TCREUR_Public/050523.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                           E U R O P E

              Monday, May 23, 2005, Vol. 6, No. 100

                            Headlines

A U S T R I A

BAUHOLDING STRABAG: S&P Affirms Long-term 'BB' Rating


F I N L A N D

M-REAL CORPORATION: Lockout to Cost EUR10 Million a Week


F R A N C E

EURO DISNEY: Andre Lacroix Steps down
FAUCHON: Selling Paris Stores to Lenotre
KAUFMAN & BROAD: S&P Affirms Lower-B Ratings


G E R M A N Y

A.R.A.G.O.N. IMMOBILIEN: Under Bankruptcy Administration
AUTO EICKE: Court Appoints Dr. Schroder Interim Administrator
BASTION HANDELS: Court to Verify Claims July
DAIMLERCHRYSLER AG: Scraps Production of New Convertible
OPTIK HERCHE: Creditors Meeting Set July
PROTECK GMBH: Proofs of Claim Due Next Month
ZEIT & HABEN: Claims Deadline Nears


I T A L Y

EDISON SPA: Moody's Lifts Unsecured Rating to Baa2
PARMALAT FINANZIARIA: Citibank Wants Rescue Plan Annulled


K Y R G Y Z S T A N

BAKYT: Proofs of Claim Deadline Expires July
KADAMJAY COOPERATIVE: Bankruptcy Supervision Starts
OSHSKOYE PATP-2: Sets Public Auction Tomorrow
RAHAT-AIDARKEN: Calls Creditors Meeting


N E T H E R L A N D S

KONINKLIJKE AHOLD: Holds on to U.S. Foodservice Operations
VERSATEL N.V.: Shareholders Pass All AGM Resolutions


R U S S I A

BASHKIR-AGRO-PROM-DOR-STROY: Declared Insolvent
BASH-ZAURAL-STROY: Creditors Have Until June 16 to File Claims
BLAG-BAKERY: Bankruptcy Hearing Set June
BUILDING CORPORATION: Bankruptcy Proceedings Begin
BUILDING SITE: Declared Insolvent

CHUVASH-MOL-PROM: Succumbs to Bankruptcy
INTERCONTACT: Bankruptcy Hearing Set September
PULSE: Under Bankruptcy Supervision
SVOBODNYJ-GAS: Undergoes Bankruptcy Supervision Procedure
THERMAL NETS: Deadline for Proofs of Claim June 9


S W E D E N

SKANDIA INSURANCE: Skandia Liv Appoints Acting CEO


S W I T Z E R L A N D

SWISS INTERNATIONAL: Narrows First-quarter Net Loss


U K R A I N E

A.B. GROUP: Under Bankruptcy Supervision
ANTRATSIT' AUTO 10962: Succumbs to Insolvency
ARGON: Insolvency Manager Takes over Helm
KRAMATORSK' TECHNICAL: Court Grants Debt Moratorium
MISKREMBUD: Declared Insolvent

MOKRYANSKIJ STONE: Court Appoints Insolvency Manager
PRIGORODNE: Liquidator Takes over Operations
UKRSIBBANK: Fitch Affirms 'B-' Long-term Rating
VIP: Kyiv Court Opens Bankruptcy Proceedings
WIZARD: Bankruptcy Supervision Starts
ZHITOMIR' BUILDING: Zhitomir Court Opens Bankruptcy Proceedings


U N I T E D   K I N G D O M

ALLIED DOMECQ: Pernod's Shareholder to Vote on Takeover Proposal
ALMA CARE: Appoints P&A Partnership Liquidator
CALIBER SERVICES: Hires Liquidator from Tomlinsons
CHESFIELDS LIMITED: Members Pass Winding-up Resolutions
CLOTHES AT WORK: Members Hire Liquidator from Gibson Booth

DATA MOBILITY: Appoints H R Harris & Partners Liquidator
FIRSTORION LIMITED: Liquidator from Gallagher & Co Moves in
FLAIR PRODUCTS: Hires Liquidator from Elwell Watchorn
FLOORLINE DIRECT: Liquidator from Rimmer Higson Moves in
FORTE HOMES: Members Decide to Wind up Company

FRIENDLY LIFE: Appoints Butcher Woods Liquidator
G 2 B JOINERY: Members Pass Extraordinary Resolution
GILDA PRODUCTS: Members Decide to Wind up Firm
GOSPORT SEALED: Hires Liquidators from Portland Business
GRAFIX DISTRIBUTION: Members Pass Winding-up Resolutions

GREGSON MECHANICAL: Calls in Liquidator from F A Simms
HAMILTON CHESS: Members Hire Begbies Traynor Liquidator
I-BUS LIMITED: Business for Sale
INVENSYS PLC: Cash Resources not Affected by IFRS Adoption
LCCH LIMITED: Names Liquidator from Vantis Business Recovery

MARCONI CORPORATION: Reports 5% Growth in Sales
MG ROVER: It's Down to Three Bidders
MILLBROOK CLUB: Hires BDO Stoy Hayward Liquidator
MOWLEM PLC: Chairman Prepares to Step Down
NORFROST LIMITED: Administration Leaves 74 Jobless
PORTVIEW INTERIORS: Names Grant Thornton Liquidator
SNOWBAY LIMITED: Calls in Liquidator from Marks Bloom


                            *********


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


BAUHOLDING STRABAG: S&P Affirms Long-term 'BB' Rating
-----------------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
Austria-based engineering and construction group Bauholding
Strabag SE (BHS) to positive from stable, owing to its solid
business performance in 2004 despite continued difficult market
conditions in Germany.  At the same time, the 'BB' long-term
corporate credit and senior unsecured debt ratings on BHS were
affirmed.

"The outlook revision reflects BHS' strong position in road
construction in Central Europe in view of E.U.-sponsored
investment programs for expanding and upgrading the Central and
Eastern European infrastructure networks," said Standard &
Poor's credit analyst Izabela Listowska.  The company reported
an increased order backlog of EUR5.0 billion at Dec. 31, 2004,
compared with EUR3.6 billion in 2003, following a significant
rise in road projects in Eastern Europe.

"Nevertheless, BHS' credit profile is weighed down by periodic
acquisitions and the demand for extraordinary dividends to
capitalize newly established road concessions company A-WAY
Holding und Finanz AG (A-WAY), a sister company to BHS," said
Ms. Listowska.

The recent acquisition of Dywidag Holding GmbH (Dywidag), part
of insolvent construction company Walter Bau AG, has allowed BHS
to increase it share of the relatively stable road construction
business and constitutes a step toward consolidation in the very
fragmented German construction industry.

Nevertheless, it also introduces integration and financial
risks, such as potential losses due to contract exposure not
revealed in the due-diligence process, and increases BHS'
exposure to the difficult German construction market.

BHS' operating results for the full-year 2004 were solid, with
an EBITDA margin of about 6% and funds from operations (FFO) to
gross debt of 31%.  However, the lack of free cash flow
generation remains the key rating constraint for BHS.

"The ratings on BHS could be raised if the company maintains its
financial profile in 2005 and beyond," said Ms Listowska. "To
secure an upgrade, FFO to total debt should remain above 25%,
and the company should generate free operating cash flow."

A more aggressive dividend policy and/or continued extraordinary
dividends to fund A-WAY would make it more difficult to achieve
an upgrade.  The potential acquisition of Zueblin AG, the fifth
largest German construction company, is factored into the
ratings and outlook.

Ratings information is available to subscribers of RatingsDirect
at http://www.ratingsdirect.com. It can also be found at
http://www.standardandpoors.com. Alternatively, call one of
the following Standard & Poor's numbers: London Ratings Desk
(44) 20-7176-7400; London Press Office Hotline (44) 20-7176-
3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225;
Stockholm (46) 8-440-5916; or Moscow (7) 095-783-4017.  Members
of the media may also contact the European Press Office via e-
mail: media_europe@standardandpoors.com

CONTACT:  STANDARD AND POOR'S RATING SERVICES
          Group E-mail Address
          CorporateFinanceEurope@standardandpoors.com


=============
F I N L A N D
=============


M-REAL CORPORATION: Lockout to Cost EUR10 Million a Week
--------------------------------------------------------
The lockout declared earlier by the Finnish Forest Industries
Federation started 18 May at 6 a.m. in all the M-real mills in
Finland.  The lockout is to end on 1 June at 6 a.m. unless the
parties have not concluded a collective labor agreement before
that.

The Finnish Forest Industries Federation on 17 May declared a
new lockout, which will immediately follow the previous one and
end on 15 June at 6 a.m. unless agreement is reached before
that.

M-real estimates that the lockout would weaken its operating
result by EUR5-10 million per week.

                            *   *   *

In February, Standard & Poor's Ratings Services lowered its
long-term corporate credit rating on M-real Corp. to 'BB' from
'BB+'.  The 'B' short-term corporate credit rating on M-real was
affirmed. The outlook is stable.

"The downgrade reflects M-real's continued weaker than expected
operating performance and credit protection measures, which are
not expected to improve materially over the near to medium
term," said Standard & Poor's credit analyst Alf Stenqvist.

The weak operating cash flows reflect weak paper prices for the
group's main products (primarily fine papers), negative currency
effects, and operating inefficiencies, he said.

CONTACT:  M-REAL CORPORATION
          Aarre Metsavirta,
          Senior Executive Vice President and Deputy CEO
          Phone: +358 50 1460


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


EURO DISNEY: Andre Lacroix Steps down
-------------------------------------
Euro Disney S.C.A. disclosed Friday that Karl Holz, president
and chief operating officer of Euro Disney S.A.S, will assume
the responsibilities previously held by Andre Lacroix, who is
leaving the company to pursue other opportunities.

Jay Rasulo, president of Walt Disney Parks and Resorts, said: "I
thank Andre -- and I wish him the best."

Mr. Lacroix said: "I would like to thank all the Cast Members
and the management of Euro Disney for their commitment to the
Company.  I am confident in the future of Disneyland Resort
Paris.  The growth strategy is in place with an unprecedented
multi-year innovation program."

Mr. Holz joined Euro Disney in September 2004 as president and
chief operating officer.  Effective immediately, he will assume
full responsibility for all aspects of the business.

Mr. Rasulo said: "Since his arrival, Karl has successfully
overseen the day to day operations of the Resort.

"With the financial restructuring of Euro Disney now complete,
Karl's wide-ranging operations experience and commitment to
Disney's excellent Guest service will be a great asset to our
team as they pursue the long term growth strategy for the
Disneyland Paris Resort."

During his nine-year career with Disney, Mr. Holz has held a
number of leadership positions.  Prior to his Euro Disney
appointment, Mr. Holz served as president of Disney Cruise Line.
Mr. Holz also served as senior vice president of Walt Disney
World Operations, where he managed the day-to-day operations of
Epcot and Disney-MGM Studio; the Downtown Disney retail, dining
and entertainment district, and 11 Walt Disney World resort
hotel properties.  Before joining Disney, Mr. Holz was vice
president of theme park operations at Knott's Berry Farm in
Southern California and was previously president and CEO of
Concessions Air, Inc.

CONTACT:  EURO DISNEY S.C.A.
          Corporate Communication
          Pieter Boterman
          Phone: +331 64 74 59 50
          Fax: +331 64 74 59 69
          E-mail: pieter.boterman@disney.com

          Investor Relations
          Fiona Lord Duarte
          Phone: +331 64 74 58 55
          Fax: +331 64 74 56 36
          E-mail: fiona.lord.duarte@disney.com


FAUCHON: Selling Paris Stores to Lenotre
----------------------------------------
Luxury food retailer Fauchon will sell nine of its Paris outlets
to rival Lenotre, Les Echos says.

Aside from Fauchon's nine stores, Lenotre will also acquire the
group's food preparation site in Fresnes.  Both groups declined
to divulge the sale price, but it is expected Lenotre would not
pay beyond EUR38 million, the price when Fauchon first acquired
the outlets from retail group Flo.  Lenotre will retain the
stores' 330 employees as part of the deal.  Following the deal,
Lenotre will have 17 shops in Paris and around 40 franchises
abroad.

Prior to the deal, Fauchon had already shut down two stores,
after booking EUR3.5 million in net loss and EUR25 million in
sales for the first quarter of 2005.  The group recently
underwent a EUR12 million capital increase.

CONTACT:  FAUCHON
          26 Place de la Madeleine
          75008 Paris
          Web site: http://www.fauchon.fr
          Contact:
          Claudie Lepeltier
          Phone: 01 70 39 38 17
          E-mail: clepeltier@fauchon.fr

          LENOTRE
          44 rue d'Auteuil
          75016 Paris, France
          Web site: http://www.lenotre.fr
          Contact:
          Alexandra Peyromaure
          Phone: 01 30 81 47 42
          E-mail: peyromaure_alexandra@lenotre.fr


KAUFMAN & BROAD: S&P Affirms Lower-B Ratings
--------------------------------------------
Standard & Poor's Ratings Services revised its outlook on
France-based residential property developer Kaufman & Broad S.A.
(KBSA) to positive from stable, reflecting the company's
continued solid business and financial performance.  At the same
time, the 'BB' long-term corporate credit and 'BB-' senior
unsecured debt rating on KBSA were affirmed.

"The outlook revision follows continued stability in KBSA's
operating performance, owing to the group's robust planning and
monitoring procedures as well as favorable residential market
development in France," said Standard & Poor's credit analyst
Izabela Listowska.  "It also reflects our expectation that the
group's financial profile will strengthen again after the recent
deterioration triggered by the ?85 million debt and cash-
financed purchase of future royalties due to its U.S. parent KB
Home (BB+/Stable/--)."

Buoyant residential construction activity continued in France in
the fiscal year 2004, ended Nov. 30, and in the first quarter of
2005, ended Feb. 28.  KBSA expects housing revenues to increase
by 15%-20% over the full fiscal year 2005 and reported a housing
backlog of about 10 months at Feb. 28, 2005.

"The rating on KBSA could be raised if credit measures bounce
back to higher levels following the negative impact of the
recent non-recurrent royalties transaction.  This assumes
sustained generation of positive free cash flow after dividends
and acquisitions, and an overall moderate financial policy,"
said Ms. Listowska.  "A turnaround in the French residential
construction market or/and any additional extraordinary payments
to shareholders could have a negative impact on the ratings."

Ratings information is available to subscribers of RatingsDirect
at http://www.ratingsdirect.com. It can also be found at
http://www.standardandpoors.com. Alternatively, call one of
the following Standard & Poor's numbers: London Ratings Desk
(44) 20-7176-7400; London Press Office Hotline (44) 20-7176-
3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225;
Stockholm (46) 8-440-5916; or Moscow (7) 095-783-4017.  Members
of the media may also contact the European Press Office via e-
mail: media_europe@standardandpoors.com.

CONTACT:  STANDARD AND POOR'S RATING SERVICES
          Group E-mail Address
          CorporateFinanceEurope@standardandpoors.com


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


A.R.A.G.O.N. IMMOBILIEN: Under Bankruptcy Administration
--------------------------------------------------------
The district court of Charlottenburg opened bankruptcy
proceedings against A.R.A.G.O.N. Immobilien GmbH on April 29.
Consequently, all pending proceedings against the company have
been automatically stayed.  Creditors have until July 22, 2005
to register their claims with court-appointed provisional
administrator Dr. Wolfgang Schroder.

