, 2005. The company distributes food supplies. CONTACT: TENON RECOVERY Arkwright House, Parsonage Gardens, Manchester M3 2LF Phone: 0161 834 3313 Fax: 0161 827 8402 E-mail: manchester@tenongroup.com Web site: http://www.tenongroup.com GADGET SHOP: Boardroom Tiff Sends firm into Administration ---------------------------------------------------------- The Gadget Shop called in administrators from PKF Tuesday after a boardroom feud discouraged a potential buyer, says The Independent. The sale was scuttled by a dispute between a group of investors holding 60% of the company and the minority bloc led by Peter Wilkinson and Jon Wood. Mr. Wilkinson, who founded Freeserve, and Mr. Wood, a UBS trader, have a pending lawsuit against Tom Hunter, the proponent of the sale. The dispute goes back to the acquisition of Birthdays by Mr. Hunter. Messrs. Wilkinson and Wood claim Mr. Hunter prejudiced their interest when he acquired the greeting card company using his own investment vehicle. Birthdays was the first acquisition target of The Gadget Shop, which was established in 1991 to takeover local retail chains. Mr. Hunter eventually sold Birthdays to rival Clinton Cards in November for about GBP14 million less than it was bought for. Bryan Jackson, a partner at PKF, hopes to sell the business as a going concern. Last week, a retail group withdrew its takeover offer, fearing it will not be able to take full control of the company amid the boardroom row. Sales of Gadget Shop, which retails computer games and other electronic gadgets and gifts from 65 outlets, dipped in recent months. It blames intense competition from general retailers that offer similar stock. In the nine months to March 29, 2003, the company booked pre-tax profit of GBP2.4 million on sales of GBP36.5 million. Its debt amount to GBP3 million. CONTACT: THE GADGET SHOP LIMITED Europa House 184 Ferensway Hull HU1 3UT United Kingdom Phone: 0870 8400 567 or (International): + 44 (0) 1482 595 100 Fax: + 44 (0) 1482 595 110 E-mail: shop@thegadgetshop.co.uk Web site: http://www.gadgetshop.com GASKELL PLC: De-lists After Failure to Refinance ------------------------------------------------ The Board of Gaskell plc provided a trading update on 16 February 2005. This referred to the Board continuing to explore strategic alternatives for the Group, including a possible refinancing as well as other initiatives such as the sale of all or certain parts of the Group's businesses, the negotiation of extended credit arrangements and a possible injection of new equity. The Board indicated, at that time, that the securing of such a re-financing was by no means certain and, indeed, this has not been achieved. The Board is now focusing entirely on the sale as a going concern of Gaskell's businesses and is in the process of negotiating offers for its various trades and assets. Following the potential disposals, it is unlikely that shareholders will be left with any value. Gaskell has requested that the shares be suspended from the Official List of the London Stock Exchange with immediate effect pending clarification of its financial position. Shareholders will continue to be updated as appropriate. CONTACT: GASKELL PLC Phone: 01254 770 222 Contact: Gerry Wheeler, Chief Executive Richard Hopkin, Finance Director GMD MOULDINGS: Members Decide to Wind up Firm --------------------------------------------- At the extraordinary general meeting of the members of GMD Mouldings Limited on March 7, 2005 held at 4 St Giles Court, Southampton Street, Reading RG1 2QL, the special resolution to wind up the company was passed. P. R. Boyle of Harrisons, 4 St Giles Court, Southampton Street, Reading RG1 2QL has been appointed liquidator of the company. CONTACT: HARRISONS 4 St Giles Court, Southampton Street, Reading RG1 2QL Phone: 0118 951 0798 Fax: 0118 939 4409 E-mail: info@harrisons.uk.com Web site: http://www.harrisons.uk.com INTERNAL WINDOW: Construction Company Goes into Administration -------------------------------------------------------------- Paul Stanley (IP No 1065) and David Moore (IP No 7510) have been appointed administrators for Internal Window Systems Limited. The appointment was made March 7, 2005. The company manages other special trades construction. Its registered office is located at 1 Abbots Quay, Monks Ferry, Birkenhead, Merseyside L41 5LH. CONTACT: BEGBIES TRAYNOR Elliot House 151 Deansgate Manchester M3 3BP Phone: 0161 839 0900 Fax: 0161 839 7436 E-mail: manchester@begbies-traynor.com Web site: http://www.begbies.com BEGBIES TRAYNOR No 1 Old Hall Street, Liverpool L3 9HF Phone: 0151 227 4010 Fax: 0151 227 4009 Web site: http://www.begbies.com MARCONI CORPORATION: To Meet Union Over Job-cuts Next Week ---------------------------------------------------------- Amicus representatives will meet with managers at Marconi on Tuesday, March 22, 2005 discuss the proposed closure of the company's Chorley plant. The company announced Friday that the Chorley site that manufactures payphones will close down on a phased basis over the course of 2005 once current contracts are honored. Amicus regional officer Steve Power said: "This is a great loss for Chorley and is another nail in the coffin of U.K. manufacturing. Amicus will be seeking to establish the timescale of the closure and also details of severance packages for those staff affected by the closure." Amicus national officer, Peter Skyte said: "This is a further example of the lack of consultation from the company which has increasingly become a pattern for Marconi." CONTACT: AMICUS Karen Viquerat Frank Corless Phone: +44-(0)1704-546-500 MEE COM: Joint Administrators from Begbies Traynor Move in ---------------------------------------------------------- W. John Kelly and James P. N. Martin (IP Nos 004857, 8316) have been appointed joint administrators for Mee Com Limited. The appointment was made March 8, 2005. The company manufactures electrical materials. Its registered office is located at Wolverhampton Science Park, Glaisher Drive, Wolverhampton WV10 9RU. CONTACT: BEGBIES TRAYNOR 4th Floor Newater House 11 Newhall Street Birmingham West Midlands B3 3NY Phone: 0121 200 8151 or 0121 200 8150 Fax: 0121 200 8160 E-mails: john.kelly@begbies-traynor.com james.martin@begbies-traynor.com NEW DRIVING: Hires Administrators from Kroll Limited ---------------------------------------------------- A. J. Wolstenholme and J. M. Wright (IP Nos 8995, 9152) have been appointed administrators for New Driving Initiatives Limited. The appointment was made March 9, 2005. CONTACT: KROLL BUCHLER PHILLIPS LTD. Aspect Court 4 Temple Row Birmingham West Midlands B2 5HG Phone: 0121 212 4999 Fax: 0121 212 4944 E-mail: jwright@krollworldwide.com NTL INC.: Sale of Irish Arm Near -------------------------------- Cable firm NTL is close to selling its Irish operation following offers from suitors from Ireland, the UK and the United States. Pan-European cable operator UGC has been tipped as among the potential bidders of the division, which has been valued at up to IEP300 million. The Irish arm has 347,800 customers in Dublin, Galway and Waterford. Investment bank Goldman Sachs is leading the sale process. Mr. Sachs sold the group's broadcasting business for GBP1.27 billion in January. Meanwhile, Chief Executive Simon Duffy said the division might be sold in at least two months, but warned that NTL might consider retaining it. In the last three months of 2004, the number of new subscribers to NTL's UK business plunged to 20,7000 household customers from the 58,400 subscriptions it received in the same period a year earlier. The UK network also suffered an increase in the number of subscribers who did not renew their contracts following the implementation of a tighter credit policy. Mr. Duffy said the collection division also struggled to clear out non-paying customers, causing the firm to downsize the number of its collection offices from eight to only four last year. However, the network said full-year revenue rose 5.7% to just over GBP2 billion and the pre-tax loss narrowed from GBP583.7 million to GBP484.2 million. It is now offering TV, telephone and Internet services to 3.14 million residential customers, an increase of 3.8% on 2003. CONTACT: NTL INCORPORATED Bartley Wood Business Park Bartley Way Hook Hampshire R627 9UP Phone: +44-1256-75-2000 Fax: +44-1256-75-4100 Web site: http://www.ntl.com OPM MANAGEMENT: Names Liquidator from PKF ----------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF OPM Management Services Limited (In Liquidation) I, Anne Buchanan, Chartered Accountant, PKF, 78 Carlton Place, Glasgow G5 9TH, hereby give notice that I was appointed Liquidator of OPM Management Services Limited by a Resolution of a Meeting of Creditors, duly convened and held in 78 Carlton Place, Glasgow G5 9TH, under the terms of section 138 of the Insolvency Act 1986 and Rule 4.12 of the Insolvency (Scotland) Rules 1986, on February 28, 2005. A Liquidation Committee was formed at this Meeting. Anne Buchanan, Liquidator March 2, 2005 CONTACT: PKF 78 Carlton Place Glasgow G5 9TH Phone: 0141 4295900 Fax: 0141 4295901 E-mail: info.glasgow@uk.pkf.com Web site: http://www.pkf.co.uk Anne Buchanan E-mail: anne.buchanan@uk.pkf.com Phone: 0141 418 1119 Fax: 0141 429 1210 PASHMINA RESTAURANT: Meeting of Creditors Set Later this Month -------------------------------------------------------------- The creditors of meeting of Pashmina Restaurant Riverside Limited will