Creditors and other interested parties are encouraged to attend
the meeting on June 15, 2005, 11:10 a.m. at the district court
of Charlottenburg, Amtsgerichtsplatz 1, 14057 Berlin, II. Stock
Saal 218, at which time the administrator will present his first
report of the insolvency proceedings.  The court will verify the
claims set out in the administrator's report during on September
21, 2005, 10:50 a.m.

CONTACT:  A.R.A.G.O.N. IMMOBILIEN GMBH
          Rheingaustr. 23,12161 Berlin

          Wolfgang Schroder, Administrator
          Genthiner Str. 48, 10785 Berlin


AUTO EICKE: Court Appoints Dr. Schroder Interim Administrator
-------------------------------------------------------------
The district court of Charlottenburg opened bankruptcy
proceedings against Auto Eicke GmbH on May 1.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until July 25, 2005 to register their
claims with court-appointed provisional administrator Dr.
Wolfgang Schroder.

Creditors and other interested parties are encouraged to attend
the meeting on June 15, 2005, 10:40 a.m. at the district court
of Charlottenburg, Amtsgerichtsplatz 1, 14057 Berlin, II. Stock
Saal 218, at which time the administrator will present his first
report of the insolvency proceedings.  The court will verify the
claims set out in the administrator's report on September 21,
2005, 10:35 a.m.

CONTACT:  AUTO EICKE GMBH
          Curtiusstr. 20-26,12205 Berlin

          Dr. Wolfgang Schroder, Administrator
          Genthiner Str. 48, 10785 Berlin


BASTION HANDELS: Court to Verify Claims July
--------------------------------------------
The district court of Aachen opened bankruptcy proceedings
against Bastion Handels GmbH on May 4.  Consequently, all
pending proceedings against the company have been automatically
stayed.  Creditors have until June 6, 2005 to register their
claims with court-appointed provisional administrator Dirk-
Henning Tonnesmann.

Creditors and other interested parties are encouraged to attend
the meeting on July 18, 2005, 9:40 a.m. at the district court of
Aachen, Nebenstelle Augustastrasse, Augustastrasse 78/80, 52070
Aachen, II. Etage, Zimmer 21, 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:  BASTION HANDELS GMBH
          Schutzenstr. 22, 52428 Julich
          Contact:
          Franz Schmitz, Manager
          Burg 10, 53902 Bad Muenstereifel

          Dirk-Henning Tonnesmann, Administrator
          Josef-Ruhr-Strasse 30, 53879 Euskirchen
          Phone: 02251/65081-22
          Fax: 02251/6508125


DAIMLERCHRYSLER AG: Scraps Production of New Convertible
--------------------------------------------------------
DaimlerChrysler AG's Mercedes Car Group has dropped its proposed
new convertible model, predicting its price would scare buyers
away.

Quoting people from the company, the Frankfurter Allgemeine
Zeitung reported Friday the model's proposed price of EUR24,700
is too high.

The cancellation was reportedly part of the division's cost-
cutting and efficiency improvement measures as well as its goal
to achieve a 7 percent sales margin in two years.  Losses
incurred by Mercedes have reportedly dragged down
DaimlerChrysler's first quarter earnings to EUR288 million, a
30% decrease from last year's figure.

The division registered operating losses of EUR945 million,
mostly due to the EUR512 million that was spent to revamp its
losing Smart venture.  Smart, which loses EUR4,000 for each car
sold, is expected to lose another EUR400 million this year as
part of its ongoing reorganization.  It is also likely to miss
its annual sales goal of 80,000 units, with only 14,500 Smart
Fourfour models sold in the first quarter.

CONTACT:  DAIMLERCHRYSLER AG
          70546 Stuttgart, Germany
          Phone: +49 711 17 0
          Fax: +49 711 17 22244
          Web site: http://www.daimlerchrysler.com


OPTIK HERCHE: Creditors Meeting Set July
----------------------------------------
The district court of Bonn opened bankruptcy proceedings against
Optik Herche GmbH on May 1.  Consequently, all pending
proceedings against the company have been automatically stayed.
Creditors have until June 30, 2005 to register their claims with
court-appointed provisional administrator Ruediger Stoll.

Creditors and other interested parties are encouraged to attend
the meeting on July 28, 2005, 10:00 a.m. at the district court
of Bonn, Insolvenzgericht, Wilhelmstrasse 21, 53111 Bonn, 1.
Stock, Saal W126, 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:  OPTIK HERCHE GMBH
          Friedrich Breuer Str. 104, 53225 Bonn
          Contact:
          Heinz Herche, Manager

          Ruediger Stoll, Administrator
          Sankt Augustiner Strasse 94 a, 53225 Bonn
          Phone: 0228/ 40 09 40
          Fax: 40 09 479


PROTECK GMBH: Proofs of Claim Due Next Month
--------------------------------------------
The district court of Essen opened bankruptcy proceedings
against PROTECK GmbH on May 1.  Consequently, all pending
proceedings against the company have been automatically stayed.
Creditors have until June 20, 2005 to register their claims with
court-appointed provisional administrator Bernd Depping.

Creditors and other interested parties are encouraged to attend
the meeting on July 11, 2005, 10:00 a.m. at the district court
of Essen, Hauptstelle, Zweigertstr. 52, 45130 Essen, 2. OG,
gelber Bereich, Saal 293, 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:  PROTECK GMBH
          Cathostr. 1, 45356 Essen
          Contact:
          Guenter Dombrowski, Manager
          Michael Eck, Manager

          Bernd Depping, Administrator
          Alfredstr. 108-112, 45131 Essen
          Phone: (0201) 879040
          Fax: 02018790412


ZEIT & HABEN: Claims Deadline Nears
-----------------------------------
The district court of Bamberg opened bankruptcy proceedings
against Zeit & Haben AG on April 29.  Consequently, all pending
proceedings against the company have been automatically stayed.
Creditors have until May 30, 2005 to register their claims with
court-appointed provisional administrator Joachim Exner.

Creditors and other interested parties are encouraged to attend
the meeting on July 13, 2005, 1:00 p.m. at the district court of
Bamberg, Sitzungssaal 317, Synagogenplatz 1, 96047 Bamberg, 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 at the same
venue.

CONTACT:  ZEIT & HABEN AG
          Karolinenstr. 16 in 96049 Bamberg

          Joachim Exner, Administrator
          Stahlstr. 17, 90411 Nuernberg
          Phone: 0911/9512850
          Fax: 0911/951285-10


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


EDISON SPA: Moody's Lifts Unsecured Rating to Baa2
--------------------------------------------------
Moody's Investors Service upgraded on May 19 Edison S.p.A.'s
senior unsecured ratings to Baa2 from Baa3.  Moody's has also
upgraded the rating of Edison's guaranteed subsidiary, Selm
Holding International S.A., to Baa2 from Baa3.  All ratings have
a stable outlook.  The rating action concludes a review of the
group's ratings initiated on February 23, 2005.

The rating action is primarily based on:

(a) a noticeable strengthening of Edison's financial profile,
    with 2004 results marginally exceeding Moody's expectations;

(b) Moody's assumption that Edison will continue to strengthen
    its key debt protections metrics as it becomes more exposed
    to Italian wholesale power prices;

(c) Edison's recent successes in bringing on-stream new power
    generation capacity; and

(d) The recent favorable resolution of Edison's ownership
    structure, which will see Electricite de France (EDF, rated
    Aa3, stable outlook) and AEM S.p.A. become joint
    shareholders in Edison.

At the same time, Edison's ratings remain constrained by
execution risk related to the group's ongoing investment program
in electricity and gas, as well as event risk associated with
shareholder actions which could see the company accelerate
dividend payments in support of new debt raised to acquire
Edison.

Having spent the past two years restructuring the business by
disposing of approximately EUR10 billion in revenues from non-
core operations, Edison is today a focused domestic electric and
gas utility business.  Moody's notes that management's
successful completion of the company's restructuring, the
substantial reductions in debt from EUR15 billion in 2001 to
just over EUR5.0 billion (including EUR1.1 billion from
Edipower) and the gradual strengthening of its cash-generating
ability and debt protection ratios have improved Edison's credit
quality, which is now commensurate with a Baa2 rating.

At year-end 2004, Edison's retained cash flow (RCF)-to-net
adjusted debt ratio was 11.8% and funds from operations covered
interest expense 4.1 times.  While the rating action is
supported by Edison's improving ratios, it also assumes that
management will continue to strengthen the group's financial
profile, as the cash flow contribution from stable CIP-6
contracts declines and is replaced by higher-risk merchant
revenues, as well as greater take-or-pay exposure in Edison's
growing gas business.  The Baa2 rating incorporates Moody's
expectation that Edison's RCF-to-debt ratio will further improve
to and beyond the mid-teens over the medium-term rating horizon,
and towards 20% over the longer term to support the group's
gradually higher business risk profile.  Similarly, FFO should
cover interest 4 -- 5 times over the medium term and migrate
closer towards 5 -- 6 times over the longer term.

Moody's added that Edison's ratings incorporated the expectation
that the group's new shareholders may use the newly established
holding company set up to acquire Edison to raise some
acquisition debt.  Moody's emphasized that any new debt situated
at an immediate holding company of Edison, which is not
guaranteed by its shareholders, would likely be serviced from
Edison's cash flows and therefore added to Edison's current
debt.  Moody's continued that this and any resulting step-change
in dividends added some concern to Edison's ability to
strengthen its financial profile in line with Moody's
expectations over the short to medium term.  Accordingly,
Moody's ratings assume that Edison's shareholders will align any
unsupported debt raised at the new holding company with Edison's
ongoing requirements to strengthen its financial profile in
accordance with aforementioned parameters.

Moody's emphasized Edison's improved liquidity, which benefits
from minimal debt maturities over the next 12 months and a
committed and unutilized revolving credit facility of EUR1.5
billion as liquidity back-up.  Edison faces some refinancing
risk in 2007, when approximately EUR1.4 billion in bonds mature,
but may benefit from the conversion of warrants of around EUR1.0
billion, which Moody's assumes.

While Moody's expects Edison's capital expenditure to peak in
2005, ratings assume that the group's investments can be
encompassed from internal cash generation and Edison will remain
free cash flow positive going forward.  No significant
acquisitions are factored into the rating, although Edison may
undertake smaller E&P (exploration & production) transactions to
strengthen its equity gas.

Moody's also mentions Edison's ongoing success in bringing on-
stream new generation capacity, which in 2005 alone will rise
from 6.5GW at year-end 2004 to 8.5GW (excluding Edipower).
Edison will bring on-stream 800MW from its new Altomonte CCGT
plant later this year; the 400MW Candela plant is on schedule to
commence operations in July 2005, while the 800MW Torviscosa
plant is due to come on-stream in January 2006.  In total,
Edison intends to have total capacity of 10.0GW by 2008 (14.0GW
including Edison's 50% share from Edipower).  Moody's ratings
assume gradual moderate declines in Italian wholesale power
prices from their currently exceptionally high levels as Italy's
generation and interconnector capacity improves.  Nonetheless,
Moody's believes that Italian power prices are likely to
continue trading at a premium to EU averages over the
foreseeable future.

Furthermore, Moody's believes that the involvement of AEM S.p.A.
-- one of Italy's largest regional utilities -- as an equal
shareholder will prove beneficial for Edison's commercial
strategy, given its strong reliance on regional alliances to tap
new commercial opportunities.  Going forward, ratings could
benefit, if Edison's business risk profile evolves closer to an
integrated utility.

Edison S.p.A. is headquartered in Milan, Italy, and in 2004
reported net revenues of EUR5.7 billion and EBITDA of EUR1.2
billion.  In its electric power business, Edison is number two
domestic with a production share of around 17% in 2004
(including its 50% stake in Edipower) and total capacity of
6,500 MW (9,600MW including Edipower).  In its gas and
hydrocarbon business, Edison is the number three with sales of
11bcm and a domestic share of Italian gas sales of 14% in 2004.

CONTACT:  MOODY'S INVESTORS SERVICE LTD. (LONDON)
          Philipp L. Lotter, Vice President - Senior Analyst
          Corporate Finance
          Phone: (Journalists) 44 20 7772 5456
                 (Subscribers) 44 20 7772 5454

          Stuart Lawton, Managing Director
          Corporate Finance
          Phone: (Journalists) 44 20 7772 5456
                 (Subscribers) 44 20 7772 5454


PARMALAT FINANZIARIA: Citibank Wants Rescue Plan Annulled
---------------------------------------------------------
Citibank has asked a local administrative court to annul the
restructuring plan of collapsed food group Parmalat Finanziaria,
Il Sole 24 Ore says.

In its appeal, the U.S. bank said the government failed to
review sufficiently Parmalat's rescue plan, which was drafted by
Parmalat administrator Enrico Bondi and approved by the industry
minister.  Citibank also maintains Parmalat is currently
embroiled in a number of lawsuits, whose uncertain outcome puts
the restructuring in jeopardy.

Parmalat is expected to return to the stock market soon.  Mr.
Bondi recently met with market regulator, Consob, raising
speculations a clearance will soon be released.  The food group
will use a new name -- Parmalat S.p.A. -- instead of the holding
company Parmalat Finanziaria S.p.A.  The holding firm will cease
to exist through the group's restructuring once shareholders
approve the debt-for-equity swap.  The dairy group was expelled
from the exchange on Dec. 29, 2003 when it collapsed under the
weight of its EUR14 billion debt.

CONTACT:  PARMALAT FINANZIARIA S.p.A.
          Legal Seat
          43044 Collecchio (Pr)
          Via Oreste Grassi, 26

          Administrative Seat
          20122 Milan
          Piazza Erculea, 9
          Phone: +39 02 806 8801
          Fax: +39 02 869 3863
          Web site: http://www.parmalat.net


===================
K Y R G Y Z S T A N
===================


BAKYT: Proofs of Claim Deadline Expires July
--------------------------------------------
LLC Bakyt, which recently became insolvent, will accept proofs
of claim until July 12, 2005.

CONTACT:  BAKYT
          Issyk-Kul region, Djarkynbayeva,
          Abdrahmanova Str. 45


KADAMJAY COOPERATIVE: Bankruptcy Supervision Starts
---------------------------------------------------
The Inter-District Court of Batken Region on Economic Issues
commenced bankruptcy supervision procedure on Kadamjay
Cooperative p. Pulgon.  Mr. Samudin Sydygaliev has been
appointed temporary insolvency manager.  Creditors will meet at
Batken region, Kadamjai, Kadamjai Garment Factory on May 31,
2005, 11:00 a.m.

Creditors must submit their proofs of claim and register with
the temporary insolvency manager seven days prior to the
meeting.  Proxies must have authorization to vote.

CONTACT:  Mr. Samudin Sydygaliev
          Temporary Insolvency Manager
          Phone: (0-32-22) 5-63-53
                 (0-36-22) 3-60-42
                 (0-502) 22-51-14


OSHSKOYE PATP-2: Sets Public Auction Tomorrow
---------------------------------------------
The bidding organizer and insolvency manager of JSC Oshskoye
PATP-2 will sell its properties on May 24, 2005, 10:00 a.m. at
Osh region, Zapadnaya Str. 4.  For sale are eight lots of buses
and drilling machines.  To participate, bidders are required to
deposit an amount equivalent to 10% of the starting price on or
before May 23, 2005.  For more information, call (0-32-22) 7-64-
52 or (0-502) 32-43-46.


RAHAT-AIDARKEN: Calls Creditors Meeting
---------------------------------------
The Inter-District Court of Batken Region on Economic Issues
commenced bankruptcy supervision procedure on LLC Rahat-
Aidarken.  Mr. Samudin Sydygaliev has been appointed temporary
insolvency manager.   Creditors will meet at Batken region,
Kadamjai, Kadamjai Garment Factory on May 31, 2005, 2:00 p.m.
Creditors must submit their proofs of claim and register with
the temporary insolvency manager seven days prior to the
meeting.  Proxies must have authorization to vote.

CONTACT:  Mr. Samudin Sydygaliev
          Temporary Insolvency Manager
          Phone: (0-32-22) 5-63-53
                 (0-36-22) 3-60-42
                 (0-502) 22-51-14


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


KONINKLIJKE AHOLD: Holds on to U.S. Foodservice Operations
----------------------------------------------------------
At the annual Koninklijke Ahold N.V. shareholders' meeting
Wednesday, Anders Moberg, President and CEO, said: "In 2003, we
said we want to operate businesses where we had obtained or
could obtain positions of market leadership.  That remains our
goal.  Our Road to Recovery strategy was designed to ensure that
we would get there.

"We have made solid progress along this road.  We are continuing
to build a strong and healthy financial foundation.  We are
moving closer to our customers.  We are better differentiating
our offering to meet our customers' needs.  We believe all of
these things are critical to our long-term success in an
increasingly competitive sector.

"Let me repeat where we stand.  We posted consolidated net sales
of EUR52 billion in 2004, some 7.3% down from 2003.  Continuing
weakness of the U.S. dollar impacted our 2004 results.  We
posted operating income of EUR208 million, which is 0.4% of net
sales, and a net loss of EUR436 million, impacted by total
exceptional items of EUR582 million.  Net debt levels at the end
of 2004 stood at EUR6.3 billion, a healthy decrease of
approximately 20% compared to the EUR7.8 billion level at the
end of 2003.

"In 2004 we pursued three main challenges:

(a) conducting our divestment program;

(b) strengthening our corporate governance; and

(c) building a foundation for future growth

Divestment Program and Proceeds

"We have carried out our divestment program with vigor.  We sold
our Spanish operations.  In Brazil, we sold our Bompreco and
Hipercard operations, entered into an agreement on the sale of
G. Barbosa, and closed the sale earlier this year, completing
our withdrawal from that country.  We also completed our
withdrawal from Asia with the sale of our operations in Thailand

in March 2004.

"In Poland, we focused on the supermarket and compact-hyper
formats which was reflected by our selling 13 large hypermarkets
earlier this year.  And in the United States, we announced the
divestment of our BI-LO and Bruno's supermarket operations,
which closed in January of this year.

"In Argentina, we received from escrow the final purchase amount
for the approximately 85% of the shares of our supermarket chain
Disco.

"So with all this behind us, aggregate gross proceeds from our
completed divestments amounted to EUR1.5 billion by the end of
2004.  By the end of March 2005, the total had risen to EUR2.6
billion.  We are therefore ahead of schedule in terms of
achieving our target of a minimum of EUR2.5 billion by the end
of 2005.

"This very positive result allowed us to terminate the 2003
restrictive credit facility in February 2005.  You may have
heard the news earlier we announced a new EUR2 billion facility
with much better terms and conditions.

"On top of this, we announced at the end of April that agreement
had been reached on the divestment of our Tops convenience
stores along the Canadian border.

"And the sale process of the planned divestment of Deli XL, our
foodservice business in the Benelux region, is ongoing.

"Our divestment program not only helps us to generate the much
needed financial resources to strengthen our balance sheet but,
just as importantly, it brings back the much needed business
focus to improve the performance of our core assets.

Corporate Governance

"The second main challenge in 2004 was corporate governance,
another significant area of attention.  Improvements begin at
home, with us, with our people.  We want to ensure that we
operate with the utmost integrity backed by rigorous controls
and to ensure that we protect our company and associates through
our business principles.  Our efforts are certainly bearing
fruit but we know that more remains to be done to attain our
ultimate goal of a robust, effective and efficient control
framework throughout the Ahold group.

"Considering where we were just two years ago, this is, no
doubt, a very ambitious goal.  But let me say this for all to
hear; we may hit some bumps here and there, we may struggle as
we try to balance our many priorities, but our ultimate goal is
crystal clear: to be among the best in the industry in this
area.  When we encounter issues, we take decisions and deal with
them.  This goes for outstanding issues as well as others we may
identify.  We are in the process of systematically addressing
the two material weaknesses that were identified in connection
with the 2004 audit and continue to improve our internal
controls.

"We started the year with a number of legal challenges.  We have
made substantial progress on that front.  To highlight a couple
of points: We settled all the U.S. Securities and Exchange
Commission's charges without admitting or denying the
allegations, by consenting to the entry of a judgment in the
U.S.  Importantly, that judgment did not require us to pay any
monetary penalty.  A factor that weighed heavily in the U.S.
SEC's decision was our extensive cooperation with its
investigation.

"The legal proceedings launched against us in the U.S., seeking
civil damages, are still ongoing.  Needless to say, we are
defending ourselves vigorously.

"And, just days into 2005, a Dutch commercial court known as the
Enterprise Chamber ordered a limited inquiry into some of the
events which led to our announcement in February 2003.  We are
fully cooperating with the inquiry.

"An example of how we continuously and very systematically
improve our corporate governance can be seen in the approach
we've taken at U.S. Foodservice.  We are working hard to re-
establish U.S. Foodservice as a viable, reliable and ethical
company that delivers value to Ahold.  We have put in place a
stronger, more transparent corporate governance and a more
robust organizational structure.  I want to take the next few
minutes to help improve your understanding of our
accountability, our standards and our enhanced controls, all of
which foster a clear and compelling culture based on shared
values.

Foundation for Future Growth

"The third main challenge was and is building a foundation for
future growth.  This is essential for our long-term
sustainability.  We re-organized our retail businesses.  We have
created 'arenas' which bring our operating companies in
comparable markets together.  This arena structure allows us to
gain deep synergies.

"Perhaps the best example of arena formation has been the
integration of Stop & Shop and Giant-Landover, two of our
leading U.S. supermarket chains.  The process was not always
smooth sailing, but the formation of this arena created a EUR
13.8 billion business in net sales.  It was costly and at times
disruptive to day-to-day business.  However, from this year on,
we expect to realize considerable savings every year from this
initiative.  The teams at Stop & Shop and Giant-Landover have
done a great job at a very high pace to bring the two companies
together.

"Thanks to the creation of the arenas, we are able to better
leverage the strengths and scale among our operating companies.
We can better serve the customer.  And we can focus on 'doing
what is right for our customers.'

"Another example of leveraging expertise in an arena is the
introduction of the Martin's format at Tops.  We tested the
winning 'every-day-low-price' format of Giant-Carlisle to re-
vitalize the Tops market.  We wanted to set a new standard in
the Tops market, and decided to use a banner, which was not
influenced by the past.  So in September 2004, we opened our
first store under the Martin's banner in western New York state.
At the beginning of April we opened our second.  Both have been
very successful from a customer satisfaction and sales
perspective.  We are convinced that this format is a key
component in making further improvements in the Tops market.

"All our trade areas are affected by price competition. When we
reduce prices, we do so with clear goals in mind.  These goals
vary from banner to banner.  They are always designed to improve
our customer offering.  And with that of our competitive
position.  Albert Heijn is a good example of how we respond to
customer needs.  The success of Albert Heijn is a combination of
the cost reduction programs and price-re-positioning.

"The price re-positioning program needs quite some investment.
We need to lower costs to be able to re-invest in our value
proposition.  Our goal is to achieve sustainable improvements in
this area.  We are going to do this by sharing the best
practices among the arenas and by leveraging our infrastructure.

"Working on cost reduction programs is a common theme throughout
our arenas.  Let me give you another example of our responding
to the needs of our customers.  In Central Europe, we have made
significant strides in moving to a more competitive cost
structure.  Simplifying the business model put in place when we
entered these markets and divesting our 13 large hypermarkets in
Poland have enhanced our competitive position in this arena.
This will be the foundation moving forward.

"Following the Stop & Shop and Giant-Landover integration, we
announced this month our key strategic operating plan for Giant-
Landover.  A plan very much focused on improving our cost
structure.  We will exit three of our manufacturing operations
and close several older warehouses.  We will sell off our office
complex and relocate our headquarters.

"At a global level, we created initiatives to reduce our cost
base.  Working as 'one Ahold' is critical.  We are increasingly
leveraging our scale through sourcing, through talent pools and
through IT development.  And to take this to a new level, we are
moving to one business model.  Mid-2004, we started a global
project within Ahold to assess all of the systems and processes
in the company.

"We are mapping these processes to define the similarities, to
define best practices, to define further cost saving
opportunities.  With this we want to create one IT strategy for
the company and a portfolio of applications.  This portfolio
will still allow us to go to market in different ways,
customized and tailor-made.  I am convinced that creating one IT
strategy is essential for us to move forward as one Ahold.

"Building a strong foundation requires clearly defined relations
with all the companies within the Ahold group.

"In 2004, we were able to base our arrangements with ICA on a
much healthier footing.  Now, we have a 60% economic ownership
in a joint venture that has operations in Sweden, Norway and the
Baltic States.  Due to this, we simplified and improved our
working relationship with ICA Forbundet.

"We are proud to have Schuitema as part of our company.  It is a
company with a strong track record.  Some of you may think our
relationship is strained.  Let me assure you that this is not
the case.  We engage in open dialogue.  We are represented on
the supervisory board and work in a constructive way.  I believe
there are many back-office synergies available with the Ahold
group.

"As communicated before, our operating targets for our food
retail business for full year 2006 are:

(a) 5% net sales growth;

(b) 5% EBITA margin; and

(c) 14% return on net assets.

"These targets are based upon the successful completion of the
harmonization initiatives and our divestment program by the end
of 2005.  These targets were formulated with Dutch GAAP in mind.
Although our conversion to IFRS has no impact on the net sales
target, the potential impact on the other targets is being
reviewed.  The targets will not be easy to hit, and targets
should never be easy but we are determined to hit them.

"We see two main drivers for sales growth in the coming year:
First, building new stores and remodeling others.  We have
always invested heavily in our store base.  Location is
essential in our business.  We take good care of our stores.  We
had to cut back on store investment during 2002 and 2003.  We
had no choice.  But we will be back to previous levels in the
course of this year.  And that means a significant investment of
approximately EUR1.6 billion in our store base.

"The second sales growth driver is our price re-positioning
program.  As I've said many times before, 'we need to do the
right thing for the customer.'  Customers perceive value as more
and more important.  As discounters continue to make their
presence felt, we need to increasingly align our prices with
their offer.  To get to the targeted EBITA level, we have
identified many initiatives of which we will see the benefits
over 2005 - 2006.

"Our harmonization program, defined at the start of the road-to-
recovery, is expected to generate EUR600 million in savings on
an annual basis as of 2006, of which part will fall to the
bottom line.  We see huge potential on the sourcing side. We are
already making significant progress with joint buying of not-
for-resale products.  We have a centralized not-for-resale
organization, which negotiates contracts and sources many of our
products.

"Alongside these global initiatives, there are many initiatives
to curb operational costs in the arenas, from overhead
reductions to labor scheduling and productivity improvements.

"The third food retail target we set ourselves focuses on return
on net assets.  We still see opportunities beyond what we have
achieved to date on working capital management.  In the area of
payment terms and inventory management, we continue to drive for
improvements.

"Our building cost is another area of opportunity.  We have many
projects going on in this area.  Our ambition is to reduce
building cost by 10 to 15% through a standardized way of
working.  Leveraging best-practices throughout the company and
using our scale provides huge opportunities.

"Next to that we are cleaning up non-core assets.  Examples are:
shopping centers where we are not the main user, and the
warehouses and manufacturing plants identified by Giant-
Landover.  We are revisiting our portfolio of assets and
cleaning it up systematically.  We are working hard on hitting
the targets set out in the Road-to-Recovery.  And we are
starting to look at where we will be when we reach the end of
that road.

"Longer term, where will our growth come from?  Our focus is and
will be on increased penetration in our existing markets,
through organic growth, by building new stores and remodeling
others, and through selective acquisitions in our current trade
areas.  These acquisitions will probably be small to medium
sized.  But together they could add to something quite
significant.

"Our existing businesses are the foundation of our future growth
model.  Put simply, we must continuously satisfy our customers'
needs.

"The core capabilities that we as a company need to continue to
develop are category management and applied customer insight.
To know and understand customer needs better and faster than
anyone else and to be able to translate customer needs into a
meaningful product offering and great value.  Increased
penetration in key trade areas will help us to leverage our
infrastructure and create clear synergies.

"Customers have many choices.  We know that life is about making
choices.  We want to make it easy for them to choose us.  We
will continue to strive to have convenient locations, the right
offering, the optimal price level.  Innovative solutions to our
customers' everyday needs.  We want customers to choose our
stores.  Each day, every day.

"I can sense you are wondering: what about larger acquisitions?
It's quite simple.  We want to grow with what we know!  This is
not the time for large acquisitions.  The time may come and
we'll need to be ready, to understand how best to match our
available resources with opportunities.  Growth for growth's
sake will not be on our radar screen.  It is about profitable
growth.  Our compass is and will be shareholder value.
Therefore our focus regarding further acquisitions will be on
geographic areas and cultures that are close to ours.  And on
business that can provide further potential for generating
synergy benefits, businesses that we can integrate easily with
our existing operations.

"So, with the focus clearly on organic growth, how can we
leverage our growth opportunities?  Let me run you through a
couple of initiatives.  We want to offer combinations of
healthy, appealing and inspiring food and non-food products at
the right price to make it easier for many people to feel
better, live better, and enjoy life more - every day!

"Expanding the range and improving the quality of our general
merchandise throughout the company is a significant growth
opportunity.  We want to help customers to make the best easy to
choose.  And if we get that right -- which we will -- our
ambition is to double non-food sales in the next 5 years, from
5.5 to 11%.

"Private label is also going to be key in our strategy moving
forward.  It will provide good value to our customers and it
will help to distinguish us from the competition.  It will give
us negotiation power and flexibility.  For us to be successful,
we need strong partners in our suppliers.  We need to see how we
can cooperate to create value for our customers.  We both have
the same interest, providing customers with the product and
service they demand and deserve.  Since the cost of goods sold
is the highest single expense line, we will put a lot of effort
into this area and see how we can best manage this with our
partners in the interest of our customers.  We both need to work
on improving the value chain.  For this, we need to challenge
each other.

"Critical drivers of our strategy going forward are strategic
sourcing and supply chain.  This means having a better
understanding of the value chain - from farm to fork.  We need
to work to lower cost and to stimulate innovation.  Again,
continuously improving value for the customer.  Knowing that
what is good today is not good enough tomorrow.