meet on March 30, 2005 at 10:30 a.m. It will be held at Re10, Trinity House, Heather Park Drive, Wembley, Middlesex HA0 1SU. Creditors who want to be represented at the meeting may appoint proxies. Proxy forms must be submitted together with written debt claims to Re10, Trinity House, Heather Park Drive, Wembley, Middlesex HA0 1SU not later than 12:00 noon, March 29, 2005. Contact: D. M. PATEL & CO. 40 Great James Street London WC1N 3HB Phone: 020 7430 9697 Fax: 020 7430 9697 SAMACO LIMITED: Administrators from Begbies Traynor Move in ----------------------------------------------------------- Jamie Taylor and David Paul Hudson (IP Nos 002748, 008977) have been appointed administrators for Samaco Limited. The appointment was made March 8, 2005. Its registered office is located at 32 Queen Anne Street, London W1G 8HD. CONTACT: BEGBIES TRAYNOR The Old Exchange, 234 Southchurch Road Southend-on-Sea SS1 2EG Phone: 01702 467255 Fax: 01702 467201 E-mail: southend@begbies-traynor.com Web site: http://www.begbies.com SBH CRUSHING: Hires Administrator from Houghton Stone Business -------------------------------------------------------------- Simon Thornton (IP No 9031) has been appointed administrator for SBH Crushing & Recycling Ltd. The appointment was made March 8, 2005. The company is engaged in crushing and recycling material and soil. CONTACT: HOUGHTON STONE BUSINESS RECOVERY LIMITED The Conifers Filton Road Hambrook Bristol Avon BS16 1QG Phone: 0117 957 9009 Fax: 0117 957 9001 E-mail: simon_thornton@houghtonstone.co.uk SILVER MINDS: DCD Trade Services Appoints Receiver -------------------------------------------------- DCD Trade Services Limited appointed Paul Michael Davis and Timothy John Edward Dolder (Office Holder Nos 7805, 9008) joint administrative receivers for Silver Minds Direct (UK) Limited (Reg No 3678709, Trade Classification: 22 Other Retail). The application was filed Feb. 28, 2005. CONTACT: BEGBIES TRAYNOR Chiltern House, 24-30 King Street, Watford WD18 0BP Phone: 01923 812900 Fax: 01923 812999 Web site: http://www.begbies.com SO FRESH: National Westminster Bank Appoints Receiver ----------------------------------------------------- National Westminster Bank Plc called in Philip Andrew Revill and Andrew Philip Wood joint administrative receivers for So Fresh Seafoods Limited (Reg No 04153068). The application was filed March 7, 2005. CONTACT: THE P & A PARTNERSHIP 93 Queen Street Sheffield South Yourksire S1 1WF Phone: 0114 275 5033 Fax: 0114 276 8556 E-mails: philrevill@thepandapartnership.com andywood@thepandapartnership.com UNITY-BRISTOL LIMITED: Names B N Jackson Norton Administrator ------------------------------------------------------------- Graham Lindsay Down (IP No 6600) has been appointed administrator for Unity-Bristol Limited. The appointment was made March 7, 2005. The company offers educational services. CONTACT: B N JACKSON NORTON 14 Orchard Street Bristol Avon BS1 5EH Phone: 0117 905 5110 Fax: 0117 905 5384 E-mail: gdown@bnjn.com VAN BENTLEY: Claims Filing Period Expires Later this Month ---------------------------------------------------------- IN THE MATTER OF THE INSOLVENCY ACT 1986 and IN THE MATTER OF Van Bentley Limited (In Liquidation) I, J. M. Hall, Chartered Accountant, 9 Coates Crescent, Edinburgh EH3 7AL, hereby give notice pursuant to Rule 4.19 of the Insolvency (Scotland) Rules 1986 that I was appointed Liquidator of Van Bentley Limited by Resolution of the First Meeting of Creditors held on February 25, 2005. A Liquidation Committee was established. All Creditors who have not already done so are required to lodge their claims with me by March 31, 2005. J. M. Hall, Liquidator February 25, 2005 CONTACT: HAINES WATTS 9 Coates Crescent Edinburgh EH3 7AL Phone: 0131 225 4661 Fax: 0131 225 4663 Web site: http://www.hwca.com John Michael Hall E-mail: jhall@hwca.com WEST HYDE: Calls in Joint Administrators from Begbies Traynor ------------------------------------------------------------- W. John Kelly and James P. N. Martin (IP Nos 004857, 8316) have been appointed joint administrators for West Hyde Enclosures Limited. The appointment was made March 8, 2005. The company manufactures metal. Its registered office is located at Wolverhampton Science Park, Glaisher Drive, Wolverhampton WV10 9RU. CONTACT: BEGBIES TRAYNOR 4th Floor Newater House 11 Newhall Street Birmingham West Midlands B3 3NY Phone: 0121 200 8151 or 0121 200 8150 Fax: 0121 200 8160 E-mails: john.kelly@begbies-traynor.com james.martin@begbies-traynor.com ********* 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, Julybien Atadero and Jay Malaga, 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. 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