"Our private label is an important instrument in this.  We have
seen strong growth of our private label.  It is our firm belief
that this development will continue.  We will always represent
the customer.  We buy and source for our customers.

"Our supermarkets are dedicated to satisfying our customers'
food needs.  Customers buy with us a certain safety, quality,
convenience, easy shopping, wide choice and sustainability.  The
new challenge is 'consumer health.'  In all our markets, there
is an increasing tension between the tremendous amount of food,
which is available at low prices, and the need for a balanced
diet and active lifestyle.  Basic building blocks of our healthy
living strategy, are for example consumer information and
education activities, school programs, more transparent
labeling, promoting 'five-a-day' guidelines for consumption of
fruit and vegetables, reduced fat, reduced sugar and salt
intake, more fiber-rich food, more fish, and many more low carb,
functional, organic & natural foods.

"People want to enjoy a healthy life.  But changing lifestyles
require changing eating habits.  There is not a simple solution,
no one-size-fits-all.  So a multi-stakeholder approach is
important.  With our focus on perishables, produce and private
label, our companies are extremely well positioned and committed
to make healthy living easy to choose.

"Although recent years have had their fair share of stress,
sustainability is still at the heart of our business.  We are
very proud of our initiatives in the area of corporate social
responsibility.  We just published our 2004 sustainability
report.  This report aims to provide you with a clear picture of
what sustainability means to our company and how it is embedded
in our business.  The report puts sustainability in the context
of our Road to Recovery strategy for the years 2003-2005.

"Ghana is a great example of linking business needs with
corporate sustainability.  We have already been active in Ghana
for three years.  Our intention is to expand this foothold to a
broader geographic area in southern Africa.

"So, in addition to non-food, private label and healthy living,
we see a real growth opportunity in U.S. Foodservice.  Let me
run you through our thinking.  In 2003, we announced that we
needed 18 - 24 months to recover U.S. Foodservice, and exceed in
2006 the level of performance we had reached in 2002.  We are
confident this objective will be met.  If anything, our views on
the longer term potential of U.S. Foodservice are even more
optimistic.

"We have learned a lot about the foodservice business.  We came
a long way.  We have the #2 position in the business in the U.S.
market.  Our cash flow is strong.  We are identifying
opportunities for synergies with retail on sourcing and private
label.  The foodservice business is growing faster than the food
retail market.

"Based on all this, our current thinking is that we believe we
can create more value by keeping U.S. Foodservice within the
Ahold Group.  Our key priority now is to develop the
capabilities and the performance of U.S. Foodservice to its full
potential, which is beyond the levels we reached before.  It
would be a mistake to divest our U.S. Foodservice operation,
therefore we have no intention of doing so.  U.S. Foodservice
will stay in the Ahold group as we continue to improve the value
of the company.

"You will recognize that in order to fully leverage all the
opportunities, initiatives and ambitions I have just mentioned,
we need to nurture key management and associates and to recruit,
develop and retain additional capable people.  Creating an
innovative, learning environment is key.  We will continue to
focus strongly on our talent pool, without whom we would not
have succeeded to put this company back on a sure footing.

"Let me draw to a close by repeating my belief that the Road to
Recovery strategy is an ambitious yet achievable program to
reposition our operations for the future.  By accomplishing the
goals of this strategic plan, we are creating a solid financial,
structural and organizational foundation with common goals,
shared values and an unwavering focus on the customer. We
predicted that 2004 would be a year of transition, and so it
was.

"Let's not forget: success is a journey, not a destination.
[This] week, our company marks its 118th birthday.  In the
course of our long history as a prominent food retailer in the
Netherlands and along the U.S. eastern seaboard, we have enjoyed
many highs and one very serious low.  Make no mistake: we
survived the lost year of 2003, we worked our way through the
transitional year of 2004, and we are determined to turn 2005
into the year of reconstruction, execution and delivery.

"As we complete the divestment of our non-core assets and focus
on our core business, as we continue to strengthen our corporate
governance, as we build a firm foundation for future profitable
growth, we are determined to keep the customer at the heart of
our business, offer an attractive working environment for our
associates and strive to provide you, our shareholders, with an
attractive return on your investment.

"We will leverage our many areas of opportunity within our core
food retail markets and within U.S. Foodservice.

"In short, we will make the best easy to choose, for you and all
our stakeholders."

CONTACT:  KONINKLIJKE AHOLD N.V.
          Albert Heijnweg 1
          1507 EH Zaandam, The Netherlands
          Phone: +31-75-659-9111
          Fax: +31-75-659-8350
          Web site: http://www.ahold.com


VERSATEL N.V.: Shareholders Pass All AGM Resolutions
----------------------------------------------------
Versatel Telecom International N.V. shareholders have approved
all resolutions proposed to the general meeting.

During the Annual General Meeting of Shareholders held in
Amsterdam Thursday, Versatel, among others, requested its
shareholders to adopt its annual accounts, to determine its
remuneration policy and to approve its corporate governance
policy and certain amendments to its articles of association.

Furthermore, Versatel asked the general meeting for delegation
of the authority to the Board of Management to issue shares and
exclude pre-emptive rights upon issuance, as well as an
authorization to acquire shares in the capital of Versatel; both
subject to prior approval of the Board of Supervisory Directors.

Additionally, and in accordance with last year's resolution to
decrease the number of seats on the Board of Supervisory
Directors from six to five and as announced during last year's
Annual General Meeting of Shareholders, Nathaniel Meyohas has
resigned from the Board of Supervisory Directors.

CONTACT:  VERSATEL TELECOM INTERNATIONAL N.V.
          Hullenbergweg 101
          1101 CL Amsterdam
          Phone: +31-20-750-10-00
          Fax: +31-20-750-10-01
          Web site: http://www.versatel.com


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


BASHKIR-AGRO-PROM-DOR-STROY: Declared Insolvent
-----------------------------------------------
The Arbitration Court of Bashkortostan republic commenced
bankruptcy proceedings against Bashkir-Agro-Prom-Dor-Stroy (TIN
0209001687) after finding the close joint stock company
insolvent.  The case is docketed as A07-1770/02-ADM.  Mr. R.
Galeev has been appointed insolvency manager.  Creditors have
until June 16, 2005 to submit their proofs of claim to 452000,
Russia, Bashkortostan republic, Belebey, Internatsionalnaya Str.
81.

CONTACT:  BASHKIR-AGRO-PROM-DOR-STROY
          452000, Russia, Bashkortostan republic,
          Belebeevskiy region, Nadezhdino

          Mr. R. Galeev
          Insolvency Manager
          452000, Russia, Bashkortostan republic,
          Belebey, Internatsionalnaya Str. 81


BASH-ZAURAL-STROY: Creditors Have Until June 16 to File Claims
--------------------------------------------------------------
The Arbitration Court of Bashkortostan republic commenced
bankruptcy proceedings against Bash-Zaural-Stroy after finding
the building complex insolvent.  The case is docketed as A07-
21749/04-G-ADM.  Mr. A. Gadelshin has been appointed insolvency
manager.  Creditors have until June 16, 2005 to submit their
proofs of claim to 453830, Russia, Bashkortostan republic,
Sibay, Belova Str. 7A.

CONTACT:  BASH-ZAURAL-STROY
          453830, Russia, Bashkortostan republic,
          Sibay, Belova Str. 7A

          Mr. A. Gadelshin
          Insolvency Manager
          453830, Russia, Bashkortostan republic,
          Sibay, Belova Str. 7A


BLAG-BAKERY: Bankruptcy Hearing Set June
----------------------------------------
The Arbitration Court of Amur region has commenced bankruptcy
supervision procedure on open joint stock company Blag-Bakery.
The case is docketed as A04-194/05-6/27B.  Mr. M. Praskov has
been appointed temporary insolvency manager.

Creditors may submit their proofs of claim to Russia,
Blagoveshensk, Shevchenko Str. 7, Room 2.  A hearing will take
place on June 16, 2005.

CONTACT:  BLAG-BAKERY
          Russia, Amur region,
          Blagoveshensk

          Mr. M. Praskov
          Temporary Insolvency Manager
          Russia, Blagoveshensk,
          Shevchenko Str. 7, Room 2


BUILDING CORPORATION: Bankruptcy Proceedings Begin
--------------------------------------------------
The Arbitration Court of Khabarovsk region commenced bankruptcy
proceedings against Building Corporation #1 after finding the
open joint stock company insolvent.  The case is docketed as
A73-8312/2004-38.  Mr. V. Shvedko has been appointed insolvency
manager.  Creditors have until June 9, 2005 to submit their
proofs of claim to 680028, Russia, Khabarovsk, Frunze Str. 126,
Office 106.

CONTACT:  BUILDING CORPORATION #1
          Russia, Komsomolsk-na-Amure,
          Pavlovskogo Str. 2

          Mr. V. Shvedko
          Insolvency Manager
          680028, Russia, Khabarovsk region,
          Frunze Str. 126, Office 106


BUILDING SITE: Declared Insolvent
---------------------------------
The Arbitration Court of Omsk region commenced bankruptcy
proceedings against Building Site #2 after finding the limited
liability company insolvent.  The case is docketed as K/E-48/04.
Mr. O. Kratko has been appointed insolvency manager.
Creditors have until June 16, 2005 to submit their proofs of
claim to 644093, Russia, Omsk, Post User Box 9486.

CONTACT:  BUILDING SITE #2
          644084, Russia, Omsk region,
          Romanenko Str. 18

          Mr. O. Kratko
          Insolvency Manager
          644093, Russia, Omsk region,
          Post User Box 9486


CHUVASH-MOL-PROM: Succumbs to Bankruptcy
----------------------------------------
The Arbitration Court of Chuvashiya republic commenced
bankruptcy proceedings against Chuvash-Mol-Prom after finding
the limited liability company insolvent.  The case is docketed
as A79-9580/04-SK1-9079.  Mr. M. Serzhantov has been appointed
insolvency manager.  Creditors have until June 16, 2005 to
submit their proofs of claim to 428010, Russia, Cheboksary, S.
Razina Str. 14.

CONTACT:  CHUVASH-MOL-PROM
          428000, Russia, Cheboksary,
          Myasokombinatskiy Pr. 6

          Mr. M. Serzhantov
          Insolvency Manager
          428010, Russia, Cheboksary,
          S. Razina Str. 14


INTERCONTACT: Bankruptcy Hearing Set September
----------------------------------------------
The Arbitration Court of Moscow region has commenced bankruptcy
supervision procedure on open joint stock company Intercontact.
The case is docketed as A40-2153/05-88-1 B.  Mr. Zh. Mezentsev
has been appointed temporary insolvency manager.

Creditors may submit their proofs of claim to 115114, Russia,
Moscow, Derbenevskaya Str. 1/2, Building 5B, Office 13.  A
hearing will take place on Sept. 5, 2005, 2:30 p.m.

CONTACT:  INTERCONTACT
          129110, Russia,
          Moscow region, Mira Pr. 57

          Mr. Zh. Mezentsev
          Temporary Insolvency Manager
          115114, Russia, Moscow region,
          Derbenevskaya Str. 1/2, Building 5B, Office 13


PULSE: Under Bankruptcy Supervision
-----------------------------------
The Arbitration Court of Bryansk region has commenced bankruptcy
supervision procedure on close joint stock company Pulse.  The
case is docketed as A09-18228/04-27.  Mr. M. Panteleev has been
appointed temporary insolvency manager.

Creditors may submit their proofs of claim to 241012, Russia,
Bryansk, Post User Box 66.  A hearing will take place on June
21, 2005, 10:00 a.m. at the Arbitration Court of Bryansk region
located at Russia, Bryansk region, Trudovoy Per. 6, Room 601.

CONTACT:  PULSE
          241033, Russia, Bryansk region,
          St. Dmitrova Pr. 56

          Mr. M. Panteleev
          Temporary Insolvency Manager
          241012, Russia, Bryansk region,
          Post User Box 66


SVOBODNYJ-GAS: Undergoes Bankruptcy Supervision Procedure
---------------------------------------------------------
The Arbitration Court of Amur region has commenced bankruptcy
supervision procedure on open joint stock company SVOBODNYJ-GAS
(TIN 28070001447).  The case is docketed as A04-203/05-11/29 B.
Mr. A. Bolbot has been appointed temporary insolvency manager.

Creditors may submit their proofs of claim to 634034, Russia,
Tomsk, Kuleva Str. 33.  A hearing will take place on June 23,
2005, 8:30 a.m.

CONTACT:  SVOBODNYJ-GAS
          676450, Russia, Amur region,
          Svobodnyj, Upravlencheskaya Str. 1

          Mr. A. Bolbot
          Temporary Insolvency Manager
          675000, Russia, Amur region,
          Blagoveshensk, Shimanovskogo Str. 46/2


THERMAL NETS: Deadline for Proofs of Claim June 9
-------------------------------------------------
The Arbitration Court of Belgorod region commenced bankruptcy
proceedings against Thermal Nets after finding the municipal
unitary enterprise insolvent.  The case is docketed as A08-
15844/04-24b.  Mr. S. Chernobrovenko has been appointed
insolvency manager.  Creditors have until June 9, 2005 to submit
their proofs of claim to Russia, Belgorod region, Razumnoye,
Vostochnaya Str. 2a.

CONTACT:  THERMAL NETS
          Russia, Belgorod region

          Mr. S. Chernobrovenko
          Insolvency Manager
          Russia, Belgorod region,
          Razumnoye, Vostochnaya Str. 2a


===========
S W E D E N
===========


SKANDIA INSURANCE: Skandia Liv Appoints Acting CEO
--------------------------------------------------
Skandia Liv's board has appointed Executive Vice President
Bengt-Ake Fagerman as acting CEO of the company, effective 1
June.

Mr. Fagerman has been an Executive Vice President of Skandia Liv
since 2002.  Prior to that, he was President of Skandia
Marknadsstod Spar (SMS).

Urban Backstrom is leaving Skandia Liv on 31 May in order to
promptly take on his new work duties as Director General of the
Confederation of Swedish Enterprise.

Bo Eklof, Chairman of Skandia Liv, said: "Bengt-Ake Fagerman has
a depth and breadth of experience in the Swedish insurance
market.  Along with the Board of Directors I am convinced that
the successful work that has been conducted under Urban
Backstrom will now continue with undiminished strength."

CONTACT:  SKANDIA INSURANCE COMPANY LTD.
          Sveavagen 44
          S-103 50 Stockholm, Sweden
          Phone: +46-8-788-1000
          Fax: +46-8-788-3080
          Web site: http://www.skandia.com


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


SWISS INTERNATIONAL: Narrows First-quarter Net Loss
---------------------------------------------------
Swiss International Air Lines narrowed it first-quarter net loss
from CHF78 million to CHF44 million, Reuters says.

SWISS attributed its good performance to its drastic
restructuring, which included heavy cost cuts, massive layoffs,
and downsizing of its fleet.   The carrier was also able to hike
its consolidated revenue from CHF846 million to CHF853 million.
The group also earned CHF43 million in selling its Heathrow
Airport slots to British Airways.

Chief Executive Christoph Franz said in a statement, "The result
means that we have also made progress in what is traditionally
the weakest quarter of the year in traffic volume terms.

"But our earnings levels and our cost structures are still less
than satisfactory."

The group's road to recovery, however, became longer as the
rising jet fuel costs continue to eat up its operating revenue.
In the first quarter alone, fuel added CHF54 million to the
company's expenses.  SWISS previously aimed to achieve a
turnaround this year, but said it now plans to return to profit
in 2006 after unions slowed down its restructuring effort.  The
carrier has been holding talks with its unions over further
restructuring.

German carrier Deutsche Lufthansa recently acquired more than
86% of Swiss International, which rose three years ago from the
remains of collapsed Swissair and regional carrier Crossair.
The transaction involved payment of up to EUR265 million
(US$342.3 million) to large shareholders and another EUR45
million (US$58.1 million) to individuals whose shares are in
free float.

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
=============


A.B. GROUP: Under Bankruptcy Supervision
----------------------------------------
The Economic Court of Kyiv region commenced bankruptcy
supervision procedure on Private Enterprise A.B. Group on March
30, 2005.  Mr. N. Tishenko (License Number AA 419210) has been
appointed temporary insolvency manager.

Creditors may submit their proofs of claim to:

(a) A.B. GROUP
    Ukraine, Kyiv region,
    Yaroslavska Str. 55

(b) ECONOMIC COURT OF KYIV REGION
    01030, Ukraine, Kyiv region,
    B. Hmelnitskij Boulevard, 44-B


ANTRATSIT' AUTO 10962: Succumbs to Insolvency
---------------------------------------------
The Economic Court of Lugansk region commenced bankruptcy
proceedings against Antratsit' Auto Transport Enterprise-10962
(code EDRPOU 03116016) after finding the open joint stock
company insolvent.  The case is docketed as 9/4 B.  Ms. Larisa
Stambula (License Number AA 783124) has been appointed
liquidator/insolvency manager.

Creditors may submit their proofs of claim to:

(a) ANTRATSIT' AUTO TRANSPORT ENTERPRISE-10962
    Ukraine, Lugansk region, Antratsit

(b) Ms. Larisa Stambula
    Liquidator/Insolvency Manager
    Ukraine, Lugansk region,
    Radyanska Str. 66/20

(c) ECONOMIC COURT OF LUGANSK REGION
    91000, Ukraine, Lugansk region,
    Geroiv VVV Square, 3a

    Shaumyana Str. 4


ARGON: Insolvency Manager Takes over Helm
-----------------------------------------
The Economic Court of Kyiv region commenced bankruptcy
proceedings against ARGON (code EDRPOU 30577841) on February 21,
2005 after finding the limited liability company insolvent.  The
case is docketed as 46/281-b.  Ms. Olga Londareva (License
Number AA 668292) has been appointed liquidator/insolvency
manager.  The company holds account number 260093011034 at JSCB
Starokostyantinivskij bank, MFO 321477.

Creditors may submit their proofs of claim to:

(a) ARGON
    03113, Ukraine, Kyiv region, Mashinobudivna Str. 24/8

(b) Ms. Olga Londareva
    Liquidator/Insolvency Manager
    03127, Ukraine, Kyiv region,
    40-Richya Zhovtnya Avenue, 102/1-48

(c) ECONOMIC COURT OF KYIV REGION
    01030, Ukraine, Kyiv region,
    B. Hmelnitskij Boulevard, 44-B


KRAMATORSK' TECHNICAL: Court Grants Debt Moratorium
---------------------------------------------------
The Economic Court of Donetsk region commenced bankruptcy
supervision procedure on Kramatorsk' Technical Service Station
(code EDRPOU 05461705) on February 22, 2005 and ordered a
moratorium on satisfaction of creditors' claims.  The case is
docketed as 5/22 B.  Mr. Solovyov Vyacheslav (License Number AA
249689) has been appointed temporary insolvency manager.  The
company holds account number 26008301511789 at Prominvestbank,
Kramatorsk branch, MFO 334141.

Creditors may submit their proofs of claim to:

(a) KRAMATORSK' TECHNICAL SERVICE STATION
    84300, Ukraine, Donetsk region,
    Kramatorsk, Yuzhna Str. 1

(b) Mr. Solovyov Vyacheslav
    Temporary Insolvency Manager
    84333, Ukraine, Donetsk region,
    Kramatorsk, Lenin Str. 19-A
    Phone: (06264) 3-55-56, 3-23-15

(c) ECONOMIC COURT OF DONETSK REGION
    83048, Ukraine, Donetsk region,
    Artema Str. 157


MISKREMBUD: Declared Insolvent
------------------------------
The Economic Court of Zaporizhya region commenced bankruptcy
proceedings against Miskrembud (code EDRPOU 05479131) on March
14, 2005 after finding the close joint stock company insolvent.
The case is docketed as 21/210.  Mr. Sergij Petrov (License
Number AB 116124) has been appointed liquidator/insolvency
manager.

Creditors may submit their proofs of claim to:

(a) MISKREMBUD
    69035, Ukraine, Zaporizhya region,
    Volgogradska Str. 27

(b) Mr. Sergij Petrov
    Liquidator/Insolvency Manager
    69095, Ukraine, Zaporizhya region,
    Geroiv Stalingrada Str. 15/37

(c) ECONOMIC COURT OF ZAPORIZHYA REGION
    69001, Ukraine, Zaporizhya region,


MOKRYANSKIJ STONE: Court Appoints Insolvency Manager
----------------------------------------------------
The Economic Court of Zaporizhya region commenced bankruptcy
proceedings against Mokryanskij Stone Quarry (code EDRPOU
05486680) on February 23, 2005 after finding the open joint
stock company insolvent.  The case is docketed as 19/178(04).
Mr. Volodimir Zhitnik (License Number AA 779177) has been
appointed liquidator/insolvency manager.  The company holds
account number 26008301310165 at JSC Prominvestbank, Zaporizhya
branch, MFO 313344.

Creditors may submit their proofs of claim to:

(a) MOKRYANSKIJ STONE QUARRY
    69013, Ukraine, Zaporizhya region,
    Budivelnikiv village

(b) Mr. Volodimir Zhitnik
    Liquidator/Insolvency Manager
    69001, Ukraine, Zaporizhya region,
    Gvardijskij Boulevard, 30/85
    Phone: 8 (0612) 12-58-13

(c) ECONOMIC COURT OF ZAPORIZHYA REGION
    69001, Ukraine, Zaporizhya region,
    Shaumyana Str. 4


PRIGORODNE: Liquidator Takes over Operations
--------------------------------------------
The Economic Court of Donetsk region commenced bankruptcy
proceedings against Prigorodne (code EDRPOU 30776307) on April
5, 2005 after finding the limited liability company insolvent.
The case is docketed as 33/98 B.  Mr. M. Kondratyev (License
Number AA 116160) has been appointed liquidator/insolvency
manager.

Creditors may submit their proofs of claim to:

(a) PRIGORODNE
    Ukraine, Donetsk region,
    Kviring Str. 1a

(b) Mr. M. Kondratyev
    Liquidator/Insolvency Manager
    83086, Ukraine, Donetsk region,
    Gorkij Str. 34

(c) ECONOMIC COURT OF DONETSK REGION
    83048, Ukraine, Donetsk region,
    Artema Str. 157


UKRSIBBANK: Fitch Affirms 'B-' Long-term Rating
-----------------------------------------------
Fitch Ratings affirmed Ukraine-based UkrSibbank's ("UkrSib")
ratings at Long-term 'B-', Short-term 'B', Individual 'D/E' and
Support '5'.  The Outlook for the Long-term rating remains
Stable.

The Long-term, Short-term and Individual ratings reflect the
relatively high degree of concentration in UkrSib's loan
portfolio and customer funding, potentially weak liquidity, the
risks associated with the rapid growth of its loan book and the
significant level of related-party transactions.  However, the
ratings also take into account the bank's well developed and
expanding franchise, strong retail funding growth and adequate
asset quality to date.

Profitability remained reasonable in 2004 despite margin
pressure, one-off IAS 39 losses and a rise in costs. However,
performance was supported by significant proprietary FX and
securities trading gains, and the return on average assets
reached 1.8% (2003: 1.5%).  Return on average equity decreased
in 2004 to 15.4% from 17.9%, mainly due to the growth in equity.
The bank's cost-to-asset ratio of 6.3% reflects the recent
expansion of the branch network.

The bank's loan portfolio grew by 36% in 2004.  Despite growth
in lending to individuals and SMEs, concentration levels are
high by international standards, but not excessive for the
Ukrainian market, with the top 20 borrowers accounting for 28%
of the loan book, or 1.3x of equity at end-2004 (2003: around
37% and over 3x).  Related-party lending was sizeable at about
46% of equity at end-2004, albeit down from approximately 107%
at end-2003.  Asset quality has been adequate, to date. However,
loan loss reserves for the standard category and substandard
categories may be insufficient given rapid growth of the loan
book, or in case of deterioration in the economy.  The bank's
level of market risk is somewhat high compared to many of its
Ukrainian peers', although this decreased in relation to equity
compared with end-2003, partly due to growth of capital.

Non-equity funding is dominated by customer balances, of which
retail accounted for a high 45% at end-2004.  Customer funding
grew in 2004, although the level of concentration remains
significant.  The proportion of related-party balances in
customer funds decreased in 2004 but was still significant at
18% at year-end.  UkrSib partly diversified its funding base by
issuing a US$100 million three-year eurobond in 2004 and plans
to make another issue in 2005.  In addition, a one year
syndicated US$37 million loan and a US$20 million loan were
received from foreign banks in H105.  However, funding is still
short-term in nature, and liquidity is potentially weak. During
the period of political instability in Ukraine in late 2004, the
bank lost some 29% of corporate funding; however, additional
funding from shareholders and a stabilization loan from the
National Bank of Ukraine (NBU) were made available.

The bank's total capital ratio was a reasonable 18% at end-2004
and the Tier 1 ratio was 14%.  However, capitalization should be
viewed in light of its low free capital and loan concentrations.
The shareholders plan to inject almost UAH150m by end-2005 to
support strategy implementation and balance sheet growth.

UkrSib was founded in 1990 in Kharkov in the east of Ukraine,
but its head office is now in Kiev, the capital. It was the
fifth largest bank in Ukraine by assets at end-2004, having
grown very quickly since 2000, and it has a presence in most
regions in Ukraine.  The bank is controlled by two shareholders
who have a number of substantial industrial interests.

CONTACT:  STANDARD AND POOR'S RATING SERVICES
          Vladlen Kuznetsov, Moscow
          Phone: +7 095 956 9901

          James Watson
          Phone: +7 095 956 9901

          Media Relations:
          Jon Laycock, London
          Phone: +44 20 7417 4327


VIP: Kyiv Court Opens Bankruptcy Proceedings
--------------------------------------------
The Economic Court of Kyiv region commenced bankruptcy
proceedings against LLC VIP (code EDRPOU 30782305) after finding
the limited liability company insolvent.  The case is docketed
as 23/694-b.  Mr. A. Fomenko has been appointed
liquidator/insolvency manager.

Creditors may submit their proofs of claim to:

(a) VIP
    01023, Ukraine, Kyiv region,
    Mechnikov Str. 8/22

(b) Mr. A. Fomenko
    Liquidator/Insolvency Manager
    03150, Ukraine, Kyiv region, a/b 481

(c) ECONOMIC COURT OF KYIV REGION
    01030, Ukraine, Kyiv region,
    B. Hmelnitskij Boulevard, 44-B


WIZARD: Bankruptcy Supervision Starts
-------------------------------------
The Economic Court of Kyiv region commenced bankruptcy
supervision procedure on Wizard on March 30, 2005.  The case is
docketed as 43/252.  Mr. N. Tishenko (License Number AA 419210)
has been appointed temporary insolvency manager.

Creditors may submit their proofs of claim to:

(a) WIZARD
    Ukraine, Kyiv region,
    Pravdi Avenue, 17/128

(b) ECONOMIC COURT OF KYIV REGION
    01030, Ukraine, Kyiv region,
    B. Hmelnitskij Boulevard, 44-B


ZHITOMIR' BUILDING: Zhitomir Court Opens Bankruptcy Proceedings
---------------------------------------------------------------
The Economic Court of Zhitomir region commenced bankruptcy
proceedings against Zhitomir' Building Materials Combine (code
EDRPOU 00845559) on March 22, 2005 after finding the joint stock
company insolvent.  The case is docketed as 1/83 B.  Mr. L.
Shishkin (License Number AA 779304) has been appointed
liquidator/insolvency manager.

Creditors may submit their proofs of claim to:

(a) ZHITOMIR' BUILDING MATERIALS COMBINE
    10025, Ukraine, Zhitomir region,
    Vitruk Str. 6

(b) ECONOMIC COURT OF ZHITOMIR REGION
    10002, Ukraine, Zhitomir region,
    Putyatinski Square, 3/65


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


ALLIED DOMECQ: Pernod's Shareholder to Vote on Takeover Proposal
----------------------------------------------------------------
Shareholders of French winemaker Pernod Ricard will meet on June
20 to vote on the proposed takeover of spirits group Allied
Domecq, Les Echos says.

The group has offered GBP7.4 billion (EUR10.9 billion), or 670p
per share, to acquire the second largest distiller in the world.
Pernod also promised to retain majority of Allied's Domecq,
including Ballantine's, Beefeater, Kahlua, Malibu, Stolichnaya,
Tia Maria, Montana, Mumm and Perrier Jouet and Campo Viejo.  The
group, however, intends to sell other Allied assets, which
includes Canadian Club, Courvoisier, Maker's Mark and Sauza
spirits brands.

Pernod's bid, however, did not came unchallenged, as a
consortium a consortium comprised of Constellation Brands,
U.S. winemaker Brown Forman and financial firms Lion Capital and
Blackstone Group made a counter-offer.  Allied stressed though
it is open with other bids, it will continue to abide by its
agreement with Pernod, which its board of directors endorsed
late last month.  Recently, world's largest winemaker Diageo
announced it has prepared GBP1 billion to back up either Pernod
or Constellation in an imminent bidding war.

CONTACT:  ALLIED DOMECQ PLC
          The Pavilions
          Bridgwater Road
          Bedminster Down
          Bristol BS13 8AR
          Phone: +44-117-978-5000
          Fax: +44-117-978-5300
          Web site: http://www.allieddomecq.co.uk

          PERNOD RICARD
          12, Place des Etats-Unis
          75116 Paris, France
          Phone: +33-1-41-00-41-00
          Fax: +33-1-41-00-41-41
          Web site: http://www.pernod-ricard.com/fr

          FORTUNE BRANDS, INC.
          300 Tower Pkwy.
          Lincolnshire
          IL 60069-3640
          Phone: 847-484-4400
          Fax: 847-478-0073
          Phone: http://www.fortunebrands.com

          LION CAPITAL LLC
          8484 Wilshire Blvd. Ste. 700
          Beverly Hills, CA 90211
          Phone: 866-207-8999
                 323-852-5090
          Fax: 323-852-5099
          Web site: http://www.lioncapital.us

          BROWN-FORMAN CORPORATION
          850 Dixie Hwy.
          Louisville, KY 40210
          Phone: 502-585-1100
          Fax: 502-774-7876
          Web site: http://www.brown-forman.com

          THE BLACKSTONE GROUP, INC.
          360 N. Michigan Ave., 15th Fl.
          Chicago, IL 60601
          Phone: 312-419-0400
          Fax: 312-419-8419
          Web site: http://www.bgglobal.com

          CONSTELLATION BRANDS, INC.
          370 Woodcliff Dr., Ste. 300
          Fairport, NY 14450-4222
          Phone: 585-218-3600
          Fax: 585-218-3601
          Web site: http://www.cbrands.com

          DIAGEO PLC
          8 Henrietta Place
          London W1G OMD
          Phone: +44-20-7927-5200
          Fax: +44-20-7927-4600
          Web site: http://www.diageo.co.uk


ALMA CARE: Appoints P&A Partnership Liquidator
----------------------------------------------
At the extraordinary general meeting of Alma Care Limited on May
5, 2005 held at Express by Holiday Inn Hemel Hempstead,
Stationers Place, Apsley HP3 9RH, the resolution to wind up the
company was passed.  Ian Michael Rose and Robert Michael Young
of Poppleton & Appleby, The Old Barn, Caverswall Park,
Caverswall Lane, Stoke on Trent ST3 6HP has been appointed joint
liquidators of the company.

CONTACT:  THE P&A PARTNERSHIP
          The Old Barn, Caverswall Park, Caverswall Lane
          Stoke on Trent ST3 6HP
          Phone: (0114) 275 5033
          Fax: (0114) 276 8556
          E-mail: info@poppletonappleby.co.uk
          Web site: http://www.thepandapartnership.com


CALIBER SERVICES: Hires Liquidator from Tomlinsons
--------------------------------------------------
At the extraordinary general meeting of Caliber Services Limited
on April 29, 2005 held at Tomlinsons, St John's Court, 72
Gartside Street, Manchester M3 3EL, the resolutions to wind up
the company were passed.  Alan H. Tomlinson of Tomlinsons, St
John's Court, 72 Gartside Street, Manchester M3 3EL has been
appointed liquidator of the company.

CONTACT:  TOMLINSONS
          St John's Court,
          72 Gartside Street, Manchester M3 3EL
          Phone: 0870 60 70 170
          Fax:   0870 60 70 180
          E-mail: advice@tomlinsons.co.uk
          Web site: http://www.tomlinsons.co.uk


CHESFIELDS LIMITED: Members Pass Winding-up Resolutions
-------------------------------------------------------
At the extraordinary general meeting of the members of
Chesfields Limited on May 9, 2005 held at BWC Business
Solutions, 8 Park Place, Leeds LS1 2RU, the extraordinary and
ordinary resolutions to wind up the company were passed.  David
L. Cockshott and Paul A. Whitwam of BWC Business Solutions, 8
Park Place, Leeds LS1 2RU have been appointed joint liquidators
of the company.

CONTACT:  BWC BUSINESS SOLUTIONS
          8 Park Place
          Leeds
          West Yorkshire LS1 2RU
          Phone: 0113 243 3434
          Fax: 0113 243 5049
          E-mail: bwc@bwc-solutions.com


CLOTHES AT WORK: Members Hire Liquidator from Gibson Booth
----------------------------------------------------------
At the extraordinary general meeting of the members of Clothes
At Work Limited on May 3, 2005 held at the offices of Gibson
Booth, 15 Victoria Road, Barnsley S70 2BB, the extraordinary and
ordinary resolutions to wind up the company were passed.  Edward
Christopher Wetton has been appointed liquidator of the company.

CONTACT:  GIBSON BOOTH
          15 Victoria Road
          Barnsley
          South Yorkshire S70 2BB
          Phone: 01226 213131
          Fax: 01226 213151
          E-mail: ecw@gibsonboothinsol.com


DATA MOBILITY: Appoints H R Harris & Partners Liquidator
--------------------------------------------------------
At the extraordinary general meeting of the members of Data
Mobility Ltd. on April 29, 2005 held at H.R. Harris & Partners,
44 St Helens Road, Swansea SA1 4BB, the extraordinary resolution
to wind up the company was passed.  S. J. Burkinshaw of 44 St
Helen's Road, Swansea SA1 4BB has been appointed liquidator of
the company.

CONTACT:  H R HARRIS & PARTNERS
          44 St Helens Road
          Swansea
          Glamorgan SA1 4BB
          Phone: 01792 643311
          Fax: 01792 458706
          E-mail: steve.burkinshaw@hrharrispartners.co.uk


FIRSTORION LIMITED: Liquidator from Gallagher & Co Moves in
-----------------------------------------------------------
At the extraordinary general meeting of the members of
Firstorion Limited (t/a Abbey Travel) on May 9, 2005 held at 2nd
Floor, Titchfield House, 69-85 Tabernacle Street, London EC2A
4RR, the extraordinary and ordinary resolutions to wind up the
company were passed.  Robert Stephen Palmer has been appointed
liquidator of the company.

CONTACT:  GALLAGHER & CO
          PO Box 698
          Titchfield House
          69/85 Tabernacle Street
          London EC2A 4RR
          Phone: 020 7490 7774
          Fax: 020 7490 5354
          E-mail: robert@gallaghers.co.uk


FLAIR PRODUCTS: Hires Liquidator from Elwell Watchorn
-----------------------------------------------------
At the extraordinary general meeting of Flair Products Limited
on May 5, 2005 held at Chapel House, Westmead Drive, Westlea,
Swindon, Wiltshire, the subjoined extraordinary resolution to
wind up the company was passed.  John Michael Munn and Joseph
Gordon Maurice Sadler of Elwell Watchorn & Saxton LLP, 109 Swan
Street, Sileby, Leicestershire LE12 7NN have been appointed
joint liquidators of the company.

CONTACT:  ELWELL WATCHORN & SAXTON
          109 Swan Street,
          Sileby, Leicestershire, LE12 7NN
          Phone: (+44) 01509 815150
          Fax: (+44) 01509 815121
          E-mail: office@ews-insolvency.co.uk
          Web site: http://www.ews-insolvency.co.uk


FLOORLINE DIRECT: Liquidator from Rimmer Higson Moves in
--------------------------------------------------------
At the extraordinary general meeting of Floorline Direct Limited
on April 29, 2005 held at 22 Ribblesdale Place, Winckley Square,
Preston PR1 3NA, the extraordinary and ordinary resolutions to
wind up the company were passed.  Michael Rimmer of Rimmer
Higson, 22 Ribblesdale Place, Winckley Square, Preston PR1 3NA
has been appointed liquidator of the company.

CONTACT:  RIMMER HIGSON
          22 Ribblesdale Place
          Winckley Square
          Preston
          Lancashire PR1 3NA
          Phone: 01772 555174
          Fax: 01772 204755


FORTE HOMES: Members Decide to Wind up Company
----------------------------------------------
At the meeting of the members of Forte Homes Limited on May 10,
2005, the extraordinary and ordinary resolutions to wind up the
company were passed.  John Kelmanson and Elias Paourou have been
appointed joint liquidators of the company.

CONTACT:  THE KELMANSON PARTNERSHIP
          Avco House
          6 Albert Road
          Barnet
          Hertfordshire EN4 9SH
          Phone: 020 8441 2000
          Fax: 020 8441 3000
          E-mail: ep@kelpart.co.uk
                  tkp@kelpart.co.uk


FRIENDLY LIFE: Appoints Butcher Woods Liquidator
------------------------------------------------
At the extraordinary general meeting of Friendly Life Limited on
May 10, 2005 held at 79 Caroline Street, Birmingham B3 1UP, the
extraordinary and ordinary resolutions to wind up the company
were passed.  Roderick Graham Butcher of Butcher Woods, 79
Caroline Street, Birmingham B3 1UP has been appointed liquidator
of the company.

CONTACT:  BUTCHER WOODS
          79 Caroline Street,
          Birmingham B3 1UP


G 2 B JOINERY: Members Pass Extraordinary Resolution
----------------------------------------------------
At the extraordinary general meeting of the members of G 2 B
Joinery Limited on April 29, 2005 held at 100-102 St James Road,
Northampton NN5 5LF, the extraordinary resolution to wind up the
company was passed.  Gary Steven Pettit and Peter John Windatt
of BRI Business Recovery and Insolvency, 100-102 St James Road,
Northampton NN5 5LF have been appointed joint liquidators of the
company.

CONTACT:  BRI BUSINESS RECOVERY AND INSOLVENCY
          100-102 St James Road,
          Northampton NN5 5LF
          Phone: 01604 754352
          Fax: 01604 751660
          E-mail: pwindatt@briuk.co.uk


GILDA PRODUCTS: Members Decide to Wind up Firm
----------------------------------------------
At the extraordinary general meeting of the members of Gilda
Products Limited on April 27, 2005 held at The Talbot Hotel,
High Street, Stourbridge, West Midlands DY8 1DW, the
extraordinary resolution to wind up the company was passed.
Kenneth John Wright of Wright Associates, The Studio, 231
Stourbridge Road, Kidderminster, Worcestershire DY10 2XB has
been nominated liquidator of the company.

CONTACT:  WRIGHT ASSOCIATES
          The Studio
          231 Stourbridge Road
          Kidderminster
          Worcestershire DY10 2XB
          Phone: 01562 822125
          Fax: 01562 820684
          E-mail: kwright@wrightforbusiness.co.uk


GOSPORT SEALED: Hires Liquidators from Portland Business
--------------------------------------------------------
Name of companies:
Gosport Sealed Units Limited
Gosport Window Systems Limited

At the extraordinary general meeting of the members of these
companies on May 6, 2005 held at 1640 Parkway, Solent Business
Park, Whiteley, Fareham, Hampshire PO15 7AH, the extraordinary
and ordinary resolutions to wind up the companies were passed.
Peter Robin bacon and Carl Derek Faulds, of Portland Business &
Financial Solutions Ltd., 1640 Parkway, Solent Business Park,
Whiteley, Fareham, Hampshire have been appointed joint
liquidators of the company.

CONTACT:  PORTLAND BUSINESS & FINANCIAL SOLUTIONS LTD.
          1640 Parkway
          Solent Business Park
          Whiteley
          Fareham
          Hampshire PO15 7AH
          Phone: 01489 550 440
          E-mail: carl.faulds@portland-solutions.co.uk


GRAFIX DISTRIBUTION: Members Pass Winding-up Resolutions
--------------------------------------------------------
At the extraordinary general meeting of the members of Grafix
Distribution Limited on May 5, 2005 held at The Bridge,
Walshford, Wetherby, West Yorkshire LS22 5HS, the extraordinary
and ordinary resolutions to wind up the company were passed.
Andrew W. Thompson and Gordon Craig have been appointed joint
liquidators of the company.

CONTACT:  THOMPSON SHAW ASSOCIATES
          The Old Halsall Arms
          2 Summerwood Lane
          Halsall
          Merseyside L39 8RJ
          Phone: 01704 841870
          Fax: 01704 841811


GREGSON MECHANICAL: Calls in Liquidator from F A Simms
------------------------------------------------------
At the extraordinary general meeting of Gregson Mechanical
Services Limited on May 4, 2005 held at Insol House, 39 Station
Road, Lutterworth, Leicestershire LE17 4AP, the subjoined
extraordinary resolution to wind up the company was passed.
Richard Frank Simms of Insol House, 39 Station Road,
Lutterworth, Leicesteshire LE17 4AP has been appointed
liquidator of the company.

CONTACT:  F A SIMMS & PARTNERS PLC
          Insol House
          39 Station Road
          Lutterworth
          Leicestershire LE17 4AP
          Phone: 01455 557111
          Fax: 01455 552572
          E-mail: rsimms@fasimms.com


HAMILTON CHESS: Members Hire Begbies Traynor Liquidator
-------------------------------------------------------
At the extraordinary general meeting of the members of Hamilton
Chess Limited on May 6, 2005 held at 68 Lombard Street, London
EC3V 9LJ, the extraordinary and ordinary resolutions to wind up
the company were passed.  Richard Andrew Segal and Paul Michael
Davis of Begbies Traynor (South) LLP, 32 Cornhill, London EC3V
3BT have been appointed joint liquidators of the company.

CONTACT:  BEGBIES TRAYNOR (SOUTH) LLP
          32 Cornhill, London EC3V 3BT
          Phone: 020 7398 3800
          Fax:   020 7398 3799
          Web site: http://www.begbies.com


I-BUS LIMITED: Business for Sale
--------------------------------
On behalf of the joint administrators, Michael Francis Stevenson
and Julie Anne Palmer, offer for sale the business and assets of
I-Bus (U.K.) Limited.

Features:

(a) Manufacturer and supplier of Industrial Rack Mount Computer
    Systems;

(b) Workforce of around 13 employees;

(c) Leasehold premises in Tangmere, Chichester, West Sussex; and

(d) Historic turnover of GBP4 million.

CONTACT:  HILCO APPRAISAL LIMITED
          29a Salisbury Road
          Totton
          Southampton SO403HX
          Web site: http://www.hilcoappraisal.co.uk

          Mark Proudley
          Phone: 023 8066 8887
          Fax: 023 8066 8860
          E-mail: mproudley@hilcoappraisal.com


INVENSYS PLC: Cash Resources not Affected by IFRS Adoption
----------------------------------------------------------
Overview Of Impact:

(a) no material impact on cash resources;

(b) banking covenants not affected;

(c) main adjustments are:

    (i) accounting for goodwill on disposals and goodwill
        amortization (IFRS 1 and 3);

   (ii) capitalization of development costs (IAS 38); and

  (iii) foreign currency movements related to debt (IAS 21);

(d) IFRS 5, IAS 39 - adopted from 1 April 2005; and

(f) financial impact 2004/05:

    (i) increase reported earnings by GBP378 million;

   (ii) increase operating profit for continuing operations by
        GBP9 million; and

  (iii) increase equity at March 2005 by GBP34 million.

Key Changes In Accounting Under IFRS

The differences between U.K. GAAP and IFRS that have been
identified as having the most significant effect on the Group's
reported results are as follows:

IAS 38, Intangible Assets

IAS 38 requires the costs incurred on development projects that
meet certain criteria to be recognized as intangible assets in
the balance sheet.  The Group's policy under U.K. GAAP is to
expense all such costs as they are incurred.  The application of
the IAS 38 criteria results in the costs of a number of current
and recent development projects being recognized as intangible
assets in the balance sheet under IFRS.  However, it has not
been possible in all cases to assess accurately whether costs
expensed under U.K. GAAP prior to the IFRS transition date met
the IAS 38 criteria for recognition at the time they were
incurred.  IFRS does not permit such assessments to be performed
retrospectively and with the benefit of hindsight, so where
contemporary records were insufficiently detailed or unavailable
it has not been possible to recognize the asset under IAS 38.
Procedures are now in place to monitor research and development
projects against the IAS 38 criteria and recognize their costs
as intangible assets when they meet those criteria.

Under IAS 38, intangible assets will be amortized over their
useful lives, which for current projects are between five and
ten years.  The Group does not expect any of its intangible
assets to have indefinite useful lives.

IAS 32 and IAS 39, Financial Instruments

The Group enters into derivative instruments to limit its
exposure to interest rate and foreign exchange risk.  Under U.K.
GAAP, these instruments are measured at cost and accounted for
as hedges, whereby gains and losses are deferred until the
underlying transaction occurs.  Under IFRS, derivative
instruments are recognized on the balance sheet at fair value.
In order to achieve hedge accounting under IFRS, certain
criteria must be met regarding documentation, designation and
effectiveness of the hedge.  When a derivative is used to hedge
the change in fair value of a recognized asset, liability or
firm commitment, the change in fair value of both the hedging
instrument and the hedged item are recognized in the income
statement when they occur.  For a hedge of changes in the future
cash flows relating to a recognized asset, liability or probable
forecast transaction, the change in fair value of the hedging
instrument is recognized in equity until those future cash flows
occur.

The Group will apply IAS 32 and IAS 39 for the first time for
the year ending 31 March 2006.  As permitted by the transitional
exemption available under IFRS 1, IAS 32 and IAS 39 will not be
applied to the comparative information presented in those
financial statements, which will be prepared on the existing
U.K. GAAP basis.

IAS 21, The Effects of Changes in Foreign Exchange Rates

Under U.K. GAAP the Group has been able to designate external
foreign currency borrowings held by holding companies in the
United Kingdom as a hedge of foreign currency denominated assets
including goodwill previously written off to reserves.  As a
result the foreign exchange gains and losses on the borrowings
were matched against the gains and losses on the assets and
recognized in reserves.  Goodwill previously written off to
reserves is not recognized as a qualifying asset under IFRS, and
is therefore not available to offset the foreign exchange gains
and losses arising on the borrowings.  As a result, there will
now be exchange differences that will impact the income
statement.  These will be disclosed within net finance costs.

Under both IAS 21 and UK GAAP, foreign exchange gains and losses
on intra-group loans are recognized in the income statement
unless the loans qualify as part of the Group's net investment
in its foreign operations, in which case the exchange
differences are recognized in reserves.  However, IAS 21 is
stricter in defining the criteria that have to be met for a loan
to qualify as part of the net investment in foreign operations.
As a result, some of the Group's intra-group loans are
considered not to meet the IAS 21 criteria for inclusion in the
net investment in foreign operations, and under IFRS the gains
and losses arising on them will be recognized in the income
statement rather than in reserves.

IFRS 3, Business Combinations

Under IFRS 3, goodwill recognized in the balance sheet will no
longer be amortized.  Instead it will be tested for impairment
at the date of transition to IFRS and annually thereafter, or
more frequently if events or changes in circumstances indicate
that it might be impaired.

On the disposal of a business, IFRS does not require any related
goodwill previously written off to reserves to be transferred to
the income statement.  The recognition in the income statement
of disposals made after the date of transition will be restated
to reflect this.

The Group will adopt the exemption under IFRS 1 from restating
business combinations prior to the date of transition to IFRS.
The Group will apply IFRS 3 prospectively from IFRS transition.
No significant business combinations have been undertaken since
the transition date.

Other Areas of Change

IAS 12 requires that deferred taxation is provided on
substantially all differences between the book and tax bases of
assets and liabilities except those arising from goodwill that
is not deductible for tax purposes.  This is wider than under
U.K. GAAP, which specifically does not permit the recognition of
certain timing differences, including those that relate to
revaluations where no sale is in process, or where it is
probable that rollover relief or losses will be applied to the
gain.  The application of IFRS will result in the recognition of
additional deferred tax balances including those relating to
undistributed overseas retained earnings which are intended to
be repatriated in the foreseeable future.  Subject to any
constraints arising from the legal requirements of those
territories, the group intends to repatriate overseas earnings
from territories where overseas funds exist in excess of local
operating requirements.

In accordance with IAS 19, Employee Benefits, additional
liabilities will be recognized on transition for accumulating
compensated absences earned as a result of services rendered.

IFRS 2, Share-Based Payment (IFRS 2), will require the
recognition of all share-based payments in the income statement,
although this will have only a limited impact on the Group's
reported results for the year to 31 March 2005.

The charge will be calculated using the Black-Scholes model
because of the relatively small number of relevant share options
extant.  As permitted by the transitional exemption available
under IFRS 1, the requirements of IFRS 2 will not be applied to
equity instruments granted before 7 November 2002 and those
vesting before 1 April 2005.

Presentation of the Financial Statements Under IFRS
With effect from 1 April 2005, the Group will present its
financial statements in accordance with IAS 1, Presentation of
Financial Statements (IAS 1).  Where IAS 1 does not provide
definitive guidance on presentation, for example in relation to
aspects of the income statement, the Group proposes to adopt a
format consistent with U.K. GAAP requirements.  This will assist
in comparing results with prior years.

The presentation of the balance sheet under IFRS differs from
the requirements under U.K. GAAP in a number of respects.  These
include requirements to analyze all assets and liabilities,
including provisions, between current and non-current;
categorize computer software, treated as tangible fixed assets
under U.K. GAAP, as intangible assets; and present deferred tax
assets separately from deferred tax liabilities, rather than as
a single net amount.

The Group does not propose early adoption of IFRS 5, Non-current
Assets Held for Sale and Discontinued Operations, ahead of its
effective date, which is 1 April 2005 for Invensys.

The adoption of IFRS by EU member states applies only to
consolidated financial statements.  Invensys will continue to
present its Company financial statements in accordance with U.K.
GAAP.  Consequently Company financial statements will be
presented separately from the Group financial statements.

Other First Time Adoption Exemptions

In addition to the first time adoption exemptions already
referred to above, the Group will adopt the following optional
exemptions available under IFRS 1:

(a) Employee benefits - the approach to accounting for actuarial
    gains and losses on the Group's pension schemes under IFRS
    will be consistent with U.K. GAAP, FRS 17.  The 'corridor'
    approach will not be applied, and gains and losses will be
    recognized in full as a reserve movement; and

(b) Cumulative translation differences - cumulative translation
    differences on foreign operations will be deemed to be zero
    at IFRS transition; only post-transition translation
    differences will be taken to the income statement on the
    subsequent disposal of a foreign operation.

A full copy of the financial results is available free of charge
at http://bankrupt.com/misc/Invensysplc(IFRS).htm

CONTACT:  INVENSYS PLC
          Invensys House, Carlisle Place
          London SW1P 1BX
          Phone: +44-20-7834-3848
          Fax: +44-20-7834-3879
          Web site: http://www.invensys.com

          Steve Devany
          Phone: +44 (0) 20 7821 3758

          Nina Delangle
          Phone: +44 (0) 20 7821 2121

          Emma Burdett
          Phone: +44 (0) 20 7379 5151


LCCH LIMITED: Names Liquidator from Vantis Business Recovery
------------------------------------------------------------
At the extraordinary general meeting of the members of LCCH
Limited on May 5, 2005 held at 15 Heriot Way, Heriot EH38 5YN,
the subjoined special resolution to wind up the company was
passed.  R. L. H. Knight of Vantis Business Recovery, The White
Cottage, 19 West Street, Epsom, Surrey KT18 7BS has been
appointed liquidator of the company.

CONTACT:  VANTIS BUSINESS RECOVERY
          The White Cottage,
          19 West Street,
          Epsom, Surrey, KT18 7BS
          Phone: 01372 743816
          Fax: 01372 720940
          E-mail: epsom@vantisplc.com
          Web site: http://www.vantisplc.com


MARCONI CORPORATION: Reports 5% Growth in Sales
-----------------------------------------------
Q4 Highlights (Continuing Operations):

(a) 5% sales growth (Q4 FY05 GBP346 million; Q3 FY05 GBP330
    million);

(b) sales growth continues to be driven by Access Networks and
    Network Services; BBRS revenues GBP30 million in Q4 FY05 (Q3
    FY05 GBP30 million);

(c) adjusted operating profit of GBP19 million (Q3 FY05 GBP10
    million);

(d) operating loss after share options, goodwill amortization
    and exceptional items of GBP15 million (Q3 FY05 GBP21
    million loss);

(e) cash balance remains strong, with Q4 operating cash inflow
    of GBP12 million;

(f) net cash of GBP297 million at 31 March 2005; and

(g) key customer wins and announcements:

    (i) new win with next-generation DWDM into Telefonica; and

   (ii) Huawei Mutual Distribution Agreement will expand data
        products portfolio.

FY05 Financial Highlights (Continuing Operations):

(a) 4% sales growth (FY05 GBP1.3 billion; FY04 GBP1.2 billion at
    constant currency[1]);

(b) adjusted operating profit [2] of GBP28 million (FY04 GBP55
    million loss);

(c) adjusted gross margin [3] (FY05 32.5%; FY04 30.4%) impacted
    by fierce pricing pressure and business mix with a higher
    proportion of Access products and Network Services sales;

(d) continued focus on cost reductions in adjusted operating
    expenditure [4](FY05 GBP385 million; FY04 GBP433 million);
    and

(e) FY05 Operating loss after share options, goodwill
    amortization and exceptional items of GBP95 million (FY04
    GBP249 million loss).

Mike Parton, Chief Executive Officer of Marconi Corporation plc,
said: "The last financial year showed further good progress; we

achieved continued sales growth and a return to adjusted
operating profitability.  We have a strong business built on our
excellent technology and service offering.

"While we are extremely disappointed not to have been selected
as a preferred supplier for BT's 21CN program, the actions we
had already taken to rebuild the business over the last three
years will enable us to make further progress this year, despite
BT's decision.  Product manufacturing and overhead cost
reductions will remain key in our efforts to address the
competitive environment of our industry.

"The mutual distribution agreement signed with Huawei last week
enables us to offer our customers new competitively priced data
products that complement our own optical, access and
softswitching products.  Huawei will resell our microwave radio
solutions and services as part of their wireless network
projects.  Our strong services business continues to be an
important part of our offer to both telecommunications and
enterprise customers."

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
[1] Constant currency measures recalculate the comparative
period at current period average exchange rates.  FY04 sales of
GBP1.2 billion at FY05 average exchange rates are GBP1.2
billion.

[2] Stated before share option costs, exceptional items and
goodwill amortization.

[3] Stated after cost reclassification and before exceptional
items.

[4] Stated after cost reclassification and before share option
costs, exceptional items and goodwill amortization.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Continuing Operations Overview

Sales from Continuing Operations increased by 5 per cent
compared to the three months ended 31 March 2004, with increases
in Access Networks in Germany and the U.K. offset by a decline
in BBRS sales.  Associated with increases in equipment revenues,
we also recorded higher Installation, Commissioning and
Maintenance (IC&M) revenues in the quarter.

Adjusted gross profit from Continuing Operations was slightly
down on last year.  Sales volume, cost reductions and product
mix drove a GBP17 million increase in adjusted gross profit in
the Optical and Access Networks business, which was offset by a
reduction in adjusted gross profit in BBRS and Network Services.

The adjusted gross margin from Continuing Operations reduced
from 34.3% to 31.8% due to higher BBRS sales and high margin
Network Services sales in the prior year.

After adjusted operating expenses of GBP91 million in the
quarter (Q4 FY04 GBP99 million), adjusted operating profit from
Continuing Operations was GBP19 million, increased from GBP14
million in the prior year.
The operating loss from Continuing Operations was GBP15 million
in the quarter, after operating exceptional items (GBP8
million), goodwill amortization (GBP22 million) and share option
costs (GBP4 million).  This represented a decrease in operating
loss compared with GBP32 million recorded in the same quarter of
the previous year, when operating exceptionals and share option
costs were higher.

On a sequential basis, Continuing Operations sales were up 5 per
cent.  Optical and Access Networks sales increased as a result
of higher spend by customers in Australia and Italy.  Network
Services sales also increased as a result of higher IC&M sales
in the U.K.  BBRS sales were stable quarter on quarter.

Adjusted gross profit increased marginally due to improvements
in the Optical and Access Networks segment.  The adjusted gross
margin declined on a quarter-on-quarter basis due to lower
margins achieved on IC&M related to Access products and the
completion of a U.K. Government contract.  The increase in
adjusted operating profit to GBP19 million from GBP10 million in
the previous quarter was the result of reduced operating
expenses, predominantly due to overhead efficiencies and the
receipt of grant income offsetting R&D costs.

Despite a small increase in exceptional charges related to
restructuring, the higher adjusted operating profit resulted in
a reduction in the operating loss to GBP15 million in the
quarter.

Group Overview

Group sales for the quarter were down on a year-on-year basis
due to the disposal of the North American Access (NAA) business
in February 2004 and the Outside Plant and Power (OPP) business
in August 2004.  We did not record any further revenues from
Discontinued Operations in the quarter.

Sales from Discontinued Operations for the year ended 31 March
2005 were GBP67 million (year ended 31 March 2004 GBP314
million) and operating loss was GBP4 million (FY04 profit GBP8
million).

Business Update

Key Wins

Since the Q3 OFR, the company has had a number of significant
wins.  It has been awarded a contract by Telefonica de Espana,
to supply two optical links between Madrid and Barcelona.  The
Multihaul 3000 is the first next generation Dense Wave Division
Multiplexing (DWDM) system supplied to Telefonica.  It is also
the first DWDM system supplied and installed through a
partnership with Ericsson.  The DWDM solution has also been
selected by a major mobile operator to build a backbone network
in Southern Europe.  In the quarter, Marconi also agreed a
contract for new AccessHub functionality with a customer in
Southern Europe and signed a new contract to manage an existing
U.K. customer's access network.

Sales to BT

BT was its largest customer and accounted for 25 percent of
sales from Continuing Operations for the year ended 31 March
2005 (year ended 31 March 2004 was 25 percent).

Of total sales revenues of GBP322 million with BT, GBP173
million were services revenues.  The largest element of services
revenues for the year ended 31 March 2005 was the GBP101 million
earned under a four-year frame services contract with BT Cable
Services.  The contract, which runs to 2008, involves the
installation of fiber and copper services to residential and
business users and is not directly associated with the BT 21CN
network transformation project.

The balance of services revenues (GBP72 million) was for the
installation and commissioning and support of optical, access
and switching equipment.

Optical sales to BT are under a three-year frame contract, which
guarantees Marconi a minimum of 70 percent of BT's transmission
requirements until March 2006.  Optical sales to BT in the year
ended 31 March 2005 were GBP88 million.

Broadband access rollout, which is also covered under the three-
year frame contract with BT, accounted for GBP13 million of
product sales in the current financial year, having increased to
GBP7 million in the final quarter of the year.  The contract
with BT runs until August 2006.  Legacy access products made up
the balance of sales to BT (GBP48 million).

While it has recently been announced that Marconi has not been
selected as a preferred supplier for BT's next-generation 21st
Century Network, the company expects to continue to supply
products and services to BT under existing contracts.

Non-BT Sales

In the year ended 31 March 2005, non-BT sales increased to
GBP948 million (FY04: GBP939 million).  The Optical and Access
business grew 10 percent year on year and represented 54 percent
of the non-BT revenues.  Excluding BBRS, non-BT sales increased
by 7 percent from GBP754 million to GBP808 million.

With the exception of the US Federal Government, spending
increased by all of its ten largest customers in the year ended
31 March 2005.

In Northern Europe, the growth in European DSL rollout has
fuelled deployment of Access Hub with customers such as Bulldog
(Cable & Wireless), while U.K. carrier customers such as
Kingston, Jersey and Gamma Telecom have already deployed the
Impact SoftSwitch in their networks.  Optical customers include
U.K. operators such as Energis as well as European operators
such as KPN and Belgacom.  In addition to the recently announced
multi-vendor support contract with Energis, it also has ongoing
support contracts with a number of U.K. carriers.

In Southern Europe, Telecom Italia is a major customer, with
spending split evenly between optical and access equipment.  The
majority of Marconi's business continues to be under frame
contracts covering SDH, access and optical DWDM.

Vodafone is also an important customer, with their wireless
traffic running on a Marconi optical backbone.  Marconi also
continues to supply SDH and DWDM directly into Italian regional
operators and indirectly into customers such as Telefonica
through its distribution agreement with Ericsson.

The Central European business continues to be driven by demand
from the German mobile operators as Marconi builds its fixed
wireless access and optical networks.

As a group, the German metro city carriers also represent a
significant revenue stream and Marconi has begun to see firm
orders for next-generation optical products from these
customers.  In addition, Marconi also recently announced a frame
contract with T-Com for the supply of 40Gb optical DWDM and
continues to provide them with ServiceOnAccess tool for the
management of their access network.

In the rest of the EMEA (Europe, Middle East and Africa) region,
the company saw increased deployment of access products by
Telkom South Africa as they extended their broadband access
coverage.  Marconi also continues to supply SDH into
Scandinavian regional operators.

The Value-Added Services business is driven by long-term
contracts for the build, maintenance and transformation of
enterprise customer networks.  Marconi recently announced a 13-
year contract with Tube Lines and an 8-year contract with a
Middle East Government defense customer.  Other contracts
include those with Toll Collect in Germany (which runs to 2009)
a number of Highways Agency contracts (which run to 2007), and a
Network Rail frame contract (which runs to 2010).

The U.S. Federal Government business remained one of its ten
largest customers in the year ended 31 March 2005.  Although
there has been some reduction of spend in recent quarter, switch
and router sales and services contracts to the US Federal
Government continue to be important contributors to overall
sales in this account.

In Australia, it has a longstanding relationship with Telstra,
which has traditionally included SDH and network management.  In
the last few quarters, Marconi has increased sales under the
multi-year frame contracts for the supply and support of 10Gbs
and 2.5Gbs optical networks.

Outlook

Following BT's announcement on preferred suppliers for its 21CN
project, the company currently expects a reduction in BT
revenues from equipment sales and associated services in the
order of GBP50 million in FY06 compared to FY05.

More generally, pricing pressure remains fierce across products
and services and this, together with changing business mix, will
impact gross margins in FY06.

Despite this, overall Marconi currently expects FY06 revenues at
a similar level to FY05, based on continuing high levels of
customer interest, tender activity and trials across its
products as well as services.

It continues to target business cost reductions to counter the
pricing pressures it is seeing:

(a) it is focusing its R&D spend on those products which it sees
    as having the highest sales growth and profit potential.  It
    is also maintaining its commitment to product roadmaps and
    features which customers require.  As a result the R&D spend
    is expected to show a modest reduction as Marconi will no
    longer be developing BT-specific features for the Impact
    SoftSwitch;

(b) Marconi continues to migrate more of its outsourced
    manufacturing to lower cost locations.  Its recently
    announced business organization (which devolves supply
    chain, R&D and product management to its Regional
    Businesses) is expected to begin generating headcount and
    associated cost savings from the second half of FY06.  In
    addition further business cost reductions and efficiency
    gains are expected from other existing initiatives.  As a
    result, the company expects to achieve overall cost savings
    on an annualized basis of approximately GBP50 million;
    around half of this amount is expected to be realized in
    FY06.  The restructuring cash costs of achieving the
    Necessary headcount and associated cost savings are expected
    to be approximately GBP55 million, including cash spend
    related to existing restructuring provisions.  Of these cash
    costs, it expects to incur approximately GBP45 million in
    FY06.  As a result, the estimated P&L charge for
    restructuring in FY06 will be GBP36 million; and

(c) Beyond FY06, Marconi expects to achieve supply chain cost
    savings of up to GBP25 million on an annualized basis as it
    introduces competitive sourcing among its outsourced
    manufacturing partners and implement free market agreements,
    which will allow Marconi to source products from the lowest
    cost suppliers.

In the light of the above, it currently expects to see
continuing progress in FY06.

Liquidity, Capital Resources and Working Capital

The Group recorded a GBP12 million operating cash inflow from
Continuing Operations before exceptional items during the three
months ended 31 March 2005 compared to a GBP8 million inflow
during the previous quarter and a GBP46 million inflow in the
corresponding quarter of the previous financial year.

Working capital movements offset the improved operating
performance before exceptional items.  Inventory increased in Q4
to support the rollout of our new contract with Telstra and in
addition, orders delayed by BT towards the end of the quarter
resulted in higher inventory.

Debtors increased due to higher sales in Q4.  In addition debtor
days rose from 61 to 64 days reflecting the annual receipt in Q3
under a long-term services contract.  Marconi factored GBP15
million of debtors at 31 March 2005 compared with GBP10 million
at 31 December 2004 to offset delayed payment by a major
customer.

The increase in creditors and consequent cash inflow was driven
by further payments in advance being received on long-term
contracts.  Creditor days increased from 59 to 63 days.

Net cash at 31 March 2005 amounted to GBP297 million reduced
from GBP311 million at 31 December 2004 as operating cash flow
pre exceptional items was offset by redundancy payments, OPP
disposal costs and increased capital expenditure which was
incurred on supporting customer trials and new computer systems.

On a year-on-year basis, the company saw an increase in net cash
from GBP214 million (31 March 2004) to GBP297 million (31 March
2005).

OPP Disposal Costs

The company guided to FY05 cash costs of GBP35 million for the
disposal of OPP including GBP19 million for tax and GBP16
million for other costs.  At 31 March 2005, it incurred cash
costs of GBP17 million including GBP6 million for tax.  It now
expects to recover GBP2 million of net tax paid and pay a
further GBP5 million of other costs in FY06.

Restructuring Costs

The company guided to GBP35 million of restructuring cash costs.
At 31 March 2005, it incurred GBP31 million of costs largely due
to lower than expected costs on settlement of onerous contracts
and recovery of payments on surplus inventory previously
provided against.

Balance Sheet and Off-Balance Sheet Items

Provisions

At 31 March 2005, it had provisions of GBP145 million.  This
represented a decrease from the GBP161 million of provisions
reported as 31 December 2004, largely due to:

(a) utilization of provisions for OPP disposal costs, other
    indemnities and long term contracts in the normal course of
    business; and

(b) release and utilization of provisions on long term contracts
    following resolution of contract risks.

Its closing provision does not include any amount for the
actions taken following the announcement on BT 21CN.  In
addition, committed restructuring plans in BBRS, which will be
incurred in the first quarter of FY06, are also not currently
included in these numbers.

A full copy of the financial results is available free of charge
at http://bankrupt.com/misc/MarconiCorporation(Q12005).mht

CONTACT:  MARCONI CORPORATION PLC
          4th Floor Regents Place
          338 Euston Rd
          London NW1 3BT
          Phone: +44-20-7493-8484
          Fax: +44-20-7493-1974
          Web site: http://www.marconi.com

          Press Enquiries
          David Beck
          Phone: 0207 306 1490
          E-mail: david.beck@marconi.com

          Investor Enquiries
          Heather Green
          Phone: 0207 306 1735
          E-mail: heather.green@marconi.com

          Karen Keyes
          Phone: 0207 306 1345
          E-mail: karen.keyes@marconi.com


MG ROVER: It's Down to Three Bidders
------------------------------------
The joint administrators of MG Rover Group Limited asked
potential bidders to provide proof of funds for their bids by
the end of last week and have spent this week examining these.

Interest in the MGTF sports car business has been narrowed down
to three potentially viable proposals, which will now be
explored in detail to see if one of these can be transacted, and
discussions for the sale of the rest of the business and assets
are continuing with two credible interested parties.

Tony Lomas, joint administrator and partner at
PricewaterhouseCoopers, said: "We are still discussing a sale of
the rest of the business and assets with two credible interested
parties.  They are particularly concerned to understand what
rights SAIC or other third parties have in physical assets at
Longbridge and in the intellectual property rights.  We can now
provide them with a lot more positive information regarding
these points as we have further examined the matter.

"While there is still an outside possibility that some form of
car production could recommence at Longbridge, the cost and
complexity of the challenge should not be underestimated.
Engine production would be a lesser, but still very demanding,
challenge.  The potential buyers are known to be looking at the
alternative scenarios of continuing production at Longbridge or
relocating it elsewhere.

"While efforts to sell the business continue, we are
progressively downsizing the support functions in order to
further reduce costs.  Around 400 people are still employed at
MG Rover, helping us mothball the facilities and support car
sales activities in the U.K. and Europe.  A further 110 people
are employed at Powertrain undertaking similar roles.

"We will be posting letters to creditors early next week,
notifying them of a meeting on 10 June at which we will report
on the companies' affairs."

CONTACT:  MG ROVER GROUP LIMITED
          Longbridge, Bickenhill
          Birmingham B31 2TB
          Phone: +44-121-475-2101
          Fax: +44-121-482-2403
          Web site: http://www1.mg-rover.com


MILLBROOK CLUB: Hires BDO Stoy Hayward Liquidator
-------------------------------------------------
At the extraordinary general meeting of The Millbrook Club
Limited on April 19, 2005 held at The Millbrook Club, Millbrook,
Guildford, Surrey GU1 4YA, the subjoined special resolution to
wind up the company was passed.  D. B. Coakley and M. Thompson
of BDO Stoy Hayward LLP, Connaught House, Alexandra Terrace,
Guildford, Surrey GU1 3DA has been appointed liquidators of the
company.

CONTACT:  BDO STOY HAYWARD LLP
          Connaught House, Alexandra Terrace,
          Guildford, Surrey GU1 3DA
          Phone: 01483 565666
          Fax:   01483 531306
          E-mail: guilford@bdo.co.uk
          Web site: http://www.bdo.co.uk


MOWLEM PLC: Chairman Prepares to Step Down
------------------------------------------
At the Group's Annual General Meeting Thursday, Mowlem plc
Chairman Charles Fisher revealed trading during the early part
of 2005 has been as expected.

He noted this is a year of transition for the Group following
some restructuring and a number of senior management changes.

Mr. Fisher also said Mowlem intends to provide further
information about current trading in a pre-close period
statement in early July.

He added that having completed twelve years on the Board of
Mowlem plc and over three years as the Chairman, he is proposing
to stand down as Chairman once a successor has been identified
and that steps are now being taken in that regard.

                            *   *   *

In March, Fitch Ratings affirmed Mowlem plc's Senior Unsecured
'BB' and Short-term 'B' ratings and removed them from Rating
Watch Negative.  A Stable Outlook has been assigned.

This rating action followed recent steps taken by Mowlem's new
Chief Executive Simon Vivian to strengthen internal risk
management structures and processes together with a more prudent
approach to profit recognition and a greater focus on cash
generation.  Additionally, the agency considers important
Mowlem's confirmation that sufficient bonding facilities remain
available, that potential breaches have been resolved and that
the FY04 audited accounts will receive an unqualified audit
opinion.  Fitch further noted the absence of negative surprises
in the recently published FY04 preliminary financial statements.

CONTACT:  MOWLEM PLC
          White Lion Court, Swan St., Isleworth
          London
          TW7 6RN, United Kingdom
          Phone: +44-20-8568-9111
          Fax: +44-20-8847-4802
          Web site: http://www.mowlem.com


NORFROST LIMITED: Administration Leaves 74 Jobless
--------------------------------------------------
Directors of Norfrost Limited have appointed Blair Nimmo and
Neil Armour of KPMG Corporate Recovery as joint administrators.

The business was established in 1972 and is based in Thurso.
Norfrost is a white goods manufacturer and also has divisions,
which operate in the haulage and engineering sectors.  The
administrators have decided to close the haulage and engineering
divisions and, along with redundancies to bring the
manufacturing division's workforce into line with current work
levels, this has resulted in the immediate loss of 74 jobs.  The
company therefore now employs 87 people.

Norfrost Limited has recently experienced financial difficulties
due to increased price competition from low cost economies, the
rise in price of raw materials and the poor retail sector
performance over the early part of 2005.  Turnover for the
twelve months to December 2004 was GBP13 million.

Blair Nimmo, KPMG Head of Corporate Recovery in Scotland and
Joint Administrator, said: "Norfrost has a reputation for
developing and manufacturing quality products and has a strong
brand presence in its market.  We are confident that we will be
able to generate interest in the business.

"As always, it is regrettable that a number of redundancies have
been necessary but by refocusing the company on its core
business a viable entity is created.

"We are hopeful that with the support of the customers,
suppliers and employees we will be able to successfully continue
to trade the business as normal and quickly conclude a sale
protecting as many jobs as possible."

CONTACT:  NORFROST LIMITED
          Murrayfield, Castletown, Caithness
        Phone: 07000 NORFROST (07000 667376)
                 or +44 (0)1847 822200
          Fax: 07002 NORFROST (07002 667376)
               or +44 (0)1847 822201
          Web site: http://www.norfrost.co.uk

          KPMG LLP (UK)
          Rachael Morgan, Corporate Communications
          Phone: 020 7694 2692 / 07904 528106
          E-mail: rachael.morgan@kpmg.co.uk

          KMPG SCOTLAND
          Blair Nimmo, Corporate Recovery Partner
          Phone: 07774 617582


PORTVIEW INTERIORS: Names Grant Thornton Liquidator
---------------------------------------------------
At the extraordinary general meeting of Portview Interiors
Limited on April 18, 2005 held at Clarendon Dock, Belfast BT1
3BH, the special and extraordinary resolutions to wind up the
company were passed.  Mark Allen of Grant Thornton UK LLP,
Water's Edge, Clarendon Dock, Belfast BT1 3BH has been appointed
liquidator of the company.

CONTACT:  GRANT THORNTON UK LLP
          Water's Edge
          Clarendon Dock
          Belfast
          Antrim BT1 3BH
          Phone: 028 9031 5500
          Fax: 028 9031 4036
          E-mail: mark.allen@gtuk.com


SNOWBAY LIMITED: Calls in Liquidator from Marks Bloom
-----------------------------------------------------
At the extraordinary general meeting of the members of Snowbay
Limited on April 5, 2005 held at The Coach House, Hotham Road,
Wimbledon, London SW19 1BS, the special resolution to wind up
the company was passed.  Andrew John Whelan of Marks Bloom, 60-
62 Old London Road, Kingston upon Thames KT2 6QZ has been
appointed liquidator of the company.

CONTACT:  MARKS BLOOM
          60-62 Old London Road,
          Kingston upon Thames, Surrey KT2 6QZ
          Phone: +44 (0) 20 85499951
          Fax:   +44 (0) 20 85496218
          Web site: http://www.marksbloom.co.uk


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter -- Europe is a daily newsletter co-
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Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland USA.  Larri-Nil Veloso, Ma. Cristina Canson,
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Copyright 2005.  All rights reserved.  ISSN 1529-2754.

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